FOREIGN ASSISTANCE ACT OF 1973

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000600170009-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 55
• Document Creation Date: December 9, 2016
• Document Release Date: August 24, 2001
• Sequence Number: 9
• Publication Date: November 27, 1973
• Content Type: REPORT

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93D CONGRESS
1st Session
I HOUSE OF REPRESENTATIVES f
REPORT
No. 93-664
REIGN ASSISTANCE ACT OF 1973 t / .
Mr. MORGAN, from the committee of conference, submitted the
CONFERENCE REPORT
following
Houses on the amendments of the House to the bill (S. 1443) to au-
thorize the furnishing of defense articles and services to foreign coun-
tries and international organizations, having met, after full and free
conference, have agreed to recommend and do recommend to their
respective Houses as follows:
That the Senate recede from its disagreement to the amendment of
the House to the text of the bill and agree to the same with an amend-
ment as follows:
In lieu of the matter proposed to be inserted by the House amend-
ment insert the following:
That this Act may be cited as the "Foreign Assistance Act of 1973".
The committee of conference on the disagreeing votes of the tw
POLICY; DEVELOPMENT ASSISTANCE AUTHORIZATIONS
SEC. 2. Chapter 1 of part I of the Foreign Assistance Act of 1961 is
amended as follows:
(1) In the chapter heading, immediately after "CHAPTER 1-POLICY",
insert "; DEVELOPMENT ASSISTANCE AUTHORIZATIONS".
(2) In section 102-
(A) insert "(a)" immediately after "STATEMENT OF POLICY.-";
and
(B) act iat the end thereof the following:
"(b) The Congress further finds and declares that, with the help of
United States economic assistance, progress has been made in creating
a base j 6r the economic progress of the less developed countries. At the
same time, the conditions which shaped the United States foreign as-
sistance program in the past have changed. While the United States
must continue to seek increased cooperation and mutually beneficial
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relations with other nations, our relations with the less developed countries
must be revised to reflect the new realities. In restructuring our relation-
ships with these countries, the President should place appropriate em-
phasis on the following criteria:
"(1) Bilateral development aid should concentrate increasingly on
sharing American technical expertise, farm commodities, and industrial
goods to meet critical development problems, and less on large-scale
capital transfers, which when made should be in association with con-
tributions from other industrialized countries working together in a
multilateral framework.
"(2) Future United States bilateral support for development should
focus on critical problems in those functional sectors which affect the
lives of the majority of the people in the developing countries: food roduc-
tion; rural development and nutrition; population planning andphealth;
and education, public administration, and human resource development.
"(3) United States cooperation in development should be carried out to
the maximum extent possible through the private sector, including those
institutions which already have ties in the developing areas, such as
educational institutions, cooperatives, credit unions, and voluntary
agencies.
"(4) Development planning must be the responsibility of each sovereign
country. United States assistance should be administered in a collaborative
style to support the development goals chosen by each country receiving
assistance.
"(6) United States bilateral development assistance should give the
highest priority to undertakings submitted by host governments which
directly improve the lives of the poorest of their people and their capacity
to participate in the development of their countries.
"(6) The economic and social development programs to which the
United States lends support should reflect, to the maximum extent prac-
ticable, the role of United States private investment in such economic and
social development programs.
"(7) Under the policy guidance of the Secretary of State, the agency
primarily responsible for administering this part should have the responsi-
bility for coordinating all United States development-related activities."
(3) At the end thereof, add the following new sections:
"SEC. 103. FOOD AND NUTRITION.-In order to alleviate starvation,
hunger, and malnutrition, and to provide basic services to poor people,
enhancing their capacity for self-help, the President is authorized to
furnish assistance, on such terms and conditions as he may determine,
for agriculture, rural development, and nutrition. There are authorized
to be appropriated to the President for the purposes of this section,
in addition to ,funds otherwise available for such purposes, $291,000,000
for each of the fiscal years 1974 and 1975, which amounts are author-
ized to remain available until expended.
"SEC. 104. POPULATION PLANNING AND HEALTH.-In order to in-
crease the opportunities and motivation for family planning, to reduce
the rate of population growth, to prevent and combat disease, and to
help provide health services ,for the great majority, the President is au-
thorized to furnish assistance on such terms and conditions as he may
determine, for population planning and health. There are authorized
to be appropriated to the President for the purposes of this section, in
addition to the funds otherwise available for such purposes, $146,000,000
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for each of the fiscal years 1974 and 1975, which amounts are authorized
to remain available until expended.
"SEC. 105. EDUCATION AND HUMAN RESOURCES DEVELOPMENT.-In
order to reduce illiteracy, to extend basic education and to increase
manpower training in skills related to development, the President is
authorized to ,furnish assistance on such terms and conditions as he
may determine, for education, public administration, and human resource
development. There are authorized to be appropriated to the President
for the purposes of this section, in addition to funds otherwise available
for such purposes, $90,000,000 for each of the fiscal years 1974 and 1975,
which amounts are authorized to remain available until expended.
"SEC. 106. SELECTED DEVELOPMENT PROBLEMS.-The President is
authorized to furnish assistance on such terms and conditions as he
may determine, to help solve economic and social development problems
in fields such as transportation, power, industry, urban development,
and export development. There are authorized to be appropriated to the
President for the purposes of this section, in addition to funds otherwise
available for such purposes, $53,000,000 for each of the fiscal years 1974
and 1975, which amounts are authorized to remain available until
expended.
"SEC. 107. SELECTED COUNTRIES AND ORGANIZATIONS.-The Presi-
dent is authorized to furnish assistance on such terms and conditions
as he may determine, in support of the general economy of recipient
countries or for development programs conducted by private or inter-
national organizations. There are authorized to be appropriated to
the President for the purposes of this section, in addition to funds other-
wise available for such purposes, $39,000,000 for each of the fiscal years
1974 and 1975, which amounts are authorized to remain available until
expended.
"SEC. 108. APPLICATION OF EXISTING PROVISIONS.-Assistance
under this chapter shall be furnished in accordance with the provisions
of titles I, II, or X of chapter 2 of this part, and nothing in this chapter
shall be construed to make inapplicable the restrictions, criteria,
authorities, or other provisions of this or any other Act in accordance
with which assistance furnished under this chapter would otherwise have
been provided.
"SEC. 109. TRANSFER OF FUNDS.-Notwithstanding section 108 o/
this Act, whenever the President determines it to be necessary for the
purposes of this chapter, not to exceed 15 per centum of the funds made
available for any provision of this chapter may be transferred to, and
consolidated with, the funds made available for any other provision of
this chapter, and may be used for any of the purposes for which such
funds may be used, except that the total in the provision for the benefit
of which the transfer is made shall not be increased by more than 25
per centum of the amount of funds made available for such provision.
The authority of sections 610(a) and 614(a) of this Act may not be
used to transfer funds made available under this chapter for use for
purposes of any,other provision of this Act.
"SEC. 110. COST-SHARING AND FUNDING LIMITS.-(a) No assist-
ance shall be furnished by the United States Government to a country
under sections 103 through 107 of this Act until the country provides
assurances to the President, and the President is satisfied, that such
country will provide at least 25 per centum of the costs of the entire program,
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project, or activity with respect to which such assistance is to be furnished,
except that such costs borne by such country may be provided on an 'in-
kind' basis.
"(b) No grant assistance shall' be disbursed by the United States
Government under sections 103 through 107 of this Act for a project, for
a period exceeding thirty-six consecutive months, without further justi-
fication satisfactory to the Congress and efforts being made to obtain
sources of financing within that country and from other foreign countries
and multilateral organizations.
"SEC. 111. DEVELOPMENT AND USE OF COOPERATIVES.--In Order
to strengthen the participation of the urban and rural poor in their
country's development, not less than $20,000,000 of the funds made
available for the purposes of this chapter shall be available during the
fiscal years 1.974 and 1975 only for assistance in the development of
cooperatives in the less developed countries which will enable and encour-
age greater numbers of the poor to help themselves toward a better life.
"SEC. 112. PBOHIBITINg? POL.TCE,. 1Z Z~1T( TC.--(a) No part of any
appropriation made available to carry out this Act_shall be used to conduct
any police training or related program in a foreign country.
"(b) Subsection (a) of this section shall not apply-
"(1) with respect to assistance rendered under section 515(c) of
the Omnibus Crime Control and Safe Streets Act of 1968, as amended,
or with respect to any authority of the Drug Enforcement Adminss-
tration or the Federal Bureau of Investigation which relates to
crimes of the nature which are unlawful under the laws of the United
States; or
"(2) to any contract entered into prior to the date of enactment of
this section with any person, organization, or agency of the United
States Government to provide personnel to conduct, or assist in
conducting, any such program.
Notwithstanding paragraph (2), subsection (a) shall apply to any re-
newal or extension of any contract referred to in such paragraph entered
into on or after such date of enactment.
"SEC. 113. INTEGRATING WOMEN INTO NATIONAL ECONOMIES:-
Sections 103 through 107 of this Act shall be administered so as to give
particular attention to those programs, projects, and activities which tend
to integrate women into the national economies of foreign countries, thus
improving their status and assisting the total development effort.
"SEC. 114. LIMITING USE OF IIUNDS FOR ABORTIONS. None of the
funds made available to carry out this part shall be used to pay for the
performance of abortions as a method of family planning or to motivate
or coerce any .person to practice abortions."
SEC. 5. (a) Section 203 of the Foreign Assistance Act of 1961 is
amended to read as follows:
"SEC. 203. FISCAL PROVISIONS.--Not more than 50 per centum of
dollar receipts scheduled to be paid during each of the fiscal years 1974
and 1975 from loans made pursuant to this part and from loans made
'under predecessor foreign assistance legislation are authorized to be made
available for each such fiscal year for use . for purposes of making loans
under chapter 1 of this part. Such receipts shall remain available until
expended."
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(b) Effective July 1, 1975, such section 208 is repealed.
SEC. 4. Title II of chapter 2 of part I of the Foreign Assistance Act
of 1961 is amended as follows:
(1) In section 211 (a), in the last sentence immediately after the word
"assistance", insert the word "directly".
(2) In section 214, strike out subsections (c) and (d) and insert in lieu
thereof the following:
"(c) To carry out the purposes of this section, there are authorized to
be appropriated to the President for each of the fiscal years 1974 and 1975
$19,000,000, which amounts are authorized to remain available until
expended.
"(d) There are authorized to be appropriated to the President to carry
out the purposes of this section, in addition to funds otherwise available
for such purposes, for each of the fiscal years 1974 and 1975 $6,500,000
in foreign currencies which the Secretary of the Treasury determines to
be excess to the normal requirements of the United States.
"(e) Not later than June 30, 1974, the Secretary of State shall submit
to the Congress such recommendations (including recommendations
concerning which agency of the United States Government should admin-
ister such assistance) as he considers desirable for assistance to schools,
libraries, and hospital centers for medical education and research, outside
the United States, founded or sponsored by United States citizens and
serving as study and demonstration centers for ideas and practices of
the United States."
SEC. 5. Title III of chapter 2 of part I of the Foreign Assistance Act
of 1961 is amended as follows:
(1) In section 221, strike out "$205,000,000" and insert in lieu thereof
"$305,000,000".
(2) In section 223(i), strike out "June 30, 1974" and insert in lieu
thereof "June 30, 1975".
SEC. 6. Title IV of chapter 2 of part I of the Foreign Assistance Act
of 1961 is amended as follows:
(1) In section 285(a) (4), strike out "June 30, 1974" and insert in lieu
thereof "December 31, 1974".
(2) In section 240(h), strike out "June 30, 1973" and insert in lieu
thereof "December 31, 1974".
SEC. 7. Section 252(b) of the Foreign Assistance Act of 1961 is amended
to read as follows:
"(b) There are authorized to be appropriated to the Presi-
dent for the fiscal year 1974, $934,000, and for the fiscal year 1975,
$934,000, for grants to the National Association of the Partners of the
Alliance, Inc., in accordance with the purposes of this title."
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PROGRAMS RELATING TO POPULATION GROWTH
SEC. 8., Section 292 of the Foreign Assistance Act of 1961 is amended
by striking out `for each of the fiscal years 1972 and 1973, $125,000,000"
and inserting in lieu thereof `for the fiscal year 1974, $125,000,000, and
for the fiscal year 1975, $130,000,000".
INTERNATIONAL ORGANIZATIONS AND PROGRAMS
SEC. 9. Chapter 3 of part I of the Foreign Assistance Act of 1961 is
amended as follows:
(1) At the end of section 301 add the following new subsection:
"(e) (1) In the case of the United Nations and its affiliated organiza-
tions, including the International Atomic Energy Agency, the President
shall, acting through the United States representative to such organizations,
propose and actively seek the establishment by the governing authorities of
such organizations a single ofessionally qualified group of appropriate
size for the purpose of providing an independent and continuous program
of selective examination, review, and evaluation of the programs and activ-
ities of such organizations. Such proposal shall provide that such group
shall be established in accordance with such terms of reference as such
governing authority may prescribe and that the reports of such group on
each examination, review, and evaluation shall be submitted directly to
such governing authorit for transmittal to the representative of each indi-
vidual member nation. Such proposal shall further include a statement of
auditing and report? standards, as prepared by the Comptroller General
of the United States, or the consideration: of the governing authority of the
international organization concerned to assist in formulating terms of
reference for such review and evaluation group.
"(2) 1-n, the case of the International Bank for Reconstruction and
Development and the Asian Development Bank, the President shall, aetisny
through the United States representative to such organizations, propose
and actively seek the establishment by the governing authorities of such
organizations professionally qualified groups of appropriate size for the
purpose of providing an independent and continuous program or f selective
examination, review, and evaluation of the programs and activities of such
organizations. Such proposal shall provide that such groups shall be
established in accordance with such terms of reference as such governing
authorities may prescribe, and that the reports of such groups on each
examination, review, and evaluation shall be submitted directly to such
governing authority for transmittal to the representative of each individual
member nation. Such proposal shall further include a statement of auditing
and reporting standards, as ,prepared by the Comptroller General of the
United States, for the consideration of the governing authority of the
international organization concerned to assist in formulating terms of
reference for such review and evaluation groups.
"(3) Reports received by the United States representatives to these
-international organizations under this subsection and related informa-
tion on actions taken as a result of recommendations made therein shall be
submitted promptly to the President for transmittal to the Congress and to
the Comptroller General. The Comptroller General shall periodically
review such reports and related information and shall report simultaneously
to the Congress and to the President any suggestions the Comptroller
General may deem appropriate concerning auditing and reporting stanl-
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ards followed by such groups, the recommendations made and actions
taken as a result of such recommendations."
(2) In section 302(a), strike out "for the fiscal year 1972, $138,000,-
000 and for the fiscal year 1973, $138,000,000" and insert in lieu thereof
"for the fiscal year 1974, $127,822,000 and for the fiscal year 1975,
$150,000,000".
(3) In section 302(b) (2), strike out "for use in the fiscal year 1972,
$15,000,000, and for use in the fiscal year 1973, $15,000,000" and
insert in lieu thereof `for use in the fiscal year 1974, $14,500,000, and
for use in the fiscal year 1975, $14,500,000,".
(4) Section 302(d) is amended to read as follows:
"(d) Of the funds made available to carry out this chapter for each of
the fiscal years 1974 and 1975, $18,000,000 shall be available in each
such fiscal year only for contributions to the United Nations Children's
Fund."
(5) In section 302(e), strike out "$1,000,000 for the fiscal year 1972
and $1,000,000 for the fiscal year 1973" and insert in lieu thereof "$2,-
000,000 for the fiscal year 1974 and $2,000,000 for the fiscal year 1975".
SEC. 10. Section 451 (a) of the Foreign Assistance Act of 1961 is
amended to read as follows: ` (a) There is authorized to be appropriated
to the President for each of the fiscal years 1974 and 1975 not to exceed
$30,000,000, to provide assistance authorized by this part primarily for
disaster relief purposes, in accordance with the provisions applicable to
the furnishing of such assistance."
1 SEC. 11. (a) Section 481 of the Foreign Assistance Act of 1961 is
amended by inserting "(a)" immediately after "INTERNATIONAL NAR-
COTICS CONTROL.-" and by adding at the end thereof the following new
1subsection:
"(b)(1) Not later than forty-five days after the date on which each
calendar quarter of each year ends, the President shall transmit to the
Speaker of the House of Representatives, and to the Committee on Foreign
(Relations of the Senate, a report on the programing and obligation, on a
.,calendar quarter basis, of funds under this chapter prior to such date.
"(2) Not later than fortyfive days after the date on which the second
calendar quarter of each year ends and not later than forty-five days
rafter the date on which the fourth calendar quarter of each year ends,
'.the President shall transmit to the Speaker of the House of Representa-
tives, and to the Committee on Foreign Relations of the Senate, a complete
and detailed semiannual report on the activities and operations carried out
under this chapter prior to such date. Such semiannual report shall in-
clude, but shall not be limited to-
'(A) the status of each agreement concluded prior to such date with
other countries to carry out the purposes of this chapter; and
"(B) the aggregate of obligations and expenditures made, and the
types and quantity of equipment provided, on a calendar quarter
basis, prior to such date-
"(i) to carry out the purposes of this chapter with respect to
each country and each international organization receiving
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assistance under this chapter, including the cost of United States
personnel engaged in carrying out such purposes in each such
country and with each such international organization;
"(ii) to carry out each program conducted under this chapter
,n each country and by each international organization, includ-
ing the cost of United States personnel engaged in carrying out
each such program; and
"(iii) for administrative support services within the United
States to carry out the purposes of this chapter, including the
cost of United States personnel engaged in carrying out such
purposes in the United States."
(b) Section 482 of the Foreign Assistance Act of 1961 is amended by
striking out "'42,500,000" and all that follows down through the period
at the end of such section and inserting in lieu thereof "$42,500,000 for
each of the fiscal years 1974 and 1975. Amounts appropriated under this
(section are authorized to remain available until expended."
SEC. 12. (a) Chapter 1 of part II of the Foreign Assistance Act of 1961
is amended by adding at the end thereof the following new section:
"SEC. 50.2A. EXCESS DEFENSE ARTICLES.-Excess defense articles
shall be provided whenever possible rather than providing such articles by
the procurement of new items."
(b) Chapter 2 of part II of the Foreign Assistance Act of 1961 is
amended as follows:
(1) Section 508 is amended to read as follows:
"SEC. 503. GENERAL AUTHORITY.-(a) The President is authorized
to furnish military assistance, on such terms and conditions as he may
determine, to any friendly country or international organization, the
assisting of which the President finds will strengthen the security of the
United States and promote world peace and which is otherwise eligible to
receive such assistance, by-
"(1) acquiring from any source and providing (by loan or gran,,)
any defense article or defense service; or
"(72) assigning or detailing members of the Armed Forces of the
United States and other personnel of the Department of Defense to
perform duties of a noncombatant nature.
"(b) In addition to such other terms and conditions as the President
may determine pursuant to subsection (a), defense articles may be
loaned thereunder only if-
"(1) there is a bonaide reason, other than the shortage of funds,
for,providing such articles on a loan basis rather than on a grant
basis;
"(72) there is a reasonable expectation that such articles will be
returned to the agency making the loan at the end of the loan period,
unless the loan is then renewed;
"(3) the loan period is of fixed duration not exceeding five years,
during which such article may be recalled for any reason by the
United States;
"()4) the agency making the loan is reimbursed for the loan based
on the amount charged to the appropriation for military assistance
under subsection (c); and
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"(6) arrangements are made with the agency making the loan
to be reimbursed in the event such article is lost or destroyed while
on loan, such reimbursement being made first out of any funds
available to carry out this chapter and based on the depreciated value
of the article at the time of loss or destruction.
"(c) (1) In the case of any loan of a defense article or defense service
made under this section, there shall be a charge to the appropriation for
military assistance for any fiscal year while the article or service is on loan
in an amount based on-
"(A) the out-of-pocket expenses authorized to be incurred in
connection with such loan during such fiscal year; and
"(B) the depreciation which occurs during such year while such
article is on loan.
"(2) The provisions of this subsection shall not apply-
"(A) to any particular defense article or defense service which
the United States Government agreed, prior to the date of enact-
ment of this subsection, to lend; and
"(B) to any defense article or defense service, or portion thereof,
acquired with funds appropriated for military assistance under this
Act."
(2) In section 504(a)-
(A) strike out "$500,000,000 for the fiscal year 1972" and insert
in lieu thereof "$512,500,000 for the fiscal year 1974"; and
(B) strike out "forty countries" and insert in lieu thereof "thirty-
one countries".
(3) Section 505 is amended by adding the following new subsections at
the end thereof:
"(e) In considering a request for approval of any transfer of any
weapon, weapons system, munitions, aircraft, military boat, mili-
tary vessel, or other implement of war to another country, the President
shall not give his consent under subsection (a) (1) or (a) (4) to the trans-
fer unless the United States itself would transfer the defense article under
consideration to that country, and prior to the date he intends to give his
consent to the transfer, the President notifies the Speaker of the House of
Representatives and the Committee on Foreign Relations of the Senate in
writing of each such intended consent, the justification for giving such
consent, the defense article for which he intends to give his consent to be
so transferred, and the foreign country to which that defense article is to be
transferred. In addition, the President shall not give his consent under
subsection (a) (1) or (a) (4) to the transfer of any significant defense
articles on the United States Munitions List unless the foreign country
requesting consent to transfer agrees to demilitarize such defense articles
prior to transfer, or the proposed recipient foreign country provides a
commitment in writing to the United States Government that it will not
transfer such defense articles, if not demilitarized, to any other foreign
country or erson without first obtaining the consent of the President.
"(f) Efective July 1, 1974, no defense article shall be furnished to any
country on a grant basis unless such country shall have agreed that the
net proceeds of sale received by such country in disposing of any weapon,
weapons system, munition, aircraft, military boat, military vessel, or
other implement of war received under this chapter will be paid to the
United States Government and shall be available to pay all official costs
of the United States Government payable in the currency of that country,
including all costs relating to the financing of international educational
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and cultural exchange activities in which that country participates under
the programs authorized by the Mutual Educational and Cultural Ex-
change Act of 1961."
(4) In section 506(a)-
(A) strike out "the fiscal year 1972" in each place it appears and
insert in lieu thereof "the fiscal year 1974";
(B) strike out "vital to the security" and insert in lieu thereof "in
the security interests"; and
(C) strike out "$300,000,000" and insert in lieu thereof
' 250,000,000".
(5) Sections 507, 508, 509, 512, and 514 are repealed.
(6) Section 518 is amended-
(A) by striking out "THAILAND.--" in the section heading and in-
sertsing in lieu thereof "THAILAND AND LAOS.-(a)"; and
(B) by adding at the end thereof the following new subsection:
"(b) After June 80, 1974, no military assistance shall be furnisi,ed
by the United States to Laos directly or through any other foreign country
unless that assistance is authorized under this Act or the Foreign Military
Sales Act."
(c) Section. 655(c) shall not apply to assistance authorized to be f ur-
nished under any provision of law for fiscal year 1974.
SEC. 18. Chapter 4 of part II of the Foreign Assistance Act of 1961' is
amended-
(1) in section 582 by striking out "for the fiscal year 1972 not
to exceed $618,000,000, of which not less than $50,000,000 shall
be available solely for Israel" and inserting in lieu thereof "for
the fiscal year 1974 not to exceed $125,000,000, of which not less
than $50,000,000 shall be available solely for Israel"; and
(2) by striking out section 533.
SEC. 14. Section 617 of the Foreign Assistance Act of 1961 is amended
by striking out "twelve" and inserting in lieu thereof "eight".
SEC. 15. The first full paragraph of section 620(e) (1) of the Foreign
Assistance Act of 1961 is amended by striking out "no other provision
of this Act shall be construed to authorize the President to waive the
provisions of this subsection." and inserting in lieu thereof "the pro-
visions of this subsection shall not be waived with respect to any country
unless the President determines and certifies that such a waiver is impor-
tant to the national interests of the United States. Such certification shall: be
reported immediately to Congress."
SEC. 16. Section 625 of the Foreign Assistance Act of 1961 is amended
by adding at the end thereof the following new subsection:
"(k) (1) In accordance with such regulations as the President may
prescribe, the following categories of personnel who serve in the agency
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primarily responsible for administering part I of this Act shall become
participants in the Foreign Service Retirement and Disability System:
"(A) persons serving under unlimited appointments in employ-
ment subject to subsection (d) (2) of this section as Foreign Service
Reserve officers and as Foreign Service staff' officers and employees;
and
"(B) a person serving in a position to which he was appointed
by the President, whether with or without the advice and consent
of the Senate, if (i) such person shall have served previously under
an unlimited appointment pursuant to such subsection (d) (2)
or a comparable provision of predecessor legislation to this Act,
and (ii) following service specified in clause (i) of this subparagraph,
such person shall have served continuously with such agency or its
predecessor agencies only in positions established under the authority
of sections 624 (a) and 631 (b) or comparable provisions of predecessor
legislation to this Act.
"(2) Upon becoming a participant in the Foreign Service Retirement
and Disability System, any such officer or employee shall make a special
contribution to the Foreign Service Retirement and Disability Fund in
accordance with the provisions of section 852 of the Foreign Service Act
of 1946, as amended. Thereafter, compulsory contributions will be made
with respect to each such participating officer or employee in accordance
with the provisions of section 811 of the Foreign Service Act of 1946, as
amended.
"(3) The provisions o_ of section 636 and title VIII of the Foreign
Service Act of 1946, as amended, shall apply to participation in the
Foreign Service Retirement and Disability System by any such officer
or employee.
"(4) If an officer who becomes a participant in the Foreign Service
Retirement and Disability System under paragraph (1) of this sub-
section is appointed by the President, by and with the advice and consent
of the Senate, or by the President alone, to a position in any agency of
the United States Government, any United States delegation or mission to
any international organization, in any international commission, or in
any international body, such officer shall not, by virtue of the acceptance
of such an appointment, lose his status as a participant in the system.
"(5) Any such officer or employee who becomes a participant in the
Foreign Service Retirement and Disability System under paragraph
(1) of this subsection shall be mandatorily retired (A) at the end of the
month in which he reaches age seventy, or (B) earlier if, during the third
year after the effective date of this subsection, he attains age sixty our
or if he is over age sixty four; during the fourth year at age sixty-tree;
during the fifth year at age sixty-two; during the sixth year at age sixty-one;
and thereafter at the end of the month in which he reaches age sixty. How-
ever, no participant shall be mandatorily retired under this paragraph
while serving in a position to which appointed by the President, by and
with the advice and consent of the Senate. Any participant who completes
a period of authorized service after reaching the mandatory retirement age
specified in this paragraph shall be retired at the end of the month in which
such service is completed.
"(6) Whenever the President deems it to be in the public interest, he may
extend any participant's service for a period not to exceed five years after
the mandatory retirement date of such officer or employee.
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"(7) This subsection shall become effective on the first day of the first
month which begins more than one year after the date of its enactment,
except that any officer or employee who, before such effective date, meets
the requirements for participation in the Foreign Service Retirement and
Disability System under paragraph (1) of this subsection may elect to
become a participant before the effective date of this subsection. Such officer
or employee shall become a participant on the first day of the second month
following the date of his application for earlier partici.pation. Any officer
or employee who becomes a participant in the system under the provisions of
paragraph (1) of this subsection, who is age fifty-seven or over on the
effective date of this subsection, may retire voluntarily at any time before
mandatory retirement under paragraph (5) o this subsection and receive
retirement benefits under section 821 of the Foreign Service Act of 1946,
as amended.
"(8) Any officer or employee uho is separated for cause while a par-
ticipant in the Fore' Service Retirement and Disability System pursuant
to this subsection, ~l be entitled to benefits in accordance with section
637 (b) and (d) of the Foreign Service Act of 1946, as amended. The pro-
visions of subsection (e) of this section shall apply to participants in lieu
of the provisions of sections 633 and 634 of the Foreign Service Act of
1946, as amended."
SEC. 17. Section 684 of the Foreign Assistance Act of 1961 is amended
by striking out subsection (f) and inserting in lieu thereof the following
new subsections.
"(f) The President shall transmit to the Speaker of the House of
Representatives and to the Committee on Foreign Relations of the Sen-
ate a comprehensive report showing, as of June 30 and December 31 of
each year, the status of each loan and each contract of guarantee or
insurance theretofore made under this Act, uith respect to uhich there
remains outstanding any unpaid obligation or potential liability; the
status of each sale of deense articles or defense services on credit terms,
and each contract of guarantee in connection with any such sale, there!o-
fore made under the Foreign Military Sales Act; with respect to which
there remains outstanding any unpaid obligation or potential liability;
the status of each sale of agriculture commodities on credit terms thereto-
fore made under the Agricultural Trade Development and Assistance Act
of 1954, with respect to which there remains outstanding any unpaid
obligation; and the status of each, transaction in which a loan, contract
of guarantee or insurance, or extension of credit (or participation therein)
was theretofore made under the Export-Import Bank Act of 1945, with
respect to which there remains outstanding any unpaid obligation or po-
tential liability. Such report shall include individually only any loan,
contract, sale, extension of credit, or other transaction listed in this sub-
section in excess of $1,000,000.
"(g) The President shall transmit to the Speaker of the House of
Representatives and to the Committee on Foreign Relations of the Senate,
not later than January 31 of each year, a comprehensive report, based
upon the latest data available, shovn'ng-
"(1) a summary of the worldwide dimensions of debt-servicing
problems among such countries, together with a detailed statement
of the debt-servicing problems of each such country;
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"(2) a summary of all forms of debt relief granted by the United
States with respect to suc countries, together with a detailed state-
ment of the specific debt relief granted with respect to each such
country and the purpose for which it was granted;
"(3) a summary of the worldwide effect of the debt relief granted
by the United States on the availability of funds, authority, or other
resources of the United States to make any such loan, sale, contract
of guarantee or insurance, or extension of credit, together with a
detailed statement of the effect of such debt relief with respect to
each such country; and
"(4) a summary of the net aid flow from the United States to such
countries, taking into consideration the debt relief granted by the
United States, together with a detailed analysis of such net aid flow
with respect to each such country."
SEC. 18. Section 637(a) of the Foreign Assistance Act of 1961 is
amended by striking out `for the fiscal year 1972, $50,000,000, and for
the fiscal year 1973, $50,000,000" and inserting in lieu thereof V or each
of the fiscal years 1974 and 1975, $45,000,000".
SEC. 19. Section 638 of the Foreign Assistance Act of 1961 is amended
by striking out "PEACE CORPS ASSISTANCE" and inserting in lieu thereof
`ExCLuTICNS".
AFRICAN SAHEL FAMINE AND DISASTER RELIEF AND
DEVELOPMENT PROGRAM
SEC. 20. Chapter 2 of part III of the Foreign Assistance Act of 1961
is amended by inserting after section' 639 the following new sections:
"SEC. 639A. FAMINE AND DISASTER RELIEF TO THE AFRICAN
SAHEL.-(a) The Congress affirms the response of the United States
Government in providing famine and disaster relief and related assistance
in connection with the drought in the Sahelian nations of Africa. The
President shall report to Congress as soon as possible on solutions to this
problem of famine and further propose how any of these solutions may be
carried out by multilateral organizations.
"(b) Notwithstanding any prohibitions or restrictions contained in this
or any other Act, there is authorized to be appropriated to the President,
in addition to funds otherwise available for such purposes, $25,000,000
to remain available until expended, for use by the President, under such
terms and conditions as he may determine, for emergency and recovery
needs, including drought, famine, and disaster relief, and rehabilitation
and related assistance, for the drought-stricken Sahelian nations of Africa.
"SEC. 639B. AFRICAN SAHEL DEVELOPMENT PROGRAM.-The Con-
gress supports the initiative of the United States Government in under-
taking consultations and planning with the countries concerned, with
other nations providing assistance, with the United Nations, and with
other concerned international and regional organizations, toward the
development and support of a comprehensive long-term African Sahel
development program."
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COORDINATION; SHIPPING DIFFERENTIAL
SEC. 21. Chapter 2 of part III of the Foreign Assistance Act of 1961
is amended by adding at the end thereof the following new sections:
"SEC. 640B. COORDINATION.---(a) The President shall establish a
system for coordination of United States policies and programs which
affect United States interests in the development of low-income countries.
To that end, the President shall establish a Development Coordination
Committee which shall advise him with respect to coordination of United
States policies and programs affecting the development of the developing
countries, including programs of bilateral and multilateral development
assistance. The Committee shall include the head of the agency primarily
responsible for administering part I, Chairman, and representatives of the
Departments of State, Treasury, Commerce, Agriculture, and Labor, the
Executive 01 `ice of the President, and other executive departments and
agencies, as the President shall designate.,(b) The President shall prescribe appropriate procedures to. assure
coordination among-
"(1) the various departments and agencies of the United States
Government having representatives in diplomatic missions abroad;
and
"(2) representatives of the United States Government in each
country, under the direction of the Chief of the United States
Diplomatic Mission.
The President shall keep the Congress advised of his actions under this
subsection.
"(c) Programs authorized by this Act shall be undertaken with the
foreign policy guidance of the Secretary of State.
"(d) The President shall report to the Congress during the first quarI`,er
of each calendar year on United States actions affecting the development
of the low--income countries and on the impact of those undertakings upon
the national income, employment, wages, and working conditions in the
United States.
"SEC. 6400. SHIPPING DIFFERENTIAL.-FOr the purpose of facili-
tating implementation of section 901(b) of the Merchant Marine Act,
1936 (46 U.S.C. 1241(b)), funds made available for the purposes of
chapter 1 of part I or for purposes of part V may be used to make grants
to recipients to pay all or any portion of such differential as is determined
by the Secretary of Commerce to exist between United States and foreign-
flag vessel charter or freight rates.. Grants made under this section shall
be paid with United States-owned foreign currencies wherever feasible."
SEC. 22. Section 644 of the Foreign Assistance Act of 1961 is amended
as follows:
(1) Subsection (g) is amended to read as follows:
"(g) Excess defense articles' means the quantity of defense articles
owned by the united States Government, and not procured in anticipation
of military assistance or sales requirements, or pursuant to a military
assistance or sales order, which is in excess of the Approved Force Ac-
quisition Objective and Approved Force Retention Stock of all Department
of Defense Components at the time such articles are dropped from in-
ventory by the supplying agency for delivery to countries or international
organizations under this Act."
(2) Subsection (i) is repealed.
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(3) Subsection (m) is amended to read as follows:
"(m) `Value' means-
"(1) with respect to an excess defense article, the actual value of
the article plus the gross cost incurred by the United States Govern-
ment in repairing, rehabilitating, or modifying the article, except
that for purposes of section 632(d) such actual value shall not be
taken into account;
"(2) with respect to a nonexcess defense article delivered from
inventory to foreign countries or international organizations under
this Act, the acquisition cost to the United States Government,
adjusted as appropriate for condition and market value;
"(3) with res ect to a nonexcess defense article delivered from new
procurement to JP
oreign countries or international organizations under
this Act, the contract or production costs of such article; and
"(4) with respect to a defense service, the cost to the United States
Government of such service."
SEC. 23. Section 657 of the Foreign Assistance Act of 1961 is amended
to read as follows:
"SEC. 657. ANNUAL FOREIGN ASSISTANCE REPORT.-(a) In order
that the Congress and the American people may be better and more cur-
rently informed regarding the volume and cost of assistance extended by
the United States Government to foreign countries and international or-
ganizations, and in order that the Congress and the American people
may be better informed regarding the sale of arms to foreign countries and
international organizations by private industry of the United States, not
later than December 31 of each year the President shall transmit to the
Congress an annual report, for the fiscal year ending prior to the fiscal
year in which the report is transmitted, showing-
"(1) the aggregate dollar value of all foreign assistance provided
by the United States Government by any means to ail foreign countries
and international organizations, and the aggregate dollar value of
such assistance by category provided by the United States Govern-
ment to each such country and organization, during that fiscal year;
"(2) the total amounts of foreign currency paid by each foreign
country or international organization to the United States Govern-
ment in such fiscal year, what each payment was made for, whether
any portion of such payment was returned by the United States
Government to the country or organization from which the payment
was obtained or whether any such portion was transferred by the
United States Government to another foreign country or international
organization, and, if so returned or transferred, the kind of assistance
obtained by that country or organization with those foreign currencies
and the dollar value of such kind of assistance;
"(3) the aggregate dollar value of all weapons, weapons systems,
munitions, aircraft, military boats, military vessels, and other imple-
ments of war, and the aggregate dollar value of each category of such
implements of war, exported under any export license, to all foreign
countries and international organizations, and to each such country
and organization, during that fiscal year;
"(4) all exports of significant defense articles on the United States
Munitions list to any foreign government, international organiza-
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tion, or other foreign recipient or purchaser, by the United States
under this Act or any other authority, or by any individual, corpora-
tion, partnership, or other association doing business in the United
States, including but not limited to, full information as to the particu-
lar defense articles so exported, the particular recipient or purchaser,
the terms of the export, including its selling price, if any, and such
other information as may be appropriate to enable the Congress to
evaluate the distribution of United States defense articles abroad; and
"(5) such other matters relating to foreign assistance provided by
the United States Government as the President considers appropriate,
including explanations of the information required under clauses
(1) through (4) of this subsection.
"(b) All information contained in any report transmitted under this
section shall be public information. However, in the case of any item of
information to be included in any such report that the President, on on
extraordinary basis, determines is clearly detrimental to the security of
the United States, he shall explain in a supplemental report why publica-
tion of each specific item would be detrimental to the security of the United
States. A supplemental report shall be transmitted to the Congress at the
same time that the report is transmitted.
"(c) If the Congress is not in session at the time a report or supple-
mental report 18 transmitted to the Congress, the Secretary of the Senate
and the Clerk of the House of Representatives shall accept the report or
supplemental report on behalf of their respective Houses of Congress and
present the report or supplemental report to the two Houses immediately
upon their convening.
"(d) For the purposes of this section--
"(1) foreign assistance' means any tangible or intangible item
provided b the United States Government under this or any other
law to a .foreign country or international organization, including,
but not limited to, any training, service, or technical advice, any
item of real, personal, or mixed property, any agricultural cori-
modity, United States dollars, and any currencies owned by 6e
United States Government of any foreign country; and
"(R~) `provided by the United States Government' includes, but
is not limited to, foreign assistance provided by means of gift, loan,
sale, credit, or guaranty."
SEC. 24. The Foreign Assistance Act of 1961 is amended by adding
at the end thereof the following new part:
"PART V
"SEC. 801. GENERAL AUTHORITY.--The President is authorized
to furnish, on such terms and conditions as he may determine, assist-
ance for relief and reconstruction of South Vietnam, Cambodia, and
Laos, inet:uding especially humanitarian assistance to refugees, civilian
war casualties, and other persons disadvantaged by hostilities or
conditions related to those hostilities in South Vietnam, Cambodia,
and Laos. No assistance shall be furnished under this section to South
Vietnam unless the President receives assurances satisfactory to him that
no assistance f urnished under this part, and no local currencies generated
as a result of assistance furnished under this part, will be used for support
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of police, or prison construction and administration, within South
Vietnam.
"SEC. 802. AUTHORIZATION.-There are authorized to be appropri-
ated to the President to carry out the purposes of this chapter, in addition
to funds otherwise available for such purposes, for the fiscal year 1974 not
to exceed $504,000,000, which amount is authorized to remain available
until expended.
"SEC. 803. ASSISTANCE TO SOUTH VIETNAMESE CHILDREN.-(a) It
is the sense of the Congress that inadequate provision has been made
(1) for the establishment, expansion, and improvement of day care
centers, orphanages, hostels, school feeding programs, health and wel-
fare programs, and training related to these programs which are designed
for the benefit of South Vietnamese children, disadvantaged by hostilities
in Vietnam or conditions related to those hostilities, and (2) for the adop-
tion by United States citizens of South Vietnamese children who are
orphaned or abandoned, or whose parents or sole surviving parent, as the
case may be, has irrevocabl relinquished all parental rights, particularly
children fathered by UnitedStates citizens.
"(b) The President is, therefore, authorized to provide assistance, on
terms and conditions he considers appropriate, for the purposes described
in clauses (1) and (2) of subsection ((a) of this section. Of the funds appro-
priated pursuant to section 802 for fiscal year 1974, $5,000,000, or its
equivalent in local currency, shall be available until expended solely to
carry out this section. Not more than 10 per centum of thefunds made available
to carry out this section may be expended for the purposes referred to in
clause (2) of subsection (a). Assistance provided under this section shall
be furnished, to the maximum extent practicable, under the auspices of and
by international agencies or private voluntary agencies.
"SEC. 804. CENTER FOR PLASTIC AND RECONSTRUCTIVE SURGERY
IN SAIGON.-Of the funds appropriated pursuant to section 802 for
the fiscal year 1974, not less than $712,000 shall be available solely for
furnishing assistance to the Center for Plastic and Reconstructive Surgery
in Saigon.
"SEC. 805. AUTHORITY. All references to part I, whether hereto-
fore or hereafter enacted, shall be deemed to be references also to this part
unless otherwise specifically provided. The authorities available to admin-
ister part I of this Act shall be available to administer programs authorized
in this part."
SEC. 25. The Foreign Military Sales Act is amended as follows:
(1) Section 1 is amended by adding at the end thereof the following new
paragraph:
"In order to reduce the role of the United States Government in the
furnishing of defense articles and defense services to foreign countries and
international organizations, and return such transactions to commercial
channels, the United States Government shall reduce its sales, credit sales,
and guaranties of such articles and defense services as soon as, and to the
maximum extent, practicable."
(2) Section 3 is amended-
(A) by striking out "and" at the end of paragraph (2) of sub-
section (a) and inserting be ore "unless" the following: "and not to
use or Permit the use of suc article for purposes other than those for
which furnished";
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(B) by redesignating paragraph (8) of subsection (a) as paragraph
(4) and inserting after paragraph (2) the following new paragraph:
"(3) the country or international organization shall have agreed
that it will maintain the security of such article and will provide
substantially the same degree of security protection afforded to such
article by the United States Government; and ";
(C) by inserting the following immediately before the last sentence
of subsection (a) :
"In considering a request for approval of any transfer of any
weapon, weapons system, munitions, aircraft, military boat, mVi-
tary vessel, or other implement of war to another country, the Presi-
dent shall not give his consent under paragraph (2) to the transfer
unless the United States itself would transfer the defense article
under consideration to that country, and prior to the date he intends
to give his consent to the transfer, the President notifies the Speaker
of the House of Representatives and the Committee on Foreign
Relations of the Senate in writing of each such intended consent,
the justification for giving such consent, the defense article for
which he intends to give his consent to be so transferred, and the
foreign country to which that defense article is to be transferred.
In addition, the President shall not give his consent under paragraph
(2) to the transfer of any significant defense articles on the United
States Munitions List unless the foreign country requesting consent
to transfer agrees to demilitarize such defense articles prior to
transfer, or the proposed recipient foreign country provides a com-
mitment in writing to the United States Government that it will not
transfer such defense articles, if not demilitarized, to any other
foreign country or person without first obtaining the consent of the
President."; and
(D) by adding at the end thereof the following new subsections:
"(c) Except as otherwise provided in subsection (d), any foreign
country which hereafter uses defense articles or defense services furnished
such country under this Act, in substantial violation of any provision of
this Act or any agreement entered into under this Act, shall be immediately
ineligible for f urther cash sales, credits, or guarantees.
"(d) No sophisticated weapons? including sophisticated jet aircraft or
spare parts and associated ground equipment or such aircraft, shall be
furnished under this or any other Act to any foreign country on or after
the date that the President determines that such country has violated any
agreement it has made in accordance with paragraph (2) of subsection (a)
of this section or section 506(a) of the Foreign Assistance Act of 1961 or
any other provision of law requiring similar agreements. Such country
shall remain ineligible in accordance with this subsection until such time
as the President determines that such violation has ceased, that the country
concerned has given assurances satisfactory to the President that such
violation will not reoccur, and that, if such violation involved the trans, fer
of sophisticated weapons without the consent of the President, such
weapons have been returned to the county concerned."
(3) Section 22 is amended to read as f ollows:
"SEC. 22. PROCUREMENT FOR CASH SALES.-(a) Except as other-
wise provided in this section, the President may, without requirement
for charge to any appropriation or contract authorization otherwise
provided, enter into contracts for the procurement of defense articles or
defense services for sale for United States dollars to any foreign country
or international organization if such country or international organization
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provides the United States Government with a dependable undertaking
(1) to pay the full amount of such contract which will assure the United
States Government against any loss on the contract, and (2) to make funds
available in such amounts and at such times as may be required to meet
the payments required by the contract, and any damages and costs that
may accrue from the cancellation of such contract, in advance of the time
such payments, damages, or costs are due.
"() The President may, when he determines it to be in the national
interest, accept a dependable undertaking of a foreign country or inter-
national organization with respect to any such sale, to make full pa ment
within 120 days after delivery of the defense articles or the rendering
of the defense services. Appropriations available to the Department of
Defense may be used to meet the payments required by the contracts
for the procurement of defense articles and defense services and shall be
reimbursed by the amounts subsequently received from the country or
international organization to whom articles or services are sold."
(4) In section 24(c)-
(A) strike out "pursuant to section 31" and insert in lieu thereof
"to carry out this Act"; and
(B) insert "principal amount of" immediately before the words
"contractual liability" wherever they appear.
(5) In section 81(a), strike out "$400,000,000 for the fiscal year 1972"
and insert in lieu thereof "$325,000,000 for fiscal year 1974".
(6) In section 31(b), strike out "(excluding credits covered by guaranties
issued pursuant to section 24(b), (and the face amount of guaranties
issued pursuant to sections 24(a) and (b) shall not exceed $550,000,000
for the fiscal year 1972, of which amount not less than $300,000,000
shall be available to Israel only" and insert in lieu thereof "and of the
principal amount of loans guaranteed pursuant to section 24(a) shall
not exceed $730,000,000 for the fiscal year 1974, of which amount not
less than $300,000,000 shall be available to Israel only".
(7) In section 33(a)-
(A) strike out "of cash sales pursuant to sections 21 and 22,";
(B) strike out "(excluding credits covered by guaranties issued
pursuant to section 24(b)), of the face amount of contracts of
guaranty issued pursuant to sections 24 (a) and (b)" and insert in
lieu thereof "of the principal amount of loans guaranteed pursuant
to section 24(a)"; and
(0) strike out "$100,000,000" and insert in lieu thereof "$150-
000,000".
(8) In section 33(b)-
(A) strike out "of cash sales pursuant to sections 21 and 22,"; and
(B) strike out "(excluding credits covered by guaranties issued
pursuant to section 24 (b)), of the face amount of contracts of guaranty
issued pursuant to sections 24 (a) and (b)" and insert in lieu thereof
"of the principal amount of loans guaranteed pursuant to section
24(a)".
(9) Section 33(c) is repealed.
(10) In section 36, strike out subsections (a) and (b).
(11) In section 37(b), insert after "indebtedness" the following:
"under section 24(b) (excluding such portion of the sales proceeds as
may be required at the time of disposition to be obligated as a reserve for
payment of claims under guaranties issued pursuant to section 24(b),
which sums are made available for such obligations)".
(12) Add at the end thereof the following new section:
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"SEC. 47. DEFINITIONS.-For purposes of this Act, the term-
"(1) `excess defense article' has the meaning provided by section 644(g)
of the Foreign Assistance Act of 1961; and
"(2) `value' means, in the case of an excess defense article, not lese
than the greater of-
"(A) the gross cost incurred by the United States Government in
repairing, rehabilitating, or modifying such article, plus the scrap
value; or
"(B) this market value, if ascertainable."
AMENDMENTS TO FOREIGN MILITARY SALES ACT AMENDMENTS OF 1871
SEC. 26. The Act entitled "An Act to amend the Foreign Military
Sales Act, and for other purposes", approved January 12, 1971 (84 Stan.
2058), is amended as follows:
(1) Section 8(a) is amended by inserting immediately before clause
(1) thejollowing: "(less amounts to be transferred under section 632(d)
of the Foreign Assistance Act of 1961)".
(2) Section 8(b) is amended-
(A) by striking out "The provisions" and inserting in lieu thereof
"In the case of excess defense articles which are generated abroad,
the provisions"; and
(B) by striking out "$185,000,000" and inserting in lieu thereof
"$150,000,000".
(3) Section 8(c) is amended to read as follows:
"(c) For purposes of this section, the term `value' has the same meaning
as given it in section 644(m) of the Foreign Assistance Act of 1961."
(4) Section 9 is repealed.
PUBLIC DISCLOSURE OF CERTAIN MUNITIONS CONTROL LICENSES
SEC. 27. Section 414 of the Mutual Security Act of 1954 is amended
by adding at the end thereof the following new subsection:
"(e) Licenses issued for the export of articles on the United States
Munitions List in excess of $100,000 shall be reported promptly to the
Committee on Foreign Relations of the Senate and the Committee on
Foreign Affairs of the House of Representatives, which report shall con-
tain-
"(1) the items to be exported under the license;
"(2) the quantity of each such item to be furnished;
"(3) the name and address of the consignee and of the ultimate
user of each such item; and
"(4) an injunction whenever a projriate, concerning the neces-
sity to protect the confidentiality of the information provided."
SEC. 28. Section 17 of the Asian Development Bank Act is amended by
striking out "$60,000,000 for fiscal year 1972 and $40,000,000 for fiscal
year 1973" and inserting in lieu thereof "$100,000,000".
ACCESS TO CERTAIN MILITARY BASES ABROAD
SEC. 29. None of the funds authorized to be appropriated by this Act
may be used to provide any kind of assistance to any foreign country in
which a military base is located if--
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(1) such base was constructed or is being maintained or operated
with funds furnished by the United States; and
(2) personnel of the United States carry out military operations
from such base;
unless and until the President has determined that the government of such
country has, consistent with security, authorized access, on a regular
basis, to bona fide news media correspondents of the United States to such
military base.
SEC. 30. No funds authorized or appropriated under this or any other
law may be expended to finance military or paramilitary operations by the
United States in or over Vietnam, Laos, or Cambodia.
SEC. 31. No ands authorized or a pro riated under any provision of
law shall be made available or tie purp se ofnancing directly or indirectly
a military or paramilitary combat operations by foreign forces in Lao,
Cambodia, North Vietnam, South Vietnam, or hailand unless (1) such
operations are coned by the orces of that government receiving such
funds within the borders of that country, or (2) specifically authorized by
law enacted after the date of enactment of this Act.
SEC. 32. It is the sense of Congress that the President should deny
any economic or military assistance to the government of any foreign
country which practices the internment or imprisonment of that country's
citizens for political purposes.
SEC. 33. There is authorized to be appropriated to the President for
fiscal year 1974 $1,000,000 to make grants, on such terms and conditions
as he may specify, to the Albert Schweitzer Hospital in Gabon.
SEC. 34. (a) The Congress declares that-
(1) the families of those one thousand three hundred individuals
missing in action during the Indochina conflict have suffered extraor-
dinary torment in ascertaining the full and complete information
about their loved ones who are formally classified as missing in
action;
(2) United States involvement in the Indochina conflict has come
to a negotiated end with the signing of the Vietnam Agreement in
Paris on January 27, 1973, and section 307 of the Second Supple-
mental Appropriations Act, 1973, requires that "None of the funds
herein appropriated under this Act may be expended to support
directly or indirectly combat activities in or over Cambodia, Laos,
North Vietnam, and South Vietnam or off the shores of Cambodia,
Laos, North Vietnam and South Vietnam by United States forces,
and after August 15, 1973, no other funds heretofore appropriated
under any other Act may be expended for such purpose.
(3) the question of the return of prisoners of war and accounting
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for individuals missing in action and dead in Laos is covered by
article 18 of the Protocol signed by representatives of the Lao Patriotic
Front (Pathet Lao) and the Royal Laotian Government in Vientiane
on September 14, 1978 (which. implements article 5 of the Agreement
signed by the Pathet Lao and that government in Vientiane on
February 21, 1973, requiring the release of all prisoners "regardless
of nationality" captured and held in .Laos), and paragraph C of such
article 18 provides that, within "15 to 30 days" from the date of the
signing of the Protocol, each side is to report the number of those
prisoners and individuals still held, with an indication of their
nationality and status, together with a list of names and any who died
in captivity,; and
(4) few of the United States men lost in Laos during the military
engagements in Indochina have been returned, and with knowledge
about many of these men not yet being fully disclosed, and the North
Vietnam cease-fire provisions calling for inspection of crash and
grave sites and for other forms of cooperation have not been fully
complied with.
(b) It is, therefore, the sense of the Congress that-
(1) the provisions for the release of prisoners and an accounting
of individuals missing and dead, as provided for in article 18 of
the Protocol signed on September 14, 1973, by the Pathet Lao
and the Royal Laotian Government, be adhered to in spirit and
in deed; and
(2) the faithful compliance with the spirit of the Laotian Agree-
ment and Protocol on the question of individuals missing in action
will encourage all parties in Indochina to cooperate in providirsg
complete information on all nationals of any nation who may be
captured or missing at any place in Indochina.
Sic. 86. It is the sense of the Congress that (1) the President should
request the Government of Chile to protect the human rights o all indivicd-
uals, Chilean and foreign, as provided in the Universal Declaration of
Human Rights, the Convention and Protocol Relating the Status of
Refugees, and other relevant international legal instruments guaranteeing
the granting of asylum, safe conduct, and the humane treatment or release
of prisoners; (2) the President should support international humanitarian
initiatives by the United Nations High Commissioner for Refugees and
the International Committee of the Red Cross to insure the protection and
safe conduct and resettlement of political refugees, the humane treatment of
political prisoners, and the full inspection of detention facilities under
international auspices; (8) the President should support and facilitate
efforts by voluntary agencies to meet emer~geney relief needs; and ()the
President should request of the Inter-American Commission on Human
Rights to undertake an immediate inquiry into recent events occurring in
Chile.
SEc. 86. (a) The President or his delegate shall seek, as soon as possible,
a revision of the Social Progress Trust Fund Agreement (dated June 19,
1961) between the United States and the Inter-American Development
Bank. Such revision should provide for the-
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(1) periodic transfer of unencumbered capital resources of such
trust fund, and of any future repayments or other accruals otherwise
payable to such trust fund, to the Inter-American Foundation, to be
administered by the Foundation for purposes of part IV of the
Foreign Assistance Act of 1969 (22 U.S.C. 290f and following);
(2) utilization of such unencumbered capital resources, future
repayments, and other accruals by the Inter American Development
Bank for purposes of sections 1 and 2 of the Latin American De-
velopment Act (22 U.S.C. 1942 and 1943) in such a way that the
resources received in the currencies of the more developed member
countries are utilized to the extent possible for the benefit of the
lesser developed member countries; or
(3) both the transfer described in paragraph (1) and the utilization
described in aragraph (2).
(b) Any transfier or utilization under this section shall be in such
proportions as may be agreed to between the United States and the Inter-
American Development Bank.
.ter under subsection (a) (1) shall be in the amounts, and
(c) Any trans
in available currencies, determined in consultation with the Inter American
Foundation, to be required for its program purposes.
(d) The revision of the Social Progress Trust Fund Agreement pursuant
to this section shall provide that the President or his delegate shall specify,
from time to time, after consultation with the Inter American Development
Bank, the particular currencies to be used in making the transfer or
utilization described in this section.
(e) Not later than January 1, 1974, the President shall report to
Congress on his action taken pursuant to this section.
PROHIBITION ON ASSISTANCE TO NORTH VIETNAM
SEC. 37. Notwithstanding any other provision of law, no funds au-
thorized by this Act shall be expended to aid or assist in the reconstruction
of the Democratic Republic of Vietnam (North Vietnam), unless by an
Act of Congress assistance to North Vietnam is specifically authorized.
REPORT CONCERNING CERTAIN USE OF MILITARY ASSISTANCE
IN AFRICA
SEC. 38. The President of the United States shall, as soon as practicable
following the date of the enactment of this Act, make a determination and
report to Congress with respect to the use, if any, by any non African
country in support of its military activities in its African territories of-
(1) assistance furnished under the Foreign Assistance Act of
1961 after the date of the enactment of this Act;
(P2) defense articles or services furnished after such date under
the Foreign Military Sales Act; or
(3) agricultural commodities furnished after such date under the
Agricultural Trade Development and Assistance Act of 1954.
WORLD FOOD SHORTAGES
SEC. 39. (a) It is the sense of the Congress that the United States
should participate fully in efforts to alleviate current and future food
shortages which threaten the world. To this end, the President shall-
(1) encourage, support, and expedite studies relating to the
long-range implications of the world food situation (including
studies of national and world production, distribution, and utili-
z t' n ricultural commodities and other foodstuis) and sup-
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port the organizing of a weld food conference under United 1Va-
tions auspices in 1974;
(2) request the member nations of the General Agreement on
Tariffs and Trade to explore the means for assuring equitable ac-
cess by all nations to national markets and mineral and agricul-
tural resources;
(3) consult and cooperate with appropriate international agen-
cies, such as the Food and Agriculture Organization of the United
Nations, in determining the need for, the feasibility of, and cost
on an equitably-shared basis of, establishing an international a-ys-
tem of strategic food reserves; and
(4) report 'his findings and recommendations to the Congress on
the implementation o, this section no later than December 31,
1974.
(b) It is further the sense of the Congress that-
(1) in making assessments which would affect or relate to the
level of domestic production, the Executive Branch should in-
clude in the estimates of overall utilization the expected demands
for humanitarian food assistance through such programs as are
carried out under the Agricultural Trade Development and .4s-
sistance Act of 1954 (Public Law 480) ; and
(2) legislation providing increased flexibility for responding to
emergency and humanitarian requirements for food assistance
should be considered as promptly as possible to the end that the
last sentence of section 401 of the Agricultural Trade Develop-
ment and Assistance Act of 1.954 (Public Law 480), may be
amended by striking the period and inserting in lieu thereof a
comma and the following: "unless the Secretary determines Mat
some part of the exportable supply should be used to carry out the
national interest and 'humanitarian objectives of this Act."
USE OF LOCAL CURRENCIES
SEC. 40. Effective July 1, 1974, no amount of any foreign currency
(including principal and interest from loan repayments which accrues
in connection with any sale for for'eign currency under any provision of
law may be used under any agreement entered into after the date of the
enactment of this Act, or any revision or extension entered into after such
date of any prior or subsequent agreement, to provide any assistance to any
foreign country to procure equipment, materials, facilities, or services for
the common defense, including internal security, unless such agreement` is
specifically authorized by legislation enacted after such date.
And the House agree to the same.
That the Senate recede from its disagreement to the amendment of
the House to the title of the Senate bill and agree to the same.
THOMAS E. MOROAN,
CLEMENT J. ZABLOCKI,
DANTE B. FASCELL,
W. S. MAILLIARD,
PETER H. B. FRELINOHUYSEN,
WM. BROOMFIELD,
Managers on the Part of the House,
11. IL HUMPHREY,
GEORGE D. AIKEN,
CLIFFORD P. CASE,
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JOINT EXPLANATORY STATEMENT OF THE
COMMITTEE OF CONFERENCE
The managers on the part of the House and the Senate at the con-
ference on the disagreeing votes of the two Houses on the amendments
of the House to the bill (S. 1443) to authorize the furnishing of defense
articles and services to foreign countries and international organiza-
tion, submit the following joint statement to the House and the Senate
in explanation of the effect of the action agreed upon by the managers
and recommended in the accompanying conference report :
The House struck out all of the Senate bill after the enacting clause
and inserted a substitute amendment. The House also amended the
title of the bill.
The committee of conference recommends a substitute for both the
Senate bill and the House amendment to the text of the Senate bill.
The committee of conference also recommends that the Senate recede
from its disagreement to the amendment of the House to the title of
the bill.
Except for clarifying, clerical, and necessary conforming changes,
the differences between the two Houses and the adjustments made in
the committe of conference are noted below :
The Senate passed two foreign aid authorization bills.
S. 1443 authorized $770,000,000 for grant military assistance, mili-
tary training, supporting assistance other than for Indochina, and
foreign military credit sales for fiscal year 1974.
S. 2335 authorized economic assistance of $1,218,222,000, plus
$6,500,000 in foreign currencies, for fiscal year 1974 and $812,722,000
for fiscal year 1975.
In each of the Senate bills the House struck out all after the enact-
ing clause and inserted a substitute amendment.
The substance of the House amendments to each bill was identical
and contained authorizations for economic assistance in the amount of
$1,610,868,000 for fiscal year 1974 and $821,068,000 for fiscal year 1975,
plus $7 million in foreign currencies for each of the fiscal years 1974
and 1975.
Each House amendment also provided an authorization of $1,155,-
000,000 for grant military assistance, military training, supporting
assistance other than for Indochina, and foreign military credit sales
for fiscal year 1974 only.
Neither of the Senate bills nor the House amendment contained
authorizations for military assistance for fiscal year 1975.
The committee of conference agreed to a single bill (S. 1443) con-
taining authorizations for economic and military assistance for
fiscal year 1974 of $2,392,234,000, which represents a reduction of
$373,634,000 in the House figure, an increase of $404,012,000 in the
Senate figure, and a reduction of $395,266,000 below the amount re-
quested by the Executive and authorizations for economic assistance
for fiscal 1975.
(25)
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26
The amounts recommended by the committee of conference earn-
pared to the amounts requested by the executive and recommended by
the House and Senate follow :
pn millions of dollarsi
Executive Conference
request Houser Senates agreem ant a
Economic assistance:
Indochina postwar reconstruction for South Vietnam,
Laos, and Camt,odia-__________________________ 632.0 632.0 376.0 504.000
International organizations_______________________ 124.8 127.8 127.822 12).800
Indus Basin grants--__ 15.0 15.0 14.0 14.500
Old development loan/gQrant categories:
Loans (inclucing Alliance for Progress)-------- 351.4 ------------------------------------------
Grants (Including Alliance for Progress)------- 251.8 ------------------------------------------
Population ------------------------------?-- (116.0) C) (I) (4)
New developman': assistance categories: s
food and nutrition_________________________ ------ 300.0 282.0 2K. 000
Population ptanning and health_____________________________ 150.0 141.0 140.000
Education and human resources ------------------------------ 90.0 94.0 911.000
Selected development problems ----------------------------- 60.0 47.0 53.000
Selected countries and organizations --------------------------- 50.0 28.0 39.000
Miscellaneous categories: 19.0 s 1!1.000
American schools and hospitals abroad ------------- 10.0 620.0 e
International narcotics control program ------------- 42.5 50.0 40.0 41.500
Contingency fund -------------------------------- 30.0 30.0 6 23.55 3). .934
Partners of the Alliance------------------------------------ _--- .
Administrative expen:ies (AID) ------------------------ 53.1 53.1 24.0 45.000
Arab refugees---:------------------------------------------------- 2.0 -------------- 1.000
African famine relief----------------------------------------------- 730.0----------- ------ 725.000
Albert Schweitzer Hospital ----------------------------- -------------------------- 1.0 1.000
Total economic assistance______________________
1,510.6
1,610.868
1, 21& 222
1,429,734
Military assistance:
Grant military assistance_____________
652.0
550.0
420.0
$512.500
Security supporting assistance (outside Indochina)
100.0
125.0
125.0
1125.0
0
Military credit sales--------------------------- _..
525.0
450.0
200.0
325.0
1
a
Military training ---------------------------------
(e)
30.0
25.0
(
)
Total military assistance -----------------------
1,277.0
1,155.0
770.0
962.5
Total economic and military assistance ------------
2,787.6
2, 765.868
1, 988.222
2, 352.234
7 Economic aid authorizations are for fiscal year 1915 also except for African famine relief, Indochina assistance, and
international organizations (open ended authorization for fiscal year 1975).
s The same amounts are authorized for fiscal year 1975 for all economic aid programs with the exception of: (1) the
international narcotics control program for which 330,500,000 is authorized for fiscal year 1975, and (2) American
schools and hospitals abroad, the Albert Schweitzer Hospital, and Indochina postwar reconstruction, for which funds are
authorized only for fiscal year 1974. The amounts for militaassistance are for fiscal year 1974 only.
a The same amounts are authorized for fiscal year 1.9757o r all economic aid programs with the exception of the Albert
Schweitzer Hospital, Indochina postwar reconstruction assistance, and African famine relief. For fiscal year 1975, the
amount authorized for international organizations is $150,000,000. The amounts authorized for military assistance are
for fiscal year 1974 only.
4 A separate appropriation of $116,000,000 was requested by the executive branch. The Senate earmarked $125,000,000
out of economic assistance funds for population programs in fiscal year 1974 and $150,000,000 in fiscal year 1975. The House
earmarked $t25,000,000 for each of fiscal years 1974 and 1975. The conferees approved $125,000,000 for fiscal year 1974
and $130,00 0,000 for fiscal year 1975.
s Not more than 50 percent of the amounts appropriated for these categories would be used for grants under
the Senate bill. In addition, repayments on outstanding foreign assistance loans would be available for new loans
in fiscal year 1974 under the House bill.
6In addition, e:rcesa foreign currencies are authorized ($6,500,000 in the Senate bill; $7,000,000 in the
House bill). The bill authorizes $6,500,000 in excess foreign currencies for each of the fiscal years 1914 and
1975.
7 To remain available until expended.
a $27,500,000 of this approved for military training. The Executive requested an open end authorization for this purpose
The Executive appropriations request was $33,000,C00.
I $50,000,000 earmarked for Israel.
10 A ceiling of $730,000,000 established, of which $300,000,000 earmarked for Israel.
CHANGE OF TITLE of ACT AND NAME OF AGENCY
The House amendment changed the name of the Foreign Assistance
Act to the Mutual Development and Coo eratlon..,ot and of the
Agency for `Internatioi: a'l Development to the Mutual Development
and Cooperation Agency.
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The Senate bill did not contain a comparable provision.
The House receded.
POLICY-DEVELOPMENT ASSISTANCE AUTHORIZATION
The committee of conference reconciled four differences between the
Senate bill and the House amendment that dealt with section 102 of
the Foreign Assistance Act relating to statement of policy.
Development of employment-intensive technologies
The Senate bill included a provision that the President should place
appropriate emphasis on a requirement that the "United States should
concentrate in particular on the development of employment-intensive
technologies suitable to the less developed countries."
The House amendment did not contain a comparable provision.
The Senate receded.
Multilateral approaches to development
The Senate bill included new language that urged a shift to multi-
lateral approaches to development and required a report from the
Secretary of State on consultations, negotiations, and recommenda-
tions regarding such a shift.
The House amendment included in its statement of policy a declara-
tion that U.S. development assistance should continue to be available
through bilateral channels until it is clear that multilateral channels
exist which can do the job with no loss of development momentum.
The House and Senate receded.
Role of U.S. private investment
The House amendment contained a statement that emphasized the
role of U.S. private investment to the maximum extent practicable in
economic and social development programs, specifying that arrange-
ments should be continually sought to provide stability and protection
for such investment.
The Senate bill did not contain a comparable provision.
The Senate receded with an amendment which deleted the require-
ment to continually seek arrangements for the protection of such
investment.
Coordination of U.S. development-related activities
The Senate bill provided for the coordination of all United States
development-related activities by the administering agency under the
policy guidance of the Secretary of State, and required the head of
the agency to advise the President of actions affecting development
and to inform the Congress about the progress of the less developed
countries.
The House amendment simply specified the Mutual Development
and Cooperation Agency as the agency responsible for the coordina-
tion, without spelling out any specific requirement to advise the
President or inform the Congress.
The Senate receded, with a technical amendment to substitute "the
agency primarily responsible for administering this part" for the
name of the agency.
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DEVELOPMENT ASSISTANCE
Food and nutrition
The Senate bill added a new section 103 to the Foreign Assistance Act
to provide development assistance for food and nutrition. It authorized
an appropriation of $282 million for each of the fiscal years 1974 and
1975 for this purpose.
The House amendment contained a similar provision that author-
ized an appropriation of $300 million for each of the fiscal years 1974
and 1975.
The committee of conference agreed to an authorization for each of
the fiscal years 1974 and 1975 in the amount of $291 million.
Population planning and health
The Senate bill added a new section 104 to the Foreign Assistance
Act that authorized an appropriation of $141 million for each of the
fiscal years 1974 and 1975 for population planning and health
assistance.
The House amendment authorized an appropriation of $150 million
for each of the fiscal years 1974 and 1975 for this purpose.
The committee of conference agreed to an authorization of $145 mil-
lion for each of the fiscal years 1.974 and 1975 for population planning
and health.
Education and human resources development
The Senate bill added a new section 105 to the Foreign Assistance
Act that authorized an appropriation of $94 million for each of the
fiscal years 1974 and 1975 for education and human resources
development.
The House amendment authorized an appropriation of $90 million
for each of the fiscal years 1914 and 1975 for these purposes.
The Senate, receded.
Selected development problems
The Senate, bill added a new section 106 to the Foreign Assistance
Act that authorized an appropriation of $47 million for each of the
fiscal years 1974 and 1975 for selected development problems.
The House amendment authorized an appropriation of $60 million
for each of the fiscal years 1974 and 1975 for this purpose.
The committee of conference agreed to an authorization of $53
million for each of the fiscal years 1974 and 1975.
Selected countries and organizations
The Senate bill added a new section 107 to the Foreign. Assistance
Act that authorized an appropriation of $28 million for each of the fis-
cal years 1974 and 1975 for development assistance to selected coma-
tries and organizations.
The House amendment authorized an appropriation of $50 million
for each of the, fiscal years for this purpose.
The committee of conference agreed to an authorization of $39 mil-
lion .for each of the fiscal years 1974 and 1975.
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TRANSFER OF FUNDS
The Senate bill authorized a limited transfer of funds from one
sector to another under new sections 103-107 of chapter I but prohib-
ited the use of sections 610 (a) and 614 (a) of the Foreign Assistance
Act with respect to transactions involving sector funds.
The House amendment provided similar authority for the transfer
of funds without the restrictive language.
The House receded with an amendment which permitted the trans-
fer of funds under the authority of sections 610(a) and 614(a) into
but not out of the funds for development assistance under chapter I.
COST SHARING AND FUNDING LIMITS
The Senate bill required the host country to participate in the financ-
ing of bilateral projects to the extent of at least 25 percent of the entire
costs, in any fiscal year, of the program, project, or activity. It also
provided that disbursements for a bilateral capital project under all
five functional categories of development assistance would be limited
to 36 consecutive months and that efforts should be made before,
during, and after the period of disbursement to find local and external
sources of funding for such project.
The House amendment did not contain a comparable provision.
The House receded with an amendment striking "in any fiscal year"
and making the limitation applicable to grant assistance only. Any
extension of the expenditure period beyond 36 months is subject to
further justification satisfactory to the Congress. It was also agreed
that the 36-month disbursement period will not begin until project
disbursements start in-country, excluding preliminary disbursements
for planning and preparation costs outside the recipient country.
FUNDING OF FOLLOW-ON PROJECTS
The Senate bill provided that no amounts available under sections
103 through 107 of the act could be obligated for any follow-on project
which links that project with any other project without further
congressional authorization.
The House did not contain a comparable provision.
The Senate receded.
USE OF RECEIPTS
The Senate bill limited the use to not more than one-third of prior
years loan reflows for any one of the functional categories of develop-
ment assistance in any fiscal year.
The House amendment dict not contain a comparable provision.
The Senate receded.
LIMITATION ON GRANTS
The Senate bill limited grants under the functional sectors to not
more than 50 percent of the funds appropriated each fiscal year for
sections 103-107.
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The House amendment did not contain a comparable provision.
The Senate receded.
DEVELOPMENT AND USE OF COOPERATIVES
The Senate bill provided that not less than $20 million made avail-
able during fiscal years 1974 and 1975 should be available only for
assistance in the development of cooperatives in less developed
countries.
The House amendment did not contain a comparable provision.
The House receded.
PROHIBITING POLICE TRAINING
The Senate bill prohibited police training and related programs for
any foreign country under any law except those relating to certain
crimes and administered by the Law Enforcement Assistance Admin-
istration, or with respect to any authority of the Drug Enforcement
Idministration, or the Federal Bureau of Investigation.
The House bill did not contain a comparable provision.
The House receded with an amendment applying the_prohibition_to
prQgr&m in a_foreign country &a tQ_funds made. available under the
Foreign Assistance Act. The prohibition is not applicable to any con-
tract entered-into prior to the date of enactment ~f this act-that pro-
rogram
vides personnel to conduct, or assist in conducting , any suc_p
but it prohibits extension of thoso -contracts. Furth ,r, it_is.the intent
of Congress that present programs being conducied by the Agency for
International Development in foreign countries should not be trans-
ferred..tosomeother - ag .ncy_ of the- Government in order to avoid this
prohibition. Me. new lan 'giagP ;is-meant to.phase out such. programs
financed hereunder and the objective should not be circumvented by
using other funds for this purpose.
INTEGRATION OF WOMEN INTO NATIONAL ECONOMIES
The Senate bill provided that development assistance programs
should be administered with particular attention to the integration of
women into the national economies of foreign countries.
The House amendment did not contain a comparable provision.
The House receded.
LIMITING USE OF FUNDS FOR ABORTIONS
The Senate bill prohibited the use of funds in any manner, directly
or indirectly, to pay for abortions, abortifacient drugs or devices, the
promotion of the practice of abortion, or support of research to de-
velop methods of abortion.
The House amendment did not contain a comparable provision.
The House receded with an amendment prohibiting the use of funds
to pay for the performance of abortions or to motivate or coerce any
person to practice abortion.
This provision is not intended to interfere with or curtail support Jlor
preventive maternal and child health and family planning services and
related research which are provided on a voluntary basis and in accord-
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ance with the prevailing local customs and medical practice and it is
not intended to apply to funds obligated prior to the date of enact-
ment of this bill.
DEVELOPMENT LOAN FUND, FISCAL PROVISIONS
The Senate bill repealed section 203 of the Foreign Assistance Act
which makes dollar receipts from previous loans available for new
loans for development assistance.
The (louse amendment extended the authority of section 203 to fiscal
years 1974 and 1975 and expanded the authority to include dollar
receipts from loans made prior to 1954.
The Senate receded with amendments that delayed the repeal of
section 203 until July 1, 1975, and provided that not more than 50
percent of the dollar receipts scheduled for repayment would be avail-
able. The committee of conference intended, based on AID'S con-
gressional presentation, that, under this limitation, approximately
$161.5 million and $184 million in new loan authority would become
available in fiscal years 1974 and 1975, respectively.
COUNTRY LIMITATION
The House amendment added the word "directly" to the forty-coun-
try limitation on technical assistance and development grants contained
in the act to make clear that the limitation applies only to bilateral
assistance furnished directly by the United States Government to
governments of less developed countries.
The Senate bill did not contain a comparable provision.
The Senate receded.
AMERICAN SCHOOLS AND HOSPITALS ABROAD
The Senate bill authorized an appropriation of $19 million and $6.5
million in excess currencies for fiscal year 1974 for assistance to Ameri-
can schools and hospitals abroad. It did not authorize assistance for
fiscal year 1975 but requested a study and report including recommen-
dations by the Secretary of State with respect to future assistance for
schools and hospitals outside the United States.
The House amendment authorized $20 million and $7 million in ex-
cess local currencies for each of the fiscal years 1974 and 1975. The
House amendment also contained a limitation on assistance in any fiscal
year to no more than four institutions in the same country, of which
not more than one shall be a university and not more than one a
hospital.
The committee of conference agreed to the authorization of an
appropriation of $19 million and $6.5 million in excess local curren-
cies for each of the fiscal years 1974 and 1975.
The House receded on its limitation but the committee of conference
agreed that the agency which administers this program should make
every effort to administer this program so as to achieve a more equitable
geographic distribution of assistance and to limit financial support
for operations and maintenance activities. The committee of conference
also agreed that the report and recommendation by the Secretary
of State should be made by June 30,1974.
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It is the intent of the committee of conference that the report slaall
include recommendations for equitable geographical distribution of
U.S. assistance and such possible solutions to the problems relating to
long term commitments to institutions as the Secretary of State deems
desirable.
HOUSING GUARANTIES
The Senate bill increased the worldwide ceiling for housing guar-
anties which may be outstanding at any one time from $205 million to
$349.9 million, and extended the program to June 30, 1975.
The House amendment increased the worldwide ceiling to $305
million, an increase of $100 million, and extended the program to
June 30, 1976.
The committee of conference accepted the House ceiling of $305 rail-
l ion and the Senate date of June 30, 1975.
OVERSEAS PRIVATE INVESTMENT CORPORATION
The House amendment extended the issuing authorities of the Over-
seas Private Investment Corporation for investment and guaranty
activities from June 30, 1974 to June 30, 1975. It also renewed the
agriculture credit and self-help community development pilot project
authority from June 30, 1973 to June 30, 1975.
The Senate bill did not contain any comparable provision.
The Senate receded with -an amendment extending the authorities
to December 31,1974.
PARTNERS OF THE ALLIANCE
The Senate bill authorized an appropriation of $900,000 for grants to
the National Association of the Partners of the Alliance for each of
the fiscal years 1974 and 1975.
.The House amendment authorized an appropriation of $968,000 :For
each of the fiscal years 1974 and 1975 for such grants.
The committee of conference agreed to an authorization of an appro-
priation of $934,000 for each of the fiscal years 1974 and 1975.
PROGRAMS RELATING TO POPULATION PROGRAMS
The Senate bill provided that not less than $125 million in fiscal
year 1974 and $150 million in fiscal year 1975 of part I funds shall
be available for programs relating to population growth.
The House amendment earmarked $125 million of part I funds
in each of the fiscal years 1974 and 1975 for this purpose.
The committee of conference agreed to earmark $125 million in fiscal
year 1974 and S130 million in fiscal year 1975 for programs relating to
population growth.
INDEPENDENT REVIEW GROUPS FOR INTERNATIONAL
ASSISTANCE INSTITUTIONS
The House amendment added a. new subsection which required the
President to actively seek the establishment of independent groups
within the United Nations and its affiliated organizations to review
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and evaluate their programs. It further required the President to
transmit to the Congress and the Comptroller General reports pre-
pared by such units.
The Senate bill did not contain a comparable provision.
The Senate receded.
INTERNATIONAL ORGANIZATIONS AND PROGRAMS AUTHORIZATION
The Senate bill authorized an appropriation of $127,822,000 for
each of the fiscal years 1974 and 1975.
The House amendment authorized an appropriation of $127,800,000
for fiscal year 1974 and "such sums as may be necessary" for fiscal year
1975.
The committee of conference agreed to $127,800,000 for fiscal year
1974 and $150 million for fiscal year 1975.
INDUS BASIN AUTHORIZATION
The Senate bill authorized an appropriation of $14 million for each
of the fiscal years 1974 and 1975 for grants for the Indus Basin
development.
The House amendment authorized an appropriation of $15 million
for each of the two fiscal years.
The committee of conference agreed to an authorization of an appro-
priation of $14,500,000 for each of the fiscal years 1974 and 1975.
UNICEF CONTRIBUTION
The House amendment earmarked $18 million of international
organizations funds for each of fiscal years 1974 and 1975 for contribu-
tions to the United Nations Children's Fund (UNICEF).
The Senate bill did not contain a comparable provision.
The Senate receded.
ARAB REFUGEE TRAINING
The House amendment authorized an appropriation of $2 million
for each of the fiscal years 1974 and 1975 for contributions to the
United Nations Relief and Works Agency for technical and vocational
training of Arab refugees.
The Senate bill did not contain a comparable provision.
The Senate receded.
CONTINGENCY FUND AND DISASTER RELIEF AUTHORITY
The Senate bill authorized an appropriation of $23.5 million for
each of the fiscal years 1974 and 1975 for assistance primarily for
disaster relief purposes.
The House amendment authorized an appropriation of $30 million
for each of the fiscal years 1974 and 1975 for contingencies and author-
ized such amounts as may be required from time to time to provide
extraordinary disaster relief.
The committee of conference accepted the House authorization of
an appropriation of $30 million for each of the fiscal years 1974 and
1975, and accepted the purpose language of the Senate 'bill.
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COUNTRY NARCOTICS CONTROL PERFORMANCE
The Senate bill amended the Act to require the President to crake
an affirmative finding, to be transmitted to the Congress, that a country
has taken adequate steps to control the production, distribution, trans-
portation, and manufacture of opium and its derivatives. The Senate
bill further required the President to suspend all aid, except narcotics
control programs, to any country if the Congress passed a concurrent
resolution rejecting the findings.
The House amendment did not contain a comparable provision.
The Senate receded.
REPORTS TO CONGRESS ON NARCOTICS CONTROL PROGRAM
The House amendment added a new requirement for quarterly re-
ports to Congress on the programing and obligation of foreign assist-
ance funds for narcotics control programs, and semiannual reports
on the activities and operations carried out under this program.
The Senate bill did not contain a comparable provision.
The Senate receded.
INTERNATIONAL NARCOTICS CONTROL AUTIIORIZATION
The Senate bill authorized an appropriation of $40 million for fiscal
year 1974 and $30,500,000 for fiscal year 1975 for the international
narcotics control program.
The House amendment authorized an appropriation of $50 million
i for each of fiscal years 1974 and 1975.
The committee of conference agreed to the authorization of an
,appropriation of $42,500,000 for each of the fiscal years 1974 and
1975 for this purpose.
EC
CONOMIC CONOMIC EXPANSION
The. House amendment added a new chapter 10 authorizing the
use of $2 million of part I funds for each of the fiscal years 1974 sand
1975 for cooperative economic expansion.
The Senate bill did not contain a comparable provision.
The House receded.
STATEMENT OF POLICY-MILITARY ASSISTANCE
The Senate bill repealed sections 501 and 502 of the Foreign A.ssi.st-
ance Act., relating to policy and purposes for which military assistance
can be furnished.
The House amendment did not contain comparable provisions.
The Senate receded.
EXCESS ThIFF,NSE ARTICLES
The Senate bill provided that, excess defense articles should be f,.rr-
uished whenever possible in preference to the procurement of new
items.
The House amendment did not contain a comparable provision.
The House receded.
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MILITARY ASSISTANCE-GENERAL AUTHORITY
The Senate bill repealed section 503 relating to general authority
and provided general authority to furnish grant military assistance
to any foreign country otherwise eligible to receive assistance. The
Senate language eliminated the requirement that the aid-receiving
country be "friendly," as well as the President's authority to furnish
military assistance to international organizations, and to loan defense
articles and defense services. It also struck out the authority in section
503(b) to make financial contributions to multilateral programs to
acquire or construct facilities for collective defense and in section
503(c) to provide financial assistance incidental to the U.S. Govern-
ment's participation in regional or collective defense organizations.
The House amendment did not contain a comparable provision.
The Senate receded with an amendment which authorized the loan
of defense articles and defense services but specified conditions under
which loans could be made and provided that "out of pocket" expenses
incidental to making the loan and the cost of "depreciation" shall be
charged to the appropriation for military assistance for each fiscal
year or part thereof that the item is on loan.
It is the intention of the committee of conference that the provi-
sions of this section shall not apply when short term loans are made in
connection with disaster relief efforts in response to earthquakes,
floods, or other natural disasters.
The House receded with respect to the repeal of subsections (b) and
(e) of section 503.
MILITARY ASSISTANCE AUTHORIZATION
The Senate bill repealed section 504 (a) of the Foreign Assistance
Act relating to authorization for military assistance, and provided
separate authorizations for eight countries totaling $270 million. It
also authorized up to $25 million of the funds to be used to furnish
excess defense articles to any foreign country or international organi-
zation not specifically identified. The Senate bill further provided a
separate authorization for such sums as may be necessary, as well as
a special drawdown authority subject to future reimbursement, for
furnishing defense articles to South Vietnam and Laos, and author-
ized $150 million to be appropriated for military assistance to
Cambodia.
The House amendment provided an authorization of an appropria-
tion of $550 million for fiscal year 1974.
The Senate receded from its provisions and the committee of con-
ference agreed to an authorization of $512.5 million, including military
training, for fiscal year 1974. The number of countries eligible to re-
ceive military grant assistance, other than training in the United
States, was reduced from forty to thirty-one.
SOPHISTICATED WEAPONS
The Senate bill repealed the proviso clause and subsection (b) of
section 504 of the Foreign Assistance Act but included a similar provi-
sion which prohibited the furnishing by grant, credit sale, or guaranty
of sophisticated weapons systems to underdeveloped countries unless
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the President determines that furnishing such weapons systems is im-
portant to United States national security.
The House amendment did not contain any comparable provisions.
The committee of conference agreed to retain existing law.
CONDITIONS or ELIGIBILITY
The Senate bill repealed section 505 of the Foreign Assistance Act
relating to conditions of eligibility but provided similar conditions of
eligibility with one new requirement. The new eligibility condition
required that funds received by a foreign country in disposing of U.S.-
furnished weapons should be. paid to the United States Government
for use in meeting its local currency expenses, including international
educational and cultural exchange activities.
The House amendment did not contain a comparable provision.
The Senate receded on the repeal of section 505 and the Rouse
accepted. the additional condition of eligibility beginning July 1, 1974.
TRANSFI R OF DEFENSE ARTICLES TO THIRD COUNTRIES
The Senate bill contained a provision relating to conditions of eligi-
Ibility that would require Presidential approval for the transfer of
IU.S.-furnished defense articles from one country to another under
specified conditions. This provision was similar to the provisions of
.section A, Foreign Military Sales Act Amendments, 1971, which the
.Senate. bill repealed.
The House amendment did not contain a comparable provision.
The committee of conference a-reed to include a similar provision in
`both section 505 of the Foreign Xssistance Act relating to grant mili-
tary assistance and section 3 of the Foreign Military Sales Act, relat-
ing to the sale of defense articles.
SPECIAL DRAWDOWN AITTIIORITY
The, House amendment contained a provision which renewed the
President's special authority to draw down defense articles from the
stocks of the Department of Defense and defense. services up to $300
million in fiscal year 1974 when he determines it to be vital to the
security of the United States, subject to subsequent reimbursement
from military assistance program funds.
The Senate bill did not contain a, comparable provision.
The Senate receded with an amendment authorizing a draw down
ceiling of $250 million. The drawdown authority may be used when
it is in the security interests of the United States. This authority is not
to be used to supplement MAP funds routinely to meet foreseen, non-
emergency requirements for military assistance.
It is the intent, of the committee of conference that up to $200 million
of the emergency military assistance requirements for Cambodia, be
furnished. Pursuant to the authority contained in this section.
RESTRICTIONS ON MILITARY All) TO LATIN AmER1CA AND AFRICA.
The. Senate bill repealed sections 507 and 508 of the Foreign Assist-
ance Act relating to restrictions on military assistance for Latin
America and Africa.
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The House amendment did not contain a comparable provision.
The House receded. A ceiling on the amount of military assistance
and sales that can be made or furnished to Latin America and Africa
in any fiscal year is provided in section 33 of the Foreign Military
Sales Act, as amended.
CERTIFICATION OF RECIPIENTS CAPABILITY
The Senate bill repealed section 509 of the Foreign Assistance Act
which requires the chief of the appropriate military assistance advisory
group representing the United States to certify in writing that the
recipient country has the capability to effectively utilize defense
articles furnished by the United States.
i
n
i
bl
o
.
s
e prov
The House amendment did not contain a compara
The House receded.
RESTRICTIONS ON TRAINING FOREIGN MILITARY STUDENTS
The Senate bill repealed section 510 of the Foreign Assistance Act
but placed an identical limit on the number of foreign military stu-
dents to be trained in the United States in any fiscal year.
The House amendment repealed section 510.
The committee of conference agreed to retain section 510 of the law.
MILITARY ASSISTANCE ADVISORY GROUPS AND MISSIONS
The Senate bill repealed section 512 of the Foreign Assistance Act
which required certain reductions in military assistance advisory
groups and military groups by September 30, 1972.
The House amendment did not contain a comparable provision.
The House receded.
MILITARY ASSISTANCE AUTHORIZATION FOR LAOS
The Senate bill contained a provision which required the transfer
of authorizations for military assistance and sales programs for Laos
and South Vietnam from the Department of Defense to the Foreign
Assistance and Military Sales Acts effective June 30,1973.
The House amendment provided for the transfer of such military
assistance and sales authorizations effective June 30, 1974.
The committee of conference agreed to transfer military assistance
and sales authorizations for Laos effective June 30, 1974, with the
understanding that funds obligated for assistance to Laos prior to the
date specified in section 513 which are in the "pipeline" at that time
may be provided regardless of when the defense articles are actually
delivered or the defense services actually rendered.
SPECIAL FOREIGN CURRENCY ACCOUNTS
The Senate bill repealed section 514 of the Foreign Assistance Act
but included a similar provision which required the establishment of
special foreign currency accounts in which any government receiv-
ing grant military defense articles, including'excess defense articles,
and military training would deposit local currencies to meet official
costs of the United States Government in the recipient country.
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TI)e House amendment repealed section 514 of the Foreign Assist-
ance A of.
The Senate receded.
It, is the intent of the committee of conference that billings for
foreign currency payments under section 514 shall end with deliveries
for the quarter ending December 31, 1973.
L[QUIDATION ACCOUNT FOR Pm-FISCAL YEAR 1969 FOREIGN MILITARY
SA _,ES CREDITS
The Senate bill repealed section 524 of the Foreign Assistance Act
which established a special liquidation account in the Treasury for pre-
fiscal year 1969 sales credits and guaranties.
The House amendment did not contain a comparable provision.
The Senate receded.
INTE`IrNATIONAT, MTT,I'rA RS' EDUCATION AND TR ATNTNG
The Senate bill separated grant military training from the material
assistance program and authorized the appropriation of $25 million to
the Secretary of State for military training in fiscal year 1974.
The House amendment also provided under separate authority $30
million for an international military education and training program
for fiscal year 1974.
The committee of conference agreed to retain the grant military
training program as an integral part of the military assistance pro-
gram and added $27,500,000 to the authorization for grant military
assistance in. section 504(a) for fiscal year 1974. The House receded on
numerous technical conforming amendments contained in the Huse
amendment which would have been necessary separately to authorize
funds for military education and training.
CAMBODIA. CEILING WAIVER
The Senate bill included a provision as a technical amendment to
perfect the bill in such a way that the Cambodia ceiling of s
655 (c) would not apply to assistance furnished under the t. ectron
The House amendment did not contain a comparable provision.
The Mouse ,.,
d
a
ce
e
P:CURITY SUPPORTI mi ASSISTANCE
The Senate bill repealed the provisions of existing law relating to
security supporting assistance., but included similar authority to I'ur-
iTish security supporting assistance and authorized an appropria-
tion of :125 million for fiscal year 11974, of which $65 million was to be
available solely forJordan and $50 million solely for Israel.
The House amendment authorized $125 million for security sup-
porting assistance, of which not less than $50 million was to be avail-
able solely for Israel.
The committee of conference agreed to retain the general authority
language of existing law for security supporting assistance and to
repeal section ,33 relating to United States Refund Claims.
The Senate. receded and accepted the House authorization and ear-
marking provision.
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SMALL BUSINESS
The Senate bill contained a provision rewriting section 602 of the
Foreign Assistance Act, which required that insofar as practicable
the President should assist American small business to participate
equitably in the furnishing of commodities, defense articles, and serv-
ices (including defense services) financed with funds made available
for grant military assistance.
The House amendment did not contain a comparable provision.
The committee of conference agreed to retain existing law.
SKIPPING ON U.S. VESSELS
The Senate bill contained a provision similar to section 603 of the
Foreign Assistance Act, which provided that ocean transportation
between foreign countries of commodities and defense articles
purchased with foreign currencies made available or derived from
appropriations under this act should not be governed by the provisions
of section 901(b) of the Merchant Marine Act of 1936, or any other law
relating to the ocean transportation of commodities on U.S.-flag
vessels.
The House amendment did not contain a comparable provision.
The committee of conference agreed to retain existing law.
PROCUREMENT
The Senate bill contained a provision similar to section 604 of the
Foreign Assistance Act, relating to procurement of commodities out-
side the United States.
The House amendment did not contain a comparable provision.
The committee of conference agreed to retain existing law.
TERMINATION OF ASSISTANCE
The Senate bill provided that military assistance and sales could,
if not sooner terminated by the President, be terminated by concurrent
resolution of the Congress.
The House amendment retained existing law which permits the
termination by concurrent resolution of assistance furnished under the
Foreign Assistance Act and allows funds to remain available for 12
months from the termination date for the necessary expenses of wind-
ing up programs.
The Senate receded with an amendment reducing the windup period
from 12 to 8 months.
EXPROPRIATION POLICY
The Senate bill modified section 620(e) (1) of the Foreign Assist-
ance Act-the Hickenlooper amendment-by permitting the President
to waive its sanctions when he determined that such a waiver was
"important to the national interests of the United States." Any waiver
was to be reported promptly to the Congress.
The House amendment deleted section 620(e) (1) and added a
new section requiring termination of assistance to any country
which, after the enactment of this section, expropriated property
that was at least 50 percent beneficially owned by U.S. citizens, unless
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one of three conditions was met : (1) prompt, adequate, and effective
compensation had been paid; (2) the dispute was submitted to arbitra-
tion under the rules of the Convention for the Settlement of Investment
Disputes; or (3) good faith negotiations were in progress aimed at pro-
viding prompt, adequate, and ei#ective compensation. The amendment
did not permit the President to waive its application in the national
interest.
The House receded.
ASSISTANCE TO COUNTRIES WIIICi[ TRADE `VITA: NORTH VIETNAM
The House amendment contained a provision which permitted the
President to waive the prohibition against assistance to countries trad-
ing with North Vietnam or permit vessels or aircraft under their
registry to transport goods to North Vietnam. Each waiver required
a Presidential finding that it was in the national interest. Each finding
had to be reported to the Congress, together with assurances that North
Vietnam was cooperating fully in providing for a full accounting of
any remaining prisoners of war and all missing in action.
The Senate bill did not contain a comparable provision.
The House receded.
A= r TO GREECE
The Senate bill contained a provision that would terminate all mili-
tary assistance, sales, credit sales, or guaranties to Greece pending com-
pletion of a. Presidential study and report which concluded that the
Government of Greece is in full compliance with its political and mili-
tary obligations under the North Atlantic Treaty.
The House amendment did not contain a comparable provision.
The Senate receded.
COORDINATION wITII FOREIGN POLICY
The Senate bill contained a provision similar to section 622(b) of
the Foreign Assistance Act emphasizing the responsibility of ' the
Chief of each diplomatic mission to submit recommendations concern-
ing security assistance from personnel in his mission.
The House amendment did not contain a comparable provision.
The committee of conference agreed to retain existing law.
STATUTORY FUNCTIONS OF THE SECRETARY OF STATE
The Senate bill changed the responsibility of the Secretary of
State for the "general direction" of military assistance activities, as
currently set forth in section 622(c) of the Foreign Assistance Act,
to responsibility for "direction" of those activities.
The House amendment did not. contain a comparable provision.
The Senate receded.
ACCESS TO AND FAILURE To PROVIDE INFORMATION
The Senate bill included a provision to assure the General Account-
ing Office or any committee of Congress access to information in the
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possession of any agency carrying out provisions of law with funds
made available under the Foreign Assistance Act. After the expiration
of any 35-day period following a written request by the General
Accounting Office or a congressional committee for any document,
paper, communication, audit, review, finding, recommendation, report,
or other material in the custody of such agency, none of the funds
available to such agency could be obligated unless and until the
request had been honored. Communications between the President and
any officer or employee of the agencies concerned were expressly
excluded from the operations of this section.
The Senate bill also amended section 634 of the Foreign Assistance
Act and provided for a similar exclusion of Presidential communica-
tions.
The House amendment did not contain a comparable provision.
The Senate receded.
1VlII P A$Y,, 45s15TANCE _1NTQ4114T QW-
The Senate bill contained a provision requiring that there be made
public that portion of any record showing the name of any recipient
of military assistance and the amount of such assistance intended to
be provided or the amount that has been provided by the United States.
The House amendment did not contain a comparable provision.
T S na re sled.
The committee of conference agreed that the provisions of section
634(b) of the Foreign Assistance Act, requiring the President to make
public all information concerning operations under the Act, should be
cona?r1md as calling for full public disclosure of miliry assistance
infor to ~,,o , except during periods of critical international develop-
ments when classifying such data is in the national security interest.
Iii ay.case, such information should be, f ully ayalabl.e to appropriate
congressional committees.
REPO t a .. ~ , >_ .I DJ311 t1TION
The House amendment repealed section 634 (f) of the Foreign
Assistance Act and replaced it with two new subsections. New sub-
section (f) required the submission of semiannual reports on the status
of each outstanding loan, contract of guaranty or insurance, credit
sale of defense articles, defense services, or agricultural commodities,
and each Export-Import Bank loan, guaranty, or insurance. Only
transactions in excess of $1 million would be reported individually.
New subsection (g) required annual reports showing the debt-
servicing problems of foreign countries, debt relief granted by the
United States, and the consequences thereof.
The Senate bill repealed section 634(f) of the law.
The Senate receded.
The committee of conference understands that a delay of 90 to 180
days may occur in providing the first semiannual report under the new
subsection (f) ; however, all subsequent reports should be forwarded
as promptly as possible but no later than 60 days after the report
is due.
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ADMINIs'rItATIVE EXPENSES
The Senate bill authorized an appropriation of $24 million for
administrative expenses for each of the fiscal years 1974 and 1975.
The House amendment authorized in appropriation of $53,100,000
for each of the fiscal years 1974 and 1975 for such expenses.
The. committee of conference agreed to an authorization of an appro-
priation of $45 million for each of the fiscal years 1974 and 1975, with
the understanding that program funds available under part I and part
V may be used to defray additional administrative expenses up to the
level provided in the House amendment.
PEACE CORPS ASSISTANCE
The Senate bill amended section 638 of the Foreign Assistance Act
by changing its title from "Peace Corps Assistance" to "Exclusions".
The House amendment did not contain a comparable provision.
The House receded to this technical amendment.
The House amendment contained a provision which would have
amended section 639 of the Foreign Assistance Act to permit the fur-
nishing of disaster relief assistance notwithstanding any provision of
law.
The Senate bill did not contain a comparable provision.
The House receded.
The House amendment contained an authorization of an appropria-
tion of $30 million for relief and rehabilitation of African Sahel and
gave congressional endorsement for Ion-term planning for the pres-
ervation and development of the Sahel region in cooperation with the
United Nations and other international and regional organizations.
The Senate bill contained a provision which asked the President
to consult with international organizations on how to solve the West
African famine problem, but did not authorize any funds.
The 4nate receded with an amendment to authorize an appropria-
tion of $25 million for these purposes.
The. Senate bill amended the Foreign Assistance Act by adding a
new section providing for coordination of United States development
policies and programs. It provided for the establishment of a Develop-
ment Coordination Committee? named members thereof by their posi-
tions in the government, required the Chief of the U.S. mission in a
country to be the development coordinator, and required reports to
the Congress and the President by both the Committee and the country
coordinator.
The House amendment contained a comparable provision which
named as members of the Committee representatives of designated
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agencies and required the President to develop appropriate procedures
for coordinating overseas activities and to report to Congress.
The Senate receded with an amendment that the President prescribe
appropriate procedures to assure coordination among both (1) depart-
ments and agencies of the U.S. having representatives in diplomatic
missions abroad, and (2) U.S. representatives in each country under
the direction of the Chief of the U.S. diplomatic mission.
SHIPPING DIFFERENTIAL
The House amendment provided for the payment of the differential
in shipping costs between U.S.- and foreign-flag vessels.
The Senate bill did not contain a comparable provision.
The Senate receded.
DEFINITION OF ExcEss DEFENSE ARTICLES
fined excess defense articles in such a way as to
d
bill
e
re
The Senate
restrict them to those items which are excess to the needs of the Depart-
ment of Defense for other than military assistance purposes, thereby
transferring items in "long supply" from the category of excess de-
fense articles to the category of nonexcess defense articles.
The House amendment did not contain a comparable provision. 1k
The House receded.
The purpose of the new definition is to require that a defense article
must not be treated as "excess" for purposes of the Foreign Assistance
Act of 1961 or the Foreign Military Sales Act unless it has been
screened against the requirements of all the military departments and
Defense agencies, thus correcting a problem cited in a recent study
L the General Accounting Office of the use of "excess" defense arti-
in the military assistance program. The Department of Defense
states that the current administrative practice is consistent with the
new definition.
DEFINITION OF VALUE
The Senate bill defined the "value" of excess defense articles as "ac-
tual value" but not less than one-third of acquisition cost. It also defined.
the "value" of nonexcess defense articles and defense services to include
"a proportional share of the administrative expenses incurred by the
United States Government in supplying" such articles and services,
except that personnel pay and allowances would be excluded from the
computation of "administrative expenses" for this purpose as it relates
to military assistance (excluding grant military training).
The House amendment did not contain a comparable provision.
The committee of conference agreed that "value" means (1) in the
case of excess defense articles, the actual value of the article plus the
gross cost incurred by the United States Government in repairing,
rehabilitating, or modifying the article, except that only such gross
costs shall be taken into consideration for purposes of reimbursement
to the supplying agency ;(2) with respect to nonexcess defense arti-
cles delivered from inventory, the acquisition cost to the United States
Government adjusted as appropriate for condition and market value;
3( with respect to nonexcess defense articles delivered from new pro-
curement, the contract or production costs ; and 4 with respect to
a defense service, the cost, to the United States o such service.
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I'RESInENTIAT, FINDINGS AND DETF,RMINATTONS
The Senate bill repealed section 654 of the Foreign Assistance Act,
relating to Presidential findings and determinations, and included
language similar in purpose.
The House amendment did not contain a comparable provision.
The Senate receded.
l rsE: OF U.S. ARMED FORCES
The Senate bill rewrote section 650 of the Foreign Assistance Act
which provides that the furnishing of economic, military, or other
assistance under the act shall not be construed as a commitment to use
Armed Forces of the United States for the defense of any foreign
country.
The House amendment did not contain a comparable provision.
The Senate receded and existing law, containing a similar provision,
is retained.
ANNUAL FORETON ASSISTANCE REPORT
The Senate bill repealed section 657 of the Foreign Assistance Act
and included language requiring essentially the same information to
be submitted annually to the Congress, together with data on all ex-
ports of significant defense articles on the United States munitions list.
The: House amendment did not contain a comparable provision.
The House receded.
QUARTERLY REPORTS
'I`he Senate bill contained a provision requiring the submission of
quarterly reports on the sale or guaranty of defense articles and
>ervices, grant of excess defense articles, defense articles and de-
fense r;ervi es, and. the number of ITS. Government personnel dethliled
to military assistance advisory groups or organizations.
The House amendment did not contain a comparable provision,
The Senate receded.
SSPECI:\I. REPORT ON VIAP AGREEMENTS
The Senate bill contained a provision calling for a report from the
President, by January .31, 1974, listing all military assistance agree-
ments entered into prior to that date and recommending which should
be continued.
The ITouse amendment did not; contain a comparable provision.
The Senate receded.
~NNUAT NATO REPORT
The House amendment contained a provision requiring the Secre-
taries of State and Defense to report annually on or before January 15
to the Speaker of the House and to the Senate Committees on Ap-
propriations, Armed Services, and Foreign Relations on the direct,
indirect, and unallocated costs to the United States of its partic;pa-
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tion in NATO in the immediately prior fiscal year, in the current
fiscal year (estimated), and in the budget fiscal year (budget request).
The Senate bill did not contain a comparable provision.
The House receded.
INDOCHINA POSTWAR RECONSTRUCTION
The Senate bill amended the Foreign Assistance Act by adding at
the end thereof a new part V, authorizing an appropriation of $376
million for fiscal year 1974 for postwar relief, rehabilitation, and re-
construction in South Vietnam, Cambodia, and Laos, of which not less
than $10 million was to support humanitarian programs of the Indo-
china Operations Group of the International Red Cross in South Viet-
nam, Cambodia, and Laos.
The House amendment contained a comparable provision, author-
izing an appropriation of $632 million for fiscal year 1974 and provid-
ing that no funds could be used for police support or prison construc-
tion and administration within South Vietnam.
The committee of conference agreed to a $504 million authorization
for the fiscal year 1974. The House receded on its statement of policy
and to lea on the earmarking of funds for the Indochina
Operations Group and orith.Qhii?t~A.ct~ tzse._,of,,,funds
polic,s4tpport or prison construction and administration within South
Vietnam.
REDUCTION IN GOVERNMENT PARTICIPATION
The Senate bill contained a provision calling for a reduction in
the role of the United States Government in the furnishing or sale
of defense articles and defense services to foreign countries and in-
ternational organizations by reducing its sales, credit sales, and guar-
anty of such articles and defense services to the maximum extent
practicable.
The House amendment did not contain a comparable provision.
The House receded.
ILLEGAL SEIZURE OF U.S. PRIVATE FISHING VESSELS
The Senate bill repealed section 3 of the Foreign Military Sales
Act which prohibits the sale (cash, credits or guarantees) to any
country within a year's period after such country seizes, or takes into
custody, or fines an American fishing vessel for fishing more than 12
miles from the country's coast, unless the President waives the pro-
hibition on the basis that it is important to U.S. security or that he
has received reasonable assurances from the country that similar sei-
zures will not occur in the future.
The House amendment did not contain a comparable provision.
The Senate receded.
PENALTY FOR UNAUTHORIZED TRANSFER OF SOPHISTICATED WEAPONS
TO A THIRD COUNTRY
The Senate bill contained a provision which prohibited the furnish-
ing of sophisticated weapons, including sophisticated jet aircraft, to
any foreign country which transferred defense articles provided by
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the [ rnited States in violation of an. agreement requiring U.S. consent
to such a transfer.
The House amendment contained a similar provision, but permitted
restoration of eligibility when the President determines that the vio-
lation has ceased. and he has received satisfactory assurances that
the violation will not reoccur, and provided that in the case of un-
authorized transfer of Sophisticated weapons, such weapons have
been returned to the original recipient.
The Serrate receded.
CASI i SALES FRONT STOOK
The Senate bill repealed section 21 of the Foreign Military Sales
Act and included a provision authorizing cash sale of defense articles
and services from the stocks of the Department of Defense.
The House amendment did not contain a comparable provision.
The Senate receded.
I I OCITRE11iEN'r 1,1( )It (ASiT SALES
The Senate bill repealed section 22 of the Foreign Military Sales
Act and included language to require purchasers of defense articles or
defense services to pay to the United States Government, in addition
to the cost of such items, an amount equal to the administrative costs
incurred in procuring such articles and services. The Senate bill
also eliminated the President's authority to sell defense articles on a
fixed price basis and prohibited cash sales of defense articles and
services by the U.S. Government to a developed country if such arti-
cles are generally available from commercial sources in the United
States.
The House amendment did not contain a comparable provision.
The House receded- with an amendment deleting the prohibition on
the sale of defense articles to economically developed countries, and
d,he requirement to pay administrative costs.
it is the intent of the committee of conference that the current ad-
ministrative practice of charging an appropriate amount to cover
overhead expenses, when feasible, be maintained.
(hienrr SALES
The Senate bill repealed section 23 of the Foreign Military Sales Act
and included a similar provision authorizing credit sales of defense
articles and defense services to economically less developed countries.
Repayment would he required within 10 years after delivery.
The House amendment increased the repayment period from 10 to
20 yea rs.
The committee of conference agreed to retain existing law.
;_>AI,ES CREDITS AT CoNcESSiONAI, RATES ANn REPAYABLE
IN VOCAL CURRENCY
The Senate bill contained a provision which authorized credit sales
on concessional terms to countries that received grant military assist-
ance in fiscal year 1973 in amounts not exceeding the level of grant
assistance provided during that fist o.l year. During fiscal years 1974
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and 1975, sales could be made which were repayable in local currency
and without interest. In fiscal years 1976 through 1978 sales could be
made at interest rates not less than 3 percent a year to the extent the
local currencies were needed for U.S. Government requirements.
The House amendment did not contain a comparable provision.
The Senate receded.
The Senate bill repealed section 24 of the Foreign Military Sales Act
and included a similar provision.
The House amendment amended section 24 to authorize the President
to issue guaranties to persons doing business outside the United States.
It also permitted funds made available under the Act to be obligated
for the 25 percent guaranty reserve, and amended the Act to allow the
calculation for the purposes of the guaranty reserve, the aggregate
ceiling on Foreign Military Sales credits, and the regional ceiling on
military sales on the basis of the principal amount of the contractual
liability which would preclude guaranteed interest from counting
against the ceilings.
The committee of conference agreed to the House amendment with
the exception of the provision which would have allowed guaranties
to be issued to persons doing business outside the United States.
FOREIGN MILITARY CREDIT : SALES
The Senate bill authorized an appropriation of $200 million to the
Secretary of State for military sales credits for fiscal year 1974 and
set, an aggregate ceiling on military credit sales at $700 million for
fiscal year 1974, of which $300 million was to be available only for
Israel.
The House amendment authorized $450 million for military sales
credits for fiscal year 1974, provided an aggregate ceiling of $760
million for fiscal year 1974, and earmarked $300 million for Israel.
The committee of conference agreed to authorize the appropriation
of $325 million and established an aggregate ceiling of $730 million
for fiscal year 1974, of which $300 million shall be available only for
Israel.
PROHIBITION ON EXPORT-IMPORT BANK
The Senate bill repealed section 32 of the Foreign Military Sales
Act which prohibited the Export-Import Bank of the United States
from participating in any new extension of credit in connection with
the purchase of defense articles or defense services to any economically
less developed country.
The House amendment did not contain a comparable provision.
The Senate receded.
AGGREGATE LATIN AMERICA AND AFRICA REGIONAL CEILING
The Senate bill repealed section 33 of the Foreign Military Sales Act
and included a similar provision which established an aggregate ceil-
ing of $150 million on the total amount of military assistance and sales
that can be made to Latin America in any fiscal year and a correspond-
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48
ing ceiling of $40 million for Africa. It also eliminated the President's
authority to waive an amount equal to 50 percent of such regional
ceilings.
The House amendment increased the ceiling for Latin America to
$150 million and excluded cash sales from counting against the aggre-
gate ceiling for both Latin America and Africa.
The committee of conference agreed to retain existing law with the
changes proposed in the House amendment and to eliminate the Presi-
dential waiver authority as provided in the Senate bill.
I'RIOR CONGRESSIONAL APPROVAL OF MILITARY SALES
The Senate bill contained a provision requiring the President to sub-
mit to the Congress, prior to entering into any relevant sales or guar-
anty agreement, written information. on any cash sale, credit sale,
or guaranty of over $25 million to any country under the Foreign
Military Sales Act. The President could not complete such an agre.e-
!nent if either House of the Congress adopted a resolution disapprov-
ing it. The same procedure applied to every sale, in whatever amount,
to a country that had purchased more than $50 million in a fiscal year.
The. House amendment did not contain a comparable provision.
The, he, Senate receded.
REPORTS ON COMMERCIAL AND GOVERNMENTAL MILITARY EXPORTS
The, Senate bill repealed section 36 of the Foreign Military Sales.Act
and included a similar provision relating to reports of the export of
significant defense articles on the U.S. munitions list.
The Douse amendment repealed section 36(a) of the Foreign Mili-
tary Sales Act relating to the export of significant defense articles.
The committee of conference agreed to the repeal of subsections
36 (a) and (b) of the act.
DEPOSITS IN THE GUARANTY RESERVE
The House amendment amended section 37(b) of the Foreign Mili-
tary Sales Act to authorize a portion of the proceeds from the sale of
notes generated by credit extended under section 23, to be obligated
as a reserve for the guaranty of the payment of such notes without
additional charge against current appropriations.
The Senate bill did not contain a comparable provision.
The Senate receded.
GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS PROVISIONS-FOREIGN
MILITARY SALES ACT
The Senate bill repealed chapter 4 of the Foreign Military. Sales
.Act, relating to general, administrative, and miscellaneous provisions.
The House amendment did not contain a comparable provision.
The Senate receded.
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REPEAL OF MUTUAL SECURITY APPROPRIATION ACT, 1956
The Senate bill repealed section 108 of the Mutual Security Appro-
priation Act, 1956, as amended, thereby placing future military as-
sistance programs on an obligation, direct-citation-of-funds basis.
The House amendment did not contain a comparable provision.
The Senate receded.
SPECIAL FOREIGN ASSISTANCE ACT OP 1971
The Senate bill repealed the Special Foreign Assistance Act of 1971
with the exception of section 7 which prohibits the introduction of
United States ground combat troops into Cambodia.
The House amendment did not contain a comparable provision.
The Senate receded.
FOREIGN MILITARY SALES ACT AMENDMENTS, 1971
The Senate bill repealed the Foreign Military Sales Act Amend-
ments, 1971 with the exception of section 12 which repealed the "Joint
resolution to promote the maintenance of international peace and se-
curity in Southeast Asia".
The House amendment did not contain a comparable provision.
The Senate receded.
The ,~ojnmittee of co~~ greed to amend section 8 with respect
to e,xces ,Qaise irticles and Included the, provision_~-_o_f section 9 as 11
an amendment to the Foreign Assistance Act and the Foreign Mil-
talales Act.
The Senate bill repealed section 5 of the Foreign Military Sales Act
Amendment, 1971 which expresses the sense of the Congress that the
President should negotiate with the Soviet Union and other powers a
limitation on arms shipments to the Middle East; and section 6 of the
same act which expresses the sense of the Congress that the President
initiate a thorough and comprehensive review of military assistance
and sales programs of the Department of Defense. In lieu thereof, the
Senate bill included a provision which directed the President to make a
concerted effort to convene an international conference of major arms
suppliers within 18 months to negotiate an agreement placing a work-
able ceiling on arms transfers.
The House amendment did not contain a comparable provision.
The Senate receded.
The committee of conference agreed that the President should make
every effort to negotiate with the Soviet Union and other powers an
agreement which would bring about workable controls over the trans-
fer of conventional arms.
The Senate bill repealed section 8 of the Foreign Military Sales
Act Amendments, 1971 and included a provision that excess defense
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articles furnished under MAP authority b an a ency o thee United
1.ta?tes Over riir~ent s ou c~ corisi ere to an expenditure made
front funds appropriated for military assistance.
The House amendment continued the exemption of $185 million on
the value of excess defense articles, regardless of where generated,
which might be ordered under arty authority during any fiscal year
before the value of those articles is chargeable against funds appro-
priated under part 11 of the Foreign Assistance Act of 1961.
i 'The Senate receded with an amendment reducing the exemption
I l"rorn $185 million to $150 million of the value of excess defense articles
which may be. furnished before being charged against funds ap-
propriated under part II of the Foreign Assistance Act, provided that
such excess article are generated outside of the United States. The
value of any excess defense articles generated within the United
States and furnished as military assistance shall be charged off against
funds appropriated for military grant assistance. The committee of
conference expects that no action will be taken which would have the
effect of circumventing the purpose of this new restriction.
PRIOR AII'rEIORIZATION
The Senate bill repealed section 10 of the Foreign Military Sales Act
Amendments, 1971, and included a similar provision requiring an
authorization before appropriated funds may be obligated or expended.
The House amendment did not contain a comparable provision.
'1'he Senate receded.
PUBLIC T)TSCLOSTTRE OF EXPORT OF MTTNITIONS LISTS ITEMS VALTTED IN
EXCESS OF $100,000
The Senate bill contained a provision. which required that the Con-
gress be notified of licenses issued for the export of items on the Muni-
tions List valued in excess of ,100,000.
The TTouse amendment did not contain a comparable provision.
The House receded.
TRANSFER Or MiI,rrARV VESSELS AND BOATS
The Senate bill contained a, provision. which prohibited the transfer
of any vessel or boat of the United States, to any foreign country or
international organization except i a accordance with foreign assist-
ance, sales, or other specific legislation.
The House amendment slid not contain a comparable provision.
The Senate receded.
)(IIMITATION ON ASSISTANCE TO SOUTH VTETNAM, LAOS, AND \ -A1[BODIA
The e Senate bill contained a provision which :
(I) limited assistance to South Vietnam and Laos to that per-
mitted by the respective cease-fire agreements. A similar provision
related to a limitation on military assistance to Cambodia if and
when a, cease-fire agreement is reached;
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(2) authorized the President to furnish emergency military
assistance to South Vietnam if the President found and reported
to the Congress that the cease-fire agreement was no longer in
effect; and
(3) required the President to submit a quarterly report to
the Congress on the nature and quantity of all types of foreign
assistance provided to South Vietnam, Laos, and Cambodia and
the number and types of United States personnel present in
those countries, involved in providing such assistance.
The House amendment did not contain a comparable provision.
The Senate receded.
MEDIA ACCESS TO U.S.-FINANCED BASES
The Senate bill contained a provision which prohibited the program-
ing of assistance to any country in which a military base is located if
the base had been constructed, maintained, or operated with United
States funds and used by United States personnel to carry out military
operations, unless the President determines and reports in writing to
the Congress that the government of such country has, consistent with
its own security, authorized access to those military bases on a regular
basis, to bona fide news media correspondents of the United States,
The House amendment did not contain a comparable provision.
The House receded with an amendment deleting the requirement
that the President report in writing to the Congress.
TERMINATION Or INDOCHINA WAR
The Senate bill contained a provision which prohibited the use of
funds authorized or appropriated under this or any other law to finance
military or ~arlirgP~rs.by?the.United._States .in or over
C.am..o ls~ o S_oui tgti.
The House amendment did not contain a comparable provision.
The House receded.
There are similar prohibitions on the use of funds contained in
Public Law 93-50 (The Second Supplemental Appropritions Act)
enacted July 1, 1973; Public Law 93-52 (The Continuing Resolution
Authority for fiscal year 1973) enacted July 1, 1973; Public Law
93-126 (The Department of State Appropriations Authorization)
enacted October 18, 1973; and Public Law 93-155 (Military Procure-
ment Authorization Act), enacted November 16,1973.
141M.11'A'1'IUN ON USE OF .U UNDS 'P.f `'
The Senate bill contained a provision prohibiting the u of funds
to finance directly or indirectly "military or paramilitary perations"
by third country forces in Laos, Cambodia, North Vie nam, South
Vietnam, or Thailand, unless specifically authorized by legislation.
The House amendment did not contain a comparable provision.
The House receded with an amendment adding the word "combat"
after "paramilitary" and before "operations".
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POLITICAL PRISONERS
The Senate bill contained a provision expressing the sense of the
Congress that the President should deny economic and military as-
sistance to any country which interns or imprisons that country's citi-
zens for political purposes.
The House amendment did not contain a comparable provision.
The House receded.
ALBERT SCHWEITZER HOSPITAL,
The Senate bill. authorized an appropriation of $1 million for fiscal
year 1974 for grants to the Albert Schweitzer Hospital in Gabon.
The House amendment did not contain a comparable provision.
The House receded.
PRISONERS OF WAR AND INDIVIDUALS MISSING IN ACTION
Tlie, Senate bill expressed the sense of the Congress that the pro-
visions of article 18 of the Protocol signed on September 14, 1973, by
representatives of the Lao Patriotic Front (Pathet Lao) and the Royal
Laotian Government. relating to prisoners of war and individuals
sussing in action, be adhered to in spirit and in deed.
The House amendment did not contain a comparable provision.
The House receded.
PROIIImTIONS TO FURNISHING ASSISTANCE TO NORTH VIF,TNAM
The House amendment contained a provision prohibiting assistance
to the Government of North Vietnam unless that assistance is specifi-
cally authorized by legislation.
The Senate bill did not contain a comparable provision.
The Senate receded.
REVISION OF SOCIAL PROC,1 ESS TRUST FUND AGREEMENT
The House 'amendment directed the President to seek a revision of
the Social Progress Trust Fund Agreement to provide that its funds
might be transferred to or utilized by the Inter-American Foundation,
the Inter-Alin erican Development Bank, and the Department of State
and/or the U.S. Treasury.
The Senate bill did not contain it comparable provision.
The Senate receded with an amendment, striking subsection (1) (B)
and (C) which called for periodic transfer of trust funds to the U.S.
Department of State and the U.S. Treasury.
USE OF MILITARY ASSISTANCE IN A ERIC A
The Senate bill amended the Foreign Assistance Act by adding a
new section which prohibited the use. of any U.S. military or economic
aid or other U.S. experts.,tQ. nt i13,t)r.~_ t tus_of_the African terri
tories of Portugal and required termination of aid :and military ,sales
and military exports requiring a validated license if the President
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determined that those items were being used by Portugal in support
of its military activities in its African territories.
The House amendment provided that assistance to Portugal should
be suspended when the President makes a determination and reports
to Congress that Portugal has used U.S. assistance in support of its
military activities in its African colonies. The restoration of such
assistance was made contingent on appropriate corrective action by
Portugal.
The Senate receded with amendments (1) making the provision ap-
plicable to "any non-African country," (2) striking the parenthetical
reference in the House amendment to sales "whether for cash or by
credit, guarantee or any other means," and (3) striking the require-
ment to suspend assistance.
ENTRY OF SOVIET JEWS INTO AUSTRIA
The Senate bill contained a sense of the Senate resolution asking
the President to urge the Austrian Government to take whatever action
is necessary to permit and facilitate travel of Soviet Union emigrants
through Austria.
The House amendment did not contain a comparable provision.
The Senate receded.
GOVERNMENT OF INDIA LOAN SETTLEMENT
The Senate bill provided that any settlement of the debt owed to the
United States by India that is less than the full amount owed must be
authorized by the Congress.
The House amendment did not contain a comparable provision.
The Senate receded.
It is the intent of the committee of conference, however, that the
administration report to the Committee on Foreign Relations of the
Senate and the Committee on Foreign Affairs of the (House of Repre-
sentatives, as well as to the Senate and House Agriculture Committees,
the terms of any proposed settlement with India, with the right to
review, 30 days prior to entering into such settlement.
The Committee on Foreign Relations has asked the General Ac-
counting Office for -a detailed study of the entire situation concerning
U.S.-owned foreign currencies.
HUMAN RIGHTS IN CHILE
The Senatebill contained a sense of the Congress provision that the
President should deny any military or economic assistance to Chile
until he finds that the Government of Chile is protecting human rights
of all individuals, Chilean and foreign; support certain other steps to
insure the protection of human rights; be prepared to provide asylum
and resettlement opportunities for a reasonable number of political ref-
ugees; support and facilitate efforts by voluntary agencies to meet
emergency relief needs ; and request the Inter-American Commission
on Human Rights to undertake an immediate inquiry into recent
events in Chile.
The House 'amendment did not contain a comparable provision.
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The House receded with an amendment striking out the language
which would deny aid and substituting the expression of Congress that
the President should request the Government of Chile to protect hu-
man rights in Chile. The committee of conference also agreed to delete
the reference to providing asylum and resettlement opportunities for
political refugees.
The Senate bill expressed the sense of Congress that there should
be created a new Bureau of Humanitarian and Social Services in the
Department of State, to be headed by a new Assistant Secretary of
State, with. responsibility for continuing guidance and coordination
of U.S. Government efforts related to refugee relief assistance, victims
of international disasters, migration and visa affairs, the field of
international human rights, overall government liaison with the United
Nations and other appropriate international agencies and nongovern-
mental organizations.
The House amendment did not contain a comparable provision.
The Senate receded.
The Senate bill authorized the President to use $6 million of funds
appropriated to carry out the Foreign Assistance Act to furnish
humanitarian assistance to the U.N. High Commissioner for Refugees
in support of the repatriation and exchange of minority populations
between Pakistan and Bangladesh.
The House amendment did not contain a comparable provision.
The Senate receded. Existing law (section 2(c) of the Migration
and Refugee Assistance Act of 1962 (Public Law 87-510)) already
authorizes the President to transfer up to $10 million of Foreign As-
sistance Act funds in any fiscal year to meet unexpected urgent refugee
and migration needs.
WORLD FOOD SHORTAGES
The Senate bill contained language urging full participation by the
United States in efforts to alleviate current and future food shortages,
the establishment of a high level commission to study and report on
the world food situation, consultation with various international or-
ganizations involved in this field, and proposing revision of Public
Law 480 to permit greater utilization of United States food produc-
tion in meeting emergency and humanitarian requirements for food
assistance.
The House amendment did not contain a comparable provision.
The House receded with amendments expressing the sense of the
Congress with respect to the world food situation and steps deemed
necessary to deal with it.
LOCAL CURRENCIES USED FOR MILITARY ASSISTANCE
The Senate bill amended section 104(c) of Public Law 480, which
authorizes the President to enter into agreements with foreign gov-
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ernments to use foreign currencies generated under the Act to procure
articles for the common defense, by requiring that any such agreement
must be specifically authorized by statute.
The House amendment did not contain a comparable provision.
The committee of conference agreed that effective July 1, 1974, no
amount of any foreign currency (including principal and interest from
loan repayments) which accrues in connection with any sale for for-
eign currency under any provision of law may be used under any
agreement or any revision or extension of any prior or subsequent
agreement, entered into after the date of the enactment of this act,
to provide any assistance to any foreign country to procure equip-
ment, materials, facilities, or services for the common defense, includ-
ing internal security, unless such agreement is specifically authorized
by legislation enacted after such date.
ASIAN DEVELOPMENT BANK
The Senate bill amended the Asian Development Bank Act (Public
Law 92-245) to carry forward authorizations from fiscal year 1972
and fiscal year 1973 totaling $100 million.
The House amendment did not contain a comparable provision.
The House receded.
THOMAS E. MORGAN,
CLEMENT J. ZABLOCKI,
DANTE B. FASCELL,
W. S. MAILLIARD,
PETER H. B. FRELINGIIUYSEN,
WM. BROOMFIELD,
Managers on the Part of the House.
H. H. HUMPIIREY.
GEORGE D. AIKEN,
CLIFFORD P. CASE,
Managers on the Part of the Senate.
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