FOREIGN ASSISTANCE ACT OF 1974

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00957A000100010016-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 108
• Document Creation Date: December 20, 2016
• Document Release Date: May 24, 2005
• Sequence Number: 16
• Publication Date: November 29, 1974
• Content Type: REGULATION

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Calendar No. 1232
93D CONGRESS l
2d Session f
It REPORT
I. No. 93-1299
FOREIGN ASSISTANCE ACT
OF' 1974
REPORT
COMMITTEE ON FOREIGN RELATIONS
UNITED STATES SENATE
ON
S. 3394
TO AMEND THE FOREIGN ASSISTANCE ACT OF 1961, AND
FOR OTHER PURPOSES
NOVEMBER 29, 1974.-Ordered to be printed
Filed under authority of the order of the Senate of November 26, 1974
U.S. GOVERNMENT PRINTING OFFICE
42-582 WASHINGTON : 1974
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t:OMMITTEE ON FOREIGN RELATIONS
J. W. FULP,RIGIIT, Arkansas, Chairman
JOHN SPARKMAN, Alabama
MIKE MANSFIELD, Montana
FRANK CHURCH, Idaho
STUART SYMINGTON, Missouri
CLAIBORNE PELL, Rhode Island
GALE W. McGEE, Wyoming
EDMUND S. MUSKIE, Maine
GEORGE S. McGOVERN, South Dakota
HUBERT H. HUMPHREY, Minnesota
GEORGE D. AIKEN, Vermont
CLIFFORD P. CASE, New Jersey
JACOB K. JAVITS, Now York
HUGH SCOTT, Pennsylvania
JAMES B. PEARSON, Kansas
CHARLES H. PERCY, Illinois
ROBERT P. GRIFFIN, Michigan
PAT M. HOLT, Chief of Slaff
ARTHUR M. Kuur., Chief Clerk
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CONTENTS
Page
Principal purposes of the bill-----------------------------------------
1
Summary of major policy provisions in the bill -------------------------
1
Authorization of appropriations---------------------------------------
13
Committee action----------------------------------------------------
11
Committee comments------------------------------------------------
Cost estimates-------------------------------------------------------
17
Section-by-section analysis:
See. 2 Food and nutrition----------------------------------------
18
Sec. 3 Population planning--------------------------------------
20
Sec. 4 Education and human resources development ----------------
20
Sec. 5 Housing guaranties---------------------------------------
21
Sec. 6 Agricultural Credit Program -------------------------------
22
Sec. 7 International organizations and programs -------------------
23
Sec. 8 Military assistance authorizations --------------------------
25
Sec. 9 Special authority ------------------------------------------
28
Sec. 10 Military assistance authorizations for South Vietnam------
28
Sec. 11 Excess defense articles -----------------------------------
28
Sec. 12 Stockpiling of defense articles for foreign countries ----------
32
Sec. 13 Military assistance advisory groups and missions ------------
34
Sec. 14 Termination of authority---------------------------------
36
Sec. 15 Termination of military assistance to South Korea -----------
39
Sec. 16 Security supporting assistance -----------------------------
40
Sec. 17 Transfer between accounts ------------------- .-------------
40
Sec. 18 Assistance to Greece ---------------------------------------
41
Sec. 19 Limitation upon assistance to or for Chile ------------------
41
Sec. 20 Reconstruction, relief, and rehabilitation --------------------
41
Sec. 21 Access to certain military bases abroad ---------------------
42
Sec. 22 Prohibiting police training ---------------------------------
42
Sec. 23 Limiting intelligence activities -----------------------------
43
Sec. 24 Waiver of prohibition against assistance to countries engaging
in certain trade----------------------------------------
43
Sec. 25 Policy with respect to Indochina --------------------------
47
See. 26 Principles governing economic aid to Indochina -------------
48
Sec. 27 Indochina postwar reconstruction ---------------------------
49
Sec. 28 Assistance to South Vietnamese children --------------------
50
Sec. 29 Limitation with respect to South Vietnam ------------------
50
See. 30 Limitations with respect to Cambodia -----------------------
54
Sec. 31 Limitations with respect to Laos- -------------------------
56?
Sec. 32 Population, narcotics, international humanitarian and
regional programs--------------------------------------
58
See. 33 Transfer of funds------------------------------------------
58
Sec. 34 Middle East assistance -------------------------------------
58
Sec. 35 Foreign Military Sales Act amendments ---------------------
61
Sec. 36 Political prisoners -----------------------------------------
67
Sec. 37 Gorgas Memorial Institute--------------------------------
67
Sec. 38 International Commission of Control and Supervision
in Vietnam--------------------------------------?-------
67
Sec. 39 Policy on assistance to Africa -----------------------------
68
See. 40 Policy on the independence of Angola, Mozambique, and
Guinea-Bissau ------------------------------------------
69
Sec. 41 Conventional arms trade ----------------------------------
70
Sec. 42 Caribbean Development Bank -------------------------------
70
Sec. 43 Expenses of U.S. membership in UNESCO ------------------
70
Changes in existing law-----------------------------------------------
71
(III)
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Calendar No. 1232
93D CONGRESS t SENATE I REPORT
2d Session No. 93-1299
NOVEMBER 29, 1974.-Ordered to be printed
Filed under authority of the order of the Senate on November 26, 1974
Mr. HUMPIIREY, from the Committee on Foreign Relations;
submitted the following
REPORT
The Committee on Foreign Relations, to which was referred the
bill (S. 3394) to amend the Foreign Assistance Act of 1961, and for
other purposes, having considered the same, reports favorably thereon
with an amendment and recommends that the bill (as amended) do
pass.
PRINCIPAL. PURPOSES Or TILE BILL
The principal purposes of the bill are : to authorize appropriations
totaling $2,673,126,000 for the 1975 fiscal year for certain foreign eco-
nomic, military assistance and credit sales programs; to establish
policy guidelines and limitations concerning United States assistance
to and involvement in Indochina and to phaseout the military grant
assistance program and United States military missions abroad.
The amount recommended by the Committee represents a reduction
of $579,100,000, or 18 percent, in the Executive Branch request.
SUMMARY Or MAJOR POLICY PROVISIONS IN THE BILL
1. Policy.--States a Congressional policy concerning the political/
military situation in Indochina and principles to guide the U.S. eco-
nomic assistance program...
2. Spending Ceilings.-Imposes fiscal year 1975 ceilings on obliga-
tions for assistance to Indochina: $1.27ebillion for South Vietnam;
$377 million for Cambodia; and $70 million for Laos.
3. Project and Program Authorizations.-Authorizes funds for eco-
nomic assistance to South Vietnam, Cambodia, and Laos by specific
project or program.
(1)
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.4. Personnel Ceiling in South Vietnam.-Imposes a ceiling on U.S.
direct hire and contract personnel in South Vietnam of 4,000 to be
reached within six months after enactment and a further reduction
to not more than 3,000 by the end of fiscal year 1975. Personnel of
humanitarian relief agencies are exempted from the ceiling.
5. Transfer Authority.-Allows military aid funds to be used for
economic assistance purposes.
1. Phase Out of Military Grant Assistance and Military Missions.--
Requires a phase out over a three-year period of military grant assist-
ance and United States military aid missions to foreign countries.
2. Costs of Military Missions.-Requires that all costs of United
States military missions abroad must be charged against appropria-
tions for military grant assistance, beginning in FY 1976.
3. War Reserve Stockpiles for Foreign Countries.-Requires that
any stockpiling of military equipment or material for foreign coun-
tries be financed out of funds appropriated for military assistance. No
material can be provided to a foreign country from previously stock-
piled materials unless the cost of the materials is charged against funds
appropriated for the regular military assistance program or military
aid to South Vietnam.
4. Authority to Draw on Defense Stocks.-Repeals the authority to
draw on Department of Defense stocks for the purpose of providing
additional military grant assistance to foreign countries.
5. Excess Defense Articles.-Tightens restrictions on the use of
excess defense articles for foreign military aid by requiring that all
grants of excess articles be charged against funds for military aid and
by limiting FY 1975 excess defense article grants to $150 million, based
on acquisition cost.
6. Military Aid to Korea.-Imposes a ceiling on military grant aid
and credit sales to Korea of not more than three-fourths the FY 1974
level and phases out such assistance over a three-year period.
7. Arms Sales Through Commercial Channels.-Prohibits govern-
ment procurement of arms for economically developed countries if the
equipment or material is available through commercial channels.
8. Interest Rate On Credit Sales.-Imposes a minimum interest rate
on credits extended to foreign countries for purchases of arms under
the Foreign Military Sales Act of not less than the interest rate paid
on Treasury borrowings of comparable maturity.
9. Military Aid to Chile.-Prohibits military assistance to Chile.
1. Israel.-Authorizes $339.5 million in economic assistance and $300
million in military credits for Israel.
2. Chile.-Imposes a fiscal year 1975 ceiling of $55 million on eco-
nomic assistance to Chile.
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3. Police Training.-Prohibits use of foreign aid funds for training
foreign police, prison, or other law enforcement forces.
4. Disaster Relief.-Authorizes the use of approximately $110 mil-
lion in loan retlows to meet humanitarian and reconstruction needs in
Cyprus, Bangladesh, the Sahel and any other disaster areas.
5. Africa.-Calls for greater emphasis on Africa in U.S. assistance
efforts.
6. Covert Operations.-Prohibits any non-intelligence-gathering co-
vert activity abroad unless the President has first informed Congress
of the importance and nature of such activity.
7. Contributions to UNESCO.-Prohibits U.S. contributions to
UNESCO until that organization has repealed all resolutions not of an
educational, scientific, or cultural nature.
8. Presidential Waiver.-Authorizes the President to waive any pro-
hibitions on assistance to countries because they are trading with a
designated country.
AUTHORIZATION Or, iVPPRorRIATIONS
Last year Congress approved a two-year authorization of appro-
priations for foreign economic development assistance but only a
one-year authorization for the military assistance and sales pro-
grams, security supporting assistance, and the Indochina reconstruc-
tion program. This bill authorizes appropriations for fiscal year 1975
totaling $2,673,126 comprised of $2,447,000 for economic assistance to
Indochina (other than Public Law 480 assistance), security support-
ing assistance, a new Middle East contingency fund, and the foreign
military assistance and sales programs ; $298,400,000 in supplemental
authorizations for other economic assistance programs; and $27,726,-
000 for United States contributions to meet the expenses of the Inter-
national Commission of Control and Supervision in Vietnam.
For many years the Committee on Foreign Relations has urged that
military and economic assistance authorizations be considered in
separate bills. In reporting a bill containing authorizations for both
economic and military assistance the Committee recognizes that on
the surface its action appears inconsistent with its traditional posi-
tion. However, this is a unique bill where military and economic aid
issues are inextricably combined. In Indochina, for example, the
Committee believes that the Senate should consider the total flow of
United States resources into South Vietnam, Cambodia, and Laos and
that it would be inadvisable and confusing to try to deal with policy
toward those countries in separate economic and military aid bills.
Similarly, in the, Middle East, the Committee's singling out this
region for special attention has resulted in a mix of economic and
military aid authorizations.
Next year the Committee fully expects to deal with foreign assist-
ance authorizations in two separate bills.
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Table I itemizes the authorizations recommended by the Commit-
tee:
TABLE I.-FOREIGN ASSISTANCE AUTHORIZATIONS RECOMMENDED BY THE COMMITTEE ON FOREIGN RELATIONS
[In thousands of dollars-
Fiscal year
1975 au- Committee Difference
thorization recom- from
request mendation request
1. Food and nutrition___________________________________________________ 255,300 1231 ,000 -16,300
2. Population planning and health____________________________________________________ 1 20,000 +20,000
3. Education and human resources development _____________________________ 12,000 +2,000
4. Gorgas Memorial-Panama ------------------------------------------------------- 1 500 +500
5. International organizations and programs_______________________________ 3, 900 1 36, 900 +33,000
6. Indochina postwar reconstruction______________________________________ 939,800 617,000 -322,800
7. Security supporting assistance________________________________________ 385,500 675,000 +289,500
8. Middle East Special Requirements Fund________________________________ 100,000 100,000 ____________
9. Military assistance program___________________________________________ 985,000 550,000 -435,000
10. Foreign military credit sales__________________________________________ 555,000 2405,000 -150,000
11. International Commission of Control and Supervision in Vietnam__________ 27,726 27,726 ------------
Total -------------------------------------------------- --------- 3,252,226 2,673, 126 -579, 100
IS u pplemental to current authorization.
2 Of this amount, $100,000,000 is to he in the nature of a grant to Israel.
Table II compares the Committee's recommendations with authori-
zations and appropriations for fiscal year 1974 and shows the appro-
priation request for items for which there is a current authorization.
TABLE II.-COMPARATIVE DATA ON FOREIGN ASSISTANCE ACTIVITIES, FISCAL YEARS 1974 AND 1975
[In thousands of dollars]
Authorize- Appropria- Appropria- Authoriza-
tion tion tion tion
Development assistance:
Food and nutrition__________________________ 291,000
Population planning and health_______________ 145,000
Education and human resources_______________ 90, 000
Selected development problems_______________ 53,000
Selected countries and organizations----------- 39, 000
Total, functional development assistance----- 618, 000
International organizations and programs:
UNDP and other programs___________________ 150,000
Indus Basin Development Fund loans __________ (1)
Indus Basin Development Fund grants--------- 14, 500
UNRWA (expansion of training)_______________ 2,000
U.N. Environment Fund______________________ (4)
Committee
recommen-
dation
284, 000 546,300 2 255, 300 239, 000
135,000 145,000 ------------ 2 20,000
89,000 90,000 ------------ 22,000
40,500 53,000 ------------------------
36,500 39,000 ------------------------
585,000 873, 300 2 255, 300 2 261, 000
125, 000 153, 900 2 3, 900 2 36, 900
2,000 200 ------------------------
9,000 14,500 ------------------------
2 000 -----------------------------------
7,500 10,000 ------------------------
Total, international organizations and pro-
grams --------------------------------- 166, 500 145, 500 178, 600 2 3, 900 2 36,900
American schools and hospitals abroad ------------ 19,000 19, 000 10,000 ------------------------
Contingency fund,__________ ------- _----------- 30,000 15,000 30,000 ------------------------
National Association Partners of the Alliance------- 934 750 ------------------------------------
Albert Schweitzer Hospital _______________________ 1,000 1,000 ------------------------------------
Sahel drought relief ________________ 25,000 25,000 ------------------------------------
Disaster relief and reconstruction ----------------- 150,000 150.000 ___________________________________
Administrative expenses, AID____________________ 45,000 40,000 45,000 ------------------------
Administrative and other expenses, State__________ (1) 4,800 5,900________________________
Total, development assistance______________ 905, 434 986, 050 1, 142,800 2259, 200 0258900
Indochina postwar reconstruction_________________ 504,000 9489 489,000 939,800 939,800 617,000
Security supporting assistance __________ 125, 000 112, 500 385, 500 385, 500 675, 000
Middle East Special Requirements Fund____________________________________ 100,000 100,000 100,000
Total, AID________________________________ 1,684,434
International Narcotics Control____________________ 42,500
Overseas Private Investment Corporation (reserves)- (2)
Military assistance program (MAP)---------------- 512,500
,
Foreign military creddsales ---------------------- 325,000
See footnotes at end of table.
1, 597, 550 2,568,100 1,684, 500 1,689,900
42,500 42,500 ________________________
25,000 25,000 ------------------------
7 450,000 985,000 985,000 550,000
325, 000 555, 000 555, 000 405, 000
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TABLE II.-COMPARATIVE DATA ON FOREIGN ASSISTANCE ACTIVITIES, FISCAL YEARS 1974 AND 1975-Cont.
[In thousands of dollars[
Fiscal year 1974 Fiscal year 1975 request 1
- Committee
Authoriza- Appropria- Appropria- Authoriza- recommen-
tien tins ton tion datien
Emergency security assistance:
Israel ------ 2,200,000 2,200,000 ----------------------------------
- --- ------------------------------------------- --------
Cambodia - 8 150,000 - ----------- --------
Total, foreign assistance items-------------- 4,764,434 4,790,050 4, 175, 600 3,224,500 2,644,900
Gorgas Memorial Institute------------------------ (0) 500 500 (0) 2 500
International Commission of Control and Supervision
in Vietnam___________________________________ 4,500 ------ ----- 10 27,726 m 27, 726 10 27,726
I Request includes the following additional amounts not included in the President's fiscal year 1975 budget trans-
mitted to the Congress on Feb. 4, 1974: Indochina postwar reconstruction, $150,000 000; security supporting assistance,
$322,500,000; Middle East special requirements, $100,000,000; foreign military credit sales, $240,000,000; military assist-
ance program, $60,000,000.
2 Supplemental to existing authorization.
3 Appropriation request authorized by FAA of 1967 which made available $51,200,000 until expended.
4 Authorized by Public Law 93-188 which made available $40,000,000 until expended.
6 Permanent authorization for such sums as may be necessary.
6 Includes $49,000,000 supplemental appropriation.
7 Excludes $250,000,000 in defense stocks provided to Cambodia under sec. of the FAA of 1961.
8 Not authorized.
6 Permanent authorization of $500,000 per annum.
10 Includes $16,526,000 for fiscal year 1975 contribution to the ICCS and $11,200,000 for reimbursement to AID for fiscal
year 1974 expenses of the ICCS.
In order to assist members of the Senate in analyzing the authoriza-
tions recommended by the Committee in the context of the overall
foreign assistance romram proposed for fiscal year 1975 by the Execu-
tive Branch, Table Al lists all proposed assistance programs and
country-by-country allocations.
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Section 12. Stockpiling of Defense Articles for Foreign Countries
In preparation for the hearings on this legislation the Committee
learned that since 1972 the Department of Defense has been stockpil-
ing arms and equipment for possible use by South Vietnam, Thailand,
and Korea in the event of future hostilities. In reply to a request for
information about a $490,000,000 item listed as "War Reserve Mate-
rials" under the Defense budget category, "Support of Other Nations,"
the Defense Department furnished the following explanation to the
Committee :
EXPLANATION FROM THE DEFENSE DEPARTMENT
The requested appropriation for War Reserve Materials
(WRM) is made up of two categories as indicated and defined
below :
WRM-Support of Allies (Equipment)
Costs for acquisition, storage and maintenance of war reserve
equipment and secondary items for Vietnam, Thailand, and Ko-
rean Forces. This constitutes the only equipment stockpiled and
earmarked specifically for use by the ROK, RVN, or Thailand
forces. Stocks will remain U.S. owned and controlled.
WPM-Support of Allies (Ammunition)
Costs for acquisition, storage and maintenance of war reserve
munitions for Vietnam, Thailand, and Korean forces. This con-
stitutes the onyl ammunition stockpiled and earmarked specif-
ically for use by the ROK, RVN and Thailand forces. Stocks will
remain U.S. owned and controlled.
In order to obtain additional information concerning the stockpile
program the Committee asked the General Accounting Office to look
into certain aspects which are relative to the Committee's legislative
responsibility for foreign assistance matters. Following are pertinent
excerpts from the GAO's report to the Committee (GAO report
B-159451, July 17,1974):
ExoERPTs FROM REPORT TO THE COMMITTEE ON FOREIGN RELATIONS,
UNITED STATIC:', SENATE BY THE GENERAL ACCOUNTING OFFICE
DEPARTMENT OF DEFENSE STOCKPILING OF WAR RESERVE MATERIALS FOR
USE BY UNITED STATES ALLIES (11-159451)
We determined from DOD planning and programing docu-
ments that the approved force levels used to plan future
requirements included the estimated number of allied forces
that might need logistics support in future Asian hostilities.
Estimated allied requirements add to but do not replace U.S.
requirements.
DOD stocks of munitions and equipment have traditionally
been available for transfer to allies pursuant to appropriate
military assistance legislation, as well as for use by U.S.
Forces. Specific identification of war reserve stocks for pos-
sible future transfer to allies in DOD budget documentation
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planning began with the development of the fiscal year 1972
Defense program. Some available assets were allocated for
this purpose in fiscal year 1973. However, funds were not re-
quested in budget submissions to the Congress until fiscal year
1974.
Items held in reserve that are planned for potential allied
use are not segregated from other reserve stocks, and almost
all the same kinds of items are also required as war reserves
for U.S. Forces. If necessary, the war reserves for allied
forces could be used to support U.S. Forces.
DOD planners for fiscal year 1973 allocated $23 million of
its reserve assets toward the total allied requirement; for
fiscal year 1974, $494 million was allocated. For fiscal year
1975, $529 million of the total procurement request has been
proposed for application toward allied requirements. Some
of each of the following types of items are proposed to be
procured from the fiscal year 1975 funds.
Army
Small arms ammunition Mortar ammunition
Artillery ammunition Tanks 1
Tank recovery vehicles 1 Machine guns
Portable radar sets 1 Rocket launchers 1
Minor miscellaneous items Landing boats
Spares and repair parts
Air-to-ground munitions
Tanks, racks, adapters, and pylons
The stockpiling of defense assets for potential use by allies
adds another level to the DOD procurement base. We pre-
viously mentioned that new Army procurement will mod-
ernize U.S. active and reserve units and the older articles
being replaced will make up the war reserve stockpile. It is
conceivable that once these U.S. Forces have been modernized,
DOD will modernize the war reserve, and thus make large
quantities of defense assets excess and available for transfer
to foreign governments, including those for which the stock-
pile was originally intended.
More importantly, however, is the fact that DOD has the
authority to decide what portion of the DOD inventory will
make up the approved force requirement level. Since the war
i reserve for allies represents a portion of the total war reserve
in excess of U.S. approved force requirements, DOD can now
1 All new procurement of these items will go directly to U.S. Army active and
reserve units. The older pieces of equipment displaced by the new procurement
will go proper into the war beat could replace
Theefo e this pro-
curement, although labeled as allied reserve, modernizes the U.S. Army Force
while increasing the total assets available as war reserves.
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,stockpile older items that would immediately become excess
upon replacement. If a future emergency arises overseas,
DOD could reduce the approved force requirement level and
immediately make the war reserve for allies available as
,excess for transfer to whichever country may need them. All
this could be accomplished without adversely affecting the
total U.S. approved force requirements.
The Committee has approved a provision which would require (1)
that any stockpiling of military materials for foreign countries be
financed out of regular military assistance funds in all cases except
that of South Vietnam. In the case of South Vietnam, whose military
aid is financed through the Department of Defense budget, any stock-
piles would be paid for out of funds approved for such military aid;
and (2) that the cost of any materials already stockpiled which are
subsequently furnished to a foreign country be charged against funds
available for military assistance and, in the case of Vietnam, against
any ceiling established for military aid to that country.
The Committee believes that if a stockpile for foreign military
forces is warranted it should be justified as a part of the regular for-
eign aid program and paid for out of foreign aid funds.
Subsection (a) of the new section 515 provides that no funds, other
than funds made available under the Foreign Assistance Act or sec-
tion 401(a) (1) of Public Law 89-367 (80 Stat. 37), or any subsequent
corresponding legislation, may be obligated or expended for the pur-
pose of stockpiling any defense article or war reserve material, in-
cluding the acquisition, storage, or maintenance of any war reserve
equipment, secondary items, or munitions, if the article or material is
set aside, reserved, or in any way earmarked or intended for future
use by any foreign country.
Subsection (b) provides that the cost of any article or material set
aside., reserved, or in any way earmarked or intended by the Depart-
ment of Defense for future use by, for, or on behalf of South Vietnam,
shall be charged against the limitation specified in section 401 (a) (1)
of Public Law 89-367 (80 Sta.t. 37), or any subsequent corresponding
legislation, for the fiscal year in which the article or material is set
aside, reserved, or otherwise earmarked; and the cost of any such
article or material set aside, reserved, or in any way earmarked for
future use by, for, or on behalf of any other foreign country shall be
charged against funds authorized under chapter 2 of part II of this
Act for the fiscal year in which such article or material is set aside,
reserved, or otherwise earmarked. No article or material may be made
available to or for use by South Vietnam or any other foreign coun-
tary unless such article or material has been charged against the limita-
tion specified in section 401 (a) (1) of Public Law 89-367 (80 Stat. 37),
or any subsequent corresponding legislation, or against funds author-
ized for military grant assistance under the Foreign Assistance Act.
Section .13. Costs of Military Assistance Advisory Groups and Mis-
sions
This section adds a new section 516 to the Foreign Assistance Act
which requires that effective July 1, 1975, all costs of U.S. military
missions, groups, or similar organizations, including pay and allow-
ances of assigned military personnel, be charged against funds made
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available for the military assistance program. The purpose of the
provision is to insure that the funds approved by the Congress for
foreign military assistance shall bear the full costs of all activities
related to the military assistance program and thus accurately reflect
the true cost of the program to the taxpayer. As it is, the major costs
for military missions are now paid out of the Department of Defense
budget, not the military assistance account. For the 1975 fiscal year the
Department of Defense estimates that of the $74,418,100 to be spent
for operation of military missions and groups only $16,895,200 will
be paid from foreign military assistance funds. The remainder, $57,-
522,900, would be paid from appropriations for the Defense Depart-
ment, absent the enactment of this provision. Of the sixteen U.S.
military missions in Latin America, for example, there are only two
missions where any operating costs are paid from appropriations for
military aid, a total of $306,400 charged to MAP whereas Department
of Defense funds are used to pay $10,341,800 for operating costs of the
sixteen missions.
The following table gives cost data for each of the forty-three U.S.
military missions.
FISCAL YEAR 1975 COST DATA, DEPARTMENT OF DEFENSE MAAGS, MISSIONS,'AND MILITARY GROUPS
[In thousands of dollars]
Country
MAP
DOD
MAP
DOD
Japan____________________ 325.7
171.4
Belgium -----------------
213.7
209.6
Korea__________________ 3,243.4
8,145.2
Denmark -----------------
147.5
264.1
Pakistan_________________ 128.1
1.24.
Ethiopia_________________
1,207.9
2,180.4
Philippines_______________ 451.6
1, 122.9
France___________________
246.4
180.4
Thailand_________________ 984.7
8,965.8
Germany-----------------
785.7
1,003.3
U.S. Southern Command:
Greece___________________
769.6
1,368.5
Argentina____________________________
1,115.7
_
Iran-- -------------
1,153.3
6,216.0
Bolivia -----------------------------
996.8
Iltay_------------------ __
292.6
353.2
Brazil-------------------------------
1,933.6
Liberia___'_______________
509.8
408.3
Chile--------------------------------
626.5
Morocco_________________
_ 319.7
416.9
Columbia____________________________
803.6
Netherlands______________
146.7
226.5
Costa Rica_________________123.0
Norway------------------
142.0
187.0
Dominican Republic ---_ 190.6
172.8
Portugal_________________
168.1
322.7
El Salvador__________________________
334.9
Saudi Arabia___________-
291.4
3,337.1
Guatemala----------------------------
609.7
Spain____________________
313.7
907.5
Honduras____________________________
354.2
Tunisia________ _ .
222.4
233.6
Nicaragua____________________________
551.2
Turkey__________________
1,304.8
4,320.5
Panama_____________________________
323.1
Zaire____________________
564.6
397.1
Paraguay----------------------------
517.1
11.5. Pacific Command:
Peru___________________ 115.8
124.1
Cambodia ----------------
880.7
1,593.8
Uruguay --------------------------594.6
China---------------------
642.9
2,987.0
Venezuela_______________________1,160.9
India____________________
168.1
833.3
Indonesia----------------
963.7
1,454..7
The new section 516 provides that effective July 1, 1975, an amount
equal to each sum expended under any provision of law, other than sec-
tion 504 of the Foreign Assistance Act, with respect to any military
assistance advisory group, military mission, or other organization of
the United States performing activities similar to such group or mis-
sion, shall be deducted from the funds made available under section
504, and (1) if reimbursement of the amount is requested by the agency
of the United States Government making the expenditure, reimbursed
to that agency, or (2) if reimbursement is not requested, deposited
in the Treasury as miscellaneous receipts.
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Section 14. Termination of Authority-Phase Out of Military Grant
Assistance and Military Missions
Section 14 will phase out military grant assistance programs, other
than training, and U.S. military missions and groups over a period of
three years. The foreign aid bill approved by the Committee last year
would have phased out military grant assistance and military missions
and groups over a four year period, but the provision was deleted by
the Senate. Thus, section 14 reaffirms the policy endorsed by the Com-
mittee last year.
During the three year phase out period, countries now receiving
grant aid could obtain credit at a concessional interest rate of not less
than four percent, within certain limits. After September 30, 1977,
any grant assistance, other than training, for a country must be spe-
cifically authorized by Congress, as was done in the case of Israel last
year. Similarly, continuation of any military mission or group after
that date must also be authorized specifically by Congress. The provi-
sion also prohibits the training of foreign military forces outside the
United States after September 30, 1977 unless specifically authorized
by Congress.
The world of a quarter of a century ago, which spawned the foreign
military assistance program, bears little relation to the world of today.
The cold war is over. The United States is normalizing relations with
China and is pursuing a policy of detente with the Soviet Union. Yet
the policies of that era linger on in the military aid program. S. 3394
will phase out this relic of the past.
Under paragraph (1) of subsection (a) of the new section 517 the
President is required to gradually reduce assistance, other than mili-
tary training, so that, not later than September 30, 1977, no assistance,
other than training, shall be provided to a foreign country.
Under the new paragraph (2), deliveries could continue to be made
after that date on military grant aid for which obligations were made
prior to the cutoff date.
The new subsection (b) authorizes the President in each of the fiscal
years 1975, 1976 and 1977 to finance procurements of defense articles
and defense services, other than training, by any foreign country re-
ceiving defense articles or defense services during fiscal year 1974
under Chapter 2 of Part II of the Foreign Assistance Act on terms
providing for payment in United States dollars (1) of the value of
such articles and services which value shall not exceed during each
such fiscal year the value of such articles and services (other than mili-
tary training) furnished that country in fiscal year 1974 under Chap-
ter 2, (2) at a rate of interest of not less than four per centum a year,
and (3) within ten years after delivery of the defense articles or
rendering of the defense services.
The new paragraph (c) (1) phases out military missions and groups
by not later than September 30, 1977. By that date all the functions
of military assistance advisory groups or other organizations of the
United States Government performing similar activities in a foreiLrn
country shall be transferred to the Chief of the United States Diplo-
matic Mission to the country.
This provision is designed to cover the phaseout of all types of mili-
tary personnel assigned to foreign countries who are engaged in activi-
ties involving the foreign military assistance or sales programs. Many
members of the U.S. armed forces are now being sent abroad in con-
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37
nection with the military sales program, who are not formally assigned
to a military mission or group. The functions performed by these mili-
tary men, in training foreigners in the use and maintenance of arms
and equipment bought in the U.S., could be handled in most if not all,
cases by civilian technicians provided by the U.S. manufacturer. The
net effect of the current practice of using military instead of civilian
contract technicians, is simply to tie the U.S. Government even more
closely to the interests of the purchasing country. The use of U.S.
military personnel aboard in connection with the sales program is to
be phased out along with regular military missions and groups. After
September 30 1977 the sending of such personnel to a foreign country
must be specifically authorized.
For a number of years, the Committee has tried to reduce the num-
ber and size of U.S. military missions and groups abroad. There are,
for example, military missions to seven countries in. Western Europe
where grant aid programs were terminated years ago. The 43 groups
and missions now in existence are also top heavy with rank, as shown
in the list below. Cost data on missions and groups is shown in the
list under the section concerning the funding of these organizations.
Authorized personnel
Country Commander/Chief Grade Service Military Civilian
U.S. European Command:
Bellux, MAAG-------------- J. H. Egginton............. Colonel ......... .-_- USAF
Denmark, MAAG------------ T. H. Wilder-------------- Captain ------ __.... USN
Ethiopia, MAAG-------- ---- H. C. Yow-__-___-___---_. Brigadier general.... USA
France, MAAG------------- - - P. D. Blumenthal--------- . Colonel ------------- USA ?
Germany, MA.AG------------ J. J. Wagstaff------------- Majodr general---____ USA
Greece, JUSMAG---------- __ C. W. Ryder ............. ........?---------: ?-- USA
Iran, ARMISH-MAAG-------- D.Breit -----------------------do__-__--__.:. USAF
Italy, MAAG---------------- G. M. Johnson, Jr--------------- do_.----------- USAF
Liberia, LIBMISN----------- A. M. Buckner ............ Colonel------------- USA
Morocco, MIJSLO............ F. H. Smart--------------- do ------------- USAF
Netherlands, MAAG------- -- E. Saroch, Jr-------------- captain ------------- USN
Norway, MAAG------------- R. L. Herman -------- ___-_ Culonel------------- USAF
Portugal, MAAG------------- R. B. Erly-_._..... Rear Admiral __-.--- USN
Saudi Arabia USMTM_._---- J. G. Hill, Jr-.:::::::: Brigadiee general.... USA
Spain, JUSMh-MAAG------ ._ C. T. Baldwin------------- Major general ------- USA
Tunisia, TUSLO------------- W. N. Thomas ------------- Colonel ------------- USA
Turkey, JUSMMAT...... -_- J. V. Galloway------------- Major general ------- USA
Zaire, ZAMISH______________ H. Maliet__._------------- Colonel-.--.... ----- USA
7
1
7
1
80
5
7
2
26
7
46
9
192
16
11
2
16
---------
18
8
.-.------
6
1
11
3
133
2
38
15
8
146
28
20
._...__._.
U.S. Pacific Command:
Cambodia, MEDT----------- W. W. Palmer_______Brigadier general---- USA 77 ........ China (Taiwan), MAAG.___._ S. Nash____________Major general ------- USAF 166 i
India, ODR ----------------- J. D. Jordan .... --------- Colonel ------------- USAF 4 4
Indonesia, DLG------------- J. McCuen---------------------do------------- USA 45 5
Japan, MDAO--------------- R. N.Stoddard ----------------- do ------------ USA 7
1
Korea, JUSMAG------------- H. S. Cunningham--------- Major general -----_ - USA 397 65
Pakistan; OCR_____________- A. S. Cloninger___-_------- Colonel___USA 5
Philippines, JUSMAG........ J. R. Sadler--------------- Brigadier general.... USA 50 9
Thailand, JUSMAG__.___---- 1'. W. Mellen .............. Major general....... USA 258 3
U.S. Southern Command:
Argentina, MILGP----------- J. G. Waggener---------------- do-__--__------- USA 29 1
Bolivia, MILGP------- _----- R. T.Tiarno---------- _--- Cnlone------------- USA 29 2
Brazil, MILGP -------------- M. W. Kendall_ ---------- Major general ------- USA 40 6
Chile, MILGP------------- - R. E. Davis--------------- Captain ------------ USN 15 ..........
Colombia, MILGP----------- M. Elston_________________ Colonel__USAF 24 1
Costa Rica, MILGP---------- N.Smith- ________________ Lieutenantcolonel_-- USA 4 ---------
Dominican Republic, MAAG __ E. Valdes________________ colonel ------------- US 11 ----------
El Salvador, MILGP---------- R. M. Gomez_____________ Lieutenant colonel--- USA A 10 _-:_.--_--
Guatemala, MILGP---------- J. P. Rice ----------------- Colonel_____________ USA 19 ----------
Honduras, MILGP------ ----- A. L.Sanderson ________________do------------- USA 11 _ -------
Nicaragua, MILGP--------- _. S. F. Little, Jr--------------------------------- USA 17 ---------1
Panama, MILGP------------ T. A. Austin ---------- _-------- d?------------- USA
Paraguay, MILGP----------- A. Nisbet, Jr------------------d0------------- USA 15'----------
Peru, MAAG---------------- R. D. Brewington --------------- do ------------- USAF 7 ----------
Uruguay, MILGP------------ R. C. Kerr--------------------- d0------------- USAF 36 ---------
-Venezuela, MILGP----------- F. J. Bush ------ ------------- -d0.......... ---- USA
Total --------------------------------------------------------------------------.- 2,078 223
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The following list provides data on organizations which are not
technically classified as military missions or groups under current
practices of the Departmm'Te1Jt of Defense, as well as information con-
cerniug countries where responsibility for military assistance and
sales matters are already being carried out by defense attaches:
Annual costs
Country Ranking officer
Number of
personnel el
Number of
contract
personnel
United States
Host govern-
govern-
merit reim
bursement
Iran:
Army____________ Col. Howard Moore________________182
N
------------
950
$4
000
$4
950
000
avy ------------ Comdr. Fred Wood___________________
Ai
F
20
------------
,
,
611,000
,
,
611
000
r
orce --------- Col. Rufus Johnston------------------
Iran Air Force:
250
------------
5,673,000
,
5,673,000.
F-4-------------------do----------------------------
C
130
43
------------
1,376,000
1
376
000
-
---------------do----------------------------
15
-----------
425,000
,
,
425,000
U.S. ARMY CORPS OF ENGINEERS I
Saudi Arabia_________ Col. Win. L. Durham-----------------
79
125
$36,443,830
$36,443,83
U.S. PROJECT MANAGER FOR THE MODERNIZATION OF THE SAUDI ARABIAN NATIONAL GUARD L (AUTHORITY:
FMS ACT, AS AMENDED)
Saudi Arabia --------- Col. Thomas A. Mort________________ 16 ------------ 341, 997 341, 997
DEFENSE ATTACHES WITH RESPONSIBILITY FOR ADMINISTRATION OF SECURITY ASSISTANCE 2
Austria -------------- Col. G. K. Tro ------------------
11
Afghanistan _________ Col. Elton L. eston__---------------
A
12
ustralia ------_______ Col. Harry A. Witt_________-------
Fi
l
13
n
and -------------- Col. Wallace G. Matthews-------------
20
-------------
Ghana -----------_-_ Col. Jack A. Dodds_____
Iv
C
4
--------------------------------------
ory
oast__________ Col. Rayburn L. Smith, Jr-------------
J
i
7
--------------------------
ama
ca -____________ Lt. Col. Mervyn J. Burns____________
J
d
4
----------
--------------------------------------
or
an_______________ Col. Clarence C. Mann __Lebanon
Col
F
t J
H
-------------
6
-------------------------------------
-------------
.
ores
.
unt------
Malaysia
Col
Louis Stick
J
-------
------
11
--------------------------------------
_____________
.
ney,
r--
__
-
Mexic
8
------------------------------------
o
_______________ Brig. Gen. Richard E. Cavazos_________
14
Nepal_______________ Col. Stephen A. Nemeth______________
N
Z
2
---------------------------
ew
ealand___:_____ Col. Will W. Leesburg_______________
Ni
5
--------
--------------------------
geria___.________ Cal. James H. Davis
S
di A
bi
5
------------
--------------------------------------
au
ra
a ---- _---- Lt. Col. Win. A. Fifer-----------------
Sene
l
6
---------- -------------------------
ga
--___________ It. Cot. David H. Anderson------------
Sin
a
5
---------------------------------------
g
pore ------______ Col. Rudolf W. Kogan ----------------
Sri l
a
k
10
-------------------------------------
_
n
a____________ Comdr. Ralph L.Seger, Jr -------------
Sweden
C
l
J
h
If
3
--------------------------------------
--------------
o
.
n
o
. Burman------------- Switzerland-________ Col. Edward P. Freeman--- ----------
U
i
d
13
7
-----
--------------------------------------
n
te
Kingdom______ Rear Adm. Wm. H. Livingson---------
17
Vietnam ------------- Mag Gen. John E. Murray-----------
20
Yugoslavia ----------- Col. John W. Klingelhoefer____________
9
-------------------------------------
r The cost of operating and maintaining TAFT's, U.S. Project manager, and U.S. Corps of Engineers is fully reimbursed
by the recipient ggovernment.
2 Defense attach6 offices (DAD)- In addition to their normal duties, defense attach6s reflected above have some respon-
sibility for administration of security assistance. Osca ise the preponderance of ti.na daaatad to other duties, annual costs
for the security assistance functions is not usually isolated.
Note: In addition to the organizations listed above,, the military departments assign personnel on a temporary-duty
basis to provide technical assistance to an ally or friendly fareign country. This function, organized as a mobile training
team (MTT) differs from a technical assistance field team (TAFT), in that the MTT's are of much shorter duration. The
cost of the MTT's are most often reimbursed by the recipient governmant and often constitutes a part of a larger sales,
case.
New paragraph (2) limits the number of military attaches that
can be assigned to a U.S. diplomatic mission. It provides that on and
after October 1, 1977, the total number of military attaches assigned
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39
to the United States diplomatic mission shall not exceed by more than
25 percent the total number of military attaches authorized to be
assigned to that mission on June 30, 1974. The purpose of this pro-
vision is to prevent the ballooning of the size of military attache
groups as the military missions and groups are phased out and tht'i^
residual functions assumed by attaches.
New paragraph (3) requires that on and after October 1, 1977, no
military assistance advisory group, military mission, or other such
organization of the United States Government in a foreign country
shall be established or continued unless the group, mission, or organiza-
tion is authorized by law specifically for that country.
Subsection (b) makes appropriate changes in the Foreign Assist-
ance Act effective on October 1, 1977, in order to carry out the policy
encompassed in the preceding provisions.
Section 15. Termination of Military Assistance to South Korea
This section, initiated by Senator Church, places ceilings on the
amounts available in each of the fiscal years 1975, 1976, and 1977 for
military grants and credit sales to South Korea and requires a phase-
out of all military grant and credit assistance to that country over the
three-year period. The combined military grant/credit ceiling set by
the Committee for fiscal year 1975 is $133.95 million-three-fourths of
the total grant/credit program is fiscal year 1974. Within this fiscal
1975 ceiling, no more than $91.5 million may be used for grants,
including grants of excess defense articles, three-forths of the grant
program in fiscal year 1974. Beyond fiscal year 1975, the Committee
provided for a steady phase-out of the grant program by placing addi-
tional ceilings of $61.0 million on fiscal year 1976 grants (one-half the
fiscal year 1974 grant level) and $30.5 million on fiscal year 1977 grants
(one-fourth the fiscal year 1974 grant level). The table below shows, in
millions of dollars, the fiscal year 1974 military aid program to South
Korea, the proposed fiscal year 1975 program, and the ceilings set by
the Committee :
CEILING FOR SOUTH KOREA.
jln millions of dollars and fiscal years]
1974
program
1975
request 1975
1976..... 1977
121.9
200.8 91.5
61.0 30.5
Grants-----------------------?-------
Military assistance program------------------
---------------
defense articles
E
(78.1
(21
8
(161.5).-------------------------?-------
(20.8)------------------------------------
-------
xcess
MAP supply operations----- --------------
--------------- ----------------
Credit sales
.
(22.0)
(18.5)------
52.0 42.45
----------
28.3 14.15
-----
Total ------------------------------------
178.6
252.8 133.95
89.3 44.65
The Committee wishes to stress that these are ceilings only and in
no way constitute an endorsement by the Committee of aid to Korea
at these levels.
The Committee took this action because of its serious concern about
the increasingly repressive measures of the South Korean govern-
ment.
In addition, the Committee was mindful of the GAO recommenda-
tion that the United States "give more recognition to Korean finan-
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Fcial capabilities" and that a plan be devised "for phasing out U.S.
assistance."
Section 16. Authorization for Security Supporting Assistance
This section amends section 532 of the Act to authorize $675,000,000
for security supporting assistance activities in fiscal year 1975. This
authorization includes funds for the economic assistance portions of
the Middle East programs itemized and described in subsequent sec-
tions of the bill.
The fiscal year 1975 program proposed by the Executive Branch,
as modified by the Committee, is shown in the following comparative
table :
SECURITY SUPPORTING ASSISTANCE
[In thousands of dollars]
Thailand---------
Philippines
----------------
gYPt
10, 600
49,300
7,400
700
--------------
Isr
l
-------------------------------------------------
250
000
ae
Jordan ----------------------------------------------------------------
50,000
0,000
50,000
,
339,500
Malta ta
M
50,000
55,000
77,500
------------------------------------------------------------
S
ain
14,383
9,500
9
500
p
-------------------------------------
N
For
C
3,000
3,000
,
3
000
.
ces
yprus (UNFICYP)------------------------------------ _
Interre
io
l
2,400
1,600
,
4
800
g
na
support costs________________________________________
17,276
3,000
,
2,700
Subtotal_________________________________
I
Indochina
r
196,959
130,200
687
000
p
ogram ---
425,392
(r)
,
z(r)
Total__________________ -------- ------------------------
Less-D
bli
ti
622,351
130,200
,
687
000
eo
ga
onsand recoveries_________________________________
-22,351
-17
700
,
-12,000
New obligationalauthority ----------------------------
600,000
112,500
675,000
Indochina programs authorized separately under "Indochina relief and reconstruction" in fiscal year 1974 and fiscal
year 1975.
Section 17. Transfers Between Accounts
Subsection (a) amends section 610 of the Foreign Assistance Act
in two major respects.
Paragraph (1) changes the transfer authority contained in section
610(a) to restrict its use only to transfers of funds into economic
assistance programs. Transfers of funds appropriated for economic
assistance programs for use in the military assistance program would
be prohibited.
Paragraph (2) of subsection (a) adds a new subsection at the end
of Section 610 which allows the President to transfer military assist-
ance funds allocated to a country under Section 653 of the Act, other
than South Vietnam, Cambodia, and Laos for which separate transfer
authority is provided in the new section 809, for use in development
assistance programs within that country. Such transfers are author-
ized only within a country and not between overall program accounts.
Thus, funds allocated for military assistance in one country cannot
be shifted for use in development assistance programs in another
country.
Subsection (b) amends section 614 of the Foreign Assistance Act to
prohibit use of the waiver authority of that section to waive the limita-
tions on transfers contained in section 610 (a) of the Act.
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Section 18. Repeal of prohibition on aid to Greece
This section repeals section 620.(v) of the act which prohibits assist-
ance to Greece under the act and sales to Greece under the Foreign
Military Sales Act except in the case of a Presidential determination
that such assistance or sales are justified for overriding national secu-
rity reasons.
Section 620(v) was adopted by the Congress in 1971 as an expres-
sion of congressional concern over the lack of democratic government
in Greece. With the recent return of the Greek Government to civilian
control and the restoration of constitutional forms, the committee be-
lieves the provision has served its purpose and should be repealed.
Section 19. Limitation upon assistance to or for Chile
This section provides that the total amount of assistance that may
be made available for Chile under this or any other law during fiscal
year 1975 may not exceed $55,000,000, none of which may be made
available for military assistance (including security supporting assist-
ance, sales, credit sales, or guaranties or the, furnishing by any means
of excess defense articles or items from stockpiles of the Department
of Defense). The executive branch requested a total aid package for
Chile amounting to $84.9 million, of which $21.3 million was for mili-
tary assistance and credit sales.
These reductions and limitations on assistance to Chile are an ex-
pression of the Committee's concern about the continuing disregard
for the protection of human rights in Chile.
Section 00. Reconstruction, Relief, and Rehabilitation
Subsection (a) amends section 203 of the Foreign Assistance Act
to authorize use of the balance of repayments on foreign assistance
loans for the 1975 fiscal year to be used for economic development pro-
grams and reconstruction in the draught-stricken nations of Africa,
relief and rehabilitation in Bangladesh and Cyprus, and in general
disasters which require large, scale relief and rehabilitation efforts
which cannot be met adequately with the funds made available for the
contingency fund. This will result in an additional $110,000,000 being
made available for these purposes in FY 1975 which, otherwise, would
be returned to the Treasury.
Subsection (b) amends section 639B of the Act by adding at the end
thereof the following : "Notwithstanding any prohibitions or restric-
tions contained in this or any other Act, the President is authorized
to furnish assistance on such terms and conditions as be may deter-
mine, for reconstruction and economic development programs in the
drought-stricken nations of Africa."
Subsection (c) adds a new section 639C which, in the new subsection
(a), contains a finding of Congress that the recent flooding in the
People's Republic of Bangladesh, and the civil and international strife
in the Republic of Cyprus, have caused great suffering and hardship
for the peoples of the two Republics which cannot be alleviated with
their internal resources. It further requires that the President shall
make every effort to develop and implement programs of relief and
rehabilitation, in conjunction with other nations providing assistance,
the United Nations, and other concerned international and regional
organizations and voluntary agencies, to alleviate the hardships
caused in these two nations.
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The new subsection (b) authorizes the President to furnish assist-
ance on such terms and conditions as he may determine, for disaster
relief, rehabilitation, and related programs m the People's Republic
of Bangladesh and the Republic of Cyprus.
Subsection (d) amends the Act to add a new section 6,391) which
authorizes the President to furnish assistance, on such terms and con-
ditions as he mad determine for disaster relief, rehabilitation, and re-
lated programs xu the case of disasters that reguire large scale relief
,and rehabilitation efforts which cannot be met adequately with the
funds available for obligation under section 451 of the Act.
Subsection (e) amends the Act by adding a 'new section 639E which
provides that assistance for the purposes set forth in sections 639A,
?639B, 639C, and 639D shall be distributed wherever practicable under
the auspices of and by the United Nations and its specialized agencies,
other international organizations or arrangements, multilateral insti-
tutions, and private voluntary agencies.
Section 21. Access to Certain Military Bases Abroad
This section would add. a new section 659 at the end of the Foreign
Assistance Act of 1961 to make permanent law what is now section 29
of the Foreign Assistance Act of 1973 which was effective only for
fiscal year 1974.
The purpose of this provision is to insure that American newsmen
have access to overseas base facilities constructed or maintained by
United States funds and used by U.S. personnel to carry out military
operations. The American public, consistent with security require-
ments, has a legitimate right to be kept informed about activities
conducted from such facilities and they rely on the news media to
perform this service.
This provision, though general in scope, resulted from U.S. newsmen
being denied access to bases in Thailand, constructed with the tax
dollars of U.S. citizens, which are manned by U.S. military personnel.
The Committee believes that the provision enacted last year has
achieved results and has decided that it should be made permanent.
Section 22. Prohibiting Police Training
Section 22, initiated by Senator Abourezk, would add a new section
,660 to the Foreign Assistance Act which would prohibit use of foreign
assistance funds to provide training, advice or financial support for
police, prison, or other law enforcement forces of a foreign country.
The prohibition will not apply:
'(1) with respect, to assistance rendered under section 515(e) of the
Omnibus Crime Control and Safe Streets Act of 1968, or with respect
to any authority of the Drug Enforcement Administration or the
Federal Bureau of Investigation which relates to crimes of the, na-
ture 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 con-
ducting, any such program.
,This provision will expand the prohibition in section 112 of the
IF oreign Assistance Act of 1961 which was adopted by Congress last
vear. As approved by the Committee and passed by the Senate the.
provision that became section 112 would have prohibited all training
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of foreign police and related forces. However, in conference a com-
promise was reached with the House which applied the prohibition
only to training. This new provision, in effect, will carry out the objec-
tive endorsed by the Senate last year in S. 2335. The Committee's com-
gents on the prohibition proposed last year bear repeating here.
United States participation in the highly sensitive area of
public safety and police training unavoidably invites criti-
cism from persons who seek to identify the United States with
every act of local police brutality or oppression in any coun-
try in which this program operates. It matters little whether.
the charges can be substantiated, they inevitably stigmatize
otal United States foreign aid effort. In undeveloped,
the total"
areas of the world, the costs of Public safety programs are
better left to be underwritten from local resources and the
United States assistance effort directed toward less sensi-
tive areas of social or economic development.
We have troubles enough with police/community relations
in our own society. The Committee believes that our govern-
ment's efforts would be better directed to this, and our own
crime problem, rather than trying to teach foreigners how
to run their police departments.
The prohibition is not intended to affect narcotics training by the
Drug Enforcement Administration or to be interpreted as barring
the routine sharing with foreign governments of information on in-
ternational crimes, hijacking, terrorist activities, and the like.
Section 112 of the Foreign Assistance Act, which is superseded by
this prohibition, is repealed.
8eotion 23. Limitations Upon Intelligence Activities
Section 25 adds a new section 661 to the -foreign Assistance Act
which prohibits use of any appropriated funds by or on behalf of the
Central Intelligence Agency or any other agency of the United States
Government for the conduct of operations in foreign countries pur-
suant to section 1.02(d) (5) of the National Security Act of 1947 (50
U.S.C. 403), other than operations intended solely for obtaining neces-
sary intelligence. Notwithstanding this limitation, the President may
authorize and direct that any operation in a foreign country be re-
sumed, or that any other operation in a foreign country be initiated,
and funds may be expended therefor, if, but not before, he (1) fiznds
that such operation is important to the national. security, and (2)
transmits an appropriate report of his finding, together with an ap-
propriate description of the nature and scope of such operation, to
the committees of the Congress having jurisdiction to monitor and re-
view the intelligence activities of the United States Government.
Under subsection (b), the provisions of the restriction will not ap-
ply during military operations by the United States under a .decla-
ration of war approved by the Congress or an exercise of powers by
the President under the War Powers Resolution.
Section 24. Grant of Presidential Waiver Authority
Duren) (1) By not later than September 30, 1977, all the functions of a
military assistance advisory group, a military mission, or other or ani-
zation of the United States Government in a foreign country per orm-
ing activities similar to any such group or mission, shall be transferred
to the Chief of the United States Diplomatic Mission to that.,country.
Upon the transfer of such functions, .that group, mission, or organiza-
tion, as the case may be, shall cease to exist.
(2) On and after October 1, 1977, the total number of military
ataches assigned or detailed to the United States Diplomatic Mission
of a foreign country shall not exceed by twenty-five per centum the
total number of military attaches authorized to be assigned or detailed
to that mission on June 30, 1,974.
(3) On and after October 1, 1977, no military assistance advisory
group, military mission, or other organization of the United States
Government in a foreign country shall be established or continued un-
less such group, mission, or organization is authorized by law specifi-
cally for that country.
Effective October 1, 1977 the following changes are made:
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[CIIArTIm 1-POLICY] Chapter.I-Providing Military Training
Sec. 502. [Utilization of Defense Articles and Services] Provid-
ing Military Training.
[Defense articles and defense services] Military training to any
country shall be furnished solely for internal security, for legitimate
self-defense, to permit the recipient country to participate in regional
or collective arrangements or measures consistent with the Charter of
the United Nations, or otherwise to permit the recipient country to
participate in collective measures requested by the United Nations for
the purpose of maintaining or restoring international peace and secu-
rity, or for the purpose of assisting foreign military forces in less
developed friendly countries (or the voluntary efforts of personnel
of the Armed Forces of the United States in such countries) to con-
struct public works and to engage in other activities to the economic
and social development of such friendly countries. [It is the sense of
the Congress that such foreign military forces should not be main-
tained or established solely for civic action activities and that such civic
action activities not significantly detract from the capability of the
military forces to perform their military missions and be coordinated
with and form part of the total economic and social development
effort.]
CIIAPTER 2-[MILITARY ASSISTANCE] Military Training
[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 coun-
try 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
grant) any defense article or defense service; or
(2) assigning or detailing members of the Armed Forces of
the United States and other personnel of the Department of De-
fense to perform duties of a non-combatant 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 bona fide reason, other than the shortage of funds,
for providing such articles on a loan basis rather than on a grant
basis ;
(2) 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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(5) 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 de-
preciated 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
uvide 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
(13) to any defense article or defense service, or portion thereof,
acquired with funds appropriated for military assistance under
this Act.]
[Sec. 504. Authorization.
(a) There is authorized to be appropriated to the President to carry
out the purposes of this part not to exceed $512,500,000 for the fiscal
year 1974: Provided, That funds made available for assitance under
this chapter (other than training in the United States) shall not be
used to furnish assistance to more than thirty-one countries in any
fiscal year: Provided further, That none of the funds appropriated
pursuant to this subsection shall be used to furnish sophisticated
weapons systems, such as missile systems and jet aircraft for military
purposes, to any underdeveloped country, unless the President deter-
irmines that the furnishing of such weapons systems is important to the
rnationa.l security of the United States and reports within thirty days
each such determination to the Congress. Amounts apropriated under
this subsection are authorized to remain available until expended.
Amounts appropriated under this subsection shall be available for
cost-sharing expenses of United States participation in the military
headquarters and realted agencies program.
(b) In order to make sure that a dollar spent on military assistance
to foreign countries is as necessary as a dollar spent for the United
States military establishment, the President shall establish procedures
for pra.graming and budgeting so that. programs of military assistance
come, into direct competition for financial support with other activities
and programs of the. Department of Defense.]
[Sec. 505. Conditions of Eligibility.
(a) In addition to such other provisions as the President may re-
gnire, no defense articles shall be furnished to any country on a grant
basis unless it shall have agreed that.-
(1) it will not, without the consent of the President-
(A) permit, any use of such articles by anyone not an officer,
employee, or agent of that country,
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(B) transfer, or permit any officer, employee, or agent of
that country to transfer such articles by gift, sale, or other-
wise, or
(C) use or permit the use of such articles for purposes
other than those for which furnished;
(2) it will maintain the security of such articles, and will pro-
vide substantially the same degree of security protection afforded
to such articles by the United States Government;
(3) it will., as the President may require, permit continuous ob-
,servation and review by, and furnish necessary information to,
representatives of the United States Government with regard to
the use of such articles; and
(4) unless the President consents to other disposition, it will
return to the United States Government for such use or disposi-
tion as the President considers in the best interests of the United.
States, such articles which are no longer needed for the purposes
for which furnished.
(b) No defense articles shall be furnished on a grant basis to any
country at a cost in excess of $3,000,000 in any fiscal year unless the
President determines-
(1) that such country conforms to the purposes. and principles
of the Charter of the United Nations ;
(2) that such defense articles. will be utilized by such country
for the maintenance of its own defensive strength, or the defensive
strength of the free world;
(3) that such country is taking all reasonable measures, consist-
ent with its political and economic stability, which may be needed
to develop its defense capacities; and
(c) The President shall regularly reduce and, with such deliberate
:speed as orderly procedure and other relevant considerations, includ-
ing prior commitments, will permit, shall terminate all further grants
of military equipment and supplies to any country having sufficient
wealth. to enable it, in the judgment of the President, to maintain and
equip its own military forces at adequate strength, without undue
burden to its economy.
(d) Any country which hereafter uses defense articles or def e rso ,
,services furnished such country under this Act, the Mutual Security
Act of 1954, as amended, or any predecessor foreign assistance Act, in
substantial violation of the provisions of this chapter or any agree-
ments entered into pursuant to any of such Acts shall be. immediately
ineligible for further assistance.
(e) In considering a request for approval of any transfer of any
weapon, weapons system, munitions, aircraft, military boat, military
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
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 For-
eign relations of the Senate in writing of each such intended consent,
the justification for giving such consent, the defense article for which
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he intends to give his consent to be so transferred, and the foreign
country to which that defense article is to be transferred. In addi-
tion, 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 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.
(f) Effective 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 inter-
national educational and cultural exchange activities in which that
country participates under the programs authorized by the Mutual
Educational and Cultural Exchange Act of 1961.]
Sec. 503. General Authority.
The President is authorized to f w rzish, on, such. terms and conditions
consistent with this Act as the President may determine, military
training to any foreign country or international organization. Funds
for such, training shall be appropriated for each fiscal year pursuant
to authorization for that fiscal year. After September 30,1977, no such,
training shall be conducted outside the United States except by specific
authorization of law.
* * * * * * *
Sec. 511. Considerations in Furnishing Military [Assistance]
Training.
Decisions to furnish [military assistance] military training made
under this part shall take into account whether [such assistance] such
training will-
(1) contribute to an arms race ;
(2) increase the possibility of outbreak or escalation of conflict;
or
(3) prejudice the development of bilateral or multilateral. arms
control arrangements.
Sec. 636. Provisions on Uses of Funds.
(g) Funds made available for the purposes of part II shall be avail-
able for-
(1) administrative, extraordinary (not to exceed $300,000 in
any fiscal year), and operating expenses incurred in furnishing
[defense articles and defense services on a grant or sales basis]
military training by the agency primarily responsible for admin-
istering part II;
* * * * * *
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Sec. 644. Definitions.
As used in this Act-
(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 Government in repairing, rehabilitating, or modifying
the article, except that for purposes of section 632(d) such
actual value shall not be taken into account] ;
(1) [ (2) ] with respect to a [nonexcess] defense article de-
livered from inventory to foreign countries or international
organizations under this Act, the acquisition cost to the
United States Government, adjusted as appropriate for con-
dition and market value ;
(2) [(3)] with respect to a [nonexcess] defense article de-
livered from new procurement to foreign countries or interna-
tional organizations under this Act, the contract or produc-
tion costs of such article; and
(3)[(4)] with respect to a defense service, the cost to the
United States Government of such service.
Sec. 518. Termination of Military Assistance to South Korea.
(a) The total of (1) the amount of funds obligated under this chap-
ter to furnish assistance to South Korea, and (2) the value of excess
defense articles furnished to South Korea under this chapter, shall not
exceed-
(A) $91,500,000 during the fiscal year 197-61-
(B) $1,000,000 during the fiscal year 1976; and
(C) $30,500,000 during the fiscal year 1977.
(b) The aggregate total of credits extended, including participa-
tions in credits, and the principal amount of loans guaranteed, under
the Foreign Military Sales Act with respect to South Korea shall not
exceed-
(1) $42,450,000 during the fiscal year 19751-
(2) $28,000,000 during the fiscal year 1976; and
(3) $14,150,000 during the fiscal year 1977.
(c) On and after October 1, 1977, no assistance shall be furnished
South Korea under this chapter, and no credits, including partic-
ipations in credits, shall be extended, and no loans shall be guaranteed,
under the Foreign Military Sales Act with respect to South Korea.
The preceding sentence shall not apply with respect to funds obligated
prior to such date.
Sec. 532. Authorization.
There is authorized to be appropriated to the President to carry out
the purposes of this chapter [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] for fiscal year 1975 not to exceed $675,000,000: Provided,
That where commodities are furnished on a grant basis under this
chapter under arrangements which will result in the accrual of pro-
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ceeds to the Government of Vietnam from the sale thereof, arrange-
ments should be made to assure that such proceeds will not be budgeted
by the Government of Vietnam for economic assistance projects or
programs unless the President or his representative has given prior
written approval. Amounts appropriated under this section are author-
ized to remain available until expended. None of the funds authorized
by this section shall be made available to the Government of Vietnam
unless, beginning in January 1971, and quarterly thereafter, the Pres-
ident of the United States shall determine that the accommodation
rate of exchange, and the rate of exchange for United States Govern-
ment purchases of piasters for goods and services, between said Gov-
ernment and the United States is fair to both countries.
Sec. 610. Transfer Between Accounts.
(a) Whenever the President determines it to be necessary for the
purposes of this Act, not to exceed 10 per centnm of the funds made
available for any provision of this Act (except funds made available
pursuant to title IV of chapter 2 of part I) may be transferred to, and
consolidated with, the funds made available for any other provision
(except funds made available under Chapter II of part II of this Act)
of this Act, and may 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 20
per centum of the amount of funds made available for such provision.
(b) The authority contained in this section and in sections 451, 506,
and 614 shall not be used to augment appropriations made available
pursuant to sections 636(g) (1) and 637 or used otherwise to finance
activities which normally would be financed from appropriations for
administrative expenses. Not to exceed $9,000,000 of the funds appro-
priated under section 402 of this Act for any fiscal year may be
transferred to and consolidated with appropriations made under sec-
tion 637(a) of this Act for the same fiscal year, subject to the further
limitation that funds so transferred shall be available solely for addi-
tional administrative expenses incurred in connection with programs
in Vietnam.
(c) Any funds which the President has notified Congress pursuant
to section 6,53 that he intends to provide in military assistance to any
country may be transferred to, and consolidated with, any other funds
he has notified Congress pursuant to such, section that he intends to
provide to that country for development assistance purposes.
* * * * * * *
Sec. 614. Special Authorities.
(a) The President may authorize in each fiscal year the use of funds
made available for use under this Act and the furnishing of assistance
under section 506 in a total amount not to exceed $250,000,000 and the
use of not to exceed $100,000,000 of foreign currencies accruing under
this Act or any other law without regard to the requirements of this
Act, any law relating to receipts and credits accruing to the United
States, any Act appropriating funds for use under this Act, or the
Mutual Defense Assistance Control Act of 1951 (22 U.S.C. 1611 et
seq.), in furtherance of any of the purposes of such Acts, when the.
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President determines that such authorization is important to the se-
curity of the United States. Not more than $50,000,000 of the funds
available under this subsection may be allocated to any one country in
any fiscal year. The limitation contained in the preceding sentence
shall not apply to any country which is a victim of active Communist
or Communist-supported aggression. The authority of this section
shall not be used to waive the limitations on transfers contained in
section 610 (a) of this Act.
(b) Whenever the President determines it to be important to the
national interest, he may use funds available for the purposes of chap-
ter 4 of part I in order to meet the responsibilities or objectives of the
United States in Germany, including Wrest Berlin, and without regard
to such provisions of law as he determines should be disregarded to
achieve this purpose.
(c) The President is authorized to use amounts not to exceed
$50.000,000 of the funds made available under this Act pursuant to his
certification that it is inadvisable to specify the nature of the use of
such funds, which certifications shall be, deemed to be a sufficient
voucher for such amounts. The President shall promptly and fully
inform the Speaker of the Ho use of Representatives and the chairman
and ranking minority member of the. Committee on Foreign Relations
of the Senate of each use of funds under this subsection.']
* * * *
[(p) No assistance shall be furnished under this Act to the United
Arab Republic unless the President finds and reports within thirty
days of such finding to the Committee on Foreign Relations of the
Senate and the Speaker of the House of Representatives that such
assistance is essential to the national interest of the United States,
and further that such assistance will neither directly nor indirectly
assist aggressive actions by the United Arab Republic.]
[(v) No assistance, shall. be furnished under this Act, and no sales
shall be made nuclei' the Foreign Military Sales Act, to Greece. This
restriction may be waived when the President finds that overriding
requirements of the national security of the United States justify
such a waiver and promptly reports such finding to the Congress in
writing, together with his reasons for such finding. Notwithstanding
the preceding sentence, in no event shall the aggregate amount of (1)
assistance furnished to Greece under this Act, and (2) sales made to
Greece under the Foreign Military Sales Act, in any fiscal year, ex-
ceed the aggregate amount expended for such assistance and such sales
for the fiscal year 1971.]
* * * * * * *
Sec. 203. Fiscal Provisions.
Not more than 50 per centnrn of dollar receipts scheduled to be paid
during each of the fiscal years 1974 and 1975 from loans made pur-
suant to this part and from loans made under predecessor foreign as-
sistance legislation are authorized to be merle available for each such
fiscal year for use for purposes of making loans under chapter 1 of this
part. The balance of such receipts for fiscal year 1973 is authorized to
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be made available solely for the purposes of sections 639B, 639C, and
(;:39D of this Act. Such receipts shall remain available until expended.
Sec. 639. Famine and Disaster Relief.
No provision of this Act shall be construed to prohibit assistance to
any country for famine or disaster relief.
Sec. 639A. Famine and Disaster Relief to the African Sahel.
(a) The Congress affirms the response of the United States Gov-
ernment in providing famine and disaster relief and related assist-
ance in connection with the drought in the Sahelian nations of Africa.
'I'he President shall report to Congress as soon as possible on solutions
to this problem of famine and further propose how any of these solu-
tions may be carried out by multilateral organizations.
(I>) 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,
$25,00,000 to remain available until expended, for use by the Presi-
dent, under such terms and conditions as he may determine, for emer-
gency 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.
Vie Congress supports the initiative of the TTnited States Govern-
aiient. in undertaking consultations and planning with the countries
,concerned, with other nations providing assistance, with the United
- at.ions, and with other concerned international and regional organi-
:cations, toward the development and support of a comprehensive long-
2-1
term African Sahel. development program.
Notwithstanding any prohibitions or restrictions contained in this
or and other Act, the President is authorized to furnish assistance on
sack terms and conditions as he may determine, for reconstruction and
economic development programs in the drought-stricken nations of
A frica.
See. 639C. Relief and Rehabilitation in Bangladesh and Cyprus.
(a) The Congress finds that the recent flooding in the People's Re-
public of Bangladesh, and the civil and international strife in the Re-
pabtic of Cyprus, have caused great suffering and hardship for the
peoples of the two Republics which cannot be alleviated with their
internal resources. The President shall make every effort to develop
and implement programs of relief and rehabilitation, in conjunction
with. other nations providing assistance, the United Nations, and other
concerned international and regional organizations and voluntary
agencies, to alleviate the hardships caused in these two nations.
(b) Notwithstanding any prohibitions or restrictions contained in
this or any other Act, the President is authorized to furnish assistance
on, such terms and conditions as he may determine, for disaster relief,
rehabilitation, and related programs in the People's Republic of Bang-
ladesh. and the Republic of Cyprus.
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Sec. 639D. 'Disaster Relief and Rehabilitation.
Notwithstanding any prohibitions or restrictions contained in this
or any other Act, the President is authorized to furnish assistance, on
such terms and conditions as he may determine for disaster relief, re-
habilitation, and related programs in the case of disasters that require
large-scale relief and rehabilitation efforts which cannot be met ade-
quately, with, the funds available for obligation under section 451 of
this Act.
Sec. 639E. Internationalization of Assistance.
Assistance for the purposes set forth in sections 639A, 639B 639C,
and 639D shall be distributed wherever practicable under the auspices
of and by the United Nations and its specialized agencies, other inter-
national organizations or arrangements, multilateral institutions, and
private voluntary agencies.
Sec. 659. Access to Certain Military Bases Abroad.
Now of the funds authorized to be appropriated for foreign assist-
ance (including foreign military sales, credit sales, and guaranties)
under any law may be used to provide any kind of assistance to any
foreign country in which a military base is located if-
(1) such base was constructed or is being maintained or op-
erated with, funds furnished by the United States;
(0) personnel of the United States carry out military opera-
tions 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.
FOREIGN ASSISTANCE ACT OF 1973
[ACCESS TO CERTAIN MILITARY BASES ABROAD]
[Sue. 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-
(1) such base was constructed or is being maintained or oper-
ated with funds furnished by the United States; and
(2) personnel of the United States carry out military opera-
tions 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. 660. Prohibiting Police Training.
(a) Nome of the funds made available to carry out this Act, and
none of the local currencies generated under this Act, shall be used
to provide training or advice, or provide any financial support, for
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police, prisons, or other laic enforcement forces for any foreign gov-
ernment or any program of internal intelligence or surveillance on be-
half of any foreign government within the United States or abroad.
(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, or
with respect to any authority of the Drug Engorcement Admin-
ietration or the Federal Bureau of Investigation which related '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 clause (2), subsection (a) shall apply to any renewal
or extension of any contract referred to in such paragraph entered
into on or after such date of enactment.
FOREIGN ASSISTANCE ACT of 1973
[Sec. 112. Prohibiting Police Training.
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 Enforce-
ment Administration of 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
T7nited States Government to provide personnel to conduct, or
assist in conducting, any such program.
Notwithstanding paragraph (2), subsection (a) shall apply to any
renewal or extension of any contract referred to in such paragraph
catered into on or after such date of enactment.]
Sec. 661. Limitations Upon Intelligence Activities.
(a) No funds appropriated under the authority of this or any other
1ct may be expe:uled by or on behalf of the Central Intelligence
Agency or any other agency o f the United States Government for the
eon.duct of operations in foreign countries pursuant to section 102(d)
(?~) o f the National. Security Act, o f 191x7 (50 U.S.C. 4
03) , other than
operations intended solely for obtaining necessary intelligence. Not-
rnrthstanding the foregoing limitation, the President may authorize
and direct that, any operation in a foreign country be resumed, or that
any other operation in a foreign country be initiated, and furnds may
be expended therefor, if, but not before, he (1) finds that such opera-
tion is important to the national security, and (2) transmits an appro-
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priate description of the, nature and scope of such operation, to the
committees of the Congress- having jurisdiction to monitor and review
the intelligence activities of he United States Government.
(b) The provisions of subsection (a) of this section shall not apply
during military operations by the United States under a declaration. of
war approved by the Congress or an exercise of powers by the Presi
dent under the war powers resolution.
* * * * * * *
Sec. 662. Waiver of Prohibition Against Assistance to Countries
Engaging in Certain Trade,
Any provision of this Act or the Agricultural Trade Development
-end Assistance Act of 1954 which prohibits assistance to a country
,may be waived by the President if he determines that such waiver is
in the national interest and reports such determination to the Congress.
PART V
Sec. 801. General Authority.
The President is authorized to furnish, on such terms and conditions
as he may determine, assistance for relief and reconstruction of South
Vietnam, Cambodia, and Laos, including especially humanitarian
assistance to refugees, civilian war casualties, and other persons dis-
advantaged 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 as-
surances satisfactory to him that no assistance furnished under this
part, and no local currencies generated as a result of assistance fur-
nished under this part, will be used for support of police, or prison
construction and administration,, within South Vietnam.
[Sec. 802. Authorization.
There are authorized to be appropriated 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. 802. Authorization.
There are authorized to be appropriated to the President to furnish
assistance for relief and reconstruction of South Vietnam, Cambodia,
and Laos as authorized by this part, in addition to funds otherwise
available for such purposes, for fiscal year 1974 not to exceed $504,000,-
000, and for the fiscal year 1975 not to exceed $617,000,000. Of the
amount appropriated for fiscal year 1975-
(1) $449,900,000 shall be available only for the relief and re-
construction of South Vietnam in accordance with section 806 of
this Act;
(2) $100,000,000 shall be available only for the relief and recon-
struction of Cambodia in accordance with section 807 of this Act;
(3) $40,000,000 shall be available only for the relief and recon-
struction of Laos in accordance with section 808 of this Act;
(4) $4,100,000 shall be available only for the regional develop-
ment program; and
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(5) $16,000,000 shall be available only for support costs for the
agency. primarily responsible for carrying out this part.
(6) $7,000,000 shall be available only for, humanitarian assist-
ance through international organizations.
Such amounts are 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 welfare programs, and training related to these programs which
are designed for the benefit of South Vietnamese children, disadvan-
taged by hostilities in Vietnam or conditions related to those hostilities,
and (2) for the adoption 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 irrevocably relinquished all
parental [rights, particularly children fathered by United States
citizens] rights.
(b) The President is, therefore, authorized to provide assistance, on
terms and conditions he considers appropriate, for the purposes de-
scribed in clauses (l) and (2) of subsection (a) of this section. Of the
funds appropriated pursuant to section 802 for fiscal year 1974,
$:1,000,000, or its equivalent in local c.urrecny, shall be available until
expended solely to carry out this section. Of the sums made available
for South Vietnam, under section 802(l) of this Act for fiscal year
1975, $10,000,000, or its equivalent in local currency, shall be available
until expended solely to carry out this section. Not more than 10 per
centum of the funds 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 auspicies of and by inter-
national agencies or private voluntary agencies.
Sec. 806. Limitations With Respect to South Vietnam.
(a) Notwithstanding any other provision of law, no funds author-
ized to be appropriated by this or any other law may be obligated in
any amount in excess of $1,274,900,000 during the fiscal year ending
June 30, 1975, for the purpose of carrying out directly or indirectly
any economic or military assistance, or any operation, project, or pro-
gram of any kind, or for providing any goods, supplies, materials,
equipment, services, personnel, or advisers in, to, for, or on behalf of
South Vietnam. Of that amount, there shall be available during such
fiscal year-
(1) $700,000,000 for military assistance;
(2) $125,000,000 only to carry out the Agricultural Trade De-
velopment and Assistance Act of 1954; and
(3)$449,900,000 only for economic assistance, of which there
shall be available-
(A) $90,000,000 for humanitarian assistance, of which
there shall be available-- -
(i) $70,000,000 forrefugeerelief;
(ii) $10,000,000 for child care ; and
(i/-i) $10,000,000 for health care;
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(B). $15 4,500,000, f or agricultural assistance, of which there
shall e.arvailable
(i) $85,000,000 for fertilizer;
(ii) $12,000,000 for POL (for agriculture) ;
(iii) . $6,000,000 for insecticides and pesticides;
(iv) $10,000,000 for agricultural machinery and equip-
ment (including. spare parts);
(v) $3,500,0.00 for agricultural advisory services;
(vi) $20,000,000 for rural credit,-.
(vii) $10,000,000 for canal dredging;.
viii) $4,000,000 for low-Gift pumps; and
(ix) .$4,000,0.00 for fish farm development;
(C) $139,800,000 for industrial development assistance, of
,which there shall be available-
.(i) $124,000,000 for commodities;
(ii) $10,000,000 for industrial credit; and
(iii) $5,800,000 for industrial advisory services (in-
eluding feasibility studies);
(.D) $65,600,000 for miscellaneous assistance, of which there,
there shall be available-
(i) $47,900,000 for the service sector (including POL,
machinery, equipment and spare parts); and
(ii) $17,700,000 for technical services and operating
expenses.
(b) (1) No funds made available under paragraph (2) or (3) of sub-
section (a) may be transferred to, or consolidated with, the funds made
available under any other paragraph of such subsection, nor may more
than 20 per centum of the funds made available under subparagraph
(A), (B), (C), or (D) of paragraph (3) of subsection (a) of this sec-
tion be transferred to, or consolidated with, the funds made available
under any other such subparagraph.
(2) Whenever the President determines it to be necessary in carry-
ing out this part, any funds made available under any clause of sub-
paragraph (A), (B), (C),or (D) of subsection (a) of this section may
be transferred to, and consolidated with, the funds made available.
under any other clause of that same subparagraph.
(3) The President shall fully inform the Speaker of the House of
Representatives and the Committee on Foreign Relations of the Senate
of each transfers he intends to make under paragraph. (1) or (2) of
this subsection prior to making such transfer.
(c) In computing the $1,274,900,000 limitation on obligational au-
thority under subsection (a) of this section with respect to such fiscal
year, there shall be included in the computation the value, of any goods,
supplies, materials, equipment, services, personnel, or advisers pro-
vided to, for, or on behalf of South Vietnam in such fiscal year by gift,
donation, loan, lease, or otherwise. For the purpose of this subsection,
`value' means the fair market value of any goods, supplies, haterials,
or equipment provided to, for, or on behalf of South Vietnam but in
no case less than 3311.1 per centum of the amount the United States paid
at the time such goods, supplies, materials, or equipment were acquired
by the United States.
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(d No funds may be obligated for any of the purposes described
in subsection (a) of this section in, to, for, or on behalf of South Viet-
nam in any fiscal year beginning after June 30,1975, unless such funds
have been specifically authorized by law enacted after the date of
enactment of this section. In no case shall funds in any amount in
excess of the amount speci fiealt y authorized 'by law for any fiscal year
be obligated for any such purpose during such, fiscal year.
(e) After the date of enactment of this section, whenever any re-
quest is made to the Congress for the appropriation of funds for use
in, to, for, or on behalf of South Vietnam for any fiscal year, the Presi-
dent shall furnish a written report to the Congress explaining the pur-
pose for which. such funds are to be used in such fiscal year.
(f) The President shall submit to the Congress within thirty days
after the end of each quarter of each fiscal year, beginning with the
fiscal year which begins July 1, 1974, a written report showing the
total amount of funds obligated in, to, for, or on behalf of South Viet-
nam during the preceding quarter by the United States Government,
and shall include in such report a general breakdown of the total
amount obligated, describing the different purposes for which such
funds were obligated and the total amount obligated for such purpose.
(g) (1) Effective six months after the date of enactment of this
ection11 the total number of civilian officers and employees, including
contract employees, of executive agencies of the United States Gov-
ernment who are citizens of the United States and of members of the
Armed Forces of the United States present in South Vietnam shall
not at any one time exceed four thousand, not more than two thousand
five hundred of whom shall be members of such Armed Forces and
direct hire and contract employees of the Department of Defense. Ef-
fective one year after the date of enactment of this section, such total
number shall not exceed at any one time three thousand, not more
than one thousand, five hundred of whom shall be members of such
armed forces and direct hire and contract employees of the Depart-
ment of Defense.
(2) Effective six months after the date of enactment of this section,
the United States shall not, at any one time, pay in whole or in part, di-
rectly or indirectly, the compensation or allowances of more than eight
hundred individuals in South Vietnam who are citizens of countries
other than South Vietnam or the United States. Effective one year
after the date of enactment of this section, the total number of indi-
viduals whose compensation or allowance is so paid shall not exceed
at any one time five hundred.
(3) For purposes of this subsection, 'executive agency of the United
States Government' means any agency, department, board, wholly or
partly owned corporation, instrumentality, commission, or establish-
ment within the executive branch of the United States Government.
(4) This subsection shall not be construed to apply with respect to
any individual in South Vietnam who (A) is an, employee or volunteer
worker of a vo77untary private, nonpro fit relief organization or is an
employee or volunteer worker o f the International CC ommittee o f the
Ized Cross, and (B) engagers only in activities providing humanitarian
assistance in South Vietnam.
(h) This section shall not be construed as a commitment by the
United States to South Vietnam for its defense.
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Sec. 807. Limitations With Respect to Cambodia.
(a) Notwithstanding any other provision of law no funds author-
ized to be appropriate by this or any other law may ~e obligated in any
.amount in excess of $377,000,000 during the fiscal year ending June 30,
1975, for the purpose of ' carrying out directly or indirectly any eco-
.nomz'e'ormilitary assistance,'or any operation, project, or program, of
.any kind, or for providing any goods, supplies, materials, equipment,
.services, personnel, or advisers in., to, for, or on behalf of Cambodia.
~O f that amount there shall be available-
(1) $20,000,000 for military assistance;
(2) $77,000,000 only to carry out the Agricultural Trade De-
velopment and Assistance Act of 1954; and
(3) $100,000,000 only for economic assistance, of which there
shall be available-
(A) $20,000,000 for humanitarian assistance;
import assistance;
I3) $63,000,000 f or comnnod a itIj
and $15,000,000 for miultilateral stabilization assistance;
(D) $2,000,000 for technical support and participant
training.
(b) No funds made available under paragraph (2) or (3) of sub-
section (a) of this section may be transferred to, or consolidated with,
the funds made available under any other paragraph of such subsec-
tion, nor may more than 20 per centum of the funds made available
under any subparagraph of paragraph (3) of subsection (a) of this
section be transferred to, or consolidated with, the funds made avail-
,able under any other such subparagraph.
(c) In computing the $377,000,000 limitation on, obligation author-
ity under subsection (a) of this section with respect to such fiscal year,
there shall be included in the computation the value of any goods, sup-
plies, materials, equipment, services, personnel, or advisers provided
to, or on behalf of Cambodia in such fiscal year by gift, donation, loan,
lease or otherwise. For the purpose of this subsection, "value" means
the fair market value o f any goods, supplies, materials, or equipment
provided to, for, or on behalf of Cambodia but in no case less than 331/3
per centum of the amount the United States paid at the time such
goods, supplies, materials, or equipment were acquired by the United
States.
(d) No funds may be obligated for any of the purposes described
in subsection (a) of this section in, to, for, or on behalf of Cambodia
in any fiscal year beginning after June 30,1975, unless such funds have
been specifically authorized by law enacted after the date of enact-
ment of this section. In no case shall funds in any amount in excess of
the amount specifically authorized by law for any fiscal year be obli-
gated for any such purpose during such fiscal year.
(e) A f ter the date of enactment of this section, whenever any request
is made to the Congress for the appropriation of funds for use in, to,
for, or on behalf of Cambodia for any fiscal year, the President shall
furnish a written report to the Congress explaining the purpose for
which such funds are to be used in such fiscal year.
(f) The President shall submit to the Congress within thirty days
,after the end of each quarter of each fiscal year, beginning with the
fiscal year which begins July 1, 1974, a written report showing the total
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amount of funds obligated in, to, for, or on behalf -of Cambodia during
the preceding. quarter. by the United States Government, and shall in-
clade ht such report a general breakdown of the total amount obli-
gated, describing the different, purposes forwhich such funds were.
obligated and the total amount obligated for such purpose.
(g) (1) The total number of civilian, officers and employees of execu-.
tiUre agencies of the, United StatesGoe.lernmcnt who are citizens of the
United States and of members of the Armed Forces of the United
States (exclccdiv.g such members while
actually engaged in. air ope=r(ttions in or over Cambodia which originate outside Cambodia) present
in Cambodia at_any one time shall not exceed two hundred.
(2) The United States shall not, at any one time, pay in whole or in
part, directly or indirectly, the compensation or allowances of more
than eighty- filce individuals in Cambodia who are citizens of countries
other than Cambodia or the United States.
(3) For.purposcs of this subsection, "executive agency of the United
States Government" means any agency, department, board, wholly or
partly owned corporation, instrument, board, wholly or partly owned
corporation, instrumentality, commission, or establishment within the
executive branch of the United States Government.
(4) This subsection shall not be construed to apply with respect to
any individual in Cambodia who (A) is an employee or volunteer
worker of a voluntary private, nonprofit relief organization or is an
e-rnployee or volunteer worker of the International Committee of the
fled Cross, and (B) engages only in activities providing humanitarian
assistance in Cambodia.
(h.) This section shall not be construed as a commitment by the
United States to Cambodia for its defense.
[Sec. 655. Limitations Upon Assistance to or for Cambodia.
(a) Notwithstanding any other provision of law, no funds author-
ized to be appropriated by this or any other law may be obligated in
any amount in excess of $341,000,000 for the purpose of carrying out
directly or indirectly any economic or military assistance, or any op-
eration, project., or program of any kind, or for providing any goods,
supplies, materials, equipment, services, personnel, or advisers in, to'
for, or on behalf of Cambodia during the fiscal year ending June 30,
1972.
(b) In computing the $341,000,000 limitation on obligation author-
ity under subsection (a) of this section in fiscal year 1972, (1) there
shall be included in the computation the value of any goods, supplies,,
materials, or equipment provided to, for, or on behalf of Cambodia
in such fiscal year by gift, donation, loan, lease, or otherwise, and (2)
there shall not be included in the computation the value of any goods,
supplies, materials or equipment attributable to the operations of the
Armed Forces of the Republic of Vietnam in Cambodia. For the pur-
pose of this subsection, "value" means the fair market value of any
goods, supplies, materials, or equipment provided to, for, or on behalf
of Cambodia but in no case less than 331/3 per centum of the amount
the United States paid at the time such goods, supplies, materials, or
equipment were acquired by the United States.
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(c) No funds may be obligated for any of the purposes described
in subsection (a) of this section in, to, for, or on behalf of Cambodia
in any fiscal year beginning after June 30, 1972, unless such funds have
been specifically authorized by law enacted after the date of enactment
of this section. In no case shall funds in any amount in excess of the
amount specifically authorized by law for any fiscal year be obligated
for any such purpose during such fiscal year.
(d) The provisions of subsections (a) and (c) of this section shall
not apply with respect to the obligation of funds to carry out combat
air operations over Cambodia.
(e) After the date of enactment of this section, whenever any re-
quest is made to the Congress for the appropriation of funds for use
in, for, or on behalf of Cambodia for any fiscal year, the President
shall furnish a written report to the Congress explaining the purpose
for which such funds are to be used in such fiscal year.
(f) The President shall submit to the Congress within thirty days
after the end of each quarter of each fiscal year, beginning with the
fiscal year which begins July 1, 1971, a written report showing the
total amount of funds obligated in, for or on behalf of Cambodia dur-
ing the preceding quarter by the United States Government, and shall
include in such report a general breakdown of the total amount obli-
gated, describing the different purposes for which such funds were
obligated and the total amount obligated for such purpose, except
that in the case of the two quarters of the fiscal year beginning July 1,
1,971, a single report may be submitted for both such quarters and
such report may be computed on the basis of the most accurate esti-
mates the President is able to make taking into consideration all infor-
mation available to him.
(g) Enactment of this section shall not be construed as a commit-
ment by the United States to Cambodia for its defense.]
[Sec. 656. Limitations on United States Personnel and Personnel
Assisted by United States in Cambodia.
The total number of civilian officers and employees of executive
agencies of the United States Government who are citizens of the
United States and of members of the Armed Forces of the United
States (excluding such members while actually engaged in air opera-
tions in or over Cambodia which originate outside Cambodia) present
in Cambodia at any one time shall not exceed two hundred. The
United States shall not, at any time, pay in whole or in ])art, directly
or indirectly, the compensation or allowances of more than eighty-
five individuals in Cambodia who are citizens of countries other than
Cambodia or the United States. For purposes of this section, "execu-
tive agency of the United States Government" means any agency,
department, board, wholly or partly owned corporation, instrumen-
tality, commission, or establishment within the executive branch of
the United States Government.]
Sec. 808. Limitations With Respect to Laos.
(a) Notwithstanding any other provision of law, no funds author-
ised to be appropriated by' this or any other law may be obligated in
any amount in excess of $70,000,000 during the fiscal year ending June
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30, 1973, for the purpose of carrying out directly or indirectly any
economic or military assistance, or any operation, project, or program
of any kind, or for providing any goods, supplies, materials, equip-
ment, services, personnel, or advisers in, to, for, or on behalf of'
Laos. Of that amount, there shall be available-.
(1) $30,000,000 for military assistance; and
(2) $40,000,000 only for economic assistance, of which there
shall be available-
(A) $11,000000 for humanitarian assistance;
(B) $'i,500,000 for reconstruction and development assist-
ance ;
(C) $16,100.500 for stabilization assistance; and
(D) $6,400,000 for technical support.
(b) No funds made available under paragraph (2) of subsection
(a) of this section may be transferred to, or consolidated with, the
fwnds made available under paragraph (1) of such subsection, nor-
may more than 20 percent of the funds made available under any
subparagraph of paragraph (2) be transferred to, or consolidated with,
the funds made available under any other such subparagraph.
(c) In computing the limitations of obligation authority under
subsection (a) of this section with respect to such fiscal year, there
shall be included in the computation the value of any goods, supplies,
materials, equiprn.ent, services, personnel or advisers provided, to, for,
or on behalf of Laos in such fiscal year by gift, donation, loan, lease or
otherwise. For the purpose of this subsection, `value' means the fair
market value of any goods, supplies, materials, or equipment provided-
to, for, or on behalf of Laos but in no case less than 331/3 per centum
of the amount thr United States paid at the time such goods, supplies,.
materials, or equipment were acquired by the United States.
(d) No funds may be obligated for any of the purposes described'
in subsection (a) of this section in, to, for, or on behalf of Laos in
any fiscal year beginning after June 30, 1975, unless such funds have,
been specifically authorized by law enacted of ter the date of enactment
of this section. Lit no case shall funds in any amount in excess of the
amount specifically authorized by law for any fiscal year be obligated'
for any such purpose during such fiscal year.
(e) After the date of enactment of this section, whenever any request
is made to the Congress for the appropriation of funds for use in, to,,
for, or on behalf of Laos, for any fiscal year, the President shall fur-
nish a written report to the Congress explaining the purpose for which
such funds are to be used in such. fiscal year.
(f) The President shall submit to the Congress within thirty days
after the end of each quarter of each fiscal year beginning with, the
fiscal year which begins July 1, 1974, a written report showing the
total amount of funds obligated in, to, for, or on behalf of Laos during
the preceding quarter by the United States Government and shall
include in such report a general breakdown of the total amount ob-
ligated, describing the different purposes for which such funds were'
obligated and the total amount obligated forsueh purpose.
(g) This section shall not be construed as a commitment by they
United States to Laos for its defense."
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Sec. 809. Population, Narcotics, International Humanitarian and
Regional Programs,
T he Provision Of sections 806, 807, and 808 shall not apply to : (1)
funds obligated for purposes of title X of chapter 2 of part I (pro-
grams relating to, population growth); (2) funds .made' available
under section 482 programs relating to narcotics control) ; (3) funds
made available under section802(6) (humanitarian assistance through
international organizations); or (4) funds obligated for regional
programs.
Sec. 809. Transfer of Funds.
(a) The authority of section 610 of this Act shall not apply with
respect to any funds made available to South Vietnam, Cambodia, or
Laos.
(b) Any funds made available under any provision of this or any
other law for the purpose of providing military assistance for South
Vietnam, Laos, or Cambodia may be transferred to, and consolidated
with, any funds made available to that country for war relief, recon-
struction, or general economic development.
PART VI
Sec. 901. General Authority for Assistance to the Middle East.
The President is authorized to furnish assistance authorized by this
Act, and to provide credits and guaranties authorized by the Foreign
Military Sales Act. Any such assistance, credits, and guaranties shall
be provided in accordance with all the provisions applicable to that
type of assistance under this Act and applicable to credits and guaran-
ties under the Foreign Military Sales Act.
Sec. 902. Allocations.
(a) Of the funds appropriated to carry out chapter 2 of part II of
this Act during the fiscal year 1975, not to exceed $100,000,000 may be
made available for military assistance in the Middle East.
(b) Of the funds appropriated to carry out chapter 4 of part II of
this Act during the fiscal year 19'15, not to exceed $667,500,000 may be
made available for security supporting assistance in the Middle East.
(c) Of the aggregate ceiling on credits and guaranties established,
by section 31(b) of the Foreign Military Sales Act during the fiscal
year 1975, not to exceed $330,000,000 shall be available for countries in
the Middle East.
Sec. 903. (a) Special Requirements Fund.
There are authorized to be -appropriated to the President for the
fiscal year 1975 not to exceed $100,000,000 to meet special requirements
arising from time to time in the Middle East for the purpose of provid-
ing any type of assistance authorized by part I of this Act, in addition
of funds otherwise available for such purpose. The funds authorized
to be appropriated by this section shall be available for use by the
President for assistance authorized by this Act in accordance with the
provisions applicable to the furnishing,of such assistance. Such funds
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(b) The President shall keep the Committee on Foreign Relations
and the Committee on Appropriations of the Senate and the Speaker
of the House of Representatives currently informed on the program-
ing and obligation of funds under subsection (a).
(c) (1) Prior to obligating any amount for a project in excess of
$101),000,000 from funds made available under this section, the Presi-
dent shall transmit a written report to the Speaker of the Rouse of
Representatives and the Committee on Foreign Relations of the Senate
on the same day giving a complete explanation with respect to such
proposed obligation. Each report shall incude an. explanation relating
to only ape project.
(2) The President may make such obligation thirty days after the
report has been so transmitted unless, before the end of the first period
of thirty calendar days after the date on which the report is trans-
mitted, a resolution is adopted disapproving the proposed obligation
.71wi.th respect to which the report is made.
(3) Paragraphs (4) through (11) of this subsection are enacted of
CoTigr?ess-
(A) as an exercise of the rulemaking power of the Senate and
the House of Representatives, respectively, and as such they are
deemed a part of the rules of each House, respectively, but appli-
cable only with respect to the procedure to be followed in the
House in the ease of resolutions described by this subsection; and
they supersede other rules only to the extent that they are incon-
sistent thereu'i.th; and
(B) with full recognition of the constitutional right of either
House to change the rules (so far as relating to the procedure of
that House) at any time, in the some manner, and to the same
extent as in the case of any other rule of that House.
(4) For purposes of paragraphs (2) through (11) of this subsec-
ton, 'ressolution' means only 'a concurent resolution, the matter after
the resolving clause of which is as follows: 'That the Congress does
not approve the obligation for and explained in the report
transmitted to Congress by the President on -, 19-.', the
first blank space therein being filled with the name of the foreign
eountry or organization on whose behalf the obligation is to be in-
curred, and the other blank spaces therein being appropriately filled
With, the date of the transmittal of the report; but does not include a
resolution specifying obligations for more than, one proposed project.
(.~) If the committee, to which has been referred a resolution dis-
approving a proposed obligation, has not reported the resolution at
the earl, of ten calendar days after its introduction, it is in order to
more either to discharge the committee from further consideration of
the resolution or to discharge the committee from further considera-
tion. of any other resolution with respect to the same obligation. which
has been referred to the committee.
(G) A motion to discharge may be made only by ,an. individual favor-
ing the resolution, is highly privileged (except that it may not be made
after the committee has reported a resolution with respect to the same
proposed obligation), and debate thereon is limited to not more than
one hQur, to be divided equally between those favoring and those
opposing the resolution. An amendment to the motion is not in order,
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101
and it is not `in order to move to reconsider. the vote by which the
motion is agreed to or disagreed to.
(7), If the motion to discharge is agreed to, or disagreed to, the.
motion may not be renewed, nor may another notion to discharge the
committee be made with respect to any other resolution with respect
to the same obligation.
(8) When the committee has reported, or has been discharged from
further consideration of, a resolution with respect to an obligation, it
is at any time thereafter in order (even though a previous motion to
the same effect has been disagreed to) to move to proceed to the consid-
eration of the resolution. The motion is highly privileged and is not
debatable. An amendment to the motion is not in order, and it is. not
in order to move to reconsider the vote by which the motion is agreed
to or disagreed to.
(9) Debate on the. resolution is limited to not more than two hours,
to be divided equally between those favoring and those opposing the
resolution. A motion further to limit debate is not debatable. An amend-
ment to, or motion to recommit, the resolution is not in order, and it is
not in order to move to reconsider the vote by which the resolution is
agreed to or disagreed to.
(10) Motions to postpone, made with respect to the discharge from
committee, or the consideration of, a resolution with respect to an ob-
ligation, and motions to proceed to the consideration of other business,
are decided without debate.
(11) Appeals from the decisions of the Chair relating to the appli-
cation of the rules of the Senate or the House of Representatives, as the
case may be; to the procedure relating to a resolution with respect to
an obligation are decided without debate.
(12) If, prior to the passage by one House of a concurrent resolu-
tion of that House, that House receives from the other House a con-
current resolution of such other House, then-
(A) the procedure with respect to the concurrent resolution of
the first House shall be the same as if no concurrent resolution
from the other House had been received; but
(B) on any vote on final passage of the concurrent resolution of
the f.rst House the concurrent resolution from the other ]louse
shall be automatically substituted.
TIIE FonrucN MILITARY SATES ACT, As AMENDED
SEC. 3 (c) Except as otherwise provided in subsection (d), any
foreign country which hereafter uses defense articles or defense serv-
ices 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 further cash sales, credits, or
guarantees.
[(d) No sophisticated weapons, including sophisticated jet aircraft
or spare parts and associated ground equipment for 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)
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of subsection (a) of this section- or section 505 (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 he transfer of sophisticated weapons
without the consent of the President, such weapons have been returned
to the country concerned.]
(d) A country shall remain ineligible in accordance with subsection
(c) of this section until such time as the President determines that
,such violation has ceased, that the country concerned has given assur-
ances satisfactory to the President that such violation will not recur,
,and that, if such violation involved the transfer of sophisticated
weapons without the consent of the President, such weapons have been
returned to the country concerned.
Sec. 22. Procurement for Cash Sales.
(a) Except as otherwise provided in this section, the President may,
without requirement for charge to any appropriation or contract au-
thorization otherwise provided, enter into contracts for the procure-
ment 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 provides the United States Gov-
crnment 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 pay-
ments 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.
(b) The President may, when he determines it to be in the national
interest, accept a dependable undertaking of a foreign country or in-
ternational organization with respect to any such sale, to make full pay-
ment within 120 days after delivery of the defense articles or the
rendering of the defense services. Appropriations available to the De-
partment 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.
(e) No sales of defense articles shall be, made to the government of
any economically developed country under the provisions of this see-
tion if such articles are generally available for purchase by such
count?V from commercial sources in the United States.
[Sec. 23. Credit Sales.
The President is hereby authorized to finance procurements of de-
fense articles and defense services by friendly countries and interna-
tional organizations on terms of repayment to the United States Gov-
ernment of not less than the value thereof in United States dollars
within a period not to exceed ten years after the delivery of the tie-
fense articles or the rendering of the defense services.]
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Sec. '23. Credit Sales.
The President is authorized to finance procurements of defense ar-
ticles and defense services by friendly foreign countries and interna-
tional organizations on terms requiring the payment to the United
,States Government in United States dollars of-
(1) the value of such articles or services within a period not to
exceed ten years after the delivery of such articles or the render-
ing of such services , and
(2) interest on the unpaid balance of that obligation for pay-
ment of the value of such articles or services, at a rate equivalent
to the current average interest rate, as of the last day of the month
,preceding the financing of such procurement, that the United
States Government pays on outstanding marketable obligations
'of comparable maturity, unless the President certifies to Congress
that the national interest requires a lesser rate of interest and
states in the certification the lesser rate required, and the justifi-
cation therefor.
`Sec. 24. Guaranties.
(a) The President may guarantee any individual, corporation, part-
nership, or other juridical entity doing business in the United States
(excluding United States Government agencies other than the Federal
Financing Bank) against political and credit risks of nonpayment