FOREIGN ASSISTANCE ACT OF 1974

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00957A000100010030-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 160
• Document Creation Date: December 20, 2016
• Document Release Date: May 24, 2005
• Sequence Number: 30
• Publication Date: September 3, 1974
• Content Type: REPORT

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. Calendar No.1083
93D CONGRESS l
2d Session i
f REPORT
No. 93-1134
9
FOREIGN ASSISTANCE ACT
OF 1974
REPORT
OF TILE
COMMITTEE ON FOREIGN RELATIONS
UNITED STATES SENATE
S. 3394
TO AMEND THE FOREIGN ASSISTANCE ACT OF 1961, AND
FOR OTHER PURPOSES
7\eernn1n
Filed un e order of the Senate of August 22, 1974
U.S. GOVERNMENT PRINTING OFFICE
38-459 WASHINGTON . 1974
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COMMITTEE ON FOREIGN RELATIONS
J. W. FULBRIGHT, '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, New York
HUGH SCOTT, Pennsylvania
JAMES B. PEARSON, Kansas
CHARLES H. PERCY, Illinois
ROBERT P. GRIFFIN, Michigan
PAT M. HOLT, Chief of Staff
ARTHUR M. BBHL, Chief Clerk
(II)
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CONTENTS
Page
Principal purposes of the bill________________________________________ 1
Summary of major policy provisions in the bill________________________
Authorization of appropriations_____________________________________
Committee action-------------------------------------------------
Committee comments ______-._______________________________________
Cost estimates----------------------------------------------------
Committee votes--------------------------------------------------
Section-by-section analysis:
Sec. 2. Food and nutrition_____________________________________
Sec. 3. Population planning____________________________________
Sec. 4. Education and human resources development--------------
See. 5. Housing guaranties_____________________________________
See. 6. International organizations and programs-----------------
See. 7. Military assistance authorizations ------------------------
See. 8. Sppecial authority_________________________________
Sec. 9. Military assistance authorizations for South Vietnam-_ _ _ _ _ _
Sec. 10. Excess defense articles__________________________________
Sec. 11. Stockpiling of defense articles for foreign countries ---------
See. 12. Military assistance advisory groups and missions-----------
See. 13. Termination of authority -------------------------------
Sec. 14. Termination of military assistance to South Korea---------
See. 15. Security supporting assistance___________________________
Sec. 16. Transfer between accounts______________________________
Sec. 17. Access to certain military bases abroad -------------------
See. 18. Prohibiting police training______________________________
Sec. 19. Limitations upon assistance to or for Chile________________
Sec. 20. Policy with respect to Indochina_________________________
Sec. 21. Principles governing economic aid to Indochina------------
See. 22. Indochina postwar reconstruction ------------------------
See. 23. Assistance to South Vietnamese children__________________
Sec. 24. Limitation with respect to South Vietnam------------------
See. 25. Limitations with respect to Cambodia--------------------
See. 26. Limitations with respect to Laos_________________________
Sec. 27. Transfer of funds______________________________________
Sec. 28. Middle East assistance_________________________________
Sec. 29. Foreign Military Sales Act amendments--------------------
See. 30. Political pprisoners______________________________________
Sec. 31. Gorgas Memorial Institute------------------------------
See. 32. International Commission of Control and Supervision in
Vietnam--------------------------------------------
Changes in existing law____________________________________________
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Calendar No 1083
93D CONGRESS SENATE REPORT
2d session j No. 93-1134
FOREIGN ASSISTANCE ACT OF 1974
SEr1pMBT;R 3, 1974.-Ordered to be printed
Filed under authority of the order of the Senate of August 22, 1974
Mr. SPARKMAN, 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 OF THE BILL
The principal purposes of the bill are : to authorize appropriations
totaling $2,527,626,000 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.
SUMMARY OF MAJOR POLICY PROVISIONS IN TIIE BILL
1. INDOCHINA
1. Policy.-States a Congressional policy concerning the. political/
military situation in Indochina and principles to guide the U.S.
economic assistance program.
2. Spending Ceilings.-Imposes fiscal year 1975 ceilings on obliga-
tions for assistance to Indochina: $1.28 billion for South Vietnam;
$347 million for Cambodia; and $100 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.
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.4.'1 rsonnel 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.
5. Personnel Ceiling in Cambodia.-Reduces the ceiling on U.S.
direct hire or contract personnel in Cambodia from 200 to 175. Con-
tract personnel. of humanitarian relief agencies are exempted from the
ceiling.
6. 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.--R.equires that all costs of United
States military missions abroad must be charged against appropria-
tions for military grant assistance.
3. War Reserve Stockpiles for Foreign Countries.-Requires that
any stockpiling of military equipment or material for foreign countries
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
at not less. than one-third the acquisition cost of the article.
6. M11ili;tary 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 Irate On C1,edit Sales.-Imposes a minimum interest
rate on credit-s 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.
1. Chile. .Imposes an FY 1975 ceiling of not more than $65 million
of which not more than X10 million can be in military credits or
grants. ?
2.. Waiver Aa-thority.--Repeals the President's general authority
to. waive restrictions in the Foreign Assistance Act.
3. Police Traiaaing.-Prohibits use of foreign. aid funds for training
foreign police, prison, or internal security forces.
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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 $2,527,626,000 comprised of $2,240,500,000 for economic
assistance to Indochina (other than Public Law 480 assistance), secur-
ity supporting assistance, a new Middle East contingency fund, and
the foreign military assistance and sales programs; $259,400,000 in
supplemental authorizations for other economic assistance programs;
and $27,726,000 for United States contributions to meet the expenses
of the International Commission of Control and Supervision in Viet-
nam.
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
authorizations in two separate bills, as outlined in section 9 of S. 3473,
the State/USIA authorization bill passed by the Senate earlier this
year.
Next year the Committee fully expects to deal with foreign assistance
authorizations in two separate bills.
Table I itemizes the authorizations recommended by the Committee :
TABLE I.-FOREIGN ASSISTANCE AUTHORIZATIONS RECOMMENDED BY THE COMMITTEE ON FOREIGN RELATIONS
[In thousands of dollars]
Fiscal year
1975 authori-
zation request
Committee
recommen-
dation
Difference
from request
__________________________________________
Food and nutrition__
1
255,300
r 200,000
-55,300
.
_
Population planning and health___________________________--------
2
--------_---
r 20,000
+20,000
.
3 Education and human resources development______________________
_____________
12,000
+2, 000
Gorges Memorial-Panama __________________________------------
4
-- ____
--
O
0
+
0
.
International organizations and programs________________________
5
31960
136, )Q
3,0 0
+3
.
ar reconstruction
t
6
I
d
hi
80
550
000
-389,800
________________________________
na pos
w
.
n
oc
7. Security supporting assistance__________________________________
Middle East special requirements fund_________________________
8
39,800
100, 000
,
585, 500
'100,000
+200,000
--------------
.
9. Military assistance program_____________________________________
985, 000
550 000
-435,000
10. Foreign military credit sales_______
------------------
555,000
2 455, 000
-100, 000
11. International Commission of Control and Supervision in Vietnam____
27,726
27,726
--------------
Total-------------------?------------------------------3,252,226
I Supplemental to current authorization.
2 Of this amount, $100,000,000 is to be in the nature of a grant to Israel.
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Table II compares the Committee's recommendations with authori-
zations and appropriations for fiscal year 1971 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]
Fiscal year 1974 Fiscal year 1975 request,
Committee
Authoriza- Appropria- Appropria- Authoriza- recommen-
tion tien tion tion dation
Development assistance:
Food and nutrition__________________________ - 291,000 284,000 546,300 2255,300 2200,000
Population planning and health_______________ 145, 000 135, 000 145, 000 ------------ 2 20, 000
Education and human resources_______________ 90,000 89,000 90,000 ------------ 2 2,000
Selected development problems_______________ 53,000 40,500 53,000 ------------------------
Se ected countries and organizations ------------ 39, 000 36, 500 39, 000 -------------------------
Total, functional development assistance----- 618, 000 585 000 873, 300 2 255, 300 2 222, 000
International organizations and programs:
UNDPandother programs ------------------- 150,000 125,000 153,900 23,900 236,900
Indus Basin Development Fund loans --------- (3) 2,000 200 --------- ______________
Indus Basin Development Fund grants--------- 14, 500 9,000 14, 500 _____________..__________
UNRWA(expansionoftraining)_______________ 2,000 2,000 ------------------------------------
U.N. Environment Fund______________________ (1) 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,OGG ____________________________________
Disaster relief and reconstruction __________C______ 150,000 150,000 -------------------------------------
Administrative expenses, AID____________________ 45,000 40,000 45,000 ------------------------
Total, development assistance -------------- 905, 434 986, 050 1, 142, 800 2 259,200 2 258,900
Idochina postwar reconstruction__________________ 504,000 6 499,000 939,800 939,800 550,000
Security supporting assistance ---------- _--------- 125, 000 112, 500 385, 500 385, 500 585, 500
Middle East Special Requirements Fund___________________________________ 160,000 100,000 100,000
--------------------------------
Total, AID________________________________ 1,684,434 1, 597,550 2,568,100 1,684,500 1,494,400
International Narcotics Control____________________ 42,500 42,500 42,500 ----- _----------- -____._
Overseas Private Investment Corporation (reserves)- (5) 25,000 . 25,000 ------------------------
Military assistance program (MAP)________________ 512,500 7 450,000 985,000 985,000 550,000
Foreign military credit sales ---------------------- 325,000 325,000 555,000 555,000 455,000
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 2,499,400
Gorgas Memorial institute .________________ _ (0) 500 500 (6) 2500
International Commission of Control and Supervision
in Vietnam___________________________________ 4,500 ------------ 1027,726 1027,726 1027,726
Grand total_______________________________ 4,768,934 4,790,550 4,203,826 3,252,226 2,527,626
1 Request includes the following additional amounts not included in the President's fiscal year 1975 budget transmitted
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 safes, $240,000,000; military assistance pro-
gram, $60,000,000.
2 Supplemental to existing authorization.
a 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.
' Excludes $250,000,000 in defense stocks provided to Cambodia under sec. 506 of the FAA of 1961.
a Not authorized.
0 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 inantilyzing the authoriza-
tions recommended by the Committee in the context of the overall
foreign assistance program proposed for .fiscal year 1975 by the Execu-
tive Branch, Table III lists all proposed assistance programs and
country-by-country allocations.
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Section 11. 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.
WRM-Support of Allies (Anvmwnition)
Costs for acquisition, storage and maintenance of war reserve
munitions for Vietnam, Thailand, and Korean forces. This con-
stitutes the only 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) :
EXCERPTS FROM REPORT TO TIIE COMMITTEE ON FOREIGN RELATIONS,
UNITED STATES SENATE BY TIIE GENERAL ACcoUNTING OFFICE
DEPARTMENT OF DEFENSE STOCKPILING OF WAR RESERVE MATERIALS FOR
USE BY UNITED STATES ALLIES (B-159451 )
We determined front DOD planning and programing docu-
ments that the approved force levels used to plan future re-
quirements 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
planning began with the development of the fiscal year 1972
Defense program. Sonic available assets were allocated for
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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 allocwted $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.
Small arms ammunition
Artillery ammunition
Tank recovery vehicles 1
Portable radar sets 1
Minor miscellaneous items
Army
Mortar ammunition
Tanks 1
Machine guns
Rocket launchers 1
Landing boats
Spares and repair parts
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 into the war reserve stockpile that
could be used to replace U.S. or (with proper authorization) allied
combat losses in some future conflict. Therefore this procurement, al-
though labeled as allied reserve, modernizes the U.S. Army Force
while increasing the total assets available as war reserves.
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 abase. 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
reserve for allies represents a portion of the total war reserve
in excess of U.S. approved force requirements, DOD can now
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
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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 it 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 Stat. 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 T of part II of this
Act for the fiscal year in which sucli 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-
try unless such article or material has been charged against the limita-
tion speecified 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.
Subsection (c) states that the new section shall not be construed as
conferring any new authority to stockpile defense articles for a foreign
country.
Section 1h. Costs of Military Assistance Advisory Groups and Mis-
sions
This section adds a new section 516 to the Foreign Assistance Act
which requires that all costs of U.S. military missions, groups, or
similar organizations, including pay and allowances of assigned mili-
tary personnel, be charged against funds made available for the mili-
tary assistance program. The purpose of the provision is to insure
that the funds approved by the Congress for foreign military assist-
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35
ante shall bear the full costs of all activities related to the military
assistance program and thus accurately reflect the true cost of the pro-
gram to the taxpayer. As it is, the major costs for military missions
are now paid out of the Department of Defense budget, not the mili-
tary 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 for-
eign military assistance funds. The remainder, $57,522,900, would be
paid from appropriations for the Defense Department, absent the en-
actment 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]
U?S. European Command:
Belgium -----------------
213. 7
209.6
Denmark____-___________
147. 5
264.1
Ethiopia_________________
1,207.9
2,180.4
France-------------------
246.4
180.4
Germany-----------------
785.7
1,003.3
Greece-------------------
769.6
1, 368.5
Iran-------------------
1,153.3
6, 216.0
Iltay---------------------
292.6
353.2
Liberia__________________
509.8
408.3
___
Morocco__----------
319.7
_416.9
Netherlands--------------
Norway
------------------
146.7
142.0
226.5
187.0
Portugal_________________
168.1
322.7
Saudi Arabia_____________
291.4
3, 337.1
Spain--------------------
313.7
907.5
Tunisia__________________
222.4
233.6
Turkey------------------
1, 304.8
4,320.5
Zaire--------------------
564.6
397.1
U.S. Pacific Command:
Cambodia________________
880.7
1, 593.8
China--------------------
642.9
2, 987.0
India-----------------
168.1
833.3
Indonesia----------------
963.7
1,454.7
Japan____________________
325.7
171.4
Korea -------------------
3,243.4
8,145.2
Pakistan -----------
128.1
124.3
Phliippines_______________
451.6
1,122.9
Thailand_________________
984.7
8,965.8
U.S. Southern Command:
Argentina____________________________
1,115.7
Bolivia______________________________
996.8
Brazil-------------------------------
1,933.6
Chile ------------------------------
626.5
Columbia____________________________
803.6
Costa Rica___________________________
123.0
Dominican Republic------- 190.6
172.8
El Salvador__________________________
334.9
Guatemala__________________________
609.7
Honduras____________________________
354.2
Nicaragua____________________________
551.2
Panama-----------------------------
323.1
Paraguay----------------------------
517.1
Peru____________________ 115.8
124.1
Uruguay-----------------------------
594.6
Venezuela____________________________ -
1,160.9
Source: Department of Defense.
The new section 516 provides that an amount equal to each sum ex-
pended under any provision of law, other than section 504 of the For-
eign 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 mission, shall be de-
ducted 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.
Section 13. Termination of Authority-Phase Out of Military Grant
Assistance and Military Missions
Section 13 will phase out military grant assistance programs, other
than training, and U.S. military missions and groups over a period of
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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 13 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 proo-ram, bears little relation to the world of today.
The cold war is over. We 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 receiv-
ing 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 military training)
furnished that country in fiscal year 1974 under Chapter 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 foreign
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, on mis-
sions of limited duration, in connection with the military sales pro-
gram, who are not formally assigned to a military mission or group.
The functions performed by these military men, in training foreigners
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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 pro-
vided 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 con-
nection 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.
Service
Military
Civilian
U.S. European Command:
Bellux, MAAG-------------- J. H. Egginton------------- Colonel ------------- USAF
7
1
Denmark, MAAG---------- -- T. H. Wilder-------------- Captain ------------ USN
7
1
Ethiopia MAAG------------- H. D. Yow_--------------- Brigadier general-_-- USA
80
5
France, INAAG_P. D. Blumenthal---------- Colonel. ------------ USA
7
2
Germany, J. J. Wagstaff------------- Major general ------- USA
26
7
Greece, JUSMAG------------ C. W.Ryder -------------------- do------------- USA
46
9
Iran, ARMISH-MAAG-------- D. Brett ----------------------- do------------- USAF
192
16
Italy, MAAG---------------- G. M.Johnson, Jr--------------- do------------- USAF
11
2
Liberia, LIBMISH----------- A. M. Buckner ------------ Colonel------------- USA
16
----..----
Morocco, MUSLO------------ F. H. Smart_______________ do ------------- USAF
18
3
Netherlands, MAAG--------- E.Saroch,Jr-------------- Captain-. .......... USN
8
----------
Norway MAAG------------- R. L.Herman __---_------- Colonel ------------- USAF
6
1
Portugal, MAAG------------- R. B. Erly____-.-_-------_- Rear Admiral ------- USN
11
3
Saudi Arabia, USMTM------- J. G. Hill, Jr--------------- Brigadire general___- USA
133
2
Spain, JUSMG-MAAG-------- C. T. Baldwin------------- Major general ------- USA
38
15
Tunisia, TUSLO_____________ W. N. Thomas ------------- Colonel-----------_- USA
8
1
Turkey, JUSMMAT---------- J. V. Galloway_ .......... Major general ------- USA
146
28
Zaire, ZAMISH______________ H. Mallet ------ ----------- Colonel ............. USA
20
........_
U.S. Pacific Command:
Cambodia, MEDT----- ------ W. W. Palmer------------- Brigadier general..-. USA
77
-------- _
China (Taiwan), MAAG------ S. Nash------------------ Major general---_-.- USAF
166
27
India, ODR_________________ J. D. Jordan -------------- Colonel------------- USAF
4
1
Indonesia, DLG ............. J. McCuen___-----_------------do----------- -- USA
45
4
Japan, MDAO--------------- R. N.Stoddard ----------------- do------------- USA
7
5
Korea, JUSMAG------------- H. S. Cunningham--------- Major general ------- USA
397
61
Pakistan, OCR______________ A. S. Cloninger------------ Colonel ------------- USA
5
5
Philippines, JUSMAG-------- J. R. Sadler_______________ Brigadier general--__ USA
50
9
Thailand, JUSMAG---------- T. W. Mellen-------------- Major general ------- USA
258
3
U.S. Southern Command:
Argentina MILGP----------- J.G. Waggener_____________ _ do-_-------_____ USA
29
1
Bolivia, N(ILGP------------- R. T. Tierno----- -........ Colonel_ ---------- 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 ____------------- Lieutenant colonel--- USA
4
_--______-
Dominican Republic, MAAG __ E. Valdes----------------- Colonel-. ----------- USMC
11
----------
El Salvador, MILGP---------- R. M. Gomez______________ Lieutenant colonel--- USA
10
----------
Guatemala, MILGP---------- J. P. Rice.-__..-__________- Colonel_____________ USA
19
.______-__
Honduras, MILGP___________ A. L.Sanderson ____------------ do------------- USA
11
_-_-__--_-
Nicaragua, MILGP----------- S. F. Little, Jr------------------ do------------- USA
17
----
Panama, MILGP------------ T. A. Austin ___________________do_-_.--------- USA
9
1
Paraguay, MILGP----------- A. Nisbet, Jr------------------- do-----__-_____- USA
15
------- -_-
Peru, MAAG________________ R. D. Brewington--------------- do------------- USAF
7
_______-_-
Uruguay, MILGP------------ R. C. Kerr --------------------- do...... ------- USAF
13
----------
Venezuela, MILGP----------- F. J. Bush --------------------- do------------- USA
36
1
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 Department of Defense, as well as information con-
cerning countries where responsibility for military assistance and
sales matters are already being carried out by defense attaches :
Number of
personnel
assigned
Number of Host govern-
contract ment reim-
personnel United States bursement
Iran:
Army____________ Col. Howard Moore__________________ 182
------------
$4,950,000
$4,950,000
Navy____________ Comdr. Fred Wood_ --------------- 20
------------
611,000
611,000
Air Force-. ------- Col. Rufus Johnston-------------------- 250
-------------
5,673,000
5,673,000
Iran Air Force:
F--4-------------------do---------------------------- 43
------------
1,376,000
1,376,000
C--130---------------- do-------- --------------- ------- 15
------------
425,000
425,000
U.S. ARMY CORPS OF ENGINEERS1
Saudi Arabia -------- _ Col. Wm. L. Durham_________________ 79
125
$36, 443, 830
$36,443, 83
FMS ACT, AS AMENDED)
Saudi Arabia --------- Col. Thomas A. Mort________________ . 16
------------
341,997
341, 997
DEFENSE ATTACHES WITH RESPONSIBILITY FOR ADMINISTRATION OF SECURITY ASSISTANCE2
Austria______________ Col. G. K. Troy----------------------
11
-------------------------------------
Afghanistan ---------- Col. Elton L. Weston-----------------
12
--------------------------------------
Australia ------------- Col. Harry A. Witt------------------
13
--------------------------------------
Finland -------------- Col. Wallace G. Matthews-------------
20
---------------------------- ---------
Ghana --------------- Col. Jack A. Dodds_________________
4
--------------------------------------
Ivory Coast___________ Col. Rayburn L. Smith, Jr-------------
7
--------------------------------------
Jamaica -------------- It. Col. Mervyn J. Burns-------------
4
--------------------------------------
Jordan --------------- Col. Clarence C. Mann..______________
6
-------------------------------------
Lebanon_____________ Col. Forest J. Hunt___________________
11
--------------------------------------
Malaysia_____________ Col. Louis Stickney, Jr---------------
8
-------------------------------------
Mexico --------------- Brig. Gen. Richard E. Cavazos ---------
14
--------------------------------------
Nepal ______________ Col. Stephen A. Nemeth ______-_____-_
2
----- -----------------------------
New Zealand_________ Col. Wm W. Leesburg_
5
---- _----------------------- --------
Nigeria______________ Col. James H. Davis____ -------- ____
5
--- --------------------------------
Saudi Arabia --------- Lt. Col. Wm. A. Fifer-----------------
6
-------------------------------------
Senegal -------------- Lt. Col. David H. Anderson ------------
5
-------------------------------------
Singapore ------------ Col. Rudolf W. Kogan_______________
10
---- ---------------------------------
Sri Lanka____________ Comdr. Ralph L. Seger, Jr------------
3
---------------------------------------
Sweden -------------- Col. John R. Burman __--------------
13
--------------------------------------
Switzerland ---------- Col. Edward P. Freeman ------------- -_
7
------------------------------------
United Kingdom______ Rear Adrn. Wm. H. Livingson__-_.__-
17
--------------------------------------
Vietnam_____________ Mag. Gen. John E. Murray____________
20
---- --------------------------------
Yugoslavia___________ Col. John W. Klingelhoefer____________
9
--------------------------------------
1 The ost of operating and maintaining TAFT's, U.S. project manager, and U.S. Corps of Engineers is fully reimbursed
by the recipient government.
2 Defense attache offices (DAO). In addition to their normal duties, defense attaches reflected above have some respon-
sibility for administration of security assistance. Bacajse the preponderance of time devoted 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 foreign 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 government 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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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 their 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 14. Termnination 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 in fiscal year 1974. Within this fiscal
1975 ceiling, no more than $91.5 million may be used for grants, includ-
ing grants of excess defense articles, three-fourths of the grant pro-
gram in fiscal year 1974. Beyond fiscal year 1975, the Committee pro-
vided 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
tIn millions of dollars and fiscal years)
1974
program
Grants-----------------------------------------
121.9
200.8
91.5
61.0
30.5
Military assistance program------------------
(78.1)
(161.5)---------- --_----------------------
Excess defense articles----------------------
-
(21.8)
-
(20.8) ------------------------- _ ----- ---
MAP supply operations----------------------
(22.0)
(18 * 5) ------------------------------------
Credit sales ------------------------------------
56.7
52.0
42.45
28.3
14.15
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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cial capabilities" and that a plan be devised "for phasing out U.S.
assistance."
Section 15. Authorization for Security Supporting Assistance
This section amends section 532 of the Act to authorize $585,500,000
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 program proposed by the Executive Branch, as modified by the
Committee, is shown in the following table:
SECURITY SUPPORTING ASSISTANCE
[in thousands of dollarsi
Thailand --------------------------------------------------------- 10,600 7,400 --------------
Philippines----------------------------------------------------- 49,300 700 --------------
Egypt---------------------------------------------------------------------------------------- 250,000
Israel------------------------------------------------------------ 50,000 50,000 250,000
Jordan----------------------------------------------------------- 50,000 55,000 77,500
Malta------------------------------------------------------------ 14,383 9,500 9,500
Spain----------------------------------------------------------- 3,000 3,000 3,000
U.N. Forces Cyprus (UNFICYP)...__--------------- -__-_____________ 2,400 1,600 4,800
Interregional support costs_________________________________________ 17,276 3,000 2,700
Subtotal--------------------------------------------------- 19 ,959
Indochina program------------------------------------------------ 42 , 392
New obligationalauthority -----------------------------------
130,200
(r)
622, 351 130, 200
-22, 351 -17, 700
600,000 112,500
597, 500
(r)
397, 500
-12,000
I Indochina programs authorized separately under "Indochina relief and reconstruction" in fiscal year 1974 and fiscal
year 1975.
Section 16. Transfers Between Accounts
Subsection (a) amends section 610 of the Foreign. Assistance Act
in two major respects.
Paragraph (1) (9hanges the transfer authority contained in section
610 (a) to restrict its use only to transfers of funds between economic
assistance programs. Transfers of funds appropriated for economic
assistance programs for use in the military assistance program will
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, ether
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 authorized
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.
Subparagraph (b) (1) Repeal of Special Authorities.-This provi-
sion, initiated by Senator Symington, repeals section 614: of the Foreign
Assistance Act of 1961.
Section 614 contains general authority for the President to waive
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41
any of the restrictions or requirements of the Foreign Assistance Act
when he finds it "important to the security of the United States" to
do so. The waiver authority can be used to provide assistance each
fiscal year to the extent of $250,000,000 in dollars and $100,000,000 in
foreign currencies notwithstanding provisions in the Act which other-
wise would have prohibited the furnishing of the assistance. Under the
provision, up to $50,000,000 can be furnished to any one country in a
year through use of the waiver authority, but that limit does not apply
in the case of a country which is a "victim of active Communist or
Communist-supported aggression."
In effect, section 614 allows the President to override any of the re-
strictions Congress has required for the foreign aid program, unless
the restriction specifically states that it may not be waived through
use of the 614 authority. For all practical purposes, section 614 is a
blank check to the President signed by the Congress.
This authority can be used both to ignore restrictions in the Act, as
well as to override foreign aid funding decisions made by Congress in
the authorization and appropriation bills.
Section 610 of the Act authorizes the President to transfer funds
appropriated for one purpose and use them for a different purpose.
However, there are limits to this transfer authority and the Committee
has in this bill, prohibited the shifting of economic aid for military
uses. Under existing law not more than 10% can be taken from one
appropriation category and transferred to another category. And the
category to which the funds are transferred cannot be increased by
more than 20 percent of the amount originally appropriated for that
purpose.
But, this restriction is more nominal than real since the President
can use the authority in Section 614 to waive those percentage limita-
tions. In 1970 this authority was used by the President to take $50.-
000,000 of the funds Congress had appropriated for economic aid and
convert it into.military aid for Cambodia, at a time when no request
had even been submitted to Congress for aid to that country.
Congress has given Presidents entirely too much power and author-
ity in using foreign aid funds. Repeal of section 614 will be a signifi-
cant step toward restoring Congress' power over the foreign aid purse-
strings.
Subparagraph (b) (2) makes technical changes in various provisions
of the Act to conform to the changes in section 610 and the repeal of
Section 614.
Section 17. 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 con-
ducted from such facilities and they rely on the news media to perform
this service.
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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 18. Prohibiting Police Training
Section 18, 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 internal security forces, of a foreign country.
The prohibition will 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 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
Foreign Assistance Act of 1961 which was adopted by Congress last
year. As approved by the Committee and passed by the Senate the
provision that became section 112 would have prohibited all training
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-
ments 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 UnitedStates 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,
the total United States foreign aid effort. In undeveloped
areas of the world, the costs of public safety program 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 superceded by
this prohibition, is repealed.
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Section 19. Ceiling on Assistance to C/tile
This provision, sponsored by Senator McGee, places a ceiling of $65
million on the total amount of assistance that can be provided by the
United States to Chile during fiscal year 1975. Of the overall amount,
not more than $10 million can be used for military grant assistance
and foreign military credit sales. The executive branch requested
a total aid package for Chile amounting to $84.9 million, of which
$21.3 million was for military 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. The Chilean Government's
record in the human rights field is dismal indeed and the prospects for
improvement are not the most encouragin even with the news that
all of the recently-announced death sentences have now been coin-
muted to prison terms. This decision by Chilean authorities was of
critical significance during the Committee's consideration of the aid-
to-Chile issue. In the absence of it, the Committee would probably
have recommended a blanket cut off of all military assistance and credit
sales scheduled for Chile in this fiscal year. This is all but certain to
happen when next the Committee considers foreign laid legislation,
unless in the interim the authorities in Chile have acted decisively to
improve their record on the human rights issue.
Sections 20-27. Indochina
GENERAL COMMENTS CONCERNING ACTIONS BY TIIE COMMITTEE RELATING
TO INDOCHINA
In the course of its consideration of S. 3394 the Committee took
several related actions designed to reduce and limit further the scope
of United States involvement in Indochina. These include expenditure
ceilings, personnel ceilings, and authorization of economic assistance
by specific categories sand programs.
A central feature of this bill is a policy statement which calls on
the Executive Branch to take new initiatives designed to bring about
an effective, cease-fire throughout Indochina, to reduce arms shipments
to the area, and to bring about a lasting settlement of the issues which
have fueled the past quarter century of tragic conflict. In addition, the
Committee has set forth idelines for economic assistance designed to
ensure the effective utilization of such assistance as the Congress may
see fit to provide for the Indochina area in the future. It has also speci-
fied the types of assistance activities which may be carried out under
the authorizations provided for the 1975 fiscal year. The Committee
believes that the restrictions: and policy guidelines, it recommends
are appropriate for the United States' limited and diminishing re-
sponsibilities and interests in Indochina and that they will enhance the
prospects for a peaceful settlement of the unresolved political and
military issues in the area.
The specific Indochina items'in the Committee bill are explained in
detail in the section-by-section analysis of this report. In order that
the overall scope of the Committee's recommendations may be more
easily understood a summary of the major aspects follows:
Expenditure ceilings.-The bill establishes country-by-country
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ceilings on total obligations which may be incurred in fiscal year 1975
for economic and military assistance programs in South Vietnam,
Cambodia and Laos. Senator Symington proposed these ceilings.
In previous years similar restrictions were placed on United States
expenditures in Cambodia and Laos but this is the first time that all
three Indochina countries will have been covered and the first; time
that any ceiling has been placed on United States spending in
Vietnam.
The ceilings recommended for the three countries are : Vietnam
$1,280,000,000; Cambodia $347,000,000, and Laos $100,000,000, a, total
of $1,727,000,000 for the three. This compares with a total of $'),120,-
300,000 proposed for these programs by the Executive Branch. Thus,
the Committee recommends that the requested foreign aid program
for Indochina be reduced by $1,393,300,000. Comparative data is con-
tained in the following table :
ASSISTANCE TO INDOCHINAESTIMATED FISCAL YEAR 1974, EXECUTIVE BRANCH PROPOSAL FOR-FISCAL YEAR
1975 AND CEILINGS RECOMMENDED BY COMMITTEE
[In millions of dollars[
Executive Committee Reduction
branch recommen- from
Estimate, proposal, dation executive
e
fiscal year r fiscallyy7ar for fiscal branch
I year 1975 request
South Vietnam:
1. Military assistance (MASF),_.
----------------
864.5
1,485.0
700.0
-7850
2. General economic assistance (I
PR)______--_______
a 349.0
750.0
420.0
-330
0
3. AID loan-
50.0
.
4. Public Law
____
304.7
160.6
160.0
-.6
Total, South Vietnam________________________
1,568.2
2,395.6
1,280.0
1,115.6
Cambodia:
---
1. Military assistance3 _______ _-________-__
4399.3
391.3
200.0
-191.3
2. General economic assistance(IPR)--------------
95.0
110.0
70.0
-40.0
3. Public Law 480_______________________________
194.2
77.0
77.0
--------------
Total, Cambodia ---- ____________________
683.5
578.3
347.0
-231.3
Laos:
1.Military assistance -----------------------------
1581.0
490.9
355.0
-35.9
2. General economic assistance (IPR)______________
40.6
55.2
45.0
-10.2
3. Public Law 480-------------------------------
3.6
.3
.3
Total, Laos -------- _____------------ ........
125.2
146.4
100.0
-46.4
Total, Indochina ____________________________
2,381.9
3,120.3
1,727.0
-1,393.3
I New obligational authority and excess defense articles.
3 Includes supplemental appropriation of $49,000,000.
3 Includes supply operations and excess defense articles.
4 Includes $250,000,000 in Department of Defense stocks.
I Military assistance service funded.
Transferability of funds.-This bill permits the one-way transfer
of military support funds provided for South Vietnam, Cambodia, and
Laos to be used for war relief, reconstruction or general economic
development in those countries. The transfer authority, sponsored by
Senator Case, is a complementary feature to the overall ceilings. It
recognizes the desirability of allowing the Executive Branch a degree
of flexibility in the reallocation of overall U.S. resources., Since it is a
one-way authority, however, the Executive Branch is precluded from
using the transfer authority to increase military aid at the expense
of relief and economic programs. The Committee hopes that the Execu-
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45
tive Branch will use the transfer authority to encourage a shift in
emphasis from military to political confrontation in South Vietnam
and Cambodia. The transfer authority could also be useful in the
context of possible negotiations to limit future outside military to the
two Vietnams.
Amounts
In acting on Executive Branch requests for military and economic
assistance the Committee has recommended amounts sufficient to meet
the basic needs of the recipient countries consistent with the policy
objectives set forth in the bill. The amounts recommended by the Coin-
mittee also take into account the recipient's ability to make effective
use of United States funds as well as the constraints on the United
States' ability to provide funds in a time of high inflation, sizeable
budget deficits, and economic uncertainty. here at home.
Within the overall ceiling of $1,280,000,000 for Vietnam, the Com-
mittee authorized $420,000,000 for general economic assistance, $330,-
000,000 less than requested by the Executive Branch. The balance of
the ceiling is made up of $160,000,000 in Public Law 480 commodities,
which the Executive Branch programmed for South Vietnam in fiscal
year 1975, and $700,000,000 for military support, the amount provided
in the Department of Defense appropriation bill.
The Committee not only reduced the Administration's request but
also included in the bill guidelines to insure more effective utilization
of any United States aid that may be approved in the future.
Although the economic problems of Vietnam are particularly com-
plex, the Committee's guidelines are also applicable to Cambodia and
Laos. The Committee expects the specific plans and performance
criteria which are called for in the guidelines to provide a basis for
evaluating AID and recipient government performance under the
fiscal year 1975 program and against which future Indochina aid re
quests may be critically examined. Moreover, the Committee believes
that specific guidelines are imperative as a means of ensuring that
whatever United States assistance is made available will be used
wisely. The Committee feels very strongly that it would be an abdica-
tion of Congress' responsibilities to make available vast amounts of
the taxpayers' money to be spent at the discretion of the Vietnamese
and AID.
In adopting these guidelines the Committee does not intend to com-
mit itself to support of continued aid to Vietnam at these or any other
levels. The Committee will consider the situation anew next year in the
light of developments.
The Committee recommends the authorization of $70,000,000 of
economic assistance to Cambodia. The amount provided is intended to
sustain Cambodia until a cease-fire can be arranged between the Phnom
Penh government and the Khmer insurgents. The reduction in the
Cambodian economic request also reflects the elimination of what the
Committee believes to have been "padding" in the program.
The war in Cambodia is clearly a civil war. The Committee staff
has reported that U.S. intelligence officials acknowledge that the
North Vietnamese play little or no role in the current fighting. Re-
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ports from Cambodia indicate diversion grossly excessive use of
ammunition by the Cambodian military including massive amounts
of "harassment and interdiction" fire. It is also noted that the insurgent
Cambodian forces employ considerable amounts of United States am-
munition, particularly 105 mm. howitzer shells. Ammunition alone
accounts for over $300,000,000 of the proposed $391,300,000 Cam-
bodia program. The Committee believes that this amount should be
cut in half. Other economies could be realized if better leadership
were exercised on the government side. Accordingly, the Committee
has authorized $200,000,000 for military assistance in Cambodia, which
still appears quite large in view of the fact that the attacking forces
are only about one-fourth the size of the Lon Nol farces.
In any event, the war in Cambodia must be stopped and, as the
Committee has pointed out. in its policy recommendations, the United
States should take steps to establish contact with the Khmer insurgents
to do what is necessary in order to bring about a cease-fire at the
earliest possible (late.
In Laos, the Committee could find no valid justification for the
Administration's proposal to provide more military assistance dur-
ing a year of expected cease-fire than was provided during the past
year. Accordingly, the Lao military assistance program was reduced
from $90,900,000 to $55,000,000. The original request did not assume
cease-fire conditions and United States officials now believe $55,000,000
in military assistance should be sufficient.
United States economic aid in Laos is used primarily to support
the economy of the capital city of Vientiane. The $45,000,000 ap-
proved by the Committee should be sufficient, to accomplish that
objective. The existence of the authority to transfer military funds
to economic development purposes should provide an incentive to both
sides to hold down fighting and thus enable the Lao to use most
of the $100,000,000 total aid authorized for constructive or humani-
tarian. purposes.
United States policy in Laos is designed to facilitate the establish-
ment of peace and national reconciliation. To this end, United States
assistance must operate within the terms of the agreements on a
cease-fire and a coalition government signed by the Laotian parties
in February and September, 1973. Since that latter agreement estab-
lishes a Provisional Government of National Union, American aid
should be channeled through that government to the extent possible.
Also insofar as is possible, United States programs for humanitarian
assistance, reconstruction, and development should be available to all
areas of Laos and should be directed to wherever the need is greatest
and the assistance desired.
Specific Program Authorisations.-Upon the recommendation of
Senator Case, the Committee on Foreign Relations has specified that,
economic assistance to South Vietnam, Cambodia and Laos shall be
authorized in four major program categories. In the case of South
Vietnam, the Committee authorized specific amounts for projects or
programs -within each of the major categories.
The Committee has attempted to authorize a balanced program of
economic assistance for South Vietnam within the overall total au-
thorized. In so doing, the Committee expects detailed and regular re-
porting on the progress of each general. program and detailed descrip-
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tions of any activities to be carried out under any sub-category within
the four major categories.
To insure that the objectives of each general program and each sub-
program are met, the Committee plans to conduct whatever site visits
and audits are necessary to monitor the programs.
The budget authorizations for the four general categories of activi-
ties and the line items for the sub-programs are austere, reflecting a
very significant reduction in the Executive Branch recommendations
for economic assistance to South Vietnam.. But, while severe, the eco-
nomic aid principles and political objectives sot forth in the bill are
designed to foster meaningful. economic development, expansion of
agricultural production and qualitative improvement in the life of
the people of Vietnam regardless of political persuasion. A limited
amount of funds is provided for resettling war refugees now living in
urban areas, although the Committee considers that present plans for
the program are inadequate.
The Committee is dismayed by reports of continuing waste and mis-
management in South Vietnam of United States assistance funds and
the failure to account adequately for the expenditure of funds made
available by the Congress. Under the tightly drawn budgetary pro-
gram recommended the Committee hopes to rectify this situation.
Section 20. Statement of Policy-Indochina
Section 20, initiated by Senator Humphrey, is a statement of policy
by Congress relative to the situation in Indochina.
Congress finds that the cease-fire promulgated in the Paris Agree-
ment on Ending the War and Restoring Peace in Vietnam has not been
observed by any Vietnamese party to the conflict. Hostilities of an
offensive and defensive nature still continue in South Vietnam. In
Cambodia, the conflict between insurgent forces and the Lon Nol gov-
ernment-has intensified resulting in widespread human suffering and
the near total collapse of the Cambodian national economy.
The Congress further finds that continuation of the military strug-
gles in South Vietnam and Cambodia is not in the interest of the
parties directly engaged in the conflicts, the people of Indochina or
world peace.. In order to lessen the human suffering in Indochina and
to bring about a true peace there, the Congress hereby urges and re-
quests the President and the Secretary of State to undertake immedi-
ately the following measures :
(1) Begin negotiations with representatives of the Soviet Union
and the People's Republic of China towards a mutually agreed upon
and. rapid de-escalation of military assistance on the part of the three
principal suppliers of arms and materiel to all Vietnamese and Gain-
bodian parties engaged in conflict.
(2) Take all necessary measures strongly requesting that the gov-
ernment, of the Khmer Republic enter into negotiations with repre-
sentatives of the Khmer Government of National. Union which will
lead to an immediate cease, fire and political settlement of the con-
flict. Use all available means to establish contact with the Khmer Gov-
ernment of National Union and to urge them to participate in such
negotiation. The United States should urge all Cambodian parties to
use the good offices of the United Nations or a respected third country
for the purpose of bringing an end to hostilities and reaching a polit-
ical settlement.
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(3) Utilize any public or private forum to negotiate directly with
representatives of the Democratic Republic of Vietnam, the Provi-
sional Revolutionary Government and the Republic of Vietnam to
seek a new cease-fire in Vietnam and full compliance with the provi-
sions of the Paris Agreement on Ending the War and Restoring
Peace in Vietnam.
(4) Reconvene the Paris Conference to seek full implementation
of the provisions of the Agreement of January 27, 19'73 on the part
of all Vietnamese parties to the conflict.
(5) Maintain regular and full consultation with the appropriate
committees of the Congress and report to the Congress and the Na-
tion at regular intervals on the progress toward obtaining a total ces-
sation of hostilities in Indochina and a mutual reduction of military
assistance to that area.
Section 21. Statement of Principles To Govern U.S. Economic Aid to
Indochina
Section 21, initiated by Senator Humphrey, is a policy statement
by Congress concerning the principles which should guide U.S. eco-
nomic assistance programs to Indochina.
Congress finds that after expending over a billion dollars in funds
for economic purposes in Indochina last year, and vast amounts in
previous years, that little in lasting economic benefit remains. A large
proportion of the funds expended has been used for consumable
items related to the war effort. Very little of our money has found
its way into capital investments of lasting productive benefit to
the people.
Congress calls upon the President and Secretary of State to take
immediately the following actions designed to maximize the benefit
of United States economic assistance.
(1) Organize a consortium to include the multilateral financial
institutions to help plan for Indochina reconstruction and develop-
ment ; to coordinate multilateral and bilateral contributions to the
area's economic recovery ; and to provide continuing advice to the
recipient nations on the use of their own and outside resources.
(2) Develop in coordination with the recipient governments, other
donors and the multilateral financial institutions a comprehensive
plan for Indochina reconstruction and economic development.
(3) Develop country-by-country reconstruction and development
plans, including detailed plans for the development of individual eco-
nomic sectors, that can be used to identify and coordinate specific
economic development projects and programs and to direct U.S. re-
sources into areas of maximum benefit.
(4) Shift the emphasis of United States aid programs from con-
sumption oriented expenditures to economic development.
(5) Identify possible structural economic reforms in areas such as
taxation, exchange rates, savings mechanisms, internal pricing, income
distribution, land tenure, budgetary allocations, and corruption, which
should be undertaken if Indochinese economic development is to
progress.
(6) Include in Indochina economic planning and programming
specific performance criteria and standards which will enable the
Congress and the Executive Branch to judge the adequacy of the
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recipients' 'efforts and to determine whether, and what amounts of,
continued American funding is justified.
None of the foregoing is meant to imply continuation of American
financial commitment beyond the authorization provided. for in this
legislation.
Section 22. Authorization of Economic Assistance for South Viet-
nam, Cambodia, and Laos
Section 22 amends section 802 of the Foreign Assistance Act to
authorize apropriations for fiscal year 1975 to provide economic as-
sistance, other than Public Law 480 assistance, to Indochina. The Com-
mittee recommends an authorization of $550,000,000 for fiscal year
1975, a reduction of $389,800,000 from the Executive Branch request
of $939,800,000. This is an increase of $46,000,000 above the authoriza-
tion for fiscal year 1974. $449,000,000 was appropriated for this pur-
pose in fiscal 1974.
The table below compares the Committee's recommendations with
the Executive Branch request and the program for fiscal year 1974:
Executive branch
Committee Reduction in exec-
request
recommendation,
utive branch
Fiscal year 1974 fiscal year 1979
fiscal year 1975
request
South Vietnam------------------------------ x$399,000,000 $750,000,000
$420,000,000
-$330, 000, 000
0
0
Cambodia__________________________________ 95,000,000 110,000,000
200
000
5
70,000,000
000
45
000
-40,000,
0
000
200
-10
,
,
Laos____________________________________40,000,000 5
,
,
,
, 000
Regional programs___________________________
AID supportcasts
13, 000, 000 18, 700, 000
11, 250, 0(10
-7, 450, 000
Total--------------------------------
549,000,000 8 943, 30d, 000
550,000,000
-393,300,000
I Includes a $50,000,000 development loan.
8 The pro rata share of AID's worldwide technical and administrative activities which support the Indochina program.
Separate in-country AID support costs are included in the country amounts.
8 Includes $3,500,000 in reimbursements and recoveries.
Section 23. Assistance to South Vietnamese Children
This section insures that $10,000,000 will be available for assistance
to child care programs in South Vietnam in fiscal year 1975, a $5,000,-
000 increase in the earmarking for that purpose from the fiscal year
1974 requirement. Funds for the child care program can be derived
from a combination of funds made available through the authoriza-
tion in this bill and local currencies. The Committee has approved a
specific line item of $8,200,000 for child care programs. Thus, an addi-
tional $1,800,000 must be made available in local currencies.
One of the most tragic results of the Indochina war is the plight
of millions of disadvantaged children left in its wake. The orphaned,
the maimed, and the homeless are continuing victims of the violence
in Indochina.
The Committee has noted the affirmative reponse of AID to the
Congressional mandate of last year.
Section 24. Limitations With Respect to South Vietnam
Section 24 contains limitations relative to South Vietnam which
will be added as a new section 806 to the Foreign Assistance Act.
The new subsection (a) of 806 establishes a ceiling of $1,280,000,000
on amounts that may be obligated in fiscal year 1975 for the purpose
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of providing economic or military assistance to South Vietnam. Under
that ceiling up to $700,000,000 can be for military assistance, $160,-
000,000 for Public Law 480 commodity assistance, and $420,000,000 for
economic assistance as specified in the bill.
COMPARATIVE DATA ON THE CEILINGS FOR SOUTH VIETNAM
[In millions of dollars]
Executive
branch Committee
Estimate, proposal, recomrnenda-
fiscal year fiscal year tion for fiscal
I 1 year 1975
South Vietnam:
1. Military assistance (MASF) r ---------------------------------
864.5
1, 485.0 700.0
2. General economic assistance (IPR) ---------------------------
-349.0
750.0 420.0
3. AID lean------------------------------------------------
50.0
----------------------------
4. Public Law 480---------------------------------------------
304.7
160.6 160.0
--
Total, South Vietnam--------------------------------------
---
1,568.2
2,395.6 1,280.0
I New obligational authority and excess defense articles.
Includes supplemental appropriation of $49,000,000.
Similar ceilings have been enacted in the past for Laos and Cain-
bodia. They were generally effective in both instances. Whereas actual
U.S. expenditures in Laos had consistently been almost twice what
had been previously reported to Congress before the ceiling was im-
posed, thereafter spending stayed substantially within the limits
prescribed. The ceiling was effective in Cambodia but it was allowed to
lapse in fiscal year 1974. The Executive Branch subsequently grossly
exceeded the overall amounts projected at the beginning of the year
for all categories of aid to Cambodia. Public Law 480 deliveries esca-
lated, for example, from a $30 million projection to $194 million. For
military assistance, the Administration originally requested $167,200,-
000. A total of $399,300,000 was ultimately used for that purpose,
including $250,000,000 in materials taken from Defense Department
stocks.
In Vietnam, the accounting under the Military Assistance Service
funded (MASF) program is now acknowledged to have been inaccu-
rate over the years. No one really knows how much was spent in Viet-
nam for military support between 1966 and 1973. When this fact came
to light, the Senate Committee on Armed Services acted decisively to
correct the many loopholes in the management and accounting for
this program. The inclusion of military aid in the ceiling for South
Vietnam is intended to complement the actions taken by the House of
Representatives and the Senate on the Department of Defense Appro-
priation Bill.
Paragraph (3) of 806(a) provides authorizations by major cate-
gories and by program or project under each of those categories.
'I'his provision and the specific authorizations for Cambodia and Laos
were initiated by Senator Case.
The Committee has approved four major programs for economic
assistance to South Vietnam. These are: (A) Humanitarian Assist-
ance; (B) Agricultural Assistance; (C) Industrial Development Aid
and (D) Miscellaneous which includes funds for purchase of petro-
leum and for support of the USAID mission in Vietnam.
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Each of these four categories is complete in itself. No transfer of
funds between these four general categories is permitted except that
petroleum procured in Part D of the authorization may be used
for the support of any of the other three major programs. Transfers
within any of the subcategories of the four major categories of a
reasonable kind of response to changing circumstances are permitted
provided timely notice is given to Congress before any transfer is
carried forward.
Under an amendment, also initiated by Senator Case, approved by
the Committee, funds available for military assistance to Indochina
may be transferred for humanitarian relief and economic develop-
ment programs within each country, on a country-by-country basis.
Transfers cannot be made from one country to another. This discre-
tionary feature of the bill should assist further the development of
humanitarian assistance programs the Committee deems crucial for
Vietnam.
The most crucial of the programs approved for Vietnam is that
for humanitarian relief, for which the Committee has allocated $05,-
000,000. The Committee hopes that a concerted effort will be made to
prevent the use of United States funds for the support of so-called
refugees activities which have direct political or military objectives.
One way in which this can be done is to begin to provide more United
States support to voluntary and international agencies working in the
refugee field. This is largely a local cost program and the Committee
seeks to insure that both dollars and the piasters which they generate
are used for the intended purpose.
Assistance in agricultural production is the next most valid need
in South Vietnam. The Committee has recommended that $188,000,000
be used for this purpose. The Committee is of the view that AID
should move away from placing further emphasis on capital intensive
agriculture.
Additional data concerning the Committee's recommendations
follows :
1. llumanitartan assistance
A. AID recommended budget : millions
Refugee relief and resettlement--------------------------- ---- $86. 5
Child care---------------------------------------------------- 8.2
Health care-------------------------------------------------- 10.3
City to farm program----------------------------------------- 30.0
R. Committee authorization :
Refugee relief and resettlement-------------------------------- 66. 5
Child care---------------------------------------------------- 8.2
Health care--------------------------------------------------- 10.3
City to farm program------------------------------------------ 10. 0
Total authorization----------------------------------------- 95.0
The Committee approved the full requests made for child care
and health care. Child care funds should be targeted to help provide
immediate necessities such as food stuffs and training supplies. More-
over, every effort should be made to bring child care concepts to foster
homes which are in dire need of upgrading. Every effort should also be
made to find ways to make child care centers sell-sufficient if possible.
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Urban squalor, both in Saigon and other urban centers, is a result
of years of war. Hundreds of thousands of refugees try to make a
living as best they can under the circumstances. While this was pos-
sible when large numbers of American soldiers and support personnel
were in Vietnam, it is far more difficult today. Soaring inflation and a
depressed economy and the continuing war make the urban poor a
very real threat to the regime. If it is possible, to work out a land
acquisition program to relocate many formerly agrarian people, such
an effort should be supported. However the prospects for a rapid trans-
fer of poor urban families to the countryside seems diin.. Consequently,
only part of the request for the "City to Farm" program is approved
in this recommended budget.
The problem faced by the South Vietnamese government concern-
ing refugees and the urban masses was summarized in this way in a
recent report by the Committee staff :
"The refugees and urban unemployed present a real dilemma
to the Vietnamese government. If the people remain in the
camps and cities, they present a political problem as well as a
further welfare burden. on in already over-extended national
budget. Moving them to rural areas, as proposed, would shift
the economic support burden from the national budget to the,
people themselves and to the natural resources of the land-
presuming land is available. However, the transfer of people
out of camps and the cities creates a population control prob-
lem by exposing them to contact with the Viet Cong. The
compromise between military control and economic survival
is the placement of war victims on previously uncultivated
land in government controlled or marginally controlled areas.
But these new lands require large amounts of capital invest-
ment for roads and land clearing to make them accessible
and arable. The losers are the war victims themselves who
see destined to suffer no matter where they are."
II. Agricultural assistance
A. AID recommended budget : Millions
Fertilizer, POL, and pesticides------------------------------- $185
Rural credit--------------------------------------------------- 60
Canal dredging------------------------------------------------- 10
Low lift pumps ------------------------------------------------- Fish farm development---------------------------------------- 4
Salt water intrusion -------------------------------------------- 11
Total AID recommendations---------------------.------------ 274
B. Committee authorization :
Fertilizer, POL, and pesticides--------------------------------- 150
Rural credit-------------------------------------------------- 20
Canal dredging----------------------------------------------- 10
Low lift pumps----------------------------------------------- 4
Fish farm development---------------------------------------- 4
Total authorization------------------------------------------ 188
The Republic of Vietnam has the capacity to become self-sufficient
in essential foodstuffs and, even with its increased population, a major
exporter of food products and forestry products such. as raw and fin-
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53
ished lumber. But radical change will be needed for this to come about.
A significant problem is the continuation of the war which makes the
development of the forestry and rubber industries virtually impos-
sible. The war also diminished the amount of available crop growing
land-especially rice areas-and interrupted the food distribution
system.
Even in light of these conditions progress has been made, in expand-
ing food production, especially rice, through the introduction of hybrid
rice plants which require fertilizer and pesticides for growth. The
United States should encourage South Vietnam to continue to work
toward self-sufficiency in food production.
Less funds than were requested are being made available for the
purchase of fertilizer, POL, and insecticides as an inducement to the
Government of South Vietnam to work toward converting the cur-
rently subsidized agricultural system to a self-sufficient system.
III. Industrial development
A. AID recommended budget : Millions
Commodities for industrial production------------------------ $155.0
Industrial credit--------------------------------------------- 40.0
Industrial park---------------------------------------------- 5.0
Urea plant--------------------------------------------------- 80.0
Export processing zone_______________________________________ 5.0
Highway construction---------------------------------------- 3.4
Development planning ----------------------------------------- .6
Total AID recommendations --------------------------------- 289.0
B. Committee authorization :
Commodities for industrial development ------------------------ 85.0
Industrial credit--------------------------------------------- 10.0
Development planning---------------------------------------- .6
Total authorization----------------------------------------- 95.6
The Committee has made, substantial reductions in the industrial
development category. In the Committee's view, humanitarian and
agricultural needs are the most important to the Vietnamese and in-
dustrial development is of far less significance when it comes to
deciding how to divide the limited funds available.
Transportation ------------------------------------------------------. $30
Support of AID mission---------------------------------------------- 11.4
The last category is assistance to help provide fuel and other com-
modity support to Vietnam's transportation system and to pay for the
costs of AID's administrative and technical activities which are not
directly chargeable to a specific project.
Implementation of Ceiling
The new subsections (c), (d) and (c) contain further specifics
concerning the ceiling imposed on spending for South Vietnam.
New subsection (c) provides that in computing the limitations on
obligation authority under subsection (a) with respect to any fiscal
year, there shall be included in the computation the value of any
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goods, supplies, materials, equipment services, personnel or advisers
provided to, for, or on behalf of South Vietnam in the fiscal year by
gift, donation, loan, lease or otherwise. For the purpose of the. subsec-
tion, "value" means the fair market value of any goods, supplies,
materials, or equipment provided to, for, or on behalf of South Viet-
nam but in no case less than 331/3 per centum of the amount the United
States paid at the time the goods, supplies, materials, or equipment
were acquired by the United States.
New subsection (d) provides that no funds may be obligated for
any of the purposes described in subsection (a). in, to, for, or on
behalf of South Vietnam in any fiscal year beginning after June 30,
1975, unless the. funds have been specifically authorized by law en-
acted after the elate, 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 purpose during the
fiscal year.
New subsection (e) states that after the date of enactment of the
section, whenever any request is made to the Congress for the appro-
priation of funds for use in, for, or on behalf of South Vietnam for any
fiscal year, the President shall furnish a written report to the Con-
gress explaining the purpose for which the funds are, to be used in
the fiscal year.
New subsection (f) requires the President to submit to the Congress
within thirty clays after the end of each quarter of each fiscal year, be-
ginning with the fiscal year which begins July 1, 1974, a written report
showing the total amount of funds obligated in,, for, or on behalf of
South Vietnam (luring the preceding quarter by the United States
Government and specifies that it shall include a general breakdown
of the total amount obligated, describing the different purposes for
which the funds were obligated and the total amount obligated for
each purpose.
New Subsection (q) Limitations on U.S. Personnel in Vietnam.-
subsection (g) establishes ceilings on the number of Americans and
enactment of this bill. This ceiling applies to both direct hire and per-
sonnel employed by government contractors. Further reductions in
the ceilings are to become effective twelve, months thereafter. Within
the ceiling on American personnel a subceiling is imposed on the num-
ber of members of the U.S. armed services and all direct hire and
contractor personnel of the Department of Defense. The intent of
the Committee is that these limitations shall apply to both perma-
nently authorized and so-called temporary duty personnel.
The ceilings are as follows :
DOD 3d country
Overall personnel nationals
As of6monthsfrom enactment ------------------------------------- 4,000 2,500 800
As of 12 months from enactment____________________________________ 3,000 1,500 500
Of the 5;300 total personnel who were in South Vietnam as of
May 1974 some 3,650 were military or DOD; of these approximately
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55
850 were civilian direct hire DOD employees, 2,600 were DOD con-
tractors and 200 were uniformed military (50 attaches and 150 Marine
guards). The Committee was informed a year ago that by January
1974, all DOD direct hire personnel and all but 2,000 contractors would
be phased out. It was further assured that "very soon thereafter" con-
tractor personnel would number only 500. As indicated, these pledges
have not been met. The principal reason for this is that U.S. person-
nel are continuing to provide substantial. direct maintenance and op-
erational support to the Vietnamese armed forces. By this time, the
contractors were to have trained South Vietnamese to take over their
jobs but this has not occurred. Imposition of these ceilings should
stimulate the turnover to the Vietnamese of jobs that are now being
performed by U.S. contractors.
The progressively declining ceiling for U.S. supported third country
national personnel is also intended to foster South Vietnamese self-
sufficiency. Unless the so-called "TCN's" are controlled, departing
Americans will simply be replaced with other foreigners? Given the
skill and resourcefulness of the South Vietnamese and their long ex-
posure to American training and example, there is no justification for
continuing this practice.
New subsection (h) states that nothing in thenow section shall be
construed as a commitment by the United States to defend South
Vietnam.
Section 25. Limitations With Respect to Cambodia
Section 25 would add a new section 807 to the Act providing for
limitations with respect to Cambodia.
The new subsection (a) would set a ceiling of $347,000,000 in fiscal
year 1975 on obligations for the purpose of providing economic or
military assistance to Cambodia. It further specifies. categories of
assistance within the overall ceiling as follows : military assistance
$200,000,000; Public Law 480 commodity assistance $77,600,000; and
economic assistance $70,000,000.
COMPARATIVE DATA CONCERNING THE CEILING FOR CAMBODIA
[in millions of dollars[
Estimate,
fiscal year
1974
Executive
branch
request,
fiscal year
1,975
Committee
recom-
mendation
fiscal year
1975
Cambodia;
Military assistance'-----_-_
2399.3
391.3
200.0
General economic assistance (IPR)______________________________
95.0
110.0
70.0
Public Law 480_______________________________________________
194.2
77.0
77.0
I Includes supply operations and excess defense articles.
2 ncludes $250,000,000 in Department of Defense stocks.
The Committee has specified four areas of approved programming
for use of the $70,000,000 in economic assistance recommended for
Cambodia. These are humanitarian, commodity imports, multilateral
stabilization and technical support. Clearly the most urgent of these
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is humanitarian relief for which the Committee has allocated $20 mil-
lion. Unfortunately, both the Executive Branch and the Cambodian
Government have been slow to respond to the humanitarian needs of
the Cambodian people. At present almost all relief work in Cambodia
is being carried out by voluntary agencies. The Committee strongly
approves of this means of providing relief and will expect the Agency
for International Development to provide the maximum possible sup-
port to such agencies, including the International Committee of the
Red Cross, from the funds authorized. In this connection, the Commit-
tee has written into the bill a provision which exempts voluntary
agency personnel from the ceilings on American and third-country
national personnel.
The Committee has reduced the commodity import authorization for
Cambodia from $71 million to $31 million. Even the most casual ob-
server in Phnom Penh is keenly aware that, while the mass of the
Cambodian population is suffering intensely from the war, Cambodian
government officials and businessmen are enjoying an improved
standard of living-which can only have come from one source-the
U.S. taxpayer. Cambodia, is perhaps the outstanding example of the
failure of the "trickle-down" principle on which U.S. aid to Indochina
appears to be predicated.
ECONOMIC ASSISTANCE CATEGORIES, CAMBODIA
[In millions of dollars]
Executive Committee
Branch recom-
proposal mendation
Humanitarian------------------------------------------------------------------- 20.0 20.0
Commodity import ------------------------------------------------------------ 71.0 31.0
Multilateral stabilization --_---------------_------------------------------------ 17.5 17.5
Technical support and participant training----------------------------------------- 1.5 1.5
The new subsection (b) prohibits the transfer of economic assist-
ance or Public Law 480 funds for use for military aid purposes and
also prohibits transfers within the four categories of economic
assistance.
The new subsections (c), (d), (e) and (f) relate to the implementa-
tion of this ceiling on obligations for Cambodia requirements identi-
cal to those explained in the analysis of the new section 806.
The new subsection (g) reduces the current ceiling on U.S. person-
nel in Cambodia from 200 to 175 and on U.S. financed third-country
national personnel from 85 to 75. It would exempt personnel of volun-
tary relief agencies in Cambodia from the ceiling. Language is included
to make it clear that the ceiling on U.S. personnel includes contract
personnel.
The reductions contained in subsection (g) are designed to reduce,
our official involvement in Cambodia and to begin the process of
eliminating Cambodian dependence on the United States. They paral-
lel the Committee's action in reducing the level of U.S. military expend-
itures in Cambodia. In the. event the war is still going on in Cambodia
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next year the Committee expects to lower the personnel ceilings still
further in FY 1976.
While it would appear that the Embassy in Phnom Penh has
made an effort-not always successful-to remain within the letter
of the personnel restrictions, it is evident that American personnel
have become increasingly involved in a vast range of support and
advisory efforts, generally not including tactical military advice, de-
signed to compensate for the inadequacy of the Cambodian Govern-
ment. This expansion of the American role in Cambodia is contrary
to the intent of the original Congressional personnel restriction. The
Committee believes that by limiting the number of Americans in
Cambodia the degree of American involvement in Cambodian affairs
can be more effectively controlled and, thus limits can be put on Cam-
bodia's dependence upon the U.S. Government. It is now evident that
the Committee underestimated the energy and resourcefulness of 200
Executive Branch representatives in Phnom Penh.
While reducing the level of U.S. personnel in Cambodia, particu-
larl the military, the Committee also adopted an amendment offered
by Senators Case, Symington, and Humphrey, designed to encourage
expansion of private relief activities in Cambodia. At present these
are being carried out almost exclusively by American voluntary non-
profit organizations and by the International Committee of the Red
Cross. The Committee has been informed that these organizations are
willing to expand their operations in order to meet the increasing hu-
manitarian needs of the Cambodian people. In order to do so, how-
ever, the relief organizations need U.S. funds to support their person-
nel since they have now reached the limit of their. own resources. To
date, AID has been unwilling to provide personnel support funds to
the relief agencies since, if it did so, the personnel supported would be
subject to the personnel ceilings. The Committee questions the appro-
priateness of the Embassy's decision to give priority in its personnel
alldcation to military personnel, who now account for 124 of the au-
thorized total of 200, rather than to increasing the number working
on relief programs.
The new subsection (h) carries over the provision from subsection
655 (g) which states that the section shall not be construed as a commit-
ment by the United States to defend Cambodia.
Subsection (b) of section 25 repeals sections 655 and 656 of the
Foreign Assistance Act since they will become obsolete upon the enact-
ment of this act.
Section 26. Limitations With Respect to Laos
Section 26 will enact a new section 808 to the Foreign Assistance Act
of 1961 which will establish a ceiling on and specify the distribution of
United States assistance to Laos for fiscal year 1975. Subsection (a)
of the new section 808 imposes a ceiling of $100,000,000 on obligations
for the purpose of providing military and economic assistance to Laos
in fiscal year 1975. Under the ceiling, $55,000,000 is allowed for mili-
tary assistance and $45,000,000 is allowed for economic assistance,
which is allocated into four categories. The table below provides com-
parative data on assistance for Laos.
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ASSISTANCE TO LAOS
(in millions of dollars(
Estimate, fiscal
year 1974
Executive branch
request, fiscal
year 1975
Committee
recommendation,
fiscal year 1975
Laos:
Military assistance----_ --------------------------------
r 2 81.0
890.9
3 55.0
General economic assistance (IPR)------------------
40.6
55.2
45.0
Public Law 480-----------------------------------
3.6
.3
-----------------
Total, Laos-------------------------------------
125.2 146.4
100.0
I New obligational authority and excess defense articles.
2 Military assistance service funded.
3 Includes supply operations and excess defense articles.
Four categories of assistance authorized for Laos are: humanitar-
ian ; reconstruction and development ; stabilization ; and technical sup-
port. For these categories the Committee recommends the following :
ECONOMIC ASSISTANCE CATEGORIES, LOSS
Executive branch
request
Committee
recommendation
1. Humanitarian ---------------------------------------------------------
$15,300,000
$13,000,000
2. Reconstruction and development -----------------------------------------
22, 400, 000
9,900,000
3. Stabilization--- _-------------------------_--------------------------
17, 500,000
17, 500, 000
4. Technical support-----------------_----_-----------_----------------
(6,300,000)
4,600,000
Total-----------------------------------------------------------
$55,200,000
$45,000,000
The Committee has not reduced the Lao program in proportion to
other Indochina programs. Laos alone among the Indochina states has
reached a political settlement and the Lao people deserve encourage-
ment and assistance in making their government work. The amount
approved reflects the limit of what they can effectively absorb. It will
not be sufficient, however, to sustain Vientiane society in the manner
to which it became accustomed in the days of the massive American
presence. The reduction made in the Lao program came primarily out
of "reconstruction" where AID requested $11 million to build two
dikes, neither of which. required any dollar inputs. The AID request
for dollars for this purpose appeared to be but an effort to obtain addi-
tional free foreign exchange for Laos from the Congress.
United: States policy in Laos is designed to facilitate the establish-
ment of peace and national reconciliation. To this end, United States
assistance must operate within the terms of the. agreements on a cease-
fire and a coalition government signed by the Laotian parties in Feb-
ruary and September, 1973. Since that latter agreement establishes a
Provisional Government of National Union, American aid should be
channeled to the extent possible through that government. Also, insofar
as is possible, U.S. programs for humanitarian assistance, reconstruc-
tion, and development should be available to all areas of Laos and
should be directed wherever the need is greatest and the assistance
desired.
The new subsection (b) prohibits transfer of economic assistance
funds authorized for Laos for use as military assistance. Military as-
sistance funds may be, transferred to and used in the economic assist-
ance categories in accordance with the new section 809. There shall be
no transfers of funds between the four economic assistance categories.
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The new subsection (c) through (f) relate to implementation of this
ceiling for Laos, and are identical to those explained in the analysis. of
section 806.
The new subsection (g) states that the new section shall not be
construed as a commitment by the United States to defend Laos.
Section 27. Transfer of Funds
Section 27 adds a new section 809 to the Foreign Assistance Act.
Subsection (a) prohibits use of the transfer authority of section
610 of the Act to add to, or take away from, the funds appropriated
for assistance to South Vietnam, Cambodia, or Laos.
Subsection (b), initiated by Senator Case, provides that any funds
made available for military assistance for South Vietnam, Laos, or
Cambodia may be used for war relief, reconstruction, or general eco-
nomic development purposes.
Section 28. Assistance to Nations in the Middle East
This section contains authorizations for allocations of assistance to
nations in the Middle East. Although, with the exception of the pro-
posed authorization for the Middle East Special Requirements Fund,
the ' funds involved here are actually authorized in other provisions of
the bill, these specific allocations for the Middle East emphasize the
importance attached to these programs by the Committee and Execu-
tive Branch officials as a means of promoting peace and stability in the
region. In testimony on this bill Secretary Kissinger stated :
America has a vital stake in a lasting Mid-East settlement.
6ur traditional concern for the security of Israel, our trans-
formed relations with the Arab states, the danger of great
power confrontation which chronic Arab-Israeli conflict ere-
ates, and the necessity for a cooperative approach to the en-
ergy problem-all demonstrate the American interest. We are
asking Congress for sufficient resources to make it possible
for us to play a constructive role.
* * *
The program we propose would provide Israel with the
assistance needed to maintain its own security, strengthen-
ing its resolve to persevere in the negotiations assured of its
own . strength and our support.
It would give tangible expression to our new and fruitful
relations with various Arab countries and encourage those
seriously prepared to work for peace.
In short, we have both opportunity and responsibility in
the Middle East. Opportunity to reach the goal of the negoti-
ated peace that is so vital to world peace and that has so long
eluded us. Responsibility to assist those countries in the area
which have accepted that goal and which need our help in
reaching it. We hope that you will be able to act swiftly on
these proposals, both to signal the support of the U.S. Con-
gress for our policies in the Middle East and to enable u s to
act rapidly with funding.
The Executive Branch proposed a total of $907,500,000 in allocations
for the Middle East, $807,500,000 in allocations by country and
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$100,000,000 for a Middle East Special Requirements Fund. The
proposed allocations by country were as follows : (1) Israel-$50,000-
000 in economic aid and $300,000,000 in military credit sales; (2)
Egypt-$250,000,000 in economic aid; (3) Jordan--$100,000,000 in
military grant aid, $30,000,000 in military credits and $77,500,000
in economic aid.
The economic assistance proposed by the Executive Branch is to be
used as follows, according to the data presented to the Committee :
ECONOMIC ASSISTANCE, PROGRAM SUMMARY
[In thousands of dollars]
1973 1974 1975
actual estimated proposed
Egypt:
Security supporting assistance________________________________________________ 8,000 250,000
Suez Canal------------------------------------------------------------ 8,000 20,000
Reconstruction/development -----------------
_______________________________............ 150,000
Commodity imports------------------------------------------------------------------- 80,000
Israel: Commodity imports-. --------------------------------------- 50,000 50,000 50,000
Jordan: Security supporting assistance_______________________________ -50,000 55,000 77,500
With one exception, the Committee has approved the country alloca-
tions of economic assistance requested. The Committee approved an
additional $200,000,000 in economic assistance for Israel above the
amount requested. The Committee believes that Israel's serious eco-
nomic situation justifies this additional assistance. This action will re-
sult in bringing the level of economic aid for Israel up to that recom-
mended for Egypt.
Total foreign assistance proposed by the Executive Branch for the
Middle East, as modified by the Committee's action relative to Israel,
is shown on the table below :
FISCAL YEAR 1975 ASSISTANCE PROPOSALS FOR THE MIDDLE EAST
[in thousands of dollars[
Develo
Supporting mep. Excess
Public defense
Total assistance assistance Law 480 MAP FMS articles
Egypt------------------ 253,144 250,000 ----- 3,144
Israei__________________ 550,000 250,000 ------------ (1)---- ___-___ 2300,000 ------------
Jordan ----------------- 243,452 77,500 675 10,277 100,000 30,000 25,000
Middle East special re-
quirements fund ------ 100, OGO
Total ------------ 1, 146, 596 577,500 675 41,632 100,000 330, 000 25, 000
I Under review.
2 $100,000,000 of this amount is to be in credits which will be forgiven.
Section 28 adds a new Part VI to the Foreign Assistance Act, con-
sisting of three sections as follows :
New Section 901. General Authority for Assistance in the Middle East
Section 901 authorizes the President to furnish assistance under the
Act and credits and guaranties under the Foreign Military Sales Act
to nations in the Middle East. Such assistance, credits and guaranties
are to be provided within the framework of existing law. No additional
or special authority is provided by this section for Middle East pro-
grams.
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New, Section 902. Allocations
Section 902 indicates the levels of military assistance and security
supporting assistance authorizations intended for Middle East pro-
grams. The $100,000,000 for military assistance grants is for Jordan
while the $577,500,000 in supporting assistance is for Israel, Jordan
and Egypt. The $330,000,000 in foreign military credit sales is for
Israel and Jordan. This section does not authorize appropriations in
addition to the amounts contained in the bill for regular authoriza-
tions for military assistance, security supporting assistance, and the
credit sales program..
New Section 903. Special Requirements Fund
Section 903 authorizes appropriations for a Special Requirements
Fund of $100,000,000 for fiscal year 1975 to be used to meet needs for
economic assistance to nation's in the Middle East which cannot be
foreseen at this time. The Committee has prohibited use of these funds
for. military assistance. This is, in effect, a contingency fund for eco-
nomic aid to the Middle East. Administration officials have stated that
it is possible that some of this money will be furnished to Syria.
The Committee amended the Executive Branch request to insure a
greater congressional voice in how this fund is .used. In recent years
the Committee has been active in taking away some of the vast discre-
tionary powers that Congress in the past has given to the President.
In view of the sensitive situation that exists in the Middle East, the
Committee is of the view that Congress should be told in advance by
the President how he proposes to use these funds, and each body
allowed a period of 30 days within which it could, by passage of a
resolution, disapprove the proposal. The provision adopted by the
Committee is comparable to the statutory provisions for. Congressional
disapproval of government reorganization plans.
Subsection (b) repeals section 620 (p) of the Foreign Assistance Act
which prohibits aid to Egypt without a finding by the President that
such assistance "is essential to the national interest." Such a finding
would be redundant in view of the fact that this bill is intended to
authorize assistance for Egypt.
Section 29. Foreign Military Sales Act Amendments
Section 29 amends the Foreign Military Sales Act in a number of
respects.
Paragraph (1)-Conditions of Eligibility.-This paragraph clari-
fies an ambiguous provision in section 3(d) of the FMSA regard-
ing the ineligibility for further sales, credits and guaranties of coun-
tries that violate foreign military sales agreements. It makes clear
that corrective action by a country that has violated an applicable
agreement can restore its eligibility for sales, credits and guaranties
not only of sophisticated weapons, but of other defense articles and
defense services as well.
Paragraph (3)-Emphasis on Commercial Channels for Arms
Sales.-Paragraph (2) amends section 22 of the Foreign Military
Sales Act to prohibit sales of defense articles to a developed country if
the article is available through commercial sources in the United
States.
This provision is similar to a provision in the foreign aid bill passed
by the Senate last year which was deleted in conference. Its purpose is
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.to implement a policy declaration, also initiated in the Committee, de-
signed to minimize the government's role in arms sales to foreign
countries. That policy statement adopted by Congress last year, is now
contained in the, last paragraph of Section 1 of the Foreign _Military
Sales Act :
In order to reduce the role of the United States Govern-
ment in thc, furnishing of defense articles and defense services
to foreign countries and international organizations, and
return such transactions to commercial channels the United
States Government shall reduce its sales, credit sales, and
guaranties of such articles, and defense services as soon as,
and to the irlaxi.mum extent, practicable.
The basic objective of this provision is to get the United States Gov-
ernment out of the arms sales business and return these transactions to
commercial channels. Government policy controls would then be exer-
cised primarily through export licensing procedures. There is no evi-
dence that the Executive Branch has taken any action to implement
the policy approved by Congress last year.
Members of the Committee feel very strongly that United States
policies should be geared to restricting, not expanding, the. world arms
trade. The United States Government is far and away the world's lead-
ing arms merchant. Out of one side of the government's month come
pious calls for action to reduce the world's arms burden. And out of the
other side comes an arms sales pitch to nations around the globe. The
Committee hopes that the provision recommended will be a significant.
step toward ending this hypocritical situation and will help to insure
that we, as a government, practice what we preach.
The Committee notes with interest the following statement by the
Senate Appropirations Committee in its report on the Department of
Defense Approlnria.tion Bill (S. Rept. 93-1104) :
"SALES OF MILITARY EQUIPMENT TO FOREIGN GOVERNMENTS
"This Committee views with concern the dramatic increase in cash
sales of U.S. military equipment to foreign governments. Actual cash
sales of $5.9 billion during fiscal year 1974 far exceeded the original
DOD estimate of $3.9 billion. Cash sales over the past decade have
totaled $19.1 billion-of which $9.5 billion was negotiated during the
past two years.
"The political and economic impact of foreign military sales on the
United States and recipient foreign countries is immeasurable. Of
more direct interest to this Committee, however, is the real and
potential impact that the sale of military equipment has on the
security interests and objectives of this Nation and on defense
expenditures.
"The recent sale of 80 F-14 fighter aircraft to Iran could consider-
ably reduce combat capability of the U.S. Armed Forces. These air-
craft, the most sophisticated fighter aircraft available, will be delivered
to Iran prior to the planned U.S. Navy F-14 force being fully
equipped.
"The Committee is particpularly concerned that long terns security
interests of the United States Wright be jeopardized by large cash
sales of sophisicated weapons systems in areas of potential conflict."
The following table shows the extent to which the government is
directly involved in arms sales to foreign countries :
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63
0 0
Ct) N
00 M
COO
N
CT N
N N,
0
O O
M N
NtD
M V
000
q m
Ott
O n
U) T
tf~C
O ^
N
N CO
~ t 8
M W
n N
O N
q M1
O N
M1~
O ~+
N ~
pip 0
N M1
M N
c{ M
N '+
N ^i
M1`-
O O
M ~t
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O pNppp
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1(i~D
A N
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The Committee recognizes that many sales of military equipment to
foreign governments involve components which are controlled by the
United States government and, without government approval for sale
of the component, the entire end item would not normally be available
through commercial channels. The Committee does not believe that the
fact of government control over components of an item to be sold to a
foreign country should stand in the way of a sale being handled
through commercial channels, as long as there are no objections to the
sale from the standpoint of United States foreign policy or security in-
terests. Similarly, the fact that an item to be sold is produced in a
government owned plant or with government owned equipment leased
to a commercial producer, should not serve as an obstacle to use of
'commercial sales channels as long as the United States is fully reim-
bursed for use of the. government facilities. The Committee assumes
that the government will take whatever action is necessary to protect
its interests. But those interests do not extend to promoting the sale
of arms for competitive purposes.
The Committee's intent is to insure that government officials, when
weighing proposed arms sales to foreign countries, have uppermost in
their thinking the foreign policy interests of the United States and not
that of selling more United States military equipment. If the govern-
ment is a disinterested party in the promotional aspects of arms sales,
officials can then bring a clearer, more reflective foreign policy judg-
ment to bear in deciding whether to grant an export license.
The Committee has not attempted to define "economically developed
country." However, it is the Committee's intent that Israel not be con-
sidered an "economically developed country" for purposes of this
provision.
Paragraphs (3) and (5) Minimum Interest Rates And Maximum
Term for Guarantees.--Paragraph (3) amends section 23 of the
Foreign Military Sales Act to establish a statutory minimum in-
terest rate for credits extended to foreign countries under that Act.
Under existing law, no interest rate is specified although the general
practice has been to charge the same rate as the interest paid on cur-
rent government borrowings. However, concessional interest rates have
been allowed in some cases, primarily to meet foreign competition. This
provision sets the minimum rate at that which the government cur-
rently pays on outstanding marketable obligations of comparable
in atu ity.
Paragraph (5) amends section 24 of the Act to establish a maxi-
mum period of ten years for government guarantees of credit extended
by private sources to foreign countries for financing military sales
under the. Foreihm Military Sales Act. Under existing law the mnaxi-
rnum term for direct government credit is ten years. This provision
will apply that lirnit to the guaranty program.
The minimum interest rate and the maximum guaranty period re-
cluirements could be waived by the President if lie certifies to the Con-
gress that it is in the national interest to allow a concessional interest
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rate or to issue a guaranty for a period longer than ten years. The
Committee expects that this waiver authority will be used very spar-
ingly and only in extraordinary circumstances. Under no circum-
stances is the waiver to be used to allow a concessional interest rate or
a guaranty term longer than ten years for the purpose of meeting for-
eign arms sales competition. Concessional interest rates on credit sales
to current grant aid recipients are authorized elsewhere in this bill
as an element in the three year phaseout of military grant assistance.
Paragraph (4) Federal Fnancing Bank.-This paragraph amends
section 24(a) and Section 24(b) of the Foreign Military Sales Act
(FMSA) by authorizing foreign military sales guaranties to be issued
to the Federal Financing Bank, which was established by the Federal
Financing Bank Act of 1973, Public Law 93-224, approved on Decem-
ber 29, 1973 (87 Stat. 937), and by authorizing the sale to the Bank
of promissory notes issued by borrowers pursuant to direct foreign
military sales credits. The Federal Financing Bank is an instrumen-
tality of the United States Government and, as such, is subject to
the parenthetical clause in subsections (a) and (b), although. section 6
of the Federal Financing Bank Act of 1973 authorizes the Bank to
purchase any obligation sold, or guaranteed by a Federal agency.
Purchases by the Bank under section 6 are required to be upon such
terms and conditions as to yield a return at a rate not less than a rate
equivalent to cost of money to the U.S. Government (or, whenever
the Bank's own obligations outstanding are sufficient, to cost of money
to the Bank), and the Bank is also authorized to charge a normal
commitment fee in connection with such purchase. Any guaranty
transactions with the Bank under the FMSA will be subject to the
same reserve requirements under section 24(c) and controlled by the
same aggregate ceiling under section 31 (b) as guaranty transactions
with private U.S. lenders will continue to be.
Paragraph (6) -Authorization of Appropriations and Ceiling for
Credit Sales.--This paragraph amends section 31 of the Foreign Mili-
tary Sales Act to authorize $455,000,000 for fiscal year 1975 to carry
out the purposes of the FMSA and establishes a ceiling of $872,500,000
for fiscal year 1975 on the aggregate of credits and the principle
amount of loans guaranteed.
The bill earmarks $300,000,000 of the credit sales ceiling for Israel.
$100,000,000 of the credits extended to Israel shall be forgiven. It is
also the Committee's intention that the entire $300,000,000 intended
for Israel should be given first priority in the commitment of appro-
priations made available pursuant to this authorization.
The Qommittee has approved the full. ceiling requested as an ele-
ment in implementing its decision to reduce funds for grant military
assistance and phase out the grant program over a three-year period.
The credit sales program proposed by the Executive Branch is
shown in the following table :
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FOREIGN MILITARY SALES CREDIT PROGRAM
[Value in thousands of dollars]
1973
Fiscal year-
Estimated
1974
Proposed
1975
East Asia and Pacific:
China (Taiwan) -----------------------------------------------
45,200
60,000
80
000
Korea --------------------------------- --------------------
24,200
25
000
,
52.000
Malaysia -----------------------------------------------------
10,000
,
19
000
10
000
Philipp
Thai lapinesnd----------------------------------------------- -------
---------------------------------------------------
-------
,
3,000
15,000
,
5,000
--------------
Regional total ------ -------------------- -------------------
79,400
122,000
147,000
Near East and South Asia:
Greece------------------------------------------------------- 58,000
60,000
71
000
Israel. -------------------------------- _---------------------- 307,500
Jordan---------------------
1982,664,000
,
300,000
-----------
Lebanon
10,000
5,000
30 000
10,000
Turkey ---------
20,000
75,000
90,000
Regional total ----------------- _...... _......... _............
-395,500
1,122664
501,000
Africa: ---
-
Ethiopia ------------------------ ?...........................................
5
000
5
000
co-------------
Morocco
,
,
500
-------------
-------------- ----------------- 9,800
Tunisia -------------------------------------
12,000
2,500
14,000
1
500
Zaire ---------------------------------------------------------- 6,277
3,500
,
3,500
--------
Regional total ---- --------------------------------- ---------- 16,027 23,000
---
24,500
Latin America: i-
- -
Argentina----------------------------------------------------- 11,500 22,500
30
000
Bolivia----------------------------------------------------------------'---- 4,000
,
3
000
Brazil 15,000 51, 000
,
60, 000
Chile - ---------------- 12,400 15,000
20
500
Colombia_ _______________________________________________ 10,000 15,000
,
17,000
Dominican Republic-------------------------------------------------- ------------------
500
Ecuador ------------------------------??-------------------------------------------------
12,500
El Salvador----------------------------------------------------------------- 500
3,500
Guatemala ---------------------------------------------------?-- 2,600 2,000
1,000
Honduras ---------------------------------------- -_------------------------ 500
M
3,500
exico ----------------------------------------------------------------`---- 2,500
5
000
Nicaragua ------------------------------------
Pare
ua
,
3,000
g
y -------------------------------------
500
Peru---------------------------------------------.------------------------- 15,000
20,500
Uruguay----------------------------------------------------------------- 2,000
2
500
Venezuela ---------------------------------------------------7,572 15,000
,
17,000
----------------
Regional total_______________________________________________ 59,072 145,000 200,000
Worldwide total (TOA)-------------------------------
-------- 549,999 1,412,664 872,500
1 Includes both $300,000,000 originally appropriated for FMS credit in fiscal year 1974 and $682,664,000 in credits made
available for Israel by fiscal year 1974 emergency security assistance legislation. $1,500,000,000 in grants was also pro-
vided to Israel under that act in fiscal year 1974.
5'ection 30. Annual Report on Political Prisoners
This section amends section 32 of the Foreign Assistance Act of
1973 to require the President to report to Congress annually on the
implementation of that section which reads as follows:
It is the sense of Congress that the President should deny
any economic or military assistance to the government of any
foreign country which practices the internment or imprison-
ment of that country's citizens for political purposes.
Section 31. Auth,o>-ization for the Gorr, a$ 2l1em.o7~al Institute
This section, sponsored by Senator McGee, alnend.s the statute
authorizing an animal appropriation which is used for maintenance
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and operation of the, Gorgas Memorial Institute of Tropical and Pre-
ventive Medicine in the Republic of Panama. It increases the maximum
annual U.S. contribution from $500,000 to $1,000,000.
Gorgas Memorial Institute has operated since its inception as a
technical institution committed to conduct research in the biomedical
sciences on diseases of the tropics. Its objectives are to help prevent
disability, defect, and death from exotic diseases. The laboratory,
strategically located in Panama where the natural biocommunicatioii
route between North and South America forms, has been likened to a
southern disease early warning system for the United States.
Throughout the years, Congress has reaffirmed its support of the
Gorgas operation by increasing the U.S. contributions and providing
funds for the construction of one of the research facilities now in use.
This has been accomplished through five amendments to the original
act, the most recent in 1965, setting a ceiling of "not to exceed $500,000"
as the permanent annual congressional authorization. The basic U.S.
contribution has thus remained at the same level for the past 8 years.
The Committee believes that an increase to $1,000,000 is justified.
Sect/a> 32. Authorization for Contributions to the International Com-
mission of Control and Supervision in Vietnam
This section authorizes the appropriation of a total of $27,726,000
to help meet the expenses of the International Commission of Control
and Supervision in Vietnam. Of that, $16,526,000 is for contributions
in fiscal. year 1975 and $11,200,000 is to reimburse the Agency for Inter-
national Development for amounts expended by it in fiscal year 1974
to help meet expenses of the ICCS in that year.
The following letter from the Deputy Secretary of State explains
the background and justification for this request.
T it DEPUTY SECRETARY OF STATE,
Washington, August 6,1974.
lion. J. W. FULBRIGIIT,
Chairman, Committee on Foreign Relations,
U.S. Senate.
DEAR MR. CI.IATRbrA1 : The Senate Foreign Relations Committee
received for consideration on June 3 5-35-62, authorizing funds for
U.S. contributions to the International Commission for Control and
Supervision (ICCS) is Viet-Nam.
The ICCS is an essential part of the peace structure set up by the
Paris Agreement of January 27,1973. The Commission has a number of
positive achievements to its credit. The presence of several hundred
foreign personnel in South Viet-Nam, charged with overseeing the
cease-fire, has contributed to lowering the violence over the past
eighteen months. Their continued presence helps deter the renewal of
all-out tivarfare. Despite obvious problems of implementation we con-
tinue to believe that the Paris Agreement, of which the ICCS is an
essential component, can help bring Viet-Nam closer to a lasting
peace.
The Commission now faces a serious financial crisis which throws its
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continued existence into doubt. The reason for the crisis is the refusal
of the North Vietnamese and South Vietnamese Communists to pay
their full shares of the ICCS budget. In view of this, we have con-
cluded that the U.S. must see to it that adequate. support be provided
to the Commission if it is to survive. The Administration is therefore
requesting $27.7 million to support the ICCS in FY 1975. Of this,
$16.5 million would pay essential costs this fiscal year. The remaining
$11.2 million would repay the Agency for International Development
for borrowings for ICCS contributions last fiscal year. The projected
U.S. contribution comprises the greatest share of the ICCS budget.
But compared with the serious consequences of the Commission's col-
lapse-the unraveling of the fragile structure of peace in Viet-Nam-
the price is small. I do not think we can afford to allow this to happen.
I cannot stress enough the importance of this legislation to our inter-
ests in preserving the existing peace-keeping structure and in moving
toward a more stable peace in Viet-Nam. I most strongly urge you to
give it your support.
With best regards,
Sincerely,
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In compliance with paragraph 4 of rule XXIX of the Standing
Rules of the Senate, changes in existing law made by the bill, as
reported, are shown as follows (existing law proposed to be omitted
is enclosed in black brackets, new matter is printed in italic, existing
law in which no change is proposed is shown in roman)
TIIE FOREIGN ASSISTANCE ACT OF 19011, AS AMENDED
PART I
CIIAPTER 1-POLICY; DEVELOPMENT ASSISTANCE AUTHORIZATIONS
Sec. 103. Food and Nutrition.
(a) In order to alleviate starvation, hunger, and malnutrition, and
to provide basic services to poor people, enhancing their capacity for
,self-help, the President is authorized to furnish assistance, on such
terms and conditions as he may determine, for agriculture, rural devel-
opment, and nutrition. There are authorized to.be appropriated to the
President for the purposes of this section, in addition to funds other-
wise available for such purposes, [$291,000,000 for each of the fiscal
years 1974 and 1975] $291,000,000 for the fiscal year 1974, and
$491,000,000 for the, fiscal year 1975, which amounts are authorized to
remain available until expended.
(b) The Congress finds that, due to rising world food, fertilizer and
petroleum costs, human suffering and deprivation are growing in the
poorest and most slowly developing countries. The greatest potential
for significantly expanding world food production at relatively low
cost lies in increasing the productivity of small farmers who constitute
a majority of the nearly one billion people living in these countries.
Inereasing the emphasis on rural development and expanded food
production in the poorest nations of the developing world is a matter
of social justice as well as an important factor in slowing the rate of
inflation in the industrialised countries. In the allocation of funds
under this section, special attention should be given to increasing agri-
cultural production in the countries with per capita incomes under
$300 per year and which are the most severely affected by sharp
increases in worldwide commodity prices.
Sec. 104. Population Planning and Health.
In order to increase the opportunities and motivation ,for family
planning, to reduce the rate of population growth, to prevent and
combat disease, and to help provide health services for the great, ma-
jority, the President is authorized to furnish assistance on such terms
and conditions as he may determine, for population planning' and
(69)
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health. There are authorized to be appropriated to the President for
the purposes of this section, in addition to the funds otherwise avail-
able for such purposes, [$19:5,000,000 for each of the fiscal years 1974
and 1975], $145,000,000 for fiscal year 1974 and $165,000,000 for the
fiscal year 1975, which amounts are authorized to remain available
until expended.
TITLE X-PROGRAMS RELATING TO POPULATION
GROWTH
Sec. 292. Authorization.
Of the funds provided to carry out the provisions of part I of this
Act for the fiscal year 1974, $125,000,000, and for the fiscal year 1975,
[$130,000,000] $150,000,000 shall be available in each such fiscal year
only to carry out the purposes of this title, and, notwithstanding any
other provisions of this Act, funds used for such purposes may be used
on a loan or grant basis.
* * * * * *
Sec. Education and Human Resources Development.
In order to reduce illiteracy, to extend basic education and to
increase manpower training in skills related to development, the Presi-
dent is authorized to furnish assistance on such terms and conditions
as he may determine, for education, public administration, and human
resource development. There are authorized to be appropriated to the
President for the purposes of this section, in addition to funds other-
wise available for such purposes, [$90,000,000 for each of the fiscal
years 1974 and 1975] $90,000,000 for the fiscal year 1974, and $9f,000,-
000 for the fiscal year 1975, which amounts are authorized to remain
available until expended.
* * * * * * *
TITLE III-HOUSING GUARANTIES
See. 221. Worldwide Housing Guaranties.
In order to facilitate and increase the participation of private enter-
prise in furthering the development of the economic resources and
productive capacities of less developed friendly countries and areas,
and promote the development of thrift and credit institutions engaged
in programs of mobilizing local savings for financing the construction
of self-liquidating housing projects and related community facilities,
the President is authorized to issue guaranties, on such terms and
conditions as he shall determine, to eligible investors as defined in
section 238(c), assuring against loss of loan investments for self-
liquidating housing projects. The total face amount of guaranties
issued hereunder, outstanding at any one time, shall not exceed [$305,-
000,000] $405,000,000. Such guaranties shall be issued under the con-
ditions set forth in section 222 (b) and section 223.
(i) The authority of section 221 and section 222 shall continue until
[June 30,1975] June 30, 1976
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Sec. 302. Authorization.
(a) There is authorized to be appropriated to the President for
grants to carry out the purposes of this chapter, in addition to funds
available under any other Act'for such purposes, for the fiscal year
1974, $127,822,000 and [for the fiscal year 1975, $150,000,000] for the
fiscal year 1975, $186,900,000.
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] $550,000,000 for the fiscal year 1975: Provided, That
funds made available for assistance 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 sys-
tems and jet aircraft for military purposes, to any underdeveloped
country, unless the President determines that the furnishing of such
weapons systems is important to the national security of the United
States and reports within thirty days each such determination to the
Congress.
Amounts appropriated under this subsection are authorized to re-
main available until expended. Amounts appropriated under this sub-
section shall be available for cost-sharing expenses of United States
participation in the military headquarters and related agencies pro-
gram.
* * * * * * *
[Sec. '506. Special Authority.
(a) During the fiscal year 1974, the President may, if he deter-
mines it to be in the security interests of the United States, order de-
fense articles from the stocks of the Department of Defense and de-
fense services for the purposes of part II, subject to subsequent
reimbursement therefor from subsequent appropriations available for
military assistance. The value of such orders under this subsection in
the fiscal year 1974 shall not exceed $250,000,000.
(b) The Department.of Defense is authorized to incur, in appli-
cable appropriations, obligations in anticipation of reimbursements
in amounts equivalent to the value of such orders under subsection (a)
of this section. Appropriations to the President of such sums as may
be necessary to reimburse the applicable appropriation, fund, or ac-
count for such orders are hereby authorized.]
Sec. 513. Military Assistance Authorizations for [Thailand and
Laos.] Thailand, Laos, and South Vietnam.
(a) After June 30, 1972, no military assistance shall be furnished
by the United States to Thailand directly or through any other for-
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eigni country unless that assistance is authorized under this Act or'
the Foreign Military Sales Act.
(b) After June 30, 1974, no military assistance shall be furnished
by the United States. to Laos directly or through any other foreign
country unless that assistance is authorized under this Act or the
Foreign Military Sales Act.
(e) After June 30;1975, no military assistance shallbe furnished by
the united States to South Vietnam directly or through any other
f oreuan country unless that assistance is authorized under this Act or
.the Foreign Illili-tary Sales Act.
,Sec. 511. Limitation on the Grant of Excess Defense Articles.
(a) The value of any excess defense article furnished to a foreign
country or inter rational organization by any agency of the United
States Government shall be considered to be an expenditure made from
funds appropriated under section 501. of this Act. Unless such agency
certifies to the Comptroller General of the United States that the
-excess defense article it is ordering is not to be transferred by any
J?wans to a foreign country or international organization, when an
order is placed for a defense article whose stock status is excess at the
time ordered, a sum equal to the value thereof (less amounts to be
transferred under section ?32(d) of this Act) shall (1) be reserved
and transferred to a suspense account, (2) remain in. the suspense
account until the excess defense article is either delivered to a foreign
country or international organization or the order therefor is canceled,
and (3) be transferred from the suspense account to (A) the general
fund of the Treasury upon delivery of such article, or (fl) to the
appropriation nzade under section 504 of this Act for the current fiscal
year upon cancellation of the order. Such sum shall be transferred to
the appropriation made under section 504 of this Act for the current
fiscal year, upon delivery of such article, if at the time of delivery
the stock status of the article is determined in accordance with section
(14.?(g) or (m) of this Act to be nonexcess. -
(b) The President shall promptly and fully inform the Speaker
of the House of 1,,'epresentat/ves and the Coinmzittee on Foreign Bela-
tions and the Committee on Appropriations o f the Senate of each de-
cision to furnish on a grant basis to any country excess defense articles
which are major ;weapons systems to the extent such major weapons
system was not included in the presentation material previously sub-
m- teed to the Congress. Additionally, the President shall also submit
a quarterly report to the Congress listing by country the total value of
all deliveries of excess de f ense articles, disclosing both, the aggregate
original acquisition cost and the aggregate value at the time of
delivery..
(m) "Value" moans-
[(1) with respect to an excess defense article, the actual value
of the article plus the gross cost incurred by the United States
diovernment in repairing, rehabilitating, or modifying the article,
except that for purposes of section 632 (d) such actual value shall
not be taken into account;]
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73
(7) 'with respect. to an excess defense article, the actual value of
the article but not less than 33'/3 per centum of the amount tlae
rhaited States paid at the time the defense article was acquired.
by the United States
[SEC. 8. (a) Subject to the provisions, of subsection (b), the value of
any excess defense article granted to a foreign country or international
organization by any department, agency, or independent establish-
ment of the United States Government (other than the. Agency for In-
ternational Development) shall be considered to be an expenditure
made from funds appropriated under the Foreign Assistance Act of
1961 for military assistance. Unless such department, agency, or estab-
lishment certifies to the Comptroller General of the United States that
the excess defense article it is ordering is not to be transferred by any
means to a foreign country or international organization, when an
order is placed for a defense article whose stock status is excess at the
time ordered, a sum equal to the value thereof shall (less amounts to
be transferred under section 632(d) of the Foreign Assistance Act of
1961) (1) be reserved and transferred to a suspense account, (2)
remain in the suspense account until the excess defense article is either
delivered to a foreign country or international organization or the
order therefor is cancelled, and (3) be transferred from the suspense
account to (A) the general fund of the Treasury upon delivery of such
article, or (B) to the military assistance appropriation for the current
fiscal year upon cancellation of the order. Such sum shall be trans-
ferred to the military assistance appropriation for the current fiscal
year upon delivery of such article if at the time of delivery the stock
status of the article is determined, in accordance with section 644 (g)
and (m) of the Foreign Assistance Act of 1961, to be nonexcess.
(b) In the case of excess defense articles which are generated abroad,
the provisions of subsection (a) shall apply during any fiscal year
only to the extent that the aggregate value of excess defense articles
ordered during that year exceeds $150,000,000.
(c) For purposes of this section, the term "value" has the same
meaning as given it in section 644 (m) of the Foreign Assistance Act
of 1961.
(d) The President shall promptly and fully inform the Speaker of
the House of Representatives and the Committee on Foreign Relations
and the Committee on Appropriations of the Senate of each decision to
furnish on a grant basis to any country excess defense articles which
are major weapons systems to the extent such major weapons system
was not included in the presentation material previously submitted to
the Congress. Additionally, the President shall also submit a quarterly
report to the Congress listing by country the total value of all deliv-
eries of excess defense articles, disclosing both the aggregate original
acquisition cost and the aggregate value at'the time of delivery.
(e) Except for excess defense articles granted under part II of the
Foreign Assistance Act of 1961, the provisions of this section shall not
apply to any excess defense article granted to South Vietnam prior to
July 1, 1972.]
FORDI(N.ASSISTANCE ACT OF 1961
[SEC. 11. For purposes of sections 8 and 9-
(1) "defense article and "excess defense articles" have the
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same meanings as given. them in section 644 (d) and (g), respec-
tively, of the I+'oreign Assistance Act of 1961; .and
(2) "foreign country" includes any department, agency, or in-
dependent establishment of the foreign country]
Sec. 515. Stockpiling of Defense Articles for Foreign Countries.
(a) Notwithstanding any other provision of law, no funds, other
than funds made available under this Act or section 401 (a) (1) of
Public, Law 89-367 (80 Slat. 37), or any subsequent corresponding
legislation, may be obligated or expended for the purpose of stock-
piling any defense article or tvar reserve material, including the ac-
quisition, storage, or maintenance of any war reserve equipment,
secondary items, or munitions, if such article or material is set aside,
reserved, or in any way earmarked or intended for future use by any
foreign country.
(b) The cost of any such article or material set aside, reserved, or
in any way earmarked or intended by the Department 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 Slat. 37), or any subsequent corresponding legislation, for
the fiscal year in which such 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 or intended for future
use by, for, or on behalf of a-ny 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 such article or material may be made avail-
able to or for use by South Vietnam or any other foreign country
unless such article or material has been charged against the limita-
tion specified in section 601 (a) (1) of Public Law 89-367 (80 Slat.
37), or any subsequent corresponding legislation, or against funds
authorized under such chapter 2, as appropriate.
(c) This section shall not be construed as conferring any authority
to stockpile defense articles or war materials under this Act or such
section 401(a), or subsequent corresponding legislation.
Sec. 516. Military Assistance Advisory Groups and Missions.
(a) An amount equal to each sum expended under any provision
of law, other 'than section 504 of this Act, with respect to any mili-
tary assistance advisory group, military mission, or other organiza-
tion of the United States performing activities similar to such group
or mission, shall be deducted from, the funds made available under
such section 504, and (1) if reimbursement of such amount is re-
quested by the agency of the United States Government making the
expenditure, reimbursed to that agency, or (2) if no such reimburse-
ment is requested, deposited in the Treasury as miscellaneous
receipts.
Sec. 517. Termination of Authority.
(a) (1) The President shall gradually reduce assistance (other than
military training) provided under this chapter so that, not later than
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September 30, 1977, no assistance (other than military training) shall
be provided under this chapter.
2) Paragraph (1) o f this suibsection shall not apply to funds obli-
gated prior to October 1,1977.
(b) For each of the fiscal years 1975, 1976, and 1977, the President
is authorized to finance procurements of defense articles and defense
services (other than military training) by any foreign country receiv-
ing defense articles or defense services during fiscal year 1974 under
this chapter on terms providing for payment in United States dol-
lars (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 military training) furnished that country in fiscal
year 1974 under this chapter, (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.
(c) (1) By not later than September 30,1977, all the functions of a
military assistance advisory group, a military mission, or other oani-
-
zation of the United States Government in a foreign country perform
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 at-
taches 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 30,1974.
(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 :
[CHAPTER 1-roLier] Chapter I -Providing Military Training
Sec. 502. [Utilization of Defense Articles and Services] Providing
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
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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----[M].LITAfY 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 Un ted 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 he'
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
(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.
(e) (1) In the case of any loan of a defense article or defense service,
made under this section, there shall be a charge to the appropriation
for military assistance for any fiscal year while the article or service is~
on loan in an amount based on-
(A) the out-of-pocket expenses authorized to be incurred in
connection with such loan during such fiscal year, and
(B) the depreciation which occurs during such year while such
article is on loan.
(2) The provisions of this subsection shall not apply-
(A) to any particular defense article or defense service which
the United States Government agreed, prior to the date of enact-
ment of this subsection, to lend ; and
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(B) 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 assistance
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-
mines that the furnishing of such weapons systems is important to
the national security of the United States and reports within thirty
days each such determination to the Congress. Amounts appropriated
under this subsection are authorized to remain available until ex-
pended. Amounts appropriated under this subsection shall be avail-
able for cost-sharing expenses of United States participation in the
military headquarters and related 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 programing and budgeting so that programs of military assistance
come into direct competition for financial support with other activi-
ties and programs of the Department of Defense.]
Sec. 505. Conditions of Eligibility.
(a) In addition to such other provisions as the President may re-
quire, no defense articles shall be furnished to any country on agrant
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,
(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
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country at a cost in excess of $3,000,000 in any fiscal year unless the
President deterrnines-
(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
(4) that the increased ability of such country to defend itself is
important to the security of the United States.
(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 defense
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
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 interna-
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tional educational and cultural exchange activities in which that coun-
try participates under the programs authorized by the Mutual Educa-
tional and Cultural Exchange Act of 1961.]
Sec. 503. General Authority.-The President is authorized to fur-
nish, 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 ap-,
propriated for each fiscal year pursuant to authorization for that,
fiscal year. A f ter September 30, 1977, no such training shall be con-
ducted 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;
* * * * *
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
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(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 1975;
(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 principall 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 1975;
(2) $28,000,000 during the fiscal year 1976; and
(3) $14,150,000 during the fiscal year 1977.
(e) 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.
CHAP'IE R 4-SECURITY SUPPORTING ASSISTANCE
* * *
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 the fiscal year 1975 not to exceed $585,000,000: Pro-
ided, That where commodities are furnished on a grant basis under
this chapter under arrangements which will result in the accrual of
proceeds 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. ,,mounts 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 Unit(-.d 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 centmn of the funds made
available for any provision of this Act (except funds made available
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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 be used for any of the purposes for which such
funds may be used, except that the total in the provision for the benefit
of which the transfer is made shall not be increased by more than 20
per. centuin 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 Bands which the Pr?esic/ent has notified Congress pursuant
to section 653 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.
See. 614. Special Authorities.
(a) The President may authorize in each fiscal year the use of fund
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. r,egiurenlents of this
Act, any law relating to receipts and credits accruing to the United
States, any Act appropriating funds for use under this Net, or the
Mutual Defense Assistance Control Act of .1951 (22 U.S.C. 1(i11 et
secl.), in furtherance of a,11.)T of the purposes of such Acts, when the
President determines that such authorization is important to the
security of the United States. Not more than $50,000,000 of the funds
availabhe 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.
(b) Whenever the President. determines it to be important to the
national interest, he may use funds available for the purposes of
chapter 4 of part I in order to meet the responsibilities or objectives
of the United States in Germany, including West Berlin, and without
regard to such provisions of law as he determines should be disre-
garded 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 certification shall be deemed to be a sufficient
voucher for such amounts. The President shall promptly and fully
inform the Speaker of the House of Representatives and the chairniam
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and ranking minority member of the Committee on Foreign Relations
of the Senate of each use of funds under this subsection.]
Sec. 109. Transfer of Funds.
Notwithstanding section 108 of this Act, whenever the President
determines it to be necessary for the purposes of this chapter, not to
exceed 15 per centum of the funds made available for any provision of
this chapter may be transferred to, and consolidated with, the funds
made available for any other provision of this chapter, and may be
used for any of the purposes for which such funds may be used, except
that the total in the provision for the benefit of which the transfer is
made shall not be increased by more than 25 per centum of the amount
of funds made available for such provision. The authority of [sections
610(a) and 614(a)] section 610(a) of this Act may not be used to
transfer funds made available under this chapter for use for purposes
of any other provision of this Act.
* * * * * * *
(c) The authority of section 610 may not be used to decrease the
funds available under this title[, nor may the authority of section 614
(a) be used to waive the requirements of this title].
* * * * * * *
Sec. 251. General Authority.
* * * * * *
(c) [The authority of section 614(a) may not be used to waive the
requirements of this title with respect to funds made available for this
title which are required to be used for loans payable as to principal
and interest in United States dollars, and the authority of section 610
may be used to transfer such funds only to funds made available for
title I of chapter:,' of part I.]
The authority of section 610 may be used to transfer funds made
available for this title only to funds made available for title I of
this chapter.
* * * * * * *
Sec. 302. Authorization.
(2) There is authorized to be appropriated to the President for
grants for Indus Basin Development in addition to any other funds
available for such purposes, for use in the fiscal year 1974, $14,500,000,
and for use in the fiscal year 1975, $14,500,000, which amounts shall
remain available until expended. The President shall not exercise
any special authority granted to him under section 610 (a) [or 614 (a) ]
of this Act to transfer any amount appropriated under this paragraph
to, and to consolidate such amount with, any funds made available
under any other provision of this Act.
(b) The authority contained in this section and in [sections 451,
506. and 614] section 451 shall not be used the aurgment appropriations
made available pursuant to sections 636(g) (1) and 637 or used other-
wise to finance witivit.ies which normally would be financed from
appropriations for administrative expenses. Not to exceed $9,000,000
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of the funds appropriated under section 402 of this Act for any fiscal
year may be transferred to and consolidated with appropriations
made under section 637 (a) of this Act for the same fiscal year, sub-
ect to the further limitation that funds so transferred shall be avail-
able solely for additional administrative expenses incurred in connec-
tion with programs in Vietnam.
SEc. 634. (d) When requests are presented to the Congress for ap-
propriations for fiscal year 1969 to carry out programs under this Act,
the programs to be carried out with the funds appropriated for that
fiscal year shall also be presented to the Committee on Foreign Rela-
tions of the Senate, if requested by the chairman of that committee,
and to the Committee on Foreign Affairs of the House of Representa-
tives, if requested by the chairman of that committee. At the end of
each .fiscal year, the President shall notify the Committee on Foreign
Relations and the Committee on Appropriations of the Senate and
the Speaker of the House of Representatives of all actions taken dur-
ing the fiscal year under this Act which resulted in furnishing assist-
ance of a kind, for a purpose, or to an area, substantially different from
that included in the presentation to the Congress during its considera-
tion of this Act or any Act appropriating funds pursuant to authoriza-
tions contained in this Act, or which resulted in obligations or reserva-
tions greater by 50 per centum or more than the proposed obligations
or reservations included in such presentation for the program con-
cerned, and in his notification the President shall state the justifica-
tion for such changes. There shall also be included in the presentation
material submitted to the Congress during its consideration of amend-
ments to this Act, or of any Act appropriating funds pursuant to
authorizations contained in this Act, a comparison of the current
fiscal year programs and activities tivith those presented to the Con-
gress in. the previous year and an explanation of any substantial
changes. Any such presentation material shall also include (1) a chart
showing on a country-by-country basis the full extent of all. TTnited
States assistance planned or expected for each such country for the
net fiscal year, including economic assistance and military grants and
sales under this or any other Act and sales under the Agricultural
Trade Development and Assistance Act of 1954, as amended, (2) de-
tails of proposed contributions by the United States to multilateral
financial agencies for the next fiscal year, and (3) a statement of proj-
ects, on a country-by-country basis for which financing was supplied
during the last fiscal year through the Export-Import Bank. In addi-
tion, the President shall promptly notify the. Committee on Foreign
Relations and the Committee on Appropriations of the Senate and the
Speaker of the House of Representatives of any determination under
section 303, 610(b), [or 614 (b) and of any findings, including his
reasons therefor, under section 503 or 521(c).
See. 652. Limitation Upon Exercise of Special Authorities,
The President shall not exercise any special authority granted to him
under (section 506(a), 610(a), or 614(a)] section 610(a) of this Act
unless the President, prior to the date intends to exercise any such
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84
authority, notifies the Speaker of the House of Representatives and
the Committee on Foreign Relations of the Senate in writing of each
such intended exercise, the section of this Act under which such
authority is to be exercised, and the justification for, and the extent of,
the exercise of such authority.
SEC. 653 (h) The provisions of this section shall not apply in the case
of any law making continuing appropriations [and may not be waived
under the provisions of section 614 (a) of this Act].
Sec. 659. Access to Certain Military Bases Abroad.
None 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-
eratedwith, funds furnished by the United States;
(2) personnel of the United States carry out military opera-
tions from sueh base,
unless and until the President has determined that the government of
such couutry 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 CEI.TAIN MILITARY BASES ABROAD
[SEC. 29. None of the funds authorized to be appropriated by this
Act may be used to provide, any kind of assistance to any foreign
country in which a military base is located if-
(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. (a) Prohibiting Police Training.
Novae of the fnmv/ made available to carry out this Act, and none
of the local currencies generated under this Actt.' hall be used to pro-
vide training or ao i ice, or p?or ide any financial support, for police,
prisons, or other in ernal secur?ity forces for any foreign governs entt
or any program, of i.nt,.r u7 h`,telligenee of surveillance on behalf of
any foreign govermmimnt within the Tinited States or abroad.
(b) Subsection (a) of this section shall not apply-
(1) with, re pest to assistance rendered under section 515(c)'
of time Omn bus Crime Control and Safe Streets Act o f 1968, or
with respect to any authority of the Di=ug Enforcement A dmin-
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istration or the Federal Bureau of Investigation which relates
to crimes of the nature which are unlawful under the laws of
the United States.
(10) to any contract entered into prior to the date of enact-v
meat 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 of ter such date of enactment.
FOREIGN ASSISTANCE ACT or 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 pro ;ram i.n 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 1008, 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
United 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
entered into on or after such date of enactment.]
Sec. 801. General Authority.
The President is authorized to furnish, on such terms and conditions,
as lie 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
tinder 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 con-
struction 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
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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 $550,000,000. Of the
amount appropriated, for fiscal year 1975-
(1) $1;,20,000,000 shall be available only for the relief and re-
construction of South Vietnam in accordance with. section 806 of
the s Act;
(2) $70,000,000 shall be available only for the relief and recon-
struction of Oambodia in accordance with section 807 of this Act;
(3) $45,000,000 shall be available only for the relief and recon-
struction of Laos in accordance with section 808 of this Act
(4) $3,750,000 shall be available only for the regional develop-
ment program,; and
(5) $11,250,000 shall be available only for support costs for the
agency primarily responsible for carrying out this part.
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' onditioRs 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 (1) and (2) of subsection (a) of this section. Of the
funds appropriated pursuant to section 802 for fiscal year 1974,
$5,000,000, or its equivalent in local currency, shall be available until
expended solely to carry out this section. Of the sums made available
for South iVetnam under section 802(1) 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
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any amount in excess of $1,280,000,000 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 yeas--
(1) $700,000,000 for military assistance;
(2) $160;000,000 only to carry out the Agricultural Trade De-
velopment and Assistance Act of 1954; and
(3) $420,000,000 only for economic assistance, of which there
shall be available-
(A) $95,000,000 for humanitarian assistance, of which
there shall be available-
i) $66,500,000 for refugee relief;
(ii) $8,200,000 for child care;
(iii) $10,300,000 for health care; and
(iv) $10,000,000 for the City-to-Farm program;
(B) $188,000,000 for agricultural assistance, of which
there shall be available-
(i) $150,000,000 for fertilizer, POL, and pesticides;
(ii) $20,000,000 for rural credit;
(iii) $10,000,000 for canal dredging;
(iv) $4,000,000 for low-lift pumps; and
(v) $4,000,000 for fish farm development;
(C) $95,600,000 for industrial development assistance, of
which there shall be available-
(i) $85,000,000.for commaodities;
ii) $10,000,000 for industrial credit; and
iii) $600,000 for development planning; and
(D) $41,.1100,000 for miscellaneous assistance, of which
there shall be available-
(i) $30,000,000 for transportation; and
(ii) $11,400,000 for, technical support.
(b) (1) No funds made available under paragraph (2) or (3) of
subsection (a) may be transferred to, or consolidated with, the funds
made available under any other paragraph of such subsection, nor
may any funds made available under subparagraph (A.), (B), (C),
or (D) of paragraph (3) of subsection (a) of this section be trans-
ferred to, or consolidated wvith, the funds made available under any
other such subparagraph.
(2) Whenever the President determines.it to be necessary in carry-
irn.g 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 Convrnittee on Foreign Relations of the Senate
of each transfer he intends to make under paragraph (2) of this sub-
section prior to making such transfer.
(c) In computing the $1,280,000,000 limitation on obligational
authority under subsection (a) of this section with respect to such
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fiscal year, there shall be included in the computation the value o,
any goods, supplies, materials, equipment, services, personnel, or ad-
visers provided to, for, or on behalf of South Vietnam in such Peal'
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
South Vietnam 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 o f South
Vietnam 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
c r?cess 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 or
-..se in, for, or on. behalf of South Vietnam or any fiscal year, the
President shall furnish, a written report to the Congress explaining
the purpose for which such. funds are to he 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 fi's-
cal year which begins July.], 197/, a written report showing the total
am-cunt of funds obligated in, for, or on behalf of South Vietnam dur-
ing the preceding quarterI 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.
(g) (1) Effectiec six months after the date of enactment of this
seet:nrr the total number of civilian officers and employees, including
contract employees, of excc,'ative agencies of the United States
Gov- who are citizens of the United States and members of the
Armed Forces of the United States present in South Vietnam. shall
not at any one time exceed four thousand, nor more than two thousand
fee hundred of whom shall be members of such armed forces and
direct hire and contract employees of the Department of Defense.
Effective one yea,, after the (late 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-
went of Defense.
('?) Effective sir months after the date of enactment of this sect'mn,
the United States,=h-all not, at any time, pay in whole or in part, direct-
ly or indirectly, the compensation. or allowances of more than eight
hundred ir~di=n clrt.;rls 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 oil allowance is so paid shall not exceed five
hundred.
(3) For purpose.s~ of this subsection, `executive agency of the United
States Government means any agency, department, board, wholly or-
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.partly owned corporation, instntmen.tality, commission, or establish-
ment within the executive branch of the United, States Government.
(h) This section shall not be construed as a commitment by the
United States to South Vietnam for its defense.
Sec. 807. Limitations With Respect to 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 $347,000,000 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
=Cambodia. Of that suin, there shall be available-
(1) .$200,000,000 for military assistance;
(2)$77;000,000 only to carry out the Agricultural Trade Devel-
opment and Assistance Act of 19511,; and
(3)6"1'0,000,000 only for economic assistance, of which there shall
be available-
(A) $20,000,000 for hum anitar an assistance;
(13)$31,000,000 for commodity import assistance;
(C) $17,500,000 for multilateral stabilization assistance;
and
"(D) $1,500,000 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 any funds made available under any subparagraph of
paragraph (3) of subsection (a) of this section be transferred to, or
consolidated with, the funds made available under any other such
subparagraph.
(c) In computing the $347,000,000 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,
supplies, materials, equipment, services, personnel, or advisers pro-
vided to, for, 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 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 ac-
quired. 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 of ter June 30,1975, unless sucli funds have
been specifically authorized by law enacted of ter 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.
(e) After the date of enactment of this section, whenever any re-
guest 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
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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, 19741, a written report showing the total
amount of funds obligated in, for, or on behalf of Cambodia during the
preceding quarter by the United States Government, and shall include
in such report a general breakdown of the total amount obligated, de-
scribing the different purposes for which such funds were obligated
and the total amount obligated for such purpose.
(g) (1) The total number of civilian officers and employees, includ-
ing contract 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 operations in or over Cambodia which
originate outside Cambodia) present in Cambodia at any one time
shall not exceed two hundred. Effective six months after the date of
enactment of this subsection, such total number shall not exceed at
any one time one hundred and seventy-five.
(2) The United States shall not, at any time, pay in whole or in
part, 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. Effective six months after
the date of enactment of this section, the total number of individuals
whose compensation or allowance is so paid shall not exceed
seventy-five.
(3) For purposes of this section, "executive agency of the United
States Government" means any agency, department, toard, 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 Cambodia who (A) is an employee or volunteer
worker of a voluntary private, nonprofit relief organization or is an
employee or volunteer worker of the International Committee of the
Red 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 b 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,
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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.
(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 one 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,
1971, 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 part, directly
or indirectly, the compensation or allowances of more than eighty-
five individuals in Cambodia who are citizens of countries other than
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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-
ized to be appropriated by this or any other law may be obligated in
any amount in excess of $100,000,000 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
Laos. Of that suer, there shall be available-
(1) $55,000,000 for military assistance; and
(2) $45,000,000 only for economic assistance, of which. there
shall be available-
(A) $13,000,000 fov humanitarian assistance,
(B) $9,900,000 for reconstruction and development assist-
ance;
(C) $17,500,000 for stabilization assistance; and
(D) $!,600,000 for technical support.
(b) No funds made available under paragraph (2) of subsection
(a) of this section may he transferred to, or consolidated with, the
funds made available under paragraph (1), nor may any 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 on obligation authority under
subsection (a) of this section with, respect to such fiscal year, there
shall, he included in the computation the value of any goods, supplies,
materials, equipment, 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 o f any goods. supplies, materials, or equipment pro-
vided to, for, or on behalf of Laos, but in no case less than 331/,3 per
eentum, o f the amount the United States paid at the time such goods,
supplies, materials. or eg2ci:pment, were acquired by the United States.
psea.l dear by gift donation, loan, cease or otherwise. For the purpose
o f this subsection. "value" rr,eans 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 cC1/3 per eentum o f thea,mount the
United States paid at the time such goods, supplies, materials, or
equipment were acquired by the United States.
(d) No funds 7aay 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 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 lain for any fiscal year be
obligated for any such purpose during such fiscal year.
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(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 Laos, or 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
a f ter 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 obli-
gated, describing the different purposes for which such funds were
obligated and the total amount obligated for such purpose.
(g) This section shall not be construed as a commitment by the
United States to Laos for its defense.
Sec. 809. Transfer of Funds.
(a) The authority of section 610 of this Act shall not apply avith
respect to any funds made available to South Vietnam, Cambodia, or
Laos.
(b) Any funds made available under any provison' 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 under section 902 of this Act to furnish
by loan or grant, 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 purposes and limitations applicable to that
type of assistance under this Act and applicable to credits and guar-
anties 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 19'76, 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 19'75, not to exceed $57'7,500,000 ma?, be
made available for security supporting assistance in the Middle East.
(c) O f 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 for the purpose of providing any type. of
assistance authorized by part I of this Act, in addition to funds other-
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wise available for such purpose. The funds authorized to be appropri-
ated 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 are author-
ized to remain available until expended.
(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 in excess of $1,000,000 from
funds made available under this section, the President shall transmit a
written report to the Speaker of the House 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 include an explanation relating to only one proposed ob-
ligation.
(2) (A) 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 of continuous session of Congress after
the date on which the report is transmitted, either House adopts a reso-
lution disapproving the proposed obligation with respect to which the
report is made.
(B) For purposes of subparagraph (A) of this paragraph-
(i) the continuity of a session is broken only by an adjournment
of the Congress sine die; and
(ii) the days on which either House is not in session because of
an adjournment of more than three days to a day certain are ex-
cluded in the computation of the thirty-day period.
(3) Paragraphs (4) through (11) of this subsection are enacted by
Congress-
(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 applic-
able only with respect to the procedure to be followed in the House
in the case of resolutions described by this subsection; and they
supersede other rules only to the extent that they are inconsistent
therewith; 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 same manner, and to the same ex-
tent as in the case of any other rule of that House.
(4) For purposes of paragraphs (2) through (11) of this subsection,
"resolution" means only a resolution of either House of Congress, the
matter of ter the resolving clause of which is as follows : "That the
does not approve the obligation for and explained in the re-
port transmitted to Congress by the President on , 19
the first blank space therein being filled with the name of the resolving
House, the second blank space therein being filled with the name of the
foreign country or organization on whose behalf the obligation is to
be incurred, and the other blank spaces therein being appropriately
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95
filled with the date of the transmittal of the report; but does not in-
clude a resolution specifying more than one proposed obligation.
(5) If the committee, to which has been referred a resolution dis-
approving a proposed obligation, has not reported the resolution at
the end of ten calendar days after its introduction, it is in order to
move either to discharge the committee from further consideration of
the resolution or to discharge the committee from further considera-
tion o f any other resolution with respect to the same obligation which
has been referred to the committee.
(6) A motion to discharge may be made only by an individual
favoring the resolution, is highly privileged (except that it may not
be made of ter the committee has reported a resolution with respect to
the same proposed obligation), and debate thereon is limited to not
more than one hour, to be divided equally between those favoring and
those opposing the resolution. 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.
(7) If the motion to discharge is agreed to, or disagreed to, the
motion may not be renewed, nor may another motion 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
consideration of the resolution. The motion is highly privileged and
is not debatable. An amendment to the motion is not in order, and 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
amendment 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
obligation, and motions to proceed to the consideration of other busi-
ness, 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.
Sec. 620. Prohibitions Against Furnishing Assistance.
[(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
Sensate and the Speaker of the House of Representatives that such
assistance is essential to the national interest of the United States,
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and further that. such assistance will neither directly nor indirectly
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 o1' 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)
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 the 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 withozut 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 contrast an-
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 suclit
country or interntional organization provides the United States Gov-
ernment with a dependable undertaking (1) to pay the full. amount
of such contract which will assure the United States Government
against any loss en the contract, and (2) to make funds available in
such amounts and at such times as may be required to meet the pay-.
inents required b., the contract and any damacres and costs that may
.accrue from the cancellation of such contract, in advance of the time
such pavrrients. & manes, or costs are due.,
(b) The President may, when he determines it to be in the na-
tional interest, accept It dependable undertaking of a foreign coun-
try or international organization with, respect to any such sale., to
make full payment within 120 clays after delivery of the defense
THE FOREIGN MILITARY SALES ACT, AS AMENDED
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articles or the rendering of the defense services. Appropriations
available to the Department of Defense may be used to meet the pay-
ments required by the contracts for the procurement of defense arti-
cles 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.
(c) No sales of defense articles shall be made to the government of
,any economically developed country under the provisions of this sec-
tion if such articles are generally available for purchase by such
country 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-
,ernrnent of not less than the value thereof in United States dollars
within a period not to exceed ten years after the delivery of the de-
fense articles or the rendering of the defense services.]
.Sec. 23. Credit Sales.
The President is authorized to finance procurements of defense or-
ticles and defense services by friendly foreign countries and interna-
tional organisations 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 justi fi-
cation therefor.
:Sec. 24. Guaranties.
(a) The President may guarantee any individual., corporation, part-
(ership, oi- other juridical entity doing business in the [Tnited States
(excluding United States Goverment agencies other than the Federal
Financing Bank) against political and credit risks of nonpayment
arising out of their financing of credit sales of defense articles and
defense services to friendly countries and international organizations.
Fees shall be charged for such guaranties.
(b) The President may sell to any individual, corporation, partner-
ship, or other juridical entity (excluding United States Government
agencies other than the Federal Financing Bank) promissory notes
issued by' friendly countries and international organizations as evi-
denee of their obligations to make repayments to the United States
on account of credit sales financed under section 23, and may guaran-
tee payment thereof.
(c) Funds made available to carry out this Act shall be obligated
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in an amount equal to 25 per centum of the principal amount of
contractual liability related to any guaranty issued under this section,
and all the funds so obligated shall constitute a single reserve for the
payment of claims under such guaranties. Any funds so obligated
which are deobligated from time to time during any current fiscal
year as being in excess of the. amount necessary to maintain a frac-
tional reserve of 25 per centum of the principal amount of contrac-
tual liability under outstanding guaranties shall be transferred to the
general fund of the Treasury. Any guaranties issued hereunder shall
be backed by the full faith and credit of the United States.
(d) The President may guarantee under this section only those pay-
ments for any defense article or defense service which are due within
ten years after that defense article is delivered or that defense service
is rendered, except that such guaranty may be made for not more than
twenty years if the President certifies to Congress that the national in-
terest requires that the period of guaranty be longer than ten years,
and states in the certification the country or international organization
on whose behalf the guaranty is to be made, the period of the guaranty,
and the justification for the longer period.
Sec. 31. Authorization and Aggregate Ceiling on Foreign Military
Sales Credits.
(a) There is hereby authorized to be appropriated to the President
to carry out this Act not to exceed [$325,000,000 for the fiscal year
1974] $455,000,000 for the fiscal year 1975. Unobligated balances of
funds made available pursuant to this section are hereby authorized to
be continued available by appropriations legislation to carry out this
Act.
(b) The aggregate total of credits, or participations in credits, ex-
tended pursuant to this Act and of the principal amount of loans
guaranteed pursuant to section 24 (a) shall not exceed [$730,000,000 for
the fiscal year 1974] $879,500,000 for the fiscal year 1975, of which
amount not less than $300,000,000 shall be available to Israel on] . Of
the funds made available under subsection (a) of this section, 100,-
000,000 shall first be obligated with respect to financing the procure-
ment of defense articles and defense services by Israel under section.
23 of this Act, except that Israel shall be released from contractual
liability to repay the United States Government for the defense articles
and defense services so financed.
FOREIGN ASSISTANCE ACT OF 1973
* * * * * * *
SEC. 32. It is the sense of Congress that the President should deny
any economic or military assistance to the government of any foreign
country which practices the internment or imprisonment of that coun-
try's citizens for political purposes. Commencing with respect to 1974,
the President shall submit annually to the Speaker of the House of
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Representatives and the Committee on Foreign Relations of the Senate
a written report setting forth fully the steps he has taken to carry out
this section.
TITLE 22.-FOREIGN RELATIONS AND INTERCOURSE
GORGAS MEMORIAL LABORATORY
Sec. 278. Gorgas Memorial Laboratory; location, acceptance of
funds from Latin American countries or other sources
There is hereby authorized to be permanently appropriated for each
year, out of any money in the Treasury not otherwise appropriated,
the sum of not to exceed [$500,000] $1,000,000 to be paid to the Gorgas
Memorial Institute of Tropical and Preventive Medicine, Incorpo-
rated (hereinafter referred to as the Gorgas Memorial Institute), for
the maintenance and operation by it, of a laboratory to be known as
the Gorgas Memorial Laboratory, upon condition (1) that the neces-
sary building or quarters for said laboratory shall be constructed
within the five years next ensuing after sections 278 to 278b of this
title shall become a law, either upon the site offered by the Republic
of Panama therefor, at, or adjacent to, the city of Panama, or upon
a site in the Canal Zone to be provided by the United States; and
(2) that the said Gorgas Memorial Institute be, and it is, authorized
within its discretion, henceforth to accept from any of the Latin
American Governments, or from any other sources, any funds which
may be offered or given for the use of the Gorgas Memorial institute
for the maintenance and operation of the Gorgas Memorial Labo-
ratory, and for carrying on the work of said Laboratory wherever
deemed by the said Institute to be necessary or desirable.
.Q
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BEST COPY
Available
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 93D CONGRESS
. 2D SESSION
Calendar No. 1083
S. 3394
[Report No. 93-1134]
IN THE SENATE, OF THE UNITED STATES
APRIL 29,1974
Mr. SPARKMAN (by request) introduced the following bill; which was read twice
and referred to the Committee on Foreign Relations
SEPTEMBER 3, 1974
Reported, under authority of the order of the Senate of August 22, 1974, by
Mr. SPARKMAN,. with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
A BILL
To amend the Foreign Assistance Act of 1961, and for other
purposes.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of. America in Congress assembled,
3 That this A4 fla&y he cited as the "Feign Assistanee Aet
4 41971
".
5 TITLE 1;
6 TRTTTTTTDEE E*SZ PRAGE
7 SEC.. 2-. The Foreign Assistance Aet of - is amen4e
8 by adding at the en4 thereof the following new pmi :
9 ` 12 A P. T V4
10 "SEC. EW:: Z' QF POIJeY. I,-- Congress
11 ~. es that a peaceful and lastiftg ,. iei. of the di-
I7
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1 *isive issw s that have eo i1 rated to Lesion eonfit
2 between nations in the Middle East is essential to the se-
ettrit-y of the 4 nited , tatt-s a A the em+,,,e of world peace-
4 The Co-ess deem fi+4s tIwA the TTnited States e
5 and shotrltl play a eo eti e role in seems a jest
6 durable {settee in the Aid le East by facilitating ifte
7 between the rah nations and isaael, and by
8 ? ssisting th nti,44 ns in the area in their emits to aehiewe
9 pt o ess and pei-itieai stability ieh ale t1}e
1.0 sential f iim ations for a jest and diwahle pewee: 14 is the
11 sense Of ?o1} ass that Tni-te4 Mates asfiatanee programs in
12 the M:r East should be designed to j+romote mutual re-
13 speet and seam--4,y among the nations in the area and to foss
14 ter a elin3ate eoii4u(4 e to 'nereased eeornoffrie dey4opment;
15 4ief4y ee trib ti,,~, ,r to a e of free- and
o~ ni t~ ;~- _.=
16 ,s erinb nations in the Middle East.-
17 "SEe. 00-2. GFi*B -E AUT !T*: -The 4r-esi4ent is
18 thorized to furnish; on stteh terms and eon4itions as he may
19 eterm ine, ttssistanee atrtlterized this met e,&4 efe4its and
2() tararrties artthori ed by the Foreign MMil1ary sales met in.
21 order to Barry oat the purposes of this part:
22 Sac. 92 ioeA : --4-a~ Of the lands apprepri-
23 ated to earriy= ottt ehapter 2 of part 14 of this A-et; dtrri the
24 sett4 year 4-9.-7- ttp to 44 Q0 000 000 may he made a =ailahle
25 for mnilita assistanee in the Middle East.
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3
1 }- of the fttft& apprepittte4 to earfy eu4 ekapter 4
2 of pat IT of this -Aet; ?kttt-i-g the fuel year 4797,5 ffp to
3 44774,,,00-000 f be tde wa+ #1e fei' see ty stt A-
4 ,g assistance irr the M 1e -Ertst:
"0 0 the aggregate ee4iftg on ere4its aft4 gaar-aftties
estabske4 by seetion &1-{b}- of the deign M tay sftloi
7 Aet dttriftg the ftsea year 4-9-76 trp to $3 A; 9'90;09#3 ska44
S be awai}a44e for eeuftti ies in the i e fast-.
i e 404: -{-f}- SpEOIA-h +* -
10 There are aut teri e4 to be a} Pr to the VIcsideftt for
11 the frseai year 4975 net to eeeeed 41-99;999;989 to i teet
12 speeiai regtti emeH'ts afisirtg from time to time in earryiftg out
13 the poses of this- #a in a itiert to ?nt s etherv-use w~-
14 able for sack poses: The f s ftnfhorime4 to be rep'4-
15 ated this seetieft shall be awaiiahle for use by the 4 res -
16 dent for assistance attt ze4 by this 4et in aeeer{k ee with
}e tote ftt~tis~ }ing of sack ~? i,s n
17 the etks a~ e:
1s Sqeh t F s. are arrtkeri$ed to rein ftwai-1akie a ttl e*pep,4e4:
19 L-(4 The Rresident shall keep the C~m rittee on For-
20 e RelOt}et}s and the Qo t ftittee on rePriafens of the
21 Senate a*4 the .,-beaker- of the use of ,epresettta4ies ettf-
22 rently ifrfer ned on the prregrami tg and ebiigfttien of fwi+&,
23 under su e eerie
-A-et
24 S -E -37 See#+en 60-(-p- of the eign Ass i4ftnee
25 of 4-961 is repealed
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4
1 $
2 L'1.. y 1 T1llC'Tt;T M1 T 'TTy(1'AY C/TT)TTe '/~~-{
~7 1 V1J :L~~31T iUiV Vlrp'1Zy~Cj7-SmT
3 4: &eetieii 80-a of the deign of
4 404 is arei to iea4 as
TTI1\TTlI.T T r/ TT~Tr7~~ 1~ 1~V
5 al t/ ~n~ {] ff u~~`
? to 1"1T1^GT~1~
V
6 he aop 7"v tb ide} t6 n ` i
uv~ t1JV&nee jE~r
7 i e? atr4 feeeistit of So h n ft,14
8 4?aaes as aa~e~} by t ift mien to P&H& other
9 W'Re fl'-';ft"ftb'e fOF Sul"h oses;f #heiseai y-eff 4Q-74 n,4
10 to exceed $504, 000,, , aid f0f the fiscal y-eff 4-9q6 not to
11 e eee4 9 w-h" am aFe a orize4 to ire-
12 ffiftift avail eu-PA4 de4.-'
13 TI-T-LE J.
14GN A-,Q,~c
15 x:1 P*E-N+
16 SEe- 6- See en 4-99 of the Pofe4gn Affiis,ne Acet of
17 4P PA is a efl~ by ffkik4fig out the weeds -` AA,000
18 fefea of the fise ys474aR44 ' iiffff~ in
19 lie* thereof "$291,000 998 for the fsea} y-eff 4 4; and
20 546 X90;999 e
fiseal year M75
21 HO %ING GUA4hkN4qr,,&
22 See4oft M* of the Fefei-69% $s;,; 44
23 of -19.04. is amended by 4gii-Rg ftat u re 9- 07 > a
24 g in lieu # eef "June & ,y
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5
1 iinr~ ~:~ ~`~O M7 9 Mr AND PROGRAMS
2 e ~: Seetion N2-(4 of the FeFeigt~ $ns; ee A-et
3 Of 199 is aid by st =iking out the we s 4 het the ?tsea4
4 -Yeff 4-975, $50;0'0,000" an4 i se$ittg i t lieu thereof 4 r
5 the tseaa Yeff 4-5, $35900; 00".
6 *S NQE
7 8 -(} chapter -2 of pot $ of the -ereign As-
g s; of is amer4e4 as R)ROws!
9 -(4)- In seeti 5O4-(a) , stye o 542-,500;e 9
10 fo-P the fsea1 year 197-4' aPA insert in lieu ~he-reof
11 -` 9 000;880 the &*-~ yeaf X7-5.'
12 {-2-)- {n SeetiE)~ 606 (a)
13 }' Strike ate the frsea4 year 1974- in ea,eh
14. plaee it appears a-tt insert in Neu # rereof "fide ftse
15 year y 5" ? a
16 -(B)- At the end of subsection -(-a,-)- a44 the
17 ei}e in-g t " e~Reeed ~ng ,=
I'S 900,800 in wJti-e Hiay be issued un4er this s4-
, upon saeb 4e' r a en 4'-ing the wed
19 s~-
20 of any sueeeeding fiscal year t p reeedes the
21 ene, e er of iegisiatio a e i Triatiefl-B
-
22 fff iinU4ayy assistanee for that fise year
23 -(4 der seetion 559?x, add the 10110wiftg
24 eeetien-:
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6
1 5O7 THE, CHANT OF
2 ,--
3
4 k e e eels c~ } e ft t c ~C e c b
5 yeff 4417,5 t tFp4e #c~= ~ ~, ~ e } rte
6 I+ff" +- f}fft 4ffls t+l*t4 fiot exeee+} 1 A;A -
C4 W, O
7 - ( 4 1 The, S eel'e m !y of to s h ft . 4 ?yo+ a
ififOf the 8peft-ke of the, T-H e of E }i'ese3 ft } ftd
9 v ? fee en Fey etb * R+4ftf4oiif, fti+4 the Co+ tee eft
10 A e }r- + + the 8eftftte of e"-4+ 4,-C4 to fifftlish off eb
1.1 g l}fts-ts to ftn- eoitii fy e eess 4efei oe ft"+ w14eh ftre
i, vJ , . w m racCrlt tteif ttfttl+ef W?ftp6}IS
13 s ettt -Wtts +lot }f 14,, in the peen t+iftte i pie-
1.4 4et s ttit#-et} to t}-te bre; s rd4 euad4y, the &eie-
15 of gthto sltel ftlso stfht i}t ft f tt3? E'i }} , to the coil-
16
by eoi y t4e total e of ft11 deliv-e ies of
~Ifv
17 exees~ 4efeuee ft f} ;elf~s tb # t ft e e the ft}
19
fbe eft the ft re e tt e the time of 4e--
RwIly. 11
20 +4 8eetieR e* of the t of
21 '4 e &pp~y to s# ee &ttt4sfjOe4 ffl+def ay pro_
22 rsloft of f0f the fsea 1
23 -(e} Sve# it A 4 tte 4-f4 et+ + "Aft e a ,R4 t e
24 F-ff6gi+ Alijitffi~y Sftl-es. t ftff4 ? o pses" a_
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1 proi-ed d-ft afy 42- 4974 -(-84 2053 ; as arse ~4ec;
2 is repeale4; effeetie 4; 4-94:
3 Y 3PPei n'cr NG r cc~,STffST CB
4 SEe 9. Section of the reign A-ssistftfte-e -Act of
5 ,961 is arneide4 by s-t sttt L for- the flse .I yweui=
6 4-97-4 wot to exceed 42"5-,000-,000-, 4 wl eh not less that
7 rO;OO0;000 shall he &v ti&tble solely ler Iartel-" and for -e-rt-
8 i-g it feu thereof -?er the -seal y-c-ay .14)-T not to exec
9 $48", 00;000"
10 TITLE I-V
11 FOREIGN MILITARY S- AOT AM IENTS
12 4-0. -(4 T-e Fereibu Militai~y Wiles et is
1.3 ceded es folio ws:
14 -(-1--}- ,eetion " }- is ? - e1&,4 to reed as folio-ms=""
15 4,d~ .. eottetry sh ll ttitt ineligible in fteeerdftnee
16 with aubseetiofi -(-e)-- of this section until such time as t4 e
e
17 g ,nt delerntitres 'a sttelt iola ie i s eeai ll th
18 eetx y concerned has gig ttss tees aatisfaetory to the
19 went that such violation will fiet 1eeur and tit; if such
20 violation iFkVOWed the transfer of eehis ted we apons with
21 otkt the eensent of the pry stteh wefts lie been
22 r-etiayft e4 to theeou-ht-py cone .
24
4nt seetion 24-(ft}- ftn4 section 22-44b* the p nien -
l}te i e l ltrtkr~e t et eh i s ftfftend- e 4 to rc t4 c c I t
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1 T;ftited States 44&ve.fflHwiA ageneies ether than the Fe&--
2 eral mein-g &? -)-
3 -(-3-)- Section {e+ is araef4e,4 to read as follows
4 q q looms mft+le ile to eat oat this A4 }
5 be obligated it an amt egtta4 to -215 per eenttt of the
6 pfi-peipal affwtifft of ee t l liffbim-lity a e4 to any guar-
7 aRty issued prior to 4 1974, der this seetio r Fads
8 ffift4e aai4able to eftrfy eat this :hall be obligated in an
9 a onnt equal to 40 per ee rtum of the pAileipal amount of
10 contractual liability related to a guaranty issued alb
11 J e 0; 1974, it this see .o r. Al4 the fffii4s se eiigated
12 shall e^r ite a si 4e reserve far the patent of elaims
13 'der a" guaranties; and onl snob of the fiHtdg in the
14 reser as may be in ex-eess from time to time of the total
15 pfineipnl amount of eontraet-txa4 liability relate4 to all eat-
16 standing guaranties under this seetien shall be deobligated
17 and transf erg d to the genefa4 fund of the Treasury: Afly
18 g+tranties issued hereunder shall be baelke by the lull faith
19 and credit of the United States."
20 -(4)- 4n seetimeft 34--
21 -(- )- c? ion -{er)- is amended by strip
22 oat " "2 5,000;080) for ftse tl y-eff 4974" e,*d in-
23 sertiu+g in lien thereof " ` 3;880;0A9 for the meal
24 year 45"-; a
25 ~- , ee (h} is amended by striking oat
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9
for 1 ;009;809 the tsea1 yeftr 4974, of whieh
2 ett eot less that $390-000;000 shftk'i be k-
3 ft ke to ~srftek ems" ftij4 ittsertiog in kiett t tey-eof
4 599;000 joy the tseftk yeft-r 497-~-':
8--
5 ~ } Ift see1 i oft
6} subseetiet ~ft} is t=epeftke
7 )- st 4 seetion -(b} ie re4esigItftte4 fts stthsee-
s tip 441
9 ft new snbseetien -(-1*)- is ft 44e4 fts follow
10 " } The Preside tt nfty w e the -,itfttio s Of this
11 seetien ,vlwn he 4etert es it to be i tjertft*t to the seettfity
12 of the ttite?k Stfttes ftttd imply so }epefts to the Speaker
of the llettse of e rese ttftti ftrt4 the t tutee ett ~a 0+-
13 14 4goiji }ehttiofts of the See:
-(b} 914 }ens nib+al&y e ft ge+i ag?ti st ft r re }ft ie
eke a; -eft le for ptwposes thu he eed by Beet+en of
the o igtt kitft Sakes Aot ftkter ate t3&, 4474-, ft
prior to the enftetreot of the ftren4:n4eri.t of that ~ket by
pft g h -(4-)- Of stthseetien (ft} of tktis seetion in ftf ft3 ett tti
elk to 92,4 per eentttn of the pri teipak ftmonnt of contf e-
tttftk kifthility rekftteck to gftay?t.ties isstte4 pttcseftFtt to seetiott
24-Eft} of that Act shftkk be ft4jaste4 to re4l.eet sneh fta tet-k-
tt with proper ere4it to the ftpp ifttio+ts fft4e ftwfti ftbxe
in the tseftl year 49-7-5 to eft ry ertt thftt A74
5.3394 2
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1 That this Act may be cited (is the "Foreign Assistance Act
2 of 1974".
3 l+'OOD AND NUTRITION
4 SEC. Section 103 Of the 1+ oreign Assistance Act of
5 1961 is amended-
6 (1) by inserting the subsection designation. "(a)"
7 immediately before "In";
8 (2) by strilcin j out ",,291,000,000 for each of the
9 fiscal years 1974 and 197,5" and inserting in lieu
10 thereof $291,000,000 for the fiscal year 1974, and
11 $491,000,000 for the fiscal year 1975"; and
12 (3) by adding at the end thereof the following:
13 "(b) The Congress finds that, due to rising world food,
14 fertilizer, and petroleum costs, human suffering and depri-
15 vation are growing in the poorest and most slowly develop-
16 ing countries. The greatest potential for significantly expand-
17 ing world food production at relatively low cost lies in
18 increasing the productivity of small farmers who constitute
19 a majority of the nearly one billion people living in those
20 countries. Increasing the emphasis on rural development and
21 expanded food production in the poorest nations of the devel-
22 oping world is a matter of social justice as well as an impor-
23 . tant factor in slowing the rate of inflation in the industrial-
24 ized countries. In the allocation of funds under this section,
25 special attention should be given to increasing agricultural
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1 production in the countries with per , cap ita " incomes under
2 $300 a year and which are the most severely affected by
3 sharp increases in worldwide commodity prices."
4 POPULATION PLANNING
5 SEC. 3. The Foreign Assistance Act of 1961 is amended
6 a,s follows:
7 (1) In section 104, strike out "$145,000,000 for
8 each of the fiscal years 1974 and 1975" and insert in
9 lieu thereof "$145,000,000 for the fiscal year 1974, and
10 $165,000,000 for the fiscal year 1975".
]1 (2) In section 292, strike out "$130,000,000" and
1.2 insert in lieu thereof "-,150,000,000".
13 EDUCATION AND HUMAN RESOURCES DEVELOPMENT
1.4 SEC. 4. Section 105 of the Foreign Assistance Act of
15 1961 is amended by striking out "$90,000,000 for each of
16 the fiscal nears 1974 and 1975" and inserting in lieu thereof
17 "$90,000,000 for the fiscal year 1974, and $92,000,000
18 for the fiscal year 1975".
19 H017SING GUARANTIES
20 SEC. 5. The Foreign Assistance Act of 1961 is amended
21 as follows:
22 (1) In section 221, strike out ".$305,000,000" and
23 insert in lieu thereof "$405,000,000".
24 (2) In section 223(i), strike out "June 30, 1975"
25 and insert in lieu thereof "June 30, 1976".
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1 INTERNATIONAL ORGANIZATIONS AND PROGRAMS
2 SEC. 6. Section 302 (a) of the Foreign Assistance Act
3 of 1961 is amended by striking out "for the fiscal year 1975,
4 $150,000,000" and inserting in lieu thereof "for the fiscal
5 year 1975, $186,900,000".
6 MILITARY ASSISTANCE AUTIIORIZATIOIN'S
7 SEC. 7. Section 504(a) of the Foreign Assistance Act
8 of 1961 is amended by striking out "$512,500,000 for the
9 fiscal year 1974" and inserting in lieu thereof "$550,000,-
10 000 for the fiscal year 1975".
11 SPECIAL AUTHORITY
1.2 SEC. 8. Section 506 , o f the Foreign Assistance Act of
13 1961 is repealed.
14 MILITARY ASSISTANCE AUTIIOPIZATIONS FOP SOUTH
15 VIETNAM
16 SEC. 9. Section 513 of the Foreign Assistance Act of
17 1961 is amended as follows:
18 (1) Strike out "Thailand and Laos" in the caption
19 and insert in lieu thereof "Thailand, Laos, and South
20 Vietnam".
21 (2) At the end thereof acid the following new sub-
22 section :
23 "(c) After June 30, 1975, no military assistance shall
24 be furnished by the United States to South Vietnam directly
25 or through any other foreign country unless that assistance
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13
1 is authorized under this Act or the Foreign Military Sales
2 Act."
3 EXCESS DEFENSE ARTICLES
It SEC. 10. (a) Chapter 2 of part II of the Foreign
5 Assistance Act of 1961 is amended by adding at the end
6 thereof the following new section:
7 "SEC. 514. LIMITATION ON TIME GRANT OF EXCESS
8 DEFENSE ARTICLES.-(a) The value of any excess defense
9 article furnished to a foreign country or international or-
10 ganization by any agency of the United States Government
11 shall be considered to be an expenditure made from funds
12 appropriated under section 504 of this Act. Unless such
13 agency certifies to the Comptroller General of the United
14 States that the excess defense article it is ordering is not to
:L5 be transferred by any means to a foreign country or inter-
1G national organization, when an order is placed for a defense
17 article whose stock status is excess at the time ordered, a sum
18 equal to the value thereof (less amounts to be transferred
14,) under section 632(d) of this Act) shall (1) be reserved and
20 transferred to a suspense account, (2) remain in the suspense
21 account until the excess defense article is either delivered to
22 a foreign country or international organization or the order
23 therefor is canceled, and (3) he transferred from the suspense
24 account to (A) the general fund of the Treasury upon
25 delivery of such article, or (B) the appropriation made
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1 under section 504 of this Act for the current fiscal year upon
2 cancellation of the order. Such sum shall be transferred to
3 the appropriation made under section 504 of this Act for
4 the current fiscal. year, upon delivery of such article, if at
the time. of delivery the stock status of the article is deter-
6 mined in accordance with section 644 (g) or (m) of this Act
,7 to be nonexcess.
8 ."(b) The President shall promptly and fully inform the
9 Speaker of the House of Representatives and the Committee
10 on Foreign Relations and the Committee on Appropriations
11 of the Senate of each decision to furnish on a grant basis to
12
13
14
15
any country excess defense articles which are major weapons
systems to the extent such major weapons system was not in-
cluded in the presentation material previously submitted to
the Congress. Additionally, the President shall also submit
a quarterly report to the Congress listing by country the
17 total value of all deliveries of excess defense articles, disclos-
18
19
20 .
21
22
23
24,
25,
ing both the aggregate original acquisition cost and the aggre-
gate value at the time of delivery."
(b) Section 644 (m) (1) of the Foreign, Assistance Act
of 1961 is amended to read as follows:
"(1) with respect to an excess defense article, the
actual value of the article but not less than 331 per
centum of the amount the United States paid at the time
the defense article was acquired by the United States;".
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1 (c) Sections 8 and 11 of the Act entitled "An Act to
2 amend the Foreign . -i.litary Sales Act, and for other pur-
3 poses", approved January 12, 1971 (84 Slat. 2053), as
4 amended, are repealed.
5 STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN
6 COUNTRIES
7 SEC. 11. Chapter 2 of part II of the foreign Assistance
8 Act of 1961, as amended by section 10(a) of this Act, is
9 further amended by adding at the end thereof the following
10 new section:
11 "SEC. 515. STOCIUILINVG OF DEFENSE ARTICLES FOR
1-2 il'OREIGN COI NTRIESSS.-(a;) Notwithstanding any other pro-
13 vision, of law, no funds, other than funds made available under
14 this chapter or section 401(a) of Public Law 89-367 (80
15 Slat. 37), or any subsequent corresponding legislation, may be
16 obligated for the purpose of stockpiling any defense article or
17 war reserve material, including the acquisition, storage, or
18 maintenance of any war reserve equipment, secondary items,
19 or munitions, if such article or material is set aside, reserved,
20 or in any wart earmarked or intended for future use by any
21 foreign country under this Act or such section.
22 "(b) The cost of any such article or material set aside,
23 reserved, or in any way earmarked or intended by the Depart-
24 ment of Defense for future use by, for, or on behalf of the
25 country referred to in section 401 (a) (1) of Public Law 89-
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367 (80 Stat. 37) shall be charged against the limitation
specified in such section or any subsequent corresponding leg-
3 islation, for the fiscal year in which such article or material
4 is set aside, reserved, or otherwise earmarked or intended;
5 and the cost of any such article or material set aside, reserved,
6 or in any way earmarked or intended for future use by, for,
.7 or on behalf of any other foreign country shall be charged
8 against funds authorized under this chapter for the fiscal
9 year in which such article or material is set aside, reserved,
10 or otherwise earmarked. No such article or material may be
11 made available to or for use by any foreign country unless
12. such article or material has been charged against the limita-
13 tion specified in such section, or any subsequent correspond-
14 ing legislation, or against funds authorized under this chap-
15 ter, as appropriate..
16 "(c) This section shall not be construed as conferring
17 any authority to stockpile defense articles or war materials
18 under this Act or such section 401(a), or subsequent corre-
19 sponding legislation."
20 MILITARY ASSISTANCE ADVISORY GROUPS AND MISSIONS
21 SEC. 12. Chapter 2 of part II of the Foreign Assistance
22 Act of 1961, as amended by sections 10(a) and 11 of this
23 Act, is . further amended by adding at the end thereof the
24 following new section:
"SEC. 516. MILITARY ASSISTANCE ADVISORY
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1 GROUPS AND MISSIONS.-An amount equal to each sum
2 expended under any provision of law, other than section 504
3 Of this Act, with respect to any military assistance advisory
4 group, military mission, or other organization of the United
5 States performing activities similar to such group or mission,
6 shall be deducted from the funds made available under such
7 section 504, and (1) if reimbursement of such amount is
8 requested by the agency of the United States Government
9 making the expenditure, reimbursed to that agency, or (2)
10 if no such reimbursement is requested, deposited in the Treas-
ury as miscellaneous receipts."
TEIRMIN 9 TION OF AUTIIORITY
13 SEC. 13. (a) Chapter 2 of part II of the Foreign Assist-
14 ante Act of 1961, as amended by sections 10(a), 11, and
1: i 12 of this Act, is further amended by adding at the end
16 thereof the following new section:
17 "SEc. 517. TERMINATION or AUTIIORITY.-(a) (1)
18 The President shall gradually reduce assistance (other than
19 military training) provided under this chapter so that, not
20 later than September 30, 1977, no assistance (other than
21 military training) shall be provided under this chapter.
22 "(2) Paragraph (1) of this subsection shall not apply
23 to funds obligated prior to October 1, 1977.
24 "(b) For each of the fiscal years 1975, 1976, and 1977,
5.3394 3
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1 the President is authorized to finance procurements of defense
2 articles and defense services (other than military training)
3 by any foreign country receiving defense articles or defense
4 services during fiscal year 1974 under this chapter on terms
5 providing for payment to the United States Government in
6 . United States dollars (1) of the value of such articles .and
7 services which value shall not exceed during each such fiscal
8 year the value of such articles and services (other than mili-
9 tary training) furnished that country in fiscal year 1974
10 under this chapter, (2) at a rate of interest of not less than.
11 four per centum a year, and (3) within ten years after
12 delivery of the defense. articles or rendering of the defense
13 services.
14 "(c) (1) By not later than September 30, 1977, all the
1.5 functions of a military assistance advisory group, a military
16 mission, or other organization of the United States Govern-
17 meat in a foreign country performing activities similar to
1s any such group or mission, shall be transferred to the. Chief
19 Of the United States Diplomatic Mission to that country.
20
Upon the transfer of such functions, that group, mission, or
organization, as the case may be, shall cease to exist.
22 .."(2.) On and after October 1, .1977, the total number
23 Of military attaches assigned or detailed,to the United :Stats
24 , . Diplomatic Mission of a foreign country shall not exceed by
25 more than twenty-fire per centum the total number of military
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1 attaches authorized to be assigned or detailed to that mission
2 on June 30, 1974.
3 "(3) On and after October 1, 1977, no military assist-
4 ance advisory group, military mission, or other organization
5 of the United States Government in a foreign country per-
6 forming activities similar to any such group or mission, shall
7 be established or continued unless such group, mission, or
g organization is authorized by law specifically for that
9 country."
_E2
14
19
22.
(b) Effective October 1, 1977-
(1) the heading of chapter 1 of part II of the For-
eign Assistance Act of 1961 is amended to read as
follows:
"CHAPTER 1-PROVIDING MILITARY Tn iINING";
(2) sections 501, 502A, 514, and 516, and sub-
section (g) of section 644, of the Foreign Assistance Act
of 1961 are repealed;
(3) section 502 of the Foreign Assistance Act, of
1961 is amended by striking out the caption "Utilization
of Defense Articles and Services" and inserting in lieu
thereof "Providing Military Training", by striking out
o l the text "Defense articles and defense services" and
23 inserting in lieu thereof; "Military training", and by
24 striking out the last sentence;
(4) the heading of chapter 2 of part II of the
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Foreign Assistance Act of 1961 is amended to read as
follows:
"CHAPTER 2-MILITARY TRAINING";
(5) sections 503-505 of the Foreicln Assistance Act
of 196.1 are stricken out and the following inserted in
lien thereof:
"SEC. 503. GENERAL AUTITORITY.--The President is
authorized to furnish, on such terms and conditions consistent
with this Act as the President pray determine, military train-
ing 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 out-
side the United States except by specific authorization of
law.";
(6) section 511 of the Foreign Assistance Act of
1961 is amended by .striking out of the section caption
"Assistance" and inserting in lieu thereof "Training",
and by striking out of the text "military assistance" and
"such assistance" and inserting in lieu thereof "military
training" and "such training", respectively;
(7) section 636 (g) (1) of the Foreign Assistance
Act of 1961 is amended by striking out "defense articles
and defense services on a grant or sales basis" and
inserting in lieu thereof ",military training"; and
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(8) section 644 (m) o f the Foreign Assistance Act
of 1961 is amended by striking out subparagraph (1)
and by striking out Of subparagraphs (2) and (3)
4 . "nonexcess" wherever it appears.
5 TERMINATION OF MILITARY ASSISTANCE TO SOUTH KOREA
6 SEC. 14. Chapter 2 of part II of the Foreign Assistance
7 Act of 1961, as amended by sections 10(a), 11, 12, and
g 13(a) of this Act, is further amended by adding at the end
9 thereof the following new section :
10 "SEC. 518. TERMINATION OF MILITARY ASSISTANCE
11 To SOUTH KOREA.-(a) The total of (1) the amount of
12 funds obligated under this chapter to furnish assistance to
13 South Korea, and (2) the value Of excess defense articles
14 furnished to South Korea under this chapter, shall not
15 exceed-
16 "(A) $91,500,000 during the fiscal year 1975;
17 "(B) $61,000,000 during the fiscal year 1976;
and
19 "(C) $30,500,000 during the fiscal. year 1977.
20 "(b) The aggregate total of credits extended, including
21 participations in credits, and the principal amount of loans
22 guaranteed, under the Foreign Military Sales Act with re-
23 spect to South Korea shall not exceed-
24 " (1) $42,450,000 during the fiscal year 1975;
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"(
and
) $28,300,000 during the fiscal year 1976;
"(3) $14,150,000 during the fiscal year 1977.
4 "(c) On and after October 1, 1977, no assistance shall
be furnished South Korea under this chapter, and no credits,
6 including participations in credits, shall be extended, and no
7 loans shall be guaranteed, under the Foreign Military Sales
Act with respect to South Korea. The preceding sentence shall
9 not apply with respect to funds obligated prior to such date."
10 SIE,'CURITY SUPPORTING ASSISTANCE
11 SEC. 15. Section 532 of the Foreign Assistance Act of
12 1961 is amended by striking out "for the fiscal year 1974
1.3 not to exceed $1,25,000,000, of which not less than $50,000,-
14 000 shall be available solely for Israel" and inserting in
15 lieu thereof "for the fiscal year 1975 not to exceed
16 $585,500,000".
17 TRANSFER BETWEEN ACCOUNTS
18 SEC. 16. (a) Section 610 of the Foreign Assistance Act
19 of 1961 is amended as follows:
20 (1) In subsection (a), immediately after "any other
21 provision of this Act", insert "(except funds made avail-
22 able under chapter 2 of part II of this Act) ".
23
(2) Add at the end thereof the following new sub-
24 section :
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" (c) Any funds which the President has notified Con-
2 gress pursuant to section 653 that he intends to provide in
3 military assistance to any country may be transferred to, and
4 consolidated with, any other funds he has notified Congress
5 pursuant to such section that he intends to provide to that
6 country for development assistance purposes."
7 (b) (1) Section 614 of such Act is repealed.
8 (2) Such Act is further amended as follows:
9 (A) In section 109, strike out "sections 610 (a) and
10 614 (a)" and insert in lieu thereof "section 610 (a)".
(B) In section 201 (c), strike out the comma and
12 "nor may the authority of section 614 (a) be used to
13 waive the requirements of this title".
14 (C) Section 251 (c) is amended to read as follows:
15 "(c) The authority of section 610 may be used to trans-
16 fer funds made available for this title only to funds made
17 available j or title I of this chapter."
18 (D) Section 302 (b) (2) is amended by striking
19 out "or 614 (a) ".
20 (E) Section 610(b) is amended by striking out
21 "sections 451, 506, and 614" and inserting in lieu
22 thereof "section 451".
23 (1+) Section 634(d) is amended by striking out "or
24 614(b)",
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1 (G) Section 6512 is amended by striking out "section
2 506(a), 610(a), or 614" and inserting in lieu thereof
3 "section 610(a)".
(II) Section 653(b) is amended by striking out
5 and may not be waived under the provisions of section
6 614(a) of this Act".
7 ACCESS TO CERTAIN MILITARY BASES ABROAD
8 SEC. 17. (a) Chapter 3 of part III of the Foreign As-
9 sistance Act of 1961 is amended by adding at the end thereof
10 the following new section:
11 "SEC. 659. ACCESS TO CERTAIN MILITARY BASES
12 ABROAD.-None of the funds authorized to be appropriated
13 for foreign assistance (including foreign military sales, credit
14 sales, and guaranties) under any law may be used to pro-
15 vide any kind of assistance to any foreign country in which
16 a military base is located if-
17
"(1) such base was corastrueted, or is being main-
18 tained or operated with funds furnished by the United
19 States; and
20 "0?) personnel of the United States carry out mili-
21 tart' operations from such base;
22 unless and until the President has determined that the gov-
23 ernment of such country has, consistent with security au-
24 thorized access, on a regular basis, to bona fide news media
25 correspondents of the United States to such military base."
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(b) Section 29 of the Foreign Assistance' Act of 1973
is' repealed.
PROHIBITING POLICE TRAINING
SEC. 18. (a) Chapter 3 of part III of ~ the Foreign
Assistance Act of 1961, as amended by section 17(a) =d f this
Act, is further amended by adding at the end thereof the
following new section:
"SEC. 660. PROHIBITING POLICE TRAINING.-(a)
None 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 police,' prisons, or other internal security : f orcei
13 for any foreign government or any program of internal in
14 telligence or surveillance on behalf of any foreign government
15 within the United States or abroad.
16 "(b) Subsection (a) of this section. shall not apply-
17 "'(1) with respect to assistance rendered under sec-
18 tion,, 515 (c) of the Omnibus Crime Control and Safe
19, Streets Act of 1968, or with respect to any authority of
20 the: Drug Enforcement Administration or the federal
21 Bureau of Investigation which related to crimes of the-
22 nature which are unlawful under the laws o f . the United`
23 States; or
24 " (2) ' to any contract entered into prior .to the date
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f enactment of this section with any person, organiza-
2 Lion, or agency of the United States Government to pro-
3 vide personnel to conduct, or assist in conducting, any
4' such program.
5? Notwithstanding clause (2), subsection (a) shall apply to
6 any renewal or extension of any contract referred to in such
7 paragraph entered into on or after such date of enactment."
(b) Section 112 of such Act of 1961 is repealed.
9 LIMITATIONS UPON ASSISTANCE T`O OR FOR CHILE
10 ' SEC.' 19. Notwithstanding any other provision of law,
11 the total amon.nt of assistance that may be made available for
12 Chile under this or any other law during fiscal year 1975
13 may nd,t 'exceed $655,000,000, of which amount not to.exceed
14 $10,000,000 may be made available for the purpose of
15 providing military assitanee (including credit sales and the
16 `face. amount of guaranties) .
POLICY WITH RESPECT TO INDOCHINA
$ !SEC..20. (a.) The Congress finds that the cease-fire pro-
19 vided for in the Paris Agreement on Ending the War and
20
21
.22
Restoring Peace in Vietnam has not been observed by any of
the Vietnamese parties to the conflict. Military operations of
an offensive and defensive nature continue throughout South
Vietnam. In Cambodia, the civil war between insurgent forces
24 and the Lon Nol government has intensified, resulting in
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widespread human suffering and the virtual destruction of
the Cambodian economy.
(b) The Congress further finds that'? contin~iation of the
4 military struggles in South Vietnam and"ambotia are nht
5 in the interest Of the parties directly engaged in the conflicts,
6 the people Of Indochina, or world peace. In order t&'lessen the
7 human suffering in, Indochina and to bring, about `a, genuine
8 peace there, the Congress urges and reVests the 'President
9 and the Secretary of State to undertake imni diatelg the f o'l`
10 lowing measures:
11 (1) to initiate negotiations with,
preserilatives of
12 the Soviet Union and the People's 7 epublic of China to'
1.3 arrange a mutually agreed-upon and rapid'de-escalation-
14 of military assistance on the part of the the e``rincipol'
15 suppliers 'of as and material to all _'Vidn" truese arid
16 Cambodian parties engaged in conflict;
17 (2) to urge by all available means that the Govern='
18 nzent of the Khmer .Republic enter into rtegotiatibns with
19 representatives of the Khmer Gover'nnent 'of 'Nationdl "`
20 Union for the purpose of arranging an immediate cease
21 fire and political settlement of the eon flict, + znd'to use all
22 available means to establish contact with the`Khmer Gov
23 ernment of National Union and to urge then to ` partici
24 pate in such negotiations. The United States should urge
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1 all Cambodian parties to use the good offices of the United
2 Nations or a respected third country for the purpose of
urGitytuq an ena to hostilities and reaching a political
settlement; .
(3) 'to utilize any public or private forum to liego-
6 tiate directly with representatives of the Democratic. Re-
7 public of. Vietnam, the Provisional Revolutionary Gov-
8 ernment, and the Republic of Vietnam, to seek a new
9 cease-fire in Vietnam and full compliance with the provi-
10 sions of the Paris Agreement on Ending the War and
11 Restoring Peace in Vietnam, including a full accounting
12 for Americans missing in Indochina;
13 (4) to reconvene the Paris Conference to seek full
14 implementation of the provisions of the Agreement of
15, . January 27, 1973, on the part of all Vietnamese parties
16 to the conflict; and
17 (5) to maintain regular and full - consultation with
18. the appropriate committees of the Congress and report to
19 the. Congress and the Nation at regular intervals on the
20. progress toward obtaining a total cessation of hostilities
21 in Indochina and a mutual reduction of military assist-
22 ance, to that area.
23 PRINCIPLES GOVERNING ECONOMIC AID TO INDOCHINA
24 SEC. 21. (a) Congress finds that, after expending over
25 a billion dollars in funds for economic purposes in Indo-
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I china last year, and vast amounts in previous years, little
2 in lasting economic benefit remains.. A large proportion of
3 the funds expended have been used for consumable items
4 related to. the war effort. Very little of our money has found
5 its way into capital investments of a lasting productive bene-
6 fit to the people. Congress calls upon the President and Sec-
7 rotary of State to take immediately the following actions
8 designed to maximize the benefit of United States economic
9 assistance :
10 (1) to organize a consortium: to include multilateral
11 financial institutions to help plan for Indochina recon
12. struction and development; to coordinate multilateral.
13 . and bilateral contributions to the area's economic recov-
14 ery; and to provide continuing advice to the recipient
15 nations on the use of their own and outside resources;
16 (2) to develop, in coordination with the recipient
17 governments, other donors,' and the multilateral financial
-18 institutions, a. comprehensive plan for Indochina recon-
19 struction and economic development;
20 (3) ' to develop country-by-country reconstruction
21 and developments plans, including detailed plans for the
22- . development of individual economic sectors, that can be
23 used to identify and coordinate specific economic develop-
24 mint projects and prog"rams and to direct United States
25 resources into areas of maximum benefits;
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1 (4) to shift the emphasis of United States aid pro-
2 grams from consumption-oriented expenditures to cco-
3 nomic development;
4 (5) to identify possible structural economic reforms
5, in areas such as taxation, exchange rates, savings mech-
6 afisms, internal pricing, income distribution, land tenure,
7 budgetary allocations and corruption, which should be
8 undertaken if Indochinese economic development is to
9 progress; and
10 (6) to include in Indochina economic planning and
11 programming specific performance criteria and stand-
12 arils which will enable the Congress and the executive
13 branch to judge the adequacy of the recipients' efforts
1-4 and to determine whether, and what amounts of, con-
15 tinned United States funding isill8tified.
16 (b) This section is not meant to imply continuation of a
17 United States financial coinmitment beyond the authorization
18 provided for in this Act or amendments made by this Act.
19 INDOCHINA POSTWAR RECONSTRUCTION
20 SEC. 22. Section 802 of the Foreign Assistance Act of
21 1961 is amended to read as follows.
22 "SEC. 802. AUTHORIZATION.-There are authorized to
23 be appropriated to the President to furnish assistance for the
24 relief and reconstruction of South Vietnam, Cambodia, and
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1 Laos as authorized by this part, in 'addition to funds other-
2 wise available for such purposes, for'.. the fiscal year'1974 not
3 to exceed $504,000,000, and for the fiscal year 1975 not
4 to exceed $550,000,000. ' O f the amount appropriated for
a fiscal year 1975-
"(1) $420,000,000 shall. be availabl only for the
7 relief and reconstruction of South:.Vietnam 'in accordance
8 'with section 806'6f this Act; '
9 "(2) $70,000,000' shall be available. only for the
10 relief and reconstruction of Cambodia in accordance:
11 with section 807 of this Act;
12 "(3) $45,000,000 shall be' available only, for the
13 relief and reconstruction of Laos in accordance with
14 section 808 o f this Act;
15 ' "(4) $3,750,000 shall be available only for the
17
1s
regional development program; and
"(5) $11,250,000 shall be.available only for 'sup-
port costs for the agency primarily responsible for carry-
in# out this part.
20 Such. amounts are authorized to remain' available until
21 expended."
22, ASSISTANCE .TO SOUTH VIETNAMESE CHILDREN
23 $Ec, 23. Section 803 ' o f the Foreign .Assistance Act of
24 1961 is amended as follows:
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1 (1) In subsection .(a), strike out "rights, particu-
2 larly children fathered by United States 'citizens" and
3 insert in lieu thereof "rights".
(2) In subsection (b), between the second and third
sentences, insert the following: "Of the sums made avail-
6 able for South Vietnam under section 802 (1) of this
7 Act for fiscal year 1975,?10,000,000, or its equivalent
8 in local currency, shall- be available until expended solely
9 to carry out this section."
1.1
LIMITATIONS WITH RESPECT TO SOUTH VIETNAM
SEC. 24. Part V of the Foreign Assistance A*ct q1961
1961
amended by adding at the end thereof the following new
1.3 section:.
1.4 "SEC. 806. LIMITATIONS WITH RESPECT TO SOUTH
1.5 VIETNAM.-(a) Notwithstanding any other'provision of law,
1.6 no funds authorized to be appropriated by this or any other
1.7 law may be obligated in any amount in' excess of - $1,280,-
18 000,000 during the fiscal year ending June 30, 1975, for
19 the purpose of carrying out directly. or indirectly any eco-
20 nomic or military assistance, or any operation, project, or
21 program of any kind, or for providing any goods, supplies,
22 materials, equipment, services, personnel, or advisers in, to,
23 for, or on behalf 'of South Vietnam. Of that amount,, there
24 shall be available during such fiscal year-
25 "(1) $700,000,000 for military assistance;
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"(2) $160,000,000 only to carry out the Agricul-
tural Trade Development and Assistattce Act of 1954;
and
4 "(3) $420,000,000 only for economic assistance,
5 of which there shall be available--=
6 "(A) $95,000,000 for humanitarian assistance,
7 of which there shall be available-
"(i) $66,500,000 for refugee relief ;
9 "(ii) $8,200,000 for child care;
10 "(iii) $10,300,000 for health care; and
11 "(iv) $10,000,000 for the City-to-Farm
12 program;
13 "'(B) $188,000,000 for agricultural assistance,
14 of which there shall be available-
15 "(i) $150,000,000 for fertilizer, POL,
16 and pesticides;
17 s` (ii) $20,000,000 for rural credit;
18 "(iii) $10,000,000 for canal dredging;
19 "(iv) $4,000,000 for low-lift pumps; and
20 "(v) $4,000,000 for fish f arm development;
21 "(C) $95,600,000 for industrial development
22 assistance, of which there shall be available-
23 "(i) $85,000,000 for commodities;
24 "(ii) $10,000,000 for industrial credit;
25 and
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1
2 and
iii) $600,000 for development planning;
4 of which there shall be available,
5 "(i) $30,000,000 for transportation; and
6 "(ii) $11,400,000 for technical sri pp rrt.
7 "(b) (1) No funds made available under paragraph
8 (2) or (3) of subsection (a) may be transferred to, or con-
9 solidated with, the funds made available under any other
10 paragraph of such subsection, nor may any funds made
11 available under subparagraph (A), (B), (C), or (D) of
(1I) N41,400,000 for miscellaneous assistance,
paragraph (3) of subsection (a) of this section be trans-
ferred erred to, or consolidated with, the funds made available
14 under any other such subparagraph.
15 "(2) Whenever the President determines it to be neces-
1( sary in carrying out this part, any funds made available
171' under any clause of subparagraph (A), (B), (C), or (D)
18 of subsection (a) of this section may be transferred to, and
19 consolidated with, the funds made available under any other
20 clause of that same subparagraph.
21 "(3) The President shall fully inform the Speaker of
22 the 'louse of Representatives and the Committee on Foreign
23 Relations of the Senate of each transfer he intends to make
24 under paragraph (2) of this subsection prior to making such
25 transfer.
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1 "(c) In computing the $1,280,000,000 limitation on
2 obligational authority under subsection (a) of this section
3 with respect to such fiscal year, there shall be deluded in the,
4 ioinputation the value of any goods, supplies, materials,
5 equil}ment, services, personnel, or advisers provided to, for,
6; or on behalf of South Vietnam in such fiscal year by gift,
7 donation, loan, lease, or otherwise. For the purpose of this
8 subsection, `value' means the fair market value of any goods,
9 supplies, materials, or equipment provided to, for, or on
10 behalf of South Vietnam but in no case less than 33'- per
11 centum of the amount the United States paid at the time such
12 goods, supplies, materials, or equipment were acquired by
13 the United States.
14 "(d) No funds may be obligated for any of the purposes
15 described in subsection (a) of this section in, to, for, or, on
16 behalf of South Vietnam in any fiscal year beginning after
17 June 30, 1975, unless such funds have been specifically au-
18 thorized by law enacted after the date of enactment of this
19 section. In no case shall funds in any amount in excess of the
20 amount specifically authorized by law for (my fiscal year
21 be obligated for any such purpose during such fiscal year.
22 ."(e) After the date of enactment of this section, whenever
23 any request is made to the Congress for the appropriation
24 of funds for use in, to, for, or on behalf of South Vietnam for
25 any fiscal year, the President shall furnish a written report
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JV
1 to the Congress explaining the purpose for which such funds
2 are to be used in such fiscal year.
3 "(f) The President shall submit to the Congress within
4 thirty days after the end of each quarter of each fiscal year,
5 beginning with the fiscal year which begins July 1, 1974, a
6 written report showing the total amount of funds obligated
7 in, to, for, or on behalf of South Vietnam during the preced-
8 ing quarter by the United States Government, and shall
9 include in such report a general breakdown of the total
10 amount obligated, describing the. di ff erent purposes for which
1.1 such funds were obligated and the total amount obligated
12 for such purpose.
13 "(g) (1) Effective six months after the date of enact-
14 merit of this section, the total number of civilian officers and
15 employees, including contract employees, of executive agencies
16 of the United States Government who are citizens of the
17 United States and of members of the brined Forces of the
18 United States present iii South Vietnam shall not at array one
19 time exceed four thousand, not more than two thousand five
20 hundred of whom shall be members of such armed forces and
21 direct hire and contract employees of the Department of
22 Defense. Effective one year after the date of enactment of
23 this section, such total number shall not exceed at any one
24 time three thousand, not more than one thousand five hundred
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3'7
1 Of whom shall be members of such, armed forces and direct
2 hire and contract employees of the Department of Defense.
3 "(2) Effective six months after the date of enactment of
4 this section, the United States shall not, at any one time, pay
5 in whole or in part, directly or indirectly, the compensation or
6 allowances of more than eight hundred indzvidarals in South
7 Vietnam who are citizens of countries other than South Viet-
8 nam, or the United States. Effective one year after the date of
9 enactment of this section, the total number of individuals
10 whose compensation or allowance is so paid shall not exceed
11 at any one time five hundred.
12 "(3) For purposes of this subsection, `executive agency
13 of the United States Government' means any agency, depart-
14 ment, board, wholly or partly owned corporation, instru-
15 mentality, commission, or establishment within the executive
16 branch of the United Slates Government.
17 "(h) This section shall not be construed as a commitment
18 by the United States to South Vietnam for its defense."
19 LIMITATIONS tiVITIL RESPECT TO CAMBODIA
20 SEC. 25. (a) Part V of the Foreign Assistance Act of
21 1961, as amended by section 24-- of this Act, is further
22 amended by adding at the end thereof the following new
23 section :
24 "SEC. 807. LIMITATIONS WITII RESPECT TO CA37-
BODIA.-(a) Notwithstanding any other provision of law, no
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funds authorized to be appropriated by this or any other law
2 may be obligated in any amount in excess of $347,000,000
during the fiscal year ending June 30, 1975, for the pur-
pose 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,
equipment, services, personnel, or advisers in, to, for, or on
behalf of Cambodia. Of that, amount, there shall be
available-
"(1) $200,000,000 for military assistance;
"(2) $77,000,000 only to carry out the Agricul-
tural Trade Development and Assistance Act of 1954;
and
"(3) $70,000,000 only for economic assistance, of
which there shall be available-
"(A) $20,000,000 for humanitarian assist-
ance;
"(B) $31,000,000 for commodity import as-
sistance;
"(C) $17,500,000 for multilateral stabiliza-
tion assistance; and
"(D) $1,500,000 for technical support and par-
ticipant training.
"(b) No funds made available under paragraph (2)
or (3) of szibsection (a) of this section may be transferred
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1 to, or consolidated with, the funds made available under any
2 other. paragraph of such subsection, nor may any funds made
3 available under any subparagraph of paragraph (3) of sub-
4. section (a) of this section be transferred to, or consolidated
5 with, the funds made available under any other such
6 subparagraph.
7 "(c) In computing. the $347,000,000 limitation on obli-
s gation authority under subsection (a) of this section with
9. respect to such fiscal year, there shall be included in the compu-
10 tation the value of any goods, sulpplies, ,materials, equipment,
1.1services, personnel, or advisers provided to, for, or on behalf
1.2 Of Cambodia in, such fiscal year by gift, donation, loan, lease
13 or otherwise. For the purpose of. this subsection, 'value'
1.4 means the. fair, market value of any goods,, supplies, ma-
15 terinls, or. equipment, provided .to, for, or on behalf of
16 Cambodia, but in, no case less than _ 33 % per centum of the
17 amount, the United States paid at the time such goods, sup-
18 plies, materials, or equipment were acquired by the United
19 States.
20 "(d) No funds may be obligated for any of the purposes
21 described in, subsection (a) of this section in, to, for, or on
22 beh,al f of Cambodia in any fiscal year beginning after June
23 unless such funds. have been specifically authorized
24 by, law e?nactcd of ter the elate of enactment of this section. In
25 no case shall funds in any amount in excess of the
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1 amount specifically authorized by law for any fiscal year be
2 obligated for any such purpose during such fiscal year.
3 "(e) After the date of enactment of this section, when-
4 ever any request is made to the Congress for the appropria-
5 tion of funds for use in, to, for, or on behalf of Cambodia for
6 any, f scal year, the President shall furnish a written report
7 to the Congress explaining the purpose for which such funds
8 are to be used in such fiscal year.
9 "(f) The President shall submit to the Congress within
1.0 thirty days after the end of each quarter of each f scal year,
1.1 beginning with the fiscal year which begins July 1, 1974, a
1.2 written report showing the total amount of funds obligated
13 in, to, for, or on behalf of Cambodia during the preceding
14 quarter by the United States Government, and shall include
1.5 in such report a general breakdown of the total amount obli-
16 gated, describing the different purposes for which such funds
17 were obligated and the total amount obligated for such
1.8
u
p
rpose.
"(g) (1) The total number of civilian officers and em-
ployees, including contract 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 en-
gaged in air operations in or over Cambodia which originate
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1 outside Cambodia) present in Cambodia at any one time
2 shall not exceed two hundred. Effective six months after the
3 date of enactment of this subsection, such total number shall
4 not exceed at any one time one hundred and seventy-five.
5 "(2) The United States shall not, at any one time, pay in
6 whole or in part, directly or indirectly, the compensation or
7 allowances of more than eighty-five individuals in Cambodia
8 who are citizens of countries other than Cambodia or the
9 United States. Effective six months after the date of enact-
10 merit of, this section, the total number of individuals whose
11 compensation or allowance is so paid shall not exceed at any
12 one time seventy-five.
13 "(3) For purposes of this subsection, `executive agency of
14 the United States Government' means any agency, depart-
15 ment, board, wholly or partly owned corporation, instru-
16 mentality, commission, or establishment within the execu-
17 Live branch of the United States Government.
18 "(4) This subsection shall not be construed to apply with
19 respect to any individual in Cambodia who (A) is an em-
20 ploycc or volunteer worker of a voluntary private, nonprofit
21 relief organization or is an employee or volunteer worker of
22 the International Committee of the Red Cross, and (B)
23 engages only in activities providing humanitarian assistance
24 in Cambodia.
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1 "(h,) This-section shall not be construed as a commitment
by the United S1at6s to Cambodia for its defense."
3 (b) Sections 655 and 656 of such Act are repealed.
4 LIMITATIONS WITH RI SPECT TO LAOS
5 Sc. E26. Part Y of the Foreign Assistance `Act of 1961,
6 as amended by sections 24 and 25(a) of this Act, is further
7 amended by adding at the end thereof . the following new
8 section:
9 "SEc. 808. LIDIMITIONS TVITH RESPECT TO LAOS.-
10 (a) Notwithstanding any other provision of law, no funds
11 authorized to be appropriated by this or any other law may
12 be obligated in any amount in excess of $100,000,000 during
13 the fiscal ye(o- ending June 30, 1,975, - for the purpose of
14 carrying out directly or indir?ectlry any economic or military
15 assistance, or any operation, project, or program of any kind,
16 or for providing any goods, supplies, materials, equipment,
17 services, personnel, or advisers in, to, for, or on behalf of
18 Laos. Of that amount, there shall be available-
19 "(1) $55,000,000 for military assistance; and
20 "(2) $45,000,000 only for economic assistance, of
21 which there shall be available-
22 ",(A) $13,000,000 for humanitarian assist-
23 ante:
24 "(B) $9,900,000 for reconstruction and de-
25 velopment assistance;
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"(C) $17,500,000 for stabilization assistance;
and
"(D) $4,600,000 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 funds made available under paragraph
(1) of such subsection, nor may any 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 on obligation authority
12 under subsection (a) of this section with respect to such fiscal
13 year, there shall be included in the computation the value of
14 any goods, supplies, materials, equipment, services, personnel,
15 or advisers provided, to, for, or on behalf of Laos in such
16 fiscal year by gift, donation, loan, lease or otherwise. For the
17 purpose of this subsection, `value' means the fair market value
18 of any floods, su.ppplies, materials, or equipment provided to,
19 for, or on behalf (if Laos but in no case less than 333 per
20 centum of the amount the United States paid at the time such
21 goods, supplies, materials, or equipment were acquired by
22 the United States.
23 "(d) No funds may be obligated for any of the purposes
24 described in subsection (a) of this section in, to, for, or on
25 behalf of Laos in any fiscal year beginning after June 30,
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1 1975, unless such funds have been specifically authorized by
2 law enacted after the date of enactment of this section. In no
3 case shall funds in any amount in excess of the amount
4 specifically authorized by law for any fiscal year be obligated
5 for any such purpose during such fiscal year.
6 "(e) After the date of enactment of this section, when-
7 ever any request is made to the Congress for the appropria-
8 lion of funds for use in, to, for, or on behalf of Laos, for any
9 fiscal year, the President shall furnish a written report to the
10 Congress explaining the purpose for which such funds are to
11. be used in such fiscal year.
12 "(f) The President shall submit to the Congress within
13 thirty days after the end of each quarter of each fiscal year
14 beginning with the fiscal year which begins July 1, 1974, a
15 written report showing the total amount of funds obligated in,
16 to, for, or on behalf of Laos during the preceding quarter by
17 the United States Government and shall include in such re-
18 port a general breakdown of the total amount obligated, de-
19 scribing the different purposes for which such funds were
20 obligated and the total amount obligated for such purpose.
21 "(g) This section shall not be construed as a commit-
22 ment by the United States to Laos for its defense."
23 TRANSFE,'R OF FUNDS
24 EEc. 27. Part V of the Foreign Assistance Act of 1961,
25 as amended by sections 24, 25(a), and 26 of this Act, is
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1 further amended by adding at the end thereof the following
2 new section:
3 "SEC. 809. TRANSFER OF FUNDS.-(a) The authority
4 of section 610 of this Act shall not apply with respect to
5 any funds made available to South Vietnam, Cambodia, or
6 Laos.
7 "(b) Any funds made available under any provision of
8 this or any other law for the purpose of providing military
9 assistance for South Vietnam, Laos, or Cambodia may be
10 transferred to, and consolidated with, any funds made
11 available to that country for war relief, reconstruction, or
12 general economic development."
1.3 MIDDLE ,AST ASSISTANCE
SEC. 28. (a) The Foreign Assistance Act of 1961 is
amended by adding at the end thereof the following new
part:
17 "PART VI
18 "SEC. 901. GENERAL AUTHORITY 1,'OR A8SIST1Lti'C'1;
22
TO TILE MIDDLE EAST.-The President is authorized under
section 902 of this Act to furnish, by loan or grant, assistance
authorized by this Act, and to provide credits and guaranties
authorized by the Foreign Military Sales Act. Any such as-
sistance, credits, and guaranties shall be provided in accord-
ance with all the purposes and limitations applicable to that
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type of assistance under this Act and applicable to credits
2 and guaranties under the Foreign Military Sales Act.
3 "SEC. 90,2. ALLOCATIONS.-(a,) Of the funds appropri-
4 ated to carry out chapter 2 of part 11 of this Act during the
5 fiscal year 1975, not to exceed $100,000,000 may be made
6 available for military assistance in the Middle East.
7 "(b) Of the funds appropriated to carry out chapter 4
8 of part II of this Act during the fiscal year 1975, not to ex-
9 teed $577,5"00,000 may be made available for security sup-
10 porting assistance in the Middle East.
11 "(c) Of the aggregate ceiling on credits and guaranties
12 established by section 31 (b) of the Foreign Military Sales
13 Act during the fiscal year 1975, not to exceed $330,000,000
14 shall be available for countries in the Middle East.
15 "SEC. 903. (a) SPECIAL REQUIREMENTS FUND.-
16 There are authorized to be appropriated to the President for
17 the fiscal year 1975 not to exceed $100,000,000 to meet
18 special requirements arising from time to time for the pur-
19 pose of providing any type of assistance authorized by part
20 1 of this Act, in addition to funds otherwise available for such
21 purpose. The funds authorized to be appropriated by this
22 section shall be available for use by the President for assist-
23 ante authorized by this Act in accordance with the provisions
24 applicable to the furnishing of such assistance. Such funds
25 are authorized to remain available until expended.
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1 (b), The- President shall keep the Committee M Foreign
2 Relations and the Committee on Appropriations of the Senate
3 and the Speaker of the House of Representatives currently
4 informed on the programing and obligation of funds under
5 subsection (a).
6 . "(c) (1) Prior to obligating any amount in excess of
7 >, ,000,00'0 , from funds made available under this section,
8 the President shall transmit a written report to the Speaker
,9 Of,. the House of Representatives and the Committee on For-
10 eign...Relations of the Senate on the% same day giving a
11 complete explanation with respect to such% proposed obligation.
12 T ach report. shall include an explanation relating to only
13 one, proposed obligation.
14.. "-`(2) (A) The President, may make such obligation
15 thirty clays after the report has been * so transmitted unless,
16 before the end-of the first period of thirty calendar days of
17 . continuous. session of Congress after the date on which the
18 report is transmitted, either House adopts a resolution disap-
19 proving the proposed obligation with respect to which the
20 report is made.
211, : "(B) For purposes of subparagraph (A) of this para-
22 graph-
23 . ` :`.(i) the continuity of a session is broken only by
24 an adjournment of the Congress sine die; and
25," (ii) the clays on which either House is not in
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1 session because of an adjournment of more than three
2 days to a day certain are excluded in the computation
3 of the thirty-day period.
4 "(3) Paragraphs (4) through (11) of this subsection
5 are enacted by Congress-
6 "(A) as an exercise of the ru ..lemnaking power of the
7 Senate and the house of Representatives, respectively,
8 and as such they are deemed a part of the rules of each
9 House, respectively, but applicable only with respect to
10 the procedure to be followed in the house in the case of
11 resolutions described by this subsection; and they super-
1.2 cede other rules only to the extent that they are inconsist-
13 ern, therewith; and
14 "(P) with full recognition of the constitutional right
,15 of either house to change the rules (so far as relating
.16 to the procedure of that house) at any time, in the same
17 manner, and to the same extent as in the case of any
1.8 other rule of that house.
19 "(4) For purposes of paragraphs (2) through (11)
20 of this subsection, `resolution' means only a resolution of
21 either house of Congress, the matter after the resolving
22 clause of which is as follows: `That the. does
23 not approve the obligation for and explained in
24 the report transmitted to Congress by the President on
25 , 19 .', the first blank space therein being filled
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1 with the name of the resolving House, the second blank space
2 therein being filled with the name of the foreign country or
3 organization on whose !behalf the obligation is to be incurred,
4 and the. other blank spaces therein being appropriately filled
5 with the date of the transmittal of the report; but does not
6 include a resolution specifying more than one proposed
7 obligation.
"(5) If the committee, to which has been referred a
resolution disapproving a proposed obligation, has not re-
10 ported the resolution at the end of ten calendar days after its
11 introduction, it is in order to move either to discharge the
12 committee from further consideration of the resolution or to
3 discharge the committee from further consideration of any
14 other resolution with respect to the same obligation which
15 has been referred to the committee.
16 "(6) A motion to discharge may be made only by an
17 individual favoring the resolution, is highly privileged (except
18 that it may not be made after the committee has reported a
19 resolution with respect to the same proposed obligation), and
20 debate thereon is limited to not more, than one hour, to be
21 divided equally between those favoring and.those opposing the
22 resolution. An amendment to the motion is not in order, and
23 it is not in order to move to reconsider the vote by which the
24 motion is agreed to or disagreed to.
25 "(7) If the motion to discharge is agreed to, or dis-
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1 agreed to, the motion may not be renewed, nor may another
2 motion to discharge the committee be made with respect to
3 any other resolution with respect to the same obligation.
4 "(8) When the committee has reported, or has been dis-
5 charged from further consideration of, a resolution with
6 respect to an obligation, it is at any time thereafter in
7 order (even though a previous motion to the same effect has-
8 been disagreed to) to move to proceed to the consideration
9 of the resolution. The motion is highly privileged and is not
10 debatable. An amendment to the motion is not in order, and
11 it not in order to move to reconsider the vote by which the
12 motion is agreed to or disagreed to.
1.3 "(9) Debate on the resolution is limited to not more than
14 two hours, to be divided equally between those favoring and
15 thos tl
o
o
l 1
i
pp
U
sitg s reso u on. mot. on further to limat debate
is not debatable. An amendment to, or motion to recommit,
the resolution is not in order, and it is not in order to move to
18 reconsider the vote by which the resolution is agreed to or
19
20
22
25
disagreed to.
"(10) Motions to postpone, made with . respect to the
discharge from committee, or the consideration of, a resolu-
tion with respect to an obligation, and motions to proceed to
the consideration of other business, are decided without
debate.
"(11) Appeals from the decisions of the Chair relating
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1 to the application of the rules of the Senate or the House of
2 Representatives, as the case may be, to the procedure relating
3 to a resolution with respect to an obligation are decided with-
4 out debate.
5 (b) Section 620 (p) of such Act is repealed.
6 FOREIGN MMII T,I T. i RY SALES ACT AMENDMENTS
7 SEC. 29. The Foreign Military Sales Act is amended
8 as follows:
9 (1) Section 3 (d) is amended to read as follows:
10 "(d) A country shall remain ineligible in accordance
11 with subsection (c) of this section until such time as the
12 President determines that such violation has ceased, that the
13 country concerned has given assurances satisfactory to the
14 President that such violation will not recur, and that, if such
15 violation involved the transfer of sophisticated weapons with-
16 out the consent of the President, such weapons have been
17 returned to the country concerned."
18 (2) Section 22 is amended by adding at the end
19 thereof the following new subsection :
20 "(c) No sales of defense articles shall be made to the
21 government of any economically developed country under the
22 provisions of this. section if such articles are generally
23 available for purchase by such country from commercial
24 sources in the United States."
25 (3) Section 23 is amended to read as follows:
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1 "SE, c. 23. CREDIT SALES.-The President is authorized
2 to finance procurements of defense articles and defense serv-
3 ices by friendly foreign countries and international organiza-
4 Lions on terms requiring the payment to the United States
5 Government in United States dollars of-
6 "(1) the value of such articles or services within a
7 period not to exceed ten years after the delivery of such
8 articles or the rendering of such services; and
9 "(2) interest on the unpaid balance of that obliga-
10 tion for payment of the value of such articles or services,
_11 at a rate equivalent to the current average interest rate,
1.2 as of the last day of the month preceding the financing
13 of such procurement, that the United States Government
14 pays on outstanding marketable obligations of compara-
15 ble maturity, unless the President certifies to Con-
16 gress that the national interest requires a lesser rate of
17 interest and states in the certification the lesser rate so
18 required and the justification therefor."
19 (4) In subsections (a) and (b) of section 24, the
20 parenthetical phrase in each is amended to read as
2t follows: "(excluding United States Government agencies
22 other than the Federal Financing Bank) ".
23 (5) Section 24 is amended by adding at the end
24 thereof the following:
25 "(d) The President may guarantee under this section
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1 only those payments for any defense article or defense service
2 which are due within ten years a f ter that defense article is
3 delivered or that defense service is rendered, except that such
4 guaranty may be made for not more than twenty years if the
5 President certifies to Congress that the national interest re-
6 quires that the period of guaranty be longer than ten years,
7 and states in the certification the country or international
8 organization on whose behalf the guaranty is to be made,
9 the period of the guaranty, and the justification for the. longer
10 period."
11 (6) In section 31-
12 (A) in subsection (a), strike out "$325,000,-
13 000 for the fiscal year 1974" and insert in lieu
14 thereof "$455,000,000 for the fiscal year 1975";
15 and
16 (B) in subsection (b)-
17 (i) strike out "$730,000,0,00 for the fiscal
year 1974" and insert in lieu thereof "$872,-
19 500,000 for the fiscal year 1975"; and
20 (ii) add at the end thereof the following
21 new sentence: "Of the funds made available
22 under subsection (a) of this section, $100,
23 000,000 shall first be obligated with respect to
24 , financing the procurement. o f defense articles
25 . and defense services. by Israel under section 23
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1 of this Act, except that Israel shall be released
2 from contractual liability to repay the United
3 States Government for the defense articles and
4 defense services so financed."
5 POLITICAL PRISONERS
6 SEC. 30. Section 32 of the Foreign Assistance Act of
7 1973 is amended by adding at the end thereof the following
8 new sentence: "Commencing with respect to 1974, the Presi-
9 dent shall submit annually to the Speaker of the House of
10 Representatives and the Committee on Foreign Relations of
11 the Senate a written report setting forth fully the steps he has
12 taken to carry out this section."
13 GORGAS MEMORIAL INSTITUTE
1.4 Sec. 31. The first section of the Act entitled "An Act to
1.5 authorize a permanent annual appropriation for the mainte-
1.6 nance and operation of the
Gorgas Memorial", approved
17 May 7, 1928, as amended (22 U.S.C. 278), is amended by
18 striking out "$500,000" and inserting in lieu thereof "$1,-
19 000,000".
20 INTERNATIONAL COMMISSION OF CONTROL AND
21 SUPERVISION IN VIETNAM
22 Sec. 32. (a) There are authorized to be appropriated to
23 the Department of State for fiscal year 1975 not to exceed
24 $16,526,000 for payments by the United States to help meet
2 5 expenses of the International Commission of Control and
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1 Supervision in Vietnam. Funds appropriated under this sub-
2 section are authorized to be made available for reimburse-
3 ment to the Agency for International Development of
4 amounts expended by the Agency during fiscal year 1975 as
5 interim United States payments to help meet expenses of the
6 International Commission of Control and Supervision.
7 (b) There are authorized to be appropriated to the 1)e-
8 partment of State not to exceed $11,200,000 for reimburse-
9 ment to the Agency for International Development of
10 amounts expended by the Agency for International Develop-
11 went to help meet expenses of the International Commission
12 on Control and Supervision in fiscal year 1974.
13 (c) Reimbursements received by the Agency for Interna-
14 tional Development under this section may be credited to ap-
15 plicable appropriations of the Agency and shall be available
16 for the purposes for which such appropriations are author-
17 ized to be used during fiscal year 1975.
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