[Public Law 535 - 81st Congress] [Chapter 220- 2d Session] [H. R. 7797] AN ACT To provide foreign economic assistance.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00662R000100050019-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 14
• Document Creation Date: December 9, 2016
• Document Release Date: July 29, 1998
• Sequence Number: 19
• Content Type: REGULATION

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[PUBLIC LAw 535-81ST CONGRESS]
[CHAPTER 220--2D SESSION
[H. R. 7797]
AN ACT
To provide foreign economic assistance.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may be
cited as the "Foreign Economic Assistance Act of 1950".
TITLE I
SEC. 101. This title may be cited as the "Economic Cooperation Act
of 1950".
SEC. 102. (a) Section 102 (a) of the Economic Cooperation Act of
1948, is amended by striking out in the fourth sentence thereof "trade
barriers" and inserting in lieu thereof "barriers to trade or to the free
movement of persons"; and by inserting in the fifth sentence thereof the
word "further" before the word "unification".
(b) Section 102 (b) (1) of such Act is amended by inserting a comma
and the phrase "increased productivity, maximum employment, and
freedom from restrictive business practices" after the word "produc-
tion".
SEC. 103. (a) Section 111 (b) (3) (ii) of such Act is amended to
read as follows :
"(ii) the Administrator shall charge a fee in an amount deter-
mined by him not exceeding 1 per centum per annum of the amount
of each guaranty under clause (1) of subparagraph (v), and not
exceeding 4 per centum per annum of the amount of each guaranty
under clause (2) of such subparagraph, and all fees collected
hereunder shall be available for expenditure in discharge of lia-
bilities under guaranties made under this paragraph until such
time as all such liabilities have been discharged or have expired,
or until all such fees have been ex ended in accordance with the
provisions of this paragraph; and'.
(b) Section 111 (b) (3) (iv) of such Act is amended to read as
follows :
"(iv) as used in this paragraph, the term `investment' includes
(A) any contribution of capital goods, materials, equipment, serv-
ices, patents, processes, or techniques by any person in the form
of a loan or loans to any enterprise to be conducted within a
participating country, (B) the purchase of a share of ownership
in any such enterprise, (C) participation in royalties, earnings,
or profits of any such enterprise, and (D) the furnishing of
capital goods items and related services pursuant to a contract
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(PUB. LAW 835.1 2
providing for payment in whole or in part after the end of the
fiscal year in which the guaranty of such investment is made; and".
(c) Section 111 (b) (3) (v) of such Act is amended to read as
follows :
"(v) the guaranty to any person shall be limited to assuring
one or both of the following : (1) The transfer into United States
dollars of other currencies, or credits in such currencies received
by such person, as earnings or profits from the approved project,
as repayment or return of the investment therein, in whole or in
part, or as compensation for the sale or disposition of all or any
part thereof; and (2) the compensation in United States dollars
for loss of all or any part of the investment in the approved proj-
ect which shall be found by the Administrator to have been lost
to such person by reason of exproiation or confiscation by action
of the government of a participating country. When any pay-
ment is made to any person pursuant to a guaranty as herein..
before described, the currency, credits, asset, or investment or
account of which such payment is made shall become the property
of the United States Government, and the United States Gov-
ernment shall be subrogated to any right, title, claim, or cause
of action existing in connection therewith."
(d) Section 111 (b) (3) of such Act is further amended by striking
out the words between the second and last provisos therein and ii1sert-
ing in lien. thereof the following: "It being the intent of the Congress
that the guaranty herein authorized should be used to the maximum
practicable extent and so administered as to increase the participation
of private enterprise in achieving the purposes of this Act, the
Administrator is authorized to issue guaranties up to a total of
$200,000,000".
(e) Section 111 (c) (2) of such Act is amended by striking out
"$150,000,000" and inserting in lieu thereof "$200,000,000".
(f). Section 111 of such Act is further amended by adding at the
end thereof the following new subsection:
"(d) The Administrator is authorized to transfer funds directly to
any central institution or other organization formed to further the
purposes of this Act by two or more participating countries, or to any
participating country or countries in connection with the operations
of such institution or organization, to be used on terms and conditions
specified by the Administrator, in order to facilitate the development
of transferability of European currencies, or to promote the liberali-
zation of trade by participating countries with one another and with
other countries."
PROTECTION OF DOMESTIC ECONOMY
SEC. 104. (a) Section 112 (a) of such Act is amended by striking
out the period at the end thereof and inserting a comma and the fol-
lowing: "and (3) minimize the burden on the American taxpayer by
reducing the amount of dollar purchases by the participating coun-
tries to the greatest extent possible, consistent with maintaining an
adequate supply of the essentials for the functioning of their economies
and for their continued recovery."
(b) Subsections (b) and (c) of section 112 of such Act are hereby
repealed.
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4c) Section 112 (1) of such Act is amended to read as follows:
(1) No funds authorized for the purposes of this title shall be used
for the purchase in bulk of any commodities.at prices higher than the
market price prevailing in the United States at the time of the pur-
chase adjusted for differences in the cost of transportation to destina-
tion, quality, and terms of payment. A bulk purchase within the
meaning of this subsection does not include the purchase of raw cotton
in bales."
(d) Section 112 of such Act is further amended by adding at the
end thereof the following new subsections:
"(m) Notwithstanding any other provision of law, the pricing pro-
visions of section 112 (e) of this title and section 4 of the Act of
July 16, 1943 (57 Stat. 566) shall not be applicable to domestic wheat
and wheat flour procured under this title or any other Act providing
for assistance or relief to foreign countries, supplied to countries which
are parties to the International Wheat Agreement of 1949 and credited
to their guaranteed purchases thereunder.
"(n) It is the sense of. Congress,that no participating country shall
maintain or impose any import, currency, tax, license, quota, or other
similar business restrictions which discriminate against citizens of the
United States or any corporation, partnership, or other association
substantially beneficially owned by citizens of the United States,
engaged or desiring to engage, in furtherance of the purposes of this
title, in the importation into such country of any commodity, which
restrictions are not reasonably required to meet balance of payments
conditions, or requirements of national security, or are not authorized
under international agreements to which such country and the
United States are parties. In any case where the Department of
State determines that any such discriminatory restriction is main-
tained or imposed by a participating country or by any dependent
area of such country, the Administrator shall take such remedial
action as he determines will effectively promote the purposes of this
subsection (n)."
AUTHORIZATION OF APPROPRIATIONS
Src. 105. (a) Section 114 (c) of such Act is amended by striking out
the period at the end of the first sentence and inserting in lieu thereof
a colon and the following : "Provided further, That in addition to the
amount heretofore authorized and appropriated, there is hereby au-
thorized to be appropriated for carrying out the provisions and
accomplishing the purposes of this title not to exeed $2,700,000,000
for the fiscal year ending June 30, 1951: Provided further, That
$600,000,000 of the funds appropriated hereunder shall be available
during the fiscal year 1951 solely for the purpose of encouraging and
facilitating the operation of a program of liberalized trade and pay-
ments, for supporting any central institution or other organization
described in subsection (d) of section 111, and for furnishing of
assistance to those participating countries taking part in such program :
Provided further, That not more than $600,000,000 of such funds shall
be available during the fiscal year 1951 for transfer of funds pursuant
to subsection (d) of section 111: Provided further, That, in addition
to the foregoing, any balance, unobligated as of June 30, 1950, or
subsequently released from obligation, of funds appropriated for
carrying out and accomplishing the purposes of this title for any
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period ending on or prior to that date is hereby authorized to be made
available for obligation through the fiscal year ending June 30, 1951,
and to be transferred to and consolidated with any appropriations for
carrying out and accomplishing the purposes of this title for said fiscal
year."
(b) The last sentence of section 114 (c) of such Act is amended to
read as follows : "The authorizations in this title are limited to the
period ending June 30, 1951."
(c) Section 114 of such Act is further amended by adding at the
end thereof the following new subsections :
"(h) The President is authorized to transfer to any department or
agency any portion of the funds allocated for assistance to Germany
from appropriations authorized by subsection (c). This portion may
be used for expenses, not otherwise provided for, necessary to meet
responsibilities of the United States related to the rehabilitation of
occupied areas of Germany, including the furnishing of minimum
civilian supplies to prevent starvation, disease, and unrest prejudicial
to the objectives of the occupation. This portion may be expended
under authority of this subsection or any provisions of law, not incon-
sistent herewith, applicable to such department or agency and without
regard to such provisions of this title as the President may specify
as inapplicable.
"(i) As agreed upon by the Secretary of State and the Administra-
tor, a part of the German currency now or hereafter deposited under
the .bilateral a reement of December 15, 1949, between the United
States and the Federal Republic of Germany, or any supplementary or
succeeding agreement, shall be deposited into the GARIOA (Govern-
ment and Relief in Occupied Areas) special account under the terms
of article V of the said bilateral agreement. In quantities and under
conditions determined by the Secretary of State after consultation
with the Administrator, the currency so deposited shall be available
for meeting the responsibilities of the United States in the occupation
of Germany."
COUNTERPART FUNDS
SEC. 106. (a) Section 115 (b) (6) is amended to read as follows:
"(6) placing in a special account a deposit in the currency of such
country, in commensurate amounts and under such terms and condi-
tions as may be agreed to between such country and the Government
of the United States, when any commodity or service is made available
through any means authorized under this title, and is furnished to
the participating country on a grant basis: Provided, That the obliga-
tion to make such deposits may be waived, in the discretion of the
Administrator, with respect to technical information or assistance
furnished under section 111 (a) (3) of this title and with respect to
ocean transportation furnished on United States flag vessels under
section 111 of this title in an amount not exceeding the amount, as
determined by the Administrator, by which the charges for such
transportation exceed-the cost of such transportation at world market
rates : Provided further, That such special account, together with the
unencumbered portions of any deposits which may have been made by
such country pursuant to section 6 of the joint resolution providing
for relief assistance to the people of countries devastated by war
(Public Law 84, Eightieth Congress) and section 5 (b) of the Foreign
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5 IPUB. LAW 5351
Aid Act of 1947 (Public Law'389, Eightieth Congress), shall be used
in furtherance of any central institution or other organization formed
by two or more participating countries to further' the purposes set
forth in subsection (d) of section 111 or otherwise shall be held or
used for purposes of internal monetary and financial stabilization, for
the stimulation of productive activity and the exploration for and
development of new sources of wealth, or for such other expenditures
as may be consistent With the declaration of policy contained in section
102 and the purposes of this title, including local currency adminis-
trative expenditures of the United States within such country incident
to operations under this title: Provided further That the use of such
special account shall be subject to agreement between such country
and the Administrator, who shall act in this connection after consulta-
tion with the National Advisory Council on International Monetary
and Financial Problems and the Public Advisory Board provided for
in section 107 (a) : And provided further, That any unencumbered
balance remaining in such account on June 30, 1952, shall be disposed
of within such country for such purposes as may, subject to approval
by Act or joint resolution by the Congress, be agreed to between such
country and the Government of the United States;".
(b) Section 115 (e) of such Act is amended by adding at the end
thereof the following new sentence : "The Administrator shall also
encourage emigration from participating countries having permanent
surplus manpower to areas, particularly underdeveloped and depend-
ent areas, where such manpower can be effectively utilized."
(c) Section 115 of such Act is further amended by adding at the
end thereof the following new subsection :
"(j) The Administrator shall utilize such amounts of the local
currency allocated pursuant to subsection (h) as may be necessary, to
give full and continuous publicity through the press, radio, and all
other available media, so as to inform the peoples of the participating
countries regarding the assistance, including its purpose, source, and
character, furnished by the American taxpayer."
FAR EASTERN ECONOMIC ASSISTANCE ACT OF 1050
SEC. 107. (a) Section 3 (c) of the Far Eastern Economic Assist-
ance Act of 1950 is amended by striking out "June 30, 1951" and insert-
ing in lieu thereof "June 30, 1952".
(b) Section 3 (d) of such Act is amended by striking out the period
at the end and inserting in lieu thereof a comma and the following :
"and $100,000,000 for the fiscal year ending June 30, 1951."
(c) Section 4 of such Act is amended by striking out "June 30,
1950" and inserting in lieu thereof "June 30, 1951".
TITLE II
AID TO CHINA
SEC. 201. This title may be cited as the "China Area Aid Act of
1950".
NATURE OF ASSISTANCE
SEC. 202. Funds, now unobligated or hereafter released from obliga-
tion, appropriated by section 12 of the Act entitled "An Act to amend
the Economic Cooperation Act of 1948", approved April 19, 1949
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(Public Law 47, Eighty-first Congress), are hereby made available for
furtherance of the general objectives of the China Aid Act of 1948
through June 30, 1951, and for carrying out the purposes of that Act
through economic assistance in any place in China and in the general
area of China which the President deems to be not under Communist
control, in such manner and on such terms and conditions as the
President may determine, and references in the said Act to China
shall, insofar as applicable, apply also to any, other such place :
Provided, That, so long as the President deems it practicable, not less
than $10,000,000 of such funds shall be available only for such assist-
ance in areas in China (including Formosa) : Provided further, That
not more than $8,000,000 of such funds (excluding the $40,000,000
mentioned in the foregoing proviso) shall .be available for relief on
humanitarian grounds through the American Red Cross, or other
voluntary relief agencies in any place in China suffering from the
effects of natural calamity, under such safeguards as the President
shall direct to assure nondiscriminatory distribution according to need
and appropriate publicity as to source and scope of the assistance being
furnished by the United States : Provided further, That not more than
$6,000,0110 of such funds (excluding the amounts mentioned in the
foregoing provisos), shall be available for allocation to the Secretary
of State, to remain available until expended, under such regulations
as the Secretary of State may prescribe, using private agencies to the
maximum extent practicable, for necessary expenses of tuition, sub-
sistence, transportation, and emergency medical care for selected citi-
zens of China for study or teaching in accredited collegrs, universities,
or other educational institutions in the United States approved by the
Secretary of State for the purposes, or for research and related aca-
demic and technical activities in the United States, and the Attorney
General is hereby authorized and directed to promulgate regulations
providing that such selected citizens of China who have been admitted
for the purpose of study in the United States, shall be granted permis-
sion to accept employment upon application filed with the Commis-
sioner of Immigration and Naturalization.
AID TO PALESTINE REFUGEES
SEc. 301. This title many be cited as the "United Nations Palestine
Refugee Aid Act of 1950' .
SEc. 302. The Secretary of State is hereby authorized to make con-
tributions from time to time before July 1, 1951, to the United Na-
tions for the "United Nations Relief and Works Agency for Palestine
Refugees in the Near East", established under the resolution of the
General Assembly of the United Nations of December 8, 1949, in
amounts not exceeding in the aggregate $27,450,000 for the purposes
set forth in this title.
AUTHORIZATION OF APPROPRIATIONS
SEc. 303. (a) There are hereby authorized to be appropriated, out
of any money in the Treasury not otherwise appropriated, not to
exceed $27,450,000 to carry out the purposes of this title.
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(b) Notwithstanding the provisions of any other law, the Recon-
struction Finance Corporation is authorized and directed, until such
time as an appropriation shall'be made pursuant to subsection (a) of
this section, to make advances to the Secretary of State, not to exceed
in the aggregate $8,000,000, to carry out the provisions of this title.
From appropriations authorized under subsection {a) of this section,
there shall be repaid to the Reconstruction Finance Uorporation, with-
out interest, the advances made by it under authority contained
herein. No interest shall be charged on advances made by the Treasury
to the Reconstruction Finance Corporation in implementation of this
section.
NATURE OF ASSISTANCE
SEC. 304. (a) The provisions of sections 301, 302, and 303 of the
Act of January 27, 1948 (62 Stat. 6), are hereby made applicable with
respect to the United Nations Relief and Works Agency for Palestine
Refugees in the Near East to the same extent as they apply with respect
to the government of another country : Provided, That when reim-
bursement is made by said Agency, such reimbursement shall be
credited to the appropriation, fund, or account utilized for paying the
compensation, travel expenses, and allowances of any person assigned
hereunder.
(b) Departments and agencies of the United States Government are
authorized, with the approval of the Secretary of State, to furnish or
procure and furnish supplies, materials, and services to the United
Nations Relief and Works Agency for Palestine Refugees in the Near
East: Provided, That said Agency shall make payments in advance for
all costs incident to the furnishing or procurement of such supplies,
materials, or services, which payments may be credited to the current
applicable appropriation or fund of the department or agency con-
cerned and shall be available for the purposes for which such appro-
priations and funds are authorized to be used.
TITLE IV
SEC. 401. This title may be cited as the "Act for International
Development".
SEC. 402. The Congress hereby finds as follows :
(a) The peoples of the United States and other nations have a
common interest in the freedom and in the economic and social
progress of all peoples. Such progress can further the secure
growth of democratic ways of life, the expansion of mutually
beneficial commerce, the development of international under-
standing and good will, and the maintenance of world peace.
(b) The efforts of the peoples living in economically under-
developed areas of the world to realize their full capabilities and
to develop the resources of the lands in which they live can be
furthered through the cooperative endeavor of all nations to
exchange technical knowledge and skills and to encourage the
flow of investment capital.
(c) Technical assistance and capital investment can make maxi-
mum contribution to economic development only where there is
understanding of the mutual advantages of such assistance and
investment and where there is confidence of fair and reasonable
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treatment and clue respect for the legitimate interests of the
peoples of the countries to which the assistance is given and in
which the investment is made and of the countries from which the
assistance and investments are derived. In the case of investment
this involves confidence on the part of the people of the under-
developed areas that investors will conserve as well as develop
local resources, will bear a fair share of local taxes and observe
local laws, and will provide adequate wages and working condi-
tions for local labor. It involves confidence on the part of
investors, through intergovernmental agreements or otherwise,
that they will not be deprived of their property without prompt,
adequate, and effective compensation; that they will be given
reasonable opportunity to remit their earnings and withdraw
their capital; that they will have reasonable freedom to manage,
operate, and control their enterprises ; that they will enjoy security
in the protection of their persons and property, including indus-
trial and intellectual property, and nondiscriminatory treatment
in taxation and in the conduct of their business affairs.
SEc. 403. (a) It is declared to be the policy of the United States
to aid the efforts of the peoples of economically underdeveloped areas
to develop their resources and improve their working and living con-
ditions by encouraging the exchange of technical knowledge and skills
and the flow of investment capital to countries which provide condi-
tions under which such technical assistance and capital can effectively
and constructively contribute to raising standards of living, creating
new sources of wealth, increasing productivity and expanding pur-
chasing power.
(b) It is further declared to he the policy of the United States that
in order to achieve the most effective utilization of the resources of
the United States, private and public, which are or may be available
for aid in the development of economically underdeveloped areas,
agencies of the United States Government, in reviewing requests of
foreign governments for aid for such purposes, shall take into con-
sideration (1) whether the assistance applied for is an appropriate
part of a program reasonably designed to contribute to the balanced
and integrated development of the country or area concerned; (2)
whether any works or facilities which may be projected are actually
needed in view of similar facilities existing in the area and are other-
wise economically sound; and (3) with respect to projects for which
capital is requested, whether private capital is available either in the
country or elsewhere upon reasonable terms and in sufficient amounts
to finance such projects.
SEC. 404. (a) In order to accomplish the purposes of this title, the
United States is authorized to participate in multilateral technical
cooperation programs carried on by the United Nations, the Organi-
zation of American States, and their related organizations, and by
other international organizations, wherever practicable.
(b) Within the limits of appropriations made available to carry out
the purposes of this title, the President is authorized to,make contribu-
tions to the United Nations for technical cooperation programs carried
on by it and its related organizations which will contribute to accom-
plishing the purposes of this title as effectively as would participation
in comparable programs on a bilateral basis. The President is further
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authorized to make contributions for technical cooperation programs
carried on by the Organization of American States, its related organi-
zations, and by other international organizations.
(c) Agencies of the United States Government on request of interna-
tional organizations are authorized, upon approval by the President,
to furnish services and such facilities as may be necessary in connection
therewith, on an advance of funds or reimbursement basis, for such
organizations in connection with their technical cooperation programs.
Amounts received as reimbursements from such organizations shall be
credited, at the option of the appropriate agency, either to the appro-
priation, fund, or account utilized in incurring the obligation, or to an
appropriate appropriation, fund, or account currently available for the
purposes for which expenditures were made.
SEC. 405. The President is authorized to plan, undertake, administer,
and execute bilateral technical cooperation programs carried on by any
United States Government agency and, in so doing-
(a) To coordinate and direct existing and new technical co-
operation programs.
(b) To assist other interested governments in the formulation
of programs for the balanced and integrated development of the
economic resources and productive capacities of economically
underdeveloped areas.
(c) To receive, consider, and review reports of joint commis-
sions set up as provided in section 410 of this title.
(d) To make, within appropriations made available for the
purpose, advances and grants in aid of technical cooperation pro-
grams to any person, corporation, or other body of persons, or to
any foreign government or foreign government agency.
(e) To make and perform contracts or agreements in respect of
technical cooperation programs on behalf of the United States
Government with any person, corporation, or other body of per-
sons however designated, whether within or without the United
States, or with any foreign government or foreign government
agency : Provided, That with respect to contracts or agreements
which entail commitments for the expenditure of funds appro-
priated pursuant to the authority of. this title, such contracts or
agreements, within the limits of appropriations or contract
authorizations hereafter made available may, subject to any future
action of the Congress, run for not to exceed three years in any
one case.
(f) To provide for printing and binding outside the conti-
nental limits of the United States, without regard to section 11
of the Act of March 1, 1919 (44 U. S. C.111) .
(g) To provide for the publication of information made avail-
able by the joint commissions referred to in section 410, and from
other sources, regarding resources, opportunities for private
investment capital, and the need for technical knowledge and
skill in each participating country.
SEc. 406. Agreements made by the United States under the author-
ity of this title with other governments and with international organi-
zations shall be registered with the Secretariat of the United Nations
in accordance with the provisions of article 102 of the United Nations
Charter.
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SEC. 407. In carrying out the programs authorized in section 405
of this title-
(a) The participation of private agencies and persons shall be
sought to the greatest extent practicable.
(b) Due regard shall be given, in reviewing requests for assist-
ance, to the possibilities of achieving satisfactory results from
such assistance as evidenced by the desire of the country request-
ing it (1) to take steps necessary to make effective use of the
assistance made available, including the encouragement of the
flow of productive local and foreign investment capital where
needed for development; and (2) to endeavor to facilitate the
development of the colonies, possessions, dependencies, and non-
self-governing territories administered by such requesting country
so that such areas may make adequate contribution to the effec-
tiveness of the assistance requested.
(c) Assistance shall be made available only where the President
determines that the country being assisted-
(1) Pays a fair share of the cost of the program.
(2) Provides all necessary information concerning such
program and gives the program full publicity.
(3) Seeks to the maximum extent possible full coordina-
tion and integration of technical cooperation programs being
carried on in that country.
(4) Endeavors to make effective use of the results of the
program.
(5) Cooperates with other countries participating in the
program in the mutual exchange of technical knowledge and
skills.
SEC. 408. The President is authorized to prescribe such rules and
regulations as may be necessary and proper to carry out the provisions
of this title.
SEC. 409. The President shall create an advisory board, hereinafter
referred to as the "board", which shall advise and consult with the
President or such other officer as he may designate to administer the
program herein authorized, with respect to general or basic policy
matters arising in connection with operation of the program. The
board shall consist of not more than thirteen members to be appointed
by the President, one of whom, by and with the advice and consent
of the Senate, shall be appointed by him as chairman. The members
of the board shall be broadly representative of voluntary agencies and
other groups interested in the program, including business, labor,
agriculture, public health, and education. All members of the board
shall be citizens of the United States; none except the chairman shall
be an officer or an employee of the United States (including any agency
or instrumentality of the United States) who as such regularly receives
compensation for current services. Members of the board, other than
the chairman if he is an officer of the United States Government, shall
receive out of funds made available for the purposes of this title a per
diem allowance of $50 for each day spent away from their homes or
regular places of business for the purpose 'of attendance at meetings
of the board or at conferences held upon the call of the chairman, and
in necessary travel, and while so engaged they may be paid actual
travel expenses and not to exceed $10 per diem in lieu of subsistence
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and other expenses. The President may appoint such committees in
special fields of activity as he may determine to be necessary or desir-
able to effectuate the purposes of this title. The members of such
Committees shall receive the same compensation as that provided for
members of the board.
SEc. 410. (a) At the request of a foreign country, there may be
established a joint commission for economic development to be com-
posed of persons named by the President and persons to be named by
the requesting country, and may include representatives of interna-
tional organizations mutually agreed upon.
(b) The duties of each such joint commission shall be mutually
agreed upon, and may include, among other things, examination of
the following' :
(1) 'i he requesting country's requirements with respect to
technical assistance.
(2) The requesting country's resources and potentialities,
including mutually advantageous opportunities for utilization of
foreign technical knowledge and skills and investment.
(3) Policies which will remove deterrents to and otherwise
encourage the introduction, local development, and application
of technical skills and the creation and effective utilization of
capital, both domestic and foreign; and the implementation of
such policies by appropriate measures on the part of the requesting
country and the United States, and of other countries, when appro-
priate,, and after consultation with them.
(c) Such joint commissions shall prepare studies and reports which
they shall transmit to the appropriate authorities of the United States
and of the requesting countries. In such reports the j pint commis-
sions may include recommendations as to any specific projects which
they conclude would contribute to the economic development of the
requesting countries.
(d) The costs of each joint commission shall be borne by the United
States and the requesting country in the proportion that may be agreed
upon between the President and that country.
SEc. 411. All or part of United States support for and participation
in any technical cooperation program carried on under this title shall
be terminated by the President-
(a) If he determines that such support and participation no
longer contribute effectively to the purposes of this title, are con-
trary to a resolution adopted by the General Assembly of the
United Nations that the continuance of such technical cooperation
programs is unnecessary or undesirable, or are not consistent with
the foreign policy of the United States.
(b) If a concurrent resolution of both Houses of the Congress
finds such termination is desirable.
SEc. 412. The President may exercise any power or authority con-
ferred on him by this title through the Secretary of State or through
any other officer or employee of the United States Government.
SEc. 413. In order to carry out the purposes of this title-
(a) The President shall appoint, by and with the advice and
consent of the Senate, a person who, under the direction of the
President or such other officer as he may designate pursuant to
section 412 hereof to exercise the powers conferred upon him by
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this title, shall be responsible for planning, implementing, and
managing the programs authorized in this title. He shall be
compensated at a rate fixed by the President without regard to
the Classification Act of 1949 but not in excess of $15,000 per
annum.
(b) Officers, employees, agents, and attorneys may be employed
for duty within the continental limits of the United States in
accordance with the provisions of the civil-service laws and the
Classification Act of 1949.
(c) Persons employed for duty outside the continental limits
of the United States and officers and employees of the United
States Government assigned for such duty, may receive com-
pensation at any of the rates provided for the Foreign Service
Reserve and Staff by the Foreign Service Act of 1946 (60 Stat.
999), as amended, may receive allowances and benefits not in
excess of those established thereunder, and may be appointed to
any class in the Foreign Service Reserve or Staff in accordance
with the provisions of such Act.
(d) Alien clerks and employees employed for the purpose of
performing functions under this title shall be employed in accord-
ance with the provisions of the Foreign Service Act of 1946, as
amended.
(e) Officers and employees of the United States Government
may be detailed to offices or positions to- which no compensation
is attached with any foreign government or foreign government
agency or with any international organization: Provided, That
while so detailed any such person.shall be considered, for the pur-
pose of preserving his privileges, rights, seniority, or other benefits,
an officer or employee of the United States Government and of the
United States Government agency from which detailed and shall
receive therefrom his regular compensation, which shall be reim-
bursed to such agency from funds available under this title : Pro-
vided further, That such acceptance of office shall in no case involve
the taking of an oath of allegiance to another government.
(f) Experts and consultants or organizations thereof may be
employed as authorized by section 15'of the Act of August 2, 1946
(5 U. S. C. 55a), and individuals so employed may be compensated
at a rate not in excess of $75 per diem.
(g) Such additional civilian personnel may be employed with-
out regard to subsection (a) of section 14 of the Federal Employees
Pay Act of 1946 (60 Stat. 219), as amended, as may be necessary
to carry out the policies and purposes of this title.
SEC. 414. No citizen or resident of the United States, whether or not
now in the employ of the Government, may be employed or assigned to
duties by the Government under this Act until such individual has been
investigated by the Federal Bureau of Investigation and a report
thereon has been made to the Secretary'of State: Provided, however,
That any present employee of the Government, pending the report as
to such employee by the Federal Bureau of Investigation, may be
employed or assigned to duties under this Act for the period of three
months from the date of its enactment. This section shall not apply
in the case of any officer appointed by the President by and with the
advice and consent of the Senate.
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SEC. 415. The President shall transmit to the Congress an annual
report of operations under this title.
SEC. 416. (a) In order to carry out the provisions of this title, there
shall be made available such funds as are hereafter authorized and
appropriated from time to time for the purposes of this title : Pro-
vided, however, That for the purpose of carrying out the provisions
of this title through June 30, 1951, there is hereby authorized to be
appropriated a sum not to exceed $35,000,000, including any sums
appropriated to carry on the activities of the Institute of Inter-
American Affairs, and technical cooperation programs as defined in
section 418 herein under the United States Information and Educa-
tional Exchange Act of 1948 (62 Stat. 6). Activities provided for
under this title may be prosecuted under such appropriations or, under
authority granted in appropriation Acts to enter into contracts pend-
ing enactment of such appropriations. Unobligated balances of such
appropriations for any fiscal year may, when so specified in the appro-
priation Act concerned, be carried over to any succeeding fiscal year
or years. The President may allocate to any United States Govern-
ment agency any part of any appropriation available for carrying
out the purposes of this title. Such funds shall be available for obliga-
tion and expenditure for the purposes of this title in accordance with
authority granted hereunder or under authority governing the activi-
ties of the Government agencies to which such funds are allocated.
(b) Nothing in this title is intended nor shall it be construed as an
expressed or implied commitment to provide any specific assistance,
whether of funds, commodities, or services, to any country or coun-
tries, or to any international organization.
SEC. 417. If any provision of this title or the application of any
provision to any circumstances or persons shall be held invalid, the
validity of the remainder of the title and the applicability of such
provision to other circumstances or persons shall not be affected
thereby.
SEC. 418. As used in this title-
(a) The term "technical cooperation programs" means programs
for the international interchange of technical knowledge and skills
desioned to contribute to the balanced and integrated development
of tie economic resources and productive capacities of economically
underdeveloped areas. Such activities may include, but need not
be limited to, economic, engineering, medical, educational, agricultural,
fishery, mineral, and fiscal surveys, demonstration, training, and sim-
ilar projects that serve the purpose of promoting the development of
economic resources and productive capacities of underdeveloped areas.
The term "technical cooperation programs" does not include such
activities authorized by the United States Information and Educa-
tional Exchange Act of 1948 (62 Stat. 6) as are not primarily related
to economic development nor activities undertaken now or hereafter
pursuant to the International Aviation Facilities Act (62 Stat. 450),
nor pursuant to the Philippine Rehabilitation Act of 1946 (60 Stat.
128) as amended, nor pursuant to the Foreign Assistance Act of 1948
(62Stat. 137), as amended, nor activities undertaken now or hereafter
in the administration of areas occupied by the United States armed
forces or in Korea by the Economic Cooperation Administration.
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PUB. LAw 535.]
(b) The term "United States Government agency" means any
department, agency, board, wholly or partly owned corporation or
instrumentality, commission, or independent establishment of the
United States Government.
(c) The term "international organization" means any intergovern-
mental organization of which the United States is a member.
INTERNATIONAL CIIILDREN'S WELFARE WORK
SEC. 501. (a) There is hereby authorized to b~ appropriated to the
President not to exceed $15,000,000 for the fiscal year ending June 30,
1951, to enable him to make contributions to the United Nations, or
any.subordinate body thereof, in such manner and on such terms and
conditions as he may deem to be in the interests of the United States,
to support permanent arrangements within the United Nations struc-
ture for international children's welfare work.
(b) If at any time during such fiscal year the President deems it
to be in the interests of the United States, he is authorized to make
contributions, out of any funds appropriated pursuant to the author-
ization contained in subsection (a), to the International Children's
Emergency Fund to carry out the purposes of the International Chil-
dren's Emergency Fund Assistance Act of 1948 upon such terms and
conditions as lie may prescribe; but such contributions shall not exceed
the limitation provided by section 204 of such Act.
(c) No additional appropriation shall be made under the author-
ization contained in such Act of 1948.
(d) Funds appropriated by the second paragraph of title I of the
Foreign Aid Appropriation Act, 1949, shall remain available for the
purposes for which appropriated through June 30, 1951.
Approved June 5, 1950.
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