Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1696583018483.pdf (United States)
PUBLIC LAW 95-424—OCT.

6, 1978 92 STAT.

937 Public Law 95-424 95th Congress An Act To amend the Foreign Assistance Act of 196i to authorize development and economic assistance programs for fiscal year 1979, to make certain changes in the authorities of that Act and the Agricultural Trade Development and Assistance Act of 1954, to improve the coordination and administration of United States development-related policies and programs, and for other purposes.

Oct. 6.

1978 [H.R.
Oct. 6.

1978 [H.R.

12222] Be it enacted hy the Senate and House of RepreseTitatives of the United States of America in Congress assembled^ , ., SHORT TITLE SECTION 1.

This Act may be cited as the "International Development and Food Assistance Act of 1978".

International Development and Food Assistance Act of 1978.

22 u se 2151 note.

TITLE I—DEVELOPMENT ASSISTANCE DEVELOPMENT ASSISTANCE POLICY SEC.

101.
101.

Chapter 1 of p a rt I of the Foreign Assistance Act of 1961 is amended by striking out section 102 and inserting in lieu thereof the 22 USC 2151. following new sections: " S E C. 101.

GENERAL POLICY.— (a) The Congress finds t h at funda mental political, economic, and technological changes have resulted in the interdependence of nations.
T he Congress declares t h at the individual liberties, economic prosperity, and security of the people of the United States are best sustained and enhanced in a community of nations which respect individual civil and economic rights and freedoms and which work together to use wisely the world's limited resources in an open and equitable international economic system.
the traditional humanitarian Furthermore, ideals of the American people and renews its commitment to assist people in developing countries to eliminate hunger, poverty, illness, and the Congress reaffirms ignorance.
"Therefore, the Congress declares that a principal objective of the foreign policy of the Ignited States is the encouragement and sustained support of the people of developing countries in their efforts to acquire the knowledge and resources essential to development and to build the economic, political, and social institutions which will improve the quality of their lives.
"United States development cooperation policy should emphasize four principal goals: " ( 1) the alleviation of the worst physical manifestations of poverty among the world's poor majority; " ( 2) the promotion of conditions enabling developing countries to achieve self-sustaining economic growth with equitable dis tribution of benefits; " ( 3) the encouragement of development processes in which individual civil and economic rights are respected and enhanced; and " ( 4) the integration of the developing countries into an open and equitable international economic system.
92 STAT.

938 PUBLIC LAW 95-424—OCT.

6, 1978 22 use 2151-1.

"The Congress declares that pursuit of these goals requires that development concerns be fully reflected in United States foreign policy and that United States development resources be effectively and efficiently utilized.

"(b) Lender the policy guidance of the Secretary of State, the agency primarily responsible for administering this part should have the responsibility for coordinating all United States development-related activities.

"SEC.
"SEC.

102.

DEVELOPMENT ASSISTANCE POLICY.— (a) The Congress finds that the efforts of developing countries to build and maintain the social and economic institutions necessary to achieve self-sustaining grovt^th and to provide opportunities to improve the quality of life for their people depend primarily upon successfully marshalling their own economic and human resources.
The Congress recognizes that the magnitude of these efforts exceeds the resources of developing countries and therefore accepts that there will be a long-term need for wealthy countries to contribute additional resources for development purposes.

The United States should take the lead in concert with other nations to mobilize such resources from public and private sources.

"Provision of development resources must be adapted to the needs and capabilities of specific developing countries.
United States assist ance to countries with low per capita incomes which have limited access to private external resources should primarily be provided on concessional terms.
Assistance to other developing countries should generally consist of programs which facilitate their access to private capital markets, investment, and technical skills, whether directly through guarantee or reimbursable programs by the United States Government or indirectly through callable capital provided to the international financial institutions.
"Bilateral assistance and United States participation in multilateral institutions shall emphasize programs in support of countries which pursue development strategies designed to meet basic human needs and achieve self-sustaining growth with equity.
"The Congress declares that the principal purpose of United States bilateral development assistance is to help the poor majority of people in developing countries to participate in a process of equitable growth through productive work and to influence decisions that shape their lives, with the goal of increasing their incomes and their access to pub lic services which will enable them to satisfy their basic needs and lead lives of decency, dignity, and hope.
Activities shall be emphasized that effectively involve the poor in development by expanding their access to the economy through services and institutions at the local level, increasing their participation in the making of decisions that affect their lives, increasing labor-intensive production and the use of appropriate technology, expanding productive investment and services out from major cities to small towns and rural areas, and otherwise providing opportunities for the poor to improve their lives through their own efforts.
Participation of the United States in multilateral institutions shall also place appropriate emphasis on these principles.

"(b) Assistance under this chapter should be used not only for the purpose of transferring financial resources to developing countries, but also to help countries solve development problems in accordance with a strategy that aims to insure wide participation of the poor in the benefits of development on a sustained basis.
Moreover, assistance shall be provided in a prompt and effective manner, using appropriate PUBLIC LAW 95-424—OCT.

6, 1978 92 STAT.

939 United States institutions for carrying out this strategy.

In order to achieve these objectives and the broad objectives set forth in section 101 and in subsection (a) of this section, bilateral development assist ance authorized by this Act shall be carried out in accordance with the following principles: Bilateral assistance, guidelines.
"(1) Development is primarily the responsibility of the people of the developing countries themselves.

Assistance from the United States shall be used in support of, rather than substitution for, the self-help efforts that are essential to successful development programs and shall be concentrated in those countries that take positive steps to help themselves.
Maximum effort shall be made, in the administration of this part, to stinmlate the involvement of the people in the development process through the encourage ment of democratic participation in private and local govern mental activities and institution building appropriate to the requirements of the recipient countries.

"(2) Development planning must be the responsibility of each sovereign country.
United States assistance should be adminis tered in a collaborative style to support the development goals chosen by each country receiving assistance.
"(3) United States bilateral development assistance should give high priority to undertakings submitted by host governments which directly improve the lives of the poorest of their people and tl.eir capacity to participate in the development of their coun tries, while also helping such governments enhance their planning, technical, and administrative capabilities needed to insure the success of such undertakings.
"(4) Development assistance provided under this chapter shall be concentrated in countries which will make the most effective use of such assistance to help satisfy basic human needs of poor people through equitable growth, especially in those countries having the greatest need for outside assistance.
In order to make possible consistent and informed judgments in this respect, the President shall assess the commitment and progress of countries in moving toward the objectives and purposes of this chapter by utilizing criteria, including but not limited to the following: "(A) increase in agricultural productivity per unit of land through small-farm, labor-intensive agriculture; "(B) reduction of infant mortality; "(C) control of population growth; "(D) promotion of greater equality of income distribution, including measures such as more progressive taxation and more equitable returns to small farmers; " ( E) reduction of rates of unemployment and underem ployment ; and " ( F) increase in literacy.
"(5) United States development assistance should focus on critical problems in those functional sectors which affect the lives of the majority of the people in the developing countries; food production and nutrition; rural development and generation of gainful employment; population planning and health; environ ment and natural resources; and education, development admin istration, and human resource development.
"(6) United States assistance shall encourage and promote the participation of women in the national economies of developing 39-194 O—80—pt.

1 63 : QL3 92 STAT.

940 PUBLIC LAW 95-424—OCT.

6, 1978 countries and the improvement of women's status as an important means of promoting the total development effort.
"(7) United States bilateral assistance shall recognize that the prosperity of developing countries and effective development efforts require the adoption of an overall strategy that promotes efficient utilization of energy and, therefore, consideration shall be given to the full implications of such assistance on the price, availability, and consumption of energy in recipient countries.
"(8) United States cooperation in development should be carried out to the maximum extent possible through the private sector, including those institutions which already have ties in the developing areas, such as educational institutions, cooperatives, credit unions, free labor unions, and private and voluntary agencies. "

(9) To the maximum extent practicable, United States private investment should be encouraged in economic and social devel opment programs to which the United States lends support.
"(10) Assistance shall be planned and utilized to encourage regional cooperation by developing countries in the solution of common problems and the development of shared rcvsources.

"(11) Assistance efforts of the United States shall be planned and furnished to the maximum extent practicable in coordination and cooperation with assistance efforts of other countries, includ ing the planning and implementation of programs and projects on a multilateral and multidonor basis.
"(12) United States bilateral development assistance should be concentrated on projects which do not involve large-scale capital transfers.

However, to the extent that such assistance does involve large-scale capital transfers, it should be furnished in association with contributions from other countries working together in a multilateral framework.
"(c) The Congress, recognizing the desirability of overcoming the worst aspects of absolute poverty by the end of this century by, among other measures, substantially lowering infant mortality and birth rates, and increasing life expectancy, food production, literacy, and employment, encourages the President to explore with other coun tries, through all appropriate channels, the feasibility of a worldwide cooperative effort to overcome the worst aspects of absolute poverty and to assure self-reliant growth in the developing countries by the year 2000.".
DEVELOPMENT ASSISTANCE AUTHORITIES Presidential authority.

22 use 2151t.

22 use 2161.

SEC.

102.

(a) Chapter 1 of part I of the Foreign Assistance Act of 1961 is amended by adding at the end thereof the following': "SEC.

122.
122.

GENERAL AUTHORITIES.— (a) In order to carry out the purposes of this chapter, the President is authorized to furnish assist ance, on such terms and conditions as he may determine, to countries and areas through programs of grant and loan assistance, bilaterally or through regional, multilateral, or private entities.".
(b)(1) Part I of such Act is further amended— (A) by striking out "less developed friendly" in the first sen tence in subsection (b) of section 201; (B) by striking out everything after the first sentence in sub section (b) of section 201 through "herein) be loaned" in subsec tion (d) of such section and inserting in lieu thereof the following: PUBLIC LAW 9 5 - 4 2 4 — O C T. 6, 1 9 78 92 STAT.

9 41 " T he President shall determine the interest payable on any loan.
In making loans under this chapter, t he President shall consider t he economic circumstances of the borrower a nd other relevant factors, including the capacity of the recipient country to repay the loan at a reasonable rate of interest, except that loans m ay not be m a d e "; a nd (C) by inserting subsection ( b) of section 201, as amended by immediately s u b p a r a g r a p hs ( A) a nd ( B) of this p a r a g r a p h, after section 1 2 2 ( a ), as added by subsection ( a) of this section.
(2) ( A) Section 301(a) of such A ct is amended by striking o ut 22USC2221.

"201 ( d )" and inserting in lieu thereof "122 ( b ) ".

( B) Section 103(b) of the Agricultural T r a de Development a nd Assistance A ct of 1954 is amended by striking out " 2 0 1" and inserting 7 USC 1703. in lieu thereof "122".
( C) Section 106(a) of t he Agricultural T r a de Development a nd Assistance A ct of 1954 is amended in the second sentence by striking 7 USC 1706. out " 2 0 1" and inserting in lieu thereof " 1 2 2 ( b ) ".
(c) (1) Section 122 of the Foreign Assistance Act of 1961, as added by subsection ( a) of this section and as amended by subsection (b) (1) of this section, is amended by adding at the end thereof the following new subsections: " ( c) Dollar receipts paid d u r i ng any fiscal year from loans made under this p a rt or from loans made under predecessor foreign assist ance legislation shall be deposited in the Treasury as miscellaneous receipts.
-"^ '^ •''•' '- " ( d) N ot to exceed $10,000,000 of the funds made available each Funds, limitation, fiscal year for the purposes of this chapter may be used for assistance, on such terms a nd conditions as the President m ay determine, to research and educational institutions in the United States for the pur pose of strengthening their capacity to develop a nd carry out pro- g r a ms concerned with t he economic a nd social development of developing countries.".
(2) Section 299(a) of such Act is amended by striking " 1 1 0 ( b ), 211 ( a ), and 211(d) " a nd inserting in lieu thereof "110(b) and 1 2 2 ( d ) ".

(d) P a rt I of such Act is further amended— (1) in section 204— ( A) by s t r i k i ng out " S E C. 204.
DEVELOPMENT L O AN C O M MITTEE.—" a nd inserting in lieu thereof " ( e ) "; a nd ( B) by striking out " t i t l e" a nd inserting in lieu thereof " c h a p t e r "; and (2) by inserting such section, as so redesignated a nd amended, at t he end of section 122, as added a nd amended by subsections ( a) t h r o u gh (c) of this section.
(e) C h a p t er 1 of p a rt I of such Act, as amended by subsections ( a) t h r o u gh ( d) of this section, is further amended by adding at t he end thereof the following new section: " S E C. 123.

PRIVATE AND VOLUNTARY ORGANIZATIONS AND COOPERA TIVES IN OVERSEAS D E V E L O P M E N T .
— ( a) T he Congress finds t h at t he participation of r u r al a nd urban poor people in their countries' development can be assisted a nd accelerated in an effective manner through an increase in activities planned a nd carried out by private and voluntary organizations a nd cooperatives.
Such organizations a nd cooperatives, embodying t he American spirit of self-help a nd assistance to others to improve their lives a nd incomes, constitute an important means of mobilizing private American financial and h u m an ' 22 USC 2220d.

22 USC 2164.

Private and voluntary organizations.

22 USC 2151u.

92 STAT.

942 PUBLIC LAW 95-424—OCT.

6, 1978 resources to benefit poor people in developing countries.
The Congress declares t h at it is in the interest of the United States that such orga nizations and cooperatives expand their overseas devclopmen*: efforts without compromising their private a nd independent nature.

T he Congress further declares that the financial resources of such orga nizations and cooperatives should be supplemented by the contribution of public funds for the purpose of undertaking development activities in accordance with the principles set forth in section 102.
T he Congress urges the Administrator of the agency primarily responsible for administering this part, in implementing programs authorized imder this part, to draw on the resource of private and voluntary organiza tions and cooperatives to plan and carry out development activities, " ( b) In order to further the efficient use of United States voluntary contributions for development, relief, a nd rehabilitation of friendly peoples, the President is authorized to use funds made available for the purposes of this chapter to p ay transportation charges on ship ments by the American National Red Cross and by United States vol u n t a ry agencies registered with the Advisory Committee on Voluntary Foreign Aid. "
(c) Reimbursement under this section mav be provided for trans portation charges on shipments from United States ports, or in the case of excess or surplus property supplied by the United States from foreign ports, to ports of entry abroad or to points of entry abroad in cases (1) of landlocked countries, (2) where ports cannot be used effec tively because of natural or other disturbances, (3) where carriers to a specified country are unavailable, or (4) where a substantial savings in costs or time can be effected by the utilization of points of entry other than ports. "
( d) Where practicable, t he President shall make arrangements with the receiving country for free entry of such shipments and for the making available by the country of local currencies for the purpose of defraying the transportation costs of such shipments from the port or point of entry of t he receiving country to the designated shipping point of the consignee.".

(f) Section 115 of such Act is repealed.
fg) (1) Chapter 2 of part I of such Act, as amended by this section, is further amended— (A) by repealing title I (except sections 206 and 209), title II except sections 214 a nd 219), title V I, title V I I, a nd title V I I I; (B) by amending the chapter heading to read as follows: " C H A P T ER 2 — O T H ER PROGRAMS" ; (C) by inserting t he following new title heading immediately before section 206: "TITLE I—MULTILATERAL AND REGIONAL DEVEL OPMENT PROGRAMS" ; a nd ( D) by inserting the following new title heading immediately before section 214: "TITLE II—AMERICAN SCHOOLS AND HOSPITALS ABROAD ; PROTOTYPE DESALTING PLANT".
(2) ( A) Section 281 of such Act is amended by inserting "and chap ter 1" immediately after "this chapter" each of the four places it appears.

( B) Section 601 (b) (5) of such Act is amended by striking out " 2 0 1" and inserting in lieu thereof "122".

(C) Section 608(a) of such Act is amended by striking out "sec tion 212" and inserting in lieu thereof "chapter 1 of p a rt I ".

Ante, p. 938.

Reimbursement.

Transportation costs, defraying of.

Repeal.

22 u se 2151m.

Repeal.


22 u se 2161, 2162, 2164, 2167, 2168, 2171, 2172, 2175, 2176-2178, 2180, 2180a, 2211-2213, 2216-2217a.

22 u se 2166.

22 u se 2174.

22 u se 2218.

22 u se 2351.

22 u se 2358.

PUBLIC LAW 95-424—OCT.

6, 1978 92 STAT.

943 (D) Section 611(a) of such Act is amended by striking out ^'titles 22 USe 2361 I, I I, and VI of chapter 2 and chapter 4 of part I" and inserting in lieu thereof "chapter 1 of part I, title II of chapter 2 of part I, or chapter 4 of part I I ".
(E) Section 611(e) of such Act is amended by striking out "titles I, I I, or VI of chapter 2 or chapter 4 of part I of this Act" and insert ing in lieu thereof "chapter 1 of part I, title II of chapter 2 of part I, or chapter 4 of part I I ".

(F) Section 620(d) of such Act is amended by striking out "under section 201" and inserting in lieu thereof "on a loan basis under chap ter 1 of part I".
(G) Section 635(h) of such Act is amended by striking out "titles II, V, and VI (except development loans)" and inserting in lieu thereof "chapter 1 (except development loans) and title I I ".

22 use 2370.

22 use 2395.

(H) Section 636(c) of such Act is amended by striking out " (other 22 USe 2396, than title I of chapter 2 of part I )" both places it appears.

(I) Section 636 (d) and (e) of such Act are each amended by strik ing out " (other than title I of chapter 2 of part I ) ".
(J) Section 636(f) of such Act is amended— (i) by strikmg out "section 212" and inserting in lieu thereof "chapter 1 of part I "; and thereof "chapter 1".

(ii) by striking out "title I of chapter 2" and inserting in lieu (K) (i) Section 108 of such Act is repealed.

(ii) Section 109 of such Act is amended by striking out "Notwith standing section 108 of this Act, whenever" and inserting in lieu thereof "Whenever".

AGRICULTURE, RURAL DEVELOPMENT, AND NUTRITION SEC.

103.
103.

(a) Section 103 of the Foreign Assistance Act of 1961 is amended to read as follows: "SEC.

103.
AGRICULTURE, RURAL DEVELOPMENT, AND NUTRITION.— (a) (1) In recognition of the fact that the great majority of the peo ple of developing countries live in rural areas and are dependent on agriculture and agricultural-related pursuits for their livelihood, the President is authorized to furnish assistance, on such terms and condi tions as he may determine, for agriculture, rural development, and nutrition— "(A) to alleviate starvation, hunger, and malnutrition; "(B) to expand significantly the provision of basic services to rural poor people to enhance their capacity for self-help; and "(C) to help create productive farm and off-farm employment in rural areas to provide a more viaible economic base and enhance opportunities for improved incomes, living standards, and contri butions by rural poor people to the economic and social develop ment of their countries.
"(2) There is authorized to be appropriated to the President for purposes of this section, in addition to funds otherwise available for such purposes, $665,231,000 for the fiscal year 1979.

Amounts appro priated under this section are authorized to remain available until expended.

"(b) (1) Assistance provided under this section shall be used pri marily for activities which are specifically designed to increase the productivity and income of the rural poor, through such means as Repeal.

22 u se 2151f.
22 u se 2151f.

22 u se 2151g.

22 u se 2151a.

Presidential authority.

Appropriation authorization.

92 STAT.

944 PUBLIC LAW 95-424—OCT.

6, 1978 '"* ' Infrastructure projects.

^ Nutrition.
Post, p. 9450. creation and strengthening of local institutions linked to the regional and national levels; organization of a system of financ'al institutions which provide both savings and credit services to the poor; stimulation of small, labor-intensive enterprises in rural towns; improvement of marketing facilities and systems; expansion of rural infrastructure and utilities such as farm-to-market roads, water managernent systems, land improvement, energy, and storage facilities; establishment of more equitable and more secure land tenure arrangements; and creation and strengthening of systems to provide other services and supplies needed by farmers, such as extension, research, training, fertilizer, water, forestry, soil conservation, and improved seed, in Avays which assure access to them by small farmers.
"(2) In circumstances where development of major infrastructure is necessary to achieve the objectives set forth in this section, assist ance for that purpose should be furnished under this chapter in asso ciation with significant contributions from other countries working together in a multilateral framework.

Infrastructure projects so assisted should be complemented by other measures to ensure that the benefits of the infrastructure reach the poor.
"(c) The Congress finds that the greatest potential for significantly expanding availability of food for people in rural areas and augment ing world food production at relatively low cost lies in increasing the productivity of small farmers who constitute a majority of the agricultural producers in developing countries.
Incresising the empha sis on rural development and expanded food production in the poor- est nations of the developing world is a matter of social justice and a principal element contributing to broadly based economic growth, as well as an impoilant factor in alleviating inflation in the industrial ized countries.
In the allocation of funds under this section, special attention shall be given to increasing agricultural production in coun tries which have been designated as 'least developed' by the United Nations General Assembly.
"(d) Assistance provided under this section shall also be used in coordination with programs carried out under section 104 to help improve nutrition of the people of developing countries through encouragement of increased production of crops with greater nutri tional value; improvement of planning, research, and education with respect to nutrition, particularly with reference to improvement and expanded use of indigenously produced foodstuffs; and the undertak ing of pilot or demonstration programs explicitly addressing the problem of malnutrition of poor and vulnerable people.
In particular, the President is encouraged— "(1) to devise and carry out in partnership with developing countries a strategy for programs of nutrition and health improvement for mothers and children, including breast feeding; and "(2) to provide technical, financial, and material support to individuals or groups at the local level for such programs.

"(e) Local currency proceeds from sales of commodities provided under the Agricultural Trade Development and Assistance Act of 7 use 1691 note.
1954 which are owned by foreign governments shall be used whenever practicable to carry out the provisions of this section.".

22 use 2403.

(b) Section 644 of the Foreign Assistance Act of 1961 is amended by adding at the end thereof the following: PUBLIC LAW 95-424—OCT.

6, 1 9 78 92 STAT.

9 45 " (o) " ( p) 'Agriculture' includes aquaculture and fisheries, ' F a r m e r s' includes fishermen and other persons employed in cultivating and harvesting food resources from salt and fresh waters.".
(c) Sections 117 and 296 (f) a nd ( g) of such A ct are repealed.

(d) Section 103A of such A ct is amended by inserting "environ immediately after "social," in clause (2) of t he first mental," sentence.

POVULATION AND I I E A I / ni Repeal.

22 u se 2151o, 2220a.

22 u se 2151a-l. SEC.

104.

( a) Section 104 of t he F o r e i ^i Assistance A ct of 1961 is 22 u se 2151b.

amended to read as follows: " S E C. 104.

POPULATION AND H E A L T H .— ( a) F I N D I N G S .
— T he Congress recognizes that, poor health conditions and uncontrolled population growth can vitiate otherwise successful development efforts. "

L a r ge families in developing countries are t he result of complex social and economic factors which change relatively slowly among the poor majority least affected by economic progress, as well as t he result of a lack of effective b i r th control.
Therefore, effective family p l a n n i ng depends upon economic a nd social change as well as t he deliveiy of services and is often a matter of political and religious sensitivity.

While every coimtiy h as t he r i g ht to determine its own policies with respect to population growth, voluntary population planning progi-ams can make a substantial contribution to economic living standards, a nd improved health and development, higher nutrition.
"Good health conditions are a principal element in improved quality of life and contribute to the individual's capacity to participate in t he development process, while poor health a nd debilitating disease can limit productivity. "

( b) ASSISTANCE FOR POPULATION P L A N N I N G .


— In order to increase the opportunities a nd motivation for family planning a nd to reduce the rate of population gi'owth, t he President is authorized to furnish assistance, on such terms a nd conditions as he may determine, for voluntary population planning.
In addition to the provision of family planning information and services and the conduct of directly relevant demographic research, population planning programs shall emphasize motivation for small families. "

(c) ASSISTANCE FOR H E A L TH AND DISEASE P R E V E N T I O N .
— In order to contribute to improvements in the health of the greatest number of poor people in developing countries, the President is authorized to furnish assistance, on such terms and conditions as he may determine, for health programs.

Assistance under this subsection shall be used primarily for basic integrated health services, safe water a nd sanita tion, disease prevention and control, a nd related health planning a nd research.
This assistance shall emphasize self-sustaining community- based liealth programs by means such as training of health auxiliary and otheT- appropi-iate personnel, support for t he establishment anci evaluation of projects t h at can be replicated on a broader scale, meas ures to improve management of health programs, and other services and supplies to support health and disease prevention programs. "
( d) INTEGRATION or ASSISTANCE PROGRAMS.— (1) Assistance u n d er this chapter shall be administered so as to give particular attention to t he interrelationship between ( A) population growth, and ( B) development and overall improvement in living standards in devel oping countries, and to t he impact of all programs, projects, a nd Population planning assistance, presidential authority.

Health programs, presidential authority.

92 STAT.

9 46 PUBLIC LAW 95-424—OCT.

6, 1978 Ante, p. 943.


Health and population research and analysis.

Presidential study, authorization.

Funds, prohibited use.

activities on population growth.
A ll a p p r o p r i a te activities proposed for financing under this chapter shall be designed to build motivation for smaller families through modification of economic and social con ditions supportive of t he desire for large families, in p r o g r a ms such as education in and out of school, nutrition, disease control, maternal and child health services, improvements in the status and employment of women, agricultural production, rural development, and assistance to the urban poor.
Population p l a n n i ng p r o g r a ms shall be coordinated with other programs aimed at reducing the infant mortality rate, pro viding better nutrition for pregnant women and infants, a nd raising the standard of living of the poor. "

( 2) Since the problems of malnutrition, disease, and rapid popu lation growth are closely related, planning for assistance to be pro vided under subsections (b) and (c) of this section and under section 103 shall be coordinated to the maximum extent practicable. "
( 3) Assistance provided under this section shall emphasize low-cost integrated delivery systems for health, nutrition, and family planning for the poorest people, with particular attention to the needs of mothers and young children, using paramedical and auxiliary medical personnel, clinics a nd health posts, commercial distribution systems, and other modes of community outreach. "
( e) RESEARCH AND A N A L Y S I S .— (1) H e a l th and population research and analysis carried out under this Act shall— " ( A) be undertaken to the maximum extent practicable in developing countries by developing country personnel, linked as appropriate with private and governmental biomedical research facilities within the United S t a t e s; " ( B) take account of t he special needs of t he poor people of developing countries in the determination of research priorities; and " ( C) make extensive use of field testing to a d a pt basic research to local conditions. "
(2) The President is authorized to study the complex factors affect ing population growth in developing countries and to identify factors which might motivate people to plan family size or to space their children. "

( f) PROHIBITION ON L^SE OF F U N DS FOR ABORTIONS AND INVOLUN TARY STERILIZATIONS.— (1) None of the funds made available to carry out this part may be used to pay for the performance of abortions as a method of family planning or to motivate or coerce a ny person to practice abortions. "
( 2) None of t he funds made available to carry out this p a rt m ay be used to p ay for t he performance of involuntary sterilizations as a method of family planning or to coerce or provide a ny financial incentive to any person to undergo sterilizations. "
( g) AUTHORIZATION OF APPROPRIATIONS.—There a re authorized to be appropriated to the President, in addition to funds otherwise avail able for such purposes— " ( 1) $224,745,000 for the fiscal year 1979 to carry out subsection (b) of this section; and " ( 2) $148,494,000 for t he fiscal year 1979 to carry out subsec tion (c) of this section.

F u n ds appropriated under this subsection a re authorized to remain available until expended.".

PUBLIC LAW 95-424—OCT.

6, 1978 92 STAT.


947 (b) Section 114 and title X of chapter 2 of p a rt I of such Act are repealed.

EDUCATION AND H U M AN RESOURCES DEVELOPMENT SEC.

105.

Section 105(a) of the Foreign Assistance A ct of 1961 is amended in the second sentence by striking out "$101,800,000 for t he fiscal year 1977 and $84,900,000 for the fiscal year 1978, which amounts are" a nd inserting in lieu thereof "$109,036,000 for t he fiscal year 1979, which amount is".

Repeal.
Repeal.

22 u se 2151/, 2219, 2219a.

22 u se 2151c.

TECHNICAL ASSISTANCE, ENERGY, RESEARCH, RECONSTRUCTION, AND SELECTED DEVELOPMENT PROBLEMS SEC.

106.

Section 106(b) of t he Foreign Assistance A ct of 1961 is 22 USe 2151(1. amended in t he first sentence by striking out "$104,500,000 for t he fiscal year 1977 a nd $105,000,000 for the fiscal year 1978, which amounts are" a nd inserting in lieu thereof "$126,244,000 for t he fiscal year 1979, which amount is".

APPROPRIATE TECHNOLOGY SEC.

107.


Section 107 of the Foreign Assistance Act of 1961 is 22 USe 2151e.

amended to read as follows: " S E C. 107.

APPROPRIATE TECHNOLOGY.— ( a) In c a r r y i ng out activities under this chapter, the President shall place special emphasis on t he use of relatively smaller, cost-saving, labor-using technologies t h at are generally most a p p r o p r i a te for the small farms, small businesses, a nd small incomes of t he poor. "
(b) F u n ds made available to carry out this chapter should be used to the extent practicable for activities in the field of a p p r o p r i a te tech- nology, including support of an expanded a nd coordinated private effort to promote t he development a nd dissemination of appropriate technology in developing countries.".

^ ,,- - ; ;, , ,,; WOMEN IN DEVELOPMENT SEC.

108.

Section 113 of the Foreign Assistance A ct of 1961 is 22 USC 2151k.
amended by a d d i ng at t he end thereof the following new subsection: " ( d) (1) Up to $10,000,000 of t he funds made available each fiscal Funds, use of.

year under this chapter shall be used, in addition to funds otherwise available for such purposes, for assistance on such terms a nd condi tions as the President may determine to encourage a nd promote t he participation a nd integration of women as equal partners in the devel opment process in the developing countries.
These funds shall be used primarily to support activities which will increase t he economic prod uctivity a nd income earning capacity of women. "

( 2) Nothing in this section shall be construed to authorize t he establishment of a separate development assistance p r o g r am for H U M AN R I G H TS ACTIVITIES SEC.

109.

Section 116(e) of t he Foreign Assistance A ct of 1961 is 22 u se 2151n.
amended in the first sentence— (1) by striking out "Of" a nd inserting in lieu thereof " T he t h an President is authorized a nd encouraged to use not less $1,500,000 of"; a nd 92 STAT.

948 PUBLIC LAW 95-424—OCT.

6, 1978 (2) by striking out "1978, not less t h an $750,000 may be used only" and inserting in lieu thereof "1979".

22 u se 2151p.

SEC.


110, Section 118 of the Foreign Assistance Act of 1961 is ENVIRONMENT AND NATURAL RESOURCES amended— (1) by inserting " ( a )" immediately after the section caption; and (2) by adding at the end thereof the following new subsections: " ( b) Tn carrying out programs under this chapter, the President shall take into consideration the environmental consequences of devel opment actions. "
( c) In furtherance of the purposes of this section, the President shall carry out studies to identifj^ the major environment and natural resource problems, and t he institutional capabilities to solve those problems, which exist in developing countries.

T he results of these studies shall be reported to the Congress by March 1, 1979.".

Presidential studies.

Report to Congress.

22 u se 2151q.

SEC.

111.


Section 119 of the Foreign Assistance Act of 1961 is RENEWABLE AND UNCONVENTIONAL ENERGY TECHNOLOGIES Cooperative programs.

Ante, p. 943.

Administration.

Ante, p. 947.

22 u se 2151v.

amended to read as follows: " S E C. 119.


RENEWABLE AND UNCONVENTIONAL E N E R GY TECHNOLO GIES.—(a) T he President is authorized to furnish assistance under this chapter for cooperative programs with developing countries in energy production and conservation, with particular emphasis on programs in research and development, and use of small-scale, decentralized, renewable energy sources for rural areas carried out as integral parts of rural development efforts in accordance with section 103 of this Act.
Such programs shall also be directed toward the earliest practicable development and use of energy technologies which are environmentally acceptable, require minimum capital investment, are most acceptable to and affordable by the people using them, are simple and inexpensive to use and maintain, and are transferable from one region of the world to another. "
( b) T he agency primarily responsible for administering this part shall coordinate with the Department of Energy, to the maximum extent possible, the planning and implementation of energy programs authorized under this chapter, including section 107, and shall consult with the Department of E n e r gy on such planning and implementa tion.".

RELATIVELY LEAST DEVELOPED COUNTRIES SEC.

112.


(a) (1) Chapter 1 of p a rt I of the Foreign Assistance Act of 1961, as amended by section 102 of this Act, is further amended by inserting the following new section 124 immediately after section 123: " S E C. 124.
RELATIVELY LEAST DEVELOPED COUNTRIES.— (a) Rela tively least developed countries (as determined on the basis of criteria comparable to those used for the United Nations General Assembly list of 'least developed countries') are characterized by extreme pov erty, very limited infrastracture, and limited administrative capacity to implement basic human needs growth strategies.

In such countries special measures may be necessary' to insure the full effectiveness of assistance furnished under this part.
PUBLIC LAW 95-424—OCT.

6, 1978 92 STAT.

949 " (b) For the purpose of promoting economic growth in these coun tries, the President is authorized and encouraged to make assistance under this chapter available on a grant basis to the maximiim extent that is consistent with the attainment of United States development objectives.

"(c) (1) The Congress recognizes that the relatively least developed countries have virtually no access to private international capital markets.
Insofar as possible, prior assistance terms should be consistent with present grant assistance terms for relatively least developed coun tries.
Therefore, notwithstanding section 620 (r) of this Act and sec tion 321 of the International Development and Food Assistance Act of 1975 but subject to paragraph (2) of this subsection, the President on a case-by-case basis, taking into account the needs of the country for financial resources and the commitment of the country to the devel opment objectives set forth in sections 101 and 102— "(A) may permit a relatively least developed country to place amounts, which would otherwise be paid to the United States as payments on principal or interest on liability incurred by that country under this part (or any predecessor legislation) into local currency accounts (in equivalent amounts of local currencies as determined by the official exchange rate for United States dollars) .
for use by the relatively least developed country, with the con currence of the Administrator of the agency primarily responsible for administering this part, for activities which are consistent with section 102; and ' "(B) may waive interest payments on liability incurred by a relatively least developed country under this pia-rt (or any prede cessor legislation) if the President determines that that country would be unable to use for development purposes the equivalent amounts of local currencies which could be made available under subparagraph (A).
"(2) The aggregate amount of interest waived and interest and principal paid into local currency accounts under this subsection in any fiscal year may not exceed the amount approved for such purpose in an Act appropriating funds to carry out this chapter for that fiscal year, which amount may not exceed the amount authorized to be so approved by the annual authorizing legislation for development assist ance programs.
"(3) !m exercising the authority granted by this subsection, the President should act in concert with other creditor countries.

"(d) The President may on a case-by-case basis waive the require ment of section 110(a) for financial or 'in kind' contributions in the case of programs, projects, or activities in relatively least developed countries.

"(e) Section 110(b) shall not apply with respect to grants to rela tively least developed countries.".
(2) The authority granted by section 124(c) of the Foreign Assist ance Act of 1961 shall not become effective until October 1,1979.

(b) (1) Section 110(a) of such Act is amended by striking out "and except that" and all that follows through the end of the sentence and inserting in lieu thereof a period.

(2) Section 110(b) of such Act is amended by striking out "Ex cept" and all that follows through "no" and inserting in lieu thereof "No".

Grants.

Grant assistance terms.

22 u se 2370.


22 u se 2220ia note.

Ante, p. 937.

Waiver.

22 u se 2151h.

22 u se 2151v note.

Ante, p. 948.

22 u se 2151h.

92 STAT.

950 PUBLIC LAW 95-424—OCT.

6, 1978 I'ROJECT AND PROGRAM EVALUATION SEC.

113.

Chapter 1 of part I of the Foreign Assistance Act, as amended by sections 102 and 112 of this Act, is further amended by inserting the following new section 125 immediately after section 124: "SEC.

125.
125.

PROJECT AND PROGRAM EVALUATION.— (a) The Adminis trator of the agency primarily responsible for administering this part is directed to improve the assessment and evaluation of the pro grams and projects carried out by that agency under this chapter.

The Administrator shall consult with the appropriate committees of the Congress in establishing standards for such evaluations.
"(b) The President shall report on actions taken by the interna tional financial institutions and the United Nations Development Program to improve the evaluation of projects and programs con ducted by those institutions.

The report required by this subsection shall be submitted as a part of the report required by section 634.".

AMERICAN SCHOOLS AND HOSPITALS ABROAD SEC.

114.


Section 214 of the Foreign Assistance Act of 1961 is amended— (1) in subsection (c) by striking out "for the fiscal year 1977, $25,000,000, and for the fiscal year 1978, $25,000,000, which amounts are" and inserting in lieu thereof "$25,000,000 for the fiscal year 1079, which amount is"; and (2) by striking out subsections (d) and (e) and by redesignat- ingsubsection (f) as subsection (d).

HOUSING AND OTHER CREDIT GUARANTY PROGRAMS SEC.

115.
115.

(a) Sections 221 and 222 of the Foreign Assistance Act of 1961 are amended to read as follows: "SEC.

221.

HOUSING GUARANTIES.—The Congress recognizes that shelter requirements are among the most fundamental of human needs.

Shelter for most people in the developing countries consists largely of domestic materials assembled by local labor.
While recognizing that most financing for such housing must come from domestic resources, the Congress finds that carefully designed programs involving United States capital and expertise can increase tne availability of domestic financing for improved housing and related services for low-income people by demonstrating to local entrepreneurs and institutions that providing low-cost housing can be financially viable.
The Congress reaffirms, therefore, that the United States should continue to assist developing countries in marshalling resources for low-cost housing.

Particular attention should be given to programs which will support pilot projects for low-cost shelter or which will have a maximum dem- onstration impact on local institutions and national policy.
The Con gress declares that the long run goal of all such programs should be to develop domestic construction capabilities and to stimulate local credit institutions to make available domestic capital and other management and technological resources required for effective low-cost shelter pro grams and policies.

"SEC.

222.

AUTHORIZATION.—(a) To carry out the policy of section 221, the President is authorized to issue guaranties to eligible investors Administration.

22 u se 2151w.

Presidential reports.


22 u se 2394.

Appropriation authorization.

22 use 2174.

22 use 2181.

51 : i jr ,,; 7 ir*.. 22 use 2182.

PUBLIC LAW 95-424^0CT.

6, 1978 92 STAT.


951 (as defined in section 238(c)) assuring against losses incurred in con nection with loans made for projects meeting the criteria set forth in section 221, The total principal amount of guaranties issued under this title or heretofore issued under prior housing guaranty authorities, which are outstanding at any one time, shall not exceed $1,180,000,000.

The authority of this section shall continue until September 30, 1980.
The President may issue regulations from time to time with regard to the terms and conditions upon which such guaranties shall be issued and the eligibility of lenders. "

(b) Activities carried out under this section shall emphasize— 22 u se 2198.

Ante, p. 950.

Regulations.

"(1) projects which provide improved home sites to poor fam ilies on which to build shelter, and related services; "(2) projects comprised of expandable core shelter units on Solar energy technologies.

22 use 2182a.
22 use 2182a.

22 use 2183. serviced sites; existing shelter; " (3) slum upgrading projects designed to conserve and improve "(4) shelter projects for low income people designed for dem onstration or institution building purposes; and "(5) community facilities and services in support of projects authorized under this section to improve the shelter occupied by the poor.
"(c) In issuing guaranties under this section with respect to proj ects in a country which require the use or conservation of energy, the President shall give consideration to the use of solar energy technolo gies, where such technologies are economically and technically feasible.

Technologies which may be used include solar hot water systems, solar heating and cooling, passive solar heating, biomass conversion, photo voltaic and wind applications, and community-scale solar thermal applications.".
(b) Section 222A(h) of such Act is amended by striking out "Sep tember 30, 1978" and inserting in lieu thereof "September 30, 1979".

(c) Section 223(a) of such Act is amended by striking out "221, 222," and inserting in lieu thereof "222".
(d) Section 223(b) of such Act is amended in the first sentence— (1) by striking out "221 or" the first place it appears; (2) by striking out "221 and section 222 and of" and inserting in lieu thereof "222 and administering housing guaranties here tofore authorized under this title and under"; (3) by striking out "section 221 or" the second place it appears; and pursuant to".
(4) by inserting "this title or" immediately after "heretofore (e) Section 223(c) of such Act is amended by striking out "section 221 or" and by inserting "under this title or" immediately after "heretofore".

(f) Section 223 (d) of such Act is amended— (1) by striking out "221, 222, 222A," and inserting in lieu thereof "222 or 222A"; and "heretofore".

(2) by inserting "under this title or" immediately after (g) Section 223(f) of such Act is amended in the first sentence by striking out "section 221 or".
(h) Section 223(g) of such Act is amended by inserting "heretofore under this title or" immediately after "outstanding".

92 STAT.

952 PUBLIC LAW 95-424—OCT.

6, 1978 Repeal.

22 use 2183.

22 use 2370.

(i) Section 223 (i) of such Act is repealed.

(i) Section 223(j) of such Act is amended by striking out "sections 221 and" in the first sentence and inserting in lieu thereof "section".
(k) Section 620(1) of such Act is amended by striking out "221 ( b ) ( 1 )" both places it appears and inserting in lieu thereof "234 (a)(1)".

22 use 2201.

Appropriation authorization.

ASSISTANCE FOR CERTAIN DISADVANTAGED CHILDREN IN ASIA SEC.

116.

Chapter 2 of part I of the Foreign Assistance Act of 1961 is amended by striking out the title heading for title V and inserting in lieu thereof the following: "TITLE V—DISADVANTAGED CHILDREN IN ASIA " S EC 241.
ASSISTANCE TO CERTAIN DISADVANTAGED CHILDREN IN ASIA.—(a) The Congress recognizes the humanitarian needs of dis advantaged children in Asian countries where there has been or con tinues to be a heavy presence of United States military and related personnel in recent years.

Moreover, the Congress finds that inade quate provision has been made for the care and welfare of such dis advantaged children, particularly those fathered by the United States citizens.
"(b) Accordingly, the President is authorized to expend up to $2,000,000 of funds made available under chapter 1 of this part, in addition to funds otherwise available for such purposes, to help meet the needs of these disadvantaged children in Asia by assisting in the expansion and improvement of orphanages, hostels, day care centers, school feeding programs, and health, education, and welfare programs.
Assistance provided under this section shall be furnished under the auspices of and by international organizations or private voluntary agencies operating within, and in cooperation with, the countries of Asia where these disadvantaged children reside.".

I N T E R N A T I O N AL O R G A N I Z A T I O NS A ND PROGRAMS United Nations Trust Fund on South Africa, appropriation authorization.

22 u se 2222.

SEC.

117.


(a) Section 302(a) (1) of the Foreign Assistance Act of 1961 is amended in the first sentence by striking out "for the fiscal year 1977, $219,900,000 and for the fiscal year 1978, $252,000,000" and inserting in lieu thereof "$285,450,000 for the fiscal year 1979 of which not to exceed $300,000 shall be available for contribution to the United Nations Trust Fund on South Africa".

United Nations Relief and Works Agency for Palestine Refugees, appropriation authorization.
(b) (1) Section 302(a) (1) of such Act is further amended— (A) by striking out "$42,500,000" in the third sentence and inserting in lieu thereof "$52,000,000"; and (B) by inserting immediately after the third sentence the following: "Of the funds authorized to be appropriated under this subsection for the fiscal year 1979, not to exceed $52,000,000 shall be available for voluntary contributions to the United Nations Relief and Works Agency for Palestine Refugees, except that not more than $42,500,000 of this amount may be obligated unless the President certifies to the Congress that any contributions above this level have been matched by equivalent contributions by members of the Organization of Petroleum Exporting Countries.".
PUBLIC LAW 95-424—OCT.

6, 1 9 78 92 STAT.
9 53 (2) Not later t h an J a n u a ry 31, 1979, the Secretary of State shall provide the Committee on Foreign Relations of t he Senate a nd t he Committee on International Relations of t he House of Representa tives with a full and detailed report on the progress made by the Com missioner-General of the United Nations Relief and W o r ks Agency to improve t he ration distribution system so t h at food to Palestine ref ugees can be more equitably distributed on the basis of need, rather t h an entitlement.
(c) Section 302(a) of such Act is amended by adding at the end thereof the following new p a r a g r a p h: " ( 3) None of the funds made available under this subsection for the fiscal year 1979 may be used for the United Nations Institute for Namibia unless t he President determines t h at such funds will not be used to support t he military or paramilitary activities of t he South west African Peoples Organization.".

Report to congressional committees.

22 use 2222 note.

Funds, prohibition.


22 u se 2222.


(d) Section 301 of such A ct is amended by adding at t he end 22 u se 2221. thereof the following new subsection: " ( g) It is t he sense of t he Congress t h at t he President should instruct the appropriate representatives of t he United States to the United Nations to encourage t he specialized agencies of t he United Nations to transfer the funding of technical assistance programs car ried out by such agencies to t he United Nations Development P r o g r a m .

".
".

(e) In addition to amounts otherwise available for such purpose, there are authorized to be appropriated to the President not to exceed $1,000,000 for contributions to t he W o r ld Assembly on A g i ng to be convened under the auspices of the United Nations, except that the amount so contributed m ay not exceed 25 percent of the expendi tures of such Assembly.

Amounts appropriated under this subsection are authorized to remain available until expended.

INTERNATIONAL DISASTER ASSISTANCE SEC.

118.


(a) Section 491(b) of the Foreign Assistance Act of 1961 is amended by striking "or international organization" and inserting in lieu thereof ", international organization, or private voluntary organization,".

(b) Section 492 of such Act is amended— ' ' - ^ •' *''*'^ = ^ (1) in the first sentence by striking out "each of the fiscal years 1977 and 1978" and inserting in lieu thereof "the fiscal year 1979"; and (2) by striking out the third sentence.
World AssemWy on Aging, appropriation authorization.

22 use 2222 note.

22 use 2292, Appropriation authorization.

22 u se 2292a.

ASSISTANCE FOR AFRICAN REFUGEES SEC.

119.

Chapter 9 of p a rt I of the Foreign Assistance Act of 1961 22 u se 2292. is amended— (1) by redesignating section 495D, as added by section 121 of the International Development and Food Assistance Act of 1977, as section 495E; and (2) by a d d i ng at the end thereof the following new section: " S E C. 495F.
ASSISTANCE TO AFRICAN R E F U G E E S .— T he P r e s i d e nt is authorized to furnish assistance, on such terms a nd conditions as he may determine, exclusively for the i-elief and rehabilitation of African refugees a nd other needy people located in Africa.

There is authorized to be appropriated for the fiscal year 1979 for purposes of this section, to amounts otherwise available for such purposes, in addition 22 u se 2292k.

22 u se 2292/.

Appropriation authorization.

92 STAT.


954 PUBLIC LAW 95-424—OCT.

6, 1978 $16,000,000, which amount is authorized to remain available until expended.

Assistance under this section shall be provided in accordance with the policies and general authorities contained in section 491.".

LOCUST PLAGUES CONTROL IN AFRICA Appropriation authorization.

22 use 2292d note.

SEC.

120.


In order to assist in attempts to control locust plagues in Africa, especially in the Horn of Africa, there is authorized to be appropriated to the President, in addition to amounts otherwise authorized for disaster relief purposes, $2,000,000, which amount is authorized to remain available until expended.

REIMBURSABLE DEVELOPMENT PROGRAMS Appropriation authorization.

22 use 2421.

SEC.

121.


Section 661 of the Foreign Assistance Act of 1961 is amended by striking out "$2,000,000" the first place it appears and all that follows through "1978," and inserting in lieu thereof "$3,000,000 of the funds made available for the purposes of this Act for the fiscal year 1979".

AFRICAN DEVELOPMENT FOUNDATION Community- based self-help activities.

22 u se 2151u note.

Ante, p. 941.

Report to Congress.

SEC.

122.


(a) The Congress declares that the United States should place higher priority on the formulation and implementation of poli cies and programs to enable the people of African nations to develop their potential, fulfill their aspirations, and enjoy better, moi-e pro ductive lives.
In furtherance of these objectives, the Congress finds that additional support is needed for community-based self-help activities in Africa and that an African Development Foundation, organized to further the purposes set forth in section 123 of the For eign Assistance Act of 1961, can complement current United StatevS development programs in Africa.
(b) The Congress therefore requests that the President report to the Congress not later than February 1, 1979, on steps he has taken to review proposals for an African Development Foundation.

: .

.

, /, T I T LE II—FOOD F OE PEACE 7 use 1711 note.

7 use 1701.

Report to Congress.

.

, , 7 use 1721, 1727.

EFFECTIVENESS OF FOOD ASSISTANCE IN MEETING BASIC FOOD NEEDS SEC.

201.
201.

The Congress finds that food assistance provided by the United States to developing countries under title I of the Agricultural Trade Development and Assistance Act of 1954 often is distributed within those countries in ways which do not significantly alleviate hunger and malnutrition in those countries.
In order to deteirmine how United States food assistance can be more effectively used to meet the food needs of the poor in developing countries, the President shall submit to the Congress not later than February 1, 1979, a report (1) explaining why food assistance provided to developing countries under title I of the Agricultural Trade Development and Assistance Act of 1954 is not more successful in meeting the food needs of those suffering from hunger and malnutrition, and (2) recommending steps which could be taken (including increasing the proportion of food assistance which is furnished under titles II and J II of that Act) to increase the effectiveness of food assistance under that Act in meeting those needs.
PUBLIC LAW 95-424—OCT.

6, 1978 92 STAT.

955 TRANSPORTATION COSTS FOR FOOD FOR DEVELOPMENT PROGRAMS SEC.

202.
Section 304 of the Agricultural Trade Development and Assistance Act of 1%4 is amended by adding at the end thereof the following new subsection: "(d) The Commodity Credit Corporation may pay, with respect to commodities made available under this title to a country on the United Nations Conference on Trade and Development list of rela tively least developed countries, freight charges from United States ports to designated ports of entry abroad or to designated points of entry abroad m the case of landlocked countries.".
APPLICATION OF FOOD FOR DEVELOPMENT PROCEEDS TO REPAYMENT OBLIGATIONS 7 use 1727c.

S EC 203.

Section 305 of the Agricultural Trade Development and 7 USC 1727d.

Assistance Act of 1954 is amended— (1) by inserting " ( a )" immediately after " S EC 305.
"; and (2) by adding at the end thereof the following new subsection: "(b) Such disbursements shall be deemed to be payments with respect to the credit furnished pursuant to the agreement or if, in the case of a country on the United Nations Conference on Trade and Development list of relatively least developed countries, the disburse ments in a fiscal year are greater than the amount of the annual repay ment obligation which that country would have to meet for that fiscal year under the agreement but for the disbursements in accordance with the Food for Development Program, then the disbursements which are in excess of the amount of that annual repayment obligation may, to the extent provided in the agreement, be considered as payments with respect to the annual repayment obligations of that country for that fiscal year under other financing agreements under this Act.".
T I T LE III—COORDINATION AND ADMINISTRATION OF T HE DEVELOPMENT-RELATED PROGRAMS AND POLI CIES OF T HE UNITED STATES DECLARATION OF OBJECTIVES S EC 301.

The Congress declares that the United States Government should place higher priority, in the formulation and implementation of governmental policies, on efforts to help meet the legitimate needs of poor countries for improving the quality of the lives of their popula tions.
The Congress also declares that greater effectiveness and effi ciency of United States assistance to such countries can be achieved through improved coordination and administrative consolidation.

22 USC 2151 note.

IMPLEMENTATION OF OBJECTIVES S EC 302.
In furtherance of the objectives set forth in section 301 the Congress directs the President to institute a strengthened sys tem of coordination of all United States economic policies which impact on the developing countries of the world, including but not limited to policies concerning international trade, commodity agree ments, investment, debt, international financial institutions, inter national and multilateral development agencies and programs, and concessional and grant food assistance, in addition to policies concern ing United States bilateral economic development assistance.
22 USC 2151 note.

39-194 O—80—pt.

1 64 : QL3 92 STAT.

956 PUBLIC LAW 95-424—OCT.

6, 1978 Report to Congress.

22 u se 2151 note.

SEC.

303.

The President shall report to the Congress not later- than February 1,1979, on the steps he has taken to implement this title and on any further legislation which may be needed to achieve the objec tives of this title.

REPORT " TITLE IV—UNIFIED PERSONNEL SYSTEM • ESTABLISHMENT OF A U N I F I ED PERSONNEL SYSTEM Regulations.

Publication in Federal Register.


22 u se 2385a.

22 u se 2151.

Contract awards.

22 use 2351.

SEC.

401.

(a) Not later than March 15, 1979, the President shall submit to the Congress, and publish in the Federal Register, regula tions establishing a unified personnel system for all employees of the agency primarily responsible for administering part I of the Foreign Assistance Act of 1961.
In preparing such regulations, the President shall keep the appropriate committees of the Congress fully and cur rently informed, and shall consult with them on a regular basis, con cerning the nature of the unified personnel system to be established.
(b) The regulations submitted to the Congress pursuant to sub section (a) — (1) may not become effective until after the end of the 90-day period beginning on the date of such submission in order to pro vide the appropriate committees of the Congress an opportunity to review them; and (2) shall not become effective then if, during such 90-day period, either House of Congress adopts a resolution stating in substance that it disapproves the personnel system proposed to be established by the regulations.
(c) Regulations which take effect pursuant to this section shall have the force and effect of law and shall apply with respect to the personnel of the agency primarily responsible for administering part I of the Foreign Assistance Act of 1961, notwithstanding and inconsistent pro vision of law unless that provision of law specifically states that it supersedes regulations issued under this section.

T I T LE V—ADMINISTRATIVE PROVISIONS USE OF COMPETITIVE SELECTION PROCEDURES SEC.

501.
501.

Section 601 of the Foreign Assistance Act of 1961 is amended by adding the following new subsection at the end thereof: "(e) (1) The Congress finds that significantly greater effort must be made in carrying out programs under part I of this Act to award contracts on the basis of competitive selection procedures.
All such contracts should be let on the basis of competitive selection procedures except in those limited cases in which the procurement regulations governing the agency primarily responsible for administering part I of this Act allow noncompetitive procedures to be used.
"(2) In order to provide the Congress with information to assist it in assessing the efforts of the agency primarily responsible for admin istering part I of this Act to make the maximum possible use of com petitive selection procedures, the Administrator of that agency— "(A) when submitting the congressional presentation materials for developing assistance for fiscal year 1980, shall also submit to the Congress a report identifying and describing each contract Report to Congress.

* PUBLIC LAW 95-424—OCT.


6, 1978 92 STAT.
9iS7 in an amount in excess of $100,000 which the agency entered into without competitive selection procedures during the period A p r il 1, 1978, to September 30, 1978, and explaining why each such contract was not the subject of competitive selection procedures; a nd " ( B) when submitting the congressional presentation materials for development assistance for fiscal year 1981, shall also submit to the Congress a report identifying and describing each contract in an amount in excess of $100,000 which the agency entered into without competitive selection procedures d u r i ng the fiscal year 1979 and explaining why each such contract was not the subject of competitive selection procedures.".
Report to Congress.

22 u se 2394.

22 u se 2393a.

22 u se 2393.

22 u se 2394.

Report to Congress.

ANNUAL FOREIGN ASSISTANCE REPORT SEC.

502.

(a) Chapter 2 of p a rt I II of the Foreign Assistance Act of 1961 is amended— (1) by striking out " ( c )" in section 634(c) and inserting in lieu thereof " S E C. 633A.
FURNISHING INFORMATION.—" and by insert ing such redesignated section immediately after section 633; and (2) by striking out the remaining provisions of section 634 and inserting in lieu thei'eof the following: " S E C. 634.
A N N U AL REPORT.— (a) In order t h at the Congress and the American people may be better and more currently informed regard ing United States development policy, including the amounts and efi'ectiveness of assistance provided by the United States Government to developing countries and international organizations, the Chairman of the Development Coordination Committee shall transmit to the Con gress not later t h an F e b r u a ry 1 of each year a report on foreign assist ance for the fiscal year ending the previous September 30.
The report shall include— " ( 1) ( A) a comprehensive and coordinated review of all United States policies and programs having a major impact on the devel opment of developing countries, including but not limited to bilat eral and multilateral assistance, trade, debt, employment, food, energy, technology, population, oceans, environment, human set tlements, natural resources, and participation international agencies concerned with development; in " ( B) an assessment of the impact of such policies and pro grams on the well-being of the poor majority in developing coun tries in accordance with t he policy objectives of chapter 1 of p a rt I, including the progress developing countries are m a k i ng toward achieving those objectives which are indicative of improved well- being of the poor majority, which objectives shall include but not be limited to increasing life expectancy and literacy, lowering infant mortality and birth rates, and increasing food production and employment; and " ( C) an assessment of the impact of such policies and programs on economic conditions in the United States, including but not limited to employment, wages, and working conditions; " ( 2) the dollar value of all foreign assistance and guaranties by category and by country provided or made by the United States Government by any means to all foreign countries and interna tional organizations— " ( A) from 1946 to the fiscal year immediately preceding the fiscal year for which the report is required; 92 STAT.
958 PUBLIC LAW 95-424—OCT.

6, 1978 ; 22 use 2751 °***®- 7 use 1691 note.

12 use 635 note.

Definitions.
"(B) as presented to Congress for the immediate preced ing fiscal year; year; presented; and "(C) as obligated during the immediately preceding fiscal "(D) as planned for the fiscal year in which the report is " ( E) as proposed for the fiscal year following the year in which the report is presented; "(3) a summary of repayments, by country, to the United States from previous foreign assistance loans; "(4) the status of each loan and each contract of guaranty or insurance theretofore made under this Act, predecessor Acts, or any Act authorizing international security assistance, with respect to which there remains outstanding any unpaid obligation or potential liability; the status of each extension of credit for the procurement of defense articles or defense services, and of each contract of guarantee in connection with any such procurement, theretofore made under the Arms Export Control Act with respect to which their remains outstanding any unpaid obligation or potential liability; the status of each sale of agricultural commodities on credit terms, theretofore made under the Agricul- tural Trade Development and Assistance Act of 1954 with respect to which there remains outstanding any unpaid obligation; and the status of each transaction with respect to which a loan, contract or guarantee of insurance, or extension of credit (or participation therein) was theretofore made under the Export- Import Bank Act of 1945 with respect to which there remains outstanding any unpaid obligation or potential liability; except that such report shall include individually only any loan, contract, sale, extension of credit, or other transaction listed in this para graph which is in excess of $1,000,000; "(5) (A) the status of the debt servicing capacity of each coun try receiving assistance under this Act; "(B) all forms of debt relief granted by the United States with respect to such countries, together with a detailed statement of the specific debt relief granted with respect to each such coun try and the purpose for which it was granted; and "(C) a summary of the net aid flow from the United States to such countries, taking into consideration the debt relief granted by the United States; and "(6) such other matters relating to foreign assistance provided by the United States Government under part I as the Chairman of considers appropriate.
the Development Coordination Committee "(b) For purposes of this section— "(1) 'foreign assistance' means any tangible or intangible item provided by the United States Government to a foreign country or international organization under this or any other Act, includ ing but not limited to any training, service, or technical advice, any item of real, personal, or mixed property, any agricultural commodity, United States dollars, and any currencies of any for eign country which are owned by the United States Government; and "(2) 'provided by the United States Government' includes, but is not limited to, foreign assistance provided by means of gift, loan, sale, credit, or guaranty.".
PUBLIC LAW 95-424—OCT.

6, 1978 92 STAT.

959 (b) Part I II of the Foreign Assistance Act of 1961 is amended by redesignating section 671 as section 634A and by inserting such redes ignated section immediately after section 631.

(c) Part I II of such Act, as amended by subsection (b) of this sec tion, is further amended by adding the following new section immedi ately after new section 634A: "SEC.

634B.
634B.

CLASSIFICATION or REPORTS.—All information con tained in any report transmitted under this Act shall be public infor mation.

However, in the case of any item of information to be included in any such report that the President, on an extraordinary basis, determines is clearly detrimental to the security of the United States, he shall explain in a supplemental report why publication of each specific item would be detrimental to the security of the United States.
A supplemental report shall be transmitted to the Congress at the time the report is transmitted.".

22 use 2429b.

22 use 2394-1.

22 use 2394-la.

Supplemental reports, national security considerations.

(d) (1) Title XI of chapter 2 of part I and sections 120(d), 222A (j), 495C(e), 620(w), 621A(c), 640B(d), and 657 of the Foreign As sistance Act of 1961 are repealed.
(2) Section 640B(g) of such Act is amended by striking out "sub section (d), the President" and inserting in lieu thereof "section 634, the Chairman of the Committee".

Repeal.

22 u se 2220, 2151r, 2182a, 22921, 2370, 2381a, 2399c, 2417.

22 u se 2399c.

REIMBURSABLE TECHNICAL ASSISTANCE SEC.

503.
Section 607 of the Foreign Assistance Act of 1961 is amended by redesignating subsection (b) as subsection (c) and by inserting the following new subsection (b) immediately after sub section (a) : "(b) When any agency of the United States Government provides services on an advance-of-funds or reimbursable basis under this sec tion, such agency may contract with individuals for personal service abroad or in the United States to perform such services or to replace officers or employees of the United States Government who are assigned by the agency to provide such services.
Such individuals shall not be regarded as employees of the United States Government for the purpose of any law administered by the Civil Service Commission.'.

eontract authority.

22 use 2357.

AUDITOR GENERAL SEC.

504.


Section 624 of the Foreign Assistance Act of 1961 is amended by adding at the end thereof the following new subsection: "(g) (1) In addition to the officers provided for in subsection (a) of this section, there shall be an Auditor General who shall be appointed by the Administrator of the agency primarily responsible for administering part I of this Act.
The Auditor General shall be 22 USe 2151. compensated at the rate provided for level V of the Executive Sched ule under section 5316 of title 5, United States Code.

Appointment.

22 use 2384.

"(2) The Auditor General shall report to and be under the direct supervision of the Administrator.
"(3) The Auditor General shall, with respect to the duties and responsibilities of the agency primarily responsible for administering part I of this Act and subject to the authority of the Administrator of such agency, supervise, direct, and control all audit and investi gative activities relating to the programs and operations of the agency.

"(4) The Auditor General shall submit an annual report to the Annual reports.

Administrator.

This report shall be provided to the Congress without 92 STAT.
960 PUBLIC LAW 95-424—OCT.

6, 1978 Ante, p. 957.

• 22 use 2396.

22 use 2427. further clearance or approval as part of the annual report required by section 634 of this Act.
"(5) In the execution of the responsibilities and duties assigned in paragraph (3) of this subsection, the Auditor General shall have (A) access to all records, reports, papers, and documents of the agency and its administrative subdivisions, and (B) authority to request such information or assistance as necessary for carrying out the duties set forth in this subsection from any Federal, State, or local govem- mental agency or unit thereof, and from contractors, grantees, and loan recipients of the agency.".
MOTOR VEHICLES SEC.

505.

Section 636(a) (5) of the Foreign Assistance Act of-1961 is amended by striking "$3,500" and inserting in lieu thereof "the current market price in the United States of a mid-sized sedan or station wagon meeting the requirements established by the General Services Administration for a Class I II vehicle of United States manufacture (or, if the replacement vehicle is a right-hand drive vehicle, 120 percent of that price)".

OPERATING EXPENSES SEC.

506.


Section 667(a) of the Foreign Assistance Act of 1961 is amended— (1) in the text preceding paragraph (1) by striking out "1978" and inserting in lieu thereof "1979"; and (2) in paragraph (1) by striking out "$220,200,000" and inserting in lieu thereof "$261,000,000".

T I T LE VI—MISCELLANEOUS PROVISIONS REDUCTION OF AUTHORIZATION 22 u se 2151 °o*«- 22 u se 2174.

SEC.

601.
SEC.

601.

T he total funds authorized to be appropriated in this A ct (excluding funds authorized to be appropriated to carry out section 214 of the Foreign Assistance Act of 1961) shall be reduced by 5 percent.

PROHIBITION ON ASSISTANCE TO VIETNAM, CAMBODIA, UGANDA, AND CUBA 22 use 2151 note.

/!

SEC.

602.
/!

SEC.

602.

Notwithstanding any other provision of law or of this ^ct, funds authorized to be appropriated in this Act shall not be used for any form of aid, either by monetary payment or by the sale or transfer of any goods of any nature, to the Socialist Republic of Vietnam, Cambodia, Uganda, or Cuba.

REPORTS TO CONGRESS ON DEBT RELIEF AGREEMENTS 22 use 2395a.

f 'fw SEC.

603.
f 'fw SEC.

603.

(a) (1) The Secretary of State shall keep the Committee on Foreign Relations of the Senate, the Committee on International Relations of the House of Representatives, and the Committee on Appropriations of each House of the Congress fully and currently informed of any negotiations with any foreign government with respect to any cancellation, renegotiations, rescheduling, compromise, or other form of debt relief (including any modification of the terms, PUBLIC LAW 95-424—OCT.
6, 1978 92 STAT.

961 conditions, or manner of repayment), with regard to any debt owed to the L'nited States by such foreign government.

(2) The Secretary of State shall transmit to such committees a copy of the text of any agreement with any foreign government which would result in any such debt relief no less than thirty days prior to its entry into force, together with a detailed justification of the interest of the United States in the proposed debt relief.
The requirements of this paragraph shall not apply with respect to an agreement if a statu tory requirement exists that the amount of the debt relief provided by the agreement may not exceed the amount approved for such purposes in advance in an appropriation Act.

(b) Section 4 of the Foreign Disaster Assistance xAct of 1974 is repealed.

MISCELLANEOUS REPEALS SEC.

604.


Sections 302(d), 302(e), 302(f), 302(g), 302(h), 304, 494A, 495A, 618, 619, 637(a), 649, 651, 655, 656, 658, and 665, and chapters 6 and 7 of part I, of the Foreign Assistance Act of 1961 are repealed.

EFFECTIVE DATE SEC.

605.

The amendments made by this Act shall take effect on October 1, 1978.

Approved October 6, 1978. International agreements concerning debt relief, transmittal to congressional committees.

Repeal.

22 use 2395 note.

Repeal.


22 u se 2222, 2224, 2292d, 2292g, 2368, 2369, 2397, 2408, 2410, 2415, 2416, 2418, 2425, 2271, 2281.

22 u se 2151 note.

LEGISLATIVE HISTORY: HOUSE REPORTS: No.

95-1087 (Comm.

on International Relations) and No.

95-1545 CONGRESSIONAL RECORD, Vol.

124 (1978): (eomm.

of eonference).

May 11, 12, 15, considered and passed House.

June 26, considered and passed Senate, amended, in lieu of S. 3074.

Sept. 19, House agreed to conference report.


Sept. 20, Senate agreed to conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol.

14, No.

40: Oct. 6, Presidential statement.