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FOREIGN ASSISTANCE ACT OF 1961
[Public Law 87–195; Approved September 4, 1961][As Amended Through P.L. 116–6, Enacted February 15, 2019]øCurrency: This publication is a compilation of the text of Public Law 87-195. It waslast amended by the public law listed in the As Amended Through note above andbelow at the bottom of each page of the pdf version and reflects current law
through the date of the enactment of the public law listed at https://www.govinfo.gov/app/collection/comps/¿øNote: While this publication does not represent an official version of any Federal
statute, substantial efforts have been made to ensure the accuracy of its contents.
The official version of Federal law is found in the United States Statutes at Largeand in the United States Code. The legal effect to be given to the Statutes at
Large and the United States Code is established by statute (1 U.S.C. 112, 204).¿
AN ACT To promote the foreign policy, security, and general welfare of the UnitedStates by assisting peoples of the world in their efforts toward economic development and internal and external security, and for other purposes.

Be it enacted by the Senate and House of Representatives of theUnited States of America in Congress assembled, That this Act may
be cited as ‘‘The Foreign Assistance Act of 1961.’’
PART ICHAPTER 1—POLICY; DEVELOPMENT ASSISTANCE AUTHORIZATIONS
SEC. 101. ø22 U.S.C. 2151¿ GENERAL POLICY.—(a) The Congress finds that fundamental political, economic, and technologicalchanges have resulted in the interdependence of nations. The Congress declares that the individual liberties, economic prosperity,and security of the people of the United States are best sustainedand enhanced in a community of nations which respect individual
civil and economic rights and freedoms and which work together touse wisely the world’s limited resources in an open and equitableinternational economic system. Furthermore, the Congress reaffirms the traditional humanitarian ideals of the American people
and renews its commitment to assist people in developing countries
to eliminate hunger, poverty, illness, and ignorance.
Therefore, the Congress declares that a principal objective of
the foreign policy of the United States is the encouragement andsustained 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 five principal goals:(1) the alleviation of the worst physical manifestations ofpoverty among the world’s poor majority;
1
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2(2) the promotion of conditions enabling developing countries to achieve self-sustaining economic growth with equitable
distribution of benefits;(3) the encouragement of development processes in which
individual civil and economic rights are respected and enhanced;(4) the integration of the developing countries into an open
and equitable international economic system; and(5) the promotion of good governance through combating
corruption and improving transparency and accountability.
The Congress declares that pursuit of these goals requires thatdevelopment concerns be fully reflected in United States foreign
policy and that United States development resources be effectively
and efficiently utilized.
(b) Under the policy guidance of the Secretary of State, theagency primarily responsible for administering this part shouldhave the responsibility for coordinating all United States development-related activities.
SEC. 102. ø22 U.S.C. 2151–1¿ 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 growth 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 theneeds and capabilities of specific developing countries. UnitedStates assistance to countries with low per capita incomes whichhave 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 technicalskills, 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 UnitedStates bilateral development assistance is to help the poor majorityof 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 andtheir access to public 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 participaJune 10, 2019

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tion 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 shallalso place appropriate emphasis on these principles.
(b) Assistance under this chapter should be used not only forthe 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 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 assistance authorized by this Act shall be
carried out in accordance with the following principles:(1) Development is primarily the responsibility of the people of the developing countries themselves. Assistance from theUnited 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 thosecountries that take positive steps to help themselves. Maximum effort shall be made, in the administration of this part,to stimulate the involvement of the people in the development
process through the encouragement of democratic participationin private and local governmental activities and institution
building appropriate to the requirements of the recipient countries.
(2) Development planning must be the responsibility ofeach sovereign country. United States assistance should be administered 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 theirpeople and their capacity to participate in the development of
their countries, while also helping such governments enhancetheir 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 humanneeds of poor people through equitable growth, especially inthose countries having the greatest need for outside assistance.
In order to make possible consistent and informed judgmentsin this respect, the President shall assess the commitment andprogress of countries in moving toward the objectives and purposes of this chapter by utilizing criteria, including but notlimited to the following:(A) increase in agricultural productivity per unit ofland through small- farm, labor-intensive agriculture;(B) reduction of infant mortality;
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4(C) control of population growth;(D) promotion of greater equality of income distribution, including measures such as more progressive taxationand more equitable returns to small farmers;(E) reduction of rates of unemployment and underemployment;(F) increase in literacy; and(G) progress in combating corruption and improving
transparency and accountability in the public and private
sector.
(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;environment and natural resources; education, development
administration, and human resources development; and energy
development and production.
(6) United States assistance shall encourage and promote
the participation of women in the national economies of developing countries and the improvement of women’s status as animportant means of promoting the total development effort.
(7) United States bilateral assistance shall recognize thatthe prosperity of developing countries and effective development efforts require the adoption of an overall strategy that
promotes the development, production, and efficient utilizationof energy and, therefore, consideration shall be given to the full
implications of such assistance on the price, availability, andconsumption 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 haveties in the developing areas, such as educational institutions,cooperatives, credit unions, free labor unions, and private andvoluntary agencies.
(9) To the maximum extent practicable, United States private investment should be encouraged in economic and social
development programs to which the United States lends support.
(10) Assistance shall be planned and utilized to encourageregional cooperation by developing countries in the solution ofcommon problems and the development of shared resources.
(11) Assistance efforts of the United States shall beplanned and furnished to the maximum extent practicable incoordination and cooperation with assistance efforts of othercountries, including 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 assistancedoes involve large-scale capital transfers, it should be furnished in association with contributions from other countries
working together in a multilateral framework.
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Sec. 102(13) United States encouragement of policy reforms is necessary if developing countries are to achieve economic growthwith equity.
(14) Development assistance should, as a fundamental objective, promote private sector activity in open and competitivemarkets in developing countries, recognizing such activity to bea productive and efficient means of achieving equitable andlong-term economic growth.
(15) United States cooperation in development should recognize as essential the need of developing countries to have access to appropriate technology in order to improve food andwater, health and housing, education and employment, and agriculture and industry.
(16) United States assistance should focus on establishingand upgrading the institutional capacities of developing countries in order to promote long-term development. An importantcomponent of institution building involves training to expand
the human resource potential of people in developing countries.
(17) Economic reform and development of effective institutions of democratic governance are mutually reinforcing. The
successful transition of a developing country is dependent upon
the quality of its economic and governance institutions. Rule oflaw, mechanisms of accountability and transparency, securityof person, property, and investments, are but a few of the critical governance and economic reforms that underpin the sustainability of broad-based economic growth. Programs in support of such reforms strengthen the capacity of people to holdtheir governments accountable and to create economic opportunity.
(c) The Congress, recognizing the desirability of overcoming theworst aspects of absolute poverty by the end of this century by,among other measures, substantially lowering infant mortality andbirth rates, and increasing life expectancy, food production, literacy, and employment, encourages the President to explore withother countries, through all appropriate channels, the feasibility ofa 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.
NOTE.—Foreign assistance appropriations for fiscal year 1994 areincluded in the Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 1994 (Public Law 103–87; 107 Stat.
931). Amounts appropriated by that Act to carry out the purposesof provisions contained in the Foreign Assistance Act of 1961, during fiscal year 1994 unless otherwise specified, are included in footnotes. For complete text of foreign assistance provisions of Public
Law 103–87, see page 581.
NOTE.—Prior to fiscal year 1992, Congress appropriated funds foreach of the Development Assistance functional accounts authorized
in sections 103 through 106 of the Foreign Assistance Act of 1961.
Beginning with fiscal year 1992, however, Congress made appropriations in one lump sum for all programs within sections 103
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through 106, with the exception of ‘‘Population, Development Assistance’’.
For fiscal year 1993, to remain available until September
30, 1994, for all other functional Development Assistance accounts, Congress appropriated $811,900,000.
For fiscal year 1994, to remain available until September
30, 1995, for ‘‘Population, Development Assistance’’, Congressappropriated $392,000,000.
NOTE.—The Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 1994 (Public Law 103–87; 107 Stat.
945), provided the following:‘‘SEC. 501. Except for the appropriations entitled ‘‘International
Disaster Assistance’’, and ‘‘United States Emergency Refugee andMigration Assistance Fund’’, not more than 15 per centum of any
appropriation item made available by this Act shall be obligatedduring the last month of availability.’’.
NOTE.—Transfers Between Accounts. The Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1994
(Public Law 103–87; 107 Stat. 946), provided the following:‘‘SEC. 509. None of the funds made available by this Act may
be obligated under an appropriation account to which they were notappropriated, unless the President, prior to the exercise of any authority contained in the Foreign Assistance Act of 1961 to transfer
funds, consults with and provides a written policy justification to
the Committees on Appropriations of the House of Representatives
and the Senate: Provided, That the exercise of such authority shallbe subject to the regular notification procedures of the Committees
on Appropriations.’’.
NOTE.—Deobligation/Reobligation Authority. The Foreign Operations, Export Financing, and Related Programs Appropriations
Act, 1994 (Public Law 103–87; 107 Stat. 946), provided the following:‘‘SEC. 510. (a) Amounts certified pursuant to section 1311 of the
Supplemental Appropriations Act, 1955, as having been obligatedagainst appropriations heretofore made under the authority of theForeign Assistance Act of 1961 for the same general purpose as anyof the headings under the ‘‘Agency for International Development’’are, if deobligated, hereby continued available for the same period
as the respective appropriations under such headings or until September 30, 1994, whichever is later, and for the same general purpose, and for countries within the same region as originally obligated: Provided, That the Appropriations Committees of bothHouses of the Congress are notified fifteen days in advance of thedeobligation and reobligation of such funds in accordance with regular notification procedures of the Committees on Appropriations.
‘‘(b) Obligated balances of funds appropriated to carry out
section 23 of the Arms Export Control Act as of the end of the
fiscal year immediately preceding the current fiscal year are, if
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deobligated, hereby continued available during the current fiscal year for the same purpose under any authority applicable tosuch appropriations under this Act.’’.
NOTE.—Availability of Funds. The Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1994 (Public
Law 103–87; 107 Stat. 947), provided the following:‘‘SEC. 511. No part of any appropriation contained in this Act
shall remain available for obligation after the expiration of the current fiscal year unless expressly so provided in this Act: Provided,
That funds appropriated for the purposes of chapters 1 and 8 ofpart I, section 667, and chapter 4 of part II of the Foreign Assistance Act of 1961, as amended, shall remain available until expended if such funds are initially obligated before the expiration of
their respective periods of availability contained in this Act: Provided further, That, notwithstanding any other provision of this Act,any funds made available for the purposes of chapter 1 of part I
and chapter 4 of part II of the Foreign Assistance Act of 1961 which
are allocated or obligated for cash disbursements in order to address balance of payments or economic policy reform objectives,
shall remain available until expended: Provided further, That thereport required by section 653(a) of the Foreign Assistance Act of1961 shall designate for each country, to the extent known at thetime of submission of such report, those funds allocated for cash
disbursement for balance of payment and economic policy reform
purposes.’’.
NOTE.—Notification Requirements. The Foreign Operations, Export
Financing, and Related Programs Appropriations Act, 1994 (Public
Law 103–87; 107 Stat. 949), provided the following:‘‘SEC. 515. For the purposes of providing the Executive Branchwith the necessary administrative flexibility, none of the funds madeavailable under this Act for ‘‘Development Assistance Fund’’, ‘‘Population, Development Assistance’’, ‘‘Development Fund for Africa’’,‘‘International organizations and programs’’, ‘‘Trade and Development Agency’’, ‘International narcotics control’, ’Assistance for Eastern Europe and the Baltic States’, ’Assistance for the New Independent States of the Former Soviet Union’, ‘‘Economic Support
Fund’’, ‘‘Peacekeeping operations’’, ‘‘Operating expenses of the Agency for International Development’’, ‘‘Operating expenses of the Agency for International Development Office of Inspector General’’, ‘‘Antiterrorism assistance’’, ‘‘Foreign Military Financing Program’’,‘‘International military education and training’’, ‘‘Inter-American
Foundation’’, ‘‘African Development Foundation’’, ‘‘Peace Corps’’, or‘‘Migration and refugee assistance’’, shall be available for obligation
for activities, programs, projects, type of materiel assistance, countries, or other operation not justified or in excess of the amount justified to the Appropriations Committees for obligation under any ofthese specific headings unless the Appropriations Committees ofboth Houses of Congress are previously notified fifteen days in advance: Provided, That the President shall not enter into any commitment of funds appropriated for the purposes of section 23 of theJune 10, 2019

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Arms Export Control Act for the provision of major defense equipment, other than conventional ammunition, or other major defense
items defined to be aircraft, ships, missiles, or combat vehicles, notpreviously justified to Congress or 20 per centum in excess of thequantities justified to Congress unless the Committees on Appropriations are notified fifteen days in advance of such commitment:
Provided further, That this section shall not apply to any reprogramming for an activity, program, or project under chapter 1of part I of the Foreign Assistance Act of 1961 of less than 20 per
centum of the amount previously justified to the Congress for obligation for such activity, program, or project for the current fiscal year:
Provided further, That the requirements of this section or any similar provision of this Act requiring notification in accordance withthe regular notification procedures of the Committees on Appropriations may be waived if failure to do so would pose a substantial risk
to human health or welfare: Provided further, That in case of any
such waiver, notification to the Congress, or the appropriate congressional committees, shall be provided as early as practicable, but
in no event later than three days after taking the action to whichsuch notification requirement was applicable, in the context of thecircumstances necessitating such waiver: Provided further, That any
notification provided pursuant to such a waiver shall contain an explanation of the emergency circumstances.
’’Drawdowns made pursuant to section 506(a)(2) of the Foreign Assistance Act of 1961 shall be subject to the regular notification procedures of the Committees on Appropriations.’’.
SEC. 103. ø22 U.S.C. 2151a¿ AGRICULTURE, RURAL DEVELOPMENT, AND NUTRITION.—(a)(1) In recognition of the fact that thegreat majority of the people 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 conditions as he may determine, foragriculture, 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 viable economic baseand enhance opportunities for improved incomes, living standards, and contributions by rural poor people to the economic
and social development of their countries.
(2) There are authorized to be appropriated to the President for
purposes of this section, in addition to funds otherwise available forsuch purposes, $760,000,000 for the fiscal year 1986 and$760,000,000 for the fiscal year 1987. Of these amounts, the President may use such amounts as he deems appropriate to carry out
the provisions of section 316 of the International Security and Development Cooperation Act of 1980.
(3) Of the amounts authorized to be appropriated in paragraph;(2) for the fiscal year 1987, not less than $2,000,000 shall be available only for the purpose of controlling and eradicating
amblyomman variegatum (heartwater) in bovine animals in the
Caribbean.
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Sec. 103(b)(1) Assistance provided under this section shall be used primarily for activities which are specifically designed to increase theproductivity and income of the rural poor, through such means ascreation and strengthening of local institutions linked to the regional and national levels; organization of a system of financial institutions which provide both savings and credit services to thepoor; stimulation of small, labor-intensive enterprises in rural
towns; improvement of marketing facilities and systems; expansionof rural infrastructure and utilities such as farm-to-market roads,
water management systems, land improvement, energy, and storage facilities; establishment of more equitable and more secureland 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 ways which assure access tothem by small farmers.
(2) In circumstances where development of major infrastructure is necessary to achieve the objectives set forth in this section,
assistance for that purpose should be furnished under this chapter
in association with significant contributions from other countries
working together in a multilateral framework. Infrastructure
projects so assisted should be complemented by other measures toensure that the benefits of the infrastructure reach the poor.
(3) The Congress recognizes that the accelerating loss of forests
and tree cover in developing countries undermines and offsets efforts to improve agricultural production and nutrition and otherwise to meet the basic human needs of the poor. Deforestation results in increased flooding, reduction in water supply for agricultural capacity, loss of firewood and needed wood products, and lossof valuable plants and animals. In order to maintain and increase
forest resources, the President is authorized to provide assistanceunder this section for forestry projects which are essential to fulfill
the fundamental purposes of this section. Emphasis shall be given
to community woodlots, agroforestry, reforestation, protection ofwatershed forests, and more effective forest management.
(c) The Congress finds that the greatest potential for significantly expanding availability of food for people in rural areas andaugmenting 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. Increasing
the emphasis on rural development and expanded food productionin the poorest 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 important factor in alleviating inflation in the industrialized countries. In the allocation of funds under
this section, special attention shall be given to increasing agricultural production in countries which have been designated as ‘‘least
developed’’ by the United Nations General Assembly.
(d) Assistance provided under this section shall also be used incoordination 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 nutritional value; improvement of planning, research, and education
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ment and expanded use of indigenously produced foodstuffs; andthe undertaking 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 toindividuals or groups at the local level for such programs.
(e) Local currency proceeds from sales of commodities provided
under the Food for Peace Act which are owned by foreign governments shall be used whenever practicable to carry out the provisions of this section.
(f) The Congress finds that the efforts of developing countries
to enhance their national food security deserves encouragement asa matter of United States development assistance policy. Measurescomplementary to assistance for expanding food production in developing countries are needed to help assure that food becomes increasingly available on a regular basis to the poor in such countries. Therefore, United States bilateral assistance under this Act
and the Food for Peace Act, and United States participation in
multilateral institutions, shall emphasize policies and programs
which assist developing countries to increase their national food security by improving their food policies and management and bystrengthening national food reserves, with particular concern for
the needs of the poor, through measures encouraging domestic production, building national food reserves, expanding available storage facilities, reducing postharvest food losses, and improving food
distribution.
(g)(1) In order to carry out the purposes of this section, thePresident may continue United States participation in and may
make contributions to the International Fund for Agricultural Development.
(2) Of the aggregate amount authorized to be appropriated tocarry out part I of this Act, up to $50,000,000 for fiscal year 1986
and up to $50,000,000 for fiscal year 1987 may be made available,
by appropriation or by transfer, for United States contributions tothe second replenishment of the International Fund for Agricultural Development.
SEC. 103A. ø22 U.S.C. 2151a–1¿ AGRICULTURAL RESEARCH.—
Agricultural research carried out under this Act shall (1) take account of the special needs of small farmers in the determination ofresearch priorities, (2) include research on the interrelationships
among technology, institutions, and economic, social, environmental, and cultural factors affecting small-farm agriculture, and(3) make extensive use of field testing to adapt basic research to
local conditions. Special emphasis shall be placed on disseminating
research results to the farms on which they can be put to use, andespecially on institutional and other arrangements needed to assure that small farmers have effective access to both new and existing improved technology.
SEC. 104. ø22 U.S.C. 2151b¿ POPULATION AND HEALTH.—(a)FINDINGS.—The Congress recognizes that poor health conditions
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and uncontrolled population growth can vitiate otherwise successful development efforts.
Large families in developing countries are the result of complex social and economic factors which change relatively slowly
among the poor majority least affected by economic progress, aswell as the result of a lack of effective birth control. Therefore, effective family planning depends upon economic and social change
as well as the delivery of services and is often a matter of politicaland religious sensitivity. While every country has the right to determine its own policies with respect to population growth, voluntary population planning programs can make a substantial contribution to economic development, higher living standards, andimproved health and nutrition.
Good health conditions are a principal element in improved
quality of life and contribute to the individual’s capacity to participate in the development process, while poor health and debilitating
disease can limit productivity.
(b) ASSISTANCE FOR POPULATION PLANNING.—In order to increase the opportunities and motivation for family planning and to
reduce the rate of population growth, the President is authorized
to furnish assistance, on such terms and conditions as he may determine, for voluntary population planning. In addition to the provision of family planning information and services, including also
information and services which relate to and support natural family planning methods, and the conduct of directly relevant demographic research, population planning programs shall emphasize
motivation for small families.
(c) ASSISTANCE FOR HEALTH AND DISEASE PREVENTION.—(1) 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 hemay determine, for health programs. Assistance under this subsection shall be used primarily for basic integrated health services,
safe water and sanitation, disease prevention and control, and related health planning and research. The assistance shall emphasize
self-sustaining community-based health programs by means suchas training of health auxiliary and other appropriate personnel,
support for the establishment and evaluation of projects that canbe replicated on a broader scale, measures to improve managementof health programs, and other services and suppliers to support
health and disease prevention programs.
(2)(A) In carrying out the purposes of this subsection, thePresident shall promote, encourage, and undertake activities designed to deal directly with the special health needs of children andmothers. Such activities should utilize simple, available technologies which can significantly reduce childhood mortality, such as
improved and expanded immunization programs, oral rehydration
to combat diarrhoeal diseases, and education programs aimed at
improving nutrition and sanitation and at promoting child spacing.
In carrying out this paragraph, guidance shall be sought fromknowledgeable health professionals from outside the agency primarily responsible for administering this part. In addition to government-to-government programs, activities pursuant to this paragraph should include support for appropriate activities of the types
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described in this paragraph which are carried out by internationalorganizations (which may include international organizations receiving funds under chapter 3 of this part) and by private and voluntary organizations, and should include encouragement to other
donors to support such types of activities.
(B) In addition to amounts otherwise available for such purpose, there are authorized to be appropriated to the President$25,000,000 for fiscal year 1986 and $75,000,000 for fiscal year
1987 for use in carrying out this paragraph. Amounts appropriatedunder this subparagraph are authorized to remain available until
expended.
(C) Appropriations pursuant to subparagraph (B) may be referred to as the ‘‘Child Survival Fund.’’(3) The Congress recognizes that the promotion of primary
health care is a major objective of the foreign assistance program.
The Congress further recognizes that simple, relatively low-costmeans already exist to reduce incidence of communicable diseases
among children, mothers, and infants. The promotion of vaccines
for immunization, and salts for oral rehydration, therefore, is an
essential feature of the health assistance program. To this end, theCongress expects the agency primarily responsible for administering this part to set as a goal the protection of not less than
80 percent of all children, in those countries in which such agency
has established development programs, from immunizable diseases
by January 1, 1991. Of the aggregate amounts made available forfiscal year 1987 to carry out paragraph (2) of this subsection (relating to the Child Survival Fund) and to carry out subsection (c) (relating to development assistance for health), $50,000,000 shall be
used to carry out this paragraph.
(4) RELATIONSHIP TO OTHER LAWS.—Assistance made available
under this subsection and sections 104A, 104B, and 104C, and assistance made available under chapter 4 of part II to carry out the
purposes of this subsection and the provisions cited in this paragraph, may be made available notwithstanding any other provisionof law that restricts assistance to foreign countries, except for theprovisions of this subsection, the provisions of law cited in thisparagraph, subsection (f), section 634A of this Act, and provisionsof law that limit assistance to organizations that support or participate in a program of coercive abortion or involuntary sterilization
included under the Child Survival and Health Programs Fundheading in the Consolidated Appropriations Resolution, 2003 (Public Law 108–7).
(d) INTEGRATION OF ASSISTANCE PROGRAMS.—(1) Assistanceunder this chapter shall be administered so as to give particularattention to the interrelationship between (A) population growth,and (B) development and overall improvement in living standards
in developing countries, and to the impact of all programs, projects,
and activities on population growth. All appropriate activities proposed for financing under this chapter shall be designed to build
motivation for smaller families through modification of economic
and social conditions supportive of the desire for large families, inprograms such as education in and out of school, nutrition, disease
control, maternal and child health services, improvements in thestatus and employment of women, agricultural production, rural
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development, and assistance to the urban poor, and through community-based development programs which give recognition to people motivated to limit the size of their families. Population planning programs shall be coordinated with other programs aimed at
reducing the infant mortality rate, providing better nutrition for
pregnant women and infants, and raising the standard of living of
the poor.
(2) Since the problems of malnutrition, disease, and rapid population growth are closely related, planning for assistance to beprovided 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 lowcost integrated delivery systems for health, nutrition, and familyplanning for the poorest people, with particular attention to theneeds of mothers and young children, using paramedical and auxiliary medical personnel, clinics and health posts, commercial distribution systems, and other modes of community outreach.
(e) RESEARCH AND ANALYSIS.—(1) Health and population research and analysis carried out under this Act shall—(A) be undertaken to the maximum extent practicable indeveloping countries by developing country personnel, linked
as appropriate with private and governmental biomedical research facilities within the United States;(B) take account of the special needs of the poor people ofdeveloping countries in the determination of research priorities; and(C) make extensive use of field testing to adapt basic research to local conditions.
(2) The President is authorized to study the complex factors affecting 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 USE OF FUNDS FOR ABORTIONS AND INVOLUNTARY STERILIZATIONS.—(1) None of the funds made available tocarry out this part may be used to pay for the performance of abortions as a method of family planning or to motivate or coerce any
person to practice abortions.
(2) None of the funds made available to carry out this part may
be used to pay for the performance of involuntary sterilizations asa method of family planning or to coerce or provide any financial
incentive to any person to undergo sterilizations.
(3) None of the funds made available to carry out this part may
be used to pay for any biomedical research which relates, in whole
or in part, to methods of, or the performance of, abortions or involuntary sterilization as a means of family planning.
(g) AUTHORIZATIONS OF APPROPRIATIONS.—(1) There are authorized to be appropriated to the President, in addition to funds
otherwise available for such purposes—(A) $290,000,000 for fiscal year 1986 and $290,000,000 for
fiscal year 1987 to carry out subsection (b) of this section; and(B) $205,000,000 for fiscal year 1986 and $180,000,000 for
fiscal year 1987 to carry out subsection (c) of this section.
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14(2) Funds appropriated under this subsection are authorized toremain available until expended.
SEC. 104A. ø22 U.S.C. 2151b–2¿ ASSISTANCE TO COMBAT HIV/AIDS.
(a) FINDING.—Congress recognizes that the alarming spread of

HIV/AIDS in countries in sub-Saharan Africa, the Caribbean, Central Asia, Eastern Europe, Latin America and other developing
countries is a major global health, national security, development,
and humanitarian crisis.
(b) POLICY.—(1) OBJECTIVES.—It is a major objective of the foreign assistance program of the United States to provide assistance forthe prevention and treatment of HIV/AIDS and the care ofthose affected by the disease. It is the policy objective of theUnited States, by 2013, to—(A) assist partner countries to—(i) prevent 12,000,000 new HIV infections worldwide;(ii) support—(I) the increase in the number of individuals
with HIV/AIDS receiving antiretroviral treatment
above the goal established under section 402(a)(3)and increased pursuant to paragraphs (1) through(3) of section 403(d); and(II) additional treatment through coordinatedmultilateral efforts;(iii) support care for 12,000,000 individuals infected with or affected by HIV/AIDS, including
5,000,000 orphans and vulnerable children affected by
HIV/AIDS, with an emphasis on promoting a comprehensive, coordinated system of services to be integrated throughout the continuum of care;(iv) provide at least 80 percent of the target population with access to counseling, testing, and treatment to prevent the transmission of HIV from motherto-child;(v) provide care and treatment services to children
with HIV in proportion to their percentage within the
HIV-infected population of a given partner country;and(vi) train and support retention of health care professionals, paraprofessionals, and community healthworkers in HIV/AIDS prevention, treatment, and care,with the target of providing such training to at least
140,000 new health care professionals and paraprofessionals with an emphasis on training and in country
deployment of critically needed doctors and nurses;(B) strengthen the capacity to deliver primary healthcare in developing countries, especially in sub-Saharan Africa;(C) support and help countries in their efforts toachieve staffing levels of at least 2.3 doctors, nurses, andmidwives per 1,000 population, as called for by the World
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Sec. 104A(D) help partner countries to develop independent,
sustainable HIV/AIDS programs.
(2) COORDINATED GLOBAL STRATEGY.—The United Statesand other countries with the sufficient capacity should provide
assistance to countries in sub-Saharan Africa, the Caribbean,
Central Asia, Eastern Europe, and Latin America, and othercountries and regions confronting HIV/AIDS epidemics in a coordinated global strategy to help address generalized and concentrated epidemics through HIV/AIDS prevention, treatment,
care, monitoring and evaluation, and related activities.
(3) PRIORITIES.—The United States Government’s responseto the global HIV/AIDS pandemic and the Government’s efforts
to help countries assume leadership of sustainable campaigns
to combat their local epidemics should place high priority on—(A) the prevention of the transmission of HIV;(B) moving toward universal access to HIV/AIDS prevention counseling and services;(C) the inclusion of cost sharing assurances that meetthe requirements under section 110; and(D) the inclusion of transition strategies to ensure sustainability of such programs and activities, including
health care systems, under other international donor support, or budget support by respective foreign governments.
(c) AUTHORIZATION.—(1) IN GENERAL.—Consistent with section 104(c), the President is authorized to furnish assistance, on such terms andconditions as the President may determine, for HIV/AIDS, including to prevent, treat, and monitor HIV/AIDS, and carry out
related activities, in countries in sub-Saharan Africa, the Caribbean, Central Asia, Eastern Europe, Latin America, andother countries and areas, particularly with respect to refugee
populations or those in postconflict settings in such countries
and areas with significant or increasing HIV incidence rates.
(2) ROLE OF NGOS.—It is the sense of Congress that the
President should provide an appropriate level of assistanceunder paragraph (1) through nongovernmental organizations(including faith-based and community-based organizations) incountries in sub-Saharan Africa, the Caribbean, Central Asia,
Eastern Europe, Latin America, and other countries and areas
affected by the HIV/AIDS pandemic, particularly with respect
to refugee populations or those in post-conflict settings in suchcountries and areas with significant or increasing HIV incidence rates.. 1(3) COORDINATION OF ASSISTANCE EFFORTS.—The President
shall coordinate the provision of assistance under paragraph(1) with the provision of related assistance by the Joint United
Nations Programme on HIV/AIDS (UNAIDS), the United Nations Children’s Fund (UNICEF), the World Health Organization (WHO), the United Nations Development Programme(UNDP), the Global Fund to Fight AIDS, Tuberculosis and Malaria and other appropriate international organizations (suchas the International Bank for Reconstruction and Develop1 So in law. There are two periods at the end of paragraph (2).

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16ment), relevant regional multilateral development institutions,
national, state, and local governments of partner countries,
other international actors,, 2 appropriate governmental andnongovernmental organizations, and relevant executive branchagencies within the framework of the principles of the Three
Ones.
(d) ACTIVITIES SUPPORTED.—Assistance provided under subsection (c) shall, to the maximum extent practicable, be used tocarry out the following activities:(1) PREVENTION.—Prevention of HIV/AIDS through activities including—(A) programs and efforts that are designed or intended
to impart knowledge with the exclusive purpose of helping
individuals avoid behaviors that place them at risk of HIV
infection, including integration of such programs into
health programs and the inclusion in counseling programsof information on methods of avoiding infection of HIV, including delaying sexual debut, abstinence, fidelity and monogamy, reduction of casual sexual partnering and multiple concurrent sexual partnering,, 3 reducing sexual violence and coercion, including child marriage, widow inheritance, and polygamy, and where appropriate, use of maleand female condoms;(B) assistance to establish and implement culturally
appropriate HIV/AIDS education and prevention programs
that are designed with local input and focus on helping individuals avoid infection of HIV/AIDS, implemented
through nongovernmental organizations, including faithbased and community-based organizations, particularly
those locally based organizations that utilize both professionals and volunteers with appropriate skills, experience,and community presence;(C) assistance for the purpose of encouraging men to
be responsible in their sexual behavior, child rearing, andto respect women;(D) assistance for the purpose of providing voluntary
testing and counseling (including the incorporation of confidentiality protections with respect to such testing andcounseling) and promoting the use of provider-initiated or‘‘opt-out’’ voluntary testing in accordance with World
Health Organization guidelines;(E) assistance for the purpose of preventing mother-tochild transmission of the HIV infection, including medications to prevent such transmission and access to infant formula and other alternatives for infant feeding;(F) assistance to—(i) achieve the goal of reaching 80 percent of pregnant women for prevention and treatment of motherto-child transmission of HIV in countries in which theUnited States is implementing HIV/AIDS programs by
2013; and2 So in law.
3 So in law.

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Sec. 104A(ii) promote infant feeding options and treatment
protocols that meet the most recent criteria established by the World Health Organization;(G) medical male circumcision programs as part of national strategies to combat the transmission of HIV/AIDS;(H) assistance to ensure a safe blood supply and sterile medical equipment;(I) assistance to help avoid substance abuse and intravenous drug use that can lead to HIV infection;(J) assistance for the purpose of increasing women’s
access to employment opportunities, income, productive resources, and microfinance programs, where appropriate. 4(K) assistance for counseling, testing, treatment, care,and support programs, including—(i) counseling and other services for the prevention of reinfection of individuals with HIV/AIDS;(ii) counseling to prevent sexual transmission ofHIV, including—(I) life skills development for practicing abstinence and faithfulness;(II) reducing the number of sexual partners;(III) delaying sexual debut; and(IV) ensuring correct and consistent use of
condoms;(iii)
assistancetoengageunderlying
vulnerabilities to HIV/AIDS, especially those of womenand girls;(iv) assistance for appropriate HIV/AIDS education programs and training targeted to prevent thetransmission of HIV among men who have sex withmen;(v) assistance to provide male and female
condoms;(vi) diagnosis and treatment of other sexuallytransmitted infections;(vii) strategies to address the stigma and discrimination that impede HIV/AIDS prevention efforts; and(viii) assistance to facilitate widespread access to
microbicides for HIV prevention, if safe and effective
products become available, including financial andtechnical support for culturally appropriate introductory programs, procurement, distribution, logistics
management, program delivery, acceptability studies,
providertraining,
demandgeneration,andpostintroduction monitoring.
(2) TREATMENT.—The treatment and care of individuals
with HIV/AIDS, including—(A) assistance to establish and implement programs tostrengthen and broaden indigenous health care delivery
systems and the capacity of such systems to deliver HIV/AIDS pharmaceuticals and otherwise provide for the treatment of individuals with HIV/AIDS, including clinical
4 So in law. The period at the end of subparagraph (J) should probably be ‘‘; and’’.

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training for indigenous organizations and health care providers;(B) assistance to strengthen and expand hospice andpalliative care programs to assist patients debilitated by
HIV/AIDS, their families, and the primary caregivers ofsuch patients, including programs that utilize faith-basedand community-based organizations;(C) assistance for the purpose of the care and treatment of individuals with HIV/AIDS through the provisionof pharmaceuticals, including antiretrovirals and otherpharmaceuticals and therapies for the treatment of opportunistic infections, pain management, nutritional support,
and other treatment modalities;(D) as part of care and treatment of HIV/AIDS, assistance (including prophylaxis and treatment) for common
HIV/AIDS-related opportunistic infections for free or at a
rate at which it is easily affordable to the individuals andpopulations being served; 5(E) as part of care and treatment of HIV/AIDS, assistance or referral to available and adequately resourced
service providers for nutritional support, including counseling and where necessary the provision of commodities,
for persons meeting malnourishment criteria and theirfamilies; 5(3) PREVENTATIVE INTERVENTION EDUCATION AND TECHNOLOGIES.—(A) With particular emphasis on specific populations that represent a particularly high risk of contracting or
spreading HIV/AIDS, including those exploited through the sex
trade, victims of rape and sexual assault, individuals alreadyinfected with HIV/AIDS, and in cases of occupational exposureof health care workers, assistance with efforts to reduce therisk of HIV/AIDS infection including post-exposure pharmaceutical prophylaxis, and necessary pharmaceuticals and commodities, including test kits, condoms, and, when proven effective, microbicides.
(B) Bulk purchases of available test kits, condoms, and,
when proven effective, microbicides that are intended to reduce
the risk of HIV/AIDS transmission and for appropriate program support for the introduction and distribution of thesecommodities, as well as education and training on the use of
the technologies.
(4) MONITORING.—The monitoring of programs, projects,
and activities carried out pursuant to paragraphs (1) through(3), including—(A) monitoring to ensure that adequate controls are
established and implemented to provide HIV/AIDS pharmaceuticals and other appropriate medicines to poor individuals with HIV/AIDS;(B) appropriate evaluation and surveillance activities;(C) monitoring to ensure that appropriate measures
are being taken to maintain the sustainability of HIV/
5 So in law. Probably should include the word ‘‘and’’ after the semicolon at the end of subparagraph (D) and the semicolon at the end of subparagraph (E) should be a period.

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AIDS pharmaceuticals (especially antiretrovirals) and ensure that drug resistance is not compromising the benefitsof such pharmaceuticals;(D) monitoring to ensure appropriate law enforcement
officials are working to ensure that HIV/AIDS pharmaceuticals are not diminished through illegal counterfeitingor black market sales of such pharmaceuticals;(E) carrying out and expanding program monitoring,
impact evaluation research and analysis, and operations
research and disseminating data and findings throughmechanisms to be developed by the Coordinator of UnitedStates Government Activities to Combat HIV/AIDS Globally, in coordination with the Director of the Centers for
Disease Control, in order to—(i) improve accountability, increase transparency,
and ensure the delivery of evidence-based services
through the collection, evaluation, and analysis of data
regardinggender-responsive
interventions,disaggregated by age and sex;(ii) identify and replicate effective models; and(iii) develop gender indicators to measure outcomes and the impacts of interventions; and(F) establishing appropriate systems to—(i) gather epidemiological and social science dataon HIV; and(ii) evaluate the effectiveness of prevention efforts
among men who have sex with men, with due consideration to stigma and risks associated with disclosure.
(5) PHARMACEUTICALS.—(A) PROCUREMENT.—The procurement of HIV/AIDS
pharmaceuticals, antiviral therapies, and other appropriate medicines, including medicines to treat opportunistic infections.
(B) MECHANISMS FOR QUALITY CONTROL AND SUSTAINABLE SUPPLY.—Mechanisms to ensure that such HIV/AIDS
pharmaceuticals, antiretroviral therapies, and other appropriate medicines are quality-controlled and sustainably
supplied.
(C) MECHANISM TO ENSURE COST-EFFECTIVE DRUG PURCHASING.—Subject to subparagraph (B), mechanisms to ensure that safe and effective pharmaceuticals, including
antiretrovirals and medicines to treat opportunistic infections, are purchased at the lowest possible price at whichsuch pharmaceuticals may be obtained in sufficient quantity on the world market, provided that such pharmaceuticals are approved, tentatively approved, or otherwise
authorized for use by—(i) the Food and Drug Administration;(ii) a stringent regulatory agency acceptable to theSecretary of Health and Human Services; or(iii) a quality assurance mechanism acceptable to
the Secretary of Health and Human Services.
(D) DISTRIBUTION.—The distribution of such HIV/AIDS
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priate medicines (including medicines to treat opportunistic infections) to qualified national, regional, or local organizations for the treatment of individuals with HIV/AIDS in accordance with appropriate HIV/AIDS testing
and monitoring requirements and treatment protocols andfor the prevention of mother-to-child transmission of the
HIV infection.
(6) RELATED AND COORDINATED ACTIVITIES.—The conductof related activities, including—(A) the care and support of children who are orphanedby the HIV/AIDS pandemic, including services designed tocare for orphaned children in a family environment which
rely on extended family members;(B) improved infrastructure and institutional capacity
to develop and manage education, prevention, and treatment programs, including training and the resources tocollect and maintain accurate HIV surveillance data to target programs and measure the effectiveness of interventions;(C) vaccine research and development partnership programs with specific plans of action to develop a safe, effective, accessible, preventive HIV vaccine for use throughout
the world; and(D) coordinated or referred activities to—(i) enhance the clinical impact of HIV/AIDS careand treatment; and(ii) ameliorate the adverse social and economic
costs often affecting AIDS-impacted families and communities through the direct provision, as necessary, or
through the referral, if possible, of support services,
including—(I) nutritional and food support;(II) safe drinking water and adequate sanitation;(III) nutritional counseling;(IV) income-generating activities and livelihood initiatives;(V) maternal and child health care;(VI) primary health care;(VII) the diagnosis and treatment of other infectious or sexually transmitted diseases;(VIII) substance abuse and treatment services; and(IX) legal services;(E) coordinated or referred activities to link programs
addressing HIV/AIDS with programs addressing genderbased violence in areas of significant HIV prevalence to assist countries in the development and enforcement of women’s health, children’s health, and HIV/AIDS laws andpolicies that—(i) prevent and respond to violence against womenand girls;
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Sec. 104A(ii) promote the integration of screening and assessment for gender-based violence into HIV/AIDS
programming;(iii) promote appropriate HIV/AIDS counseling,
testing, and treatment into gender-based violence programs; and(iv) assist governments to develop partnerships
with civil society organizations to create networks forpsychosocial, legal, economic, or other support services;(F) coordinated or referred activities to—(i) address the frequent coinfection of HIV and tuberculosis, in accordance with World Health Organization guidelines;(ii) promote provider-initiated or ‘‘opt-out’’ HIV/AIDS counseling and testing and appropriate referral
for treatment and care to individuals with tuberculosis
or its symptoms, particularly in areas with significant
HIV prevalence; and(iii) strengthen programs to ensure that individuals testing positive for HIV receive tuberculosis
screening and to improve laboratory capacities, infection control, and adherence; and(G) activities to—(i) improve the effectiveness of national responses
to HIV/AIDS;(ii) strengthen overall health systems in highprevalence countries, including support for workforce
training, retention, and effective deployment, capacity
building, laboratory development, equipment maintenance and repair, and public health and related publicfinancial management systems and operations; and(iii) encourage fair and transparent procurement
practices among partner countries; and(iv) promote in-country or intra-regional pediatrictraining for physicians and other health professionals,
preferably through public-private partnerships involving colleges and universities, with the goal of increasing pediatric HIV workforce capacity.
(7) COMPREHENSIVE HIV/AIDS PUBLIC-PRIVATE PARTNERSHIPS.—The establishment and operation of public-private
partnership entities within countries in sub-Saharan Africa,
the Caribbean, and other countries affected by the HIV/AIDS
pandemic that are dedicated to supporting the national strategy of such countries regarding the prevention, treatment, andmonitoring of HIV/AIDS. Each such public-private partnershipshould—(A) support the development, implementation, andmanagement of comprehensive HIV/AIDS plans in supportof the national HIV/AIDS strategy;(B) operate at all times in a manner that emphasizes
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cies, academic institutions, nongovernmental organizations, foundations, multilateral development agencies, andfaith-based organizations, to assist the country in coordinating and implementing HIV/AIDS prevention, treatment, and monitoring programs in accordance with its national HIV/AIDS strategy;(D) provide technical assistance, consultant services,financial planning, monitoring and evaluation, and research in support of the national HIV/AIDS strategy; and(E) establish local human resource capacities for thenational HIV/AIDS strategy through the transfer of medical, managerial, leadership, and technical skills.
(8) COMPACTS AND FRAMEWORK AGREEMENTS.—The development of compacts or framework agreements, tailored to local
circumstances, with national governments or regional partnerships in countries with significant HIV/AIDS burdens to promote host government commitment to deeper integration of
HIV/AIDS services into health systems, contribute to healthsystems overall, and enhance sustainability, including—(A) cost sharing assurances that meet the requirements under section 110; and(B) transition strategies to ensure sustainability ofsuch programs and activities, including health care systems, under other international donor support, or budget
support by respective foreign governments.
(e) COMPACTS AND FRAMEWORK AGREEMENTS.—(1) FINDINGS.—Congress makes the following findings:(A) The congressionally mandated Institute of Medicine report entitled ‘‘PEPFAR Implementation: Progress
and Promise’’ states: ‘‘The next strategy øof the U.S. Global AIDS Initiative¿ should squarely address the needs andchallenges involved in supporting sustainable country HIV/AIDS programs, thereby transitioning from a focus on
emergency relief.’’.
(B) One mechanism to promote the transition from anemergency to a public health and development approach to
HIV/AIDS is through compacts or framework agreements
between the United States Government and each participating nation.
(2) ELEMENTS.—Compacts on HIV/AIDS authorized undersubsection (d)(8) shall include the following elements:(A) Compacts whose primary purpose is to provide direct services to combat HIV/AIDS are to be made between—(i) the United States Government; and(ii)(I) national or regional entities representing
low-income countries served by an existing UnitedStates Agency for International Development or Department of Health and Human Services presence orregional platform; or(II) countries or regions—(aa) experiencing significantly high HIV prevalence or risk of significantly increasing incidence
within the general population;
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Sec. 104A(bb) served by an existing United States
Agency for International Development or Department of Health and Human Services presence orregional platform; and(cc) that have inadequate financial means
within such country or region.
(B) Compacts whose primary purpose is to provide limited technical assistance to a country or region connected
to services provided within the country or region—(i) may be made with other countries or regional
entities served by an existing United States Agency
for International Development or Department of
Health and Human Services presence or regional platform;(ii) shall require significant investments in HIV
prevention, care, and treatment services by the hostcountry;(iii) shall be time-limited in terms of UnitedStates contributions; and(iv) shall be made only upon prior notification toCongress—(I) justifying the need for such compacts;(II) describing the expected investment by thecountry or regional entity; and(III) describing the scope, nature, expected
total United States investment, and time frame of
the limited technical assistance under the compact
and its intended impact.
(C) Compacts shall include provisions to—(i) promote local and national efforts to reduce
stigma associated with HIV/AIDS; and(ii) work with and promote the role of civil society
in combating HIV/AIDS.
(D) Compacts shall take into account the overall national health and development and national HIV/AIDS andpublic health strategies of each country.
(E) Compacts shall contain—(i) consideration of the specific objectives that thecountry and the United States expect to achieve during the term of a compact;(ii) consideration of the respective responsibilitiesof the country and the United States in the achievement of such objectives;(iii) consideration of regular benchmarks to measure progress toward achieving such objectives;(iv) an identification of the intended beneficiaries,
disaggregated by gender and age, and including information on orphans and vulnerable children, to the
maximum extent practicable;(v) consideration of the methods by which thecompact is intended to—(I) address the factors that put women andgirls at greater risk of HIV/AIDS; andJune 10, 2019

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24(II) strengthen elements such as the economic, educational, and social status of women,
girls, orphans, and vulnerable children and the inheritance rights and safety of such individuals;(vi) consideration of the methods by which thecompact will—(I) strengthen the health care capacity, including factors such as the training, retention, deployment, recruitment, and utilization of healthcare workers;(II) improve supply chain management; and(III) improve the health systems and infrastructure of the partner country, including theability of compact participants to maintain andoperate equipment transferred or purchased aspart of the compact;(vii) consideration of proposed mechanisms to provide oversight;(viii) consideration of the role of civil society in thedevelopment of a compact and the achievement of its
objectives;(ix) a description of the current and potential participation of other donors in the achievement of suchobjectives, as appropriate; and(x) consideration of a plan to ensure appropriate
fiscal accountability for the use of assistance.
(F) For regional compacts, priority shall be given tocountries that are included in regional funds and programsin existence as of the date of the enactment of the Tom
Lantos and Henry J. Hyde United States Global Leadership Against HIV/AIDS, Tuberculosis, and Malaria Reauthorization Act of 2008.
(G) Amounts made available for compacts described insubparagraphs (A) and (B) shall be subject to the inclusionof—(i) cost sharing assurances that meet the requirements under section 110; and(ii) transition strategies to ensure sustainability ofsuch programs and activities, including health caresystems, under other international donor support, andbudget support by respective foreign governments.
(3) LOCAL INPUT.—In entering into a compact on HIV/AIDS
authorized under subsection (d)(8), the Coordinator of UnitedStates Government Activities to Combat HIV/AIDS Globallyshall seek to ensure that the government of a country—(A) takes into account the local perspectives of therural and urban poor, including women, in each country;and(B) consults with private and voluntary organizations,
including faith-based organizations, the business community, and other donors in the country.
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ing into a compact authorized under subsection (d)(8), theGlobal AIDS Coordinator shall—(A) submit a report containing a detailed summary of
the compact and a copy of the text of the compact to—(i) the Committee on Foreign Relations of the Senate;(ii) the Committee on Appropriations of the Senate;(iii) the Committee on Foreign Affairs of theHouse of Representatives; and(iv) the Committee on Appropriations of the Houseof Representatives; and(B) publish such information in the Federal Registerand on the Internet website of the Office of the Global
AIDS Coordinator.
(f) ANNUAL REPORT.—(1) IN GENERAL.—Not later than February 15, 2014, andannually thereafter, the President shall submit to the Committee on Foreign Relations of the Senate and the Committee
on Foreign Affairs of the House of Representatives a report inan open, machine readable format, on the implementation ofthis section for the prior fiscal year.
(2) REPORT DUE IN 2014.—The report due not later thanFebruary 15, 2014, shall include the elements required by law
prior to the enactment of the PEPFAR Stewardship and Oversight Act of 2013.
(3) REPORT ELEMENTS.—Each report submitted after February 15, 2014, shall include the following:(A) A description based on internationally available
data, and where practicable high-quality country-based
data, of the total global burden and need for HIV/AIDS
prevention, treatment, and care, including—(i) estimates by partner country of the global burden and need; and(ii) HIV incidence, prevalence, and AIDS deaths
for the reporting period.
(B) Reporting on annual targets across prevention,
treatment, and care interventions in partner countries, including—(i) a description of how those targets are designedto—(I) ensure that the annual increase in new patients on antiretroviral treatment exceeds thenumber of annual new HIV infections;(II) reduce the number of new HIV infections
below the number of deaths among persons infected with HIV; and(III) achieve an AIDS-free generation;(ii) national targets across prevention, treatment,
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26

progress towards developing national partnercountry targets; and(iii) bilateral programmatic targets across prevention, treatment, and care, including—(I) the number of adults and children to be directly supported on HIV treatment under UnitedStates-funded programs;(II) the number of adults and children to beotherwise supported on HIV treatment under
United States-funded programs; and(III) other programmatic targets for activities
directly and otherwise supported by UnitedStates-funded programs.
(C) A description, by partner country, of HIV/AIDS
funding from all sources, including funding levels frompartner countries, other donors, and the private sector, as
practicable.
(D) A description of how United States-funded programs, in conjunction with the Global Fund, other donors,
and partner countries, together set targets, measureprogress, and achieve positive outcomes in partner countries.
(E) An annual assessment of outcome indicator development, dissemination, and performance for programs supported under this section, including ongoing corrective actions to improve reporting.
(F) A description and explanation of changes in related
guidance or policies related to implementation of programs
supported under this section.
(G) An assessment and quantification of progress over
the reporting period toward achieving the targets set forthin subparagraph (B), including—(i) the number, by partner country, of persons on
HIV treatment, including specifically—(I) the number of adults and children on HIV
treatment directly supported by United Statesfunded programs; and(II) the number of adults and children on HIV
treatment otherwise supported by United Statesfunded programs;(ii) HIV treatment coverage rates by partner country;(iii) the net increase in persons on HIV treatment
by partner country;(iv) new infections of HIV by partner country;(v) the number of HIV infections averted;(vi) antiretroviral treatment program retention
rates by partner country, including—(I) performance against annual targets for
program retention; and(II) the retention rate of persons on HIV
treatment directly supported by United Statesfunded programs; and(vii) a description of supportive care.
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Sec. 104A(H) A description of partner country and UnitedStates-funded HIV/AIDS prevention programs and policies,
including—(i) an assessment by country of progress towards
targets set forth in subparagraph (B), with a detailed
description of the metrics used to assess—(I) programs to prevent mother to child transmission of HIV/AIDS, including coverage rates;(II) programs to provide or promote voluntary
medical male circumcision, including coverage
rates;(III) programs for behavior-change; and(IV) other programmatic activities to preventthe transmission of HIV;(ii) antiretroviral treatment as prevention; and(iii) a description of any new preventative interventions or methodologies.
(I) A description of the goals, scope, and measurementof program efforts aimed at women and girls.
(J) A description of the goals, scope, and measurementof program efforts aimed at orphans, vulnerable children,and youth.
(K) A description of the indicators and milestones used
to assess effective, strategic, and appropriately timed country ownership, including—(i) an explanation of the metrics used to determine
whether the pace of any transition to such ownershipis appropriate for that country, given that country’slevel of readiness for such transition;(ii) an analysis of governmental and local nongovernmental capacity to sustain positive outcomes;(iii) a description of measures taken to improvepartner country capacity to sustain positive outcomes
where needed; and(iv) for countries undergoing a transition to greater country ownership, a description of strategies to assess and mitigate programmatic and financial risk andto ensure continued quality of care for essential services.
(L) A description, globally and by partner country, of
specific efforts to achieve and incentivize greater programmatic and cost effectiveness, including—(i) progress toward establishing common economic
metrics across prevention, care and treatment withpartner countries and the Global Fund;(ii) average costs, by country and by core intervention;(iii) expenditure reporting in all program areas,
supplemented with targeted analyses of the cost-effectiveness of specific interventions; and(iv) import duties and internal taxes imposed onprogram commodities and services, by country.
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28(M) A description of partnership framework agreements with countries, and regions where applicable, including—(i) the objectives and structure of partnershipframework agreements with countries, including—(I) how these agreements are aligned with national HIV/AIDS plans and public health strategies and commitments of such countries; and(II) how these agreements incorporate a rolefor civil society; and(ii) a description of what has been learned in advancing partnership framework agreements with countries, and regions as applicable, in terms of improved
coordination and collaboration, definition of clear roles
and responsibilities of participants and signers, andimplications for how to further strengthen these agreements with mutually accountable measures ofprogress.
(N) A description of efforts and activities to engage
new partners, including faith-based, locally-based, andUnited States minority-serving institutions.
(O) A definition and description of the differentiation
between directly and otherwise supported activities, including specific efforts to clarify programmatic attribution
and contribution, as well as timelines for disseminationand implementation.
(P) A description, globally and by country, of specificefforts to address co-infections and co-morbidities of HIV/
AIDS, including—(i) the number and percent of people in HIV careor treatment who started tuberculosis treatment; and(ii) the number and percentage of eligible HIV
positive patients starting isoniazid preventative therapy.
(Q) A description of efforts by partner countries totrain, employ, and retain health care workers, including
efforts to address workforce shortages.
(R) A description of program evaluations completed
during the reporting period, including whether all completed evaluations have been published on a publicallyavailable Internet website and whether any completed
evaluations did not adhere to the common evaluation
standards of practice published under paragraph (4).
(4) COMMON EVALUATION STANDARDS.—Not later than February 1, 2014, the Global AIDS Coordinator shall publish on a
publically available Internet website the common evaluation
standards of practice referred to in paragraph (3)(R).
(5) PARTNER COUNTRY DEFINED.—In this subsection, theterm ‘‘partner country’’ means a country with a minimum
United States Government investment of HIV/AIDS assistanceof at least $5,000,000 in the prior fiscal year.
(g) FUNDING LIMITATION.—Of the funds made available tocarry out this section in any fiscal year, not more than 7 percent
may be used for the administrative expenses of the United States
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Sec. 104B

Agency for International Development in support of activities described in section 104(c), this section, section 104B, and section
104C. Such amount shall be in addition to other amounts otherwise
available for such purposes.
(h) DEFINITIONS.—In this section:(1) AIDS.—The term ‘‘AIDS’’ means acquired immune deficiency syndrome.
(2) HIV.—The term ‘‘HIV’’ means the human immunodeficiency virus, the pathogen that causes AIDS.
(3) HIV/AIDS.—The term ‘‘HIV/AIDS’’ means, with respect
to an individual, an individual who is infected with HIV or living with AIDS.
(4) RELEVANT EXECUTIVE BRANCH AGENCIES.—The term‘‘relevant executive branch agencies’’ means the Department ofState, the United States Agency for International Development, the Department of Health and Human Services (including its agencies and offices), and any other department or
agency of the United States that participates in international
HIV/AIDS activities pursuant to the authorities of such department or agency or this Act.
SEC. 104B. ø22 U.S.C. 2151b–3¿ ASSISTANCE TO COMBAT TUBERCULOSIS.
(a) FINDINGS.—Congress makes the following findings:(1) Congress recognizes the growing international problemof tuberculosis and the impact its continued existence has on
those countries that had previously largely controlled the disease.
(2) Congress further recognizes that the means exist tocontrol and treat tuberculosis through expanded use of the
DOTS (Directly Observed Treatment Short-course) treatment
strategy, including DOTS-Plus to address multi-drug resistanttuberculosis, and adequate investment in newly created mechanisms to increase access to treatment, including the Global Tuberculosis Drug Facility established in 2001 pursuant to the
Amsterdam Declaration to Stop TB and the Global Alliance for
TB Drug Development.
(b) POLICY.—It is a major objective of the foreign assistanceprogram of the United States to control tuberculosis. In all countries in which the Government of the United States has establisheddevelopment programs, particularly in countries with the highest
burden of tuberculosis and other countries with high rates of tuberculosis, the United States should support the objectives of the Global Plan to Stop TB, including through achievement of the following
goals:(1) Reduce by half the tuberculosis death and disease burden from the 1990 baseline.
(2) Sustain or exceed the detection of at least 70 percentof sputum smear-positive cases of tuberculosis and the successful treatment of at least 85 percent of the cases detected incountries with established United States Agency for International Development tuberculosis programs.
(3) In support of the Global Plan to Stop TB, the President
shall establish a comprehensive, 5-year United States strategy
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to expand and improve United States efforts to combat tuberculosis globally, including a plan to support—(A) the successful treatment of 4,500,000 new sputum
smear tuberculosis patients under DOTS programs by
2013, primarily through direct support for needed services,
commodities, health workers, and training, and additional
treatment through coordinated multilateral efforts; and(B) the diagnosis and treatment of 90,000 new multiple drug resistant tuberculosis cases by 2013, and additional treatment through coordinated multilateral efforts.
(c) AUTHORIZATION.—To carry out this section and consistent
with section 104(c), the President is authorized to furnish assistance, on such terms and conditions as the President may determine, for the prevention, treatment, control, and elimination of tuberculosis.
(d) COORDINATION.—In carrying out this section, the President
shall coordinate with the World Health Organization, the Global
Fund to Fight AIDS, Tuberculosis, and Malaria, and other organizations with respect to the development and implementation of acomprehensive tuberculosis control program.
(e) PRIORITY TO STOP TB STRATEGY.—In furnishing assistanceunder subsection (c), the President shall give priority to—(1) direct services described in the Stop TB Strategy, including expansion and enhancement of Directly Observed
Treatment Short-course (DOTS) coverage, rapid testing, treatment for individuals infected with both tuberculosis and HIV,and treatment for individuals with multi-drug resistant tuberculosis (MDR–TB), strengthening of health systems, use of theInternational Standards for Tuberculosis Care by all providers,
empowering individuals with tuberculosis, and enabling andpromoting research to develop new diagnostics, drugs, and vaccines, and program-based operational research relating to tuberculosis; and(2) funding for the Global Tuberculosis Drug Facility, theStop Tuberculosis Partnership, and the Global Alliance for TB
Drug Development.
(f) ASSISTANCE FOR THE WORLD HEALTH ORGANIZATION AND
THE STOP TUBERCULOSIS PARTNERSHIP.—In carrying out this section, the President, acting through the Administrator of the UnitedStates Agency for International Development, is authorized to provide increased resources to the World Health Organization and theStop Tuberculosis Partnership to improve the capacity of countries
with high rates of tuberculosis and other affected countries to implement the Stop TB Strategy and specific strategies related to addressing multiple drug resistant tuberculosis (MDR–TB) and extensively drug resistant tuberculosis (XDR–TB).
(g) ANNUAL REPORT.—The President shall submit an annual
report to Congress that describes the impact of United States foreign assistance on efforts to control tuberculosis, including—(1) the number of tuberculosis cases diagnosed and thenumber of cases cured in countries receiving United States bilateral foreign assistance for tuberculosis control purposes;(2) a description of activities supported with United States
tuberculosis resources in each country, including a description
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of how those activities specifically contribute to increasing thenumber of people diagnosed and treated for tuberculosis;(3) in each country receiving bilateral United States foreign assistance for tuberculosis control purposes, the percentage provided for direct tuberculosis services in countries receiving United States bilateral foreign assistance for tuberculosis
control purposes;(4) a description of research efforts and clinical trials to develop new tools to combat tuberculosis, including diagnostics,
drugs, and vaccines supported by United States bilateral assistance;(5) the number of persons who have been diagnosed andstarted treatment for multidrug-resistant tuberculosis in countries receiving United States bilateral foreign assistance for tuberculosis control programs;(6) a description of the collaboration and coordination ofUnited States anti-tuberculosis efforts with the World HealthOrganization, the Global Fund, and other major public and private entities within the Stop TB Strategy;(7) the constraints on implementation of programs posedby health workforce shortages and capacities;(8) the number of people trained in tuberculosis control;and(9) a breakdown of expenditures for direct patient tuberculosis services, drugs and other commodities, drug management, training in diagnosis and treatment, health systems
strengthening, research, and support costs.
(h) DEFINITIONS.—In this section:(1) DOTS.—The term ‘‘DOTS’’ or ‘‘Directly Observed Treatment Short-course’’ means the World Health Organization-recommended strategy for treating tuberculosis including—(A) low-cost and effective diagnosis, treatment, andmonitoring of tuberculosis;(B) a reliable drug supply;(C) a management strategy for public health systems;(D) health system strengthening;(E) promotion of the use of the International Standards for Tuberculosis Care by all care providers;(F) bacteriology under an external quality assessment
framework;(G) short-course chemotherapy; and(H) sound reporting and recording systems.
(2) DOTS-PLUS.—The term ‘‘DOTS-Plus’’ means a comprehensive tuberculosis management strategy that is built
upon and works as a supplement to the standard DOTS strategy, and which takes into account specific issues (such as useof second line anti-tuberculosis drugs) that need to be addressed in areas where there is high prevalence of multi-drugresistant tuberculosis.
(3) GLOBAL ALLIANCE FOR TUBERCULOSIS DRUG DEVELOPMENT.—The term ‘‘Global Alliance for Tuberculosis Drug Development’’ means the public-private partnership that brings
together leaders in health, science, philanthropy, and private
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32

sure that new medications are available and affordable in hightuberculosis burden countries and other affected countries.
(4) GLOBAL TUBERCULOSIS DRUG FACILITY.—The term‘‘Global Tuberculosis Drug Facility (GDF)’’ means the new initiative of the Stop Tuberculosis Partnership to increase accessto high-quality tuberculosis drugs to facilitate DOTS expansion.
(5) STOP TB STRATEGY.—The term ‘‘Stop TB Strategy’’means the 6-point strategy to reduce tuberculosis developed by
the World Health Organization, which is described in the Global Plan to Stop TB 2006–2015: Actions for Life, a comprehensive plan developed by the Stop TB Partnership that sets out
the actions necessary to achieve the millennium development
goal of cutting tuberculosis deaths and disease burden in halfby 2015.
(6) STOP TUBERCULOSIS PARTNERSHIP.—The term ‘‘Stop Tuberculosis Partnership’’ means the partnership of the World
Health Organization, donors including the United States, hightuberculosis burden countries, multilateral agencies, and nongovernmental and technical agencies committed to short- andlong-term measures required to control and eventually eliminate tuberculosis as a public health problem in the world.
SEC. 104C. ø22 U.S.C. 2151b–4¿ ASSISTANCE TO COMBAT MALARIA.
(a) FINDING.—Congress finds that malaria kills more people

annually than any other communicable disease except tuberculosis,that more than 90 percent of all malaria cases are in sub-SaharanAfrica, and that children and women are particularly at risk. Congress recognizes that there are cost-effective tools to decrease thespread of malaria and that malaria is a curable disease if promptly
diagnosed and adequately treated.
(b) POLICY.—It is a major objective of the foreign assistanceprogram of the United States to provide assistance for the prevention, control, treatment, and cure of malaria.
(c) AUTHORIZATION.—To carry out this section and consistent
with section 104(c), the President is authorized to furnish assistance, on such terms and conditions as the President may determine, for the prevention, treatment, control, and elimination of malaria.
(d) COORDINATION.—In carrying out this section, the President
shall coordinate with the World Health Organization, the Global
Fund to Fight AIDS, Tuberculosis, and Malaria, the Department of
Health and Human Services (the Centers for Disease Control andPrevention and the National Institutes of Health), and other organizations with respect to the development and implementation of acomprehensive malaria control program.
SEC. 105. ø22 U.S.C. 2151c¿ EDUCATION AND HUMAN RESOURCES DEVELOPMENT.—(a) In order to reduce illiteracy, to extend
basic education, and to increase manpower training in skills related to development, the President is authorized to furnish assistance on such terms and conditions as he may determine, for education, public administration, and human resource development.
There are authorized to be appropriated to the President for the
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such purposes, $180,000,000 for fiscal year 1986 and $180,000,000
for fiscal year 1987, which are authorized to remain available until
expended.
(b) Assistance provided under this section shall be used primarily to expand and strengthen nonformal education methods, especially those designed to improve productive skills of rural families and the urban poor and to provide them with useful information; to increase the relevance of formal education systems to theneeds of the poor, especially at the primary level, through reformof curricula, teaching materials, and teaching methods, and improved teacher training; and to strengthen the management capabilities of institutions which enable the poor to participate in development. Assistance under this section shall also be provided for advanced education and training of people of developing countries insuch disciplines as are required for planning and implementationof public and private development activities.
(c) ASSISTANCE TO PROMOTE SUSTAINABLE, QUALITY BASICEDUCATION.—(1) DEFINITIONS.—In this subsection:(A) BASIC EDUCATION.—The term ‘‘basic education’’ includes—(i)measurable
improvements
inliteracy,
numeracy, and other basic skills development that
prepare an individual to be an active, productive member of society and the workforce;(ii) workforce development, vocational training,and digital literacy informed by real market needs andopportunities and that results in measurable improvements in employment;(iii) programs and activities designed to demonstrably improve—(I) early childhood, preprimary education, primary education, and secondary education, which
can be delivered in formal or nonformal education
settings; and(II) learning for out-of-school youth andadults; and(iv) capacity building for teachers, administrators,
counselors, and youth workers that results in measurable improvements in student literacy, numeracy, or
employment.
(B) COMMUNITIES OF LEARNING.—The term ‘‘communities of learning’’ means a holistic approach to educationand community engagement in which schools act as theprimary resource center for delivery of a service to thecommunity at large, leveraging and maximizing the impactof other development efforts and reducing duplication andwaste.
(C) GENDER PARITY IN BASIC EDUCATION.—The term‘‘gender parity in basic education’’ means that girls andboys have equal access to quality basic education.
(D) MARGINALIZED CHILDREN AND VULNERABLEGROUPS.—The term ‘‘marginalized children and vulnerable
groups’’ includes girls, children affected by or emerging
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34

from armed conflict or humanitarian crises, children withdisabilities, children in remote or rural areas (including
those who lack access to safe water and sanitation), religious or ethnic minorities, indigenous peoples, orphansand children affected by HIV/AIDS, child laborers, marriedadolescents, and victims of trafficking.
(E) NATIONAL EDUCATION PLAN.—The term ‘‘national
education plan’’ means a comprehensive national education
plan developed by partner country governments in consultation with other stakeholders as a means for widescale improvement of the country’s education system, including explicit, credible strategies informed by effective
practices and standards to achieve quality universal basic
education.
(F) NONFORMAL EDUCATION.—The term ‘‘nonformal
education’’ means organized educational activities outside
the established formal system, whether operating separately or as an important feature of a broader activity,that are intended to provide students with measurable improvements in literacy, numeracy, and other basic skills
development that prepare an individual to be an active,
productive member of society and the workforce.
(G) PARTNER COUNTRY.—The term ‘‘partner country’’means a developing country that participates in or benefits
from basic education programs under this subsection pursuant to the prioritization criteria described in paragraph(4), including level of need, opportunity for impact, and theavailability of resources.
(H) RELEVANT EXECUTIVE BRANCH AGENCIES AND OFFICIALS.—The term ‘‘relevant Executive branch agencies andofficials’’ means the Department of State, the UnitedStates Agency for International Development, the Department of the Treasury, the Department of Labor, the Department of Education, the Department of Agriculture,and the Department of Defense, the Chief Executive Officer of the Millennium Challenge Corporation, the National
Security Advisor, and the Director of the Peace Corps.
(I) SUSTAINABILITY.—The term ‘‘sustainability’’ means,with respect to any basic education program that receives
funding pursuant to this section, the ability of a service delivery system, community, partner, or beneficiary to maintain, over time, such basic education program without theuse of foreign assistance.
(2) POLICY.—In carrying out this section, it shall be thepolicy of the United States to work with partner countries, as
appropriate, other donors, multilateral institutions, the private
sector, and nongovernmental and civil society organizations,
including faith-based organizations and organizations that represent teachers, students, and parents, to promote sustainable,
quality basic education through programs and activities that—(A) take into consideration and help respond to theneeds, capacities, and commitment of developing countries
to achieve measurable improvements in literacy,
numeracy, and other basic skills development that prepare
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Sec. 105an individual to be an active, productive member of society
and the workforce;(B) strengthen educational systems, promote communities of learning, as appropriate, expand access to safe
learning environments, including by breaking down specific barriers to basic education for women and girls, ensure continuity of education, including in conflict settings,
measurably improve teacher skills and learning outcomes,
and support the engagement of parents in the education of
their children to help partner countries ensure that all
children, including marginalized children and other vulnerable groups, have access to and benefit from quality
basic education;(C) promote education as a foundation for sustained
economic growth and development within a comprehensive
assistance strategy that places partner countries on a trajectory toward graduation from assistance provided under
this section with clearly defined benchmarks of successthat are used as requirements for related procurement vehicles, such as grants, contracts, and cooperative agreements;(D) monitor and evaluate the effectiveness and qualityof basic education programs in partner countries; and(E) promote United States values, especially respect
for all persons and freedoms of religion, speech, and thepress.
(3) PRINCIPLES.—In carrying out the policy referred to inparagraph (2), the United States shall be guided by the following principles of aid effectiveness:(A) ALIGNMENT.—Assistance provided under this section to support programs and activities under this subsection shall be aligned with and advance United Statesforeign policy and economic interests.
(B) COUNTRY OWNERSHIP.—To the greatest extent
practicable, assistance provided under this section to support programs and activities under this subsection shouldbe aligned with and support the national education plans
and country development strategies of partner countries,
including activities that are appropriate for and meet theneeds of local and indigenous cultures.
(C) COORDINATION.—(i) IN GENERAL.—Assistance provided under thissection to support programs and activities under thissubsection should be coordinated with and leverage
the unique capabilities and resources of local and national governments in partner countries, other donors,
multilateral institutions, the private sector, and nongovernmental and civil society organizations, including
faith-based organizations and organizations that represent teachers, students, and parents.
(ii) MULTILATERAL PROGRAMS AND INITIATIVES.—
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cation programs and financing mechanisms, which
may include the Global Partnership for Education,that demonstrate commitment to efficiency, effectiveness, transparency, and accountability.
(D) EFFICIENCY.—The President shall seek to improvethe efficiency and effectiveness of assistance provided
under this section to support programs and activities
under this subsection by coordinating the related efforts ofrelevant Executive branch agencies and officials.
(E) EFFECTIVENESS.—Programs and activities supported under this subsection—(i) shall be consistent with the policies and principles set forth in this subsection;(ii) shall be designed to achieve specific, measurable goals and objectives that are directly related tothe provision of basic education (as defined in this section); and(iii) shall include appropriate targets, metrics, andindicators that—(I) move a country along the path to graduation from assistance provided under this subsection; and(II) can be applied with reasonable consistency across such programs and activities to measure progress and outcomes.
(F) TRANSPARENCY AND ACCOUNTABILITY.—Programs
and activities supported under this subsection shall be
subject to rigorous monitoring and evaluation, which may
include impact evaluations, the results of which shall bemade publically available in a fully searchable, electronic
format.
(4) PRIORITY AND OTHER REQUIREMENTS.—The President
shall ensure that assistance provided under this section to support programs and activities under this subsection is alignedwith the foreign policy and economic interests of the UnitedStates and, subject to such alignment, priority is given to developing countries in which—(A) there is the greatest need and opportunity to expand access to basic education and to improve learning
outcomes, including for marginalized and vulnerable
groups, particularly women and girls to ensure gender parity in basic education, or populations affected by conflict orcrisis;(B) such assistance can produce a substantial, measurable impact on children and educational systems; and(C) there is the greatest opportunity to reduce childhood and adolescence exposure to or engagement in violent
extremism or extremist ideologies.
SEC. 106. ø22 U.S.C. 2151d¿ ENERGY, PRIVATE VOLUNTARY ORGANIZATIONS, AND SELECTED DEVELOPMENT ACTIVITIES.—(a)(1)(A)The Congress finds that energy development and production arevital elements in the development process, that energy shortages indeveloping countries severely limit the development process in suchcountries, that two-thirds of the developing countries which import
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Sec. 106oil depend on it for at least 90 percent of the energy which theireconomies require, and that the dramatic increase in world oil
prices since 1973 has resulted in considerable economic hardshipfor many developing countries. The Congress is concerned that thevalue and purpose of much of the assistance provided to developing
countries under sections 103, 104, and 105 are undermined by theinability of many developing countries to satisfy their energy requirements. Unless the energy deficit of the developing countries
can be narrowed by more fully exploiting indigenous sources of energy such as oil, natural gas, and coal, scarce foreign exchange will
increasingly have to be diverted to oil imports, primarily to the detriment of long-term development and economic growth.
(B) The Congress recognizes that many developing countries
lack access to the financial resources and technology necessary tolocate, explore, and develop indigenous energy resources.
(C) The Congress declares that there is potential for at leasta moderate increase by 1990 in the production of energy for commercial use in the developing countries which are not members of
the Organization of Petroleum Exporting Countries. In addition,
there is a compelling need for vigorous efforts to improve the available data on the location, scale, and commercial exploitability of potential oil, natural gas, and coal reserves in developing countries,
especially those which are not members of the Organization of Petroleum Exporting Countries. The Congress further declares that
there are many benefits to be gained by the developing countries
and by the United States and other developed countries throughexpanded efforts to expedite the location, exploration, and development of potential sources of energy in developing countries. Thesebenefits include, but are not limited to, the following:(i) The world’s energy supply would be increased and thefear of abrupt depletion would be lessened with new energy
production. This could have a positive impact upon energy
prices in international markets as well as a positive effect upon
the balance of payments problems of many developing countries.
(ii) Diversification of the world’s supplies of energy fromfossil fuels would make all countries, developing and developed, less susceptible to supply interruptions and arbitrary
production and pricing policies.
(iii) Even a moderate increase in energy production in thedeveloping countries would improve their ability to expand
commercial trade, foreign investment, and technology transfer
possibilities with the United States and other developed countries.
(D) Assistance for the production of energy from indigenous resources, as authorized by subsection (b) of this section, would be of
direct benefit to the poor in developing countries because of theoverwhelming impact of imported energy costs upon the lives of thepoor and their ability to participate in development.
(2) The Congress also finds that energy production from renewable, decentralized sources and energy conservation are vital elements in the development process. Inadequate access by the poor
to energy sources as well as the prospect of depleted fossil fuel reserves and higher energy prices require an enhanced effort to exJune 10, 2019

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pand the energy resources of developing countries through greater
emphasis on renewable sources. Renewable and decentralized energy technologies have particular applicability for the poor, especially in rural areas.
(b)(1) In order to help developing countries alleviate their energy problems by improving their ability to use indigenous energy
resources to produce the energy needed by their economies, thePresident is authorized to furnish assistance, on such terms andconditions as he may determine, to enable such countries to prepare for and undertake development of their energy resources.
Such assistance may include data collection and analysis, the training of skilled personnel, research on and development of suitableenergy sources, and pilot projects to test new methods of energy
production.
(2) The President is authorized to furnish assistance under thischapter for cooperative programs with developing countries in energy production and conservation through research on 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. Such programs may include research
on and the development, demonstration, and application of suitableenergy technologies (including use of wood); analysis of energy
uses, needs, and resources; training and institutional development;
and scientific interchange.
(c) The agency primarily responsible for administering thispart and the Department of Energy shall coordinate with one another, to the maximum extent possible, the planning and implementation of energy programs under this chapter.
(d) The President is authorized to furnish assistance, on suchterms and conditions as he may determine, for the following activities, to the extent that such activities are not authorized by sections 103, 104, and 105 of this Act:(1) programs of technical cooperation and development,
particularly the development efforts of United States private
and voluntary agencies and regional and international development organizations;(2) programs of research into, and evaluation of, the process of economic development in less developed countries andareas, into the factors affecting the relative success and costsof development activities, and into the means, techniques, andsuch other aspects of development assistance as the President
may determine in order to render such assistance of increasing
value and benefit;(3) programs of reconstruction following natural or manmade disasters and programs of disaster preparedness, including the prediction of and contingency planning for natural disasters abroad;
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FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

Sec. 110(4) programs designed to help solve special development
problems in the poorest countries and to make possible proper
utilization of infrastructure and related projects funded withearlier United States assistance; and(5) programs of urban development, with particular emphasis on small, labor intensive enterprises, marketing systems for small producers, and financial and other institutions
which enable the urban poor to participate in the economic andsocial development of their country.
(e)(1) There are authorized to be appropriated to the President
for purposes of this section, in addition to funds otherwise available
for such purposes, $207,000,000 for fiscal year 1986 and$207,000,000 for fiscal year 1987.
(2) Amounts appropriated under this section are authorized toremain available until expended.
(f) Of the amounts authorized to be appropriated to carry out
this chapter $5,000,000 for fiscal year 1986 and $5,000,000 for fiscal year 1987 shall be used to finance cooperative projects among
the United States, Israel, and developing countries.
SEC. 107. ø22 U.S.C. 2151e¿ APPROPRIATE TECHNOLOGY.—(a)In carrying out activities under this chapter, the President shallplace special emphasis on the use of relatively smaller, cost-saving,labor-using technologies that are generally most appropriate for thesmall farms, small businesses, and small incomes of the poor.
(b) Funds made available to carry out this chapter should be
used to the extent practicable for activities in the field of appropriate technology, including support of an expanded and coordinated private effort to promote the development and disseminationof appropriate technology in developing countries.
øSubsections (a) and (b) of section 4 of Public Law 108–484(118 Stat. 3927) transfers section 108 to title VI of chapter 2 ofPart I and redesignates such section as section 256.¿
SEC. 109. ø22 U.S.C. 2151g¿ TRANSFER OF FUNDS.—Whenever
the President determines it to be necessary for the purposes of thischapter, 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 thischapter, and may be used for any of the purposes for which suchfunds may be used, except that the total in the provision for the
benefit of which the transfer is made shall not be increased bymore than 25 per centum of the amount of funds made available
for such provision. The authority of sections 610(a) and 614(a) of
this Act may not be used to transfer funds made available under
this chapter for use for purposes of any other provision of this Act
except that the authority of such sections may be used to transfer
for the purposes of section 667 not to exceed five per centum of theamount of funds made available for section 667(a)(1).
SEC. 110. ø22 U.S.C. 2151h¿ COST-SHARING AND FUNDING LIMITS.—No assistance shall be furnished by the United States Government to a country under sections 103 through 106 of this Act
until the country provides assurances to the President, and thePresident is satisfied, that such country provide at least 25 per centum of the costs of the entire program, project, or activity with reJune 10, 2019

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Sec. 111

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)40

spect to which such assistance is to be furnished, except that suchcosts borne by such country may be provided on an ‘‘in-kind’’ basis.
SEC. 111. ø22 U.S.C. 2151i¿ DEVELOPMENT AND USE OF COOPERATIVES.—In order to strengthen the participation of the ruraland urban poor in their country’s development, high priority shallbe given to increasing the use of funds made available under thisAct for technical and capital assistance in the development and useof cooperatives in the less developed countries which will enable
and encourage greater numbers of the poor to help themselves toward a better life. In meeting the requirement of the preceding
sentence, specific priority shall be given to the following:(1) AGRICULTURE.—Technical assistance to low income
farmers who form and develop member-owned cooperatives forfarm supplies, marketing and value-added processing.
(2) FINANCIAL SYSTEMS.—The promotion of national credit
union systems through credit union-to-credit union technicalassistance that strengthens the ability of low income people
and micro-entrepreneurs to save and to have access to credit
for their own economic advancement.
(3) INFRASTRUCTURE.—The support of rural electric andtelecommunication cooperatives for access for rural people andvillages that lack reliable electric and telecommunications
services.
(4) HOUSING AND COMMUNITY SERVICES.—The promotion ofcommunity-based cooperatives which provide employment opportunities and important services such as health clinics, selfhelp shelter, environmental improvements, group-owned businesses, and other activities.
SEC. 112. PROHIBITING POLICE TRAINING.— øRepealed—1974¿
SEC. 113. ø22 U.S.C. 2151k¿ INTEGRATING WOMEN INTO NATIONAL ECONOMIES.—(a) In recognition of the fact that women indeveloping countries play a significant role in economic production,family support, and the overall development process of the national
economies of such countries, this part shall be administered so as
to give particular attention to those programs, projects, and activities which tend to integrate women into the national economies ofdeveloping countries, thus improving their status and assisting thetotal development effort.
(b)(1) Up to $10,000,000 of the funds made available each fiscal
year under this chapter and chapter 10 of this part shall be used,in addition to funds otherwise available for such purposes, for assistance on such terms and conditions as the President may determine to encourage and promote the participation and integration of
women as equal partners in the development process in the developing countries. These funds shall be used primarily to support activities which will increase the economic productivity and income
earning capacity of women.
(2) Nothing in this section shall be construed to authorize
the establishment of a separate development assistance program for women.
(c) Not less than $500,000 of the funds made available under
this chapter for fiscal year 1982 shall be expended on international
programs which support the original goals of the United Nations
Decade for Women.
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Sec. 116

SEC. 114. LIMITING USE OF FUNDS FOR ABORTIONS OR INVOLUNTARY STERILIZATION.— øRepealed—1978¿
SEC. 115. PROHIBITING USE OF FUNDS FOR CERTAIN COUNTRIES.— øRepealed—1978¿
SEC. 116. ø22 U.S.C. 2151n¿ HUMAN RIGHTS.—(a) No assistance may be provided under this part 6 to the government of any
country which engages in a consistent pattern of gross violationsof internationally recognized human rights, including torture or
cruel, inhuman, or degrading treatment or punishment, prolonged
detention without charges, causing the disappearance of persons by
the abduction and clandestine detention of those persons, or otherflagrant denial of the right to life, liberty, and the security of person, unless such assistance will directly benefit the needy people insuch country.
(b) In determining whether this standard is being met with regard to funds allocated under this part 7, the Committee on Foreign
Relations of the Senate or the Committee on Foreign Affairs of theHouse of Representatives may require the Administrator primarily
responsible for administering part I of this Act 8 to submit in writing information demonstrating that such assistance 9 will directly
benefit the needy people in such country, together with a detailed
explanation of the assistance 10 to be provided (including the dollar
amounts of such assistance 9) and an explanation of how such assistance 9 will directly benefit the needy people in such country. If
6 Section 1470(j)(1)(A) of the BUILD Act of 2018 (division F of Public Law 115-254) provides
for an amendment to insert ‘‘, and no support may be provided under title II of the Better Utilization of Investments Leading to Development Act of 2018,’’ after ‘‘this part’’. Section 1470(w)of such Act states ‘‘The amendments made by this section shall take effect at the end of thetransition period.’’. Section 1461(2) of such Act defines the term ‘‘transition period’’ as follows:‘‘The term ‘transition period’ means the period—(A) beginning on the date of the enactment of
this Act; and (B) ending on the effective date of the reorganization plan required by section
1462(e).’’. For details relating to the reorganization plan, see section 1462(e) of such Act.
7 Section 1470(j)(1)(B)(i) of the BUILD Act of 2018 (division F of Public Law 115-254) provides
for an amendment to insert ‘‘or title II of the Better Utilization of Investments Leading to Development Act of 2018’’ after ‘‘this part’’. Section 1470(w) of such Act states ‘‘The amendments
made by this section shall take effect at the end of the transition period.’’. Section 1461(2) ofsuch Act defines the term ‘‘transition period’’ as follows: ‘‘The term ‘transition period’ means theperiod—(A) beginning on the date of the enactment of this Act; and (B) ending on the effective
date of the reorganization plan required by section 1462(e).’’. For details relating to the reorganization plan, see section 1462(e) of such Act.
8 Section 1470(j)(1)(B)(ii) of the BUILD Act of 2018 (division F of Public Law 115-254) provides
for an amendment to insert ‘‘or the Chief Executive Officer of the United States International
Development Finance Corporation, as applicable,’’ after ‘‘this Act’’. The phrase ‘‘this Act’’ appears
two times in subsection (b), however, such amendment did not specify which occurrence of thatphrase to insert the new text. Section 1470(w) of such Act states ‘‘The amendments made bythis section shall take effect at the end of the transition period.’’. Section 1461(2) of such Act
defines the term ‘‘transition period’’ as follows: ‘‘The term ‘transition period’ means the period—(A) beginning on the date of the enactment of this Act; and (B) ending on the effective date of
the reorganization plan required by section 1462(e).’’. For details relating to the reorganization
plan, see section 1462(e) of such Act.
9 Section 1470(j)(1)(B)(iv) of the BUILD Act of 2018 (division F of Public Law 115-254) provides for an amendment to insert ‘‘or support’’ after ‘‘such assistance’’ each place it appears. Section 1470(w) of such Act states ‘‘The amendments made by this section shall take effect at theend of the transition period.’’. Section 1461(2) of such Act defines the term ‘‘transition period’’
as follows: ‘‘The term ‘transition period’ means the period—(A) beginning on the date of the enactment of this Act; and (B) ending on the effective date of the reorganization plan requiredby section 1462(e).’’. For details relating to the reorganization plan, see section 1462(e) of suchAct.
10 Section 1470(j)(1)(B)(iii) of the BUILD Act of 2018 (division F of Public Law 115-254) provides for an amendment to insert ‘‘or support’’ after ‘‘the assistance’’. Section 1470(w) of such
Act states ‘‘The amendments made by this section shall take effect at the end of the transition
period.’’. Section 1461(2) of such Act defines the term ‘‘transition period’’ as follows: ‘‘The term‘transition period’ means the period—(A) beginning on the date of the enactment of this Act;and (B) ending on the effective date of the reorganization plan required by section 1462(e).’’. For
details relating to the reorganization plan, see section 1462(e) of such Act.

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either committee or either House of Congress disagrees with the
Administrator’s justification it may initiate action to terminate assistance to any country by a concurrent resolution under section
617 of this Act 8.
(b) 11 No assistance may be provided 12 to any government failing to take appropriate and adequate measures, within theirmeans, to protect children from exploitation, abuse or forced conscription into military or paramilitary services.
(c) In determining whether or not a government falls within
the provisions of subsection (a) and in formulating development assistance programs under this part, the Administrator 13 shall consider, in consultation with the Assistant Secretary of State for Democracy, Human Rights, and Labor and in consultation with theAmbassador at Large for International Religious Freedom—(1) the extent of cooperation of such government in permitting an unimpeded investigation of alleged violations of internationally recognized human rights by appropriate international organizations, including the International Committeeof the Red Cross, or groups or persons acting under the authority of the United Nations or of the Organization of American
States;(2) specific actions which have been taken by the President
or the Congress relating to multilateral or security assistanceto a less developed country because of the human rights practices or policies of such country; and(3) whether the government—(A) has engaged in or tolerated particularly severe violations of religious freedom, as defined in section 3 of theInternational Religious Freedom Act of 1998; or(B) has failed to undertake serious and sustained efforts to combat particularly severe violations of religious
freedom (as defined in section 3 of the International Religious Freedom Act of 1998), when such efforts could havebeen reasonably undertaken.
(d) The Secretary of State shall transmit to the Speaker of theHouse of Representatives and the Committee on Foreign Relationsof the Senate, by February 25 of each year, a full and complete report regarding—
11 Sec. 599D of the of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101–513; 104 Stat. 2066), added this second subsec. (b).
12 Section 1470(j)(1)(C) of the BUILD Act of 2018 (division F of Public Law 115-254) provides
for an amendment to insert ‘‘under this part, and no support may be provided under title IIof the Better Utilization of Investments Leading to Development Act of 2018,’’ after ‘‘provided’’.
Section 1470(w) of such Act states ‘‘The amendments made by this section shall take effect at
the end of the transition period.’’. Section 1461(2) of such Act defines the term ‘‘transition period’’ as follows: ‘‘The term ‘transition period’ means the period—(A) beginning on the date of
the enactment of this Act; and (B) ending on the effective date of the reorganization plan required by section 1462(e).’’. For details relating to the reorganization plan, see section 1462(e)of such Act.
13 Section 1470(j)(1)(D) of the BUILD Act of 2018 (division F of Public Law 115-254) provides
for an amendment to strike ‘‘under this part, the Administrator’’ and insert ‘‘under this part,or support provided under title II of the Better Utilization of Investments Leading to Development Act of 2018, the Administrator, or the Chief Executive Officer of the United States International Development Finance Corporation, as applicable,’’. Section 1470(w) of such Act states‘‘The amendments made by this section shall take effect at the end of the transition period.’’.
Section 1461(2) of such Act defines the term ‘‘transition period’’ as follows: ‘‘The term ‘transition
period’ means the period—(A) beginning on the date of the enactment of this Act; and (B) endingon the effective date of the reorganization plan required by section 1462(e).’’. For details relating
to the reorganization plan, see section 1462(e) of such Act.

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Sec. 116(1) the status of internationally recognized human rights,
within the meaning of subsection (a)—(A) in countries that receive assistance under thispart, and(B) in all other foreign countries which are membersof the United Nations and which are not otherwise thesubject of a human rights report under this Act;(2) wherever applicable, practices regarding coercion in
population control, including coerced abortion and involuntarysterilization;(3) the status of child labor practices in each country, including—(A) whether such country has adopted policies to protect children from exploitation in the workplace, including
a prohibition of forced and bonded labor and policies regarding acceptable working conditions; and(B) the extent to which each country enforces suchpolicies, including the adequacy of the resources and oversight dedicated to such policies;(4) the votes of each member of the United Nations Commission on Human Rights on all country-specific and thematic
resolutions voted on at the Commission’s annual session during the period covered during the preceding year;(5) the extent to which each country has extended protection to refugees, including the provision of first asylum and resettlement;(6) the steps the Administrator has taken to alter UnitedStates programs under this part in any country because ofhuman rights considerations;(7) wherever applicable, violations of religious freedom, including particularly severe violations of religious freedom (asdefined in section 3 of the International Religious Freedom Act
of 1998);(8) wherever applicable, a description of the nature and extent of acts of anti-Semitism and anti-Semitic incitement that
occur during the preceding year, including descriptions of—(A) acts of physical violence against, or harassment ofJewish people, and acts of violence against, or vandalismof Jewish community institutions, including schools, synagogues, and cemeteries;(B) instances of propaganda in government and nongovernment media that attempt to justify or promote racial hatred or incite acts of violence against Jewish people;(C) the actions, if any, taken by the government of thecountry to respond to such violence and attacks or to eliminate such propaganda or incitement;(D) the actions taken by such government to enact andenforce laws relating to the protection of the right to religious freedom of Jewish people; and(E) the efforts of such government to promote anti-bias
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in article 2 of the Convention on the Prevention and Punishment of the Crime of Genocide and modified by the UnitedStates instrument of ratification to that convention and section
2(a) of the Genocide Convention Implementation Act of 1987);(10) for each country with respect to which the report indicates that extrajudicial killings, torture, or other serious violations of human rights have occurred in the country, the extent
to which the United States has taken or will take action to encourage an end to such practices in the country;(11)(A) wherever applicable, a description of the natureand extent—(i) of the compulsory recruitment and conscription ofindividuals under the age of 18 by armed forces of the governmentofthecountry,
government-supported
paramilitaries, or other armed groups, and the participation of such individuals in such groups; and(ii) that such individuals take a direct part in hostilities;(B) what steps, if any, taken by the government of thecountry to eliminate such practices;(C) such other information related to the use by such government of individuals under the age of 18 as soldiers, as determined to be appropriate by the Secretary; and(12) wherever applicable—(A) a description of the status of freedom of the press,
including initiatives in favor of freedom of the press andefforts to improve or preserve, as appropriate, the independence of the media, together with an assessment ofprogress made as a result of those efforts;(B) an identification of countries in which there wereviolations of freedom of the press, including direct physicalattacks, imprisonment, indirect sources of pressure, andcensorship by governments, military, intelligence, or police
forces, criminal groups, or armed extremist or rebel
groups; and(C) in countries where there are particularly severe
violations of freedom of the press—(i) whether government authorities of each suchcountry participate in, facilitate, or condone such violations of the freedom of the press; and(ii) what steps the government of each such country has taken to preserve the safety and independenceof the media, and to ensure the prosecution of thoseindividuals who attack or murder journalists.
(e) The President is authorized and encouraged to use not lessthan $3,000,000 of the funds made available under this chapter,
chapter 10 of this part, and chapter 4 of part II for each fiscal year
for studies to identify, and for openly carrying out, programs andactivities which will encourage or promote increased adherence tocivil and political rights, as set forth in the Universal Declarationof Human Rights, in countries eligible for assistance under thischapter or under chapter 10 of this part, except that funds madeavailable under chapter 10 of this part may only be used under thissubsection with respect to countries in sub-Saharan Africa. None ofJune 10, 2019

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Sec. 116

these funds may be used, directly or indirectly, to influence the outcome of any election in any country.
(f)(1) The report required by subsection (d) shall include thefollowing:(A) A description of the nature and extent of severe formsof trafficking in persons, as defined in section 103 of the Trafficking Victims Protection Act of 2000, in each foreign country.
(B) With respect to each country that is a country of origin, transit, or destination for victims of severe forms of trafficking in persons, an assessment of the efforts by the government of that country to combat such trafficking. The assessment shall address the following:(i) Whether government authorities in that country
participate in, facilitate, or condone such trafficking.
(ii) Which government authorities in that country are
involved in activities to combat such trafficking.
(iii) What steps the government of that country hastaken to prohibit government officials from participatingin, facilitating, or condoning such trafficking, including theinvestigation, prosecution, and conviction of such officials.
(iv) What steps the government of that country hastaken to prohibit other individuals from participating insuch trafficking, including the investigation, prosecution,and conviction of individuals involved in severe forms of
trafficking in persons, the criminal and civil penalties forsuch trafficking, and the efficacy of those penalties ineliminating or reducing such trafficking.
(v) What steps the government of that country hastaken to assist victims of such trafficking, including efforts
to prevent victims from being further victimized by traffickers, government officials, or others, grants of relief
from deportation, and provision of humanitarian relief, including provision of mental and physical health care andshelter.
(vi) Whether the government of that country is cooperating with governments of other countries to extradite
traffickers when requested, or, to the extent that such cooperation would be inconsistent with the laws of suchcountry or with extradition treaties to which such country
is a party, whether the government of that country is taking all appropriate measures to modify or replace suchlaws and treaties so as to permit such cooperation.
(vii) Whether the government of that country is assisting in international investigations of transnational trafficking networks and in other cooperative efforts to combat
severe forms of trafficking in persons.
(viii) Whether the government of that country refrainsfrom prosecuting victims of severe forms of trafficking inpersons due to such victims having been trafficked, and refrains from other discriminatory treatment of such victims.
(ix) Whether the government of that country recognizes the rights of victims of severe forms of trafficking inpersons and ensures their access to justice.
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Sec. 117FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

46(C) Such other information relating to trafficking in persons as the Secretary of State considers appropriate.
(2) In compiling data and making assessments for the purposesof paragraph (1), United States diplomatic mission personnel shallconsult with human rights organizations and other appropriate
nongovernmental organizations.
(g) CHILD MARRIAGE STATUS.—(1) IN GENERAL.—The report required under subsection (d)shall include, for each country in which child marriage is prevalent, a description of the status of the practice of child marriage in such country.
(2) DEFINED TERM.—In this subsection, the term ‘‘childmarriage’’ means the marriage of a girl or boy who is—(A) younger than the minimum age for marriage under
the laws of the country in which such girl or boy is a resident; or(B) younger than 18 years of age, if no such law exists.
SEC. 117. ø22 U.S.C. 2151p¿ ENVIRONMENT AND NATURAL RESOURCES.—(a) The Congress finds that if current trends in the degradation of natural resources in developing countries continue, they
will severely undermine the best efforts to meet basic humanneeds, to achieve sustained economic growth, and to prevent international tension and conflict. The Congress also finds that theworld faces enormous, urgent, and complex problems, with respect
to natural resources, which require new forms of cooperation between the United States and developing countries to prevent suchproblems from becoming unmanageable. It is, therefore, in the economic and security interests of the United States to provide leadership both in thoroughly reassessing policies relating to natural resources and the environment, and in cooperating extensively with
developing countries in order to achieve environmentally sound development.
(b) In order to address the serious problems described in subsection (a), the President is authorized to furnish assistance under
this part for developing and strengthening the capacity of developing countries to protect and manage their environment and natural resources. Special efforts shall be made to maintain and where
possible to restore the land, vegetation, water, wildlife, and otherresources upon which depend economic growth and human wellbeing, especially of the poor.
(c)(1) The President, in implementing programs and projects
under this chapter and chapter 10 of this part, shall take fully into
account the impact of such programs and projects upon the environment and natural resources of developing countries. Subject tosuch procedures as the President considers appropriate, the President shall require all agencies and officials responsible for programs or projects under this chapter—(A) to prepare and take fully into account an environmental impact statement for any program or project under thischapter significantly affecting the environment of the global
commons outside the jurisdiction of any country, the environment of the United States, or other aspects of the environment
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Sec. 118(B) to prepare and take fully into account an environmental assessment of any proposed program or project under
this chapter significantly affecting the environment of any foreign country.
Such agencies and officials should, where appropriate, use local
technical resources in preparing environmental impact statements
and environmental assessments pursuant to this subsection.
(2) The President may establish exceptions from the requirements of this subsection for emergency conditions and for cases inwhich compliance with those requirements would be seriously detrimental to the foreign policy interests of the United States.
SEC. 118. ø22 U.S.C. 2151p–1¿ TROPICAL FORESTS.
(a) IMPORTANCE OF FORESTS AND TREE COVER.—In enacting
section 103(b)(3) of this Act the Congress recognized the importance of forests and tree cover to the developing countries. The
Congress is particularly concerned about the continuing and accelerating alteration, destruction, and loss of tropical forests in developing countries, which pose a serious threat to development andthe environment. Tropical forest destruction and loss—(1) result in shortages of wood, especially wood for fuel;loss of biologically productive wetlands; siltation of lakes, reservoirs, and irrigation systems; floods; destruction of indigenous peoples; extinction of plant and animal species; reduced
capacity for food production; and loss of genetic resources; and(2) can result in desertification and destabilization of theearth’s climate.
Properly managed tropical forests provide a sustained flow of resources essential to the economic growth of developing countries, aswell as genetic resources of value to developed and developing
countries alike.
(b) PRIORITIES.—The concerns expressed in subsection (a) andthe recommendations of the United States Interagency Task Forceon Tropical Forests shall be given high priority by the President—(1) in formulating and carrying out programs and policies
with respect to developing countries, including those relating tobilateral and multilateral assistance and those relating to private sector activities; and(2) in seeking opportunities to coordinate public and private development and investment activities which affect forests
in developing countries.
(c) ASSISTANCE TO DEVELOPING COUNTRIES.—In providing assistance to developing countries, the President shall do the following:(1) Place a high priority on conservation and sustainable
management of tropical forests.
(2) To the fullest extent feasible, engage in dialogues andexchanges of information with recipient countries—(A) which stress the importance of conserving andsustainably managing forest resources for the long-term
economic benefit of those countries, as well as the irreversible losses associated with forest destruction, and(B) which identify and focus on policies of those countries which directly or indirectly contribute to deforestation.
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Sec. 118FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

48(3) To the fullest extent feasible, support projects and activities—(A) which offer employment and income alternatives tothose who otherwise would cause destruction and loss offorests, and(B) which help developing countries identify and implement alternatives to colonizing forested areas.
(4) To the fullest extent feasible, support training programs, educational efforts, and the establishment or strengthening of institutions which increase the capacity of developing
countries to formulate forest policies, engage in relevant landuse planning, and otherwise improve the management of theirforests.
(5) To the fullest extent feasible, help end destructive
slash-and-burn agriculture by supporting stable and productive
farming practices in areas already cleared or degraded and on
lands which inevitably will be settled, with special emphasis on
demonstrating the feasibility of agroforestry and other techniques which use technologies and methods suited to the local
environment and traditional agricultural techniques and feature close consultation with and involvement of local people.
(6) To the fullest extent feasible, help conserve forests
which have not yet been degraded, by helping to increase production on lands already cleared or degraded through supportof reforestation, fuelwood, and other sustainable forestry
projects and practices, making sure that local people are involved at all stages of project design and implementation.
(7) To the fullest extent feasible, support projects andother activities to conserve forested watersheds and rehabilitate those which have been deforested, making sure that local
people are involved at all stages of project design and implementation.
(8) To the fullest extent feasible, support training, research, and other actions which lead to sustainable and moreenvironmentally sound practices for timber harvesting, removal, and processing, including reforestation, soil conservation, and other activities to rehabilitate degraded forest lands.
(9) To the fullest extent feasible, support research to expand knowledge of tropical forests and identify alternatives
which will prevent forest destruction, loss, or degradation, including research in agroforestry, sustainable management of
natural forests, small-scale farms and gardens, small-scale animal husbandry, wider application of adopted traditional practices, and suitable crops and crop combinations.
(10) To the fullest extent feasible, conserve biological diversity in forest areas by—(A) supporting and cooperating with United States
Government agencies, other donors (both bilateral andmultilateral), and other appropriate governmental, intergovernmental, and nongovernmental organizations in efforts to identify, establish, and maintain a representative
network of protected tropical forest ecosystems on a worldwide basis;
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Sec. 118(B) whenever appropriate, making the establishmentof protected areas a condition of support for activities involving forest clearance of degradation; and(C) helping developing countries identify tropical forest ecosystems and species in need of protection and establish and maintain appropriate protected areas.
(11) To the fullest extent feasible, engage in efforts to increase the awareness of United States Government agencies
and other donors, both bilateral and multilateral, of the immediate and long-term value of tropical forests.
(12) To the fullest extent feasible, utilize the resources andabilities of all relevant United States Government agencies.
(13) Require that any program or project under this chapter significantly affecting tropical forests (including projects involving the planting of exotic plant species)—(A) be based upon careful analysis of the alternatives
available to achieve the best sustainable use of the land,and(B) take full account of the environmental impacts ofthe proposed activities on biological diversity,
as provided for in the environmental procedures of the Agency
for International Development.
(14) Deny assistance under this chapter for—(A) the procurement or use of logging equipment, unless an environmental assessment indicates that all timber
harvesting operations involved will be conducted in an environmentally sound manner which minimizes forest destruction and that the proposed activity will produce positive economic benefits and sustainable forest management
systems; and(B) actions which significantly degrade national parksor similar protected areas which contain tropical forests or
introduce exotic plants or animals into such areas.
(15) Deny assistance under this chapter for the following
activities unless an environmental assessment indicates thatthe proposed activity will contribute significantly and directly
to improving the livelihood of the rural poor and will be conducted in an environmentally sound manner which supports
sustainable development:(A) Activities which would result in the conversion offorest lands to the rearing of livestock.
(B) The construction, upgrading, or maintenance ofroads (including temporary haul roads for logging or otherextractive industries) which pass through relatively
undegraded forest lands.
(C) The colonization of forest lands.
(D) The construction of dams or other water control
structures which flood relatively undegraded forest lands.
(d) PVOS AND OTHER NONGOVERNMENTAL ORGANIZATIONS.—
Whenever feasible, the President shall accomplish the objectives ofthis section through projects managed by private and voluntary organizations or international, regional, or national nongovernmentalorganizations which are active in the region or country where theproject is located.
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Sec. 119FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

50(e) COUNTRY ANALYSIS REQUIREMENTS.—Each country development strategy statement or other country plan prepared by the
Agency for International Development shall include an analysisof—(1) the actions necessary in that country to achieve conservation and sustainable management of tropical forests, and(2) the extent to which the actions proposed for support by
the Agency meet the needs thus identified.
(f) ANNUAL REPORT.—Each annual report required by section
634(a) of this Act shall include a report on the implementation ofthis section.
SEC. 119. ø22 U.S.C. 2151q¿ ENDANGERED SPECIES.—(a) The
Congress finds the survival of many animal and plant species is endangered by overhunting, by the presence of toxic chemicals inwater, air and soil, and by the destruction of habitats. The Congress further finds that the extinction of animal and plant species
is an irreparable loss with potentially serious environmental andeconomic consequences for developing and developed countries
alike. Accordingly, the preservation of animal and plant species
through the regulation of the hunting and trade in endangered species, through limitations on the pollution of natural ecosystems,
and through the protection of wildlife habitats should be an important objective of the United States development assistance.
(b) In order to preserve biological diversity, the President is authorized to furnish assistance under this part, notwithstanding section 660, to assist countries in protecting and maintaining wildlife
habitats and in developing sound wildlife management and plant
conservation programs. Special efforts should be made to establish
and maintain wildlife sanctuaries, reserves, and parks; to enact
and enforce anti-poaching measures; and to identify, study, andcatalog animal and plant species, especially in tropical environments.
(c) FUNDING LEVEL.—For fiscal year 1987, not less than
$2,500,000 of the funds available to carry out this part (excluding
funds made available to carry out section 104(c)(2), relating to theChild Survival Fund) shall be allocated for assistance pursuant tosubsection (b) for activities which were not funded prior to fiscal
year 1987. In addition, the Agency for International Development
shall, to the fullest extent possible, continue and increase assistance pursuant to subsection (b) for activities for which assistance
was provided in fiscal years prior to fiscal year 1987.
(d) COUNTRY ANALYSIS REQUIREMENTS.—Each country development strategy statement or other country plan prepared by the
Agency for International Development shall include an analysisof—(1) the actions necessary in that country to conserve biological diversity, and(2) the extent to which the actions proposed for support by
the Agency meet the needs thus identified.
(e) LOCAL INVOLVEMENT.—To the fullest extent possible,
projects supported under this section shall include close consultation with and involvement of local people at all stages of design
and implementation.
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Sec. 119(f) PVOS AND OTHER NONGOVERNMENTAL ORGANIZATIONS.—
Whenever feasible, the objectives of this section shall be accomplished through projects managed by appropriate private and voluntary organizations, or international, regional, or national nongovernmental organizations, which are active in the region or country where the project is located.
(g) ACTIONS BY AID.—The Administrator of the Agency forInternational Development shall—(1) cooperate with appropriate international organizations,both governmental and nongovernmental;(2) look to the World Conservation Strategy as an overall
guide for actions to conserve biological diversity;(3) engage in dialogues and exchanges of information withrecipient countries which stress the importance of conserving
biological diversity for the long-term economic benefit of thosecountries and which identify and focus on policies of thosecountries which directly or indirectly contribute to loss of biological diversity;(4) support training and education efforts which improvethe capacity of recipient countries to prevent loss of biologicaldiversity;(5) whenever possible, enter into long-term agreements inwhich the recipient country agrees to protect ecosystems orother wildlife habitats recommended for protection by relevant
governmental or nongovernmental organizations or as a resultof activities undertaken pursuant to paragraph (6), and theUnited States agrees to provide, subject to obtaining the necessary appropriations, additional assistance necessary for theestablishment and maintenance of such protected areas;(6) support, as necessary and in cooperation with the appropriate governmental and nongovernmental organizations,
efforts to identify and survey ecosystems in recipient countries
worthy of protection;(7) cooperate with and support the relevant efforts of otheragencies of the United States Government, including theUnited States Fish and Wildlife Service, the National Park
Service, the Forest Service, and the Peace Corps;(8) review the Agency’s environmental regulations and revise them as necessary to ensure that ongoing and proposed
actions by the Agency do not inadvertently endanger wildlife
species or their critical habitats, harm protected areas, or haveother adverse impacts on biological diversity (and shall reportto the Congress within a year after the date of enactment of
this paragraph on the actions taken pursuant to this paragraph);(9) ensure that environmental profiles sponsored by the
Agency include information needed for conservation of biological diversity; and(10) deny any direct or indirect assistance under this chapter for actions which significantly degrade national parks orsimilar protected areas or introduce exotic plants or animals
into such areas.
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Sec. 120

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)52(h) ANNUAL REPORTS.—Each annual report required by section
634(a) of this Act shall include, in a separate volume, a report on
the implementation of this section.
SEC. 120. ø22 U.S.C. 2151r¿ SAHEL DEVELOPMENT PROGRAM—
PLANNING.—(a) The Congress reaffirms its support of the initiativeof the United States Government in undertaking consultations andplanning with the countries concerned, and with other nations providing assistance, with the United Nations, and with other concerned international and regional organizations, toward the development and support of a comprehensive long-term African Saheldevelopment program.
(b) The President is authorized to develop a long-term comprehensive development program for the Sahel and other droughtstricken nations in Africa.
(c) In developing this long-term program, the President shall—(1) consider international coordination for the planningand implementation of such program;(2) seek greater participation and support by African countries and organizations in determining development priorities;and(3) begin such planning immediately.
(d) øRepealed—1978¿
SEC. 121. SAHEL DEVELOPMENT PROGRAM—IMPLEMENTATION.
øRepealed—1990¿
SEC. 122. ø22 U.S.C. 2151t¿ GENERAL AUTHORITIES.—(a) In
order to carry out the purposes of this chapter, the President is authorized to furnish assistance, on such terms and conditions as hemay determine, to countries and areas through programs of grant
and loan assistance, bilaterally or through regional, multilateral, or
private entities.
(b) The President is authorized to make loans payable as toprincipal and interest in United States dollars on such terms andconditions as he may determine, in order to promote the economic
development of countries and areas, with emphasis upon assisting
long range plans and programs designed to develop economic resources and increase productive capacities. The President shall determine the interest payable on any loan. In making loans under
this chapter, the President shall consider the economic circumstances of the borrower and other relevant factors, including
the capacity of the recipient country to repay the loan at a reasonable rate of interest, except that loans may not be made at a rateof interest of less than 3 per centum per annum commencing notlater than ten years following the date on which the funds are initially made available under the loan, during which ten-year period
the rate of interest shall not be lower than 2 per centum perannum, nor higher than the applicable legal rate of interest of thecountry in which the loan is made.
(c) Dollar receipts paid during any fiscal year from loans madeunder this part or from loans made under predecessor foreign assistance legislation shall be deposited in the Treasury as miscellaneous receipts.
(d) Not to exceed $10,000,000 of the funds made available eachfiscal year for the purposes of this chapter may be used for assistance on such terms and conditions as the President may determine,
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Sec. 123

to research and educational institutions in the United States forthe purpose of strengthening their capacity to develop and carryout programs concerned with the economic and social developmentof developing countries.
(e) The President shall establish an interagency Development
Loan Committee, consisting of such officers from such agencies of
the United States Government as he may determine, which shall,
under the direction of the President, establish standards and criteria for lending operations under this chapter in accordance withthe foreign and financial policies of the United States. Except in
the case of officers serving in positions to which they were appointed by the President by and with the advice and consent of the
Senate, officers assigned to the Committee shall be so assigned by
the President by and with the advice and consent of the Senate.
SEC. 123. ø22 U.S.C. 2151u¿ PRIVATE AND VOLUNTARY ORGANIZATIONS AND COOPERATIVES IN OVERSEAS DEVELOPMENT.—(a) The
Congress finds that the participation of rural and urban poor people in their countries’ development can be assisted and accelerated
in an effective manner through an increase in activities plannedand carried out by private and voluntary organizations and cooperatives. Such organizations and cooperatives, embodying theAmerican spirit of self-help and assistance to others to improvetheir lives and incomes, constitute an important means of mobilizing private American financial and human resources to benefit
poor people in developing countries. The Congress declares that it
is in the interest of the United States that such organizations andcooperatives expand their overseas development efforts withoutcompromising their private and independent nature. The Congress
further declares that the financial resources of such organizations
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 and, if
necessary and determined on a case- by-case basis, for the purposeof sharing the cost of developing programs related to such activities. The Congress urges the Administrator of the agency primarily
responsible for administering this part, in implementing programs
authorized under this part, to draw on the resources of private andvoluntary organizations and cooperatives to plan and carry out development activities and to establish simplified procedures for thedevelopment and approval of programs to be carried out by suchprivate and voluntary organizations and cooperatives as have demonstrated a capacity to undertake effective development activities.
(b) In order to further the efficient use of United States voluntary contributions for development, relief, and rehabilitation offriendly peoples, the President is authorized to use funds madeavailable for the purposes of this chapter and chapter 10 of thispart to pay transportation charges on shipments by the American
National Red Cross and by United States voluntary agencies registered with the Agency for International Development.
(c) Reimbursement under this section may be provided fortransportation charges on shipments from United States ports, orin the case of excess or surplus property supplied by the UnitedStates from foreign ports, to ports of entry abroad or to points ofentry abroad in cases (1) of landlocked countries, (2) where ports
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54

cannot be used effectively 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 theutilization of points of entry other than ports.
(d) Where practicable, the President shall make arrangementswith the receiving country for free entry of such shipments and forthe making available by the country of local currencies for the purpose of defraying the transportation costs of such shipments fromthe port or point of entry of the receiving country to the designatedshipping point of the consignee.
(e) Prohibitions on assistance to countries contained in this or
any other Act shall not be construed to prohibit assistance by theagency primarily responsible for administering this part in supportof programs of private and voluntary organizations and cooperatives already being supported prior to the date such prohibition becomes applicable. The President shall take into consideration, in
any case in which statutory prohibitions on assistance would be applicable but for this subsection, whether continuation of support forsuch programs is in the national interest of the United States. If
the President continues such support after such date, he shall prepare and transmit, not later than one year after such date, to the
Speaker of the House of Representatives and to the chairman of
the Committee on Foreign Relations of the Senate a report setting
forth the reasons for such continuation.
(f) For each of the fiscal years 1986 through 1989 funds in an
amount not less than thirteen and one-half percent of the aggregate amount appropriated for that fiscal year to carry out sections
103(a), 104(b), 104(c), 105, 106, 121, and 491 of this Act shall bemade available for the activities of private and voluntary organizations, and the President shall seek to channel funds in an amount
not less than sixteen percent of such aggregate amount for the activities of private and voluntary organizations. Funds made available under chapter 4 of part II of this Act for the activities of private and voluntary organizations may be considered in determining
compliance with the requirements of this subsection.
øSubsection (g) was repealed by Public Law 105–277.¿(h) The Congress recognizes that, in addition to their role insocial and economic development, cooperatives provide an opportunity for people to participate directly in democratic decisionmaking. Therefore, assistance under this chapter shall be provided
to rural and urban cooperatives which offer large numbers of lowand middle-income people in developing countries an opportunity toparticipate directly in democratic decisionmaking. Such assistanceshall be designed to encourage the adoption of self-help, private
sector cooperative techniques and practices which have been successful in the United States.
SEC. 124. ø22 U.S.C. 2151v¿ RELATIVELY LEAST DEVELOPEDCOUNTRIES.—(a) Relatively least developed countries (as determined on the basis of criteria comparable to those used for theUnited Nations General Assembly list of ‘‘least developed countries’’) are characterized by extreme poverty, very limited infrastructure, and limited administrative capacity to implement basic
human needs growth strategies. In such countries special measures
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may be necessary to insure the full effectiveness of assistance furnished under this part.
(b) For the purpose of promoting economic growth in thesecountries, the President is authorized and encouraged to make assistance under this chapter available on a grant basis to the maximum extent that is consistent with the attainment of UnitedStates 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 countries. Therefore, notwithstanding section 620(r)of this Act and section 321 of the International Development andFood Assistance Act of 1975 but subject to paragraph (2) of thissubsection, 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 development objectives set forth insections 101 and 102—(A) may permit a relatively least developed country toplace amounts, which would otherwise be paid to the UnitedStates 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 oflocal currencies as determined by the official exchange rate for
United States dollars) for use by the relatively least developed
country, with the concurrence 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 bya relatively least developed country under this part (or any
predecessor legislation) if the President determines that thatcountry would be unable to use for development purposes theequivalent amounts of local currencies which could be madeavailable under subparagraph (A).
(2) The aggregate amount of interest waived and interest andprincipal 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 forthat fiscal year, which amount may not exceed the amount authorized to be so approved by the annual authorizing legislation for development assistance programs. Amounts due and payable during
fiscal year 1981 to the United States from relatively least developed countries on loans made under this part (or any predecessor
legislation) are authorized to be approved for use, in accordancewith the provisions of paragraph (1) of this subsection, in an
amount not to exceed $10,845,000.
(3) In exercising the authority granted by this subsection, thePresident should act in concert with other creditor countries.
(d) The President may on a case-by-case basis waive the requirement of section 110(a) for financial or ‘‘in kind’’ contributionsin the case of programs, projects, or activities in relatively least developed countries.
(e) Section 110(b) shall not apply with respect to grants to relatively least developed countries.
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Sec. 125

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

56

SEC. 125. ø22 U.S.C. 2151w¿ PROJECT AND PROGRAM EVALUATION.—(a) The Administrator of the agency primarily responsible
for administering this part is directed to improve the assessmentand evaluation of the programs and projects carried out by thatagency under this chapter. The Administrator shall consult withthe appropriate committees of the Congress in establishing standards for such evaluations.
(b) * * * øRepealed—1981¿
SEC. 126. ø22 U.S.C. 2151x¿ DEVELOPMENT AND ILLICIT NARCOTICS PRODUCTION.—(a) The Congress recognizes that illicit narcotics cultivation is related to overall development problems andthat the vast majority of all individuals employed in the cultivationof illicit narcotics reside in the developing countries and are among
the poorest of the poor in those countries and that therefore the ultimate success of any effort to eliminate illicit narcotics production
depends upon the availability of alternative economic opportunities
for those individuals, upon other factors which assistance under
this chapter could address, as well as upon direct narcotics control
efforts.
(b)(1) In planning programs of assistance under this chapter,and chapter 10 of this part, and under chapter 4 of part II for countries in which there is illicit narcotics cultivation, the agency primarily responsible for administering this part should give priority
consideration to programs which would help reduce illicit narcotics
cultivation by stimulating broader development opportunities.
(2) The agency primarily responsible for administering thispart may utilize resources for activities aimed at increasing awareness of the effects of production and trafficking of illicit narcotics
on source and transit countries.
(c) In furtherance of the purposes of this section, the agency
primarily responsible for administering this part shall cooperate
fully with, and share its expertise in development matters with,other agencies of the United States Government involved in narcotics control activities abroad.
SEC. 127. ø22 U.S.C. 2151y¿ ACCELERATED LOAN REPAYMENTS.—The Administrator of the agency primarily responsible foradministering this part shall conduct an annual review of bilateralconcessional loan balances and shall determine and identify thosecountries whose financial resources make possible accelerated loan
repayments. In particular, European countries that were recipientsof concessional loans by predecessor agencies to the agency primarily responsible for administering this part shall be contacted tonegotiate accelerated repayments. The criteria used by the Administrator in making these determinations shall be established in conjunction with the Committee on Foreign Affairs of the House ofRepresentatives and the Committee on Foreign Relations of the
Senate.
SEC. 128. ø22 U.S.C. 2151z¿ TARGETED ASSISTANCE.—(a) The
President shall use poverty measurement standards, such as thosedeveloped by the International Bank for Reconstruction and Development, and other appropriate measurements in determining target populations for United States development assistance, andshall strengthen United States efforts to assure that a substantial
percentage of development assistance under this chapter directly
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Sec. 129

improves the lives of the poor majority, with special emphasis on
those individuals living in absolute poverty.
(b) To the maximum extent possible, activities under this chapter that attempt to increase the institutional capabilities of privateorganizations or governments, or that attempt to stimulate scientific and technological research, shall be designed and monitored
to ensure that the ultimate beneficiaries of these activities are thepoor majority.
SEC. 129. ø22 U.S.C. 2152¿ PROGRAM TO PROVIDE TECHNICAL ASSISTANCE TO FOREIGN GOVERNMENTS AND FOREIGN CENTRAL BANKS OF DEVELOPING OR TRANSITIONAL COUNTRIES.
(a) ESTABLISHMENT OF PROGRAM.—(1) IN GENERAL.—Not later than 150 days after the date of

the enactment of this section, the Secretary of the Treasury,
after consultation with the Secretary of State and the Administrator of the United States Agency for International Development, is authorized to establish a program to provide technicalassistance to foreign governments and foreign central banks ofdeveloping or transitional countries.
(2) ROLE OF SECRETARY OF STATE.—The Secretary of State
shall provide foreign policy guidance to the Secretary to ensurethat the program established under this subsection is effectively integrated into the foreign policy of the United States.
(b) CONDUCT OF PROGRAM.—(1) IN GENERAL.—In carrying out the program establishedunder subsection (a), the Secretary shall provide economic andfinancial technical assistance to foreign governments and foreign central banks of developing and transitional countries by
providing advisers with appropriate expertise to advance theenactment of laws and establishment of administrative procedures and institutions in such countries to promote macroeconomic and fiscal stability, efficient resource allocation,transparent and market-oriented processes and sustainableprivate sector growth.
(2) ADDITIONAL REQUIREMENTS.—To the extent practicable,
such technical assistance shall be designed to establish—(A) tax systems that are fair, objective, and efficiently
gather sufficient revenues for governmental operations;(B) debt issuance and management programs that rely
on market forces;(C) budget planning and implementation that permits
responsible fiscal policy management;(D) commercial banking sector development that efficiently intermediates between savers and investors; and(E) financial law enforcement to protect the integrityof financial systems, financial institutions, and government programs.
(3) EMPHASIS ON ANTI-CORRUPTION.—Such technical assistance shall include elements designed to combat anti-competitive, unethical, and corrupt activities, including protection
against actions that may distort or inhibit transparency inmarket mechanisms and, to the extent applicable, privatization
procedures.
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Sec. 129FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

58(c) ADMINISTRATIVE REQUIREMENTS.—In carrying out the program established under subsection (a), the Secretary—(1) shall establish a methodology for identifying and selecting foreign governments and foreign central banks to receive
assistance under the program;(2) prior to selecting a foreign government or foreign central bank to receive assistance under the program, shall receive the concurrence of the Secretary of State with respect tothe selection of such government or central bank and with respect to the cost of the assistance to such government or central bank;(3) shall consult with the heads of appropriate Executive
agencies of the United States, including the Secretary of Stateand the Administrator of the United States Agency for International Development, and appropriate international financial
institutions to avoid duplicative efforts with respect to thoseforeign countries for which such agencies or organizations provide similar assistance;(4) shall ensure that the program is consistent with theInternational Affairs Strategic Plan and Mission Performance
Plan of the United States Agency for International Development;(5) shall establish and carry out a plan to evaluate the program.
(d) ADMINISTRATIVE AUTHORITIES.—In carrying out the program established under subsection (a), the Secretary shall have thefollowing administrative authorities:(1) The Secretary may provide allowances and benefits
under chapter 9 of title I of the Foreign Service Act of 1980 (22U.S.C. 4081 et seq.) to any officer or employee of any agencyof the United States Government performing functions under
this section outside the United States.
(2)(A) The Secretary may allocate or transfer to any agency of the United States Government any part of any funds
available for carrying out this section, including any advanceto the United States Government by any country or international organization for the procurement of commodities, supplies, or services.
(B) Such funds shall be available for obligation and expenditure for the purposes for which such funds were authorized, in accordance with authority granted in this section orunder authority governing the activities of the agency of theUnited States Government to which such funds are allocatedor transferred.
(3) Appropriations for the purposes of or pursuant to thissection, and allocations to any agency of the United States
Government from other appropriations for functions directly
related to the purposes of this section, shall be available for—(A) contracting with individuals for personal services
abroad, except that such individuals shall not be regarded
as employees of the United States Government for the purpose of any law administered by the Office of Personnel
Management;
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Sec. 129(B) the purchase and hire of passenger motor vehicles,
except that passenger motor vehicles may be purchased
only—(i) for use in foreign countries; and(ii) if the Secretary or the Secretary’s designee has
determined that the vehicle is necessary to accomplish
the mission;(C) the purchase of insurance for official motor vehicles acquired for use in foreign countries;(D)(i) the rent or lease outside the United States, notto exceed 5 years, of offices, buildings, grounds, and quarters, including living quarters to house personnel, consistent with the relevant interagency housing board policy,
and payments therefor in advance;(ii) maintenance, furnishings, necessary repairs, improvements, and alterations to properties owned or rented
by the United States Government or made available for
use to the United States Government outside the UnitedStates; and(iii) costs of insurance, fuel, water, and utilities forsuch properties;(E) expenses of preparing and transporting to theirformer homes or places of burial the remains of foreign
participants or members of the family of foreign participants, who may die while such participants are away fromtheir homes participating in activities carried out withfunds covered by this section;(F) notwithstanding any other provision of law, transportation and payment of per diem in lieu of subsistence
to foreign participants engaged in activities of the program
under this section while such participants are away fromtheir homes in countries other than the United States, atrates not in excess of those prescribed by the standardized
Government travel regulations;(G) expenses in connection with travel of personnel
outside the United States, including travel expenses of dependents (including expenses during necessary stop-overs
while engaged in such travel), and transportation of personal effects, household goods, and automobiles of such
personnel when any part of such travel or transportation
begins in one fiscal year pursuant to travel orders issued
in that fiscal year, notwithstanding the fact that such travel or transportation may not be completed during the same
fiscal year, and cost of transporting automobiles to andfrom a place of storage, and the cost of storing automobilesof such personnel when it is in the public interest or more
economical to authorize storage; and(H) grants to, and cooperative agreements and contracts with, any individual, corporation, or other body of
persons, nonprofit organization, friendly government or
government agency, whether within or without the UnitedStates, and international organizations, as the Secretary
determines is appropriate to carry out the purposes of thissection.
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Sec. 129FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

60(4) Whenever the Secretary determines it to be consistent
with the purposes of this section, the Secretary is authorized
to furnish services and commodities on an advance-of-funds
basis to any friendly country or international organization thatis not otherwise prohibited from receiving assistance under
this Act. Such advances may be credited to the currently applicable appropriation, account, or fund of the Department of theTreasury and shall be available for the purposes for whichsuch appropriation, account, or fund is authorized to be used.
(e) ISSUANCE OF REGULATIONS.—The Secretary is authorized toissue such regulations with respect to personal service contractors
as the Secretary deems necessary to carry out this section.
(f) RULE OF CONSTRUCTION.—Nothing in this section shall be
construed to infringe upon the powers or functions of the Secretaryof State (including the powers or functions described in section 103
of the Omnibus Diplomatic Security and Antiterrorism Act of 1986
(22 U.S.C. 4802)) or of any chief of mission (including the powers
or functions described in section 207 of the Foreign Service Act of1980 (22 U.S.C. 3927)).
(g) TERMINATION OF ASSISTANCE.—The Secretary shall conclude assistance activities for a recipient foreign government or foreign central bank under the program established under subsection(a) if the Secretary, after consultation with the appropriate officersof the United States, determines that such assistance has resulted
in the enactment of laws or the establishment of institutions inthat country that promote fiscal stability and administrative procedures, efficient resource allocation, transparent and market-oriented processes and private sector growth in a sustainable manner.
(h) REPORT.—(1) IN GENERAL.—Not later than 3 months after the dateof the enactment of this section, and every 6 months thereafter, the Secretary shall prepare and submit to the appropriate congressional committees a report on the conduct of the
program established under this section during the preceding 6month period.
(2) DEFINITION.—In this subsection, the term ‘‘appropriate
congressional committees’’ means—(A) the Committee on International Relations and theCommittee on Appropriations of the House of Representatives; and(B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate.
(i) DEFINITIONS.—In this section:(1) DEVELOPING OR TRANSITIONAL COUNTRY.—The term‘‘developing or transitional country’’ means a country eligible toreceive development assistance under this chapter.
(2) INTERNATIONAL FINANCIAL INSTITUTION.—The term‘‘international financial institution’’ means the International
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ment Corporation, the European Bank for Reconstruction andDevelopment, and the Bank for Economic Cooperation and Development in the Middle East and North Africa.
(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Treasury.
(4) TECHNICAL ASSISTANCE.—The term ‘‘technical assistance’’ includes—(A) the use of short-term and long-term expert advisers to assist foreign governments and foreign central
banks for the purposes described in subsection (b)(1);(B) training in the recipient country, the UnitedStates, or elsewhere for the purposes described in subsection (b)(1);(C) grants of goods, services, or funds to foreign governments and foreign central banks;(D) grants to United States nonprofit organizations toprovide services or products which contribute to the provision of advice to foreign governments and foreign central
banks; and(E) study tours for foreign officials in the UnitedStates or elsewhere for the purpose of providing technicalinformation to such officials.
(5) FOREIGN PARTICIPANT.—The term ‘‘foreign participant’’means the national of a developing or transitional country thatis receiving assistance under the program established undersubsection (a) who has been designated to participate in activities under such program.
(j) AUTHORIZATION OF APPROPRIATIONS.—(1) IN GENERAL.—There are authorized to be appropriatedto carry out this section $5,000,000 for fiscal year 1999.
(2) AVAILABILITY OF AMOUNTS.—Amounts authorized to beappropriated under paragraph (1) are authorized to remain
available until expended.
SEC. 130. ø22 U.S.C. 2152¿ ASSISTANCE FOR VICTIMS OF TORTURE.
(a) IN GENERAL.—The President is authorized to pr

ovide assistance for the rehabilitation of victims of torture.
(b) ELIGIBILITY FOR GRANTS.—Such assistance shall be provided in the form of grants to treatment centers and programs inforeign countries that are carrying out projects or activities specifically designed to treat victims of torture for the physical and psychological effects of the torture.
(c) USE OF FUNDS.—Such assistance shall be available—(1) for direct services to victims of torture; and(2) to provide research and training to health care providers outside of treatment centers or programs described insubsection (b), for the purpose of enabling such providers toprovide the services described in paragraph (1).
øSection 131 repealed by section 8(a) of Public Law 108–484(118 Stat. 3931).¿øSubsections (a) and (b) of section 5 of Public Law 108–484(118 Stat. 3927) transfers section 132 to title VI of chapter 2 ofPart I and redesignates such section as section 257.¿
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62

SEC. 133. ø22 U.S.C. 2152c¿ PROGRAMS TO ENCOURAGE GOOD GOVERNANCE.
(a) ESTABLISHMENT OF PROGRAMS.—(1) IN GENERAL.—The President is authorized to establish

programs that combat corruption, improve transparency andaccountability, and promote other forms of good governance incountries described in paragraph (2).
(2) COUNTRIES DESCRIBED.—A country described in thisparagraph is a country that is eligible to receive assistanceunder this part (including chapter 4 of part II of this Act) or
the Support for East European Democracy (SEED) Act of 1989.
(3) PRIORITY.—In carrying out paragraph (1), the President
shall give priority to establishing programs in countries thatreceived a significant amount of United States foreign assistance for the prior fiscal year, or in which the United States has
a significant economic interest, and that continue to have themost persistent problems with public and private corruption.
In determining which countries have the most persistent problems with public and private corruption under the preceding
sentence, the President shall take into account criteria such as
the Transparency International Annual Corruption Perceptions
Index, standards and codes set forth by the International Bankfor Reconstruction and Development and the International
Monetary Fund, and other relevant criteria.
(4) RELATION TO OTHER LAWS.—(A) IN GENERAL.—Assistance provided for countries
under programs established pursuant to paragraph (1)may be made available notwithstanding any other provision of law that restricts assistance to foreign countries.
Assistance provided under a program established pursuant
to paragraph (1) for a country that would otherwise be restricted from receiving such assistance but for the preceding sentence may not be provided directly to the government of the country.
(B) EXCEPTION.—Subparagraph (A) does not apply
with respect to—(i) section 620A of this Act or any comparable provision of law prohibiting assistance to countries that
support international terrorism; or(ii) section 907 of the Freedom for Russia andEmerging Eurasian Democracies and Open Markets
Support Act of 1992.
(b) SPECIFIC PROJECTS AND ACTIVITIES.—The programs established pursuant to subsection (a) shall include, to the extent appropriate, projects and activities that—(1) support responsible independent media to promote
oversight of public and private institutions;(2) implement financial disclosure among public officials,
political parties, and candidates for public office, open budgeting processes, and transparent financial management systems;(3) support the establishment of audit offices, inspectors
general offices, third party monitoring of government procurement processes, and anti-corruption agencies;
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Sec. 134(4) promote responsive, transparent, and accountable legislatures and local governments that ensure legislative and local
oversight and whistle-blower protection;(5) promote legal and judicial reforms that criminalize corruption and law enforcement reforms and development that encourage prosecutions of criminal corruption;(6) assist in the development of a legal framework for commercial transactions that fosters business practices that promote transparent, ethical, and competitive behavior in the economic sector, such as commercial codes that incorporate international standards and protection of intellectual property
rights;(7) promote free and fair national, state, and local elections;(8) foster public participation in the legislative process andpublic access to government information; and(9) engage civil society in the fight against corruption.
(c) CONDUCT OF PROJECTS AND ACTIVITIES.—Projects and activities under the programs established pursuant to subsection (a)may include, among other things, training and technical assistance(including drafting of anti-corruption, privatization, and competitive statutory and administrative codes), drafting of anti-corruption, privatization, and competitive statutory and administrativecodes, support for independent media and publications, financing of
the program and operating costs of nongovernmental organizations
that carry out such projects or activities, and assistance for travelof individuals to the United States and other countries for suchprojects and activities.
ø(d) Repealed.¿(e) FUNDING.—Amounts made available to carry out the otherprovisions of this part (including chapter 4 of part II of this Act)and the Support for East European Democracy (SEED) Act of 1989
shall be made available to carry out this section.
SEC. 134. ø22 U.S.C. 2152d¿ ASSISTANCE TO FOREIGN COUNTRIES TO
MEET MINIMUM STANDARDS FOR THE ELIMINATION OF
TRAFFICKING.
(a) AUTHORIZATION.—The President is authorized to provide as-sistance to foreign countries directly, or through nongovernmental
and multilateral organizations, for programs, projects, and activities designed to meet the minimum standards for the eliminationof trafficking (as defined in section 103 of the Trafficking Victims
Protection Act of 2000), including—(1) the drafting of laws to prohibit and punish acts of trafficking;(2) the investigation and prosecution of traffickers, including investigation of individuals and entities that may be involved in trafficking in persons involving sexual exploitation;(3) the creation and maintenance of facilities, programs,
projects, and activities for the protection of victims; and(4) the expansion of exchange programs and international
visitor programs for governmental and nongovernmental personnel to combat trafficking.
(b) FUNDING.—Amounts made available to carry out the otherprovisions of this part (including chapter 4 of part II of this Act)
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and the Support for East European Democracy (SEED) Act of 1989
shall be made available to carry out this section. Assistance may
be provided under this section notwithstanding section 660 of thisAct.
SEC. 135. ø22 U.S.C. 2152f¿ ASSISTANCE FOR ORPHANS AND OTHER
VULNERABLE CHILDREN.
(a) FINDINGS.—Congress finds the following:(1) There are more than 143,000,000 orphans living subSaharan Africa, Asia, Latin America, and the Caribbean. Of
this number, approximately 16,200,000 children have lost bothparents.
(2) The HIV/AIDS pandemic has created an unprecedented
orphan crisis, especially in sub-Saharan Africa, where children
have been hardest hit. The pandemic is deepening poverty inentire communities, and is jeopardizing the health, safety, andsurvival of all children in affected countries. It is estimatedthat 14,000,000 children have lost one or both parents to AIDS.
(3) The orphans crisis in sub-Saharan Africa has implications for human welfare, development, and political stability
that extend far beyond the region, affecting governments andpeople worldwide.
(4) Extended families and local communities are struggling
to meet the basic needs of orphans and vulnerable children byproviding food, health care including treatment of children living with HIV/AIDS, education expenses, and clothing.
(5) Famines, natural disasters, chronic poverty, ongoing
conflicts, and civil wars in developing countries are adversely
affecting children in these countries, the vast majority of whom
currently do not receive humanitarian assistance or other support from the United States.
(6) The United States Government administers various assistance programs for orphans and other vulnerable children indeveloping countries. In order to improve targeting and programming of resources, the United States Agency for International Development should develop methods to adequately
track the overall number of orphans and other vulnerable children receiving assistance, the kinds of programs for such children by sector and location, and any other such related data
and analysis.
(7) The United States Agency for International Development should improve its capabilities to deliver assistance to orphans and other vulnerable children in developing countries
through partnerships with private volunteer organizations, including community and faith-based organizations.
(8) The United States Agency for International Development should be the primary United States Government agency
responsible for identifying and assisting orphans and other vulnerable children in developing countries.
(9) Providing assistance to such children is an important
expression of the humanitarian concern and tradition of thepeople of the United States.
(b) DEFINITIONS.—In this section:(1) AIDS.—The term ‘‘AIDS’’ has the meaning given theterm in section 104A(g)(1) of this Act.
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Sec. 135(2) CHILDREN.—The term ‘‘children’’ means persons who
have not attained 18 years of age.
(3) HIV/AIDS.—The term ‘‘HIV/AIDS’’ has the meaning
given the term in section 104A(g)(3) of this Act.
(4) ORPHAN.—The term ‘‘orphan’’ means a child deprived
by death of one or both parents.
(5) PSYCHOSOCIAL SUPPORT.—The term ‘‘psychosocial support’’ includes care that addresses the ongoing psychologicaland social problems that affect individuals, their partners, families, and caregivers in order to alleviate suffering, strengthensocial ties and integration, provide emotional support, and promote coping strategies.
(c) ASSISTANCE.—The President is authorized to provide assistance, including providing such assistance through international or
nongovernmental organizations, for programs in developing countries to provide basic care and services for orphans and other vulnerable children. Such programs should provide assistance—(1) to support families and communities to mobilize theirown resources through the establishment of community-basedorganizations to provide basic care for orphans and other vulnerable children;(2) for school food programs, including the purchase of
local or regional foodstuffs where appropriate;(3) to increase primary school enrollment through theelimination of school fees, where appropriate, or other barriers
to education while ensuring that adequate resources exist forteacher training and infrastructure;(4) to provide employment training and related services fororphans and other vulnerable children who are of legal working age;(5) to protect and promote the inheritance rights of orphans, other vulnerable children, and widows;(6) to provide culturally appropriate psychosocial support
to orphans and other vulnerable children; and(7) to treat orphans and other vulnerable children with
HIV/AIDS through the provision of pharmaceuticals, the recruitment and training of individuals to provide pediatrictreatment, and the purchase of pediatric-specific technologies.
(d) MONITORING AND EVALUATION.—(1) ESTABLISHMENT.—To maximize the sustainable development impact of assistance authorized under this section, andpursuant to the strategy required in section 4 of the Assistancefor Orphans and Other Vulnerable Children in Developing
Countries Act of 2005, the President shall establish a monitoring and evaluation system to measure the effectiveness ofUnited States assistance to orphans and other vulnerable children.
(2) REQUIREMENTS.—The monitoring and evaluation system shall—(A) establish performance goals for the assistance andexpresses such goals in an objective and quantifiable form,
to the extent feasible;
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66(B) establish performance indicators to be used inmeasuring or assessing the achievement of the performance goals described in subparagraph (A); and(C) provide a basis for recommendations for adjustments to the assistance to enhance the impact of assistance.
(e) SPECIAL ADVISOR FOR ASSISTANCE TO ORPHANS AND VULNERABLE CHILDREN.—(1) APPOINTMENT.—(A) IN GENERAL.—The Secretary of State, in consultation with the Administrator of the United States Agency
for International Development, shall appoint a Special Advisor for Assistance to Orphans and Vulnerable Children.
(B) DELEGATION.—At the discretion of the Secretary ofState, the authority to appoint a Special Advisor undersubparagraph (A) may be delegated by the Secretary ofState to the Administrator of the United States Agency forInternational Development.
(2) DUTIES.—The duties of the Special Advisor for Assistance to Orphans and Vulnerable Children shall include the following:(A) Coordinate assistance to orphans and other vulnerable children among the various offices, bureaus, and field
missions within the United States Agency for International Development.
(B) Advise the various offices, bureaus, and field missions within the United States Agency for International
Development to ensure that programs approved for assistance under this section are consistent with best practices,
meet the requirements of this Act, and conform to thestrategy outlined in section 4 of the Assistance for Orphans and Other Vulnerable Children in Developing Countries Act of 2005.
(C) Advise the various offices, bureaus, and field missions within the United States Agency for International
Development in developing any component of their annual
plan, as it relates to assistance for orphans or other vulnerable children in developing countries, to ensure thateach program, project, or activity relating to such assistance is consistent with best practices, meets the requirements of this Act, and conforms to the strategy outlined in
section 4 of the Assistance for Orphans and Other Vulnerable Children in Developing Countries Act of 2005.
(D) Coordinate all United States assistance to orphansand other vulnerable children among United States departments and agencies, including the provision of assistance relating to HIV/AIDS authorized under the UnitedStates Leadership Against HIV/AIDS, Tuberculosis, andMalaria Act of 2003 (Public Law 108–25), and the amendments made by such Act (including section 102 of such Act,and the amendments made by such section, relating to thecoordination of HIV/AIDS programs).
(E) Establish priorities that promote the delivery ofassistance to the most vulnerable populations of orphans
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Sec. 136

and children, particularly in those countries with a highrate of HIV infection among women.
(F) Disseminate a collection of best practices to field
missions of the United States Agency for International Development to guide the development and implementationof programs to assist orphans and vulnerable children.
(G) Administer the monitoring and evaluation systemestablished in subsection (d).
(H) Prepare the annual report required by section 5 of
the Assistance for Orphans and Other Vulnerable Children
in Developing Countries Act of 2005.
(f) AUTHORIZATION OF APPROPRIATIONS.—(1) IN GENERAL.—There is authorized to be appropriated to
the President to carry out this section such sums as may benecessary for each of the fiscal years 2006 and 2007.
(2) AVAILABILITY OF FUNDS.—Amounts made available
under paragraph (1) are authorized to remain available until
expended.
SEC. 136. ø22 U.S.C. 2152h¿ ASSISTANCE TO PROVIDE SAFE WATER,SANITATION, AND HYGIENE.
(a) PURPOSES.—The purposes of assistance authorized by thissection are—(1) to promote good health, economic development, poverty
reduction, women’s empowerment, conflict prevention, and environmental sustainability by providing assistance to expand
access to safe water and sanitation, promoting integrated
water resource management, and improving hygiene for people
around the world;(2) to seek to reduce by one-half from the baseline year
1990 the proportion of people who are unable to reach or afford
safe drinking water and the proportion of people without access to basic sanitation by 2015;(3) to focus water and sanitation assistance toward thecountries, locales, and people with the greatest need;(4) to promote affordability and equity in the provision ofaccess to safe water and sanitation for the very poor, women,
and other vulnerable populations;(5) to improve water efficiency through water demand
management and reduction of unaccounted-for water;(6) to promote long-term sustainability in the affordable
and equitable provision of access to safe water and sanitation
through the creation of innovative financing mechanisms suchas national revolving funds, and by strengthening the capacityof recipient governments and communities to formulate andimplement policies that expand access to safe water and sanitation in a sustainable fashion, including integrated planning;(7) to secure the greatest amount of resources possible, encourage private investment in water and sanitation infrastructure and services, particularly in lower middle-income countries, without creating unsustainable debt for low-income countries or unaffordable water and sanitation costs for the very
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68(8) to promote the capacity of recipient governments toprovide affordable, equitable, and sustainable access to safe
water and sanitation.
(b) AUTHORIZATION.—To carry out the purposes of subsection(a), the President is authorized to furnish assistance for programsin developing countries to provide affordable and equitable accessto safe water, sanitation, and hygiene.
(c) ACTIVITIES SUPPORTED.—Assistance provided under subsection (b) shall, to the maximum extent practicable, be used to—(1) expand affordable and equitable access to safe waterand sanitation for underserved populations;(2) support the design, construction, maintenance, upkeep,
repair, and operation of water delivery and sanitation systems;(3) improve the safety and reliability of water supplies, including environmental management; and(4) improve the capacity of recipient governments and local
communities, including capacity-building programs for improved water resource management.
(d) LOCAL CURRENCY.—The President may use payments madein local currencies under an agreement made under title I of theFood for Peace Act (7 U.S.C. 1701 et seq.) to provide assistanceunder this section.
(e) COORDINATION AND OVERSIGHT.—(1) USAID GLOBAL WATER COORDINATOR.—(A) DESIGNATION.—The Administrator of the UnitedStates Agency for International Development (referred toin this paragraph as ‘‘USAID’’) or the Administrator’s designee, who shall be a current USAID employee serving ina career or non-career position in the Senior Executive
Service or at the level of a Deputy Assistant Administrator
or higher, shall serve concurrently as the USAID Global
Water Coordinator (referred to in this subsection as the‘‘Coordinator’’).
(B) SPECIFIC DUTIES.—The Coordinator shall—(i) provide direction and guidance to, coordinate,
and oversee the projects and programs of USAID authorized under this section;(ii) lead the implementation and revision, not lessfrequently than once every 5 years, of USAID’s portionof the Global Water Strategy required under subsection (j);(iii) seek—(I) to expand the capacity of USAID, subject
to the availability of appropriations, including
through the designation of a lead subject matter
expert selected from among USAID staff in eachhigh priority country designated pursuant to subsection (h);(II) to implement such programs and activities;(III) to take advantage of economies of scale;and(IV) to conduct more efficient and effective
projects and programs;
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Sec. 136(iv) coordinate with the Department of State and
USAID staff in each high priority country designatedpursuant to subsection (h) to ensure that USAID activities and projects, USAID program planning andbudgeting documents, and USAID country development strategies reflect and seek to implement—(I) the safe water, sanitation, and hygiene objectives established in the strategy required undersubsection (j), including objectives relating to the
management of water resources; and(II) international best practices relating to—(aa) increasing access to safe water andsanitation;(bb) conducting hygiene-related activities;
and(cc) ensuring appropriate management ofwater resources; and(v) develop appropriate benchmarks, measurable
goals, performance metrics, and monitoring and evaluation plans for USAID projects and programs authorized under this section.
(2) DEPARTMENT OF STATE SPECIAL COORDINATOR FOR
WATER RESOURCES.—(A) DESIGNATION.—The Secretary of State or the Secretary’s designee, who shall be a current employee of the
Department of State serving in a career or non-career position in the Senior Executive Service or at the level of a
Deputy Assistant Secretary or higher, shall serve concurrently as the Department of State Special Advisor for
Water Resources (referred to in this paragraph as the‘‘Special Advisor’’).
(B) SPECIFIC DUTIES.—The Special Advisor shall—(i) provide direction and guidance to, coordinate,
and oversee the projects and programs of the Department of State authorized under this section;(ii) lead the implementation and revision, not lessthan every 5 years, of the Department of State’s portion of the Global Water Strategy required under subsection (j);(iii) prioritize and coordinate the Department ofState’s international engagement on the allocation,
distribution, and access to global fresh water resources
and policies related to such matters;(iv) coordinate with United States Agency forInternational Development and Department of State
staff in each high priority country designated pursuant to subsection (h) to ensure that United States diplomatic efforts related to safe water, sanitation, andhygiene, including efforts related to management ofwater resources and watersheds and the resolution of
intra- and trans-boundary conflicts over water resources, are consistent with United States national interests; andJune 10, 2019

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70(v) represent the views of the United States Government on the allocation, distribution, and access to
global fresh water resources and policies related tosuch matters in key international fora, including key
diplomatic, development-related, and scientific organizations.
(3) ADDITIONAL NATURE OF DUTIES AND RESTRICTION ON
ADDITIONAL OR SUPPLEMENTAL COMPENSATION.—The responsibilities and specific duties of the Administrator of the UnitedStates Agency for International Development (or the Administrator’s designee) and the Secretary of State (or the Secretary’s
designee) under paragraph (2) or (3), respectively, shall be inaddition to any other responsibilities or specific duties assigned
to such individuals. Such individuals shall receive no additional or supplemental compensation as a result of carrying out
such responsibilities and specific duties under such paragraphs.
(f) PRIORITIES AND CRITERIA FOR MAXIMUM IMPACT AND LONGTERM SUSTAINABILITY.—The Administrator of the United States
Agency for International Development shall ensure that the Agency
for International Development’s projects and programs authorizedunder this section are designed to achieve maximum impact andlong-term sustainability by—(1) prioritizing countries on the basis of the following clearly defined criteria and indicators, to the extent sufficient empirical data are available—(A) the proportion of the population using an unimproved drinking water source;(B) the total population using an unimproved drinking
water source;(C) the proportion of the population without pipedwater access;(D) the proportion of the population using shared orother unimproved sanitation facilities;(E) the total population using shared or other unimproved sanitation facilities;(F) the proportion of the population practicing open
defecation;(G) the total number of children younger than 5 yearsof age who died from diarrheal disease;(H) the proportion of all deaths of children younger
than 5 years of age resulting from diarrheal disease;(I) the national government’s capacity, capability, andcommitment to work with the United States to improve access to safe water, sanitation, and hygiene, including—(i) the government’s capacity and commitment todeveloping the indigenous capacity to provide safe
water and sanitation without the assistance of outside
donors; and(ii) the degree to which such government—(I) identifies such efforts as a priority; and(II) allocates resources to such efforts;(J) the availability of opportunities to leverage existing
public, private, or other donor investments in the water,
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Sec. 136

sanitation, and hygiene sectors, including investments inthe management of water resources; and(K) the likelihood of making significant improvements
on a per capita basis on the health and educational opportunities available to women as a result of increased accessto safe water, sanitation, and hygiene, including access toappropriate facilities at primary and secondary educational
institutions seeking to ensure that communities benefitting from such projects and activities develop the indigenous capacity to provide safe water and sanitation without
the assistance of outside donors;(2) prioritizing and measuring, including through rigorous
monitoring and evaluating mechanisms, the extent to whichsuch project or program—(A) furthers significant improvements in—(i) the criteria set forth in subparagraphs (A)through (H) of paragraph (1);(ii) the health and educational opportunities available to women as a result of increased access to safe
water, sanitation, and hygiene, including access to appropriate facilities at primary and secondary educational institutions; and(iii) the indigenous capacity of the host nation orcommunity to provide safe water and sanitation without the assistance of outside donors;(B) is designed, as part of the provision of safe waterand sanitation to the local community—(i) to be financially independent over the longterm, focusing on local ownership and sustainability;(ii) to be undertaken in conjunction with relevantpublic institutions or private enterprises;(iii) to identify and empower local individuals or
institutions to be responsible for the effective management and maintenance of such project or program; and(iv) to provide safe water or expertise or capacity
building to those identified parties or institutions forthe purposes of developing a plan and clear responsibilities for the effective management and maintenance of such project or program;(C) leverages existing public, private, or other donor
investments in the water, sanitation, and hygiene sectors,
including investments in the management of water resources;(D) avoids duplication of efforts with other UnitedStates Government agencies or departments or those ofother nations or nongovernmental organizations;(E) coordinates such efforts with the efforts of other
United States Government agencies or departments or
those of other nations or nongovernmental organizations
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72

lack of access to clean water, sanitation or hygiene, andother appropriate nongovernmental organizations; and(3) seeking to further the strategy required under subsection (j) after 2018.
(g) USE OF CURRENT AND IMPROVED EMPIRICAL DATA COLLECTION AND REVIEW OF NEW STANDARDIZED INDICATORS.—(1) IN GENERAL.—The Administrator of the United States
Agency for International Development is authorized to use current and improved empirical data collection—(A) to meet the health-based prioritization criteria established pursuant to subsection (f)(1); and(B) to review new standardized indicators in evaluating progress towards meeting such criteria.
(2) CONSULTATION AND NOTICE.—The Administrator
shall—(A) regularly consult with the appropriate congressional committees; and(B) notify such committees not later than 30 days before using current or improved empirical data collection for
the review of any new standardized indicators under paragraph (1) for the purposes of carrying out this section.
(h) DESIGNATION OF HIGH PRIORITY COUNTRIES.—(1) INITIAL DESIGNATION.—Not later than October 1, 2015,
the President shall—(A) designate, on the basis of the criteria set forth insubsection (f)(1) not fewer than 10 countries as high priority countries to be the primary recipients of UnitedStates Government assistance authorized under this section during fiscal year 2016; and(B) notify the appropriate congressional committees ofsuch designations.
(2) ANNUAL DESIGNATIONS.—(A) IN GENERAL.—Except as provided in subparagraph(B), the President shall annually make new designations
pursuant to the criteria set forth in paragraph (1).
(B) DESIGNATIONS AFTER FISCAL YEAR 2018.—Beginningwith fiscal year 2019, designations under paragraph (1)shall be made—(i) based upon the criteria set forth in subsection(f)(1); and(ii) in furtherance of the strategy required undersubsection (j).
(i) TARGETING OF PROJECTS AND PROGRAMS TO AREAS OF
GREATEST NEED.—(1) IN GENERAL.—Not later than 15 days before the obligation of any funds for water, sanitation, or hygiene projects orprograms pursuant to this section in countries that are notranked in the top 50 countries based upon the WASH Needs
Index, the Administrator of the United States Agency for International Development shall notify the appropriate congressional committees of the planned obligation of such funds.
(2) DEFINED TERM.—In this subsection and in subsection(j), the term ‘‘WASH Needs Index’’ means the needs index forwater, sanitation, or hygiene projects or programs authorized
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under this section that has been developed using the criteria
and indicators described in subparagraphs (A) through (H) ofsubsection (f)(1).
(j) GLOBAL WATER STRATEGY.—(1) IN GENERAL.—Not later than October 1, 2017, October
1, 2022, and October 1, 2027, the President, acting through theSecretary of State, the Administrator of the United States
Agency for International Development, and the heads of other
Federal departments and agencies, as appropriate, shall submit a single government-wide Global Water Strategy to the appropriate congressional committees that provides a detailed description of how the United States intends—(A) to increase access to safe water, sanitation, andhygiene in high priority countries designated pursuant tosubsection (h), including a summary of the WASH Needs
Index and the specific weighting of empirical data andother definitions used to develop and rank countries on the
WASH Needs Index;(B) to improve the management of water resources
and watersheds in such countries; and(C) to work to prevent and resolve, to the greatest degree possible, both intra- and trans-boundary conflicts overwater resources in such countries.
(2) AGENCY-SPECIFIC PLANS.—The Global Water Strategy
shall include an agency-specific plan—(A) from the United States Agency for International
Development that describes specifically how the Agency forInternational Development will—(i) carry out the duties and responsibilities assigned to the Global Water Coordinator under subsection (e)(1);(ii) ensure that the Agency for International Development’s projects and programs authorized under
this section are designed to achieve maximum impact
and long-term sustainability, including by implementing the requirements described in subsection (f);and(iii) increase access to safe water, sanitation, andhygiene in high priority countries designated pursuant
to subsection (h);(B) from the Department of State that describes specifically how the Department of State will—(i) carry out the duties and responsibilities assigned to the Special Coordinator for Water Resources
under subsection (e)(2); and(ii) ensure that the Department’s activities authorized under this section are designed—(I) to improve management of water resources
and watersheds in countries designated pursuant
to subsection (h); and(II) to prevent and resolve, to the greatest degree possible, both intra- and trans-boundary conflicts over water resources in such countries; andJune 10, 2019

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74(C) from other Federal departments and agencies, as
appropriate, that describes the contributions of the departments and agencies to implementing the Global Water
Strategy.
(3) INDIVIDUALIZED PLANS FOR HIGH PRIORITY COUNTRIES.—
For each high priority country designated pursuant to subsection (h), the Administrator of the United States Agency forInternational Development shall—(A) develop a costed, evidence-based, and results-oriented plan that—(i) seeks to achieve the purposes of this section;and(ii) meets the requirements under subsection (f);and(B) include such plan in an appendix to the Global
Water Strategy required under paragraph (1).
(4) FIRST TIME ACCESS REPORTING REQUIREMENT.—The
Global Water Strategy shall specifically describe the target
percentage of funding for each fiscal year covered by suchstrategy to be directed toward projects aimed at providing firsttime access to safe water and sanitation.
(5) PERFORMANCE INDICATORS.—The Global Water Strategy shall include specific and measurable goals, benchmarks,
performance metrics, timetables, and monitoring and evaluation plans required to be developed by the Administrator of theUnited States Agency for International Development pursuant
to subsection (e)(1)(B)(v).
(6) CONSULTATION AND BEST PRACTICES.—The Global
Water Strategy shall—(A) be developed in consultation with the heads ofother appropriate Federal departments and agencies; and(B) incorporate best practices from the international
development community.
(k) DEFINITIONS.—In this section—(1) the term ‘‘appropriate congressional committees’’
means—(A) the Committee on Foreign Relations of the Senate;(B) the Committee on Appropriations of the Senate;(C) the Committee on Foreign Affairs of the House ofRepresentatives; and(D) the Committee on Appropriations of the House ofRepresentatives; and(2) the term ‘‘long-term sustainability’’ refers to the abilityof a service delivery system, community, partner, or beneficiaryto maintain, over time, any water, sanitation, or hygiene
project that receives funding pursuant to the amendments
made by the Tropical Forest and Coral Reef Conservation Act
of 1998.
CHAPTER 2—OTHER PROGRAMS
SEC. 201. GENERAL AUTHORITY.— øRepealed—1978¿
SEC. 202. AUTHORIZATION.— øRepealed—1978¿
SEC. 203. FISCAL PROVISIONS.— øRepealed—1978¿
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SEC. 204. DEVELOPMENT LOAN COMMITTEE.— øRepealed—
1978¿
SEC. 205. RELATING TO TRANSFERS TO INTERNATIONAL FINANCIAL INSTITUTIONS.— øRepealed—1972¿
TITLE I—MULTILATERAL AND REGIONAL DEVELOPMENT PROGRAMS

SEC. 206. ø22 U.S.C. 2166¿ REGIONAL DEVELOPMENT IN AFRICA.—The President is requested to seek and to take appropriate action, in cooperation and consultation with African and other interested nations and with international development organizations, tofurther and assist in the advancement of African regional development institutions, including the African Development Bank, withthe view toward promoting African economic development.
SEC. 207. PURPOSES OF DEVELOPMENT ASSISTANCE.— øRepealed—1978¿
SEC. 208. SELF-HELP CRITERIA.— øRepealed—1978¿
SEC. 209. ø22 U.S.C. 2169¿ MULTILATERAL AND REGIONAL PROGRAMS.—(a) The Congress recognizes that the planning and administration of development assistance by, or under the sponsorship of
the United Nations, multilateral lending institutions, and othermultilateral organizations may contribute to the efficiency and effectiveness of that assistance through participation of other donors
in the development effort, improved coordination of policies andprograms, pooling of knowledge, avoidance of duplication of facilities and manpower, and greater encouragement of self-help performance.
(b) It is further the sense of the Congress (1) that where problems or opportunities are common to two or more countries in a region, in such fields as agriculture, education, transportation, communications, power, watershed development, disease control, andestablishment of development banks, these countries often canmore effectively resolve such problems and exploit such opportunities by joining together in regional organizations or working together on regional programs, (2) that assistance often can be utilized more efficiently in regional programs than in separate country
programs, and (3) that to the maximum extent practicable consistent with the purposes of this Act assistance under this Act
should be furnished so as to encourage less developed countries tocooperate with each other in regional development programs.
(c) It is the sense of the Congress that the President should increase, to the extent practicable, the funds provided by the UnitedStates to multilateral lending institutions and multilateral organizations in which the United States participates for use by such institutions and organizations in making loans to foreign countries.
SEC. 211. GENERAL AUTHORITY.— øRepealed—1978¿
SEC. 212. AUTHORIZATION.— øRepealed—1978¿
SEC. 213. ATOMS FOR PEACE.— øRepealed—1962¿
TITLE II—AMERICAN SCHOOLS AND HOSPITALS ABROAD; PROTOTYPEDESALTING PLANT

SEC. 214. ø22 U.S.C. 2174¿ AMERICAN SCHOOLS AND HOSPITALS ABROAD.—(a) The President is authorized to furnish assistance, on such terms and conditions as he may specify, to schools
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76

and libraries outside the United States founded or sponsored byUnited States citizens and serving as study and demonstration centers for ideas and practices of the United States.
(b) The President is authorized, notwithstanding the provisionsof the Mutual Defense Assistance Control Act of 1951 (22 U.S.C.
1611 et seq.) to furnish assistance, on such terms and conditions
as he may specify, to institutions referred to in subsection (a) of
this section, and to hospital centers for medical education and research outside the United States, founded or sponsored by UnitedStates citizens.
(c)(1) To carry out the purposes of this section, there are authorized to be appropriated to the President $35,000,000 for fiscal
year 1986 and $35,000,000 for fiscal year 1987.
(2) Amounts appropriated under paragraph (1) are authorized
to remain available until expended.
(d) Notwithstanding the provisions of subsection (b), funds appropriated under this section may be used for assistance to centers
for pediatric plastic and reconstructive surgery established by Children’s Medical Relief International, except that assistance may not
be furnished for the domestic operations of any such center locatedin the United States, its territories or possessions.
SEC. 215. LOANS TO SMALL FARMERS.— øRepealed—1978¿
SEC. 216. VOLUNTARY AGENCIES.— øRepealed—1978¿
SEC. 217. USED EQUIPMENT.— øRepealed—1978¿
SEC. 218. FISH AND OTHER PROTEIN CONCENTRATES.— øRepealed—1978¿
SEC. 219. ø22 U.S.C. 2179¿ PROTOTYPE DESALTING PLANT.—(a)In furtherance of purposes of this part and for the purpose of improving existing, and developing and advancing new technology
and experience in the design, construction, and operation of largescale desalting plants of advanced concepts which will contributematerially to low-cost desalination in all countries, including theUnited States, the President, if he determines it to be feasible, isauthorized to participate in the development of a large-scale water
treatment and desalting prototype plant and necessary appurtenances to be constructed in Israel as an integral part of a dualpurpose power generating and desalting project. Such participation
shall include financial, technical, and such other assistance as the
President deems appropriate to provide for the study, design, construction, and, for a limited demonstration period of not to exceed
five years, operation and maintenance of the water treatment anddesalting facilities of the dual-purpose project.
(b) Any agreement entered into under subsection (a) of thissection shall include such terms and conditions as the President
deems appropriate to insure, among other things, that all information, products, uses, processes, patents, and other developments obtained or utilized in the development of this prototype plant will
be available without further cost to the United States for the use
and benefit of the United States throughout the world, and to insure that the United States, its officers and employees have a permanent right to review data and have access to such plant for the
purpose of observing its operations and improving science and technology in the field of desalination.
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Sec. 221(c) In carrying out the provisions of this section, the President
may enter into contracts with public or private agencies and withany person without regard to sections 3648 and 3709 of the Revised
Statutes of the United States (31 U.S.C. 529 and 41 U.S.C. 5).
(d) Nothing in this section shall be construed as intending to
deprive the owner of any background patent or any right whichsuch owner may have under that patent.
(e) In carrying out the provisions of this section, the President
may utilize the personnel, services, and facilities of any Federal
agency.
(f) The United States costs, other than its administrative costs,
for the study, design, construction, and operation of a prototype
plant under this section shall not exceed either 50 per centum of
the total capital costs of the facilities associated with the production of water, and 50 per centum of the operation and maintenancecosts for the demonstration period, or $20,000,000, whichever isless. There are authorized to be appropriated, subject to the limitations of this subsection, such sums as may be necessary to carryout the provisions of this section, including administrative costs
thereof. Such sums are authorized to remain available until expended.
(g) No funds appropriated for the Office of Saline Water pursuant to the appropriation authorized by the Act of July 11, 1969 (83Stat. 45, Public Law 91–43), or prior authorization Acts, shall be
used to carry out the purposes of this section.
SEC. 220. PROGRAMS FOR PEACEFUL COMMUNICATION.— øRepealed—1978¿
SEC. 220A. SUEZ CANAL.— øRepealed—1978¿
TITLE III—HOUSING AND OTHER CREDIT GUARANTYPROGRAMS
SEC. 221. ø22 U.S.C. 2181¿ HOUSING GUARANTIES.—The Congress recognizes that shelter, including essential urban development services, is among the most fundamental of human needs.
Shelter for most people in the developing countries consists largelyof domestic materials assembled by local labor. While recognizingthat most financing for such shelter must come from domestic resources, the Congress finds that carefully designed programs involving United States capital and expertise can increase the availability of domestic financing for improved shelter and related services for low-income people by demonstrating to local entrepreneurs
and institutions that providing low-cost shelter can be financially
viable. The Congress reaffirms, therefore, that the United Statesshould continue to assist developing countries in marshalling resources for low-cost shelter. Particular attention should be given to
programs which will support pilot projects for low-cost shelter or
which will have a maximum demonstration impact on local institutions and national policy. The Congress declares that the long run
goal of all such programs should be to develop domestic construction capabilities and to stimulate local credit institutions to makeavailable domestic capital and other management and technologicalresources required for effective low-cost shelter programs and policies.
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78

SEC. 222. ø22 U.S.C. 2182¿ AUTHORIZATION.—(a) To carry out
the policy of section 221, the President is authorized to issue guaranties to eligible investors (as defined in section 238(c)) assuring
against losses incurred in connection 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 $2,558,000,000. The authority of thissection shall continue through September 30, 1992. The President
may issue regulations from time to time with regard to the terms
and conditions upon which such guaranties shall be issued and theeligibility of lenders.
(b) Activities carried out under this section shall emphasize—(1) projects which provide improved home sites to poorfamilies on which to build shelter, and related services;(2) projects comprised of expandable core shelter units onserviced sites;(3) slum upgrading projects designed to conserve and improve existing shelter;(4) shelter projects for low income people designed for demonstration or institution building purposes; and(5) community facilities and services in support of projects
authorized under this section to improve the shelter occupiedby the poor.
(c) In issuing guaranties under this section with respect toprojects in a country which require the use or conservation of energy, the President shall give consideration to the use of solar energy technologies, where such technologies are economically andtechnically feasible. Technologies which may be used include solar
hot water systems, solar heating and cooling, passive solar heating,biomass conversion, photovoltaic and wind applications, and community-scale solar thermal applications.
(k) 14 The total principal amount of guaranties issued under
this section for each of the fiscal years 1986 and 1987 shall be comparable to the total principal amount of such guaranties issued forfiscal year 1984, subject to the dollar limitations on the issuanceof guaranties under this section which are contained in subsection(a) and in appropriation Acts.
SEC. 222A. ø22 U.S.C. 2182a¿ AGRICULTURAL AND PRODUCTIVE
CREDIT AND SELF-HELP COMMUNITY DEVELOPMENT PROGRAMS.—(a)It is the sense of the Congress that in order to stimulate the participation of the private sector in the economic development of lessdeveloped countries, the authority conferred by this section should
be used to establish pilot programs to encourage private banks,
credit institutions, similar private lending organizations, cooperatives, and private nonprofit development organizations to makeloans on reasonable terms to organized groups and individuals residing in a community for the purpose of enabling such groups andindividuals to carry out agricultural credit and self-help community
development projects for which they are unable to obtain financial
assistance on reasonable terms. Agricultural credit and assistance
14 Sec. 313(c) of the International Security and Development Cooperation Act of 1985 (Public
Law 99–83; 99 Stat 190) added subsec. (k). This subsection should probably be labeled ‘‘(d)’’ instead of ‘‘(k)’’.

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Sec. 222A

for self-help community development projects should include, but
not be limited to, material and such projects as wells, pumps, farmmachinery, improved seed, fertilizer, pesticides, vocational training,food industry development, nutrition projects, improved breeding
stock for farm animals, sanitation facilities, and looms and otherhandicraft aids.
(b) To carry out the purposes of subsection (a), the agency primarily responsible for administering part I is authorized to issue
guaranties, on such terms and conditions as it shall determine, toprivate lending institutions, cooperatives, and private nonprofit development organizations assuring against loss of not to exceed 50
per centum of the portfolio of such loans made by any lender to organized groups or individuals residing in a community to enable
such groups or individuals to carry out agricultural credit and selfhelp community development projects for which they are unable toobtain financial assistance on reasonable terms. In no event shallthe liability of the United States exceed 75 per centum of any one
loan.
(c) The total face amount of guaranties issued under this section outstanding at any one time shall not exceed $20,000,000. Not
more than 10 per centum of such sum shall be provided for any one
institution, cooperative, or organization.
(d) The Inter-American Foundation shall be consulted in developing criteria for making loans eligible for guaranty coverage in
Latin America under this section. 15(e) Not to exceed $3,000,000 of the guaranty reserve established under section 223(b) shall be available to make such payments as may be necessary to discharge liabilities under guaranties issued under this section or any guaranties previously issued
under section 240 of this Act.
(f) Funds held by the Overseas Private Investment Corporation
pursuant to section 236 may be available for meeting necessary administrative and operating expenses for carrying out the provisionsof this section through June 30, 1976.
(g) The Overseas Private Investment Corporation shall, uponenactment of this subsection, transfer to the agency primarily responsible for administering part I all obligations, assets, and related rights and responsibilities arising out of, or related to thepredecessor program provided for in section 240 of this Act.
(h) The authority of this section shall continue through September 30, 1988.
(i) Notwithstanding the limitations in subsection (c) of this section, foreign currencies owned by the United States and determinedby the Secretary of the Treasury to be excess to the needs of theUnited States may be utilized to carry out the purposes of this section, including the discharge of liabilities under this subsection.
15 The amendmend made by section 585(h)(3) of Public Law 106–113 repealing this subsection
is as follows:(j) EFFECTIVE DATES.—The repeal made by subsection (c)(2) and the amendments made bysubsection (h) shall take effect upon the date of transmittal to Congress of the certification described in subsection (d)(4).
Subsection (d)(4) reads as follows:(4) CERTIFICATION REQUIRED.—Whenever the Director determines that the responsibilities described in paragraph (1) have been fully discharged, the Director shall socertify to the appropriate congressional committees.

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80

The authority conferred by this subsection shall be in addition toauthority conferred by any other provision of law to implement
guaranty programs utilizing excess local currency.
SEC. 223. ø22 U.S.C. 2183¿ GENERAL PROVISIONS.—(a) A fee
shall be charged for each guaranty issued under section 222 or
222A in an amount to be determined by the President. In the eventthe fee to be charged for such type guaranty is reduced, fees to be
paid under existing contracts for the same type of guaranty may
be similarly reduced.
(b) The amount of $50,000,000 of fees accumulated under priorinvestment guaranty provisions repealed by the Foreign Assistance
Act of 1969, together with all fees collected in connection withguaranties issued under section 222 or under prior housing guaranty authorities, shall be available for meeting necessary administrative and operating expenses of carrying out the provisions of section 222 and administering housing guaranties heretofore authorized under this title and under prior housing guaranty provisions
repealed by the Foreign Assistance Act of 1969 (including, but notlimited to expenses pertaining to personnel, supplies, and printing),
subject to such limitations as may be imposed in annual appropriation Acts; for meeting management and custodial costs incurredwith respect to currencies or other assets acquired under guaranties made pursuant to section 222 or heretofore pursuant to thistitle or prior Latin American and other housing guaranty authorities repealed by the Foreign Assistance Act of 1969; and to pay thecost of investigating and adjusting (including cost of arbitration)
claims under such guaranties; and shall be available for expenditure in discharge of liabilities under such guaranties until suchtime as all such property has been disposed of and all such liabilities have been discharged or have expired, or until all such fees
have been expended in accordance with the provisions of this subsection. Fees collected in connection with guaranties issued under
section 222A shall likewise be available to meet similar expenses,
costs, or liabilities incurred in connection with the programs authorized by that section. All of the foregoing fees referred to in thissection together with earnings thereon and other income arisingfrom guaranty operations under this title shall be held in a revolving fund account maintained in the Treasury of the United States.
All funds in such account may be invested in obligations of theUnited States. Any interest or other receipts derived from such investments shall be credited to such account and may be used forthe purposes cited in this section.
(c) Any payments made to discharge liabilities under guaranties issued under this title or section 222 or heretofore under prior
Latin American or other housing guaranty authorities repealed by
the Foreign Assistance Act of 1969, shall be paid first out of fees
referred to in subsection (b) (excluding amounts required for purposes other than the discharge of liabilities under guaranties) as
long as such fees are available, and thereafter shall be paid out offunds, if any, realized from the sale of currencies or other assets
acquired in connection with any payment made to discharge liabilities under such guaranties as long as funds are available, and finally out of funds hereafter made available pursuant to subsection(e).
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Sec. 223(d) All guaranties issued under section 222 or 222A or previously under section 240 of this Act or heretofore under this title
or under prior Latin American or other housing guaranty authority
repealed by the Foreign Assistance Act of 1969 shall constitute obligations, in accordance with the terms of such guaranties of theUnited States of America and the full faith and credit of the UnitedStates of America is hereby pledged for the full payment and performance of such obligations.
(e)(1) There is hereby authorized to be appropriated to the
President such amounts, to remain available until expended, as
may be necessary from time to time to carry out the purposes ofthis title.
(2)(A) In order to meet obligations incurred for the payment ofclaims pursuant to loan guaranties described in subsection (d), theAdministrator of the agency primarily responsible for administering part I may, to the extent that reserves are not sufficient,borrow from time to time from the Treasury except that—(i) the Administrator may exercise the authority to borrow
under this paragraph only to such extent or in such amounts
as are provided in advance in appropriation Acts; and(ii) the amount borrowed under this paragraph which isoutstanding at any one time may not exceed $100,000,000.
(B) Any such borrowing shall bear interest at a rate determined by the Secretary of the Treasury, taking into account thecurrent average market yield on outstanding marketable obligations of the United States of comparable maturities. The Secretaryof the Treasury shall make loans under this paragraph and forsuch purpose may borrow on the credit of the United States in accordance with subchapter I of chapter 31 of title 31 of the UnitedStates Code.
(f) In the case of any loan investment guaranteed under section
222, the agency primarily responsible for administering part I shallprescribe the maximum rate of interest allowable to the eligible investor, which maximum rate shall not exceed by more than 1 per
centum the then current rate of interest applicable to housing
mortgages insured by the Department of Housing and Urban Development. The maximum allowable rate of interest under this subsection shall be prescribed by the agency as of the date the project
covered by the investment is officially authorized and, prior to the
execution of the contract, the agency may amend such rate at its
discretion, consistent with the provisions of subsection (f).
(g) Housing guaranties committed, authorized, or outstanding
heretofore under this title or under prior housing guaranty authorities repealed by the Foreign Assistance Act of 1969 shall continue
subject to provisions of law originally applicable thereto and feescollected hereafter with respect to such guaranties shall be available for the purposes specified in subsection (b).
(h) No payment may be made under any guaranty issued pursuant to this title for any loss arising out of fraud or misrepresentation for which the party seeking payment is responsible.
(i) øRepealed—1978¿(j) Guaranties shall be issued under section 222 only for housing projects which are coordinated with and complementary to any
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82

part and which are specifically designed to demonstrate the feasibility and suitability of particular kinds of housing or of financial
or other institutional arrangements. Of the aggregate face value of
housing guaranties hereafter issued under this title, not less than90 per centum shall be issued for housing suitable for families withincome below the median income (below the median urban income
for housing in urban areas) in the country in which the housing islocated. The face value of guaranties issued with respect to housing
in any country shall not exceed $25,000,000 in any fiscal year, andthe average face value of guaranties issued in any fiscal year shallnot exceed $15,000,000. Of the total amount of housing guaranties
authorized to be issued under section 222 through September 30,
1982, not less than a face amount of $25,000,000 shall be issued
for projects in Israel and not less than a face amount of$25,000,000 shall be issued for projects in Egypt.
SEC. 224. ø22 U.S.C. 2184¿ TRADE CREDIT INSURANCE PROGRAM FOR CENTRAL AMERICA.—(a) In order to enable the ExportImport Bank of the United States (hereafter in this section referred
to as the ‘‘Bank’’) to determine that there exists reasonable assurance of repayment as required under section 2(b)(1)(B) of the Export-Import Bank Act of 1945, the agency primarily responsible foradministering part I of this Act (hereafter in this section referred
to as the ‘‘Agency’’) is authorized to provide guarantees to the Bankfor liabilities to be incurred by the Bank in connection with guarantees or insurance provided under the Export-Import Bank Act of1945 for financing for transactions involving the export of goods
and services for the use of the private sector in Central Americancountries.
(b)(1) Guarantees provided by the Agency pursuant to the authority of subsection (a) shall be for short-term guarantees and insurance extended by the Bank which shall be repayable within aperiod not to exceed one year from the date of arrival at the portof importation of the goods and services covered by such guarantees or insurance. Guarantees or insurance extended by the Bankand guaranteed by the Agency pursuant to subsection (a) shall be
provided by the Bank in accordance with criteria and procedures
agreed to by the Agency and the Bank. Such agreement shall also
provide for the establishment of a reserve fund by the Agency, withsuch funds made available to the reserve as the Agency deems necessary to discharge liabilities under guarantees provided by the
Agency pursuant to subsection (a).
(2) The administrator of such agency shall transmit a copy ofsuch agreement to the Speaker of the House of Representatives
and to the Committee on Foreign Relations and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
(c) The Agency shall not enter into any commitments to guarantee under subsection (a) after September 30, 1991.
(d) Of the funds authorized to be appropriated for chapter 4 ofpart II of this Act, there are authorized to be made available suchsums as may be deemed necessary by the Agency to discharge liabilities under guarantees entered into under subsection (a).
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83

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Sec. 225

mitments under subsection (a) may not exceed $300,000,000 of contingent liability for loan principal during fiscal year 1986 and may
not exceed $400,000,000 of contingent liability for loan principal
during fiscal year 1987.
(f) To the extent that any of the funds made available pursuant
to subsection (d) are paid out for a claim arising out of liabilities
guaranteed under subsection (a), amounts received after the dateof such payment, with respect to such claim, shall be credited to
the reserve fund referred to in subsection (b), shall be merged withthe funds in such reserve, and shall be available for the purposeof payments by the Agency to the Bank for guarantees under subsection (a).
(g) Beginning on a date six months after the date of enactmentof this section, and at intervals of six months thereafter, the administrator of the agency primarily responsible for administering
part I of this Act and the President of the Export-Import Bank of
the United States shall prepare and transmit to the Speaker of theHouse of Representatives and the Chairman of the Committee on
Foreign Relations of the Senate a report on the amount and extension of credits during the preceding six-month period.
(h) The Export-Import Bank shall provide without reimbursement such administrative and technical assistance to the Agency as
the Bank and the Agency deem appropriate to assist the Agency incarrying out this section.
SEC. 225. ø22 U.S.C. 2185¿ TRADE CREDIT INSURANCE PROGRAM FOR
POLAND.
(a) GENERAL AUTHORITY.—(1) ASSURANCE TO EXPORT-IMPORT BANK OF REPAYMENT.—

The President is authorized to provide guarantees to the Bankfor liabilities described in paragraph (2) in order to satisfy therequirement of section 2(b)(1)(B) of the Export-Import BankAct of 1945 (12 U.S.C. 635(b)(1)(B)) that the Bank have reasonable assurance of repayment.
(2) LIABILITIES WHICH MAY BE GUARANTEED.—The liabilities that may be guaranteed under paragraph (1) are liabilities incurred by the Bank in connection with guarantees or insurance provided under the Export-Import Bank Act of 1945
for financing for transactions involving the export of goods andservices for the use of the private sector in Poland.
(b) GUARANTEES AVAILABLE ONLY FOR SHORT-TERM GUARANTEES AND INSURANCE.—Guarantees provided under subsection (a)shall be for short-term guarantees and insurance extended by the
Bank which shall be repayable within a period not to exceed one
year from the date of arrival at the port of importation of the goods
and services covered by such guarantees or insurance.
(c) AGREEMENT ON CRITERIA AND PROCEDURES.—Guarantees orinsurance extended by the Bank and guaranteed pursuant to subsection (a) shall be provided by the Bank in accordance with criteria and procedures agreed to by the Administrator and the Bank.
(d) RESERVE FUND.—The agreement referred to in subsection(c) shall also provide for the establishment of a reserve fund by theadministering agency, with such funds made available to the reserve as the Administrator deems necessary to discharge liabilities
under guarantees provided under subsection (a).
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Sec. 225

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

84(e) DISCHARGE OF LIABILITIES.—(1) FUNDS WHICH MAY BE USED.—Such amounts of thefunds made available to carry out chapter 4 of part II of thisAct (relating to the economic support fund) as the President
determines are necessary may be made available to discharge
liabilities under guarantees entered into under subsection (a).
(2) CREDITING OF SUBSEQUENT PAYMENTS.—To the extent
that any of the funds made available pursuant to paragraph(1) are paid out for a claim arising out of liabilities guaranteed
under subsection (a), amounts received after the date of suchpayment, with respect to such claim, shall be credited to thereserve fund established pursuant to subsection (d), shall bemerged with the funds in such reserve, and shall be available
for the purpose of payments by the Administrator to the Bankfor guarantees under subsection (a).
(f) APPROPRIATIONS ACTION REQUIRED.—Commitments to guarantee under subsection (a) are authorized only to the extent andin the amounts provided in advance in appropriations Acts.
(g) LIMITATION ON OUTSTANDING COMMITMENTS.—The aggregate amount of outstanding commitments under subsection (a) may
not exceed $200,000,000 of contingent liability for loan principal
during any fiscal year.
(h) BIANNUAL REPORTS TO CONGRESS.—Every 6 months, theAdministrator and the President of the Bank shall prepare andtransmit to the Speaker of the House of Representatives and the
Chairman of the Committee on Foreign Relations of the Senate areport on the amount and extension of guarantees and insurance
provided by the Bank and guaranteed under this section during thepreceding 6-month period.
(i) ADMINISTRATIVE AND TECHNICAL ASSISTANCE.—The Bank
shall provide, without reimbursement, such administrative andtechnical assistance to the administering agency as the Bank and
the Administrator determine appropriate to assist the administering agency in carrying out this section.
(j) FEES AND PREMIUMS.—The Bank is authorized to charge
fees and premiums, in connection with guarantees or insurance
guaranteed by the administering agency under subsection (a), thatare commensurate (in the judgment of the Bank) with the Bank’s
administrative costs and the risks covered by the agency’s guarantees. Any amounts received by the Bank in excess of the estimatedcosts incurred by the Bank in administering such guarantees or insurance—(1) shall be credited to the reserve fund established pursuant to subsection (d),(2) shall be merged with the funds in such reserve, and(3) shall be available for the purpose of payments by theadministering agency to the Bank for guarantees under subsection (a).
(k) RESTRICTIONS NOT APPLICABLE.—Prohibitions on the use offoreign assistance funds for assistance for Poland shall not apply
with respect to the funds made available to carry out this section.
(l) EXPIRATION OF AUTHORITY.—The President may not enter
into any commitments to guarantee under subsection (a) after September 30, 1992.
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FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

Sec. 226(m) DEFINITIONS.—For purposes of this section—(1) the term ‘‘administering agency’’ means the Agency forInternational Development;(2) the term ‘‘Administrator’’ means the Administrator of
the Agency for International Development; and(3) the term ‘‘Bank’’ means the Export-Import Bank of theUnited States.
SEC. 226. ø22 U.S.C. 2186¿ LOAN GUARANTEES TO ISRAEL PROGRAM.
(a) IN GENERAL.—Subject to the terms and conditions of thissection, during the period beginning October 1, 1992, and ending
September 30, 1997, the President is authorized to issue guarantees against losses incurred in connection with loans to Israel madeas a result of Israel’s extraordinary humanitarian effort to resettle
and absorb immigrants into Israel from the republics of the former
Soviet Union, Ethiopia and other countries. In the event that lessthan the full amount authorized to be issued under subsection (b)of this section is issued in such period, the authority to issue thebalance of such guarantees shall be available in the fiscal year ending on September 30, 1998.
(b) FISCAL YEAR LEVELS.—The President is authorized to issue
guarantees in furtherance of the purposes of this section. Subject
to subsection (d), the total principal amount of guarantees which
may be issued by the President under this section shall be up to$10,000,000,000 which may be issued as follows:(1) in fiscal year 1993, up to $2,000,000,000 may be issued
on October 1, 1992 or thereafter;(2) subject to subsection (d), in fiscal years 1994 through1997, up to $2,000,000,000 in each fiscal year may be issued
on October 1 or thereafter.
(3) If less than the full amount of guarantees authorized
to be made available in a fiscal year pursuant to paragraphs(1) and (2) of this subsection is issued to Israel during that fiscal year, the authority to issue the balance of such guarantees
shall extend to any subsequent fiscal year ending on or before
September 30, 1998.
(4)(A) Not later than September 1 of each year during theperiod in which the President is authorized to issue loan guarantees under subsection (a), beginning in fiscal year 1993, thePresident shall notify the appropriate congressional committees in writing of his intentions regarding the exercise of that
authority for the fiscal year beginning on October 1 of thatyear, including a statement of the total principal amount ofguarantees, if any, that the President proposes to issue for that
fiscal year.
(B) For purposes of this paragraph, the term ‘‘appropriate
congressional committees’’ means the Committee on Appropriations and the Committee on Foreign Relations of the Senate
and the Committee on Appropriations and the Committee on
Foreign Affairs of the House of Representatives.
(c) USE OF GUARANTEES.—Guarantees may be issued under
this section only to support activities in the geographic areas whichwere subject to the administration of the Government of Israel before June 5, 1967.
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Sec. 226

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

86(d) LIMITATION ON GUARANTEE AMOUNT.—The amount of authorized but unissued guarantees that the President is authorized
to issue as specified in subsection (b) shall be reduced by anamount equal to the amount extended or estimated to have been
extended by the Government of Israel during the previous year for
activities which the President determines are inconsistent with theobjectives of this section or understandings reached between the
United States Government and the Government of Israel regarding
the implementation of the loan program. The President shall submit a report to Congress no later than September 30 of each fiscal
year during the pendency of the program specifying the amountcalculated under this subsection and that will be deducted from theamount of guarantees authorized to be issued in the next fiscal
year.
(e) FEES.—(1) Fees charged for the loan guarantee program under
this section each year shall be an aggregate annual origination
fee equal to the estimated subsidy cost of the guarantees
issued under this section for that year, calculated by the Officeof Management and Budget for the Federal Credit Reform Act
of 1990. This shall also include an amount for the administrative expenses of the Agency for International Development in
administering the program under this section. All such fees
shall be paid by the Government of Israel to the Governmentof the United States. Funds made available for Israel underchapter 4 of Part II of the Foreign Assistance Act of 1961, as
amended, may be utilized by the Government of Israel to pay
such fees to the United States Government. No further appropriations of subsidy cost are needed for the loan guarantee authorized hereunder for fiscal year 1993 and the four succeeding
fiscal years.
(2) The origination fee shall be payable to the UnitedStates Government on a pro rata basis as each guarantee foreach loan or increment is issued.
(f) AUTHORITY TO SUSPEND.—Except as provided in subsections(l) and (m) of this section, the President shall determine the terms
and conditions for issuing guarantees. If the President determinesthat these terms and conditions have been breached, the President
may suspend or terminate the provision of all or part of the additional loan guarantees not yet issued under this section. Uponmaking such a determination to suspend or terminate the provisionof loan guarantees, the President shall submit to the Speaker ofthe House of Representatives and the President Pro Tempore of the
Senate his determination to do so, including the basis for such suspension or termination.
(g) PROCEDURES FOR SUSPENSION OR TERMINATION.—Any suspension or termination pursuant to subsection (f) shall be in accordance with the following procedures:(1) Upon making a determination to suspend or terminate
the provision of loan guarantees, the President shall submit to
the Speaker of the House of Representatives and the President
Pro Tempore of the Senate his determination to do so, including the basis for such suspension or termination.
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Sec. 226(2) Such a suspension or termination shall cease to be effective if Congress enacts, within 30 days of submission, a joint
resolution authorizing the assistance notwithstanding the suspension.
(3) Any such joint resolution shall be considered in the
Senate in accordance with the provisions of section 601(b) of
the International Security Assistance and Arms Export Control
Act of 1976.
(4) For the purpose of expediting the consideration and enactment of joint resolutions under this subsection, a motion toproceed to the consideration of any such joint resolution after
it has been reported by the appropriate committee shall betreated as highly privileged in the House of Representatives.
(5) In the event that the President suspends the provisionof additional loan guarantees under subsection (f) and Congress does not enact a joint resolution pursuant to this subsection, the provision of additional loan guarantees under the
program established by this section may be resumed only if the
President determines and so reports to Congress that the reasons for the suspension have been resolved or that the resumption is otherwise in the national interest.
(h) ECONOMIC CONTEXT.—The effective absorption of immigrants into Israel from the republics of the former Soviet Union
and Ethiopia within the private sector requires large investment
and economic restructuring to promote market efficiency and thereby contribute to productive employment and sustainable growth.
Congress recognizes that the Government of Israel is developing an
economic strategy designed to achieve these goals, and that theGovernment of Israel intends to adopt a comprehensive, multi-year
economic strategy based on prudent macroeconomic policies andstructural reforms. Congress also recognizes that these policies arebeing designed to reduce direct involvement of the government in
the economic system and to promote private enterprise, important
prerequisites for economic stability and sustainable growth.
(i) CONSULTATIONS.—It is the sense of the Congress that, as
agreed between the two Governments and in order to further thepolicies specified in subsection (h), Israel and the United Statesshould continue to engage in consultations concerning economic
and financial measures, including structural and other reforms,
that Israel should undertake during the pendency of this program
to enable its economy to absorb and resettle immigrants and to accommodate the increased debt burden that will result from loans
guaranteed pursuant to this section. It is the sense of the Congressthat these consultations on economic measures should address
progress and plans in the areas of budget policies, privatization,
trade liberalization, financial and capital markets, labor markets,competition policy, and deregulation.
(j) GOODS AND SERVICES.—During the pendency of the loan
program authorized under this section, it is anticipated that, in thecontext of the economic reforms undertaken pursuant to subsections (h) and (i) of this section, Israel’s increased population due
to its absorption of immigrants, and the liberalization by the Government of Israel of its trade policy with the United States, theamount of United States investment goods and services purchased
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88

for use in or with respect to the country of Israel will substantially
increase.
(k) REPORTS.—The President shall report to Congress by December 31 of each fiscal year until December 31, 1999, regarding
the implementation of this section.
(l) APPLICABILITY OF FOREIGN ASSISTANCE ACT AUTHORITIES.—
Section 223 of the Foreign Assistance Act shall apply to guarantees
issued under subsection (a) in the same manner as such section applies to guarantees issued under section 222, except that subsections (a), (e)(1), (g), and (j) of section 223 shall not apply to suchguarantees and except that, to the extent section 223 is inconsistent with the Federal Credit Reform Act of 1990, that Act shallapply. Loans shall be guaranteed under this section without regard
to sections 221, 222, and 238(c). Notwithstanding section 223(f), theinterest rate for loans guaranteed under this section may include
a reasonable fee to cover the costs and fees incurred by the borrower in connection with this program or financing under this section in the event the borrower elects not to finance such costs orfees out of loan principal. Guarantees once issued hereunder shallbe unconditional and fully and freely transferable.
(m) TERMS AND CONDITIONS.—(1) Each loan guarantee issued under this section shallguarantee 100 percent of the principal and interest payable onsuch loans.
(2) The standard terms of any loan or increment guaranteed under this section shall be 30 years with semiannual payments of interest only over the first 10 years, and with semiannual payments of principal and interest on a level payment
basis, over the last 20 years thereof, except that the guaranteed loan or any increments issued in a single transaction may
include obligations having different maturities, interest rates,and payment terms if the aggregate scheduled debt service forall obligations issued in a single transaction equals the debt
service for a single loan or increment of like amount having
the standard terms described in this sentence. The guarantor
shall not have the right to accelerate any guaranteed loan orincrement or to pay any amounts in respect of the guarantees
issued other than in accordance with the original payment
terms of the loan. For purposes of determining the maximum
principal amount of any loan or increment to be guaranteed
under this section, the principal amount of each such loan orincrement shall be—(A) in the case of any loan issued on a discount basis,the original issue price (excluding any transaction costs)
thereof; or(B) in the case of any loan issue on an interest-bearing
basis, the stated principal amount thereof.
TITLE IV 16
SEC. 231. ø22 U.S.C. 2191¿ CREATION, PURPOSE AND POLICY.—
To mobilize and facilitate the participation of United States private
16 Section 1464(2) of the BUILD Act of 2018 (division F of Public Law 115-254) provides for
an amendment to repeal ‘‘title IV of chapter 2 of part I of the Foreign Assistance Act of 1961

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capital and skills in the economic and social development of lessdeveloped countries and areas, and countries in transition fromnonmarket to market economies, thereby complementing the development assistance objectives of the United States, there is hereby
created the Overseas Private Investment Corporation (hereinafter
called the ‘‘Corporation’’), which shall be an agency of the UnitedStates under the policy guidance of the Secretary of State.
The Corporation, in determining whether to provide insurance,
financing, or reinsurance for a project, shall especially—(1) be guided by the economic and social development impact and benefits of such a project and the ways in which sucha project complements, or is compatible with, other development assistance programs or projects of the United States orother donors;(2) give preferential consideration to investment projects inless developed countries that have per capita incomes of $984
or less in 1986 United States dollars, and restrict its activities
with respect to investment projects in less developed countries
that have per capita incomes of $4,269 or more in 1986 UnitedStates dollars (other than countries designated as beneficiary
countries under section 212 of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2702), Ireland, and Northern Ireland);and(3) ensures that the project is consistent with the provisions of section 117 (as so redesignated by the Special Foreign
Assistance Act of 1986), section 118, and section 119 of this Act
relating to the environment and natural resources of, and tropical forests and endangered species in, developing countries,
and consistent with the intent of regulations issued pursuant
to sections 118 and 119 of this Act.
In carrying out its purpose, the Corporation, utilizing broad
criteria, shall undertake—(a) to conduct financing, insurance, and reinsurance operations on a self-sustaining basis, taking into account in its financing operations the economic and financial soundness ofprojects;(b) to utilize private credit and investment institutions andthe Corporation’s guaranty authority as the principal means ofmobilizing capital investment funds;(c) to broaden private participation and revolve its funds
through selling its direct investments to private investors
whenever it can appropriately do so on satisfactory terms;(d) to conduct its insurance operations with due regard toprinciples of risk management including efforts to share its insurance risks and reinsurance risks;(e) to the maximum degree possible consistent with its
purposes—(22 U.S.C. 2191 et seq.) (other than subsections (g), (l), (m), and (n) of section 237 of that Act)’’.
Section 1470(w) of such Act states ‘‘The amendments made by this section shall take effect at
the end of the transition period.’’. Section 1461(2) of such Act defines the term ‘‘transition period’’ as follows: ‘‘The term ‘transition period’ means the period—(A) beginning on the date of
the enactment of this Act; and (B) ending on the effective date of the reorganization plan required by section 1462(e).’’. For details relating to the reorganization plan, see section 1462(e)of such Act.—Overseas Private Investment Corporation

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90(1) to give preferential consideration in its investment
insurance, reinsurance, and guaranty activities to investment projects sponsored by or involving United Statessmall business; and(2) to increase the proportion of projects sponsored byor significantly involving United States small business toat least 30 percent of all projects insured, reinsured, or
guaranteed by the Corporation;(f) to consider in the conduct of its operations the extent
to which less developed country governments are receptive to
private enterprise, domestic and foreign, and their willingness
and ability to maintain conditions which enable private enterprise to make its full contribution to the development process;(g) to foster private initiative and competition and discourage monopolistic practices;(h) to further to the greatest degree possible, in a mannerconsistent with its goals, the balance-of-payments and employment objectives of the United States;(i) to conduct its activities in consonance with the activitiesof the agency primarily responsible for administering part I
and the international trade, investment, and financial policiesof the United States Government, and to seek to support thosedevelopmental projects having positive trade benefits for theUnited States;(j) to advise and assist, within its field of competence, interested agencies of the United States and other organizations,both public and private, national and international, with respect to projects and programs relating to the development ofprivate enterprise in less developed countries and areas;(k)(1) to decline to issue any contract of insurance or reinsurance, or any guaranty, or to enter into any agreement toprovide financing for an eligible investor’s proposed investment
if the Corporation determines that such investment is likely tocause such investor (or the sponsor of an investment project inwhich such investor is involved) significantly to reduce thenumber of his employees in the United States because he is replacing his United States production with production fromsuch investment which involves substantially the same productfor substantially the same market as his United States production; and (2) to monitor conformance with the representationsof the investor on which the Corporation relied in making thedetermination required by clause (1);(l) to decline to issue any contract of insurance or reinsurance, or any guaranty, or to enter into any agreement to provide financing for an eligible investor’s proposed investment if
the Corporation determines that such investment is likely tocause a significant reduction in the number of employees in the
United States;(m) to refuse to insure, reinsure, or finance any investment
subject to performance requirements which would reduce substantially the positive trade benefits likely to accrue to theUnited States from the investment; and(n) to refuse to insure, reinsure, guarantee, or finance any
investment in connection with a project which the Corporation
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determines will pose an unreasonable or major environmental,
health, or safety hazard, or will result in the significant degradation of national parks or similar protected areas.
SEC. 231A. ø22 U.S.C. 2191a¿ ADDITIONAL REQUIREMENTS.—(a) WORKER RIGHTS.—(1) LIMITATION ON OPIC ACTIVITIES.—The Corporation
may insure, reinsure, guarantee, or finance a project only if thecountry in which the project is to be undertaken is taking steps
to adopt and implement laws that extend internationally recognized worker rights, as defined in section 507(4) of the Trade
Act of 1974, to workers in that country (including any designated zone in that country). The Corporation shall also include the following language, in substantially the following
form, in all contracts which the Corporation enters into witheligible investors to provide financial support under this title:‘‘The investor agrees not to take actions to prevent employees of the foreign enterprise from lawfully exercising theirright of association and their right to organize and bargain collectively. The investor further agrees to observe applicablelaws relating to a minimum age for employment of children,
acceptable conditions of work with respect to minimum wages,
hours of work, and occupational health and safety, and not touse forced labor. The investor is not responsible under thisparagraph for the actions of a foreign government.’’(2) USE OF ANNUAL REPORTS ON WORKERS RIGHTS.—The
Corporation shall, in making its determinations under paragraph (1), use the reports submitted to the Congress pursuant
to section 504 of the Trade Act of 1974. The restriction set
forth in paragraph (1) shall not apply until the first such report is submitted to the Congress.
(3) WAIVER.—Paragraph (1) shall not prohibit the Corporation from providing any insurance, reinsurance, guaranty, or financing with respect to a country if the President determinesthat such activities by the Corporation would be in the national economic interests of the United States. Any such determination shall be reported in writing to the Congress, together
with the reasons for the determination.
(4) In making a determination under this section for the
People’s Republic of China, the Corporation shall discuss fully
and completely the justification for making such determination
with respect to each item set forth in subparagraphs (A)through (E) of section 507(4) of the Trade Act of 1974.
(b) ENVIRONMENTAL IMPACT.—The Board of Directors of the
Corporation shall not vote in favor of any action proposed to betaken by the Corporation that is likely to have significant adverse
environmental impacts that are sensitive, diverse, or unprecedented, unless for at least 60 days before the date of the vote—(1) an environmental impact assessment or initial environmental audit, analyzing the environmental impacts of the proposed action and of alternatives to the proposed action has
been completed by the project applicant and made available to
the Board of Directors; andJune 10, 2019

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92(2) such assessment or audit has been made available tothe public of the United States, locally affected groups in thehost country, and host country nongovernmental organizations.
(c) PUBLIC HEARINGS.—(1) The Board shall hold at least one
public hearing each year in order to afford an opportunity for any
person to present views as to whether the Corporation is carryingout its activities in accordance with section 231 and this section orwhether any investment in a particular country should have beenor should be extended insurance, reinsurance, guarantees, or financing under this title.
(2) In conjunction with each meeting of its Board of Directors,
the Corporation shall hold a public hearing in order to afford an
opportunity for any person to present views regarding the activitiesof the Corporation. Such views shall be made part of the record.
SEC. 232. ø22 U.S.C. 2192¿ CAPITAL OF THE CORPORATION.—
The President is authorized to pay in as capital of the Corporation,out of dollar receipts made available through the appropriation
process from loans made pursuant to this part and from loans
made under the Mutual Security Act of 1954, as amended, for the
fiscal year 1970 not to exceed $20,000,000 and for the fiscal year
1971 not to exceed $20,000,000. Upon the payment of such capitalby the President, the Corporation shall issue an equivalent amountof capital stock to the Secretary of the Treasury.
SEC. 233. ø22 U.S.C. 2193¿ ORGANIZATION AND MANAGEMENT.—(a) STRUCTURE OF THE CORPORATION.—The Corporation
shall have a Board of Directors, a President, an Executive Vice
President, and such other officers and staff as the Board of Directors may determine.
(b) BOARD OF DIRECTORS.—All powers of the Corporation shallvest in and be exercised by or under the authority of its Board of
Directors (‘‘the Board’’) which shall consist of fifteen Directors, including the Chairman, with eight Directors constituting a quorum
for the transaction of business. Eight Directors shall be appointed
by the President of the United States, by and with the advice andconsent of the Senate, and shall not be officials or employees of theGovernment of the United States. At least two of the eight Directors appointed under the preceding sentence shall be experienced
in small business, one in organized labor, and one in cooperatives.
Each such Director shall be appointed for a term of no more than
three years. The terms of no more than three such Directors shall
expire in any one year. Such Directors shall serve until their successors are appointed and qualified and may be reappointed.
The other Directors shall be principal officers of the Government of the United States whose duties relate to the programs of
the Corporation, including the President of the Corporation, theAdministrator of the Agency for International Development, theUnited States Trade Representative, and one such officer of the Department of Labor, designated by and serving at the pleasure of
the President of the United States. The United States Trade Representative may designate a Deputy United States Trade Representative to serve on the Board in place of the United States
Trade Representative.
There shall be a Chairman and a Vice Chairman of the Board,both of whom shall be designated by the President of the United
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States from among the Directors of the Board other than those appointed under the second sentence of the first paragraph of thissubsection.
All Directors who are not officers of the Corporation or officialsof the Government of the United States shall be compensated at a
rate equivalent to that of level IV of the Executive Schedule (5U.S.C. 5315) when actually engaged in the business of the Corporation and may be paid per diem in lieu of subsistence at the applicable rate prescribed in the standardized Government travel regulations, as amended, from time to time, while away from their homes
or usual places of business.
(c) PRESIDENT OF THE CORPORATION.—The President of the
Corporation shall be appointed by the President of the UnitedStates, by and with the advice and consent of the Senate, and shallserve at the pleasure of the President. In making such appointment, the President shall take into account private business experience of the appointee. The President of the Corporation shall be its
Chief Executive Officer and responsible for the operations andmanagement of the Corporation, subject to bylaws and policies established by the Board.
(d) OFFICERS AND STAFF.—The Executive Vice President of the
Corporation shall be appointed by the President of the UnitedStates, by and with the advice and consent of the Senate, and shallserve at the pleasure of the President. Other officers, attorneys,
employees, and agents shall be selected and appointed by the Corporation, and shall be vested with such powers and duties as the
Corporation may determine. Of such persons employed by the Corporation, not to exceed twenty may be appointed, compensated, or
removed without regard to the civil service laws and regulations:
Provided, That under such regulations as the President of theUnited States may prescribe, officers and employees of the UnitedStates Government who are appointed to any of the above positions
may be entitled, upon removal from such position, except for cause,to reinstatement to the position occupied at the time of appointment or to a position of comparable grade and salary. Such positions shall be in addition to those otherwise authorized by law, including those authorized by section 5108 of title 5 of the UnitedStates Code.
SEC. 234. ø22 U.S.C. 2194¿ INVESTMENT INSURANCE AND
OTHER PROGRAMS.—The Corporation is hereby authorized to do thefollowing:(a) INVESTMENT INSURANCE.—(1) To issue insurance, upon suchterms and conditions as the Corporation may determine, to eligible
investors assuring protection in whole or in part against any or allof the following risks with respect to projects which the Corporation has approved—(A) inability to convert into United States dollars othercurrencies, or credits in such currencies, received as earnings
or profits from the approved project, as repayment or return of
the investment therein, in whole or in part, or as compensation
for the sale or disposition of all or any part thereof;(B) loss of investment, in whole or in part, in the approved
project due to expropriation or confiscation by action of a foreign government or any political subdivision thereof;
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94(C) loss due to war, revolution, insurrection or civil strife;and(D) loss due to business interruption caused by any of therisks set forth in subparagraphs (A), (B), and (C).
(2) Recognizing that major private investments in less developed friendly countries or areas are often made by enterprises inwhich there is multinational participation, including significant
United States private participation, the Corporation may make arrangements with foreign governments (including agencies, instrumentalities, or political subdivisions thereof) or with multilateralorganizations and institutions for sharing liabilities assumed underinvestment insurance for such investments and may in connection
therewith issue insurance to investors not otherwise eligible hereunder, except that liabilities assumed by the Corporation under theauthority of this subsection shall be consistent with the purposesof this title and that the maximum share of liabilities so assumed
shall not exceed the proportionate participation by eligible investors in the project.
(3) Not more than 10 per centum of the maximum contingent
liability of investment insurance which the Corporation is permitted to have outstanding under section 235(a)(1) shall be issued
to a single investor.
(4) Before issuing insurance for the first time for loss due tobusiness interruption, and in each subsequent instance in which asignificant expansion is proposed in the type of risk to be insured
under the definition of ‘‘civil strife’’ or ‘‘business interruption’’, theCorporation shall, at least sixty days before such insurance isissued, submit to the Committee on Foreign Relations of the Senate
and the Committee on Foreign Affairs of the House of Representatives a report with respect to such insurance, including a thoroughanalysis of the risks to be covered, anticipated losses, and proposed
rates and reserves and, in the case of insurance for loss due tobusiness interruption, an explanation of the underwriting basis
upon which the insurance is to be offered. Any such report with respect to insurance for loss due to business interruption shall beconsidered in accordance with the procedures applicable to reprogramming notifications pursuant to section 634A of this Act.
(b) INVESTMENT GUARANTIES.—To issue to eligible investors
guaranties of loans and other investments made by such investors
assuring against loss due to such risks and upon such terms andconditions as the Corporation may determine: Provided, however,That such guaranties on other than loan investments shall not exceed 75 per centum of such investment: Provided further, That except for loan investments for credit unions made by eligible credit
unions or credit union associations, the aggregate amount of investment (exclusive of interest and earnings) so guaranteed with respect to any project shall not exceed, at the time of issuance of any
such guaranty, 75 per centum of the total investment committed toany such project as determined by the Corporation, which determination shall be conclusive for purposes of the Corporation’s authority to issue any such guaranty: Provided further, That not morethan 15 per centum of the maximum contingent liability of investment guaranties which the Corporation is permitted to have outJune 10, 2019

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standing under section 235(a)(2) shall be issued to a single investor.
(c) DIRECT INVESTMENT.—To make loans in United States dollars repayable in dollars or loans in foreign currencies (including,
without regard to section 1415 of the Supplemental Appropriation
Act, 1953, such foreign currencies which the Secretary of the Treasury may determine to be excess to the normal requirements of theUnited States and the Director of the Bureau of the Budget may
allocate) to firms privately owned or of mixed private and public
ownership upon such terms and conditions as the Corporation may
determine. Loans may be made under this subsection only for
projects that are sponsored by or significantly involve UnitedStates small business or cooperatives.
The Corporation may designate up to 25 percent of any loan
under this subsection for use in the development or adaptation in
the United States of new technologies or new products or services
that are to be used in the project for which the loan is made andare likely to contribute to the economic or social development ofless developed countries.
No loan may be made under this subsection to finance any operation for the extraction of oil or gas. The aggregate amount ofloans under this subsection to finance operations for the mining orother extraction of any deposit of ore or other nonfuel minerals
may not in any fiscal year exceed $4,000,000.
(d) INVESTMENT ENCOURAGEMENT.—To initiate and support
through financial participation, incentive grant, or otherwise, andon such terms and conditions as the Corporation may determine,
the identification, assessment, surveying and promotion of private
investment opportunities, utilizing wherever feasible and effective
the facilities of private investors, except that—(1) the Corporation shall not finance any survey to ascertain the existence, location, extent, or quality of, or to determine the feasibility of undertaking operations for the extraction of, oil or gas; and(2) expenditures financed by the Corporation during any
fiscal year on surveys to ascertain the existence, location, extent, or quality of, or to determine the feasibility of undertaking operations for the extraction of nonfuel minerals may
not exceed $200,000.
(e) SPECIAL ACTIVITIES.—To administer and manage special
projects and programs, including programs of financial and advisory support which provide private technical, professional, or managerial assistance in the development of human resources, skills,
technology, capital savings and intermediate financial and investment institutions and cooperatives and including the initiation of
incentives, grants, and studies for renewable energy and othersmall business activities. The funds for these projects and programs may, with the Corporation’s concurrence, be transferred toit for such purposes under the authority of section 632(a) or fromother sources, public or private. Administrative funds may not bemade available for incentives, grants, and studies for renewable energy and other small business activities.
(f) OTHER INSURANCE FUNCTIONS.—(1) To make and carry out
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96

share risks, with insurance companies, financial institutions, anyother persons, or groups thereof, and employing the same whereappropriate, as its agent, or acting as their agent, in the issuanceand servicing of insurance, the adjustment of claims, the exerciseof subrogation rights, the ceding and accepting of reinsurance, andin any other matter incident to an insurance business; except thatsuch agreements and contracts shall be consistent with the purposes of the Corporation set forth in section 231 of this Act andshall be on equitable terms.
(2) To enter into pooling or other risk-sharing agreements withmultinational insurance or financing agencies or groups of suchagencies.
(3) To hold an ownership interest in any association or otherentity established for the purposes of sharing risks under investment insurance.
(4) To issue, upon such terms and conditions as it may determine, reinsurance of liabilities assumed by other insurers or groups
thereof in respect of risks referred to in subsection (a)(1).
The amount of reinsurance of liabilities under this title which
the Corporation may issue shall not in the aggregate exceed at any
one time an amount equal to the amount authorized for the maximum contingent liability outstanding at any one time under section 235(a)(1). All reinsurance issued by the Corporation under thissubsection shall require that the reinsured party retain for his own
account specified portions of liability, whether first loss or otherwise.
(g) 17 PILOT EQUITY FINANCE PROGRAM.—(1) AUTHORITY FOR PILOT PROGRAM.—In order to study thefeasibility and desirability of a program of equity financing, theCorporation is authorized to establish a 4-year pilot program
under which it may, on the limited basis prescribed in paragraphs (2) through (5), purchase, invest in, or otherwise acquire equity or quasi-equity securities of any firm or entity,
upon such terms and conditions as the Corporation may determine, for the purpose of providing capital for any project whichis consistent with the provisions of this title except that—(A) the aggregate amount of the Corporation’s equity
investment with respect to any project shall not exceed 30
percent of the aggregate amount of all equity investment
made with respect to such project at the time that the Corporation’s equity investment is made, except for securities
acquired through the enforcement of any lien, pledge, or
contractual arrangement as a result of a default by any
17 Section 6001(1) of Public Law 106–31 (113 Stat. 113) struck paragraph (c) of subsection (g),which prior to its repeal provided as follows:(c) CREATION OF FUND FOR ACQUISITION OF EQUITY.—The Corporation is authorized to establish a revolving fund to be available solely for the purposes specified in this subsection and to
make transfers to the fund of a total of $10,000,000 (less amounts transferred to the fund before
the date of the enactment of the Jobs Through Exports Act of 1992) from its noncredit accountrevolving fund. The Corporation shall transfer to the fund in each fiscal year all amounts received by the Corporation during the preceding fiscal year as income on securities acquired
under this subsection, and from the proceeds on the disposition of such securities. Purchasesof, investments in, and other acquisitions of equity from the fund are authorized for any fiscal
year only to the extent or in such amounts as are provided in advance in appropriations Acts
or are transferred to the Corporation pursuant to section 632(a) of this Act.

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party under any agreement relating to the terms of the
Corporation’s investment; and(B) the Corporation’s equity investment under thissubsection with respect to any project, when added to any
other investments made or guaranteed by the Corporation
under subsection (b) or (c) with respect to such project,shall not cause the aggregate amount of all such investment to exceed, at the time any such investment is madeor guaranteed by the Corporation, 75 percent of the total
investment committed to such project as determined by the
Corporation.
The determination of the Corporation under subparagraph (B) shallbe conclusive for purposes of the Corporation’s authority to makeor guarantee any such investment.
(2) 18 LIMITATION TO PROJECTS IN SUB-SAHARAN AFRICA ANDCARIBBEAN BASIN.—Equity investments may be made under
this subsection only in projects in countries eligible for financing under this title that are countries in sub-Saharan Africa or
countries designated as beneficiary countries under section 212
of the Caribbean Basin Economy Recovery Act. 19(3) ADDITIONAL CRITERIA.—In making investment decisions
under this subsection, the Corporation shall give preferentialconsideration to projects sponsored by or significantly involving
United States small business or cooperatives. The Corporation
shall also consider the extent to which the Corporation’s equity
investment will assist in obtaining the financing required forthe project.
(4) DISPOSITION OF EQUITY INTEREST.—Taking into consideration, among other things, the Corporations’ financial interests and the desirability of fostering the development of local
capital markets in less developed countries, the Corporation
shall endeavor to dispose of any equity interest it may acquire
under this subsection within a period of 10 years from the dateof acquisition of such interest.
(6) CONSULTATIONS WITH CONGRESS.—The Corporation
shall consult annually with the Committee on Foreign Affairsof the House of Representatives and the Committee on Foreign
Relations of the Senate on the implementation of the pilot equity finance program established under this subsection.
18 Section 6001 of Public Law 106–31 provides as follows:

SEC. 6001. Effective October 1, 1999, section 234 of the Foreign Assistance Act of 1961 (22
U.S.C. 2194) is amended by—(1) striking the paragraph within subsection 234(g) that is currently designated as 234(c);(2) in paragraph (g)(2), changing the title to read ‘‘Equity Authority Limited to Projects
in Sub-Saharan Africa and Caribbean Basin and Marine Transportation Projects Globally’’and inserting after the words ‘‘Caribbean Basin Economic Recovery Act’’ the following: ‘‘andin marine transportation projects in countries and areas eligible for OPIC support worldwide using United States commercial maritime expertise’’; and(3) inserting a new paragraph (g)(5) to read:‘‘IMPLEMENTATION.—To the extent provided in advance in appropriations Acts, the Corporation
is authorized to create such legal vehicles as may be necessary for implementation of its authorities, which legal vehicles may be deemed non-Federal borrowers for purposes of the Federal
Credit Reform Act of 1990. Income and proceeds of investments made pursuant to this section
234(g) may be used to purchase equity or quasi-equity securities in accordance with the provisions of this section: Provided, however, That such purchases shall not be limited to the 4-year
period of the pilot program: Provided further, That the limitations contained in section 234(g)(2)shall not apply to such purchases.’’.
19 Should read ‘‘Caribbean Basin Economic Recovery Act’’.

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Sec. 234A

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

98(h) LOCAL CURRENCY GUARANTIES FOR ELIGIBLE INVESTORS.—
To issue to—(1) eligible investors, or(2) local financial institutions, guaranties,
denominated in currencies other than United States dollars, ofloans and other investments made to projects sponsored by or significantly involving eligible investors, assuring against loss due tosuch risks and upon such terms and conditions as the Corporation
may determine, for projects that the Corporation determines tohave significant developmental effects or as the Corporation determines to be necessary or appropriate to carry out the purposes ofthis title.
SEC. 234A. ø22 U.S.C. 2194b¿ ENHANCING PRIVATE POLITICALRISK INSURANCE INDUSTRY.
(a) COOPERATIVE PROGRAMS.—In order to encourage greater
availability of political risk insurance for eligible investors by enhancing the private political risk insurance industry in the UnitedStates, and to the extent consistent with this title, the Corporation
shall under take programs of cooperation with such industry, andin connection with such programs may engage in the following activities:(1) Utilizing its statutory authorities, encourage the development of associations, pools, or consortia of United States private political risk insurers.
(2) Share insurance risks (through coinsurance, contingent
insurance, or other means) in a manner that is conducive tothe growth and development of the private political risk insurance industry in the United States.
(3) Notwithstanding section 237(e), upon the expiration of
insurance provided by the Corporation for an investment, enter
into risk-sharing agreements with United States private political risk insurers to insure any such investment; except that,in cooperating in the offering of insurance under this paragraph, the Corporation shall not assume responsibility formore than 50 percent of the insurance being offered in eachseparate transaction.
(b) ADVISORY GROUP.—(1) ESTABLISHMENT AND MEMBERSHIP.—The Corporation
shall establish a group to advise the Corporation on the development and implementation of the cooperative programs under
this section. The group shall be appointed by the Board andshall be composed of up to 12 members, including the following:(A) Up to seven persons from the private political risk
insurance industry, of whom no fewer than two shall represent private political risk insurers, one shall represent
private political risk reinsurers, and one shall represent
insurance or reinsurance brokerage firms.
(B) Up to four persons, other than persons describedin subparagraph (A), who are purchasers of political risk
insurance.
(2) FUNCTIONS.—The Corporation shall call upon membersof the advisory group, either collectively or individually, to advise it regarding the capability of the private political risk inJune 10, 2019

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99

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Sec. 235

surance industry to meet the political risk insurance needs ofUnited States investors, and regarding the development of cooperative programs to enhance such capability.
(3) MEETINGS.—The advisory group shall meet not later
than September 30, 1989, and at least annually thereafter. The
Corporation may from time to time convene meetings of selected members of the advisory group to address particularquestions requiring their specialized knowledge.
(4) FEDERAL ADVISORY COMMITTEE ACT.—The advisorygroup shall not be subject to the Federal Advisory Committee
Act (5 U.S.C. App.).
SEC. 235. ø22 U.S.C. 2195¿ ISSUING AUTHORITY, DIRECT INVESTMENT AUTHORITY AND RESERVES.—(a) ISSUING AUTHORITY.—(1) INSURANCE AND FINANCING.—(A) The maximum contingent liability outstanding at any one time pursuant to insurance issued under section 234(a), and the amount of financing
issued under sections 20 234(b) and (c), shall not exceed in theaggregate $29,000,000,000.
(B) Subject to spending authority provided in appropriations Acts pursuant to section 504(b) of the Federal Credit Reform Act of 1990, the Corporation is authorized to transfer
such sums as are necessary from its noncredit activities to pay
for the subsidy and administrative costs of the investment
guaranties and direct loan programs under subsections (b) and(c) of section 234.
(2) TERMINATION OF AUTHORITY.—The authority of subsections (a), (b), and (c) of section 234 shall continue until September 30, 2007.
(b) * * * øRepealed—1992¿(c) There shall be established in the Treasury of the UnitedStates a noncredit account revolving fund, which shall be available
for discharge of liabilities, as provided in subsection (d) of this section until such time as all such liabilities have been discharged orhave expired or until all of the fund has been expended in accordance with the provisions of this section. Such fund shall be fundedby: (1) the funds heretofore available to discharge liabilities underpredecessor guaranty authority (including housing guaranty authorities), less both the amount made available for housing guaranty programs pursuant to section 223(b) and the amount madeavailable to the Corporation pursuant to subsection (e) of this section and (2) such sums as shall be appropriated pursuant to subsection (f) of this section for such purposes. Additional amounts
may thereafter be transferred to such fund pursuant to section 236.
(d) Any payment made to discharge liabilities under investment insurance or reinsurance issued under section 234 undersimilar predecessor guaranty authority or under section 234A, shallbe paid first out of the noncredit account revolving fund, as longas such fund remains available, and thereafter out of funds madeavailable pursuant to subsection (f) of this section. Any payments
made to discharge liabilities under guaranties issued under section
20 So in original. Probably should be ‘‘section’’.

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Sec. 236

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

100

234(b) or 234(c) shall be paid in accordance with the Federal Credit
Reform Act of 1990.
(e) There is hereby authorized to be transferred to the Corporation at its call, for the purposes specified in section 236, all feesand other revenues collected under predecessor guaranty authority
from December 31, 1968, available as of the date of such transfer.
(f) There are authorized to be appropriated to the Corporation,
to remain available until expended, such amounts as may be necessary from time to time to replenish or increase the noncredit account revolving fund, to discharge the liabilities under insurance,
reinsurance, or guaranties issued by the Corporation or issued
under predecessor guaranty authority, or to discharge obligationsof the Corporation purchased by the Secretary of the Treasury pursuant to this subsection. However, no appropriations shall be madeto augment the noncredit account revolving fund until the amountof funds in the noncredit account revolving fund is less than
$25,000,000. Any appropriations to augment the noncredit accountrevolving fund shall then only be made either pursuant to specificauthorization enacted after the date of enactment of the Overseas
Private Investment Corporation Amendments Act of 1974, or tosatisfy the full faith and credit provision of section 237(c). In order
to discharge liabilities under investment insurance or reinsurance,
the Corporation is authorized to issue from time to time for purchase by the Secretary of the Treasury its notes, debentures, bonds,
or other obligations; but the aggregate amount of such obligations
outstanding at any one time shall not exceed $100,000,000. Anysuch obligation shall be repaid to the Treasury within one year
after the date of issue of such obligation. Any such obligation shallbear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on
outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of any
obligation authorized by this subsection. The Secretary of theTreasury shall purchase any obligation of the Corporation issued
under this subsection, and for such purchase he may use as a public debt transaction the proceeds of the sale of any securities issued
under the Second Liberty Bond Act after the date of enactment of
the Overseas Private Investment Corporation Amendments Act of1974. The purpose for which securities may be issued under such
Bond Act shall include any such purchase.
(1) $8,128,000 for fiscal year 1993; and(2) $11,000,000 for fiscal year 1994.
SEC. 236. ø22 U.S.C. 2196¿ INCOME AND REVENUES.—In orderto carry out the purposes of the Corporation, all revenues and income transferred to or earned by the Corporation, from whateversource derived, shall be held by the Corporation and shall be available to carry out its purposes, including without limitation—(a) payment of all expenses of the Corporation, including
investment promotion expenses;(b) transfers and additions to the insurance or guaranty
reserves, the Direct Investment Fund established pursuant tosection 235, and such other funds or reserves as the Corporation may establish, at such time and in such amounts as theBoard may determine; andJune 10, 2019

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101

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

Sec. 237(c) payment of dividends, on capital stock, which shall consist of and be paid from net earnings of the Corporation after
payments, transfers, and additions under subsections (a) and(b) hereof.
SEC. 237. ø22 U.S.C. 2197¿ GENERAL PROVISIONS RELATING TO
INSURANCE GUARANTY, AND FINANCING PROGRAM.—(a) Insurance
guaranties, and reinsurance issued under this title shall cover investment made in connection with projects in any less developed
friendly country or area with the government to which the President of the United States has agreed to institute a program for insurance, guaranties, or reinsurance.
(b) The Corporation shall determine that suitable arrangements exist for protecting the interest of the Corporation in connection with any insurance, guaranty or reinsurance issued under thistitle, including arrangements concerning ownership, use, and disposition of the currency, credits, assets, or investments on accountof which payment under such insurance, guaranty, or reinsurance
is to be made, and right, title, claim, or cause of action existing inconnection therewith.
(c) All guaranties issued prior to July 1, 1956, all guaranties
issued under sections 202(b) and 413(b) of the Mutual Security Act
of 1954, as amended, all guaranties heretofore issued pursuant toprior guaranty authorities repealed by the Foreign Assistance Actof 1969, and all insurance, reinsurance, and guaranties issued pursuant to this title shall constitute obligations, in accordance withthe terms of such insurance, reinsurance, or guaranties, of theUnited States of America and the full faith and credit of the UnitedStates of America is hereby pledged for the full payment and performance of such obligations.
(d) FEES.—(1) IN GENERAL.—Fees may be charged for providing insurance, reinsurance, financing, and other services under this title
in amounts to be determined by the Corporation. In the event
fees charged for insurance, reinsurance, financing, or otherservices are reduced, fees to be paid under existing contracts
for the same type of insurance, reinsurance, financing, or services and for similar guarantees issued under predecessor guarantee authority may be reduced.
(2) CREDIT TRANSACTION COSTS.—Project-specific transaction costs incurred by the Corporation relating to loan obligations or loan guarantee commitments covered by the provisionsof the Federal Credit Reform Act of 1990, including the costsof project-related travel and expenses for legal representation
provided by persons outside the Corporation and other similar
expenses which are charged to the borrower, shall be paid outof the appropriate finance account established pursuant to section 505(b) of such Act.
(3) NONCREDIT TRANSACTION COSTS.—Fees paid for the
project-specific transaction costs and other direct costs associated with services provided to specific investors or potential investors pursuant to section 234 (other than those covered inparagraph (2)), including financing, insurance, reinsurance,
missions, seminars, conferences, and other preinvestment services, shall be available for obligation for the purposes for which
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Sec. 237

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102

they were collected, notwithstanding any other provision oflaw.
(e) No insurance, guaranty, or reinsurance of any equity investment shall extend beyond twenty years from the date ofissuance.
(f) Compensation for insurance, reinsurance, or guaranties
issued under this title shall not exceed the dollar value, as of thedate of the investment, of the investment made in the project withthe approval of the Corporation plus interest, earnings, or profits
actually accrued on such investment to the extent provided by suchinsurance, reinsurance, or guaranty, except that the Corporation
may provide that (1) appropriate adjustments in the insured dollar
value be made to reflect the replacement cost of project assets, and(2) compensation for a claim of loss under insurance of an equity
investment may be computed on the basis of the net book value attributable to such equity investment on the date of loss. Notwithstanding the preceding sentence, the Corporation shall limit theamount of direct insurance and reinsurance issued by it under section 234 or 234A so that risk of loss as to at least 10 per centumof the total investment of the insured and its affiliates in the
project is borne by the insured and such affiliates, except that limitation shall not apply to direct insurance or reinsurance of loans
by banks or other financial institutions to unrelated parties and (3)compensation for loss due to business interruption may be computed on a basis to be determined by the Corporation which reflects amounts lost.
(g) 21 No payment may be made under any guaranty, insurance
or reinsurance issued pursuant to this title for any loss arising out
of fraud or misrepresentation for which the party seeking payment
is responsible.
(h) Insurance, guaranties, or reinsurance of a loan or equity investment of an eligible investor in a foreign bank, finance company,or other credit institution shall extend only to such loan or equity
investment and not to any individual loan or equity investment
made by such foreign bank, finance company, or other credit institution.
(i) Claims arising as a result of insurance, reinsurance or guaranty operations under this title or under predecessor guaranty authority may be settled, and disputes arising as a result thereof may
be arbitrated with the consent of the parties, on such terms andconditions as the Corporation may determine. Payment made pursuant to any such settlement, or as a result of an arbitration
award, shall be final and conclusive notwithstanding any other provision of law.
(j) Each guaranty contract executed by such officer or officers
as may be designated by the Board shall be conclusively presumed
to be issued in compliance with the requirements of this Act.
(k) In making a determination to issue insurance, guaranties,
or reinsurance under this title, the Corporation shall consider the
possible adverse effect of the dollar investment under such insurance, guaranty, or reinsurance upon the balance of payments of theUnited States.
21

See footnote at the beginning of title IV of chapter 2 of part I.

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103

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

Sec. 237(l) 21(1) No payment may be made under any insurance or reinsurance which is issued under this title on or after the date of enactment of this subsection for any loss occurring with respect to a
project, if the preponderant cause of such loss was an act by theinvestor seeking payment under this title, by a person possessing
majority ownership and control of the investor at the time of theact, or by any agent of such investor or controlling person, and acourt of the United States has entered a final judgment that suchact constituted a violation under the Foreign Corrupt Practices Act
of 1977.
(2) Not later than 120 days after the date of enactment of thissubsection, the Corporation shall adopt regulations setting forthappropriate conditions under which any person convicted under theForeign Corrupt Practices Act of 1977 for an offense related to a
project insured or otherwise supported by the Corporation shall besuspended, for a period of not more than five years, from eligibility
to receive any insurance, reinsurance, guaranty, loan, or other financial support authorized by this title.
(m) 21(1) Before finally providing insurance, reinsurance, guarantees, or financing under this title for any environmentally sensitive investment in connection with a project in a country, the Corporation shall notify appropriate government officials of that country of—(A) all guidelines and other standards adopted by theInternational Bank for Reconstruction and Development andany other international organization relating to the publichealth or safety or the environment which are applicable to theproject; and(B) to the maximum extent practicable, any restriction
under any law of the United States relating to public healthor safety or the environment that would apply to the project
if the project were undertaken in the United States.
The notification under the preceding sentence shall include a summary of the guidelines, standards, and restrictions referred to in
subparagraphs (A) and (B), and may include any environmental
impact statement, assessment, review, or study prepared with respect to the investment pursuant to section 239(g).
(2) Before finally providing insurance, reinsurance, guarantees,or financing for any investment subject to paragraph (1), the Corporation shall take into account any comments it receives on the
project involved.
(3) On or before September 30, 1986, the Corporation shall notify appropriate government officials of a country of the guidelines,
standards, and legal restrictions described in paragraph (1) that
apply to any project in that country—(A) which the Corporation identifies as potentially posing
major hazards to public health and safety or the environment;and(B) for which the Corporation provided insurance, reinsurance, guarantees, or financing under this title before the dateof enactment of this subsection and which is in the Corporation’s portfolio on that date.
(n) 21 PENALTIES FOR FRAUD.—Whoever knowingly makes any
false statement or report, or willfully overvalues any land, propJune 10, 2019

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Sec. 238

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

104

erty, or security, for the purpose of influencing in any way the action of the Corporation with respect to any insurance, reinsurance,
guarantee, loan, equity investment, or other activity of the Corporation under section 234 or any change or extension of any suchinsurance, reinsurance, guarantee, loan, equity investment, or activity, by renewal, deferment of action or otherwise, or the acceptance, release, or substitution of security therefor, shall be fined not
more than $1,000,000 or imprisoned not more than 30 years, orboth.
(o) USE OF LOCAL CURRENCIES.—Direct loans or investments
made in order to preserve the value of funds received in inconvertible foreign currency by the Corporation as a result of activities
conducted pursuant to section 234(a) shall not be considered in determining whether the Corporation has made or has outstandingloans or investments to the extent of any limitation on obligations
and equity investment imposed by or pursuant to this title. The
provisions of section 504(b) of the Federal Credit Reform Act of1990 shall not apply to direct loan obligations made with funds described in this subsection.
SEC. 238. ø22 U.S.C. 2198¿ DEFINITIONS.—As used in thistitle—(a) the term ‘‘investment’’ includes any contribution orcommitment of funds, commodities, services, patents, processes, or techniques, in the form of (1) a loan or loans to an
approved project, (2) the purchase of a share of ownership in
any such project, (3) participation in royalties, earnings, or
profits of any such project, and (4) the furnishing of commodities or services pursuant to a lease or other contract;(b) the term ‘‘expropriation’’ includes, but is not limited to,any abrogation, repudiation, or impairment by a foreign government, a political subdivision of a foreign government, or a
corporation owned or controlled by a foreign government, of its
own contract with an investor with respect to a project, wheresuch abrogation, repudiation, or impairment is not caused by
the investor’s own fault or misconduct, and materially adversely affects the continued operation of the project;(c) the term ‘‘eligible investor’’ means: (1) United States
citizens; (2) corporations, partnerships, or other associations including nonprofit associations, created under the laws of theUnited States any State or territory thereof, or the District ofColumbia, and substantially beneficially owned by UnitedStates citizens; and (3) foreign corporations, partnerships, orother associations wholly owned by one or more such UnitedStates citizens, corporations, partnerships, or other associations: Provided however, That the eligibility of such foreign corporation shall be determined without regard to any shares, inaggregate less than 5 per centum of the total issued and subscribed share capital, held by other than the United States
owners: Provided further, That in the case of any loan investment a final determination of eligibility may be made at thetime the insurance or guaranty is issued; in all other cases, theinvestor must be eligible at the time a claim arises as well as
the time the insurance or guaranty is issued;
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105

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

Sec. 239(d) the term ‘‘noncredit account revolving fund’’ means theaccount in which funds under section 236 and all funds from
noncredit activities are held;(e) the term ‘‘noncredit activities’’ means all activities of
the Corporation other than its loan guarantee program under
section 234(b) and its direct loan program under section 234(c);(f) the term ‘‘predecessor guaranty authority’’ means priorguaranty authorities (other than housing guaranty authorities)
repealed by the Foreign Assistance Act of 1969, section 202(b)and 413(b) of the Mutual Security Act of 1954, as amended,and section 111(b)(3) of the Economic Cooperation Act of 1948,
as amended (exclusive of authority relating to informational
media guaranties); and(g) the term ‘‘local financial institution’’—(1) means any bank or financial institution that is organized under the laws of any country or area in which
the Corporation operates; but(2) does not include a branch, however organized, of abank or other financial institution that is organized under
the laws of a country in which the Corporation does notoperate.
SEC. 239. ø22 U.S.C. 2199¿ GENERAL PROVISIONS AND POWERS.—(a) The Corporation shall have its principal office in the District of Columbia and shall be deemed, for purposes of venue incivil actions, to be resident thereof.
(b) The President shall transfer to the Corporation, at suchtime as he may determine, all obligations, assets and related rights
and responsibilities arising out of, or related to, predecessor programs and authorities similar to those provided for in section 234(a), (b), and (d). Until such transfer, the agency heretofore responsible for such predecessor programs shall continue to administersuch assets and obligations, and such programs and activities authorized under this title as may be determined by the President.
(c)(1) The Corporation shall be subject to the applicable provisions of chapter 91 of title 31, United States Code, except as otherwise provided in this title.
(2) An independent certified public accountant shall perform afinancial and compliance audit of the financial statements of the
Corporation at least once every three years, in accordance withgenerally accepted Government auditing standards for a financial
and compliance audit, as issued by the Comptroller General. The
independent certified public accountant shall report the results ofsuch audit to the Board. The financial statements of the Corporation shall be presented in accordance with generally accepted accounting principles. These financial statements and the report of
the accountant shall be included in a report which contains, to theextent applicable, the information identified in section 9106 of title
31, United States Code, and which the Corporation shall submit to
the Congress not later than six and one-half months after the endof the last fiscal year covered by the audit. The General Accounting
Office may review the audit conducted by the accountant and thereport to the Congress in the manner and at such times as theGeneral Accounting Office considers necessary.
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Sec. 239

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

106(3) In lieu of the financial and compliance audit required byparagraph (2), the General Accounting Office shall, if the Officeconsiders it necessary or upon the request of the Congress, audit
the financial statements of the Corporation in the manner provided
in paragraph (2). The Corporation shall reimburse the General Accounting Office for the full cost of any audit conducted under thisparagraph.
(4) All books, accounts, financial records, reports, files,
workpapers, and property belonging to or in use by the Corporationand the accountant who conducts the audit under paragraph (2),which are necessary for purposes of this subsection, shall be madeavailable to the representatives of the General Accounting Office.
(d) To carry out the purposes of this title, the Corporation is
authorized to adopt and use a corporate seal, which shall be judicially noticed; to sue and be sued in its corporate name; to adopt,
amend, and repeal bylaws governing the conduct of its businessand the performance of the powers and duties granted to or imposed upon it by law; to acquire, hold or dispose of, upon suchterms and conditions as the Corporation may determine, any property, real, personal, or mixed, tangible or intangible, or any interest
therein; to invest funds derived from fees and other revenues in obligations of the United States and to use the proceeds therefrom,
including earnings and profits, as it shall deem appropriate; to indemnify directors, officers, employees and agents of the Corporation for liabilities and expenses incurred in connection with their
Corporation activities; to require bonds of officers, employees, andagents and pay the premiums therefor; notwithstanding any otherprovision of law, to represent itself or to contract for representationin all legal and arbitral proceedings; to enter into limited-term contracts with nationals of the United States for personal services tocarry out activities in the United States and abroad under subsections (d) and (e) of section 234; to purchase, discount, rediscount, sell, and negotiate, with or without its endorsement or guaranty, and guarantee notes, participation certificates, and other evidence of indebtedness (provided that the Corporation shall notissue its own securities, except participation certificates for the
purpose of carrying out section 231(c) or participation certificatesas evidence of indebtedness held by the Corporation in connection
with settlement of claims under section 237(i)); to make and carryout such contracts and agreements as are necessary and advisable
in the conduct of its business; to exercise the priority of the Government of the United States in collecting debts from bankrupt, insolvent, or decedents’ estates; to determine the character of and thenecessity for its obligations and expenditures, and the manner inwhich they shall be incurred, allowed, and paid, subject to provisions of law specifically applicable to Government corporations; tocollect or compromise any obligations assigned to or held by the
Corporation, including any legal or equitable rights accruing to the
Corporation; and to take such actions as may be necessary or appropriate to carry out the powers herein or hereafter specificallyconferred upon it.
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Sec. 240

shall conduct all security activities of the Corporation relating topersonnel and the control of classified material. With respect to his
responsibilities under this subsection, the Inspector General shallreport to the Board. The agency primarily responsible for administering part I shall be reimbursed by the Corporation for all expenses incurred by the Inspector General in connection with his responsibilities under this subsection.
(f) Except for the provisions of this title, no other provision ofthis or any other law shall be construed to prohibit the operationin Yugoslavia, Poland, Hungary, or any other East European country, or the People’s Republic of China, or Pakistan of the programs
authorized by this title, if the President determines that the operation of such program in such country is important to the national
interest.
(g) The requirements of section 117(c) of this Act relating toenvironmental impact statements and environmental assessments
shall apply to any investment which the Corporation insures, reinsures, guarantees, or finances under this title in connection with aproject in a country.
(h) In order to carry out the policy set forth in paragraph (1)of the second undesignated paragraph of section 231 of this Act,
the Corporation shall prepare and maintain for each investment
project it insures, finances, or reinsures, a development impact profile consisting of data appropriate to measure the projected and actual effects of such project on development. Criteria for evaluating
projects shall be developed in consultation with the Agency forInternational Development.
(i) The Corporation shall take into account in the conduct of its
programs in a country, in consultation with the Secretary of State,
all available information about observance of and respect forhuman rights and fundamental freedoms in such country and theeffect the operation of such programs will have on human rights
and fundamental freedoms in such country. The provisions of section 116 of this Act shall apply to any insurance, reinsurance, guaranty, or loan issued by the Corporation for projects in a country,
except that in addition to the exception (with respect to benefiting
needy people) set forth in subsection (a) of such section, the Corporation may support a project if the national security interest so
requires.
(j) The Corporation, including its franchise, capital, reserves,
surplus, advances, intangible property, and income, shall be exempt from all taxation at any time imposed by the United States,by any territory, dependency, or possession of the United States, orby any State, the District of Columbia, or any county, municipality,
or local taxing authority.
(k) The Corporation shall publish, and make available to applicants for insurance, reinsurance, guarantees, financing, or other assistance made available by the Corporation under this title, thepolicy guidelines of the Corporation relating to its programs.
SEC. 240. ø22 U.S.C. 2200¿ SMALL BUSINESS DEVELOPMENT.—(a) IN GENERAL.—The Corporation shall undertake, in cooperation
with appropriate departments, agencies, and instrumentalities of
the United States as well as private entities and others, to broaden
the participation of United States small business, cooperatives, andJune 10, 2019

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FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)108

other small United States investors in the development of small
private enterprise in less developed friendly countries or areas. The
Corporation shall allocate up to 50 percent of its annual net income, after making suitable provision for transfers and additions toreserves, to assist and facilitate the development of projects consistent with the provisions of this section. Such funds may be expended, notwithstanding the requirements of section 231(a), onsuch terms and conditions as the Corporation may determine,through loans, grants, or other programs authorized by section 234
and section 234A.
(b) OUTREACH TO MINORITY-OWNED AND WOMEN-OWNED BUSINESSES.—The Corporation shall collect data on the involvement ofminority- and women-owned businesses in projects supported by
the Corporation, including—(1) the amount of insurance and financing provided by the
Corporation to such businesses in connection with projects supported by the Corporation; and(2) to the extent such information is available, the involvement of such businesses in procurement activities conducted or
supported by the Corporation.
The Corporation shall include, in its annual report submitted to
the Congress under section 240A, the aggregate data collectedunder this paragraph, in such form as to quantify the effectivenessof the Corporation’s outreach activities to minority- and womenowned businesses.
SEC. 240A. ø22 U.S.C. 2200a¿ REPORTS TO THE CONGRESS.—
After (a) the end of each fiscal year, the Corporation shall submit
to the Congress a complete and detailed report of its operations
during such fiscal year. Such report shall include—(1) an assessment, based upon the development impact
profiles required by section 239(h), of the economic and social
development impact and benefits of the projects with respect towhich such profiles are prepared, and of the extent to which
the operations of Corporation complement or are compatible
with the development assistance programs of the United Statesand other donors; and(2) a description of any project for which the Corporation—(A) refused to provide any insurance, reinsurance,
guaranty, financing, or other financial support, on accountof violations of human rights referred to in section 239(i);or(B) notwithstanding such violations, provided such insurance, reinsurance, guaranty, financing, or financial support, on the basis of a determination (i) that the projectwill directly benefit the needy people in the country inwhich the project is located, or (ii) that the national security interest so requires.
(b)(1) Each annual report required by subsection (a) shall contain projections of the effects on employment in the United Statesof all projects for which, during the preceding fiscal year, the Corporation initially issued any insurance, reinsurance, or guaranty or
made any direct loan. Each such report shall include projectionsof—June 10, 2019

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Sec. 240B(A) the amount of United States exports to be generated
by those projects, both during the start-up phase and over a
period of years;(B) the final destination of the products to be produced asa result of those projects; and(C) the impact such production will have on the productionof similar products in the United States with regard to both
domestic sales and exports.
(2) The projections required by this subsection shall be basedon an analysis of each of the projects described in paragraph (1).
(3) In reporting the projections on employment required by thissubsection, the Corporation shall specify, with respect to eachproject—(A) any loss of jobs in the United States caused by the
project, whether or not the project itself creates other jobs;(B) any jobs created by the project; and(C) the country in which the project is located, and the economic sector involved in the project.
No proprietary information may be disclosed under this paragraph.
(c)(1) * * * øRepealed—1988¿(d) The Corporation shall maintain as part of its records—(1) all information collected in preparing the report required by subsection (c) (as in effect before the enactment of
the Overseas Private Investment Corporation Amendments Act
of 1988), whether the information was collected by the Corporation itself or by a contractor; and(2) a copy of the analysis of each project analyzed in preparing the reports required by either subsection (b) or (c) (asin effect before the enactment of the Overseas Private Investment Corporation Amendments Act of 1988).
(e) Each annual report required by subsection (a) shall include
an assessment of programs implemented by the Corporation under
section 234A(a), including the following information, to the extent
such information is available to the Corporation:(1) The nature and dollar value of political risk insurance
provided by private insurers in conjunction with the Corporation, which the Corporation was not permitted to provide
under this title.
(2) The nature and dollar value of political risk insurance
provided by private insurers in conjunction with the Corporation, which the Corporation was permitted to provide under
this title.
(3) The manner in which such private insurers and the
Corporation cooperated in recovery efforts and claims management.
(f) Subsections (b) and (e) do not require the inclusion in any
report submitted pursuant to those subsections of any information
which would not be required to be made available to the publicpursuant to section 552 of title 5, United States Code (relating to
freedom of information).

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SEC. 240B. ø22 U.S.C. 2200b¿ PROHIBITION ON NONCOMPETITIVE
AWARDING OF INSURANCE CONTRACTS ON OPIC SUPPORTED EXPORTS.
(a) REQUIREMENT FOR CERTIFICATION.—
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Sec. 241

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

110(1) IN GENERAL.—Except as provided in paragraph (3), theinvestor on whose behalf insurance, reinsurance, guaranties, orother financing is provided under this title with respect to a
project shall be required to certify to the Corporation that any
contract for the export of goods as part of that project will include a clause requiring that United States insurance companies have a fair and open competitive opportunity to provide
insurance against risk of loss of such export.
(2) WHEN CERTIFICATION MUST BE MADE.—The investor
shall be required, in every practicable case, to so certify before
the insurance, reinsurance, guarantee, or other financing isprovided. In any case in which such a certification is not madein advance, the investor shall include in the certification thereasons for the failure to make a certification in advance.
(3) EXCEPTION.—Paragraph (1) does not apply with respect
to an investor who does not, because of the nature of the investment, have a controlling interest in fact in the project inquestion.
(b) REPORTS BY THE UNITED STATES TRADE REPRESENTATIVE.—
The United States Trade Representative shall review the actions of
the Corporation under subsection (a) and, after consultation withrepresentatives of United States insurance companies, shall reportto the Congress in the report required by section 181(b) of theTrade Act of 1974 with respect to such actions.
(c) DEFINITIONS.—For purposes of this section—(1) the term ‘‘United States insurance company’’ includes—(A) an individual, partnership, corporation, holding
company, or other legal entity which is authorized, or in
the case of a holding company, subsidiaries of which areauthorized, by a State to engage in the business of issuinginsurance contracts or reinsuring the risk underwritten by
insurance companies; and(B) foreign operations, branches, agencies, subsidiaries, affiliates, or joint ventures of any entity described insubparagraph (A);
(2) United States insurance companies shall be considered
to have had a ‘‘fair and open competitive opportunity to provide
insurance’’ if they—(A) have received notice of the opportunity to provide
insurance; and(B) have been evaluated on a nondiscriminatory basis;and(3) the term ‘‘State’’ includes the District of Columbia andany commonwealth, territory, or possession of the UnitedStates.
Title V—Disadvantaged Children in Asia
SEC. 241. ø22 U.S.C. 2201¿ ASSISTANCE TO CERTAIN DISADVANTAGED CHILDREN IN ASIA.—(a) The Congress recognizes the humanitarian needs of disadvantaged children in Asian countries where
there has been or continues to be a heavy presence of UnitedStates military and related personnel in recent years. Moreover,
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Sec. 251

care and welfare of such disadvantaged children, particularly thosefathered by the United States citizens.
(b) Accordingly, the President is authorized to expend up to$3,000,000 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 assistingin the expansion and improvement of orphanages, hostels, day carecenters, 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.
TITLE VI—DEVELOPMENT ASSISTANCE FOR MICRO, SMALL,
AND MEDIUM-SIZED ENTERPRISES
Subtitle A—Grant Assistance
SEC. 251. ø22 U.S.C. 2211¿ FINDINGS AND POLICY.

Congress finds and declares the following:(1) Access to financial services and the development of
micro, small, and medium-sized enterprises are vital factors inthe stable growth of developing countries, in the developmentof free, open, and equitable international economic systems,
and in the economic empowerment of the poor, especiallywomen.
(2) It is therefore in the best interest of the United States
to facilitate access to financial services and assist the development of micro, small, and medium-sized enterprises in developing countries, particularly enterprises owned, managed, andcontrolled by women.
(3) Access to financial services and the development of
micro, small, and medium-sized enterprises can be supported
by programs providing credit, savings, training, technical assistance, business development services, and other financial
services.
(4) Given the relatively high percentage of populations living in rural areas of developing countries, and the combinedhigh incidence of poverty in rural areas and growing income inequality between rural and urban markets, micro, small, andmedium-sized enterprise programs should target both ruraland urban poor.
(5) Microenterprise programs have been successful andshould continue and be expanded to empower vulnerable
women in the developing world. The Agency should work to ensure that recipients of development assistance for micro, small,and medium-sized enterprises under this title communicate
and work with nongovernmental organizations and governmentorganizations to identify and assist victims of trafficking as
provided for in section 106(a)(1) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7104(a)(1); Public Law 106–386)
and women who are victims of or susceptible to other forms of
exploitation and violence.
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Sec. 252

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112(6) Given that microenterprise programs have had somesuccess in empowering disenfranchised groups such as women,development assistance for micro, small, and medium-sized enterprises should also target populations disenfranchised due torace or ethnicity in countries where a strong relationship between poverty and race or ethnicity has been demonstrated.
SEC. 252. ø22 U.S.C. 2211a¿ AUTHORIZATION; IMPLEMENTATION; TARGETED ASSISTANCE.
(a) AUTHORIZATION.—The President is authorized to provide as-sistance on a non-reimbursable basis for programs in developing
countries to increase the availability of credit, including the use ofinnovative credit scoring models, savings, financial technology, financial literacy, education, insurance, property rights, and otherservices to micro, small, and medium-sized enterprise clients lacking full access to capital, training, technical assistance, and business development services, through—(1) assistance for the purpose of expanding the availabilityof credit, savings, and other financial and non-financial services to micro, small, and medium-sized enterprise clients, particularly clients owned, managed, and controlled by women;(2) assistance for the purpose of training, technical assistance, and business development services for micro, small, andmedium-sized enterprises to enable them to make better use ofcredit, to better manage their enterprises, to conduct market
analysis and product development for expanding domestic andinternational sales, particularly to United States markets, andto increase their income and build their assets;(3) capacity-building for financial intermediaries in orderto enable them to better meet the credit, savings, and training
needs of micro, small, and medium-sized enterprises;(4) policy, regulatory programs, and research at the country level that improve the environment for micro, small, andmedium-sized enterprises, financial intermediaries, and capital
markets that serve the poor and very poor, especially women;(5) assistance for the purpose of promoting the economic
empowerment of women, including through increased access tofinancial resources and improving property rights, inheritancerights, and other legal protections; and(6) assistance for the purpose of scaling up evidence-based
graduation approaches, which include targeting the very poorand households in ultra-poverty, consumption support, promotion of savings, financial literacy, skills training, and asset
transfers.
(b) IMPLEMENTATION.—(1) IN GENERAL.—There is authorized to be establishedwithin the Agency an office to support the Agency’s efforts tobroaden and deepen local financial markets, expand access toappropriate financial products and services, and support thedevelopment of micro, small and medium-sized enterprises.
The Office shall be headed by a Director who shall possess
technical expertise and ability to offer leadership in the fieldof financial sector development.
(2) ADDITIONAL PROVISIONS.—
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Sec. 253(A) USE OF IMPLEMENTING PARTNER ORGANIZATIONS.—
Assistance under this section shall emphasize the use of
implementing partner organizations that best meet the requirements of subparagraph (C).
(B) USE OF CENTRAL FUNDING MECHANISMS.—In orderto ensure that assistance under this title is distributed effectively and efficiently, the office shall provide coordination and support for field-implemented programs, including through targeted core support for micro, small, andmedium-sized enterprises and local financial markets.
(C) EFFICIENCY AND COST-EFFECTIVENESS.—Assistanceunder this section shall meet high standards of efficiency,
cost-effectiveness, and sustainability, particularly by protecting the use and funding of local organizations in countries in which the Agency invests, and shall especially provide the greatest possible resources to the poor and very
poor, especially women. When administering assistanceunder this section, the Administrator shall—(i) take into consideration the percentage of funds
a provider of assistance intends to expend on administrative costs;(ii) take all appropriate steps to ensure that theprovider of assistance keeps administrative costs as
low as practicable to ensure the maximum amount offunds are used for directly assisting microfinance andmicroenterprise clients, for establishing sustainablemicrofinance and microenterprise institutions, or foradvancing the microenterprise development field; and(iii) give preference to proposals from providers ofassistance that are the most technically competitiveand have a reasonable allocation to overhead and administrative costs.
(c) TARGETED ASSISTANCE.—In carrying out sustainable poverty-focused programs under subsection (a)—(1) 50 percent of all micro, small, and medium-sized enterprise resources shall be targeted to activities that reach thevery poor; and(2) 50 percent of all small and medium-sized enterprise resources shall be targeted to activities that reach enterprises
owned, managed, and controlled by women.
SEC. 253. ø22 U.S.C. 2211b¿ MONITORING SYSTEM.
(a) IN GENERAL.—In order to maximize the sustainable devel-

opment impact of assistance authorized under section 252(a), theAdministrator of the Agency, acting through the Director of the office, shall strengthen its monitoring system to meet the requirements of subsection (b).
(b) REQUIREMENTS.—The requirements referred to in subsection (a) are the following:(1) The monitoring system shall include performance goals,
including goals on a gender disaggregated basis, such as improvements in employment, access to financial services, education, enterprise development, earnings and control over income, and property and land rights, for the assistance and exJune 10, 2019

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Sec. 254

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114

presses such goals in an objective and quantifiable form, to theextent feasible.
(2) The monitoring system shall incorporate Agency planning and reporting processes and indicators to measure or assess the achievement of the performance goals described inparagraph (1) and the objectives of the assistance authorizedunder section 252.
(3) The monitoring system provides a basis for recommendations for adjustments to the assistance to enhance
the sustainability and the impact of the assistance, particularly the impact of such assistance on the very poor, particularly poor women.
SEC. 254. ø22 U.S.C. 2211c¿ POVERTY MEASUREMENT METHODS.

The Administrator of the Agency, in consultation with financial
intermediaries and other appropriate organizations, should have inplace at least 1 method for implementing partners to use to assesspoverty levels of their current incoming or prospective clients.
SEC. 255. ø22 U.S.C. 2211d¿ ADDITIONAL AUTHORITIES.

Notwithstanding any other provision of law, amounts madeavailable for development assistance for micro, small, and mediumsized enterprises under any provision of law other than this title
may be provided to further the purposes of this title. To the extent
assistance described in the preceding sentence is provided in accordance with such sentence, the Administrator of the Agency shall
include, as part of the report required under section 258, a detailed
description of such assistance.
Subtitle B—Credit Assistance
SEC. 256. ø22 U.S.C. 2212¿ DEVELOPMENT CREDITS FOR MICRO, SMALL,
AND MEDIUM-SIZED ENTERPRISES.
(a) FINDINGS AND POLICY.—Congress finds and declares that—(1) the development of micro, small, and medium-sized enterprises is a vital factor in the stable growth of developing
countries and in the development and stability of a free, open,
and equitable international economic system; and(2) it is, therefore, in the best interests of the UnitedStates to assist the access to financial services and the development of micro, small, and medium-sized enterprises in developing countries and to engage the United States private sector
in that process.
(b) PROGRAM.—To carry out the policy set forth in subsection(a), the President is authorized to provide assistance to increase
the availability of financial services to micro, small, and mediumsized enterprises and households lacking full access to credit andother financial services, including through—(1) loans and guarantees to financial intermediaries for the
purpose of expanding the availability of savings and credit topoor and low-income households;(2) training programs for financial intermediaries in orderto enable them to better meet the financial services needs oftheir clients; and(3) training programs for clients in order to enable themto make better use of credit, increase their financial literacy,
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Sec. 257

and to better manage their enterprises to improve their qualityof life.
(c) ELIGIBILITY CRITERIA.—The Administrator of the Agency
shall establish criteria for determining which financial intermediaries described in subsection (b)(1) are eligible to carry out activities, with respect to micro, small, and medium-sized enterprises
and households, assisted under this section. Such criteria may include the following:(1) The extent to which the recipients of financial services
from the entity do not have access to the local formal financial
sector.
(2) The extent to which the recipients of financial services
from the entity are among the poorest people in the country.
(3) The extent to which the entity is oriented toward working directly with poor women.
(4) The extent to which the entity recovers its cost of lending.
(5) The extent to which the entity implements a plan to become financially sustainable.
(d) ADDITIONAL REQUIREMENT.—Assistance provided under thissection may only be used to support programs for micro, small, andmedium-sized enterprises and households and may not be used tosupport programs not directly related to the purposes described insubsection (b).
(e) PROCUREMENT PROVISION.—Assistance may be provided
under this section without regard to section 604(a).
(f) AVAILABILITY OF FUNDS.—(1) IN GENERAL.—Of the amounts authorized to be available to carry out this part, there are authorized to be available
such sums as may be necessary for each of the fiscal years
2005 through 2009 to carry out this section.
(2) COVERAGE OF SUBSIDY COSTS.—Amounts authorized to
be available under paragraph (1) shall be made available tocover the subsidy cost, as defined in section 502(5) of the Federal Credit Reform Act of 1990, for activities under this section.
Subtitle C—United States Microfinance Loan Facility
SEC. 257. ø22 U.S.C. 2213¿ UNITED STATES MICROFINANCE LOAN FACILITY.
(a) ESTABLISHMENT.—The President is authorized to establish

a United States Microfinance Loan Facility (in this section referred
to as the ‘‘Facility’’) to pool and manage the risk from natural disasters, war or civil conflict, national financial crisis, or short-term
financial movements that threaten the long-term development of
United States-supported financial intermediaries.
(b) DISBURSEMENTS.—(1) IN GENERAL.—The Administrator shall make disbursements from the Facility to United States-supported financial
intermediaries to prevent the bankruptcy of such institutions
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Sec. 257

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

116(C) national financial crisis or other short-term financial movements that threaten the long-term developmentof United States-supported financial intermediaries.
(2) FORM OF ASSISTANCE.—Assistance under this section
shall be in the form of loans or loan guarantees for financial
intermediaries that demonstrate the capacity to resume selfsustained operations within a reasonable time period.
(3) CONGRESSIONAL NOTIFICATION PROCEDURES.—During
each of the fiscal years 2005 through 2009, funds may not bemade available from the Facility until 15 days after notification of the proposed availability of the funds has been provided
to the congressional committees specified in section 634A in accordance with the procedures applicable to reprogramming notifications under that section.
(c) GENERAL PROVISIONS.—(1) POLICY PROVISIONS.—In providing the credit assistanceauthorized by this section, the Administrator should apply, as
appropriate, the policy provisions in this part that are applicable to development assistance activities.
(2) DEFAULT AND PROCUREMENT PROVISIONS.—(A) DEFAULT PROVISION.—The provisions of section
620(q), or any comparable provision of law, shall not be
construed to prohibit assistance to a country in the eventthat a private sector recipient of assistance furnishedunder this section is in default in its payment to theUnited States for the period specified in such section.
(B) PROCUREMENT PROVISION.—Assistance may be provided under this section without regard to section 604(a).
(3) TERMS AND CONDITIONS OF CREDIT ASSISTANCE.—(A) IN GENERAL.—Credit assistance provided under
this section shall be offered on such terms and conditions,
including fees charged, as the Administrator may determine.
(B) LIMITATION ON PRINCIPAL AMOUNT OF FINANCING.—
The principal amount of loans made or guaranteed under
this section in any fiscal year, with respect to any single
event, may not exceed $30,000,000.
(C) EXCEPTION.—No payment may be made under any
guarantee issued under this section for any loss arising out
of fraud or misrepresentation for which the party seeking
payment is responsible.
(4) FULL FAITH AND CREDIT.—All guarantees issued under
this section shall constitute obligations, in accordance with theterms of such guarantees, of the United States of America, andthe full faith and credit of the United States of America ishereby pledged for the full payment and performance of suchobligations to the extent of the guarantee.
(d) FUNDING.—(1) ALLOCATION OF FUNDS.—Of the amounts made available to carry out this part for each of the fiscal years 2005
through 2009, such sums as may be necessary may be madeavailable for—
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Sec. 259(A) the subsidy cost, as defined in section 502(5) of theFederal Credit Reform Act of 1990, to carry out this section; and(B) the administrative costs to carry out this section.
(2) RELATION TO OTHER FUNDING.—Amounts made available under paragraph (1) are in addition to amounts available
under any other provision of law to carry out this section.
Subtitle D—Miscellaneous Provisions
SEC. 258. ø22 U.S.C. 2214¿ REPORT.
(a) IN GENERAL.—Not later than June 30, 2006, and each June

30 thereafter, the Administrator of the Agency, acting through the
Director of the office, shall submit to the appropriate congressional
committees a report that contains a detailed description of the implementation of this title for the previous fiscal year.
(b) CONTENTS.—To the extent practicable, the report submitted
under subsection (a) should contain the following:(1) Information about assistance provided under section
252, including—(A) the amount of each grant or other form of assistance;(B) the name and type of each intermediary and implementing partner organization receiving assistance;(C) the name of each country receiving assistance; and(D) the methodology used to ensure compliance withthe targeted assistance requirements under subsection (c)of such section.
(2) The percentage of assistance provided under section
252, disaggregated by income level, including for the very poor,and by gender.
(3) The estimated number of individuals that received assistance under section 252, disaggregated by income level (oran appropriate proxy for income level, including for the verypoor), by gender, and by type of assistance.
(4) The results of the monitoring system required under
section 253.
(5) Information about any method in place to assess poverty levels under section 254.
(c) AVAILABILITY TO PUBLIC.—The report required by this section shall be made available to the public on the Internet websiteof the Agency.
SEC. 259. ø22 U.S.C. 2214a¿ DEFINITIONS.

In this title:(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the
Administrator of the Agency.
(2) AGENCY.—The term ‘‘Agency’’ means the United States
Agency for International Development.
(3) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term‘‘appropriate congressional committees’’ means the Committee
on Foreign Affairs of the House of Representatives and theCommittee on Foreign Relations of the Senate.
(4) BUSINESS DEVELOPMENT SERVICES.—The term ‘‘businessdevelopment services’’ means support for the growth of micro,
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118

small, and medium-sized enterprises through training, technical assistance, marketing assistance, improved production
technologies, and other related services.
(5) DIRECTOR.—The term ‘‘Director’’ means the Director of
the office.
(6) IMPLEMENTING PARTNER ORGANIZATION.—The term ‘‘implementing partner organization’’ means an entity eligible toreceive assistance under this title which is—(A) a United States or an indigenous private voluntaryorganization;(B) a United States or an indigenous credit union;(C) a United States or an indigenous cooperative organization;(D) an indigenous governmental or nongovernmentalorganization;(E) a micro, small, or medium-sized enterprise institution;(F) a financial intermediary; or(G) a practitioner institution.
(7) MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISE INSTITUTION.—The term ‘‘micro, small, and medium-sized enterprise
institution’’ means an entity that provides services, including
finance, training, or business development services, for micro,
small, and medium-sized enterprises in foreign countries.
(8) FINANCIAL INTERMEDIARY.—The term ‘‘financial intermediary’’ means the entity that acts as the intermediary between parties in a financial transaction, such as a bank, credit
union, investment fund, a village savings and loan group, or an
institution that provides financial services to a micro, small, or
medium-sized enterprise.
(9) OFFICE.—The term ‘‘office’’ means the office establishedunder section 252(b)(1).
(10) PRACTITIONER INSTITUTION.—The term ‘‘practitioner
institution’’ means a not-for-profit entity, a financial intermediary, an information and communications technology firmwith a mobile money platform, a village and savings loangroup, or any other entity that provides financial or businessdevelopment services authorized under section 252 that benefits micro, small, and medium-sized enterprise clients.
(11) PRIVATE VOLUNTARY ORGANIZATION.—The term ‘‘private voluntary organization’’ means a not-for-profit entity
that—(A) engages in and supports activities of an economic
or social development or humanitarian nature for citizens
in foreign countries; and(B) is incorporated as such under the laws of theUnited States, including any of its states, territories or theDistrict of Columbia, or of a foreign country.
(12)
UNITED
STATES-SUPPORTEDFINANCIALINTERMEDIARY.—The term ‘‘United States-supported financial intermediary’’ means a financial intermediary that has received
funds made available under this part for fiscal year 1980 or
any subsequent fiscal year.
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Sec. 281(13) VERY POOR.—The term ‘‘very poor’’ means those individuals—(A) living in the bottom 50 percent below the poverty
line established by the national government of the country
in which those individuals live; or(B) living below the international poverty line (as defined by the International Bank for Reconstruction andDevelopment and the International Development Association (collectively referred to as the ‘‘World Bank’’)).
TITLE IX—UTILIZATION OF DEMOCRATIC INSTITUTIONS IN
DEVELOPMENT

SEC. 281. ø22 U.S.C. 2218¿ UTILIZATION OF DEMOCRATIC INSTITUTIONS IN DEVELOPMENT.—(a) In carrying out programs authorized in this chapter and chapter 1, emphasis shall be placed on assuring maximum participation in the task of economic developmenton the part of the people of the developing countries, through theencouragement of democratic private and local governmental institutions.
(b) In order to carry out the purposes of this title, programs
under this chapter and chapter 1 shall—(1) recognize the differing needs, desires, and capacities ofthe people of the respective developing countries and areas;(2) use the intellectual resources of such countries andareas in conjunction with assistance provided under this Act so
as to encourage the development of indigenous institutions
that meet their particular requirements for sustained economic
and social progress; and(3) support civic education and training in skills required
for effective participation in governmental and political processes essential to self-government.
(c) In the allocation of funds for research under this chapter
and chapter 1, emphasis shall be given to research designed to examine the political, social, and related obstacles to development incountries receiving assistance under part I of this Act. In particular, emphasis should be given to research designed to increase
understanding of the ways in which development assistance can
support democratic, social and political trends in recipient countries.
(d) Emphasis shall also be given to the evaluation of relevant
past and current programs under part I of this Act and to applying
this experience so as to strengthen their effectiveness in implementing the objectives of this title.
(e) In order to carry out the purposes of this title, the agency
primarily responsible for administering part I of this Act, shall develop systematic programs of inservice training to familiarize its
personnel with the objectives of this title and to increase theirknowledge of the political and social aspects of development. In addition to other funds available for such purposes, not to exceed 1
per centum of the funds authorized to be appropriated for grant assistance under this chapter and chapter 1 may be used for carryingout the objectives of this subsection.
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120øTitle X—Programs Relating to Population Growth—Repealed—1978¿øTitle XI—Food Production Targets and Reports—Repealed—
1978¿
TITLE XII—FAMINE PREVENTION AND FREEDOM FROMHUNGER
SEC. 296. ø22 U.S.C. 2220a¿ GENERAL PROVISIONS.—(a) The
Congress declares that, in order to achieve the mutual goals among
nations of ensuring food security, human health, agricultural
growth, trade expansion, and the wise and sustainable use of natural resources, the United States should mobilize the capacities of
the United States land-grant universities, other eligible universities, and public and private partners of universities in the UnitedStates and other countries, consistent with sections 103 and 103Aof this Act, for: (1) global research on problems affecting food, agriculture, forestry, and fisheries; (2) improved human capacity andinstitutional resource development for the global application of agricultural and related environmental sciences; (3) agricultural development and trade research and extension services in the UnitedStates and other countries to support the entry of rural industries
into world markets; and (4) providing for the application of agricultural sciences to solving food, health, nutrition, rural income, andenvironmental problems, especially such problems in low-income,food deficit countries.
The Congress so declares because it finds—(A) that the establishment, endowment, and continuing
support of land-grant universities in the United States by Federal, State, and county governments has led to agricultural
progress with and through the private sector in this country
and to understanding processes of economic development;(B) that land-grant and other universities in the UnitedStates have demonstrated over many years their ability to cooperate with international agencies, educational and research
institutions in other countries, the private sector, and nongovernmental organizations worldwide, in expanding global agricultural production, processing, business and trade, to thebenefit of aid recipient countries and of the United States;(C) that, in a world of growing populations with rising expectations, increased food production and improved distribution, storage, and marketing in the developing countries is necessary not only to prevent hunger and ensure human healthand child survival, but to build the basis for economic growth
and trade, and the social security in which democracy and amarket economy can thrive, and moreover, that the greatest
potential for increasing world food supplies and incomes topurchase food is in the developing countries where the gap between food need and food supply is the greatest and current incomes are lowest;(D) that increasing and making more secure the supply offood is of greatest benefit to the poorest majority in the developing world;
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Sec. 296(E) that, with expanding global markets and increasing
imports into many countries, including the United States, foodsafety and quality, as well as secure supply, have emerged as
mutual concerns of all countries;(F) that research, teaching, and extension activities, andappropriate institutional and policy development therefore areprime factors in improving agricultural production, food distribution, processing, storage, and marketing abroad (as wellas in the United States);(G) moreover, that agricultural research abroad has in thepast and will continue in the future to provide benefits for agriculture and the broader economy of the United States andthat increasing the availability of food of higher nutritional
quality is of benefit to all;(H) that there is a need to responsibly manage the world’s
agricultural and natural resources for sustained productivity,
health and resilience to climate variability; and(I) that universities and public and private partners of universities need a dependable source of funding in order to increase the impact of their own investments and those of their
State governments and constituencies, in order to continue andexpand their efforts to advance agricultural development in cooperating countries, to translate development into economic
growth and trade for the United States and cooperating countries, and to prepare future teachers, researchers, extension
specialists, entrepreneurs, managers, and decisionmakers forthe world economy.
(b) Accordingly, the Congress declares that, in order to prevent
famine and establish freedom from hunger, the following components must be brought together in a coordinated program to increase world food and fiber production, agricultural trade, and responsible management of natural resources, including—(1) continued efforts by the international agricultural research centers and other international research entities to provide a global network, including United States universities, forinternational scientific collaboration on crops, livestock, forests,
fisheries, farming resources, and food systems of worldwide importance;(2) contract research and the implementation of collaborative research support programs and other research collaboration led by United States universities, and involving researchsystems in other countries focused on crops, livestock, forests,
fisheries, farming resources, and food systems, with benefits to
the United States and partner countries;(3) broadly disseminating the benefits of global agricultural research and development including increased benefits
for United States agriculturally related industries through establishment of development and trade information and service
centers, for rural as well as urban communities, through extension, cooperatively with, and supportive of, existing public andprivate trade and development related organizations;(4) facilitation of participation by universities and public
and private partners of universities in programs of multilateralbanks and agencies which receive United States funds;
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122(5) expanding learning opportunities about global agriculture for students, teachers, community leaders, entrepreneurs, and the general public through international internships and exchanges, graduate assistantships, faculty positions, and other means of education and extension throughlong-term recurring Federal funds matched by State funds; and(6) competitive grants through universities to UnitedStates agriculturalists and public and private partners of universities from other countries for research, institution and policy development, extension, training, and other programs for
global agricultural development, trade, and responsible management of natural resources.
(c) The United States should—(1) effectively involve the United States land-grant andother eligible universities more extensively in each of the program components described in paragraphs (1) through (6) of
subsection (b);(2) provide mechanisms for the universities and public andprivate partners of universities to participate and advise in theplanning, development, implementation, and administration ofeach component;(3) assist such universities and public and private partnersof universities in cooperative joint efforts with—(A) agricultural institutions in developing nations;(B) regional and international agricultural research
centers;(C) multilateral banks and agencies receiving UnitedStates funds;(D) development agencies of other countries; and(E) United States Government foreign assistance andeconomic cooperation programs;(4) generally engage the United States university community more extensively in the agricultural research, trade, anddevelopment initiatives undertaken outside the United States,with the objectives of strengthening its capacity to carry out
research, teaching, and extension activities for solving problems in food production, processing, marketing, and consumption in agriculturally developing nations, and for transforming
progress in global agricultural research and development into
economic growth, trade, and trade benefits for aid recipient
countries and United States communities and industries, andfor the wise use of natural resources; and(5) ensure that all federally funded support to universities
and public and private partners of universities relating to thegoals of this title is periodically reviewed for its performance.
(d) As used in this title, the term ‘‘universities’’ means thosecolleges or universities in each State, territory, or possession of theUnited States, or the District of Columbia, now receiving, or which
may hereafter receive, benefits under the Act of July 2, 1862(known as the First Morrill Act), or the Act of August 30, 1890
(known as the Second Morrill Act), which are commonly known as‘‘land-grant’’ universities; institutions now designated or which may
hereafter be designated as sea-grant colleges under the Act of October 15, 1966 (known as the National Sea Grant College and ProJune 10, 2019

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Sec. 297

gram Act), which are commonly known as sea-grant colleges; Native American land-grant colleges as authorized under the Equity
in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note);
and other United States colleges and universities which—(1) have demonstrable capacity in teaching, research, andextension (including outreach) activities in the agriculturalsciences; and(2) can contribute effectively to the attainment of the objective of this title.
(e) As used in this title, the term ‘‘Administrator’’ means the
Administrator of the United States Agency for International Development.
(f) As used in this title, the term ‘‘public and private partnersof universities’’ includes entities that have cooperative or contractual agreements with universities, which may include formal or informal associations of universities, other education institutions,
United States Government and State agencies, private voluntaryorganizations, nongovernmental organizations, firms operated forprofit, nonprofit organizations, multinational banks, and, as designated by the Administrator, any organization, institution, or
agency incorporated in other countries.
(g) As used in this title, the term ‘‘agriculture’’ includes thescience and practice of activity related to food, feed, and fiber production, processing, marketing, distribution, utilization, and trade,
and also includes family and consumer sciences, nutrition, foodscience and engineering, agricultural economics and other social
sciences, forestry, wildlife, fisheries, aquaculture, floraculture, veterinary medicine, and other environmental and natural resourcessciences.
(h) As used in this title, the term ‘‘agriculturists’’ includes
farmers, herders, and livestock producers, individuals who fish andothers employed in cultivating and harvesting food resources fromsalt and fresh waters, individuals who cultivate trees and shrubs
and harvest nontimber forest products, as well as the processors,
managers, teachers, extension specialists, researchers, policymakers, and others who are engaged in the food, feed, and fiber
system and its relationships to natural resources.
SEC. 297. ø22 U.S.C. 2220b¿ GENERAL AUTHORITY.—(a) To
carry out the purposes of this title, the President is authorized toprovide assistance on such terms and conditions as he shall determine—(1) to implement program components through UnitedStates universities as authorized by paragraphs (2) through (5)of this subsection;(2) to build and strengthen the institutional capacity andhuman resources skills of agriculturally developing countries
so that these countries may participate more fully in the international agricultural problem-solving effort and to introduce
and adapt new solutions to local circumstances;(3) to provide long-term program support for United States
university global agricultural and related environmental collaborative research and learning opportunities for students,
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124(4) to involve United States universities more fully in theinternational network of agricultural science, including theinternational agricultural research centers, the activities ofinternational organizations such as the United Nations Development Program and the Food and Agriculture Organization,
multilateral banks, the institutions of agriculturally developing
nations, and United States and foreign nongovernmental organizations supporting extension and other productivity-enhancing programs; and(5) to provide program support for international agricultural research centers, to provide support for research projects
identified for specific problem-solving needs, and to develop
and strengthen national research systems in the developing
countries.
(b) Programs under this title shall be carried out so as to—(1) utilize and strengthen the capabilities of United States
universities with public and private partners of universitiesin—(A) developing capacity in the cooperating nation forclassroom teaching in agriculture, plant and animal
sciences, human nutrition, and vocational and domestic
arts and other relevant fields appropriate to local needs;(B) agricultural research to be conducted in the cooperating nations, at international agricultural research
centers, or in the United States;(C) the planning, initiation, and development of extension services through which information concerning agriculture, environment, and related subjects will be madeavailable directly to agriculturalists in the agriculturally
developing nations by means of education and demonstration; or(D) the exchange of educators, scientists, and students
for the purpose of assisting in successful development in
the cooperating nations;(2) take into account the value to the United States agriculture of such programs, integrating to the extent practicable
the programs and financing authorized under this title withthose supported by other Federal or State resources, including
resources of the private sector, so as to maximize the contribution to the development of agriculture in the United States andin agriculturally developing nations; and(3) whenever practicable, build on existing programs andinstitutions including those of the universities, the Departmentof Agriculture, State agricultural agencies, the Department ofCommerce, the Department of the Interior, the Environmental
Protection Agency, the Office of the United States Trade Representative, the Food and Drug Administration, other appropriate Federal agencies, and appropriate nongovernmental andbusiness organizations.
(c) To the maximum extent practicable, activities under thissection shall—(1) be directly related to the food and agricultural needs ofdeveloping countries;
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Sec. 298(2) focus primarily on the needs of agricultural producers,
rural families, processors, traders, consumers, and natural resources managers;(3) be adapted to local circumstances;(4) be carried out within the developing countries andtransition countries comprising newly emerging democracies
and newly liberalized economies; and(5) emphasize the improvement of local systems for delivering the best available knowledge to the small farmers of suchcountries.
(d) The President shall exercise his authority under this section through the Administrator.
(e) The Administrator shall establish and carry out special programs under this title as part of ongoing programs for child survival, democratization, development of free enterprise, environmental and natural resource management, and other related programs.
SEC. 298. ø22 U.S.C. 2220c¿ BOARD FOR INTERNATIONAL FOOD
AND AGRICULTURAL DEVELOPMENT.—(a) To assist in the administration of the programs authorized by this title, the President shallestablish a permanent Board for International Food and Agricultural Development (hereafter in this title referred to as the‘‘Board’’) consisting of seven members, not less than four to be selected from the universities. Terms of members shall be set by the
President at the time of appointment. Members of the Board shallbe entitled to such reimbursement for expenses incurred in the performance of their duties (including per diem in lieu of subsistence
while away from their homes or regular place of business) as the
President deems appropriate on a case-by-case basis.
(b) The Board’s general areas of responsibility shall include
participating in the planning, development, and implementation of,initiating recommendations for, and monitoring, the activities described in section 297 of this title.
(c) The Board’s duties shall include, but not necessarily be limited to—(1) participating in the formulation of basic policy, procedures, and criteria for project proposal review, selection, andmonitoring;(2) developing and keeping current a roster of universities—(A) interested in exploring their potential for collaborative relationships with agricultural institutions, andwith scientists working on significant programs designed
to improve agricultural production, trade, and natural resource management in developing countries, and with private organizations seeking to increase agricultural production and trade, natural resources management, and household food security in developing and transition countries; 22(B) having capacity in the agricultural, environmental,
and related social sciences,(C) able to maintain an appropriate balance of teaching, research, and extension functions,
22 So in original. See P.L. 106–373, sec. 4(c)(1)(A).

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126(D) having capacity, experience, and commitment withrespect to international agricultural efforts, and(E) able to contribute to solving the problems addressed by this title;(3) recommending which developing nations could benefit
from programs carried out under this title, and identifying
those nations which have an interest in establishing or developing agricultural institutions which engage in teaching, research, or extension activities;(4) reviewing and evaluating memorandums of understanding or other documents that detail the terms and conditions between the Administrator and universities and theirpartners participating in programs under this title;(5) reviewing and evaluating agreements and activities authorized by this title and undertaken by universities and public
and private partners of universities to assure compliance withthe purposes of this title;(6) recommending to the Administrator the apportionmentof funds under section 297 of this title;(7) assessing the impact of programs carried out under thistitle in solving agricultural problems and natural resource
issues in the developing nations, assuring efficiency in use ofFederal resources, including in accordance with the Governmental Performance and Results Act of 1993 (Public Law 103–
62; 107 Stat. 285), and the amendments made by that Act;(8) developing information exchanges and consulting regularly with nongovernmental organizations, consumer groups,
producers, agribusinesses and associations, agricultural cooperatives and commodity groups, State departments of agriculture, State agricultural research and extension agencies,
and academic institutions;(9) investigating and resolving issues concerning implementation of this title as requested by universities; and(10) advising the Administrator on any and all issues asrequested.
(d) The President may authorize the Board to create such subordinate units as may be necessary for the performance of its duties, including but not limited to the following:(1) a Joint Policy Committee to participate in the designand development of the collaborative activities described in section 297 of this title; and(2) a Joint Operations Committee which shall assist in andadvise on the mechanisms and processes for implementation ofactivities described in section 297.
(e) In addition to any other functions assigned to and agreed
to by the Board, the Board shall be consulted in the preparationof the annual report required by section 300 of this title and onother agricultural development activities related to programs under
this title.
SEC. 299. ø22 U.S.C. 2220d¿ AUTHORIZATION.—(a) The President is authorized to use any of the funds hereafter made available
under section 103 of this Act to carry out the purposes of this title.
Funds made available for such purposes may be used without regard to the provisions of sections 110(b) and 122(d) of this Act.
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Sec. 301(b) Foreign currencies owned by the United States and determined by the Secretary of the Treasury to be excess to the needsof the United States shall be used to the maximum extent possible
in lieu of dollars in carrying out the provisions of this title.
(c) Assistance authorized under this title shall be in addition
to any allotments or grants that may be made under other authorizations.
(d) Universities may accept and expend funds from othersources, public and private, in order to carry out the purposes ofthis title. All such funds, both prospective and inhand, shall be periodically disclosed to the Administrator as he shall by regulation
require, but no less often than in an annual report.
SEC. 300. ø22 U.S.C. 2220e¿ ANNUAL REPORT.—The President
shall transmit to the Congress, not later than September 1 of eachyear, a report detailing the activities carried out pursuant to thistitle during the preceding fiscal year and containing a projection ofprograms and activities to be conducted during the subsequent fivefiscal years. Each report shall contain a summary of the activitiesof the Board established pursuant to section 298 of this title andmay include the separate views of the Board with respect to any
aspect of the programs conducted or proposed to be conductedunder this title.
CHAPTER 3—INTERNATIONAL ORGANIZATIONS AND PROGRAMS
SEC. 301. ø22 U.S.C. 2221¿ GENERAL AUTHORITY.—(a) Whenhe determines it to be in the national interest, the President is authorized to make voluntary contributions on a grant basis to international organizations and to programs administered by such organizations, and in the case of the Indus Basin Development Fund
administered by the International Bank for Reconstruction and Development to make grants and loans payable as to principal and interest in United States dollars and subject to the provisions of section 122(b), on such terms and conditions as he may determine, inorder to further the purposes of this part.
(b) * * * øRepealed—1981¿(c) No contributions by the United States shall be made to theUnited Nations Relief and Works Agency for Palestine Refugees in
the Near East except on the condition that the United Nations Relief and Works Agency take all possible measures to assure that nopart of the United States contribution shall be used to furnish assistance to any refugee who is receiving military training as amember of the so-called Palestine Liberation Army or any otherguerrilla type organization or who has engaged in any act of terrorism.
(d) In any case in which a fund established solely by UnitedStates contributions under this or any other Act is administered byan international organization under the terms of an agreement between the United States and such international organization, suchagreement shall provide that the Comptroller General of theUnited States shall conduct such audits as are necessary to assurethat such fund is administered in accordance with such agreement.
The President shall undertake to modify any existing agreement
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128

form to the requirements of the preceding sentence. The Comptroller General shall report simultaneously to the Congress and thePresident the results of the audit conducted under this subsection.
(e)(1) In the case of the United Nations and its affiliated organizations, including the International Atomic Energy Agency, thePresident shall, acting through the United States representative tosuch organizations, propose and actively seek the establishment by
the governing authorities of such organizations of external, professionally qualified groups of appropriate size for the purpose of providing an independent and continuous program of selective examinations, review, evaluation, and audits of the programs and activities of such organizations. Such proposal shall provide that suchgroups shall be established in accordance with such terms of reference as such governing authority may prescribe and that the reports of such groups on each examination, review, evaluation or audits shall be submitted directly to such governing authority fortransmittal to the representative of each individual member nation.
Such proposal shall further include a statement of auditing and reporting standards, as prepared by the Comptroller General of theUnited States, for the consideration of the governing authority of
the international organization concerned to assist in formulating
terms of reference for such review and evaluation groups.
(2) In the case of the International Bank for Reconstruction
and Development and the Asian Development Bank, the President
shall, acting through the United States representative to such organizations, propose and actively seek the establishment by the governing authorities of such organizations professionally qualified
groups of appropriate size for the purpose of providing an independent and continuous program of selective examination, review,
evaluation, and audits of the programs and activities of such organizations. Such proposal shall provide that such groups shall be established in accordance with such terms of reference as such governing authorities may prescribe, and that the reports of suchgroups on each examination, review, evaluation, or audit shall be
submitted directly to such governing authority for transmittal to
the representative of each individual member nation. Such proposal
shall further include a statement of auditing and reporting standards, as prepared by the Comptroller General of the United States,
for the consideration of the governing authority of the internationalorganization concerned to assist in formulating terms of reference
for such review and evaluation groups.
(3) * * * øRepealed—1981¿(f) The President is hereby authorized to permit United States
participation in the International Fertilizer Development Centerand is authorized to use any of the funds made available under thispart for the purpose of furnishing assistance to the Center on suchterms and conditions as he may determine.
(g) It is the sense of the Congress that the President should instruct the appropriate representatives of the United States to theUnited Nations to encourage the specialized agencies of the United
Nations to transfer the funding of technical assistance programs
carried out by such agencies to the United Nations Development
Program.
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Sec. 302(h) The President is authorized to permit the United States toparticipate in and to use any of the funds made available under
this part after the date of enactment of this subsection for the purpose of furnishing assistance (on such terms and conditions as the
President may determine) to the International Food Policy Research Institute.
SEC. 302. ø22 U.S.C. 2222¿ AUTHORIZATION.—(a)(1) There areauthorized to be appropriated to the President $270,000,000 for fiscal year 1986 and $236,084,000 for fiscal year 1987 for grants tocarry out the purposes of this chapter, in addition to funds available under other Acts for such purposes. Of the amount appropriated for each of the fiscal years 1986 and 1987 pursuant to theseauthorizations—(A) 59.65 percent shall be for the United Nations Development Program;(B) 19.30 percent shall be for the United Nations Children’s Fund;(C) 7.20 percent shall be for the International Atomic Energy Agency, except that these funds may be contributed tothat Agency only if the Secretary of State determines (and soreports to the Congress) that Israel is not being denied its
right to participate in the activities of that Agency;(D) 5.44 percent shall be for Organization of American
States development assistance programs;(E) 3.51 percent shall be for the United Nations Environment Program;(F) 0.70 percent shall be for the World Meteorological Organization;(G) 0.70 percent shall be for the United Nations Capital
Development Fund;(H) 0.35 percent shall be for the United Nations Education
and Training Program for Southern Africa;(I) 0.18 percent shall be for the United Nations Voluntary
Fund for the Decade for Women;(J) 0.07 percent shall be for the Convention on International Trade in Endangered Species;(K) 0.70 percent shall be for the World Food Program;(L) 0.18 percent shall be for the United Nations Institutefor Namibia;(M) 0.12 percent shall be for the United Nations TrustFund for South Africa;(N) 0.04 percent shall be for the United Nations Voluntary
Fund for Victims of Torture;(O) 0.07 percent shall be for the United Nations Industrial
Development Organization;(P) 0.55 percent shall be for the United Nations Development Program Trust Fund To Combat Poverty and Hunger inAfrica;(Q) 0.97 percent shall be for contributions to international
conventions and scientific organizations;(R) 0.18 percent for the United Nations Center on Human
Settlements (Habitat); and(S) 0.09 percent shall be for the World Heritage Fund.
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130(2) The Congress reaffirms its support for the work of theInter-American Commission on Human Rights. To permit such
Commission to better fulfill its function of insuring observance andrespect for human rights within this hemisphere, not less than$357,000 of the amount appropriated for fiscal year 1976 and$358,000 of the amount appropriated for fiscal year 1977, for contributions to the Organization of American States, shall be used
only for budgetary support for the Inter-American Commission on
Human Rights.
(3) * * * øRepealed—1981¿(b)(1) There is authorized to be appropriated to the President
for loans for Indus Basin Development to carry out the purposesof this section, in addition to funds available under this or any
other Act for such purposes, for use beginning in the fiscal year
1969, $61,220,000. Such amounts are authorized to remain available until expended.
(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, andfor use beginning in the fiscal year 1976, $27,000,000, whichamounts 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 amountwith, any funds made available under any other provisions of thisAct.
(c) None of the funds available to carry out this chapter shallbe contributed to any international organization or to any foreign
government or agency thereof to pay the costs of developing or operating any volunteer program of such organization, government,
or agency relating to the selection, training, and programing of volunteer manpower.
(d) TUBERCULOSIS VACCINE DEVELOPMENT PROGRAMS.—In addition to amounts otherwise available under this section, there areauthorized to be appropriated to the President such sums as may
be necessary for each of the fiscal years 2009 through 2013, whichshall be used for United States contributions to tuberculosis vaccine development programs, which may include the Aeras Global
TB Vaccine Foundation.
(e) * * * øRepealed—1978¿(f) * * * øRepealed—1978¿(g) * * * øRepealed—1978¿(h) * * * øRepealed—1978¿(i) In addition to amounts otherwise available under this section there are authorized to be appropriated for fiscal year 1976
$1,000,000 and for fiscal year 1977 $2,000,000 to be available only
for the International Atomic Energy Agency to be used for the purpose of strengthening safeguards and inspections relating to nuclear missile facilities and materials. Amounts appropriated under
this subsection are authorized to remain available until expended.
(j) In addition to amounts otherwise available under this section for such purposes, there are authorized to be appropriated to
the President $3,000,000 for fiscal year 1989 to be available only
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Sec. 303

for United States contributions to multilateral and regional drug
abuse control programs. Of the amount authorized to be appropriated by this subsection—(1) $2,000,000 shall be for a United States contribution to
the United Nations Fund for Drug Abuse Control;(2) $600,000 shall be for the Organization of American
States (OAS) Inter-American Drug Abuse Control Commission(CICAD) Legal Development Project, except that the proportion
which such amount bears to the total amount of contributions
to this specific project may not exceed the proportion which theUnited States contribution to the budget of the Organization ofAmerican States for that fiscal year bears to the total contributions to the budget of the Organization of American States forthat fiscal year; and(3) $400,000 shall be for the Organization of American
States (OAS) Inter-American Drug Abuse Control Commission(CICAD) Law Enforcement Training Project, except that the
proportion which such amount bears to the total amount ofcontributions to this specific project may not exceed the proportion which the United States contribution to the budget of theOrganization of American States for that fiscal year bears to
the total contributions to the budget of the Organization ofAmerican States for that fiscal year.
(k) In addition to amounts otherwise available under this section, there is authorized to be appropriated to the President suchsums as may be necessary for each of the fiscal years 2009 through2013 to be available only for United States contributions to the
GAVI Fund.
(l) In addition to amounts otherwise available under this section, there is authorized to be appropriated to the President suchsums as may be necessary for each of the fiscal years 2009 through2013 to be available only for United States contributions to theInternational AIDS Vaccine 23 Initiative.
(m) In addition to amounts otherwise available under this section, there are authorized to be appropriated to the President suchsums as may be necessary for each of the fiscal years 2009 through2013 to be available for United States contributions to malaria vaccine development programs, including the Malaria Vaccine Initiative of the Program for Appropriate Technologies in Health(PATH).
SEC. 303. ø22 U.S.C. 2223¿ INDUS BASIN DEVELOPMENT.—In
the event that funds made available under this Act (other thanpart II) are used by or under the supervision of the International
Bank for Reconstruction and Development in furtherance of the development of the Indus Basin through the program of cooperation
among South Asian and other countries of the free world, which isdesigned to promote economic growth and political stability inSouth Asia, such funds may be used in accordance with requirements, standards, or procedures established by the Bank concerning completion of plans and cost estimates and determinationof feasibility, rather than with requirements, standards, or proce23 Section 7034(f) of Division F of Public Law 111–117 provides for an amended to strike ‘‘Vaccine Fund’’ and insert ‘‘GAVI Alliance’’. The amendment was not executed because the proposed
text to be struck does not appear.

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dures concerning such matters set forth in this or other Acts; andsuch funds may also be used without regard to the provisions ofsection 901(b) of the Merchant Marine Act, 1936, as amended (46
U.S.C. 1241), whenever the President determines that such provisions cannot be fully satisfied without seriously impeding or preventing accomplishment of the purposes of such programs: Provided, That compensating allowances are made in the administration of other programs to the same or other areas to which the requirements of said section 901(b) are applicable.
SEC. 304. UNITED NATIONS PEACEKEEPING.— øRepealed—
1978¿
SEC. 305. ø22 U.S.C. 2225¿ INTEGRATION OF WOMEN.—The
President is requested to instruct each representative of the UnitedStates to each international organization of which the UnitedStates is a member (including but not limited to the International
Bank for Reconstruction and Development, the Asian Development
Bank, the Inter-American Development Bank, the International
Monetary Fund, the United Nations, and the Organization for Economic Cooperation and Development) to carry out their duties withrespect to such organizations in such a manner as to encourageand promote the integration of women into the national economies
of member and recipient countries and into professional and policymaking positions within such organizations, thereby improving thestatus of women. The President is further requested, in making
United States contributions to such organizations, to take into account the progress, or lack of progress, of such organizations in
adopting and implementing policies and practices which encourageand promote the integration of women into the national economies
of member and recipient countries, and into professional and policy-making positions within such organizations, in accordance with
the World Plan of Action of the Decade for Women.
SEC. 306. ø22 U.S.C. 2226¿ REPORTS ON INTERNATIONAL ORGANIZATIONS.—The annual reports to the Congress under section 2 of
the Act of September 21, 1950 (64 Stat. 902, 22 U.S.C. 262a), shallbe submitted within nine months after the end of the fiscal year
to which they relate.
SEC. 307. ø22 U.S.C. 2227¿ WITHHOLDING OF UNITED STATESPROPORTIONATE SHARE FOR CERTAIN PROGRAMS OF INTERNATIONALORGANIZATIONS.—(a) Notwithstanding any other provision of law,none of the funds authorized to be appropriated by this chapter
shall be available for the United States proportionate share for programs for Burma, North Korea, Syria, Iran, Cuba, or the Palestine
Liberation Organization or for projects whose purpose is to provide
benefits to the Palestine Liberation Organization or entities associated with it or at the discretion of the President, Communist countries listed in section 620(f) of this Act.
(b) The Secretary of State—(1) shall review, at least annually, the budgets and accounts of all international organizations receiving payments ofany funds authorized to be appropriated by this chapter; and(2) shall report to the appropriate committees of the Congress the amounts of funds expended by each such organization for the purposes described in subsection (a) and theJune 10, 2019

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Sec. 307amount contributed by the United States to each such organization.
(c)(1) Subject to paragraph (2), the limitations of subsection (a)shall not apply to contributions to the International Atomic Energy
Agency or the United Nations Children’s Fund (UNICEF).
(2)(A) Except as provided in subparagraph (B), with respect tofunds authorized to be appropriated by this chapter and available
for the International Atomic Energy Agency, the limitations of subsection (a) shall apply to programs or projects of such Agency in
Cuba.
(B)(i) Subparagraph (A) shall not apply with respect to programs or projects of the International Atomic Energy Agency thatprovide for the discontinuation, dismantling, or safety inspection of
nuclear facilities or related materials, or for inspections and similar
activities designed to prevent the development of nuclear weapons
by a country described in subsection (a).
(ii) Clause (i) shall not apply with respect to the Juragua Nuclear Power Plant near Cienfuegos, Cuba, or the Pedro Pi Nuclear
Research Center unless Cuba—(I) ratifies the Treaty on the Non-Proliferation of Nuclear
Weapons (21 UST 483) or the Treaty for the Prohibition of Nuclear Weapons in Latin America (commonly known as theTreaty of Tlatelolco);(II) negotiates full-scope safeguards of the International
Atomic Energy Agency not later than two years after ratification by Cuba of such Treaty; and(III) incorporates internationally accepted nuclear safety
standards.
(d)(1) Notwithstanding subsection (c), if the Secretary of State
determines that programs and projects of the International Atomic
Energy Agency in Iran are inconsistent with United States nuclear
nonproliferation and safety goals, will provide Iran with training orexpertise relevant to the development of nuclear weapons, or are
being used as a cover for the acquisition of sensitive nuclear technology, the limitations of subsection (a) shall apply to such programs and projects, and the Secretary of State shall so notify theappropriate congressional committees (as defined in section 3 of theForeign Relations Authorization Act, Fiscal Year 2003).
(2) A determination made by the Secretary of State underparagraph (1) shall be effective for the 1-year period beginning on
the date of the determination.
CHAPTER 4—SUPPORTING ASSISTANCE øREPEALED—1972¿
CHAPTER 5—CONTINGENCIES

NOTE.—Sec. 549(c) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, Fiscal Year 1994
(Public Law 103–87; 107 Stat. 961), provided the following under
section heading of ‘‘Special Authorities’’:‘‘(c) During fiscal year 1994, the President may use up to$50,000,000 under the authority of section 451 of the Foreign
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Assistance Act of 1961, notwithstanding the funding ceilingcontained in subsection (a) of that section.’’.
SEC. 451. ø22 U.S.C. 2261¿ CONTINGENCIES.—(a)(1) Notwithstanding any other provision of law, the President is authorized touse funds made available to carry out any provision of this Act(other than the provisions of chapter 1 of this part) in order to provide, for any unanticipated contingencies, assistance authorized bythis part in accordance with the provisions applicable to the furnishing of such assistance, except that the authority of this subsection may not be used to authorize the use of more than
$25,000,000 during any fiscal year.
(2) The President shall report promptly to the Speaker of theHouse of Representatives and to the Committee on Foreign Relations and the Committee on Appropriations of the Senate each time
he exercises the authority contained in this subsection.
(b) * * * øRepealed—1981¿(c) No part of this fund shall be used to pay for any gifts toany officials of any foreign government made heretofore or hereafter.
CHAPTER 6—CENTRAL AMERICA DEMOCRACY, PEACE, AND
DEVELOPMENT INITIATIVE
SEC. 461. ø22 U.S.C. 2271¿ STATEMENT OF POLICY.—(a) The
Congress finds that—(1) the building of democracy, the restoration of peace, theimprovement of living conditions, and the application of equaljustice under law in Central America are important to the interests of the United States and the community of American
States; and(2) the interrelated issues of social and human progress,
economic growth, political reform, and regional security must
be effectively dealt with to assure a democratic and economically and politically secure Central America.
(b)(1) The achievement of democracy, respect for human rights,
peace, and equitable economic growth depends primarily on the cooperation and the human and economic resources of the people andgovernments of Central America. The Congress recognizes that theUnited States can make a significant contribution to such peacefuland democratic development through a consistent and coherent policy which includes a long-term commitment of assistance. This policy should be designed to support actively—(A) democracy and political reform, including opening thepolitical process to all members of society;(B) full observance of internationally recognized humanrights, including free elections, freedom of the press, freedomof association, and the elimination of all human rights abuses;(C) leadership development, including training and educational programs to improve public administration and theadministration of justice;(D) land reform, reform in tax systems, encouragement ofprivate enterprise and individual initiative, creation of favorable investment climates, curbing corruption where it exists,and spurring balanced trade;
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Sec. 464(E) the establishment of the rule of law and an effective
judicial system; and(F) the termination of extremist violence by both the left
and the right as well as vigorous action to prosecute thoseguilty of crimes and the prosecution to the extent possible ofpast offenders.
(2) The policy described in paragraph (1) should also promote
equitable economic growth and development, including controllingthe flight of capital and the effective use of foreign assistance andadhering to approved programs for economic stabilization and fiscal
responsibility. Finally, this policy should foster dialog and negotiations—(A) to achieve peace based upon the objectives of democratization, reduction of armament, an end to subversion, and thewithdrawal of foreign military forces and advisers; and(B) to provide a security shield against violence and intimidation.
(3) It is the purpose of this chapter to establish the statutory
framework and to authorize the appropriations and financing necessary to carry out the policy described in this section.
(c) The Congress finds, therefore, that the people of the UnitedStates are willing to sustain and expand a program for economic
and military assistance in Central America if the recipient countries can demonstrate progress toward and a commitment to thesegoals.
SEC. 462. ø22 U.S.C. 2272¿ CONDITIONS ON FURNISHING ASSISTANCE.—The President shall ensure that assistance authorized
by this Act and the Arms Export Control Act to Central Americancountries is furnished in a manner which fosters demonstrated
progress toward and commitment to the objectives set forth in section 461. Where necessary to achieve this purpose, the President
shall impose conditions on the furnishing of such assistance. In carrying out this section, the President shall consult with the Congress in regard to progress toward the objectives set forth in section 461, and any conditions imposed on the furnishing of assistance in furtherance of those objectives.
SEC. 463. ø22 U.S.C. 2273¿ PEACE PROCESS IN CENTRAL AMERICA.—The Congress—(1) strongly supports the initiatives taken by theContadora group and the resulting Document of Objectives
which has been agreed to by Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua and which sets forth a framework for negotiating a peaceful settlement to the conflict andturmoil in the region; and(2) finds that the United States should provide such assistance and support as may be appropriate in helping to reachcomprehensive and verifiable final agreements, based on theDocument of Objectives, which will ensure peaceful and enduring solutions to the Central American conflicts.
SEC. 464. ø22 U.S.C. 2274¿ ECONOMIC ASSISTANCE COORDINATION.—(a) The Congress finds that participation by Central American countries in an effective forum for dialog on, and the continuous review and advancement of, Central America’s political, ecoJune 10, 2019

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nomic, and social development would foster cooperation between
the United States and Central American countries.
(b) It is the sense of the Congress that—(1) the President should enter into negotiations with thecountries of Central America to establish a Central American
Development Organization (hereafter in this section referred toas the ‘‘Organization’’) to help provide a continuous and coherent approach to the development of the Central American region; and(2) the establishment of the Organization should be based
upon the following principles:(A) Participation in the Organization should be open
to the United States, other donors, and those Central
American countries that commit themselves to, among
other things, respecting internationally recognized humanrights, building democracy, and encouraging equitable economic growth through policy reforms.
(B) The Organization should be structured to include
representatives from both the public and private sectors,
including representatives from the labor, agriculture, andbusiness communities.
(C) The Organization should meet periodically to carryout the functions described in subparagraphs (D) and (E)of this paragraph and should be supported by a limited
professional secretariat.
(D) The Organization should make recommendations
affecting Central American countries on such matters as—(i) political, economic, and social development objectives, including the strengthening of democratic pluralism and the safeguarding of internationally recognized human rights;(ii) mobilization of resources and external assistance needs; and(iii) reform of economic policies and structures.
(E) The Organization should have the capacity formonitoring country performance on recommendations
issued in accordance with subparagraph (D) of this paragraph and for evaluating progress toward meeting suchcountry objectives.
(F) To the maximum extent practicable, the UnitedStates should follow the recommendations of the Organization in disbursing bilateral economic assistance for any
Central American country. No more than 75 percent ofsuch United States assistance in any fiscal year should be
disbursed until the recommendations of the Organization
for that fiscal year have been made final and communicated to the donor countries. The limitation on disbursements contained in the preceding sentence should apply
only to recommendations made final and communicated todonor countries prior to the fourth quarter of such fiscal
year. The United States representative to the Organization
should urge other donor countries to similarly implement
the recommendations of the Organization.
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Sec. 461(G) The administrator of the agency primarily responsible for administering part I of this Act, or his designee,should represent the United States Government in the Organization and should carry out his functions in that capacity under the continuous supervision and general direction of the Secretary of State.
(c) Subject to subsection (d)(2), the President is authorized toparticipate in the Organization.
(d)(1) The administrator of the agency primarily responsible foradministering part I of this Act, under the supervision and direction of the Secretary of State, shall prepare a detailed proposal tocarry out this section and shall keep the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate fully and currently informed concerning the development of this proposal.
(2) The President shall transmit to the Committee on Foreign
Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a copy of the text of any agreement,
which he proposes to sign, that would provide for the establishmentof and United States participation in the Organization no less thansixty days prior to his signature. During that sixty-day period there
shall be full and formal consultations with and review by thosecommittees in accordance with procedures applicable to reprogramming notifications pursuant to section 634A of this Act.
SEC. 465. ø22 U.S.C. 2275¿ AUTHORIZATION FOR FISCAL YEARS
1988 AND 1989.—(a) In addition to amounts otherwise available forsuch purposes, there are authorized to be appropriated to the
President, for the purpose of furnishing nonmilitary assistance forCentral American countries, $1,200,000,000 for each of the fiscal
years 1988 and 1989, which are authorized to remain available
until expended.
(b) For the purpose of providing the assistance described insubsection (a), funds appropriated pursuant to the authorizationsin that subsection may be transferred by the President for obligation in accordance with the authorities of part I of this Act (including chapter 4 of part II), the Peace Corps Act, the Migration andRefugee Assistance Act of 1962, the United States Information and
Education Exchange Act of 1948, the Mutual Educational and Cultural Exchange Act of 1961, the National Endowment for Democracy Act, and the State Department Basic Authorities Act of 1956.
SEC. 466. ø22 U.S.C. 2276¿ DEFINITIONS.—For the purposes ofthis chapter, the term ‘‘Central American countries’’ includes
Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua,
Panama, and regional programs which benefit such countries.
CHAPTER 7—DEBT-FOR-NATURE EXCHANGES
SEC. 461. ø22 U.S.C. 2281¿ DEFINITION.—For purpose of thischapter, the term ‘‘debt-for-nature exchange’’ means the cancellation or redemption of the foreign debt of the government of a country in exchange for—(1) that government’s making available local currencies(including through the issuance of bonds) which are used only
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the environment in that country (as described in section 463);
or(3) a combination of assets and actions under both paragraphs (1) and (2).
SEC. 462. ø22 U.S.C. 2282¿ ASSISTANCE FOR COMMERCIAL DEBTEXCHANGES.—(a) The Administrator of the Agency for International Development is authorized to furnish assistance, in theform of grants on such terms and conditions as may be necessary,to nongovernmental organizations for the purchase on the open
market of discounted commercial debt of a foreign government of
an eligible country which will be canceled or redeemed under theterms of an agreement with that government as part of a debt-fornature exchange.
(b) Notwithstanding any other provision of law, a grantee (orany subgrantee) of the grants referred to in subsection (a) may retain, without deposit in the Treasury of the United States andwithout further appropriation by Congress, interest earned on theproceeds of any resulting debt-for-nature exchange pending the disbursements of such proceeds and interest for approved program
purposes, which may include the establishment of an endowment,
the income of which is used for such purposes.
SEC. 463. ø22 U.S.C. 2283¿ ELIGIBLE PROJECTS.—(a) The Administrator of the Agency for International Development shall seek
to ensure that debt-for-nature exchanges under this chapter support one or more of the following activities by either the host government, a local private conservation group, or a combination
thereof:(1) restoration, protection, or sustainable use of the world’s
oceans and atmosphere;(2) restoration, protection, or sustainable use of diverse
animal and plant species;(3) establishment, restoration, protection, and maintenanceof parks and reserves;(4) development and implementation of sound systems ofnatural resource management;(5) development and support of local conservation programs;(6) training programs to strengthen conservation institutions and increase scientific, technical, and managerial capabilities of individuals and organizations involved in conservation efforts;(7) efforts to generate knowledge, increase understanding,and enhance public commitment to conservation;(8) design and implementation of sound programs of landand ecosystem management; and(9) promotion of regenerative approaches in farming, forestry, fishing, and watershed management.
(b)(1) In cooperation with nongovernmental organizations, theAdministrator of the Agency for International Development shallseek to identify those areas, which because of an imminent threat,
are in particular need of immediate attention to prevent the lossof unique biological life or valuable ecosystem.
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pose such exchanges with the purpose of demonstrating to a large
number of governments the feasibility and benefits of sustainable
development.
SEC. 464. ø22 U.S.C. 2284¿ ELIGIBLE COUNTRIES.—In order for
a foreign country to be eligible to participate in a debt-for-natureexchange under this chapter, the Administrator of the Agency forInternational Development shall determine that—(1) the host country is fully committed to the long-term viability of the program or project that is to be undertaken
through the debt-for-nature exchange;(2) a long-term plan has been prepared by the host country, or private conservation group, which adequately provides
for the long-term viability of the program or project that is tobe undertaken through the debt-for-nature exchange or thatsuch a plan will be prepared in a timely manner; and(3) there is a government agency or a local nongovernmental organization, or combination thereof, in the host country with the capability, commitment, and record of environmental concern to oversee the long-term viability of the program or project that is to be undertaken through the debt-fornature exchange.
SEC. 465. ø22 U.S.C. 2285¿ TERMS AND CONDITIONS.—(a) The
terms and conditions for making grants under this chapter shall bedeemed to be fulfilled upon final approval by the Administrator of
the Agency for International Development of the debt-for-natureexchange, a certification by the nongovernmental organization thatthe host government has accepted the terms of the exchange, andthat an agreement has been reached to cancel the commercial debt
in an agreed upon fashion.
(b) Grants made under this section are intended to complement, and not substitute for, assistance otherwise available toa foreign country under this Act or any other provision of law.
(c) The United States Government is prohibited from accepting
title or interest in any land in a foreign country as a condition on
the debt exchange.
SEC. 466. ø22 U.S.C. 2286¿ PILOT PROGRAM FOR SUB-SAHARAN
AFRICA.—(a) The Administrator of the Agency for International Development, in cooperation with nongovernmental conservation organizations, shall invite the government of each country in sub-Saharan Africa to submit a list of those areas of severely degraded national resources which threaten human survival and well-being andthe opportunity for future economic growth or those areas of biological or ecological importance within the territory of that country.
(b) The Administrator of the Agency for International Development shall assess the list submitted by each country under subsection (a) and shall seek to reach agreement with the host country
for the restoration and future sustainable use of those areas.
(c)(1) The Administrator of the Agency for International Development is authorized to make grants, on such terms and conditions
as may be necessary, to nongovernmental organizations for thepurchase on the open market of discounted commercial debt of aforeign government of an eligible sub-Saharan country in exchange
for commitments by that government to restore natural resources
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identified by the host country under subsection (a) or for commitments to develop plans for sustainable use of such resources.
(2) Notwithstanding any other provision of law, a grantee (orany subgrantee) of the grants referred to in section (a) may retain,
without deposit in the Treasury of the United States and without
further appropriation by Congress, interest earned on the proceedsof any resulting debt-for-nature exchange pending the disbursements of such proceeds and interest for approved program purposes, which may include the establishment of an endowment, theincome of which is used for such purposes.
CHAPTER 8—INTERNATIONAL NARCOTICS CONTROLNOTE.—Section 6(a) of the International Narcotics Control Act of1992 (Public Law 102–583; 106 Stat. 4932; 22 U.S.C. 2291h note)
provided the following change in statutory references:‘‘(a) STATUTORY REFERENCES TO ANNUAL REPORTS, CERTIFICATIONS, AND DEFINITIONS.—After September 30, 1994, anyreference in any provision of law to section 489 or 490 of theForeign Assistance Act of 1961 shall be deemed to be a reference
to the corresponding provision of section 489A or 490A, respectively, unless the context requires otherwise. Any reference inany provision of law enacted before the date of enactment of thisAct to section 481(e) or section 481(i) of that Act shall bedeemed to be a reference to section 489 or section 481(e) (asamended by subsection (b)(3) of this section), respectively; andany reference in any provision of law enacted before the date ofenactment of this Act to section 481(h) of that Act shall bedeemed, as of October 1, 1992, to be a reference to section 490.’’.
Sec. 8 of that Act provided the following waiver for fiscal years
1992 through 1994:‘‘SEC. 8. WAIVER OF RESTRICTIONS FOR NARCOTICS-RELATED ECONOMIC ASSISTANCE.
‘‘For fiscal years 1992 through 1994, narcotics-related assistance under part I of the Foreign Assistance Act of 1961 may
be provided notwithstanding any provision of law that restricts
assistance to foreign countries (other than section 490(e) of thatAct) if, at least 15 days before obligating funds for such assistance, the President notifies the appropriate congressional committees in accordance with the procedures applicable to reprogramming notifications under section 634A of that Act.’’.
SEC. 481. ø22 U.S.C. 2291¿ POLICY, GENERAL AUTHORITIES, COORDINATION, FOREIGN POLICE ACTIONS, DEFINITIONS, AND
OTHER PROVISIONS.
(a) POLICY AND GENERAL AUTHORITIES.—(1) STATEMENTS OF POLICY.—(A) International narcotics

trafficking poses an unparalleled transnational threat in today’s world, and its suppression is among the most importantforeign policy objectives of the United States.
(B) Under the Single Convention on Narcotic Drugs, 1961,
and under the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, the parties
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are required to criminalize certain drug-related activities, provide appropriately severe penalties, and cooperate in the extradition of accused offenders.
(C) International narcotics control programs should include, as priority goals, the suppression of the illicit manufacture of and trafficking in narcotic and psychotropic drugs,
money laundering, and precursor chemical diversion, and theprogressive elimination of the illicit cultivation of the crops
from which narcotic and psychotropic drugs are derived.
(D) International criminal activities, particularly international narcotics trafficking, money laundering, and corruption, endanger political and economic stability and democratic
development, and assistance for the prevention and suppression of international criminal activities should be a priority for
the United States.
(E) The international community should provide assistance, where appropriate, to those producer and transit countries which require assistance in discharging these primary obligations.
(F) The objective of the United States in dealing with the
problem of international money laundering is to ensure thatcountries adopt comprehensive domestic measures againstmoney laundering and cooperate with each other in narcotics
money laundering investigations, prosecutions, and related forfeiture actions.
(G) Effective international cooperation is necessary to control the illicit cultivation, production, and smuggling of, trafficking in, and abuse of narcotic and psychotropic drugs.
(2) In order to promote such cooperation, the President is authorized to conclude agreements, including reciprocal maritime
agreements, with other countries to facilitate control of the production, processing, transportation, and distribution of narcotics analgesics, including opium and its derivatives, other narcotic and psychotropic drugs, and other controlled substances.
(3) In order to promote international cooperation in combatinginternational trafficking in illicit narcotics, it shall be the policy of
the United States to use its voice and vote in multilateral development banks to promote the development and implementation in the
major illicit drug producing countries of programs for the reductionand eventual eradication of narcotic drugs and other controlled
substances, including appropriate assistance in conjunction with effective programs of illicit crop eradication.
(4) Notwithstanding any other provision of law, the President
is authorized to furnish assistance to any country or internationalorganization, or such terms and conditions as he may determine,for the control of narcotic and psychotropic drugs and other controlled substances, or for other anticrime purposes.
(b) COORDINATION OF ALL UNITED STATES ANTINARCOTICS ASSISTANCE TO FOREIGN COUNTRIES.—(1) RESPONSIBILITY OF SECRETARY OF STATE.—Consistent
with subtitle A of title I of the Anti-Drug Abuse Act of 1988,
the Secretary of State shall be responsible for coordinating all
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142

port international efforts to combat illicit narcotics production
or trafficking.
(2) RULE OF CONSTRUCTION.—Nothing contained in thissubsection or section 489(b) shall be construed to limit or impair the authority or responsibility of any other Federal agency
with respect to law enforcement, domestic security operations,or intelligence activities as defined in Executive Order 12333.
(c) PARTICIPATION IN FOREIGN POLICE ACTIONS.—(1) PROHIBITION ON EFFECTING AN ARREST.—No officer or
employee of the United States may directly effect an arrest in
any foreign country as part of any foreign police action with respect to narcotics control efforts, notwithstanding any otherprovision of law.
(2) PARTICIPATION IN ARREST ACTIONS.—Paragraph (1) does
not prohibit an officer or employee of the United States, withthe approval of the United States chief of mission, from being
present when foreign officers are effecting an arrest or from assisting foreign officers who are effecting an arrest.
(3) EXCEPTION FOR EXIGENT, THREATENING CIRCUMSTANCES.—Paragraph (1) does not prohibit an officer or
employee from taking direct action to protect life or safety if
exigent circumstances arise which are unanticipated and whichpose an immediate threat to United States officers or employees, officers or employees of a foreign government, or membersof the public.
(4) EXCEPTION FOR MARITIME LAW ENFORCEMENT.—With
the agreement of a foreign country, paragraph (1) does not
apply with respect to maritime law enforcement operations in
the territorial sea or archipelagic waters of that country.
(5) INTERROGATIONS.—No officer or employee of the UnitedStates may interrogate or be present during the interrogationof any United States person arrested in any foreign country
with respect to narcotics control efforts without the writtenconsent of such person.
(6) EXCEPTION FOR STATUS OF FORCES ARRANGEMENTS.—This subsection does not apply to the activities of the UnitedStates Armed Forces in carrying out their responsibilities
under applicable Status of Forces Arrangements.
(d) USE OF HERBICIDES FOR AERIAL ERADICATION.—(1) MONITORING.—The President, with the assistance ofappropriate Federal agencies, shall monitor any use under thischapter of a herbicide for aerial eradication in order to determine the impact of such use on the environment and on thehealth of individuals.
(2) ANNUAL REPORTS.—In the annual report required bysection 489(a), the President shall report on the impact on theenvironment and the health of individuals of the use under
this chapter of a herbicide for aerial eradication.
(3) REPORT UPON DETERMINATION OF HARM TO ENVIRONMENT OR HEALTH.—If the President determines that any such
use is harmful to the environment or the health of individuals,
the President shall immediately report that determination to
the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate,
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together with such recommendations as the President deems
appropriate.
(e) DEFINITIONS.—For purposes of this chapter and other provisions of this Act relating specifically to international narcotics matters—(1) the term ‘‘legal and law enforcement measures’’means—(A) the enactment and implementation of laws andregulations or the implementation of existing laws andregulations to provide for the progressive control, reduction, and gradual elimination of the illicit cultivation, production, processing, transportation, and distribution of
narcotic drugs and other controlled substances; and(B) the effective organization, staffing, equipping,funding, and activation of those governmental authorities
responsible for narcotics control;(2) the term ‘‘major illicit drug producing country’’ meansa country in which—(A) 1,000 hectares or more of illicit opium poppy is cultivated or harvested during a year;(B) 1,000 hectares or more of illicit coca is cultivatedor harvested during a year; or(C) 5,000 hectares or more of illicit cannabis is cultivated or harvested during a year, unless the President
determines that such illicit cannabis production does not
significantly affect the United States;(3) the term ‘‘narcotic and psychotropic drugs and othercontrolled substances’’ has the same meaning as is given by
any applicable international narcotics control agreement or domestic law of the country of countries concerned;(4) the term ‘‘United States assistance’’ means—(A) any assistance under this Act 24(including programs under title IV of chapter 2, relating to the Overseas
Private Investment Corporation), other than—(i) assistance under this chapter,(ii) any other narcotics-related assistance under
this part (including chapter 4 of part II), but any suchassistance provided under this clause shall be subject
to the prior notification procedures applicable toreprogrammings pursuant to section 634A of this Act,(iii) disaster relief assistance, including any assistance under chapter 9 of this part,(iv) assistance which involves the provision of food(including monetization of food) or medicine, and(v) assistance for refugees;
24 Section 1470(j)(3) of the BUILD Act of 2018 (division F of Public Law 115-254) provides for
an amendment to strike ‘‘(including programs under title IV of chapter 2, relating to the Overseas Private Investment Corporation)’’ and insert ‘‘(and any support under title II of the Better
Utilization of Investments Leading to Development Act of 2018, relating to the United States
International Development Finance Corporation)’’. Section 1470(w) of such Act states ‘‘The
amendments made by this section shall take effect at the end of the transition period.’’. Section
1461(2) of such Act defines the term ‘‘transition period’’ as follows: ‘‘The term ‘transition period’means the period—(A) beginning on the date of the enactment of this Act; and (B) ending on
the effective date of the reorganization plan required by section 1462(e).’’. For details relating
to the reorganization plan, see section 1462(e) of such Act.

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144(B) sales, or financing on any terms, under the Arms
Export Control Act;(C) the provision of agricultural commodities, otherthan food, under the Food for Peace Act; and(D) financing under the Export-Import Bank Act of1945;(5) the term ‘‘major drug-transit country’’ means a country—(A) that is a significant direct source of illicit narcoticor psychotropic drugs or other controlled substances significantly affecting the United States; or(B) through which are transported such drugs or substances;; 25(6) the term ‘‘precursor chemical’’ has the same meaning
as the term ‘‘listed chemical’’ has under paragraph (33) of section 102 of the Controlled Substances Act (21 U.S.C. 802(33));(7) the term ‘‘major money laundering country’’ means acountry whose financial institutions engage in currency transactions involving significant amounts of proceeds from international narcotics trafficking; and(8) the term ‘‘appropriate congressional committees’’ means
the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate.
SEC. 482. ø22 U.S.C. 2291a¿ AUTHORIZATION.—(a)(1) To carryout the purposes of section 481, there are authorized to be appropriated to the President $147,783,000 for fiscal year 1993 and$171,500,000 for fiscal year 1994.
(2) Amounts appropriated under this subsection are authorized
to remain available until expended.
(b) PROCUREMENT OF WEAPONS AND AMMUNITION.—(1) PROHIBITION.—Except as provided in paragraph (2),funds made available to carry out this chapter shall not bemade available for the procurement of weapons or ammunition.
(2) EXCEPTIONS.—Paragraph (1) shall not apply with respect to funds for the procurement of—(A) weapons or ammunition provided only for the defensive arming of aircraft used for narcotics-related purposes, or(B) firearms and related ammunition provided only for
defensive purposes to employees or contract personnel ofthe Department of State engaged in activities under thischapter,
if, at least 15 days before obligating those funds, the President
notifies the appropriate congressional committees in accordance with the procedures applicable to reprogramming notifications under section 634A.
(c) CONTRIBUTIONS AND REIMBURSEMENT.—(1) To ensure local
commitment to the activities assisted under this chapter, a country
receiving assistance under this chapter should bear an appropriate
share of the costs of any narcotics control program, project, or ac25 So in original.

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tivity for which such assistance is to be provided. A country may
bear such costs on an ‘‘in kind’’ basis.
(2)(A) The President is authorized to accept contributions fromforeign governments to carry out the purposes of this chapter. Suchcontributions shall be deposited as an offsetting collection to theapplicable appropriation account and may be used under the sameterms and conditions as funds appropriated pursuant to this chapter.
(B) At the time of submission of the annual congressional presentation documents required by section 634(a), the President shallprovide a detailed report on any contributions received in the preceding fiscal year, the amount of such contributions, and the purposes for which such contributions were used.
(3) The President is authorized to provide assistance under thischapter on a reimbursable basis. Such reimbursements shall be deposited as an offsetting collection to the applicable appropriationand may be used under the same terms and conditions as funds appropriated pursuant to this chapter.
(d) ADMINISTRATIVE ASSISTANCE.—(1) Except as provided inparagraph (2), personnel funded pursuant to this section are authorized to provide administrative assistance to personnel assigned
to the bureau designated by the Secretary of State to replace the
Bureau for International Narcotics Matters.
(2) Paragraph (1) shall not apply to the extent that it would
result in a reduction in funds available for antinarcotics assistanceto foreign countries.
(e) ADVANCE NOTIFICATION OF TRANSFER OF SEIZED ASSETS.—The President shall notify the appropriate congressional committees at least 10 days prior to any transfer by the United States
Government to a foreign country for narcotics control purposes ofany property or funds seized by or otherwise forfeited to the UnitedStates Government in connection with narcotics-related activity.
(f) TREATMENT OF FUNDS.—Funds transferred to and consolidated with funds appropriated pursuant to this chapter may bemade available on such terms and conditions as are applicable tofunds appropriated pursuant to this chapter. Funds so transferredor consolidated shall be apportioned directly to the bureau within
the Department of State responsible for administering this chapter.
(g) EXCESS PROPERTY.—For purposes of this chapter, the Secretary of State may use the authority of section 608, without regard to the restrictions of such section, to receive nonlethal excess
property from any agency of the United States Government for the
purpose of providing such property to a foreign government under
the same terms and conditions as funds authorized to be appropriated for the purposes of this chapter.
SEC. 483. ø22 U.S.C. 2291b¿ PROHIBITION ON USE OF FOREIGNASSISTANCE FOR REIMBURSEMENTS FOR DRUG CROP ERADICATIONS.—Funds made available to carry out this Act may not be
used to reimburse persons whose illicit drug crops are eradicated.
SEC. 484. ø22 U.S.C. 2291c¿ REQUIREMENTS RELATING TO AIRCRAFTAND OTHER EQUIPMENT.
(a) RETENTION OF TITLE TO AIRCRAFT.—(1) IN GENERAL.—(A) Except as provided in paragraph (2),any aircraft made available to a foreign country under thisJune 10, 2019

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146

chapter, or made available to a foreign country primarily fornarcotics-related purposes under any other provision of law,shall be provided only on a lease or loan basis.
(B) Subparagraph (A) applies to aircraft made available atany time after October 27, 1986 (which was the date of enactment of the International Narcotics Control Act of 1986).
(2) EXCEPTIONS.—(A) Paragraph (1) shall not apply to theextent that—(i) the application of that paragraph with respect toparticular aircraft would be contrary to the national interest of the United States; and(ii) the President notifies the appropriate congressional committees in accordance with the procedures applicable to reprogramming notifications under section 634A.
(B) Paragraph (1) does not apply with respect to aircraft
made available to a foreign country under any provision of law
that authorizes property that has been civilly or criminally forfeited to the United States to be made available to foreigncountries.
(3) ASSISTANCE FOR LEASING OF AIRCRAFT.—(A) For purposes of satisfying the requirement of paragraph (1), funds
made available for the ‘‘Foreign Military Financing Program’’under section 23 of the Arms Export Control Act may be used
to finance the leasing of aircraft under chapter 6 of that Act.
(B) Section 61(a)(3) of that Act shall not apply with respect
to leases so financed; rather the entire cost of any such lease(including any renewals) shall be an initial, one time paymentof the amount which would be the sales price for the aircraft
if they were sold under section 21(a)(1)(B) or section 22 of that
Act (as appropriate).
(C) To the extent that aircraft so leased were acquired
under chapter 5 of that Act, funds used pursuant to this paragraph to finance such leases shall be credited to the Special
Defense Acquisition Fund under chapter 5 of that Act (excluding the amount of funds that reflects the charges described in
section 21(e)(1) of that Act). The funds described in the parenthetical clause of the preceding sentence shall be available
for payments consistent with sections 37(a) and 43(b) of that
Act.
(b) PERMISSIBLE USES OF AIRCRAFT AND OTHER EQUIPMENT.—
The President shall take all reasonable steps to ensure that aircraft and other equipment made available to foreign countries
under this chapter are used only in ways that are consistent withthe purposes for which such equipment was made available.
(c) REPORTS.—In the reports submitted pursuant to section
489(a), the President shall discuss—(1) any evidence indicating misuse by a foreign country of
aircraft or other equipment made available under this chapter,and(2) the actions taken by the United States Government toprevent future misuse of such equipment by that foreign country.
SEC. 485. ø22 U.S.C. 2291d¿ RECORDS OF AIRCRAFT USE.—(a)REQUIREMENT TO MAINTAIN RECORDS.—The President shall mainJune 10, 2019

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tain detailed records on the use of any aircraft made available toa foreign country under this chapter, including aircraft made available before the enactment of this section.
(b) CONGRESSIONAL ACCESS TO RECORDS.—The President shallmake the records maintained pursuant to subsection (a) available
to the Congress upon a request of the Chairman of the Committee
on Foreign Affairs of the House of Representatives or the Chairman of the Committee on Foreign Relations of the Senate.
SEC. 486. ø22 U.S.C. 2291e¿ REALLOCATION OF FUNDS WITHHELD FROMCOUNTRIES WHICH FAIL TO TAKE ADEQUATE STEPS TO
HALT ILLICIT DRUG PRODUCTION OR TRAFFICKING.

If any funds authorized to be appropriated for any fiscal year
for assistance under this Act are not used for assistance for thecountry for which those funds were allocated because of the requirements of section 490 or any other provision of law requiring
the withholding of assistance for countries that have not taken adequate steps to halt illicit drug production or trafficking, the President shall use those funds for additional assistance for those countries which have met their illicit drug eradication targets or haveotherwise taken significant steps to halt illicit drug production ortrafficking, as follows:(1) INTERNATIONAL NARCOTICS CONTROL ASSISTANCE.—
Those funds may be transferred to and consolidated with thefunds appropriated to carry out this chapter in order to provide
additional narcotics control assistance for those countries.
Funds transferred under this paragraph may only be used toprovide increased funding for activities previously justified to
the Congress. Transfers may be made under this paragraphwithout regard to the 20-percent increase limitation contained
in section 610(a). This paragraph does not apply with respect
to funds made available for assistance under the Arms Export
Control Act.
(2) OTHER ASSISTANCE.—Any such funds not used underparagraph (1) shall be reprogrammed within the account for
which they were appropriated (subject to the regular reprogramming procedures under section 634A) in order to provide additional assistance for those countries.
SEC. 487. ø22 U.S.C. 2291f¿ PROHIBITION ON ASSISTANCE TO
DRUG TRAFFICKERS.
(a) PROHIBITION.—The President shall take all reasonable
steps to ensure that assistance under this Act and the Arms Export
Control Act is not provided to or through any individual or entitythat the President knows or has reason to believe—(1) has been convicted of a violation of, or a conspiracy toviolate, any law or regulation of the United States, a State or
the District of Columbia, or a foreign country relating to narcotic or psychotropic drugs or other controlled substances; or(2) is or has been an illicit trafficker in any such controlled
substance or is or has been a knowing assistor, abettor, conspirator, or colluder with others in the illicit trafficking in any
such substance.
(b) REGULATIONS.—The President shall issue regulations specifying the steps to be taken in carrying out this section.
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148(c) CONGRESSIONAL REVIEW OF REGULATIONS.—Regulations
issued pursuant to subsection (b) shall be submitted to the Congress before they take effect.
SEC. 488. ø22 U.S.C. 2291g¿ LIMITATIONS ON ACQUISITION OF REALPROPERTY AND CONSTRUCTION OF FACILITIES.
(a) ACQUISITION OF REAL PROPERTY.—(1) PROHIBITION.—Funds made available to carry out thischapter may not be used to acquire (by purchase or othermeans) any land or other real property for use by foreign military, paramilitary, or law enforcement forces.
(2) EXCEPTION FOR CERTAIN LEASES.—Paragraph (1) shallnot apply to the acquisition of real property by lease of a duration not to exceed 2 years.
(b) CONSTRUCTION OF FACILITIES.—(1) LIMITATION.—Funds made available to carry out thischapter may not be used for construction of facilities for use byforeign military, paramilitary, or law enforcement forces unless, at least 15 days before obligating funds for such construction, the President notifies the appropriate congressional committees in accordance with procedures applicable to reprogramming notifications under section 634A.
(2) EXCEPTION.—Paragraph (1) shall not apply to the construction of facilities which would require the obligation of lessthan $750,000 under this chapter.
SEC. 489. ø22 U.S.C. 2291h¿ REPORTING REQUIREMENTS.
(a) INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT.—

Not later than March 1 of each year, the President shall transmit
to the Speaker of the House of Representatives, and to the Committee on Foreign Relations of the Senate, a report containing thefollowing:(1) For each country that received assistance under thischapter for either of the 2 preceding fiscal years, a report on
the extent to which the country has—(A) met the goals and objectives of the United Nations
Convention Against Illicit Traffic in Narcotic Drugs andPsychotropic Substances, including action on such issues
as illicit cultivation, production, distribution, sale, transport, and financing, and money laundering, asset seizure,extradition, mutual legal assistance, law enforcement andtransit cooperation, precursor chemical control, and demand reduction;(B) accomplished the goals described in an applicablebilateral narcotics agreement with the United States or amultilateral agreement; and(C) taken legal and law enforcement measures to prevent and punish public corruption, especially by senior
government officials, that facilitates the production, processing, or shipment of narcotic and psychotropic drugs andother controlled substances, or that discourages the investigation or prosecution of such acts.
(2)(A) A description of the policies adopted, agreements
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national narcotics control, including appropriate informationon the status of negotiations between the United States andother countries on updated extradition treaties, mutual legal
assistance treaties, precursor chemical controls, money laundering, and agreements pursuant to section 2015 of the International Narcotics Act of 1986 (relating to interdiction procedures for vessels of foreign registry).
(B) Information on multilateral and bilateral strategies
with respect to money laundering pursued by the Departmentof State, the Department of Justice, the Department of theTreasury, and other relevant United States Government agencies, either collectively or individually, to ensure the cooperation of foreign governments with respect to narcotics-relatedmoney laundering and to demonstrate that all United States
Government agencies are pursuing a common strategy with respect to major money laundering countries. The report shall include specific detail to demonstrate that all United States Government agencies are pursuing a common strategy with respect
to achieving international cooperation against money laundering and are pursuing a common strategy with respect tomajor money laundering countries, including a summary ofUnited States objectives on a country-by-country basis.
(3) The identity of those countries which are—(A) major illicit drug producing countries or major
drug-transit countries as determined under section 490(h);(B) major sources of precursor chemicals used in the
production of illicit narcotics; or(C) major money laundering countries.
(4) In addition, for each country identified pursuant toparagraph (3), the following:(A) A description of the plans, programs, and timetables adopted by such country, including efforts to meetthe objectives of the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, and a discussion of the adequacy of the legal andlaw enforcement measures taken and the accomplishments
achieved in accord with those plans.
(B) Whether as a matter of government policy or practice, such country encourages or facilitates the illicit production or distribution of narcotic or psychotropic drugs orother controlled substances or the laundering of proceedsfrom illegal drug transactions; and whether any senior official of the government of such country engages in, encourages, or facilitates the illicit production or distribution ofsuch drugs or substances, or the laundering of proceedsfrom illegal drug transactions.
(5) In addition, for each country identified pursuant toparagraph (3)(A) or (3)(B), a detailed status report, with suchinformation as can be reliably obtained, on the narcotic or psychotropic drugs or other controlled substances which are being
cultivated, produced, or processed in or transported throughsuch country, noting significant changes in conditions, such asincreases or decreases in the illicit cultivation and manufacture of and traffic in such drugs and substances.
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150(6) In addition, for those countries identified pursuant toparagraph (3)(C)—(A) which countries are parties to international agreements on a method for maintaining records of transactionsof an established list of precursor and essential chemicals;(B) which countries have established a procedure bywhich such records may be made available to UnitedStates law enforcement authorities; and(C) which countries have enacted national chemical
control legislation which would impose specific recordkeeping and reporting requirements for listed chemicals,
establish a system of permits or declarations for imports
and exports of listed chemicals, and authorize government
officials to seize or suspend shipments of listed chemicals.
(7) In addition, for those countries identified pursuant toparagraph (3)(D) 26 the following:(A)(i) Which countries have financial institutions engaging in currency transactions involving international
narcotics trafficking proceeds that include significant
amounts of United States currency or currency derived
from illegal drug sales in the United States or that otherwise significantly affect the United States;(ii) which countries identified pursuant to clause (i)have not reached agreement with the United States authorities on a mechanism for exchanging adequate records
in connection with narcotics investigations and proceedings; and(iii) which countries identified pursuant to clause (ii)—(I) are negotiating in good faith with the UnitedStates to establish such a record-exchange mechanism,or(II) have adopted laws or regulations that ensure
the availability to appropriate United States Government personnel and those of other governments of adequate records in connection with narcotics investigations and proceedings.
(B) Which countries—(i) have ratified the United Nations Convention
Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances and are taking steps to implementthat Convention and other applicable agreements andconventions such as the recommendations of the Financial Action Task Force, the policy directive of theEuropean Community, the legislative guidelines of theOrganization of American States, and other similar
declarations; and(ii) have entered into bilateral agreements for theexchange of information on money-laundering withcountries other than the United States.
(C) Findings on each country’s adoption of law andregulations considered essential to prevent narcotics-re26 The reference to ‘‘paragraph (3)(D)’’ in subsection (a)(7) probably should be a reference to‘‘paragraph (3)(C)’’. See amendment made by section 101(f)(1)(B)(ii) of P.L. 103–447.

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Sec. 489

lated money laundering. Such findings shall include
whether a country has—(i) criminalized narcotics money laundering;(ii) required banks and other financial institutions
to know and record the identity of customers engaging
in significant transactions, including the recording oflarge currency transactions at thresholds appropriate
to that country’s economic situation;(iii) required banks and other financial institutions to maintain, for an adequate time, records necessary to reconstruct significant transactions throughfinancial institutions in order to be able to respondquickly to information requests from appropriate government authorities in narcotics-related money laundering cases;(iv) required or allowed financial institutions toreport suspicious transactions;(v) established systems for identifying, tracing,
freezing, seizing, and forfeiting narcotics-related assets;(vi) enacted laws for the sharing of seized narcotics assets with other governments;(vii) cooperated, when requested, with appropriate
law enforcement agencies of other governments investigating financial crimes related to narcotics; and(viii) addressed the problem on internationaltransportation of illegal-source currency and monetary
instruments.
The report shall also detail instances of refusals to cooperatewith foreign governments, and any actions taken by the UnitedStates Government and any international organization to address such obstacles, including the imposition of sanctions or
penalties.
(8)(A) A separate section that contains the following:(i) An identification of the five countries that exported
the largest amount of pseudoephedrine, ephedrine, andphenylpropanolamine (including the salts, optical isomers,
or salts of optical isomers of such chemicals, and also including any products or substances containing such chemicals) during the preceding calendar year.
(ii) An identification of the five countries that imported the largest amount of the chemicals described inclause (i) during the preceding calendar year and have thehighest rate of diversion of such chemicals for use in theillicit production of methamphetamine (either in that country or in another country).
(iii) An economic analysis of the total worldwide production of the chemicals described in clause (i) as compared to the legitimate demand for such chemicals worldwide.
(B) The identification of countries that imported the largest amount of chemicals under subparagraph (A)(ii) shall bebased on the following:
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152(i) An economic analysis that estimates the legitimate
demand for such chemicals in such countries as comparedto the actual or estimated amount of such chemicals thatis imported into such countries.
(ii) The best available data and other information regarding the production of methamphetamine in such countries and the diversion of such chemicals for use in the
production of methamphetamine.
(b) ANNUAL REPORTS ON ASSISTANCE.—(1) IN GENERAL.—At the time that the report required bysubsection (a) is submitted each year, the Secretary of State,in consultation with appropriate United States Government
agencies, shall report to the appropriate committees of theCongress on the assistance provided or proposed to be provided
by the United States Government during the preceding fiscal
year, the current fiscal year, and the next fiscal year to support international efforts to combat illicit narcotics production
or trafficking.
(2) INFORMATION TO BE INCLUDED.—Each report pursuant
to this subsection shall—(A) specify the amount and nature of the assistanceprovided or to be provided;(B) include, for each country identified in subsection(a)(3)(A), information from the Drug Enforcement Administration, the Customs Service, and the Coast Guard describing in detail—(i) the assistance provided or to be provided tosuch country by that agency, and(ii) the assistance provided or to be provided tothat agency by such country,with respect to narcotic control efforts during the preceding fiscal year, the current fiscal year, and the next fiscal year; and(C) list all transfers, which were made by the UnitedStates Government during the preceding fiscal year, to aforeign country for narcotics control purposes of any property seized by or otherwise forfeited to the United States
Government in connection with narcotics-related activity,
including an estimate of the fair market value and physical condition of each item of property transferred.
øSection 489A repealed by section 1112(a) of Public Law 104–
66 (109 Stat. 723).¿
SEC. 490. ø22 U.S.C. 2291j¿ ANNUAL CERTIFICATION PROCEDURES.
(a) WITHHOLDING OF BILATERAL ASSISTANCE AND OPPOSITIONTO MULTILATERAL DEVELOPMENT ASSISTANCE.—(1) BILATERAL ASSISTANCE.—Fifty percent of the UnitedStates assistance allocated each fiscal year in the report required by section 653 for each major illicit drug producing
country, major drug-transit country, or country identified pursuant to clause (i) or (ii) of section 489(a)(8)(A) of this Act shallbe withheld from obligation and expenditure, except as provided in subsection (b). This paragraph shall not apply with respect to a country if the President determines that its applicaJune 10, 2019

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Sec. 490

tion to that country would be contrary to the national interestof the United States, except that any such determination shallnot take effect until at least 15 days after the President submits written notification of that determination to the appropriate congressional committees in accordance with the procedures applicable to reprogramming notifications under section
634A.
(2) MULTILATERAL ASSISTANCE.—The Secretary of theTreasury shall instruct the United States Executive Director ofeach multilateral development bank to vote, on and after
March 1 of each year, against any loan or other utilization of
the funds of their respective institution to or for any major illicit drug producing country or major drug-transit country (asdetermined under subsection (h)) or country identified pursuant to clause (i) or (ii) of section 489(a)(8)(A) of this Act, except
as provided in subsection (b). For purposes of this paragraph,
the term ‘‘multilateral development bank’’ means the International Bank for Reconstruction and Development, the International Development Association, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, and the European Bank for Reconstruction andDevelopment.
(b) CERTIFICATION PROCEDURES.—(1) WHAT MUST BE CERTIFIED.—Subject to subsection (d),the assistance withheld from a country pursuant to subsection(a)(1) may be obligated and expended, and the requirement ofsubsection (a)(2) to vote against multilateral development bankassistance to a country shall not apply, if the President determines and certifies to the Congress, at the time of the submission of the report required by section 489(a), that—(A) during the previous year the country has cooperated fully with the United States, or has taken adequate
steps on its own, to achieve full compliance with the goals
and objectives established by the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances; or(B) for a country that would not otherwise qualify forcertification under subparagraph (A), the vital national interests of the United States require that the assistancewithheld pursuant to subsection (a)(1) be provided andthat the United States not vote against multilateral development bank assistance for that country pursuant to subsection (a)(2).
(2) CONSIDERATIONS REGARDING COOPERATION.—In making
the determination described in paragraph (1)(A), the President
shall consider the extent to which the country has—(A) met the goals and objectives of the United Nations
Convention Against Illicit Traffic in Narcotic Drugs andPsychotropic Substances, including action on such issues
as illicit cultivation, production, distribution, sale, transport and financing, and money laundering, asset seizure,extradition, mutual legal assistance, law enforcement andtransit cooperation, precursor chemical control, and demand reduction;
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154(B) accomplished the goals described in an applicablebilateral narcotics agreement with the United States or amultilateral agreement; and(C) taken legal and law enforcement measures to prevent and punish public corruption, especially by senior
government officials, that facilitates the production, processing, or shipment of narcotic and psychotropic drugs andother controlled substances, or that discourages the investigation or prosecution of such acts.
(3) INFORMATION TO BE INCLUDED IN NATIONAL INTEREST
CERTIFICATION.—If the President makes a certification with respect to a country pursuant to paragraph (1)(B), the President
shall include in such certification—(A) a full and complete description of the vital national
interests placed at risk if United States bilateral assistance to that country is terminated pursuant to this section
and multilateral development bank assistance is not provided to such country; and(B) a statement weighing the risk described in subparagraph (A) against the risks posed to the vital national
interests of the United States by the failure of such country to cooperate fully with the United States in combating
narcotics or to take adequate steps to combat narcotics on
its own.
(c) LICIT OPIUM PRODUCING COUNTRIES.—The President may
make a certification under subsection (b)(1)(A) with respect to amajor illicit drug producing country, or major drug-transit country,
that is a producer of licit opium only if the President determinesthat such country maintains licit production and stockpiles at levels no higher than those consistent with licit market demand, andhas taken adequate steps to prevent significant diversion of its licit
cultivation and production into the illicit markets and to prevent
illicit cultivation and production.
(d) CONGRESSIONAL REVIEW.—Subsection (e) shall apply if,
within 30 calendar days after receipt of a certification submitted
under subsection (b) at the time of submission of the report required by section 489(a), the Congress enacts a joint resolution disapproving the determination of the President contained in such certification.
(e) DENIAL OF ASSISTANCE FOR COUNTRIES DECERTIFIED.—If
the President does not make a certification under subsection (b)with respect to a country or the Congress enacts a joint resolution
disapproving such certification, then until such time as the conditions specified in subsection (f) are satisfied—(1) funds may not be obligated for United States assistancefor that country, and funds previously obligated for UnitedStates assistance for that country may not be expended for the
purpose of providing assistance for that country; and(2) the requirement to vote against multilateral development bank assistance pursuant to subsection (a)(2) shall apply
with respect to that country, without regard to the date specified in that subsection.
(f) RECERTIFICATION.—Subsection (e) shall apply to a country
described in that subsection until—
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Sec. 491(1) the President, at the time of submission of the reportrequired by section 489(a), makes a certification under subsection (b)(1)(A) or (b)(1)(B) with respect to that country, andthe Congress does not enact a joint resolution under subsection(d) disapproving the determination of the President containedin that certification; or(2) the President, at any other time, makes the certification described in subsection (b)(1)(B) with respect to thatcountry, except that this paragraph applies only if either—(A) the President also certifies that—(i) that country has undergone a fundamental
change in government, or(ii) there has been a fundamental change in theconditions that were the reason—(I) why the President had not made a certification with respect to that country under subsection (b)(1)(A), or(II) if he had made such a certification and
the Congress enacted a joint resolution disapproving the determination contained in the certification, why the Congress enacted that joint resolution; or(B) the Congress enacts a joint resolution approving
the determination contained in the certification under subsection (b)(1)(B).
Any certification under subparagraph (A) of paragraph (2) shalldiscuss the justification for the certification.
(g) SENATE PROCEDURES.—Any joint resolution under this section shall be considered in the Senate in accordance with the provisions of section 601(b) of the International Security Assistance andArms Export Control Act of 1976.
(h) DETERMINING MAJOR DRUG-TRANSIT AND MAJOR ILLICITDRUG PRODUCING COUNTRIES.—Not later than November 1 of eachyear, the President shall notify the appropriate committees of theCongress of which countries have been determined to be major
drug-transit countries, and which countries have been determined
to be major illicit drug producing countries, for purposes of thisAct.
øSection 490A repealed by section 1112(b) of Public Law 104–
66 (109 Stat. 724).¿
CHAPTER 9—INTERNATIONAL DISASTER ASSISTANCE
SEC. 491. ø22 U.S.C. 2292¿ POLICY AND GENERAL AUTHORITY.—(a) The Congress, recognizing that prompt United States assistance to alleviate human suffering caused by natural and manmade disasters is an important expression of the humanitarianconcern and tradition of the people of the United States, affirms
the willingness of the United States to provide assistance for therelief and rehabilitation of people and countries affected by suchdisasters.
(b) Subject to the limitations in section 492, and notwithstanding any other provision of this or any other Act, the President
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156

national organization, or private voluntary organization, on suchterms and conditions as he may determine, for international disaster relief and rehabilitation, including assistance relating to disaster preparedness, and to the prediction of, and contingency planning for, natural disasters abroad.
(c) EMERGENCY FOOD SECURITY PROGRAM.—(1) IN GENERAL.—Subject to the limitations in section 492,
and notwithstanding any other provision of this or any other
Act, the President is authorized to make available emergency
food assistance, including in the form of funds, transfers,vouchers, and agricultural commodities (including products derived from agricultural commodities) acquired through local orregional procurement, to meet emergency food needs arisingfrom manmade and natural disasters.
(2) DESIGNATION.—Funds made available under this subsection shall be known as the ‘‘International Disaster Assistance – Emergency Food Security Program’’.
(d) In carrying out the provisions of this section the President
shall insure that the assistance provided by the United Statesshall, to the greatest extent possible, reach those most in need ofrelief and rehabilitation as a result of natural and manmade disasters.
SEC. 492. ø22 U.S.C. 2292a¿ AUTHORIZATION.—(a) There areauthorized to be appropriated to the President to carry out section
491, $2,794,184,000 for each of fiscal years 2017 and 2018, of which
up to $1,257,382,000 should be made available to carry out section
491(c). Amounts appropriated under this section are authorized toremain available until expended.
(b) In addition to amounts otherwise available to carry out thischapter, up to $50,000,000 in any fiscal year may be obligatedagainst appropriations under this part (other than this chapter) for
use in providing assistance in accordance with the authorities andgeneral policies of section 491. Amounts subsequently appropriatedunder this chapter with respect to a disaster may be used to reimburse any appropriation account against which obligations were incurred under this subsection with respect to that disaster.
(c) AMOUNTS IN ADDITION TO OTHER AMOUNTS.—Amounts authorized to be appropriated pursuant to the authorizations of appropriations under section 491(c) are in addition to funds otherwise
available for such purposes.
(d) FLEXIBILITY.—(1) UNITED STATES POLICY.—It is the policy of the UnitedStates that the funds made available to carry out section 491
are intended to provide the President with the greatest possible flexibility to address disaster-related needs as they arise
and to prepare for and reduce the impact of natural and manmade disasters.
(2) SENSE OF CONGRESS.—It is the sense of Congress thatany amendments to applicable legal provisions contained inthis Act are not intended to limit such authorities.
(e) REPORT.—Not later than March 1 of each fiscal year, thePresident shall submit to the Committee on Foreign Relations andthe Committee on Appropriations of the Senate and the Committee
on Foreign Affairs and the Committee on Appropriations of theJune 10, 2019

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Sec. 496

House of Representatives a report that describes the activities undertaken by the President over the course of the prior fiscal year
pursuant to section 491(c), including the amounts of assistance provided, intended beneficiaries, monitoring and evaluation strategies,
anticipated outcomes, and, as practicable, actual outcomes.
SEC. 493. ø22 U.S.C. 2292b¿ DISASTER ASSISTANCE—COORDINATION.—The President is authorized to appoint a Special Coordinator for International Disaster Assistance whose responsibility
shall be to promote maximum effectiveness and coordination in responses to foreign disasters by United States agencies and between
the United States and other donors. Included among the Special
Coordinator’s responsibilities shall be the formulation and updatingof contingency plans for providing disaster relief.
CHAPTER 10—DEVELOPMENT FUND FOR AFRICA
SEC. 496. ø22 U.S.C. 2293¿ LONG-TERM DEVELOPMENT ASSISTANCE FOR SUB-SAHARAN AFRICA.—(a) FINDINGS.—The Congress
finds that—(1) drought and famine have caused countless deaths anduntold suffering among the people of sub-Saharan Africa;(2) drought and famine in combination with other factors
such as desertification, government neglect of the agricultural
sector, and inappropriate economic policies have severely affected long-term development in sub-Saharan Africa; and(3) the most cost-effective and efficient way of overcoming
Africa’s vulnerability to drought and famine is to address Africa’s long-term development needs through a process that builds
upon the needs and capabilities of the African people, promotes
sustained and equitable economic growth, preserves the environment, and protects the rights of the individual.
(b) AUTHORITY TO FURNISH ASSISTANCE.—The President is authorized to furnish project and program assistance, on such terms
and conditions as he may determine in accordance with the policies
contained in this section, for long-term development in sub-Saharan Africa.
(c) PURPOSE OF ASSISTANCE.—(1) PURPOSE.—The purpose of assistance under this section
shall be to help the poor majority of men and women in subSaharan Africa to participate in a process of long-term development through economic growth that is equitable, participatory,
environmentally sustainable, and self-reliant.
(2) USE OF ASSISTANCE TO ENCOURAGE PRIVATE SECTOR DEVELOPMENT.—Assistance under this section should, in a manner consistent with paragraph (1), be used to promote sustained economic growth, encourage private sector development,
promote individual initiatives, and help to reduce the role ofcentral governments in areas more appropriate for the private
sector.
(d) APPLICATION OF DEVELOPMENT ASSISTANCE GENERAL AUTHORITIES AND POLICIES.—Except to the extent inconsistent withthis section—
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158(1) any reference in any law to chapter 1 of this part (including references to sections 103 through 106) shall bedeemed to include a reference to this section; and(2) assistance under this section shall be provided consistent with the policies contained in section 102.
(e) PRIVATE AND VOLUNTARY ORGANIZATIONS.—(1) CONSULTATION TO ENSURE LOCAL PERSPECTIVES.—The
Agency for International Development shall take into accountthe local-level perspectives of the rural and urban poor in subSaharan Africa, including women, during the planning process
for project and program assistance under this section. In orderto gain that perspective the Agency for International Development should consult closely with African, United States, andother private and voluntary organizations that have demonstrated effectiveness in or commitment to the promotion of
local, grassroots activities on behalf of long-term developmentin sub-Saharan Africa as described in subsection (c).
(2) DEFINITION OF PRIVATE AND VOLUNTARY ORGANIZATIONS.—For purposes of this section, the term ‘‘private and voluntary organization’’ includes (in addition to entities traditionally considered to be private and voluntary organizations) cooperatives, credit unions, trade unions, women’s groups, nonprofit development research institutions, and indigenous localorganizations, which are private and nonprofit.
(f) LOCAL INVOLVEMENT IN PROJECT IMPLEMENTATION.—Local
people, including women, shall be closely consulted and involved in
the implementation of every project under this section which as alocal focus.
(g) PARTICIPATION OF AFRICAN WOMEN.—The Agency for International Development shall ensure that development activities assisted under this section incorporate a significant expansion of theparticipation (including decisionmaking) and integration of African
women in each of the critical sectors described in subsection (i).
(h) TYPES OF ASSISTANCE.—(1) PROJECTS AND PROGRAMS TO ADDRESS CRITICAL SECTORAL PRIORITIES.—Assistance under this section shall emphasize primarily projects and programs to address critical sectoral priorities for long-term development described in subsection (i).
(2) REFORM OF ECONOMIC POLICIES.—(A) USE OF PROGRAM ASSISTANCE.—Assistance under
this section may also include program assistance to promote reform of sectoral economic policies affecting longterm development in sub-Saharan Africa as described insubsection (c), with primary emphasis on reform of economic policies to support the critical sectoral priorities described in subsection (i).
(B) PROTECTION OF VULNERABLE GROUPS.—Assisted
policy reforms shall also include provisions to protect vulnerable groups (especially poor, isolated, and female farmers, the urban poor, and children including displaced children) and long-term environmental interests from possible
negative consequences of the reforms.
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Sec. 496(3) DEMOCRATIZATION AND CONFLICT RESOLUTION CAPABILITIES.—Assistance under this section may also include programassistance—(A) to promote democratization, good governance, andstrong civil societies in sub-Saharan Africa; and(B) to strengthen conflict resolution capabilities of governmental, intergovernmental, and nongovernmental entities in sub-Saharan Africa.
(4) OTHER ASSISTANCE.—Funds made available to carry out
this section shall be used almost exclusively for assistance inaccordance with paragraphs (1), (2), and (3). Assistance consistent with the purpose of subsection (c) may also be furnished under this section to carry out the provisions of sections
103 through 106 of this Act.
(i) CRITICAL SECTORAL PRIORITIES.—The critical sectoral priorities for long-term development, as described in subsection (c), arethe following:(1) AGRICULTURAL PRODUCTION AND NATURAL RESOURCES.—(A) AGRICULTURAL PRODUCTION.—Increasing agricultural production in ways which protect and restore thenatural resource base, especially food production, throughagricultural policy changes, agricultural research (including participatory research directly involving small farmers)
and extension, development and promotion of agriculture
marketing activities, credit facilities, and appropriate production packages, and the construction and improvementof needed production-related infrastructure such as farmto-market roads, small-scale irrigation, and rural electrification. Within this process, emphasis shall be given to
promoting increased equity in rural income distribution,
recognizing the role of small farmers.
(B) NATURAL RESOURCE BASE.—Maintaining and restoring the renewable natural resource base primarily inways which increase agricultural production, through thefollowing:(i) Small-scale, affordable, resource-conserving,
low-risk local projects, using appropriate technologies(including traditional agricultural methods) suited to
local environmental, resource, and climatic conditions,and featuring close consultation with and involvementof local people at all stages of project design and implementation. Emphasis shall be given to grants for
African local government organizations, international
or African nongovernmental organizations, and UnitedStates private and voluntary organizations.
(ii) Support for efforts at national and regional
levels to provide technical and other support for
projects of the kinds described in clause (i) and tostrengthen the capacities of African countries to provide effective extension and other services in supportof environmentally sustainable increases in food production.
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160(iii) Support for special training and education efforts to improve the capacity of countries in sub-Saharan Africa to manage their own environments and natural resources.
(iv) Support for low-cost desalination activities inorder to increase the availability of fresh water
sources in sub-Saharan Africa.
(2) HEALTH.—Improving health conditions, with special
emphasis on meeting the health needs of mothers and children(including displaced children) through the establishment of primary health care systems that give priority to preventive
health and that will be ultimately self-sustaining. In addition,
providing training and training facilities, in sub-Saharan Africa, for doctors and other health care providers, notwithstanding any provision of law that restricts assistance to foreign countries.
(3) VOLUNTARY FAMILY PLANNING SERVICES.—Providing increased access to voluntary family planning services, including
encouragement of private, community, and local government
initiatives.
(4) EDUCATION.—Improving the relevance, equity, and efficiency of education, with special emphasis on improving primary education.
(5) INCOME-GENERATING OPPORTUNITIES.—Developing income-generating opportunities for the unemployed and underemployed in urban and rural areas through, among otherthings, support for off-farm employment opportunities in
micro- and small-scale labor-intensive enterprises.
(j) MINIMUM LEVELS OF ASSISTANCE FOR CERTAIN CRITICALSECTORS.—The Agency for International Development should target the equivalent of 10 percent of the amount authorized to be appropriated for each fiscal year to carry out this chapter for each of
the following:(1) The activities described in subsection (i)(1)(B), including identifiable components of agricultural production projects.
(2) The activities described in subsection (i)(2).
(3) The activities described in subsection (i)(3).
(k) EFFECTIVE USE OF ASSISTANCE.—Assistance provided under
this section shall be concentrated in countries which will make themost effective use of such assistance in order to fulfill the purpose
specified in subsection (c), especially those countries (including
those of the Sahel region) having the greatest need for outside assistance.
(l) PROMOTION OF REGIONAL INTEGRATION.—Assistance under
this section shall, to the extent consistent with this section, include
assistance to promote the regional and subregional integration of
African production structures, markets, and infrastructure.
(m) DONOR COORDINATION MECHANISM.—Funds made available to carry out this section may be used to assist the governments of countries in sub-Saharan Africa to increase their capacity
to participate effectively in donor coordination mechanisms at thecountry, regional, and sector levels.
(n) RELATION TO OTHER AUTHORITIES.—
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Sec. 497(1) ASSISTANCE UNDER OTHER AUTHORITIES.—The authority
granted by this section to provide assistance for long-term development in sub-Saharan Africa is not intended to preclude
the use of other authorities for that purpose. Centrally funded
programs which benefit sub-Saharan Africa shall continue tobe funded under chapter 1 of part I of this Act.
(2) TRANSFER AUTHORITIES.—(A) The transfer authority contained in section 109 of
this Act shall not apply with respect to this section.
(B) The transfer authority contained in section 610(a)of this Act may not be used to transfer funds made available to carry out this section in order to allow them to be
used in carrying out any other provision of this Act.
(3) REPROGRAMMING NOTIFICATIONS.—Section 634A of thisAct does not apply with respect to funds made available tocarry out this section.
(4) PROCUREMENT OF GOODS AND SERVICES.—In order toallow the assistance authorized by this section to be furnishedas effectively and expeditiously as possible, section 604(a) of
this Act, and similar provisions relating to the procurement ofgoods and services, shall not apply with respect to goods andservices procured for use in carrying out this section. The exemption provided by this paragraph shall not be construed toapply to the Comprehensive Anti/Apartheid 27 Act of 1986.
(o) SUPPORT FOR SADCC PROJECTS.—(1) AUTHORITY TO PROVIDE ASSISTANCE.—To the extent
funds are provided for such purpose in the annual Foreign Operations, Export Financing, and Related Programs Appropriations Act, funds made available to carry out this chapter may
be used to assist sector projects, in the sectors specified inparagraph (2), that are supported by the Southern Africa Development Coordination Conference (SADCC) to enhance theeconomic development of the member states forming that regional institution.
(2) SECTORS.—The sectors with respect to which assistance
may be provided under this subsection are the following: transportation; manpower development; agriculture and natural resources; energy (including the improved utilization of electrical
power sources which already exist in the member states andoffer the potential to swiftly reduce the dependence of thosestates on South Africa for electricity); and industrial development and trade (including private sector initiatives).
(3) RELATION TO DFA POLICIES AND AUTHORITIES.—To the
maximum extent feasible, the assistance authorized by thissubsection shall be provided consistent with the policies andauthorities contained in the preceding subsection of this section.
SEC. 497. ø22 U.S.C. 2294¿ AUTHORIZATIONS OF APPROPRIATIONS FOR THE DEVELOPMENT FUND FOR AFRICA.—Funds appropriated to carry out this chapter are authorized to be made available until expended. It is the sense of the Congress that the authority of this subsection should be used to extend the period of
27 Should read ‘‘Anti-Apartheid’’.

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162

availability of those funds whenever appropriate to improve thequality of assistance provided under section 496.
CHAPTER 11—SUPPORT FOR THE ECONOMIC AND DEMOCRATIC DEVELOPMENT OF THE INDEPENDENT STATES OF THE FORMER SOVIET
UNION

SEC. 498. ø22 U.S.C. 2295¿ ASSISTANCE FOR THE INDEPENDENTSTATES.

The President is authorized to provide assistance to the independent states of the former Soviet Union under this chapter for
the following activities:(1) URGENT HUMANITARIAN NEEDS.—Meeting urgent humanitarian needs (including those arising from the health effects of exposure to radiation in the Chernobyl region), in particular—(A) meeting needs for medicine, medical supplies andequipment, and food, including the nutritional needs of infants such as processed baby food; and(B) continuing efforts to rebuild from the earthquakein Armenia.
(2) DEMOCRACY AND RULE OF LAW.—Establishing a democratic and free society by fostering—(A) political, social, and economic pluralism;(B) respect for internationally recognized humanrights and the rule of law;(C) the development of institutions of democratic governance, including electoral and legislative processes;(D) the institution and improvement of public administration at the national, intergovernmental, regional, andlocal level;(E) development and support of grass-roots and nongovernmental organizations promoting democracy, the ruleof law, transparency, and accountability in the politicalprocess, including grants in small amounts to such organizations;(F) international exchanges and other forms of public
diplomacy to promote greater understanding on how democracy, the public policy process, market institutions,and an independent judiciary function in Western societies;(G) political parties and coalitions committed to promoting democracy, human rights, and economic reforms;(H) support for civic organizations committed to promoting human rights;(I) the development of effective control by elected civilian officials over, and the development of a nonpolitical officer corps in, the military and security forces; and(J) strengthened administration of justice through programs and activities carried out in accordance with section
498B(e), including—(i) support for nongovernmental organizations,civic organizations, and political parties that favor astrong and independent judiciary;
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Sec. 498(ii) support for local organizations that work withjudges and law enforcement officials in efforts toachieve a reduction in the number of pretrial detainees; and(iii) support for the creation of legal associations
or groups that provide training in human rights andadvocacy, public education with respect to humanrights-related laws and proposed legislation, and legal
assistance to persons subject to improper government
interference.
(3) INDEPENDENT MEDIA.—Developing free and independent media, including—(A) supporting all forms of independent media reporting, including print, radio, and television;(B) providing special support for, and unrestrictedpublic access to, nongovernmental Internet-based sourcesof information, dissemination and reporting, including providing technical and other support for web radio services,
providing computers and other necessary resources forInternet connectivity and training new Internet users innongovernmental civic organizations on methods and usesof Internet-based media; and(C) training in journalism, including investigative
journalism techniques that educate the public on the costsof corruption and act as a deterrent against corrupt officials.
(4) FREE MARKET SYSTEMS.—Creating and developing private enterprise and free market systems based on the principle
of private ownership of property, including—(A) the development of private cooperatives, credit
unions, and labor unions;(B) the improvement in the collection and analysis ofstatistical information;(C) the reform and restructuring of banking and financial systems; and(D) the protection of intellectual property.
(5) TRADE AND INVESTMENT.—Creating conditions that promote trade and investment, and encouraging participation of
the United States private sector in the development of the private sector in the independent states of the former Soviet
Union.
(6) FOOD DISTRIBUTION AND PRODUCTION.—Promoting market-based mechanisms for the distribution of the inputs necessary to agricultural production and for the handling, marketing, storage, and processing of agricultural commodities; encouraging policies that provide incentives for agricultural production; and creating institutions that provide technical and financial support for the agricultural sector.
(7) HEALTH AND HUMAN SERVICES.—Promoting programs tostrengthen and build institutions that provide quality healthcare and voluntary family planning services, housing, andother services and policies that are components of a social safety net, particularly for infants, children, and people with disabilities.
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Sec. 498

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

164(8) EDUCATION AND EDUCATIONAL TELEVISION.—Promoting
broad-based educational reform at all levels, in particular—(A) by assisting the development of curricula and by
making available textbooks, other educational materials,
and appropriate telecommunications technologies for thedelivery of educational and instructional programming;and(B) by assisting the development of the skills necessary to produce educational television programs aimed
at promoting basic skills and the human values associatedwith a democratic society and a free market economy.
(9) ENERGY EFFICIENCY AND PRODUCTION.—Promoting market-based pricing policies and the transfer of technologies that
reduce energy wastage and harmful emissions; supporting developmentally sound capital energy projects that utilize UnitedStates advanced coal technologies; and promoting efficient production, use, and transportation of oil, gas, coal, and othersources of energy.
(10) CIVILIAN NUCLEAR REACTOR SAFETY.—Implementing—(A) a program of short-term safety upgrade of civilian
nuclear power plants, including the training of power plant
personnel, implementation of improved procedures for nuclear power plant operation, the development of effective
and independent regulatory authorities, and cost-effective
hardware upgrades; and(B) a program to retire those civilian nuclear power
plants whose capacity could be more cost-effectively replaced through energy efficiency.
(11) ENVIRONMENT.—Enhancing the human and naturalenvironment and conserving environmental resources, including through—(A) facilitation of the adoption of environmentallysound policies and technologies, environmental restoration,and sustainable use of natural resources;(B) promotion of the provision of environmental technology, education, and training by United States businesses, not-for-profit organizations, and institutions ofhigher education; and(C) promotion of cooperative research efforts to validate and improve environmental monitoring of protracted
radiation exposure.
(12) TRANSPORTATION AND TELECOMMUNICATIONS.—Improving transportation and telecommunications infrastructure
and management, including intermodal transportation systems
to ensure the safe and efficient movement of people, products,
and materials.
(13) DRUG EDUCATION, INTERDICTION, AND ERADICATION.—
Promoting drug education, interdiction, and eradication programs.
(14) MIGRATION.—Protecting and caring for refugees, displaced persons, and other migrants; addressing the root causesof migration; and promoting the development of appropriate
immigration and emigration laws and procedures.
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Sec. 498A

SEC. 498A. ø22 U.S.C. 2295a¿ CRITERIA FOR ASSISTANCE TO GOVERNMENTS OF THE INDEPENDENT STATES.
(a) IN GENERAL.—In providing assistance under this chapter

for the government of any independent state of the former Soviet
Union, the President shall take into account not only relative needbut also the extent to which that independent state is acting to—(1) make significant progress toward, and is committed tothe comprehensive implementation of, a democratic system
based on principles of the rule of law, individual freedoms, andrepresentative government determined by free and fair elections;(2) make significant progress in, and is committed to thecomprehensive implementation of, economic reform based onmarket principles, private ownership, and integration into theworld economy, including implementation of the legal and policy frameworks necessary for such reform (including protectionof intellectual property and respect for contracts);(3) respect internationally recognized human rights, including the rights of minorities and the rights to freedom of religion and emigration;(4) respect international law and obligations and adhere to
the Helsinki Final Act of the Conference on Security and Cooperation in Europe and the Charter of Paris, including the obligations to refrain from the threat or use of force and to settle
disputes peacefully;(5) cooperate in seeking peaceful resolution of ethnic andregional conflicts;(6) implement responsible security policies, including—(A) adhering to arms control obligations derived fromagreements signed by the former Soviet Union;(B) reducing military forces and expenditures to alevel consistent with legitimate defense requirements;(C) not proliferating nuclear, biological, or chemical
weapons, their delivery systems, or related technologies;
and(D) restraining conventional weapons transfers;(7) take constructive actions to protect the international
environment, prevent significant transborder pollution, andpromote sustainable use of natural resources;(8) deny support for acts of international terrorism;(9) accept responsibility for paying an equitable portion of
the indebtedness to United States firms incurred by the former
Soviet Union;(10) cooperate with the United States Government in uncovering all evidence regarding Americans listed as prisonersof-war, or otherwise missing during American operations, whowere detained in the former Soviet Union during the Cold War;and(11) terminate support for the communist regime in Cuba,
including removal of troops, closing military and intelligencefacilities, including the military and intelligence facilities at
Lourdes and Cienfuegos, and ceasing trade subsidies and economic, nuclear, and other assistance.
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Sec. 498A

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

166(b) INELIGIBILITY FOR ASSISTANCE.—The President shall notprovide assistance under this chapter—(1) for the government of any independent state that the
President determines is engaged in a consistent pattern ofgross violations of internationally recognized human rights orof international law;(2) for the government of any independent state that the
President determines has failed to take constructive actions tofacilitate the effective implementation of applicable arms control obligations derived from agreements signed by the former
Soviet Union;(3) for the government of any independent state that the
President determines has, on or after the date of enactment of
this chapter, knowingly transferred to another country—(A) missiles or missile technology inconsistent with theguidelines and parameters of the Missile Technology Control Regime; or(B) any material, equipment, or technology that would
contribute significantly to the ability of such country to
manufacture any weapon of mass destruction (including
nuclear, chemical, and biological weapons) if the President
determines that the material, equipment, or technology
was to be used by such country in the manufacture of such
weapon;(4) for the government of any independent state that isprohibited from receiving such assistance by section 669 or 670
of this Act or sections 306(a)(1) and 307 of the Chemical andBiological Weapons Control and Warfare Elimination Act of
1991;(5) for the government of any independent state effective
30 days after the President has determined and certified to theappropriate congressional committees (and Congress has notenacted legislation disapproving the determination within that30-day period) that such government is providing assistancefor, or engaging in nonmarket based trade (as defined in section 498B(k)(3)) with, the Cuban Government; or(6) for the Government of Russia if it has failed to makesignificant progress on the removal of Russian or Commonwealth of Independent States troops from Estonia, Latvia, andLithuania or if it has failed to undertake good faith efforts,such as negotiations, to end other military practices that violate the sovereignty of the Baltic states.
(c) EXCEPTIONS TO INELIGIBILITY.—Assistance prohibited bysubsection (b) or any similar provision of law, other than assistanceprohibited by the provisions referred to in subsection (b)(4), may befurnished under any of the following circumstances:(1) The President determines that furnishing such assistance is important to the national interest of the United States.
(2) The President determines that furnishing such assistance will foster respect for internationally recognized humanrights and the rule of law or the development of institutionsof democratic governance.
(3) The assistance is furnished for the alleviation of suffering resulting from a natural or man-made disaster.
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Sec. 498A(4) The assistance is provided under the secondary school
exchange program administered by the United States Information Agency.
The President shall immediately report to the Congress any determination under paragraph (1) or (2) or any decision to provide assistance under paragraph (3).
(d) REDUCTION IN ASSISTANCE FOR SUPPORT OF INTELLIGENCE
FACILITIES IN CUBA.—(1) REDUCTION IN ASSISTANCE.—Notwithstanding any otherprovision of law, the President shall withhold from assistanceprovided, on or after the date of the enactment of this subsection, for an independent state of the former Soviet Union
under this Act an amount equal to the sum of assistance andcredits, if any, provided on or after such date by such state insupport of intelligence facilities in Cuba, including the intelligence facility at Lourdes, Cuba.
(2) WAIVER.—(A) The President may waive the requirement of paragraph (1) to withhold assistance if the President
certifies to the appropriate congressional committees that theprovision of such assistance is important to the national security of the United States, and, in the case of such a certification made with respect to Russia, if the President certifies
that the Russian Government has assured the United States
Government that the Russian Government is not sharing intelligence data collected at the Lourdes facility with officials or
agents of the Cuban Government.
(B) At the time of a certification made with respect to Russia under subparagraph (A), the President shall also submit to
the appropriate congressional committees a report describing
the intelligence activities of Russia in Cuba, including the purposes for which the Lourdes facility is used by the Russian
Government and the extent to which the Russian Government
provides payment or government credits to the Cuban Government for the continued use of the Lourdes facility.
(C) The report required by subparagraph (B) may be submitted in classified form.
(D) For purposes of this paragraph, the term ‘‘appropriate
congressional committees’’ includes the Permanent Select Committee on Intelligence of the House of Representatives and the
Select Committee on Intelligence of the Senate.
(3) EXCEPTIONS TO REDUCTIONS IN ASSISTANCE.—The requirement of paragraph (1) to withhold assistance shall not
apply with respect to—(A) assistance to meet urgent humanitarian needs, including disaster and refugee relief;(B) democratic political reform or rule of law activities;(C) technical assistance for safety upgrades of civilian
nuclear power plants;(D) the creation of private sector or nongovernmentalorganizations that are independent of government control;(E) the development of a free market economic system;(F) assistance under the secondary school exchange
program administered by the United States Information
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Sec. 498B

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

168(G) assistance for the purposes described in the Cooperative Threat Reduction Act of 1993 (title XII of Public
Law 103–160).
SEC. 498B. ø22 U.S.C. 2295b¿ AUTHORITIES RELATING TO ASSISTANCEAND OTHER PROVISIONS.
(a) ASSISTANCE THROUGH GOVERNMENTS AND NONGOVERNMENTAL ORGANIZATIONS.—Assistance under this chapter may beprovided to governments or through nongovernmental organizations.
(b) TECHNICAL AND MANAGERIAL ASSISTANCE.—Technical assistance under this chapter shall, to the maximum extent feasible,
be provided on a long term, on-site basis and shall emphasize theprovision of practical, management and other problem-solving advice, particularly advice on private enterprise provided by UnitedStates business volunteers.
(c) ENTERPRISE FUNDS.—Activities supported pursuant to thischapter may include the establishment of and the provision of support for one or more enterprise funds for the independent states ofthe former Soviet Union. If the President determines that an enterprise fund should be established and supported under this chapter,the provisions contained in section 201 of the Support for East European Democracy (SEED) Act of 1989 (excluding the authorizations of appropriations provided in subsection (b) of that section)
shall be deemed to apply with respect to such enterprise fund andto funds made available to such enterprise fund pursuant to thischapter.
(d) COOPERATIVE DEVELOPMENT AND RESEARCH PROJECTS.—Assistance under this chapter may include support for cooperative development projects, including cooperative development research
projects, among the United States, other countries, and independent states of the former Soviet Union.
(e) ADMINISTRATION OF JUSTICE PROGRAMS.—In order tostrengthen the administration of justice in the independent statesof the former Soviet Union under paragraph (2)(J) of section 498,
the President may exercise the same authorities as are available
under section 534 of this Act, subject to the limitations and requirements of that section, other than subsection (c) and the lasttwo sentences of subsection (e).
(f) USE OF ECONOMIC SUPPORT FUNDS.—Any funds that havebeen allocated under chapter 4 of part II for assistance for the
independent states of the former Soviet Union may be used in accordance with the provisions of this chapter.
(g) USE OF SEED AGENCY FUNDS AND ADMINISTRATIVE AUTHORITIES.—The President may authorize any agency of the UnitedStates Government that has authority to conduct activities under
the Support for East European Democracy (SEED) Act of 1989 touse—(1) any funds that are available to it for activities related
to international affairs outside Eastern Europe, and(2) any administrative authorities that are available to it
for activities with respect to Eastern Europe,
to conduct activities authorized by section 498 with respect to the
independent states of the former Soviet Union.
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Sec. 498B(h) PROCUREMENT RESTRICTIONS.—Funds made available forassistance under this chapter may be used for procurement—(1) in the United States, the independent states of theformer Soviet Union, or a developing country; or(2) in any other country but only if—(A) the provision of such assistance requires commodities or services of a type that are not produced in andavailable for purchase in any country specified in paragraph (1); or(B) the President determines, on a case-by-case basis,that procurement in such other country is necessary—(i) to meet unforeseen circumstances, such as
emergency situations, where it is important to permit
procurement in a country not specified in paragraph(1), or(ii) to promote efficiency in the use of UnitedStates foreign assistance resources, including to avoid
impairment of foreign assistance objectives.
(i) TERMS AND CONDITIONS.—Assistance under this chapter
shall be provided on such terms and conditions as the President
may determine, consistent with applicable provisions of law (except
as otherwise provided in subsection (j)).
(j) WAIVER OF CERTAIN PROVISIONS.—(1) IN GENERAL.—Funds authorized to be appropriated forfiscal year 1993 by this chapter, and any other funds appropriated for fiscal year 1993 that are used under the authorityof subsection (f) or (g), may be used to provide assistance under
this chapter notwithstanding any other provision of law, exceptfor—(A) this chapter;(B) section 634A of this Act and comparable notification requirements contained in sections of the annual foreign operations, export financing, and related programs
Act;(C) sections 669 and 670 of this Act and sections 306
and 307 of the Chemical and Biological Weapons Control
and Warfare Elimination Act of 1961, to the extent thatthey apply to assistance to governments; and(D) section 1341 of title 31, United States Code (commonly referred to as the ‘‘Anti-Deficiency Act’’), the Congressional Budget and Impoundment Control Act of 1974,
the Balanced Budget and Emergency Deficit Control Act of
1985, and the Budget Enforcement Act of 1990.
(2) NUCLEAR REACTOR SAFETY AND RELATED ACTIVITIES.—
Any provision that corresponds to section 510 of the Foreign
Operations, Export Financing, and Related Programs Appropriations Act, 1991 (relating to the prohibition on financing exports of nuclear equipment, fuel, and technology) shall not
apply with respect to funds used pursuant to this chapter.
(k) DEFINITIONS.—(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—As used inthis chapter, the term ‘‘appropriate congressional committees’’
means the Committee on Foreign Affairs and the Committee
on Appropriations of the House of Representatives and theJune 10, 2019

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170

Committee on Foreign Relations and the Committee on Appropriations of the Senate.
(2) INDEPENDENT STATES OF THE FORMER SOVIET UNION.—
As used in this chapter, the terms ‘‘independent states of theformer Soviet Union’’ and ‘‘independent states’’ have the meaning given those terms by section 3 of the Freedom for Russia
and Emerging Eurasian Democracies and Open Markets Support Act of 1992.
(3) NONMARKET BASED TRADE.—As used in section
498A(b)(5), the term ‘‘nonmarket based trade’’ includes exports,
imports, exchanges, or other arrangements that are provided
for goods and services (including oil and other petroleum products) on terms more favorable than those generally available inapplicable markets or for comparable commodities, including—(A) exports to the Cuban Government on terms thatinvolve a grant, concessional price, guaranty, insurance, or
subsidy;(B) imports from the Cuban Government at preferential tariff rates;(C) exchange arrangements that include advance delivery of commodities, arrangements in which the Cuban
Government is not held accountable for unfulfilled exchange contracts, and arrangements under which Cuba
does not pay appropriate transportation, insurance, or finance costs; and(D) the exchange, reduction, or forgiveness of debt of
the Cuban Government in return for a grant by the Cuban
Government of an equity interest in a property, investment, or operation of the Cuban Government or of a
Cuban national.
(4) CUBAN GOVERNMENT.—(A) The term ‘‘Cuban Government’’ includes the government of any political subdivision of
Cuba, and any agency or instrumentality of the Government of
Cuba.
(B) For purposes of subparagraph (A), the term ‘‘agency or
instrumentality of the Government of Cuba’’ means an agency
or instrumentality of a foreign state as defined in section
1603(b) of title 28, United States Code, with each reference insuch section to ‘‘a foreign state’’ deemed to be a reference to‘‘Cuba’’.
SEC. 498C. ø22 U.S.C. 2295c¿ AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—To carry out this chapter, there are author-

ized to be appropriated to the President for fiscal year 1993
$410,000,000, in addition to amounts otherwise available for assistance for the independent states of the former Soviet Union.
Amounts appropriated pursuant to this subsection are authorized
to remain available until expended.
(b) OPERATING EXPENSES.—(1) AUTHORITY TO TRANSFER PROGRAM FUNDS.—Subject toparagraph (2), funds made available under subsection (a) may
be transferred to, and merged with, funds appropriated for‘‘Operating Expenses of the Agency for International Development’’. Funds so transferred may be expended for administraJune 10, 2019

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Sec. 499A

tive costs in carrying out this chapter, including reimbursement of the Department of State for its incremental costs associated with assistance provided under this chapter.
(2) LIMITATION ON AMOUNT TRANSFERRED.—Not more than
2 percent of the funds made available for a fiscal year undersubsection (a) may be transferred pursuant to paragraph (1)unless, at least 15 days before transferring any additionalamount, the President notifies the appropriate congressional
committees in accordance with the procedures applicable to reprogramming notifications under section 634A of this Act.
CHAPTER 12—SUPPORT FOR THE ECONOMIC AND POLITICAL INDEPENDENCE OF THE COUNTRIES OF THE
SOUTH CAUCASUS AND CENTRAL ASIA
SEC. 499. ø22 U.S.C. 2296¿ UNITED STATES ASSISTANCE TO PROMOTERECONCILIATION AND RECOVERY FROM REGIONAL CONFLICTS.
(a) PURPOSE OF ASSISTANCE.—The purposes of assistanceunder this section include—(1) the creation of the basis for reconciliation between belligerents;(2) the promotion of economic development in areas of thecountries of the South Caucasus and Central Asia impacted bycivil conflict and war; and(3) the encouragement of broad regional cooperation among
countries of the South Caucasus and Central Asia that havebeen destabilized by internal conflicts.
(b) AUTHORIZATION FOR ASSISTANCE.—(1) IN GENERAL.—To carry out the purposes of subsection(a), the President is authorized to provide humanitarian assistance and economic reconstruction assistance for the countriesof the South Caucasus and Central Asia to support the activities described in subsection (c).
(2) DEFINITION OF HUMANITARIAN ASSISTANCE.—In thissubsection, the term ‘‘humanitarian assistance’’ means assistance to meet humanitarian needs, including needs for food,medicine, medical supplies and equipment, education, andclothing.
(c) ACTIVITIES SUPPORTED.—Activities that may be supported
by assistance under subsection (b) include—(1) providing for the humanitarian needs of victims of theconflicts;(2) facilitating the return of refugees and internally displaced persons to their homes; and(3) assisting in the reconstruction of residential and economic infrastructure destroyed by war.
SEC. 499A. ø22 U.S.C. 2296a¿ ECONOMIC ASSISTANCE.
(a) PURPOSE OF ASSISTANCE.—The purpose of assistance under

this section is to foster economic growth and development, including the conditions necessary for regional economic cooperation, in
the South Caucasus and Central Asia.
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Sec. 499B

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172

for the countries of the South Caucasus and Central Asia to support the activities described in subsection (c).
(c) ACTIVITIES SUPPORTED.—In addition to the activities described in section 498, activities supported by assistance under subsection (b) should support the development of the structures andmeans necessary for the growth of private sector economies based
upon market principles.
SEC. 499B. ø22 U.S.C. 2296b¿ DEVELOPMENT OF INFRASTRUCTURE.
(a) PURPOSE OF PROGRAMS.—The purposes of programs under

this section include—(1) to develop the physical infrastructure necessary for regional cooperation among the countries of the South Caucasus
and Central Asia; and(2) to encourage closer economic relations and to facilitate
the removal of impediments to cross-border commerce among
those countries and the United States and other developed nations.
(b) AUTHORIZATION FOR PROGRAMS.—To carry out the purposesof subsection (a), the following types of programs for the countriesof the South Caucasus and Central Asia may be used to support
the activities described in subsection (c):(1) Activities by the Export-Import Bank to complete thereview process for eligibility for financing under the Export-Import Bank Act of 1945.
(2) The provision of insurance, reinsurance, financing, orother assistance by the Overseas Private Investment Corporation 28.
(3) Assistance under section 661 of this Act (relating to theTrade and Development Agency).
(c) ACTIVITIES SUPPORTED.—Activities that may be supported
by programs under subsection (b) include promoting actively theparticipation of United States companies and investors in the planning, financing, and construction of infrastructure for communications, transportation, including air transportation, and energy andtrade including highways, railroads, port facilities, shipping, banking, insurance, telecommunications networks, and gas and oil pipelines.
SEC. 499C. ø22 U.S.C. 2296c¿ BORDER CONTROL ASSISTANCE.
(a) PURPOSE OF ASSISTANCE.—The purpose of assistance under

this section includes the assistance of the countries of the South
Caucasus and Central Asia to secure their borders and implement
effective controls necessary to prevent the trafficking of illegal narcotics and the proliferation of technology and materials related toweapons of mass destruction (as defined in section 2332a(c)(2) of
28 Section 1470(j)(2) of the BUILD Act of 2018 (division F of Public Law 115-254) provides for
an amendment to strike ‘‘Overseas Private Investment Corporation’’ and insert ‘‘United States
International Development Finance Corporation’’. The law incorrectly references section
449B(b)(2) and probably should have referred to section 499B(b)(2). The corresponding U.S. Codecitation in such Public Law corresponds to section 499B(b)(2). Section 1470(w) of such Act states‘‘The amendments made by this section shall take effect at the end of the transition period.’’.
Section 1461(2) of such Act defines the term ‘‘transition period’’ as follows: ‘‘The term ‘transition
period’ means the period—(A) beginning on the date of the enactment of this Act; and (B) endingon the effective date of the reorganization plan required by section 1462(e).’’. For details relating
to the reorganization plan, see section 1462(e) of such Act.

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FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

Sec. 499E

title 18, United States Code), and to contain and inhibittransnational organized criminal activities.
(b) AUTHORIZATION FOR ASSISTANCE.—To carry out the purposeof subsection (a), the President is authorized to provide assistanceto the countries of the South Caucasus and Central Asia to support
the activities described in subsection (c).
(c) ACTIVITIES SUPPORTED.—Activities that may be supported
by assistance under subsection (b) include assisting those countriesof the South Caucasus and Central Asia in developing capabilities
to maintain national border guards, coast guard, and customs controls.
SEC. 499D. ø22 U.S.C. 2296d¿ STRENGTHENING DEMOCRACY, TOLERANCE, AND THE DEVELOPMENT OF CIVIL SOCIETY.
(a) PURPOSE OF ASSISTANCE.—The purpose of assistance under

this section is to promote institutions of democratic government
and to create the conditions for the growth of pluralistic societies,
including religious tolerance and respect for internationally recognized human rights.
(b) AUTHORIZATION FOR ASSISTANCE.—To carry out the purposeof subsection (a), the President is authorized to provide the following types of assistance to the countries of the South Caucasus
and Central Asia:(1) Assistance for democracy building, including programs
to strengthen parliamentary institutions and practices.
(2) Assistance for the development of nongovernmental organizations.
(3) Assistance for development of independent media.
(4) Assistance for the development of the rule of law, astrong independent judiciary, and transparency in politicalpractice and commercial transactions.
(5) International exchanges and advanced professional
training programs in skill areas central to the development ofcivil society.
(6) Assistance to promote increased adherence to civil andpolitical rights under section 116(e) of this Act.
(c) ACTIVITIES SUPPORTED.—Activities that may be supported
by assistance under subsection (b) include activities that are designed to advance progress toward the development of democracy.
SEC. 499E. ø22 U.S.C. 2296e¿ ADMINISTRATIVE AUTHORITIES.
(a) ASSISTANCE THROUGH GOVERNMENTS AND NONGOVERNMENTAL ORGANIZATIONS.—Assistance under this chapter may beprovided to governments or through nongovernmental organizations.
(b) USE OF ECONOMIC SUPPORT FUNDS.—Except as otherwise
provided, any funds that have been allocated under chapter 4 ofpart II for assistance for the independent states of the former Soviet Union may be used in accordance with the provisions of thischapter.
(c) TERMS AND CONDITIONS.—Assistance under this chapter
shall be provided on such terms and conditions as the President
may determine.
(d) AVAILABLE AUTHORITIES.—The authority in this chapter toprovide assistance for the countries of the South Caucasus andJune 10, 2019

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Central Asia is in addition to the authority to provide such assistance under the FREEDOM Support Act (22 U.S.C. 5801 et seq.) or
any other Act, and the authorities applicable to the provision of assistance under chapter 11 may be used to provide assistance under
this chapter.
SEC. 499F. ø22 U.S.C. 2296f¿ DEFINITIONS.

In this chapter:(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term‘‘appropriate congressional committees’’ means the Committee
on Foreign Relations of the Senate and the Committee on
International Relations of the House of Representatives.
(2) COUNTRIES OF THE SOUTH CAUCASUS AND CENTRALASIA.—The term ‘‘countries of the South Caucasus and Central
Asia’’ means Armenia, Azerbaijan, Georgia, Kazakstan,
Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.
PART IICHAPTER 1—POLICY
SEC. 501. ø22 U.S.C. 2301¿ STATEMENT OF POLICY.—The Congress of the United States reaffirms the policy of the United Statesto achieve international peace and security through the United Nations so that armed force shall not be used except for individual orcollective self-defense. The Congress hereby finds that the efforts of
the United States and other friendly countries to promote peaceand security continue to require measures of support based upon
the principle of effective self-help and mutual aid. It is the purposeof this part to authorize measures in the common defense againstinternal and external aggression, including the furnishing of military assistance, upon request, to friendly countries and international organizations. In furnishing such military assistance, itremains the policy of the United States to continue to exert maximum efforts to achieve universal control of weapons of mass destruction and universal regulation and reduction of armaments, including armed forces, under adequate safeguards to protect complying countries against violation and invasion.
The Congress recognizes that the peace of the world and the
security of the United States are endangered so long as hostile
countries continue by threat of military action, by the use of economic pressure, and by internal subversion, or other means to attempt to bring under their domination peoples now free and independent and continue to deny the rights of freedom and self-government to peoples and countries once free but now subject to suchdomination.
It is the sense of the Congress that an important contribution
toward peace would be made by the establishment under the Organization of American States of an international military force.
In enacting this legislation, it is therefore the intention of theCongress to promote the peace of the world and the foreign policy,
security, and general welfare of the United States by fostering an
improved climate of political independence and individual liberty,
improving the ability of friendly countries and international organizations to deter or, if necessary, defeat aggression, facilitating arJune 10, 2019

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rangements for individual and collective security, assisting friendly
countries to maintain internal security, and creating an environment of security and stability in the developing friendly countries
essential to their more rapid social, economic, and politicalprogress. The Congress urges that all other countries able to contribute join in a common undertaking to meet the goals stated inthis part.
It is the sense of the Congress that in the administration ofthis part priority shall be given to the needs of those countries indanger of becoming victims of aggression or in which the internal
security is threatened by internal subversion inspired or supported
by hostile countries.
Finally, the Congress reaffirms its full support of the progressof the members of the North Atlantic Treaty Organization toward
increased cooperation in political, military, and economic affairs. In
particular, the Congress welcomes the steps which have been taken
to promote multilateral programs of coordinated procurement, research, development, and production of defense articles and urgesthat such programs be expanded to the fullest extent possible tofurther the defense of the North Atlantic area.
SEC. 502. ø22 U.S.C. 2302¿ UTILIZATION OF DEFENSE ARTICLESAND SERVICES.—Defense articles and defense services to any country shall be furnished solely for internal security (including for
antiterrorism and nonproliferation purposes), for legitimate self-defense, to permit the recipient country to participate in regional orcollective arrangements or measures consistent with the Charter of
the United Nations, or otherwise to permit the recipient country toparticipate in collective measures requested by the United Nations
for the purpose of maintaining or restoring international peace andsecurity, or for the purpose of assisting foreign military forces inless developed friendly countries (or the voluntary efforts of personnel of the Armed Forces of the United States in such countries)
to construct public works and to engage in other activities helpful
to the economic and social development of such friendly countries.
It is the sense of the Congress that such foreign military forces
should not be maintained or established solely for civic action activities and that such civic action activities not significantly detractfrom 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.
SEC. 502A. øRepealed by Public Law 104–164.¿
SEC. 502B. ø22 U.S.C. 2304¿ HUMAN RIGHTS.—(a)(1) The
United States shall, in accordance with its international obligations
as set forth in the Charter of the United Nations and in keepingwith the constitutional heritage and traditions of the UnitedStates, promote and encourage increased respect for human rights
and fundamental freedoms throughout the world without distinction as to race, sex, language, or religion. Accordingly, a principal
goal of the foreign policy of the United States shall be to promote
the increased observance of internationally recognized humanrights by all countries.
(2) Except under circumstances specified in this section, no security assistance may be provided to any country the governmentof which engages in a consistent pattern of gross violations of interJune 10, 2019

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nationally recognized human rights. Security assistance may not beprovided to the police, domestic intelligence, or similar law enforcement forces of a country, and licenses may not be issued under the
Export Administration Act of 1979 for the export of crime control
and detection instruments and equipment to a country, the government of which engages in a consistent pattern of gross violationsof internationally recognized human rights unless the President
certifies in writing to the Speaker of the House of Representatives
and the chairman of the Committee on Foreign Relations of the
Senate and the chairman of the Committee on Banking, Housing,and Urban Affairs of the Senate (when licenses are to be issued
pursuant to the Export Administration Act of 1979), that extraordinary circumstances exist warranting provision of such assistanceand issuance of such licenses. Assistance may not be provided
under chapter 5 of this part to a country the government of which
engages in a consistent pattern of gross violations of internationally recognized human rights unless the President certifies in writing to the Speaker of the House of Representatives and the chairman of the Committee on Foreign Relations of the Senate that extraordinary circumstances exist warranting provision of such assistance.
(3) In furtherance of paragraphs (1) and (2), the President isdirected to formulate and conduct international security assistanceprograms of the United States in a manner which will promote andadvance human rights and avoid identification of the UnitedStates, through such programs, with governments which deny totheir people internationally recognized human rights and fundamental freedoms, in violation of international law or in contravention of the policy of the United States as expressed in this section
or otherwise.
(4) In determining whether the government of a country engages in a consistent pattern of gross violations of internationallyrecognized human rights, the President shall give particular consideration to whether the government—(A) has engaged in or tolerated particularly severe violations of religious freedom, as defined in section 3 of the International Religious Freedom Act of 1998; or(B) has failed to undertake serious and sustained efforts tocombat particularly severe violations of religious freedom whensuch efforts could have been reasonably undertaken.
(b) The Secretary of State shall transmit to the Congress, aspart of the presentation materials for security assistance programs
proposed for each fiscal year, a full and complete report, preparedwith the assistance of the Assistant Secretary of State for Democracy, Human Rights, and Labor and with the assistance of the Ambassador at Large for International Religious Freedom, with respect to practices regarding the observance of and respect for internationally recognized human rights in each country proposed as arecipient of security assistance. Wherever applicable, such reportshall include consolidated information regarding the commission of
war crimes, crimes against humanity, and evidence of acts that
may constitute genocide (as defined in article 2 of the Convention
on the Prevention and Punishment of the Crime of Genocide andmodified by the United States instrument of ratification to that
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convention and section 2(a) of the Genocide Convention Implementation Act of 1987). Wherever applicable, such report shall include
information on practices regarding coercion in population control,
including coerced abortion and involuntary sterilization. Such report shall also include, wherever applicable, information on violations of religious freedom, including particularly severe violationsof religious freedom (as defined in section 3 of the International Religious Freedom Act of 1998). Wherever applicable, such reportshall include a description of the nature and extent of acts of antiSemitism and anti-Semitic incitement that occur, including the descriptions of such acts required under section 116(d)(8). Such reportshall also include, for each country with respect to which the report
indicates that extrajudicial killings, torture, or other serious violations of human rights have occurred in the country, the extent towhich the United States has taken or will take action to encourage
an end to such practices in the country. Each report under this section shall list the votes of each member of the United Nations Commission on Human Rights on all country-specific and thematic resolutions voted on at the Commission’s annual session during the period covered during the preceding year. Each report under this section shall describe the extent to which each country has extended
protection to refugees, including the provision of first asylum andresettlement. Each report under this section shall also include (i)wherever applicable, a description of the nature and extent of thecompulsory recruitment and conscription of individuals under theage of 18 by armed forces of the government of the country, government-supported paramilitaries, or other armed groups, the participation of such individuals in such groups, and the nature and extent that such individuals take a direct part in hostilities, (ii) whatsteps, if any, taken by the government of the country to eliminate
such practices, and (iii) such other information related to the use
by such government of individuals under the age of 18 as soldiers,
as determined to be appropriate by the Secretary of State. In determining whether a government falls within the provisions of subsection (a)(3) and in the preparation of any report or statement required under this section, consideration shall be given to—(1) the relevant findings of appropriate international organizations, including nongovernmental organizations, such as
the International Committee of the Red Cross; and(2) the extent of cooperation by such government in permitting an unimpeded investigation by any such organizationof alleged violations of internationally recognized humanrights.
(c)(1) Upon the request of the Senate or the House of Representatives by resolution of either such House, or upon the request of the Committee on Foreign Relations of the Senate or theCommittee on Foreign Affairs of the House of Representatives, theSecretary of State shall, within thirty days after receipt of such request, transmit to both such committees a statement, preparedwith the assistance of the Assistant Secretary of State for Democracy, Human Rights, and Labor, with respect to the country designated in such request, setting forth—(A) all the available information about observance of andrespect for human rights and fundamental freedom in that
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country, and a detailed description of practices by the recipient
government with respect thereto;(B) the steps the United States has taken to—(i) promote respect for and observance of human rights
in that country and discourage any practices which are inimical to internationally recognized human rights, and(ii) publicly or privately call attention to, and disassociate the United States and any security assistance provided for such country from, such practices;(C) whether, in the opinion of the Secretary of State, notwithstanding any such practices—(i) extraordinary circumstances exist which necessitate
a continuation of security assistance for such country, and,if so, a description of such circumstances and the extent towhich such assistance should be continued (subject to suchconditions as Congress may impose under this section),and(ii) on all the facts it is in the national interest of theUnited States to provide such assistance; and(D) such other information as such committee or such
House may request.
(2)(A) A resolution of request under paragraph (1) of this subsection shall be considered in the Senate in accordance with theprovisions of section 601(b) of the International Security Assistanceand Arms Export Control Act of 1976.
(B) The term ‘‘certification’’, as used in section 601 of such Act,means, for the purposes of this subsection, a resolution of requestof the Senate under paragraph (1) of this subsection.
(3) In the event a statement with respect to a country is requested pursuant to paragraph (1) of this subsection but is nottransmitted in accordance therewith within thirty days after receipt of such request, no security assistance shall be delivered tosuch country except as may thereafter be specifically authorized bylaw from such country unless and until such statement is transmitted.
(4)(A) In the event a statement with respect to a country istransmitted under paragraph (1) of this subsection, the Congress
may at any time thereafter adopt a joint resolution terminating, restricting, or continuing security assistance for such country. In theevent such a joint resolution is adopted, such assistance shall be
so terminated, so restricted, or so continued, as the case may be.
(B) Any such resolution shall be considered in the Senate in accordance with the provisions of section 601(b) of the International
Security Assistance and Arms Export Control Act of 1976.
(C) The term ‘‘certification’’, as used in section 601 of such Act,means, for the purposes of this paragraph, a statement transmitted
under paragraph (1) of this subsection.
(d) For the purposes of this section—(1) the term ‘‘gross violations of internationally recognizedhuman rights’’ includes torture or cruel, inhuman, or degrading treatment or punishment, prolonged detention withoutcharges and trial, causing the disappearance of persons by the
abduction and clandestine detention of those persons, andJune 10, 2019

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Sec. 502B

other flagrant denial of the right to life, liberty, or the securityof person;(2) the term ‘‘security assistance’’ means—(A) assistance under chapter 2 (military assistance) or
chapter 4 (economic support fund) or chapter 5 (militaryeducation and training) or chapter 6 (peacekeeping operations) or chapter 8 (antiterrorism assistance) of this part;(B) sales of defense articles or services, extensions ofcredits (including participations in credits) 29, and guaranties of loans under the Arms Export Control Act; or(C) any license in effect with respect to the export toor for the armed forces, police, intelligence, or other internal security forces of a foreign country of—(i) defense articles or defense services under section 38 of the Armed Export Control Act (22 U.S.C.
2778); or(ii) items listed under the 600 series of the Commerce Control List contained in Supplement No. 1 topart 774 of subtitle B of title 15, Code of Federal Regulations; 30(e) Notwithstanding any other provision of law, funds authorized to be appropriated under part I of this Act may be made available for the furnishing of assistance to any country with respect towhich the President finds that such a significant improvement in
its human rights record has occurred as to warrant lifting the prohibition on furnishing such assistance in the national interest of
the United States.
(f) In allowing the funds authorized to be appropriated by thisAct and the Arms Export Control Act, the President shall take into
account significant improvements in the human rights records ofrecipient countries, except that such allocations may not contravene any other provision of law.
(g) Whenever the provisions of subsection (e) or (f) of this section are applied, the President shall report to the Congress before
making any funds available pursuant to those subsections. The report shall specify the country involved, the amount and kinds of assistance to be provided, and the justification for providing the assistance, including a description of the significant improvements
which have occurred in the country’s human rights record.
(h)(1) The report required by subsection (b) shall include thefollowing:(A) A description of the nature and extent of severe formsof trafficking in persons, as defined in section 103 of the Trafficking Victims Protection Act of 2000, in each foreign country.
(B) With respect to each country that is a country of origin, transit, or destination for victims of severe forms of trafficking in persons, an assessment of the efforts by the government of that country to combat such trafficking. The assessment shall address the following:
29 Section 208(b)(2)(B) of Public Law 113–276 provides for an amendment to subsection(d)(2)(B) by striking ‘‘credits’’ and inserting ‘‘credits)’’. The amendment was carried out to thesecond occurrence of the word ‘‘credits’’ in order to reflect the probable intent of Congress.
30 So in law. The semicolon at the end of subparagraph (C) probably should be a period. See
amendment made by section 206(2) of Public Law 113–276.

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FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

180(i) Whether government authorities in that country
participate in, facilitate, or condone such trafficking.
(ii) Which government authorities in that country are
involved in activities to combat such trafficking.
(iii) What steps the government of that country hastaken to prohibit government officials from participatingin, facilitating, or condoning such trafficking, including theinvestigation, prosecution, and conviction of such officials.
(iv) What steps the government of that country hastaken to prohibit other individuals from participating insuch trafficking, including the investigation, prosecution,and conviction of individuals involved in severe forms of
trafficking in persons, the criminal and civil penalties forsuch trafficking, and the efficacy of those penalties ineliminating or reducing such trafficking.
(v) What steps the government of that country hastaken to assist victims of such trafficking, including efforts
to prevent victims from being further victimized by traffickers, government officials, or others, grants of relief
from deportation, and provision of humanitarian relief, including provision of mental and physical health care andshelter.
(vi) Whether the government of that country is cooperating with governments of other countries to extradite
traffickers when requested, or, to the extent that such cooperation would be inconsistent with the laws of suchcountry or with extradition treaties to which such country
is a party, whether the government of that country is taking all appropriate measures to modify or replace suchlaws and treaties so as to permit such cooperation.
(vii) Whether the government of that country is assisting in international investigations of transnational trafficking networks and in other cooperative efforts to combat
severe forms of trafficking in persons.
(viii) Whether the government of that country refrainsfrom prosecuting victims of severe forms of trafficking inpersons due to such victims having been trafficked, and refrains from other discriminatory treatment of such victims.
(ix) Whether the government of that country recognizes the rights of victims of severe forms of trafficking inpersons and ensures their access to justice.
(C) Such other information relating to trafficking in persons as the Secretary of State considers appropriate.
(2) In compiling data and making assessments for the purposesof paragraph (1), United States diplomatic mission personnel shallconsult with human rights organizations and other appropriate
nongovernmental organizations.
(i) The report required by subsection (b) shall include, wherever applicable—(1) a description of the status of freedom of the press, including initiatives in favor of freedom of the press and efforts
to improve or preserve, as appropriate, the independence of themedia, together with an assessment of progress made as a result of those efforts;
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Sec. 503(2) an identification of countries in which there were violations of freedom of the press, including direct physical attacks,
imprisonment, indirect sources of pressure, and censorship bygovernments, military, intelligence, or police forces, criminalgroups, or armed extremist or rebel groups; and(3) in countries where there are particularly severe violations of freedom of the press—(A) whether government authorities of each such country participate in, facilitate, or condone such violations of
the freedom of the press; and(B) what steps the government of each such country
has taken to preserve the safety and independence of themedia, and to ensure the prosecution of those individuals
who attack or murder journalists.
(i) 31 CHILD MARRIAGE STATUS.—(1) IN GENERAL.—The report required under subsection (b)shall include, for each country in which child marriage is prevalent, a description of the status of the practice of child marriage in such country.
(2) DEFINED TERM.—In this subsection, the term ‘‘childmarriage’’ means the marriage of a girl or boy who is—(A) younger than the minimum age for marriage under
the laws of the country in which such girl or boy is a resident; or(B) younger than 18 years of age, if no such law exists.
CHAPTER 2—MILITARY ASSISTANCE
SEC. 503. ø22 U.S.C. 2311¿ GENERAL AUTHORITY.—(a) The
President is authorized to furnish military assistance, on suchterms and conditions as he may determine, to any friendly country
or international organization, the assisting of which the President
finds will strengthen the security of the United States and promoteworld 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;(2) assigning or detailing members of the Armed Forces of
the United States and other personnel of the Department of
Defense to perform duties of a non-combatant nature; or(3) transferring such of the funds appropriated or otherwise made available under this chapter as the President may
determine for assistance to a recipient country, to the accountin which funds for the procurement of defense articles and defense services under section 21 and section 22 of the Arms Export Control Act have been deposited for such recipient, to bemerged with such deposited funds, and to be used solely tomeet obligations of the recipient for payment for sales underthat Act. Sales which are wholly paid from funds transferredunder paragraph (3) or from funds made available on a nonrepayable basis under section 23 of the Arms Export Control
Act shall be priced to exclude the costs of salaries of members
31 Two subsection (i)s’ so in law. The second subsection (i) was added to the end of section
502B by section 1207(b)(2) of Public Law 113–4.

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of the Armed Forces of the United States (other than the Coast
Guard).
(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 offunds, for providing such articles on a loan basis rather thanon a grant basis;(2) there is a reasonable expectation that such articles will
be returned to the agency making the loan at the end of theloan 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) the loan agreement provides that (A) if the defense article is damaged while on loan, the country or international organization to which it was loaned will reimburse the UnitedStates for the cost of restoring or replacing the defense article,
and (B) if the defense article is lost or destroyed while on loan,
the country or international organization to which it wasloaned will pay to the United States an amount equal to thereplacement cost (less any depreciation in the value) of the defense article.
(c)(1) In the case of any loan of a defense article or defense
service made under this section, there shall be a charge to the appropriation for military assistance for any fiscal year while the article or service is on loan in an amount based on—(A) the out-of-pocket expenses authorized to be incurred inconnection 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 dateof enactment of this subsection, to lend; and(B) to any defense article or defense service, or portion
thereof, acquired with funds appropriated for military assistance under this Act.
SEC. 504. ø22 U.S.C. 2312¿ AUTHORIZATION.—(a)(1) There areauthorized to be appropriated to the President to carry out the purposes of this chapter $805,100,000 for the fiscal year 1986 and$805,100,000 for the fiscal year 1987.
(2) Amounts appropriated under this subsection are authorized
to remain available until expended.
(b) In order to make sure that a dollar spent on military assistance to foreign countries is as necessary as a dollar spent for theUnited 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 activities and programs of the Department of Defense.
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SEC. 505. ø22 U.S.C. 2314¿ CONDITIONS OF ELIGIBILITY.—(a) In
addition to such other provisions as the President may require, no
defense articles or related training or other defense service shall befurnished to any country on a grant basis unless it shall haveagreed that—(1) it will not, without the consent of the President—(A) permit any use of such articles or related training
or other defense service by anyone not an officer, employee, or agent of that country,
nsfer, or permit any officer, employee, or agent of thatcountry to transfer such articles or related training orother defense service by gift, sale, or otherwise, or(C) use or permit the use of such articles or related
training or other defense service for purposes other thanthose for which furnished;(2) it will maintain the security of such articles or related
training or other defense service, and will provide substantiallythe same degree of security protection afforded to such articles
or related training or other defense service by the UnitedStates Government;(3) it will, as the President may require, permit continuous
observation and review by, and furnish necessary information
to, representatives of the United States Government with regard to the use of such articles or related training or other defense service; and(4) unless the President consents to other disposition, it
will return to the United States Government for such use ordisposition as the President considers in the best interests of
the United States, such articles or related training or other defense service which are no longer needed for the purposes forwhich furnished.
(b) No defense articles shall be furnished on a grant basis toany country at a cost in excess of $3,000,000 in any fiscal year unless the President determines—(1) that such country conforms to the purposes and principles of the Charter of the United Nations;(2) that such defense articles will be utilized by such country for the maintenance of its own defensive strength, or the
defensive strength of the free world;(3) that such country is taking all reasonable measures,consistent 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,
including 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)(1) Assistance and deliveries of assistance under this chapter to any country shall be terminated as hereinafter provided, if
such country uses defense articles or defense services furnished
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184

under this Act, the Mutual Security Act of 1954, or any predecessor
Foreign Assistance Act, in substantial violation (either in terms ofquantities or in terms of the gravity of the consequences regardlessof the quantities involved) of any agreement entered into pursuant
to any such Act (A) by using such articles or services for a purpose
not authorized under section 502 or, if such agreement provides
that such articles or services may only be used for purposes more
limited than those authorized under section 502, for a purpose notauthorized under such agreement; (B) by transferring such articles
or services to, or permitting any use of such articles or services by,anyone not an officer, employee, or agent of the recipient country
without the consent of the President; or (C) by failing to maintainthe security of such articles or services.
(2)(A) Assistance and deliveries of assistance shall be terminated pursuant to paragraph (1) of this subsection if the President
so determines and so states in writing to the Congress, or if theCongress so finds by joint resolution.
(B) The President shall report to the Congress promptly upon
the receipt of information that a violation described in paragraph(1) of this subsection may have occurred.
(3) Assistance to a country shall remain terminated in accordance with paragraph (1) of this subsection until such time as—(A) the President determines that the violation has ceased;and(B) the country concerned has given assurances satisfactory to the President that such violation will not recur.
(4) The authority contained in section 614(a) of this Act may
not be used to waive the provisions of this section with respect tofurther assistance under this chapter.
(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, thePresident 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. In addition, thePresident shall not give his consent under subsection (a)(1) or (a)(4)
to the transfer of any significant defense articles on the UnitedStates 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 acommitment 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 haveagreed that the net proceeds of sale received by such country indisposing 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 Governmentand shall be available to pay all official costs of the United States
Government payable in the currency of that country, including all
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Sec. 505

the programs authorized by the Mutual Educational and Cultural
Exchange Act of 1961. In the case of items which were delivered
prior to 1985, the President may waive the requirement that suchnet proceeds be paid to the United States Government if he determines that to do so is in the national interest of the United States.
(g)(1) It is the policy of the United States that no assistanceunder this chapter should be furnished to any foreign country, thelaws, regulations, official policies, or governmental practices ofwhich prevent any United States person (as defined in section
7701(a)(30) of the Internal Revenue Code of 1954) from participating in the furnishing of defense articles or defense services
under this chapter on the basis of race, religion, national origin, orsex.
(2)(A) No agency performing functions under this chapter shall,in employing or assigning personnel to participate in the performance of any such function, whether in the United States or abroad,take into account the exclusionary policies or practices of any foreign government where such policies or practices are based uponrace, religion, national origin, or sex.
(B) Each contract entered into by any such agency for the performance of any function under this chapter shall contain a provision to the effect that no person, partnership, corporation, or otherentity performing functions pursuant to such contract, shall, in employing or assigning personnel to participate in the performance ofany such function, whether in the United States or abroad, take
into account the exclusionary policies or practices of any foreign
government where such policies or practices are based upon race,
religion, national origin, or sex.
(3) The President shall promptly transmit reports to the
Speaker of the House of Representatives and the chairman of theCommittee on Foreign Relations of the Senate concerning any
transaction in which any United States person (as defined in section 7701(a)(30) of the Internal Revenue Code of 1954) is prevented
by a foreign government on the basis of race, religion, national origin, or sex, from participating in the furnishing of assistance under
this chapter, or education and training under chapter 5, to any foreign country. Such reports shall include (A) a description of thefacts and circumstances of any such discrimination, (B) the response thereto on the part of the United States or any agency or
employee thereof, and (C) the result of such response, if any.
(4)(A) Upon the request of the Committee on Foreign Relationsof the Senate or the Committee on Foreign Affairs of the House ofRepresentatives, the President shall, within 60 days after receipt
of such request, transmit to both such committees a statement, prepared with the assistance of the Assistant Secretary of State for
Democracy, Human Rights, and Labor, with respect to the country
designated in such request, setting forth—(ii) the response of the United States thereto and the results of such response;(iii) whether, in the opinion of the President, notwithstanding any such policies or practices—(I) extraordinary circumstances exist which necessitate
a continuation of such assistance or education and training
transaction, and, if so, a description of such circumstances
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186

and the extent to which such assistance or education andtraining transaction should be continued (subject to suchconditions as Congress may impose under this section),and(II) on all the facts it is in the national interest of theUnited States to continue such assistance or education andtraining transaction; and(iv) such other information as such committee may request.
(B) In the event a statement with respect to an assistance ortraining transaction is requested pursuant to subparagraph (A) of
this paragraph but is not transmitted in accordance therewith
within 60 days after receipt of such request, such assistance ortraining transaction shall be suspended unless and until suchstatement is transmitted.
(C)(i) In the event a statement with respect to an assistanceor training transaction is transmitted under subparagraph (A) of
this paragraph, the Congress may at any time thereafter adopt a
joint resolution terminating or restricting such assistance or training transaction.
(ii) Any such resolution shall be considered in the Senate in accordance with the provisions of section 601(b) of the International
Security Assistance and Arms Export Control Act of 1976.
(iii) The term ‘‘certification’’, as used in section 601 of such Act,means, for the purposes of this paragraph, a statement transmitted
under subparagraph (A) of this paragraph.
SEC. 506. ø22 U.S.C. 2318¿ SPECIAL AUTHORITY.—(a)(1) If the
President determines and reports to the Congress in accordancewith section 652 of this Act that—(A) an unforeseen emergency exists which requires immediate military assistance to a foreign country or internationalorganization; and(B) the emergency requirement cannot be met under theauthority of the Arms Export Control Act or any other law except this section;
he may direct, for the purposes of this part, the drawdown of defense articles from the stocks of the Department of Defense, defense services of the Department of Defense, and military educationand training, of an aggregate value of not to exceed $100,000,000
in any fiscal year.
(2)(A) If the President determines and reports to the Congress in accordance with section 652 of this Act that it is in
the national interest of the United States to draw down articles and services from the inventory and resources of any agency of the United States Government and military educationand training from the Department of Defense, the President
may direct the drawdown of such articles, services, and military education and training—(i) for the purposes and under the authorities of—(I) chapter 8 of part I (relating to international
narcotics control assistance);(II) chapter 9 of part I (relating to international
disaster assistance);
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Sec. 506(III) chapter 8 of part II (relating toantiterrorism assistance);(IV) chapter 9 of part II (relating to nonproliferation assistance); or(V) the Migration and Refugee Assistance Actof 1962; or(ii) for the purpose of providing such articles, services,and military education and training to Vietnam, Cambodia, and Laos as the President determines are necessary—(I) to support cooperative efforts to locate and repatriate members of the United States Armed Forces
and civilians employed directly or indirectly by theUnited States Government who remain unaccounted
for from the Vietnam War; and(II) to ensure the safety of United States Government personnel engaged in such cooperative efforts
and to support Department of Defense-sponsored humanitarian projects associated with such efforts.
(B) An aggregate value of not to exceed $200,000,000 inany fiscal year of such articles, services, and military educationand training may be provided pursuant to subparagraph (A) of
this paragraph—(i) not more than $75,000,000 of which may be provided from the drawdown from the inventory and resources of the Department of Defense;(ii) not more than $75,000,000 of which may be provided pursuant to clause (i)(I) of such subparagraph; and(iii) not more than $15,000,000 of which may be provided to Vietnam, Cambodia, and Laos pursuant to clause(ii) of such subparagraph.
(b)(1) The authority contained in this section shall be effective
for any such emergency only upon prior notification to the Committee on Foreign Affairs of the House of Representatives, theCommittee on Foreign Relations of the Senate, and the Committee
on Appropriations of each House of Congress. In the case ofdrawdowns authorized by subclauses (I) and (III) of subsection(a)(2)(A)(i), notifications shall be provided to those committees atleast 15 days in advance of the drawdowns in accordance with theprocedures applicable to reprogramming notifications under section
634A.
(2) The President shall keep the Congress fully and currently
informed of all defense articles, defense services, and military education and training provided under this section, including providing
the Congress with a report detailing all defense articles, defense
services, and military education and training delivered to the recipient country or international organization upon delivery of sucharticles or upon completion of such services or education and training. Such report shall also include whether any savings were realized by utilizing commercial transport services rather than acquiring those services from United States Government transport assets.
(c) For the purposes of any provision of law that authorizes thedrawdown of defense or other articles or commodities, or defense
or other services from an agency of the United States Government,
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188

such drawdown may include the supply of commercial transportation and related services that are acquired by contract for the
purposes of the drawdown in question if the cost to acquire suchcommercial transportation and related services is less than the costto the United States Government of providing such services fromexisting agency assets.
(d) There are authorized to be appropriated to the President
such sums as may be necessary to reimburse the applicable appropriation, fund, or account for defense articles, defense services, andmilitary education and training provided under this section.
SEC. 507. RESTRICTIONS ON MILITARY AID TO LATIN AMERICA.—øRepealed—1973¿
SEC. 508. RESTRICTIONS ON MILITARY AID TO AFRICA.— øRepealed—1973¿
SEC. 509. CERTIFICATION OF RECIPIENT’S CAPABILITY.— øRepealed—1973¿
SEC. 510. RESTRICTIONS ON TRAINING FOREIGN MILITARY STUDENTS.— øRepealed—1976¿
SEC. 511. ø22 U.S.C. 2321d¿ CONSIDERATIONS IN FURNISHINGMILITARY ASSISTANCE.—Decisions to furnish military assistancemade under this part shall take into account whether such assistance 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 multilateralarms control arrangements.
SEC. 512. MILITARY ASSISTANCE ADVISORY GROUPS AND MISSIONS.— øRepealed—1973¿
SEC. 513. MILITARY ASSISTANCE AUTHORIZATIONS FOR THAILAND AND LAOS, AND SOUTH VIETNAM.— * * * øRepealed—1981¿
SEC. 514. ø22 U.S.C. 2321h¿ STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES.—(a) No defense article in the inventory of the Department of Defense which is set aside, reserved, orin any way earmarked or intended for future use by any foreigncountry may be made available to or for use by any foreign country
unless such transfer is authorized under this Act or the Arms Export Control Act, or any subsequent corresponding legislation, andthe value of such transfer is charged against funds authorizedunder such legislation or against the limitations specified in such
legislation, as appropriate, for the fiscal period in which such defense article is transferred. For purposes of this subsection, ‘‘value’’means the acquisition cost plus crating, packing, handling, andtransportation costs incurred in carrying out this section.
(b)(1) The value of defense articles to be set aside, earmarked,
reserved, or intended for use as war reserve stocks for allied orother foreign countries (other than for purposes of the North Atlantic Treaty Organization or in the implementation of agreementswith Israel) in stockpiles located in foreign countries may not exceed in any fiscal year an amount that is specified in security assistance authorizing legislation for that fiscal year.
(2)(A) The value of such additions to stockpiles of defense articles in foreign countries shall not exceed $200,000,000 for each of
fiscal years 2013, 2014, 2015, 2016, 2017, 2018, 2019, and 2020.
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Sec. 515(B) Of the amount specified in subparagraph (A) for a fiscal
year, not more than $200,000,000 may be made available for stockpiles in the State of Israel.
(c) LOCATION OF STOCKPILES OF DEFENSE ARTICLES.—(1) LIMITATION.—Except as provided in paragraph (2), no
stockpile of defense articles may be located outside the boundaries of a United States military base or a military base usedprimarily by the United States.
(2) EXCEPTIONS.—Paragraph (1) shall not apply with respect to stockpiles of defense articles located in the Republic ofKorea, Thailand, any country that is a member of the North
Atlantic Treaty Organization, any country that is a major nonNATO ally, or any other country the President may designate.
At least 15 days before designating a country pursuant to thelast clause of the preceding sentence, the President shall notify
the congressional committees specified in section 634A(a) in accordance with the procedures applicable to reprogramming notifications under that section.
(d) No defense article transferred from any stockpile which ismade available to or for use by any foreign country may be considered an excess defense article for the purpose of determining thevalue thereof.
SEC. 515. ø22 U.S.C. 2321i¿ OVERSEAS MANAGEMENT OF ASSISTANCE AND SALES PROGRAMS.—(a) In order to carry out his responsibilities for the management of international security assistance programs conducted under this chapter, chapter 5 of this part,and the Arms Export Control Act, the President may assign members of the Armed Forces of the United States to a foreign country
to perform one or more of the following functions:(1) equipment and services case management;(2) training management;(3) program monitoring;(4) evaluation and planning of the host government’s military capabilities and requirements;(5) administrative support;(6) promoting rationalization, standardization, interoperability, and other defense cooperation measures; and(7) liaison functions exclusive of advisory and training assistance.
(b) Advisory and training assistance conducted by military personnel assigned under this section shall be kept to an absolute
minimum. It is the sense of the Congress that advising and training assistance in countries to which military personnel are assigned under this section shall be provided primarily by other personnel who are not assigned under this section and who are detailed for limited periods to perform specific tasks.
(c)(1) The number of members of the Armed Forces assigned toa foreign country under this section may not exceed six unless specifically authorized by the Congress. The President may waive thislimitation if he determines and reports to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairsof the House of Representatives, 30 days prior to the introductionof the additional military personnel, that United States national interests require that more than six members of the Armed Forces
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190

be assigned under this section to carry out international security
assistance programs in a country not specified in this paragraph.
Pakistan, Tunisia, El Salvador, Honduras, Colombia, Indonesia, theRepublic of Korea, the Philippines, Thailand, Egypt, Jordan, Morocco, Saudi Arabia, Greece, Portugal, Spain, and Turkey are authorized to have military personnel strengths larger than six under
this section to carry out international security assistance programs.
(2) The total number of members of the Armed Forces assigned
under this section to a foreign country in a fiscal year may not exceed the number justified to the Congress for that country in the
congressional presentation materials for that fiscal year, unless theCommittee on Foreign Relations of the Senate and the Committee
on Foreign Affairs of the House of Representatives are notified 30
days in advance of the introduction of the additional military personnel.
(d) Effective October 1, 1989, the entire costs (excluding salaries of the United States military personnel other than the Coast
Guard) of overseas management of international security assistance programs under this section shall be charged to or reimbursed
from funds made available to carry out this chapter or the Arms
Export Control Act, other than any such costs which are either
paid directly for such defense services under section 21(a) of theArms Export Control Act or reimbursed from charges for services
collected from foreign governments pursuant to section 21(e) andsection 43(b) of that Act.
(e) Members of the Armed Forces assigned to a foreign country
under this section shall serve under the direction and supervisionof the Chief of the United States Diplomatic Mission to that country.
(f) The President shall continue to instruct United States diplomatic and military personnel in the United States missions abroadthat they should not encourage, promote, or influence the purchaseby any foreign country of United States-made military equipment,
unless they are specifically instructed to do so by an appropriate
official of the executive branch.
SEC. 516. ø22 U.S.C. 2321j¿ AUTHORITY TO TRANSFER EXCESS DEFENSE
ARTICLES.
(a) AUTHORIZATION.—The President is authorized to transfer

excess defense articles under this section to countries for which receipt of such articles was justified pursuant to the annual congressional presentation documents for military assistance programs, orfor programs under chapter 8 of part I of this Act, submitted under
section 634 of this Act, or for which receipt of such articles was
separately justified to the Congress, for the fiscal year in which thetransfer is authorized.
(b) LIMITATIONS ON TRANSFERS.—(1) The President may transfer excess defense articles under this section only if—(A) such articles are drawn from existing stocks of the Department of Defense;(B) funds available to the Department of Defense for the
procurement of defense equipment are not expended in connection with the transfer;(C) the transfer of such articles will not have an adverse
impact on the military readiness of the United States;
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Sec. 516(D) with respect to a proposed transfer of such articles ona grant basis, such a transfer is preferable to a transfer on asales basis, after taking into account the potential proceeds
from, and likelihood of, such sales, and the comparative foreign
policy benefits that may accrue to the United States as the result of a transfer on either a grant or sales basis;(E) the President determines that the transfer of such articles will not have an adverse impact on the national technology
and industrial base and, particularly, will not reduce the opportunities of entities in the national technology and industrial
base to sell new or used equipment to the countries to whichsuch articles are transferred; and(F) the transfer of such articles is consistent with the policy framework for the Eastern Mediterranean establishedunder section 620C of this Act.
(2) Accordingly, for the four-year period beginning on October
1, 1996, and thereafter for the four-period 32 beginning on October
1, 2000, the President shall ensure that excess defense articles offered to Greece and Turkey under this section will be made available consistent with the manner in which the President madeavailable such excess defense articles during the four-year periodthat began on October 1, 1992, pursuant to section 573(e) of theForeign Operations, Export Financing, and Related Programs Appropriations Act, 1990.
(c) TERMS OF TRANSFERS.—(1) NO COST TO RECIPIENT COUNTRY.—Excess defense articles may be transferred under this section without cost to therecipient country.
(2) PRIORITY.—Notwithstanding any other provision of law,the delivery of excess defense articles under this section tomember countries of the North Atlantic Treaty Organization(NATO) on the southern and southeastern flank of NATO, tomajor non-NATO allies on such southern and southeastern
flank, and to the Philippines shall be given priority to the maximum extent feasible over the delivery of such excess defense
articles to other countries.
(d) WAIVER OF REQUIREMENT FOR REIMBURSEMENT OF DEPARTMENT OF DEFENSE EXPENSES.—Section 632(d) shall not apply withrespect to transfers of excess defense articles (including transportation and related costs) under this section.
(e) TRANSPORTATION AND RELATED COSTS.—(1) IN GENERAL.—Except as provided in paragraph (2),funds available to the Department of Defense may not be expended for crating, packing, handling, and transportation ofexcess defense articles transferred under the authority of thissection.
(2) EXCEPTION.—The President may provide for the transportation of excess defense articles without charge to a country
for the costs of such transportation if—(A) it is determined that it is in the national interestof the United States to do so;
32 So in law. Should probably be ‘‘four-year period’’.

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Sec. 516

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

192(B) the recipient is a developing country receiving lessthan $10,000,000 of assistance under chapter 5 of this partof this Act (relating to international military educationand training) or section 23 of the Arms Export Control Act(22 U.S.C. 2763; relating to the Foreign Military Financing
program) in the fiscal year in which the transportation isprovided;(C) the total weight of the transfer does not exceed
50,000 pounds; and(D) such transportation is accomplished on a space
available basis.
(f) ADVANCE NOTIFICATION TO CONGRESS FOR TRANSFER OF
CERTAIN EXCESS DEFENSE ARTICLES.—(1) IN GENERAL.—The President may not transfer excess
defense articles that are significant military equipment (as defined in section 47(9) of the Arms Export Control Act) or excess
defense articles valued (in terms of original acquisition cost) at$7,000,000 or more, under this section or under the Arms Export Control Act (22 U.S.C. 2751 et seq.) until 30 days after thedate on which the President has provided notice of the proposed transfer to the congressional committees specified in section 634A(a) in accordance with procedures applicable to reprogramming notifications under that section.
(2) CONTENTS.—Such notification shall include—(A) a statement outlining the purposes for which thearticle is being provided to the country, including whether
such article has been previously provided to such country;(B) an assessment of the impact of the transfer on the
military readiness of the United States;(C) an assessment of the impact of the transfer on thenational technology and industrial base and, particularly,
the impact on opportunities of entities in the national technology and industrial base to sell new or used equipment
to the countries to which such articles are to be transferred; and(D) a statement describing the current value of sucharticle and the value of such article at acquisition.
(g) AGGREGATE ANNUAL LIMITATION.—(1) IN GENERAL.—The aggregate value of excess defense articles transferred to countries under this section in any fiscal
year may not exceed $500,000,000.
(2) EFFECTIVE DATE.—The limitation contained in paragraph (1) shall apply only with respect to fiscal years beginning after fiscal year 1996.
(h) CONGRESSIONAL PRESENTATION DOCUMENTS.—Documents
described in subsection (a) justifying the transfer of excess defense
articles shall include an explanation of the general purposes of providing excess defense articles as well as a table which provides anaggregate annual total of transfers of excess defense articles in thepreceding year by country in terms of offers and actual deliveries
and in terms of acquisition cost and current value. Such table shallindicate whether such excess defense articles were provided on a
grant or sale basis.
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Sec. 524(i) EXCESS COAST GUARD PROPERTY.—For purposes of this section, the term ‘‘excess defense articles’’ shall be deemed to include
excess property of the Coast Guard, and the term ‘‘Department of
Defense’’ shall be deemed, with respect to such excess property, toinclude the Coast Guard.
SEC. 517. ø22 U.S.C. 2321k¿ DESIGNATION OF MAJOR NON-NATO ALLIES.
(a) NOTICE TO CONGRESS.—The President shall notify the Con-

gress in writing at least 30 days before—(1) designating a country as a major non-NATO ally for
purposes of this Act and the Arms Export Control Act (22U.S.C. 2751 et seq.); or(2) terminating such a designation.
(b) INITIAL DESIGNATIONS.—Australia, Egypt, Israel, Japan, theRepublic of Korea, and New Zealand shall be deemed to have been
so designated by the President as of the effective date of this section, and the President is not required to notify the Congress ofsuch designation of those countries.
øSecs. 518–520. Repealed by Public Law 104–164.¿
CHAPTER 3—FOREIGN MILITARY SALES
SEC. 521. ADMINISTRATION OF SALES PROGRAMS INVOLVING DEFENSE ARTICLES AND SERVICES.— øRepealed—1968¿
SEC. 522. SALES FROM STOCK.— øRepealed—1968¿
SEC. 523. PROCUREMENT OF SALES.— øRepealed—1968¿
SEC. 524. ø22 U.S.C. 2344¿ REIMBURSEMENTS.—(a) Wheneverfunds made available for use under this part have been or are used
to furnish military assistance on cash or credit terms, UnitedStates dollar repayments, including dollar proceeds derived fromthe sale of foreign currency repayments to any agency or programof the United States Government, receipts received from the disposition of evidences of indebtedness and charges (including feesand premiums) or interest collected shall be credited to a separate
fund account and, shall be available until expended solely for the
purposes of financing sales and guaranties, including the overhead
costs thereof, and, notwithstanding any provision of law relating toreceipts and credits accruing to the United States Government, repayment in foreign currency may be used to carry out this part.
Such amounts of the appropriations made available under this part(including unliquidated balances of funds heretofore obligated forfinancing sales and guarantees) as may be determined by the
President shall be transferred to, and merged with the separate
fund account.
(b)(1) The special fund account established under subsection (a)of this section shall terminate as of the end of June 30, 1968, oron such earlier date as may be selected by the President.
(2) Upon the termination of such fund account pursuant toparagraph (1), all of the assets of such fund account (includingloans and other payments receivable) shall be transferred to a special account in the Treasury, which special account shall be available solely for the purpose of discharging outstanding liabilities
and obligations of the United States arising out of credit sales
agreements entered into, and guaranties issued, under this part,
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194

prior to June 30, 1968. Any moneys in such special account in excess of the aggregate United States dollar amount of such liabilities
and obligations shall be transferred from time to time to the general fund of the Treasury.
(3) øRepealed—1968¿
SEC. 525. GUARANTIES.— øRepealed—1968¿
CHAPTER 4—ECONOMIC SUPPORT FUND
NOTE.—Section 202 of the Foreign Assistance Act of 1971 transferred the former Chapter 4 of Part I governing supporting assistance to its present location as Chapter 4 of Part II of the Act. Section 202(b) of the Foreign Assistance Act of 1971 provides as follows:‘‘Chapter 4 of part I of the Foreign Assistance Act of 1961is hereby repealed. References to such chapter or any sections
thereof shall hereafter be deemed to be references to chapter 4of part II of the Foreign Assistance Act of 1961, as added bysubsection (a) of this section, or to appropriate sections thereof.
All references to part I of the Foreign Assistance Act of 1961
shall hereafter be deemed to be references also to chapter 4 ofpart II, and all references to part II of such Act shall be deemed
not to include chapter 4 of such Part II.’’.
In changing the title of chapter 4 from Security Supporting Assistance to Economic Support Fund, Sec. 10(b)(6) of the International Security Assistance Act of 1978 (92 Stat. 735) stated that,after September 30, 1978, any reference to security supporting assistance shall be deemed a reference to assistance provided underchapter 4 of part II of this Act.
SEC. 531. ø22 U.S.C. 2346¿ AUTHORITY.—(a) The Congress recognizes that, under special economic, political, or security conditions, the national interests of the United States may require economic support for countries in amounts which could not be justified
solely under chapter 1 of part I or, in the case of countries in subSaharan Africa, chapter 10 of part I. In such cases, the President
is authorized to furnish assistance to countries and organizations,on such terms and conditions as he may determine, in order to promote economic or political stability. To the maximum extent feasible, the President shall provide assistance under this chapter consistent with the policy directions, purposes, and programs of part
I of this Act.
(b) The Secretary of State shall be responsible for policy decisions and justifications for economic support programs under thischapter, including determinations of whether there will be an economic support program for a country and the amount of the program for each country. The Secretary shall exercise this responsibility in cooperation with the Administrator of the agency primarily
responsible for administering part I of this Act.
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Sec. 534

chapter. Such material shall include, but not be limited to, information concerning the amounts and kinds of cash grant transfers,
the amounts and kinds of budgetary and balance-of-payments support provided, and the amounts and kinds of project assistance provided with funds made available under this chapter.
(d) øRepealed by section 533(a)(5) of Public Law 105–277 (112
Stat. 2681–2681–180).¿(e) Amounts appropriated to carry out this chapter shall beavailable for economic programs and may not be used for militaryor paramilitary purposes.
SEC. 532. ø22 U.S.C. 2346a¿ AUTHORIZATIONS OF APPROPRIATIONS.—(a) There are authorized to be appropriated to the President to carry out the purposes of this chapter—(1) $2,015,000,000 for the fiscal year 1986 and$2,015,000,000 for the fiscal year 1987 for the following countries signing the Camp David agreement: Israel and Egypt;
and(2) $1,785,000,000 for the fiscal year 1986 and$1,785,000,000 for the fiscal year 1987 for assistance under
this chapter for recipients or purposes other than the countries
referred to in paragraph (1).
(b) Amounts appropriated to carry out this chapter are authorized to remain available until expended.
SEC. 533. ø22 U.S.C. 2346b¿ EMERGENCY ASSISTANCE.—(a) Of
the funds appropriated to carry out this chapter up to $75,000,000
for the fiscal year 1986 and up to $75,000,000 for the fiscal year
1987 may be made available for emergency use under this chapter
when the national interests of the United States urgently require
economic support to promote economic or political stability.
(b) Notwithstanding any provision of this chapter or of an appropriations act (including a joint resolution making continuing appropriations) which earmarks funds available to carry out thischapter for a specific country or purpose, up to 5 percent of eachamount so earmarked may be used to carry out this section.
SEC. 534. ø22 U.S.C. 2346c¿ ADMINISTRATION OF JUSTICE.—(a)The President may furnish assistance under this chapter to countries and organizations, including national and regional institutions, in order to strengthen the administration of justice in countries in Latin America and the Caribbean.
(b) Assistance under this section may only include—(1) support for specialized professional training, scholarships, and exchanges for continuing legal education;(2) programs to enhance prosecutorial and judicial capabilities and protection for participants in judicial cases;(3) notwithstanding section 660 of this Act—
(A) programs to enhance professional capabilities tocarry out investigative and forensic functions conductedunder judicial or prosecutorial control;(B) programs to assist in the development of academic
instruction and curricula for training law enforcement personnel;(C) programs to improve the administrative and management capabilities of law enforcement agencies, especially their capabilities relating to career development,
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personnel evaluation, and internal discipline procedures;and(D) programs, conducted through multilateral or regional institutions, to improve penal institutions and therehabilitation of offenders;(4) strengthening professional organizations in order topromote services to members and the role of the bar in judicial
selection, enforcement of ethical standards, and legal reform;(5) increasing the availability of legal materials and publications;(6) seminars, conferences, and training and educational
programs to improve the administration of justice and tostrengthen respect for the rule of law and internationally recognized human rights; and(7) revision and modernization of legal codes and procedures.
(c) Not more than $20,000,000 of the funds made available tocarry out this chapter for any fiscal year shall be available to carryout this section, in addition to amounts otherwise available forsuch purposes.
(d) Funds may not be obligated for assistance under this section unless the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate
are notified of the amount and nature of the proposed assistanceat least 15 days in advance in accordance with the procedures applicable to reprogrammings pursuant to section 634A of this Act.
(e) Personnel of the Department of Defense and members of
the United States Armed Forces may not participate in the provision of training under this section. Of the funds made available tocarry out this section, not more than $10,000,000 may be madeavailable in fiscal year 1991 to carry out the provisions of subsection (b)(3) of this section. The authority of this section shall expire on September 30, 1991.
SEC. 535. ECONOMIC SUPPORT FOR DISADVANTAGED SOUTH AFRICANS.— øRepealed—1993¿
CHAPTER 5—INTERNATIONAL MILITARY EDUCATION AND TRAINING
SEC. 541. ø22 U.S.C. 2347¿ GENERAL AUTHORITY.—(a) The
President is authorized to furnish, on such terms and conditions
consistent with this Act as the President may determine (butwhenever feasible on a reimbursable basis), military education andtraining to military and related civilian personnel of foreign countries. Such civilian personnel shall include foreign governmental
personnel of ministries other than ministries of defense, and may
also include legislators and individuals who are not members of thegovernment, if the military education and training would (i) contribute to responsible defense resource management, (ii) foster
greater respect for and understanding of the principle of civilian
control of the military, (iii) contribute to cooperation between military and law enforcement personnel with respect to counternarcotics law enforcement efforts, or (iv) improve military justicesystems and procedures in accordance with internationally recogJune 10, 2019

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197

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Sec. 544

nized human rights. Such training and education may be provided
through—(1) attendance at military educational and training facilities in the United States (other than Service academies) andabroad;(2) attendance in special courses of instruction at schools
and institutions of learning or research in the United States
and abroad; and(3) observation and orientation visits to military facilities
and related activities in the United States and abroad.
(b) The President shall seek reimbursement for military education and training furnished under this chapter from countries
using assistance under section 23 of the Arms Export Control Act(22 U.S.C. 2763, relating to the Foreign Military Financing Program) to purchase such military education and training at a ratecomparable to the rate charged to countries receiving grant assistance for military education and training under this chapter.
SEC. 542. ø22 U.S.C. 2347a¿ AUTHORIZATION.—There are authorized to be appropriated to the President to carry out the purposes of this chapter $56,221,000 for the fiscal year 1986 and$56,221,000 for the fiscal year 1987.
SEC. 543. ø22 U.S.C. 2347b¿ PURPOSES.—Education and training activities conducted under this chapter shall be designed—(1) to encourage effective and mutually beneficial relations
and increased understanding between the United States andforeign countries in furtherance of the goals of international
peace and security;(2) to improve the ability of participating foreign countries
to utilize their resources, including defense articles and defense services obtained by them from the United States, withmaximum effectiveness, thereby contributing to greater self-reliance by such countries; and(3) to increase the awareness of nationals of foreign countries participating in such activities of basic issues involving
internationally recognized human rights.
SEC. 544. ø22 U.S.C. 2347c¿ EXCHANGE TRAINING.—(a) In carrying out this chapter, the President is authorized to provide for attendance of foreign military personnel at professional military education institutions in the United States (other than service academies) without charge, and without charge to funds available tocarry out this chapter (notwithstanding section 632(d) of this Act),
if such attendance is pursuant to an agreement providing for theexchange of students on a one-for-one, reciprocal basis each fiscal
year between those United States professional military education
institutions and comparable institutions of foreign countries andinternational organizations.
(b) The President may provide for the attendance of foreign
military and civilian defense personnel at flight training schools
and programs (including test pilot schools) in the United States
without charge, and without charge to funds available to carry out
this chapter (notwithstanding section 632(d) of this Act), if such attendance is pursuant to an agreement providing for the exchangeof students on a one-for-one basis each fiscal year between those
United States flight training schools and programs (including test
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198

pilot schools) and comparable flight training schools and programsof foreign countries.
(c)(1) The President is authorized to enter into cooperative arrangements providing for the participation of foreign and UnitedStates military and civilian defense personnel in post-undergraduate flying training and tactical leadership programs and integrated air and missile defense programs at training locations inSouthwest Asia without charge to participating foreign countries,
and without charge to funds available to carry out this chapter(notwithstanding section 632(d) of this Act). Such training mustsatisfy common requirements with the United States for post-undergraduate flying and tactical leadership training and integrated
air and missile defense training.
(2) Cooperative arrangements under this subsection shall require an equitable contribution of support and services from eachparticipating country. The President may waive the requirement
for an equitable contribution of a participating foreign country if hedetermines that to do so is important to the national security interests of the United States.
(3) Costs incurred by the United States shall be charged to thecurrent applicable appropriations accounts or funds of the participating United States Government agencies.
(4) The President shall report to the appropriate congressional
committees (as defined in section 656(e)) annually on the activities
undertaken in the programs authorized under this subsection.
SEC. 545. ø22 U.S.C. 2347d¿ TRAINING IN MARITIME SKILLS.—
The President is encouraged to allocate a portion of the funds madeavailable each fiscal year to carry out this chapter for use in providing education and training in maritime search and rescue, operation and maintenance of aids to navigation, port security, at-sea
law enforcement, international maritime law, and general maritime
skills.
SEC. 546. ø22 U.S.C. 2347e¿ PROHIBITION ON GRANT ASSISTANCE FOR
CERTAIN HIGH INCOME FOREIGN COUNTRIES.
(a) IN GENERAL.—None of the funds made available for a fiscal

year for assistance under this chapter may be made available forassistance on a grant basis for any of the high-income foreign countries described in subsection (b) for military education and trainingof military and related civilian personnel of such country.
(b) HIGH-INCOME FOREIGN COUNTRIES DESCRIBED.—The highincome foreign countries described in this subsection are Austria,
Finland, the Republic of Korea, Singapore, and Spain.
SEC. 547. ø22 U.S.C. 2347f¿ CONSULTATION REQUIREMENT.

The selection of foreign personnel for training under this chapter shall be made in consultation with the United States defense
attache to the relevant country.
SEC. 548. ø22 U.S.C. 2347g¿ RECORDS REGARDING FOREIGN PARTICIPANTS.
(a) DEVELOPMENT AND MAINTENANCE OF DATABASE.—In order

to contribute most effectively to the development of military professionalism in foreign countries, the Secretary of Defense shall develop and maintain a database containing records on each foreign
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199

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Sec. 552

training activities conducted under this chapter after December 31,
2000. This record shall include the type of instruction received, thedates of such instruction, whether such instruction was completed
successfully, and, to the extent practicable, a record of the person’s
subsequent military or defense ministry career and current positionand location.
(b) ANNUAL LIST OF FOREIGN PERSONNEL.—For the purposes ofpreparing the report required pursuant to section 549 of this Act,
the Secretary of State may annually request the Secretary of Defense to provide information contained in the database, with respect to a list submitted to the Secretary of Defense by the Secretary of State, that contains the names of foreign personnel ormilitary units. To the extent practicable, the Secretary of Defense
shall provide, and the Secretary of State may take into account, theinformation contained in the database, if any, relating to the Secretary of State’s submission.
(c) UPDATING OF DATABASE.—If the Secretary of State determines and reports to Congress under section 549 of this Act thata foreign person identified in the database maintained pursuant tothis section was involved in a violation of internationally recognized human rights, the Secretary of Defense shall ensure that the
database is updated to contain such fact and all relevant information.
SEC. 549. ø22 U.S.C. 2347h¿ HUMAN RIGHTS REPORT.
(a) IN GENERAL.—Not later than March 1 of each year, the Sec-

retary of State shall submit to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate
a report describing, to the extent practicable, any involvement of
a foreign military or defense ministry civilian participant in education and training activities under this chapter in a violation ofinternationally recognized human rights reported under section
116(d) of this Act subsequent to such participation.
(b) FORM.—The report described in subsection (a) shall be in
unclassified form, but may include a classified annex.
CHAPTER 6—PEACEKEEPING OPERATIONS
SEC. 551. ø22 U.S.C. 2348¿ GENERAL AUTHORITY.—The President is authorized to furnish assistance to friendly countries andinternational organizations, on such terms and conditions as hemay determine, for peacekeeping operations and other programs
carried out in furtherance of the national security interests of theUnited States. Such assistance may include reimbursement to the
Department of Defense for expenses incurred pursuant to section
7 of the United Nations Participation Act of 1945, except that such
reimbursements may not exceed $5,000,000 in any fiscal year unless a greater amount is specifically authorized by this section.
SEC. 552. ø22 U.S.C. 2348a¿ AUTHORIZATION OF APPROPRIATIONS.—(a) There are authorized to be appropriated to the President to carry out the purposes of this chapter, in addition toamounts otherwise available for such purposes, $37,000,000 for the
fiscal year 1986 and $37,000,000 for the fiscal year 1987.
(b) Amounts appropriated under this section are authorized toremain available until expended.
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Sec. 553

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

200(c) If the President determines that, as the result of an unforeseen emergency, the provision of assistance under this chapter inamounts in excess of funds otherwise available for such assistanceis important to the national interests of the United States, thePresident may (1) exercise the authority of section 610(a) of thisAct to transfer funds available to carry out chapter 4 of this partfor use under this chapter without regard to the 20-percent increase limitation contained in such section, except that the total
amount so transferred in any fiscal year may not exceed$15,000,000; and (2) in the event the President also determinesthat such unforeseen emergency requires the immediate provisionof assistance under this chapter, direct the drawdown of commodities and services from the inventory and resources of any agencyof the United States Government of an aggregate value not to exceed $25,000,000 in any fiscal year.
(d) There are authorized to be appropriated to the President
such sums as may be necessary to reimburse the applicable appropriation, fund, or account for commodities and services provided
under subsection (c)(2).
SEC. 553. ø22 U.S.C. 2348c¿ ADMINISTRATIVE AUTHORITIES.—
Except where expressly provided to the contrary, any reference inany law to part I of this Act shall be deemed to include reference
to this chapter and any reference in any law to part II of this Act
shall be deemed to exclude reference to this chapter.
SEC. 554. ø22 U.S.C. 2348d¿ DATA ON COSTS INCURRED IN SUPPORT OF
UNITED NATIONS PEACEKEEPING OPERATIONS.
(a) UNITED STATES COSTS.—The President shall annually pro-vide to the Secretary General of the United Nations data regarding
all costs incurred by the United States Department of Defense during the preceding year in support of all United Nations Security
Council resolutions as reported to the Congress pursuant to section
8079 of the Department of Defense Appropriations Act, 1998.
(b) UNITED NATIONS MEMBER COSTS.—The President shall request that the United Nations compile and publish information
concerning costs incurred by United Nations members in supportof such resolutions.
CHAPTER 7—AIR BASE CONSTRUCTION IN ISRAEL
SEC. 561. ø22 U.S.C. 2349¿ GENERAL AUTHORITY.—The President is authorized—(1) to construct such air bases in Israel for the Government of Israel as may be agreed upon between the Governmentof Israel and the Government of the United States to replace
the Israeli airbases located at Etzion and Etam on the Sinai
peninsula that are to be evacuated by the Government ofIsrael; and(2) for purposes of such construction, to furnish as a grantto the Government of Israel, on such terms and conditions as
the President may determine, defense articles and defense
services, which he may acquire from any source, of a value not
to exceed the amount appropriated pursuant to section 562(a).
SEC. 562. ø22 U.S.C. 2349a¿ AUTHORIZATION AND UTILIZATION
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201

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Sec. 572

dent to carry out this chapter not to exceed $800,000,000, which
may be made available until expended.
(b) Upon agreement by the Government of Israel to provide to
the Government of the United States funds equal to the difference
between the amount required to complete the agreed construction
work and the amount appropriated pursuant to subsection (a) of
this section, and to make those funds available, in advance of thetime when payments are due, in such amounts and at such times
as may be required by the Government of the United States tomeet those additional costs of construction, the President may
incur obligations and enter into contracts to the extent necessary
to complete the agreed construction work, except that this authority shall be effective only to such extent or in such amounts as areprovided in advance in appropriation Acts.
(c) Funds made available by the Government of Israel pursuant to subsection (b) of this section may be credited to the appropriation account established to carry out the purposes of this section for the payment of obligations incurred and for refund to theGovernment of Israel if they are unnecessary for that purpose, as
determined by the President. Credits and the proceeds of guaranteed loans made available to the Government of Israel pursuant to
the Arms Export Control Act, as well as any other source of financing available to it, may be used by Israel to carry out its undertaking to provide such additional funds.
SEC. 563. ø22 U.S.C. 2349b¿ WAIVER AUTHORITIES.—(a) It is
the sense of the Congress that the President should take all necessary measures consistent with law to insure the efficient andtimely completion of the construction authorized by this chapter,
including the exercise of authority vested in him by section 633(a)of this Act.
CHAPTER 8—ANTITERRORISM ASSISTANCE
SEC. 571. ø22 U.S.C. 2349aa¿ GENERAL AUTHORITY.—Notwithstanding any other provision of law that restricts assistance to foreign countries (other than sections 502B and 620A of this Act), thePresident is authorized to furnish, on such terms and conditions as
the President may determine, assistance to foreign countries inorder to enhance the ability of their law enforcement personnel todeter terrorists and terrorist groups from engaging in international
terrorist acts such as bombing, kidnaping, assassination, hostage
taking, and hijacking. Such assistance may include training services and the provision of equipment and other commodities related
to bomb detection and disposal, management of hostage situations,
physical security, and other matters relating to the detection, deterrence, and prevention of acts of terrorism, the resolution of terrorist incidents, and the apprehension of those involved in such
acts.
SEC. 572. ø22 U.S.C. 2349aa–1¿ PURPOSES.—Activities conducted under this chapter shall be designed—(1) to enhance the antiterrorism skills of friendly countries
by providing training and equipment to deter and counter terrorism;
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Sec. 573

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

202(2) to strengthen the bilateral ties of the United Stateswith friendly governments by offering concrete assistance inthis area of great mutual concern; and(3) to increase respect for human rights by sharing withforeign civil authorities modern, humane, and effective
antiterrorism techniques.
SEC. 573. ø22 U.S.C. 2349aa–2¿ LIMITATIONS.—(a) Whenever
the President determines it to be consistent with and in furtherance of the purposes of this chapter, and on such terms and conditions consistent with this Act as he may determine, any agency of
the United States Government is authorized to furnish services andcommodities, without charge to funds available to carry out thischapter, to an eligible foreign country, subject to payment in advance of the value thereof (within the meaning of section 644(m))
in United States dollars by the foreign country. Credits and theproceeds of guaranteed loans made available to such countries pursuant to the Arms Export Control Act shall not be used for suchpayments. Collections under this chapter shall be credited to thecurrently applicable appropriation, account, or fund of the agency
providing such services and commodities and shall be available forthe purposes for which such appropriation, account, or fund is authorized to be used.
(b) The Assistant Secretary of State for Democracy, Human
Rights, and Labor shall be consulted in the determinations of theforeign countries that will be furnished assistance under this chapter and determinations of the nature of assistance to be furnishedto each such country.
(c)(1) 33 Arms and ammunition may be provided under thischapter only if they are directly related to antiterrorism assistance.
(2) The value (in terms of original acquisition cost) of all equipment and commodities provided under this chapter in any fiscal
year shall not exceed 30 percent of the funds made available tocarry out this chapter for that fiscal year.
(d) This chapter does not apply to information exchange activities conducted by agencies of the United States Government underother authority for such purposes.
SEC. 574. ø22 U.S.C. 2349aa–4¿ AUTHORIZATIONS OF APPROPRIATIONS.—(a) There are authorized to be appropriated to the
President to carry out this chapter $72,000,000 for fiscal year 2001,$73,000,000 for fiscal year 2002, and $64,200,000 for fiscal year
2003.
(b) Amounts appropriated under this section are authorized toremain available until expended.
SEC. 575. ø22 U.S.C. 2349aa–5¿ ADMINISTRATIVE AUTHORITIES.—Except where expressly provided to the contrary, any reference in any law to part I of this Act shall be deemed to include
reference to this chapter and any reference in any law to part IIof this Act shall be deemed to exclude reference to this chapter.
SEC. 577. øRepealed—1985¿
33 The amendment made by section 121(b)(4) of Public Law 104–164 (110 Stat. 1428) could
not be executed due to the amendment made by section 328(a)(2) of Public Law 104–132 (110
Stat. 1257) which amended subsection (d) (subsequently redesignated as subsection (c) by section 121(b)(3) of Public Law 104–164 (110 Stat. 1428)) to read as follows.

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Sec. 583

CHAPTER 9—NONPROLIFERATION AND EXPORTCONTROL ASSISTANCE
SEC. 581. ø22 U.S.C. 2349bb¿ PURPOSES.

The purposes of assistance under this chapter are to halt the
proliferation of nuclear, chemical, and biological weapons, and conventional weaponry, through support of activities designed—(1) to enhance the nonproliferation and export control capabilities of friendly countries by providing training and equipment to detect, deter, monitor, interdict, and counter proliferation;(2) to strengthen the bilateral ties of the United Stateswith friendly governments by offering concrete assistance inthis area of vital national security interest;(3) to accomplish the activities and objectives set forth insections 503 and 504 of the FREEDOM Support Act (22 U.S.C.
5853, 5854), without regard to the limitation of those sections
to the independent states of the former Soviet Union; and(4) to promote multilateral activities, including cooperation
with international organizations, relating to nonproliferation.
SEC. 582. ø22 U.S.C. 2349bb–1¿ AUTHORIZATION OF ASSISTANCE.

Notwithstanding any other provision of law (other than section
502B or section 620A of this Act), the President is authorized tofurnish, on such terms and conditions as the President may determine, assistance in order to carry out the purposes of this chapter.
Such assistance may include training services and the provision offunds, equipment, and other commodities related to the detection,
deterrence, monitoring, interdiction, and prevention or counteringof proliferation, the establishment of effective nonproliferation laws
and regulations, and the apprehension of those individuals involvedin acts of proliferation of such weapons.
SEC. 583. ø22 U.S.C. 2349bb–2¿ TRANSIT INTERDICTION.
(a) ALLOCATION OF FUNDS.—In providing assistance under thischapter, the President shall ensure that, beginning in fiscal year
2007, not less than one-quarter of the total of such assistance is obligated for the purpose of enhancing the capabilities of friendly
countries to detect and interdict proliferation-related shipments ofcargo to non-state actors and states of proliferation concern.
(b) PRIORITY TO CERTAIN COUNTRIES.—Priority shall be givenin the apportionment of the assistance described under subsection(a) to any friendly country that has been determined by the Secretary of State to be a country frequently transited by proliferationrelated shipments of cargo.
(c) COOPERATIVE AGREEMENTS.—In order to promote cooperation regarding the interdiction of weapons of mass destruction andrelated materials and delivery systems, the President is authorized
to conclude agreements, including reciprocal maritime agreements,
with other countries to facilitate effective measures to prevent thetransportation of such items to non-state actors and states of proliferation concern.
(d) DETERMINATION AND NOTICE TO CONGRESS.—The Secretaryof State shall notify the Committee on International Relations of
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tions of the Senate in writing not more than 30 days after making
a determination that any friendly country has been determined to
be a country eligible for priority consideration of any assistanceunder subsection (a). Such determination shall set forth the reasons for such determination, and may be submitted in classified
and unclassified form, as necessary.
SEC. 584. ø22 U.S.C. 2349bb–2a¿ INTERNATIONAL NONPROLIFERATIONEXPORT CONTROL TRAINING.
(a) GENERAL AUTHORITY.—The President is authorized to fur-nish, on such terms and conditions consistent with this chapter(but whenever feasible on a reimbursable basis), education andtraining to appropriate military and civilian personnel of foreigncountries for the purpose of enhancing the nonproliferation and export control capabilities of such personnel through their attendancein special courses of instruction conducted by the United States.
(b) ADMINISTRATION OF COURSES.—The Secretary of State shallhave overall responsibility for the development and conduct ofinternational nonproliferation education and training programs
under this section, and may utilize other departments and agenciesof the United States, as appropriate, to recommend personnel forthe education and training and to administer specific courses of instruction.
(c) PURPOSES.—Education and training activities conductedunder this section shall be—(1) of a technical nature, emphasizing techniques for detecting, deterring, monitoring, interdicting, and countering proliferation;(2) designed to encourage effective and mutually beneficial
relations and increased understanding between the UnitedStates and friendly countries; and(3) designed to improve the ability of friendly countries toutilize their resources with maximum effectiveness, thereby
contributing to greater self-reliance by such countries.
(d) PRIORITY TO CERTAIN COUNTRIES.—In selecting personnel
for education and training pursuant to this section, priority should
be given to personnel from countries determined by the Secretaryof State to be countries frequently transited by proliferation-related
shipments of cargo.
SEC. 585. ø22 U.S.C. 2349bb–3¿ LIMITATIONS.

The limitations contained in section 573(a) and (d) of this Act
shall apply to this chapter.
SEC. 586. ø22 U.S.C. 2349bb–4¿ AUTHORIZATION OF APPROPRIATIONS.
(a) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated to the President to carry out this chapter$162,000,000 for fiscal year 2003.
(b) AVAILABILITY OF FUNDS.—Funds made available under subsection (a) may be used notwithstanding any other provision of law(other than section 502B or 620A) and shall remain available until
expended.
(c) TREATMENT OF APPROPRIATIONS.—Amounts made available
by the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2002, under ‘‘Nonproliferation,
Antiterrorism, Demining, and Related Programs’’ and ‘‘AssistanceJune 10, 2019

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Sec. 601

for the Independent States of the Former Soviet Union’’ accounts
for the activities described in subsection (d) shall be considered tobe made available pursuant to this chapter.
(d) COVERED ACTIVITIES.—The activities referred to in subsection (c) are—(1) assistance under the Nonproliferation and Disarmament Fund;(2) assistance for science and technology centers in the
independent states of the former Soviet Union;(3) export control assistance; and(4) export control and border assistance under chapter 11
of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2295
et seq.) or the FREEDOM Support Act (22 U.S.C. 5801 et seq.).
PART IIICHAPTER 1—GENERAL PROVISIONS
SEC. 601. ø22 U.S.C. 2351¿ ENCOURAGEMENT OF FREE ENTERPRISE AND PRIVATE PARTICIPATION.—(a) The Congress of the UnitedStates recognizes the vital role of free enterprise in achieving risinglevels of production and standards of living essential to economic
progress and development. Accordingly, it is declared to be the policy of the United States to encourage the efforts of other countries
to increase the flow of international trade, to foster private initiative and competition, to encourage the development and use of cooperatives, credit unions, and savings and loan associations, to discourage monopolistic practices, to improve the technical efficiencyof their industry, agriculture, and commerce, and to strengthen
free labor unions; and to encourage the contribution of UnitedStates enterprise toward economic strength of less developed
friendly countries, through private trade and investment abroad,
private participation in programs carried out under this Act (including the use of private trade channels to the maximum extent
practicable in carrying out such programs), and exchange of ideas
and technical information on the matters covered by this subsection.
(b) In order to encourage and facilitate participation by private
enterprise to the maximum extent practicable in achieving any ofthe purposes of this Act, the President shall—(1) make arrangements to find, and draw the attention ofprivate enterprise to opportunities for investment and development in less developed countries and areas;(2) establish an effective system for obtaining adequate information with respect to the activities of, and opportunities
for, nongovernmental participation in the development process,and for utilizing such information in the planning, direction,and execution of programs carried out under this Act, and in
the coordination of such programs with the ever-increasing developmental activities of nongovernmental United States institutions;(3) accelerate a program of negotiating treaties for commerce and trade, including tax treaties, which shall include
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vestment to, and its equitable treatment in, friendly countries
and areas participating in programs under this Act;(4) seek, consistent with the national interest, complianceby other countries or areas with all treaties for commerce andtrade and taxes, and take all reasonable measures under thisAct or other authority to secure compliance therewith and toassist United States citizens in obtaining just compensation forlosses sustained by them or payments exacted from them as aresult of measures taken or imposed by any country or area
thereof in violation of any such treaty;(5) to the maximum extent practicable carry out programsof assistance through private channels and to the extent practicable in conjunction with local private or governmental participation, including loans under the authority of section 122 to
any individual, corporation, or other body of persons;(6) take appropriate steps to discourage nationalization,
expropriation, confiscation, seizure of ownership or control ofprivate investment and discriminatory or other actions, having
the effect thereof, undertaken by countries receiving assistanceunder this Act, which divert available resources essential tocreate new wealth, employment, and productivity in thosecountries and otherwise impair the climate for new private investment essential to the stable economic growth and development of those countries;(7) utilize wherever practicable the services of UnitedStates private enterprise (including, but not limited to, theservices of experts and consultants in technical fields such asengineering);(8) utilize wherever practicable the services of UnitedStates private enterprise on a cost-plus incentive fee contract
basis to provide the necessary skills to develop and operate a
specific project or program of assistance in a less developed
friendly country or area in any case in which direct private investment is not readily encouraged, and provide where appropriate for the transfer of equity ownership in such project orprogram to private investors at the earliest feasible time.
(c)(1) There is hereby established an International Private Investment Advisory Council on Foreign Aid to be composed of such
number of leading American business specialists as may be selected, from time to time, by the Administrator of the Agency forInternational Development for the purpose of carrying out the provisions of this subsection. The members of the Council shall serveat the pleasure of the Administrator, who shall designate one member to serve as Chairman.
(2) It shall be the duty of the Council, at the request of the Administrator, to make recommendations to the Administrator withrespect to particular aspects of programs and activities under thisAct where private enterprise can play a contributing role and to act
as liaison for the Administrator to involve specific private enterprises in such programs and activities.
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Sec. 603

for travel and other expenses incurred by them in the performanceof their functions under this subsection.
(4) The expenses of the Advisory Council shall be paid by the
Administrator from funds otherwise available under this Act.
(d) It is the sense of Congress that the Agency for International Development should continue to encourage, to the maximum extent consistent with the national interest, the utilizationof engineering and professional services of United States firms (including, but not limited to, any corporation, company, partnership,or other association) or by an affiliate of such United States firms
in connection with capital projects financed by funds authorizedunder this Act.
(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 suchcontracts 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 beused.
(2) * * * øRepealed—1981¿
SEC. 602. ø22 U.S.C. 2352¿ SMALL BUSINESS.—(a) Insofar aspracticable and to the maximum extent consistent with the accomplishment of the purposes of this Act, the President shall assist
American small business to participate equitably in the furnishingof commodities, defense articles, and services (including defense
services) financed with funds made available under this Act—
(1) by causing to be made available to suppliers in the
United States, and particularly to small independent enterprises, information, as far in advance as possible, with respect
to purchases proposed to be financed with such funds;(2) by causing to be made available to prospective purchasers in the countries and areas receiving assistance under
this Act information as to such commodities, articles, and services produced by small independent enterprises in the UnitedStates; and(3) by providing for additional services to give small business better opportunities to participate in the furnishing ofsuch commodities, articles, and services financed with suchfunds.
(b) There shall be an Office of Small Business, headed by aSpecial Assistant for Small Business, in such agency of the UnitedStates Government as the President may direct, to assist in carrying out the provisions of subsection (a) of this section.
(c) The Secretary of Defense shall assure that there is madeavailable to suppliers in the United States, and particularly tosmall independent enterprises, information with respect to purchases made by the Department of Defense pursuant to part II,such information to be furnished as far in advance as possible.
SEC. 603. ø22 U.S.C. 2353¿ SHIPPING ON UNITED STATES VESSELS.—The ocean transportation between foreign countries of commodities and defense articles purchased with foreign currencies
made available or derived from funds made available under thisAct or the Food for Peace Act as amended (7 U.S.C. 1691 et seq.),
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208

and transfers of fresh fruit and products thereof under this Act
shall not be governed by the provisions of section 901(b) of the Merchant Marine Act of 1936, as amended (46 U.S.C. 1241), or any
other law relating to the ocean transportation of commodities on
United States flag vessels.
SEC. 604. ø22 U.S.C. 2354¿ PROCUREMENT.—(a)(1) LIMITATIONSON PROCUREMENT OUTSIDE THE UNITED STATES.—Funds madeavailable for assistance under this Act may be used by the President for procurement—(A) only in the United States, the recipient country, or developing countries; or(B) in any other country but only if—(i) the provision of such assistance requires commodities or services of a type that are not produced in andavailable for purchase in any country specified in subparagraph (A); or(ii) the President determines, on a case-by-case basis,that procurement in such other country is necessary—(I) to meet unforeseen circumstances, such as
emergency situations, where it is important to permit
procurement in a country not specified in subparagraph (A); or(II) to promote efficiency in the use of UnitedStates foreign assistance resources, including to avoid
impairment of foreign assistance objectives.
(2) For purposes of this subsection, the term ‘‘developing countries’’ shall not include advanced developing countries.
(b) No funds made available under this Act shall be used forthe purchase in bulk of any commodities at prices higher than themarket price prevailing in the United States at the time of purchase, adjusted for differences in the cost of transportation to destination, quality, and terms of payment.
(c) In providing for the procurement of any agricultural commodity or product thereof available for disposition under the Foodfor Peace Act as amended, for transfer by grant under this Act toany recipient country in accordance with its requirements, thePresident shall, insofar as practicable and when in furtherance ofthe purposes of this Act, authorize the procurement of such agricultural commodity only within the United States except to the extent
that such agricultural commodity is not available in the UnitedStates in sufficient quantities to supply emergency requirements ofrecipients under this Act.
(d) In providing assistance in the procurement of commodities
in the United States, United States dollars shall be made available
for marine insurance on such commodities where such insurance isplaced on a competitive basis in accordance with normal tradepractice prevailing prior to the outbreak of World War II: Provided,
That in the event a participating country, by statute, decree, rule,or regulation, discriminates against any marine insurance company
authorized to do business in any State of the United States, thencommodities purchased with funds provided hereunder and destined for such country shall be insured in the United States against
marine risk with a company or companies authorized to do a marine insurance business in any State of the United States.
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Sec. 605(e) No funds made available under this Act shall be used forthe procurement of any agricultural commodity or product thereof
outside the United States when the domestic price of such commodity is less than parity, unless the commodity to be financed
could not reasonably be produced in the United States in fulfillment of the objectives of a particular assistance program underwhich such commodity procurement is to be financed.
(f) No funds authorized to be made available to carry out part
I of this Act shall be used under any commodity import program
to make any payment to a supplier unless the supplier has certified
to the agency primarily responsible for administering such part I,
such information as such agency shall by regulation prescribe, including but not limited to, a description of the commodity suppliedby him and its condition, and on the basis of such information suchagency shall have approved such commodity as eligible and suitable for financing under this Act.
(g)(1) None of the funds authorized to be appropriated or madeavailable for obligation or expenditure under this Act may be madeavailable for the procurement of construction or engineering services from advanced developing countries, eligible under the Geographic Code 941, which have attained a competitive capability ininternational markets for construction services or engineering services.
(2) Paragraph (1) does not apply with respect to an advanced
developing country which—(A) is receiving direct economic assistance under chapter 1of part I or chapter 4 of part II of this Act, and(B) if the country has its own foreign assistance programs
which finance the procurement of construction or engineering
services, permits United States firms to compete for those services.
SEC. 605. ø22 U.S.C. 2355¿ RETENTION AND USE OF CERTAINITEMS AND FUNDS.—(a) Any commodities and defense articles procured to carry out this Act shall be retained by, or upon reimbursement, transferred to, and for the use of, such agency of the UnitedStates Government as the President may determine in lieu of being
disposed of to a foreign country or international organization,
whenever in the judgment of the President the best interests of theUnited States will be served thereby or whenever such retention iscalled for by concurrent resolution. Any commodities or defense articles so retained may be disposed of without regard to provisionsof law relating to the disposal of property owned by the UnitedStates Government, when necessary to prevent spoilage or wastageof such commodities or defense articles or to conserve the usefulness thereof. Funds realized from any disposal or transfer shall revert to the respective appropriation, fund, or account used to procure such commodities or defense articles or to the appropriation,fund, or account currently available for the same general purpose.
(b) Whenever commodities are transferred to the United States
Government as repayment of assistance under this Act, such commodities may be used in furtherance of the purposes and within
the limitations of this Act.
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quirements of this Act, or to applicable rules and regulations of theUnited States Government, or to the terms of any agreement orcontract entered into under authority of part I of this Act, shall revert to the respective appropriation, fund, or account used to finance such transaction or to the appropriation, fund, or accountcurrently available for the same general purpose.
(d) Funds realized by the United States Government from thesale, transfer, or disposal of defense articles returned to the UnitedStates Government by a recipient country or international organization as no longer needed for the purpose for which furnishedshall be credited to the respective appropriation, fund, or accountused to procure such defense articles or to the appropriation, fund,or account currently available for the same general purpose.
SEC. 606. ø22 U.S.C. 2356¿ PATENTS AND TECHNICAL INFORMATION.—(a) Whenever, in connection with the furnishing of assistance under this Act—(1) an invention or discovery covered by a patent issued by
the United States Government is practiced within the UnitedStates without the authorization of the owner, or(2) information, which is (A) protected by law, and (B) heldby the United States Government subject to restrictions imposed by the owner, is disclosed by the United States Government or any of its officers, employees, or agents in violation ofsuch restrictions,the exclusive remedy of the owner, except as provided in subsection(b) of this section, is to sue the United States Government for reasonable and entire compensation for such practice or disclosure in
the district court of the United States for the district in which suchowner is a resident, or in the United States Court of Federal
Claims within six years after the cause of action arises. Any period
during which the United States Government is in possession of awritten claim under subsection (b) of this section before mailing a
notice of denial of that claim does not count in computing the six
years. In any such suit, the United States Government may plead
any defense that may be pleaded by a private person in such anaction. The last paragraph of section 1498(a) of title 28 of theUnited States Code shall apply to inventions and information covered by this section.
(b) Before suit against the United States Government has been
instituted, the head of the agency of the United States Government
concerned may settle and pay any claim arising under the circumstances described in subsection (a) of this section. No claim
may be paid under this subsection unless the amount tendered is
accepted by the claimant in full satisfaction.
(c) Funds appropriated pursuant to this Act shall not be expended by the United States Government for the acquisition of any
drug product or pharmaceutical product manufactured outside theUnited States if the manufacture of such drug product or pharmaceutical product in the United States would involve the use of, orbe covered by, an unexpired patent of the United States which has
not previously been held invalid by an unappealed or unappealable
judgment or decree of a court of competent jurisdiction, unless suchmanufacture is expressly authorized by the owner of such patent.
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Sec. 607

SEC. 607. ø22 U.S.C. 2357¿ FURNISHING OF SERVICES AND
COMMODITIES.—(a) Whenever the President determines it to beconsistent with and in furtherance of the purposes of part I andwithin the limitations of this Act, any agency of the United States
Government is authorized to furnish services and commodities onan advance-of-funds or reimbursement basis to friendly countries,
international organizations, the American Red Cross, and voluntary nonprofit relief agencies registered with and approved by
the Agency for International Development (including foreign voluntary nonprofit relief agencies so registered and approved whenno United States voluntary nonprofit relief agency is available).
Such advances or reimbursements may be credited to the currently
applicable appropriation, account, or fund of the agency concernedand shall be available for the purposes for which such appropriation, account, or fund is authorized to be used, under the following
circumstances:(1) Advances or reimbursements which are received under
this section within one hundred and eighty days after the closeof the fiscal year in which such services and commodities aredelivered.
(2) Advances or reimbursements received pursuant toagreements executed under this section in which reimbursement will not be completed within one hundred and eightydays after the close of the fiscal year in which such services
and commodities are delivered: Provided, That such agreements require the payment of interest at the current rate established pursuant to section 2(b)(1)(B) of the Export-Import
Bank Act of 1945 (59 Stat. 526), and repayment of such principal and interest does not exceed a period of three years fromthe date of signing of the agreement to provide the service:
Provided further, That funds available for this paragraph inany fiscal year shall not exceed $1,000,000 of the total funds
authorized for use in such fiscal year by chapter 1 of part I of
this Act, and shall be available only to the extent provided inappropriation Acts. Interest shall accrue as of the date of disbursement to the agency or organization providing such services.
(b) When any agency of the United States Government provides services on an advance-of-funds or reimbursable basis under
this section, 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 UnitedStates Government for the purpose of any law administered by the
Civil Service Commission.
(c)(1) Except as provided in subsection (d), no Governmentowned excess property shall be made available under this section,section 608, or otherwise in furtherance of the purposes of part Iof this Act, unless, before the shipment of such property for use ina specified country (or transfer, if the property is already in suchcountry), the agency administering such part I has approved such
shipment (or transfer) and made a written determination—
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Sec. 608

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

212(A) that there is a need for such property in the quantity
requested and that such property is suitable for the purpose
requested;(B) as to the status and responsibility of the designatedend-user and his ability effectively to use and maintain suchproperty; and(C) that the residual value, serviceability, and appearanceof such property would not reflect unfavorably on the image of
the United States and would justify the costs of packing, crating, handling, transportation, and other accessorial costs, andthat the residual value at least equals the total of these costs.
(d) The Secretary of State, acting through the Assistant Secretary of State for Oceans and International Environmental andScientific Affairs, is authorized to transfer to any friendly country,
international organization, the American Red Cross, or other voluntary nonprofit relief agency described in subsection (a), Government-owned excess property made available under this section or
section 608 in order to support activities carried out under part Iof this Act which are designed to enhance environmental protection
in foreign countries if the Secretary of State makes a written determination—(1) that there is a need for such property in the quantity
requested and that such property is suitable for the purpose
requested;(2) as to the status and responsibility of the designatedend-user and his ability effectively to use and maintain suchproperty; and(3) that the residual value, serviceability, and appearanceof such property would not reflect unfavorably on the image of
the United States and would justify the costs of packing, crating, handling, transportation, and other accessorial costs, andthat the residual value at least equals the total of these costs.
SEC. 608. ø22 U.S.C. 2358¿ ADVANCE ACQUISITION OF PROPERTY.—(a) It is the sense of the Congress that in furnishing assistance under part I excess personal property, or (if a substantial savings would occur) other property already owned by an agency of theUnited States Government, should be utilized wherever practicablein lieu of or supplementary to the procurement of new items forUnited States-assisted projects and programs. The President is authorized to maintain in a separate account, which shall, notwithstanding section 1210 of the General Appropriation Act, 1951 (64Stat. 765), be free from fiscal year limitations, $5,000,000 of funds
made available under chapter 1 of part I, which may be used to
pay costs (including personnel costs) of acquisition, storage, renovation and rehabilitation, packing, crating, handling transportation,and related costs of property classified as domestic or foreign excess property pursuant to the Federal Property and Administrative
Services Act of 1949, as amended (40 U.S.C. 471 et seq.), any property available from an agency of the United States Government orother property, in advance of known requirements therefor for use
in furtherance of the purposes of part I: Provided, That the amountof property classified as domestic excess property pursuant to theFederal Property and Administrative Services Act of 1949, as
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Sec. 611

exceed $15,000,000 in total original acquisition cost. Property acquired pursuant to the preceding sentence may be furnished (1)pursuant to any provision of part I for which funds are authorized
for the furnishing of assistance, in which case the separate accountestablished pursuant to this section shall be repaid from funds
made available for such provision for all costs incurred, or (2) pursuant to section 607, in which case such separate account shall be
repaid in accordance with the provisions of that section for all costs
incurred.
(b) Property classified as domestic excess property under theFederal Property and Administrative Services Act of 1949, as
amended, shall not be transferred to the agency primarily responsible for administering part I for use pursuant to the provisions ofpart I or section 607 unless (1) such property is transferred for use
exclusively by an agency of the United States Government, or (2)it has been determined in the same manner as provided for surplus
property in section 203(j) of the Federal Property and Administrative Services Act of 1949, as amended, that such property is notneeded for donation pursuant to that subsection. The foregoing restrictions shall not apply to the transfer in any fiscal year for use
pursuant to the provisions of part I of amounts of such property
with a total original acquisition cost to the United States Government not exceeding $45,000,000.
øSEC. 609. Repealed by section 533(a)(5) of Public Law 105–277 (112 Stat. 2681–180.¿
SEC. 610. ø22 U.S.C. 2360¿ TRANSFER BETWEEN ACCOUNTS.—(a) Whenever the President determines it to be necessary for the
purposes of this Act, not to exceed 10 per centum of the funds
made available for any provision of this Act (except funds madeavailable pursuant to title IV of chapter 2 of part I or for section
23 of the Arms Export Control Act) may be transferred to, and consolidated with, the funds made available for any provision of thisAct, (except funds made available under chapter 2 of part II of thisAct) 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 benefitof which the transfer is made shall not be increased by more than
20 per centum of the amount of funds made available for such provision.
(b) The authority contained in this section and in sections 451,
506, and 614 shall not be used to augment appropriations madeavailable pursuant to sections 636(g)(1) and 637 or used otherwise
to finance activities which normally would be financed from appropriations for administrative expenses.
(c) Any funds which the President has notified Congress pursuant to section 653 that he intends to provide in military assistanceto any country may be transferred to, and consolidated with, anyother funds he has notified Congress pursuant to such section that
he intends to provide to that country for development assistancepurposes.
SEC. 611. ø22 U.S.C. 2361¿ COMPLETION OF PLANS AND COST
ESTIMATES.—(a) No agreement or grant which constitutes an obligation of the United States Government in excess of $500,000
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for any assistance authorized under chapter I of part I, title II ofchapter 2 of part I, or chapter 4 of part II—(1) if such agreement or grant requires substantive technical or financial planning, until engineering, financial, andother plans necessary to carry out such assistance, and a reasonably firm estimate of the cost to the United States Government of providing such assistance, have been completed; and(2) if such agreement or grant requires legislative action
within the recipient country, unless such legislative action may
reasonably be anticipated to be completed in time to permit theorderly accomplishment of the purposes of such agreement or
grant.
(b) Plans required under subsection (a) of this section for any
water or related land resource construction project or program
shall include a computation of benefits and costs made insofar aspracticable in accordance with the principles, standards, and procedures established pursuant to the Water Resources Planning Act(42 U.S.C. 1962, et seq.) or acts amendatory or supplementary
thereto.
(c) To the maximum extent practicable, all contracts for construction outside the United States made in connection with any
agreement or grant subject to subsection (a) of this section shall bemade on a competitive basis.
(d) Subsection (a) of this section shall not apply to any assistance furnished for the sole purpose of preparation of engineering,financial, and other plans.
(e) In addition to any other requirements of this section, no assistance authorized under chapter 1 of part I, title II of chapter 2of part I, or chapter 4 of part II shall be furnished with respect toany capital assistance project estimated to cost in excess of$1,000,000 until the head of the agency primarily responsible foradministering part I of the Act has received and taken into consideration a certification from the principal officer of such agency inthe country in which the project is located as to the capability of
the country (both financial and human resources) to effectively
maintain and utilize the project taking into account among otherthings the maintenance and utilization of projects in such country
previously financed or assisted by the United States.
SEC. 612. ø22 U.S.C. 2362¿ USE OF FOREIGN CURRENCIES.—(a)Except as otherwise provided in this Act or other Acts, foreign currencies received either (1) as a result of the furnishing of nonmilitary assistance under the Mutual Security Act of 1954, as
amended, or any Act repealed thereby and unobligated on the dateprior to the effective date of this Act, or (2) on or after the effective
date of this Act, as a result of the furnishing of nonmilitary assistance under the Mutual Security Act of 1954, as amended, or any
Act repealed thereby, or (3) as a result of the furnishing of assistance under part I, which are in excess of the amounts reserved
under authority of section 105(d) of the Mutual Educational andCultural Exchange Act of 1961 or any other Act relating to educational and cultural exchanges, may be sold by the Secretary of
the Treasury to agencies of the United States Government for payment of their obligations outside the United States, and the UnitedStates dollars received as reimbursement shall be deposited into
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miscellaneous receipts of the Treasury. Foreign currencies so received which are in excess of the amounts so reserved and of therequirements of the United States Government in payment of its
obligations outside the United States, as such requirements may be
determined from time to time by the President, shall be available
for the authorized purposes of part I in such amounts as may be
specified from time to time in appropriation Acts.
(b) Any Act of Congress making appropriations to carry out
programs under this or any other Act for United States operations
abroad is hereby authorized to provide for the utilization of UnitedStates-owned excess foreign currencies to carry out any such operations authorized by law.
As used in this subsection, the term ‘‘excess foreign currencies’’
means foreign currencies or credits owned by or owed to the UnitedStates which are, under applicable agreements with the foreigncountry concerned, available for the use of the United States Government and are determined by the President to be excess to thenormal requirements of departments and agencies of the UnitedStates for such currencies or credits and are not prohibited fromuse under this subsection by an agreement entered into with theforeign country concerned.
The President shall take all appropriate steps to assure that,to the maximum extent possible, United States-owned foreign currencies are utilized in lieu of dollars. Dollar funds made available
pursuant to this Act shall not be expended for goods and services
when United States-owned foreign currencies are available for such
purposes unless the administrative official approving the voucher
certifies as to the reason for the use of dollars in each case.
(c) In addition to funds otherwise available, excess foreign currencies, as defined in subsection (b), may be made available tofriendly foreign governments and to private, nonprofit UnitedStates organizations to carry out voluntary family planning programs in countries which request such assistance. No such program shall be assisted unless the President has received assurances that in the administration of such program the recipient willtake reasonable precautions to insure that no person receives any
family planning assistance or supplies unless he desires such services. The excess foreign currencies made available under this subsection shall not, in any one year, exceed 5 per centum of the aggregate of all excess foreign currencies. As used in this subsection,
the term ‘‘voluntary family planning program’’ includes, but is not
limited to, demographic studies, medical and psychological research, personnel training, the construction and staffing of clinics
and rural health centers, specialized training of doctors and paramedical personnel, the manufacture of medical supplies, and thedissemination of family planning information, medical assistance,and supplies to individuals who desire such assistance.
(d) In furnishing assistance under this Act to the governmentof any country in which the United States owns excess foreign currencies as defined in subsection (b) of this section, except those currencies generated under the Food for Peace Act, as amended, thePresident shall endeavor to obtain from the recipient country anagreement for the release, on such terms and conditions as the
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the equivalent of the dollar value of assistance furnished by theUnited States for programs as may be mutually agreed upon by therecipient country and the United States to carry out the purposes
for which new funds authorized by this Act would themselves beavailable.
SEC. 613. ø22 U.S.C. 2363¿ ACCOUNTING, VALUATION, REPORTING, AND ADMINISTRATION OF FOREIGN CURRENCIES.—(a) Under the
direction of the President, the Secretary of the Treasury shall have
responsibility for valuation and central accounting with respect toforeign credits (including currencies) owed to or owned by theUnited States. In order to carry out such responsibility the Secretary shall issue regulations binding upon all agencies of the Government.
(c) * * * øRepealed—1981¿(d) In cases where assistance is to be furnished to any recipient
country in furtherance of the purposes of this or any other Act ona basis which will result in the accrual of foreign currency proceeds
to the United States, the Secretary of the Treasury shall issue regulations requiring that agreements, in respect of such assistance,
include provisions for the receipt of interest income on the foreign
currency proceeds deposited in authorized depositories: Provided,
That whenever the Secretary of State determines it not to be in thenational interest to conclude arrangements for the receipt of interest income he may waive the requirement thereof: Provided further, That the Secretary of State, or his delegate, shall promptly
make a complete report to the Congress on each such determination and the reasons therefor.
SEC. 614. ø22 U.S.C. 2364¿ SPECIAL AUTHORITIES.—(a)(1) The
President may authorize the furnishing of assistance under thisAct without regard to any provision of this Act, the Arms Export
Control Act, any law relating to receipts and credits accruing to theUnited States, and any Act authorizing or appropriating funds foruse under this Act, in furtherance of any of the purposes of thisAct, when the President determines, and so notifies in writing the
Speaker of the House of Representatives and the chairman of theCommittee on Foreign Relations of the Senate, that to do so is important to the security interests of the United States.
(2) The President may make sales, extend credit, and issue
guarantees under the Arms Export Control Act, without regard to
any provision of this Act, the Arms Export Control Act, any law relating to receipts and credits accruing to the United States, andany Act authorizing or appropriating funds for use under the Arms
Export Control Act, in furtherance of any of the purposes of such
Act, when the President determines, and so notifies in writing the
Speaker of the House of Representatives and the chairman of theCommittee on Foreign Relations of the Senate, that to do so is vitalto the national security interests of the United States.
(3) Before exercising the authority granted in this subsection,
the President shall consult with, and shall provide a written policy
justification to, the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives and theCommittee on Foreign Relations and the Committee on Appropriations of the Senate.
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Sec. 617(4)(A) The authority of this subsection may not be used in any
fiscal year to authorize—(i) more than $750,000,000 in sales to be made under theArms Export Control Act;(ii) the use of more than $250,000,000 of funds made available for use under this Act or the Arms Export Control Act;and(iii) the use of more than $100,000,000 of foreign currencies accruing under this Act or any other law.
(B) If the authority of this subsection is used both to authorize
a sale under the Arms Export Control Act and to authorize funds
to be used under the Arms Export Control Act or under this Act
with respect to the financing of that sale, then the use of the funds
shall be counted against the limitation in subparagraph (A)(ii) andthe portion, if any, of the sale which is not so financed shall becounted against the limitation in subparagraph (A)(i).
(C) Not more than $50,000,000 of the $250,000,000 limitation
provided in subparagraph (A)(ii) may be allocated to any one country in any fiscal year unless that country is a victim of active aggression, and not more than $500,000,000 of the aggregate limitation of $1,000,000,000 provided in subparagraphs (A)(i) and (A)(ii)
may be allocated to any one country in any fiscal year.
(5) The authority of this section may not be used to waive thelimitations on transfers contained in section 610(a) of this Act.
(b) Whenever the President determines it to be important to
the national interest, he may use funds available for the purposesof chapter 4 of part I in order to meet the responsibilities or objectives of the United States in Germany, including West Berlin, andwithout regard to such provisions of law as he determines should
be disregarded to achieve this purpose.
(c) The President is authorized to use amounts not to exceed$50,000,000 of the funds made available under this Act pursuant
to his certification that it is inadvisable to specify the nature of theuse of such funds, which certification shall be deemed to be a sufficient voucher for such amounts. The President shall fully informthe chairman and ranking minority member of the Committee on
Foreign Affairs of the House of Representatives and the chairman
and ranking minority member of the Committee on Foreign Relations of the Senate of each use of funds under this subsection prior
to the use of such funds.
SEC. 615. ø22 U.S.C. 2365¿ CONTRACT AUTHORITY.—Provisionsof this Act authorizing the appropriation of funds shall be construed to authorize the granting in any appropriation Act of authority to enter into contracts, within the amounts so authorized tobe appropriated, creating obligations in advance of appropriations.
SEC. 616. ø22 U.S.C. 2366¿ AVAILABILITY OF FUNDS.—Except
as otherwise provided in this Act, funds shall be available to carryout the provisions of this Act as authorized and appropriated to the
President each fiscal year.
SEC. 617. ø22 U.S.C. 2367¿ TERMINATION EXPENSES.
(a) IN GENERAL.—Funds made available under this Act and theArms Export Control Act, may remain available for obligation fora period not to exceed 8 months from the date of any termination
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of assistance under such Acts for the necessary expenses of winding
up programs related to such termination and may remain available
until expended. Funds obligated under the authority of such Acts
prior to the effective date of the termination of assistance may remain available for expenditure for the necessary expenses of winding up programs related to such termination notwithstanding any
provision of law restricting the expenditure of funds. In order to ensure the effectiveness of such assistance, such expenses for orderly
termination of programs may include the obligation and expenditure of funds to complete the training or studies outside their countries of origin of students whose course of study or training program began before assistance was terminated.
(b) LIABILITY TO CONTRACTORS.—For the purpose of making anequitable settlement of termination claims under extraordinary
contractual relief standards, the President is authorized to adopt asa contract or other obligation of the United States Government,
and assume (in whole or in part) any liabilities arising thereunder,
any contract with a United States or third-country contractor that
had been funded with assistance under such Acts prior to the termination of assistance.
(c) TERMINATION EXPENSES.—Amounts certified as having been
obligated for assistance subsequently terminated by the President,
or pursuant to any provision of law, shall continue to remain available and may be reobligated to meet any necessary expenses arising from the termination of such assistance.
(d) GUARANTY PROGRAMS.—Provisions of this or any other Act
requiring the termination of assistance under this or any other Act
shall not be construed to require the termination of guarantee commitments that were entered into prior to the effective date of thetermination of assistance.
(e) RELATION TO OTHER PROVISIONS.—Unless specifically madeinapplicable by another provision of law, the provisions of this section shall be applicable to the termination of assistance pursuant
to any provision of law.
SEC. 618. ø22 U.S.C. 2368¿ ASSISTANCE FOR A RECONSTRUCTION AND
STABILIZATION CRISIS.
(a) ASSISTANCE.—(1) IN GENERAL.—If the President determines that it is in

the national security interests of the United States for UnitedStates civilian agencies or non-Federal employees to assist inreconstructing and stabilizing a country or region that is at
risk of, in, or is in transition from, conflict or civil strife, thePresident may, in accordance with the provisions set forth insection 614(a)(3), but notwithstanding any other provision oflaw, and on such terms and conditions as the President may
determine, furnish assistance to such country or region for reconstruction or stabilization using funds described in paragraph (2).
(2) FUNDS DESCRIBED.—The funds referred to in paragraph(1) are funds made available under any other provision of thisAct, and transferred or reprogrammed for purposes of this section, and such transfer or reprogramming shall be subject tothe procedures applicable to a notification under section 634Aof this Act.
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Sec. 620(3) RULE OF CONSTRUCTION.—Nothing in this section shallbe construed to provide authority to transfer funds between accounts or between Federal departments or agencies.
(b) LIMITATION.—The authority contained in this section may
be exercised only during fiscal years 2009, 2010, and 2011.
SEC. 619. ASSISTANCE TO NEWLY INDEPENDENT COUNTRIES.—
øRepealed—1978¿
SEC. 620. ø22 U.S.C. 2370¿ PROHIBITIONS AGAINST FURNISHINGASSISTANCE.—(a) 34(1) No assistance shall be furnished under thisAct to the present government of Cuba. As an additional means of
implementing and carrying into effect the policy of the preceding
sentence, the President is authorized to establish and maintain atotal embargo upon all trade between the United States and Cuba.
(2) Except as may be deemed necessary by the President in theinterest of the United States, no assistance shall be furnishedunder this Act to any government of Cuba, nor shall Cuba be entitled to receive any quota authorizing the importation of Cuban
sugar into the United States or to receive any other benefit under
any law of the United States, until the President determines thatsuch government has taken appropriate steps according to international law standards to return to United States citizens, and toentities not less than 50 per centum beneficially owned by UnitedStates citizens, or to provide equitable compensation to such citizens and entities for property taken from such citizens and entities
on or after January 1, 1959, by the Government of Cuba.
(b) * * * øRepealed—1981¿(c) No assistance shall be provided under this Act to the government of any country which is indebted to any United States citizen or person for goods or services furnished or ordered where (i)such citizen or person has exhausted available legal remedies,
which shall include arbitration, or (ii) the debt is not denied or contested by such government, or (iii) such indebtedness arises underan unconditional guaranty of payment given by such government,or any predecessor government, directly or indirectly, through any
controlled entity: Provided, That the President does not find suchaction contrary to the national security.
(d) No assistance shall be furnished on a loan basis underchapter 1 of part I of this Act for construction or operation of any
productive enterprise in any country where such enterprise willcompete with United States enterprise unless such country has
agreed that it will establish appropriate procedures to prevent theexportation for use or consumption in the United States of morethan 20 per centum of the annual production of such facility during
the life of the loan. In case of failure to implement such agreement
34 Section 204(d)(1) of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996
(P.L. 104–114) states:(d) CONFORMING AMENDMENTS.—On the date on which the President submits a determination
under section 203(c)(3)—(1) section 620(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2370(a)) is repealed;
Section 203(c)(3) of P.L. 104–114 states:(3) IMPLEMENTATION WITH RESPECT TO DEMOCRATICALLY ELECTED GOVERNMENT.—The
President shall, upon determining that a democratically elected government in Cuba is in
power, submit that determination to the appropriate congressional committees and shall,subject to an authorization of appropriations and subject to the availability of appropriations, commence the delivery and distribution of assistance to such democratically elected
government under the plan developed under section 202(b).

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by the other contracting party, the President is authorized to establish necessary import controls to effectuate the agreement. The restrictions imposed by or pursuant to this subsection may be waived
by the President where he determines that such waiver is in thenational security interest.
(e)(1) The President shall suspend assistance to the government of any country to which assistance is provided under this or
any other Act when the government of such country or any government agency or subdivision within such country on or after January 1, 1962—(A) has nationalized or expropriated or seized ownership orcontrol of property owned by any United States citizen or by
any corporation, partnership, or association not less than 50
per centum beneficially owned by United States citizens, or(B) has taken steps to repudiate or nullify existing contracts or agreements with any United States citizen or any corporation, partnership, or association not less than 50 per centum beneficially owned by United States citizens, or(C) has imposed or enforced discriminatory taxes or otherexactions, or restrictive maintenance or operational conditions,or has taken other actions, which have the effect of nationalizing, expropriating, or otherwise seizing ownership or control
of property so owned,
and such country, government agency, or government subdivision
fails within a reasonable time (not more than six months after suchaction, or, in the event of a referral to the Foreign Claims Settlement Commission of the United States within such period as provided herein, not more than twenty days after the report of theCommission is received) to take appropriate steps, which may include arbitration, to discharge its obligations under international
law toward such citizen or entity, including speedy compensation
for such property in convertible foreign exchange, equivalent to thefull value thereof, as required by international law, or fails to takesteps designed to provide relief from such taxes, exactions, or conditions, as the case may be; and such suspension shall continue
until the President is satisfied that appropriate steps are being
taken, and the provisions of this subsection shall not be waived
with respect to any country unless the President determines andcertifies that such a waiver is important to the national interestsof the United States. Such certification shall be reported immediately to Congress.
Upon request of the President (within seventy days after suchaction referred to in subparagraphs (A), (B), or (C) of paragraph (1)of this section), the Foreign Claims Settlement Commission of theUnited States (established pursuant to Reorganization Plan No. 1
of 1954, 68 Stat. 1279) is hereby authorized to evaluate expropriated property, determining the full value of any property nationalized, expropriated, or seized, or subject to discriminatory or otheractions as aforesaid, for purposes of this subsection and to renderan advisory report to the President within ninety days after such
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such amount, to remain available until expended, as may be necessary from time to time to enable the Commission to carry out expeditiously its functions under this subsection.
(2) Notwithstanding any other provision of law, no court in the
United States shall decline on the ground of the federal act of state
doctrine to make a determination on the merits giving effect to theprinciples of international law in a case in which claim of title orother right to property is asserted by any party including a foreignstate (or a party claiming through such state) based upon (ortraced through) a confiscation or other taking after January 1,
1959, by an act of that state in violation of the principles of international law, including the principles of compensation and theother standards set out in this subsection: Provided, That this subparagraph shall not be applicable (1) in any case in which an actof a foreign state is not contrary to international law or with respect to a claim of title or other right to property acquired pursuant to an irrevocable letter of credit of not more than 180 days duration issued in good faith prior to the time of the confiscation orother taking, or (2) in any case with respect to which the President
determines that application of the act of state doctrine is requiredin that particular case by the foreign policy interests of the UnitedStates and a suggestion to this effect is filed on his behalf in thatcase with the court.
(f)(1) No assistance shall be furnished under this Act, as
amended (except section 214(b)), to any Communist country. This
restriction may not be waived pursuant to any authority containedin this Act unless the President finds and promptly reports to Congress that: (A) such assistance is vital to the security of the UnitedStates; (B) the recipient country is not controlled by the international Communist conspiracy; and (C) such assistance will further promote the independence of the recipient country from international communism. For the purposes of this subsection, thephrase ‘‘Communist country’’ includes specifically, but is not limited to, the following countries:
Democratic People’s Republic of Korea.
People’s Republic of China.
Republic of Cuba 35.
Socialist Republic of Vietnam.
Tibet.
(2) Notwithstanding the provisions of paragraph (1) of this subsection, the President may remove a country, for such period as the
35 Section 204(d) of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996
(P.L. 104–114) states:(d) CONFORMING AMENDMENTS.—On the date on which the President submits a determination
under section 203(c)(3)—

*
*
*
*
*
*
*
(2) section 620(f) of the Foreign Assistance Act of 1961 (22 U.S.C. 2370(f)) is amended
by striking ‘‘Republic of Cuba’’;Section 203(c)(3) of P.L. 104–114 states:(3) IMPLEMENTATION WITH RESPECT TO DEMOCRATICALLY ELECTED GOVERNMENT.—The
President shall, upon determining that a democratically elected government in Cuba is in
power, submit that determination to the appropriate congressional committees and shall,subject to an authorization of appropriations and subject to the availability of appropriations, commence the delivery and distribution of assistance to such democratically elected
government under the plan developed under section 202(b).
The amendment probably should have included a period after the term ‘‘Republic of Cuba’’.

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President determines, from the application of this subsection, andother provisions which reference this subsection, if the President
determines and reports to the Congress that such action is important to the national interest of the United States. It is the senseof the Congress that when consideration is given to authorizing assistance to a country removed from the application of this subsection, one of the factors to be weighed, among others, is whether
the country in question is giving evidence of fostering the establishment of a genuinely democratic system, with respect for internationally recognized human rights.
(g) Notwithstanding any other provision of law, no monetaryassistance shall be made available under this Act to any government or political subdivision or agency of such government which
will be used to compensate owners for expropriated or nationalized
property and, upon finding by the President that such assistancehas been used by any government for such purpose, no further assistance under this Act shall be furnished to such government until
appropriate reimbursement is made to the United States for sums
so diverted. This prohibition shall not apply to monetary assistancemade available for use by a government (or a political subdivision
or agency of a government) to compensate nationals of that country
in accordance with a land reform program, if the President determines that monetary assistance for such land reform program willfurther the national interests of the United States.
(h) The President shall adopt regulations and establish procedures to insure that United States foreign aid is not used in a manner which, contrary to the best interests of the United States, promotes or assists the foreign aid projects or activities of any country
that is a Communist country for purposes of subsection (f).
(i) * * * øRepealed—1981¿(j) The President shall consider terminating assistance under
this or any other Act to any country which permits, or fails to takeadequate measures to prevent, the damage or destruction by mob
action of United States property within such country, and fails totake appropriate measures to prevent a recurrence thereof and toprovide adequate compensation for such damage or destruction.
(k) Without the express approval of Congress, no assistanceshall be furnished under this Act to any country for constructionof any productive enterprise with respect to which the aggregate
value of assistance to be furnished by the United States will exceed$100,000,000, except that this sentence does not apply with respect
to assistance for construction of any productive enterprise in Egypt
which is described in the presentation materials to Congress. Except as otherwise provided in section 506, no military assistance tobe furnished beginning July 1, 1966, by the United States will exceed $100,000,000 unless such program has been included in thepresentation to the Congress during its consideration of authorizations for appropriations under this Act or of appropriations pursuant to authorizations contained in this Act. No provision of this or
any other Act shall be construed to authorize the President towaive the provisions of this subsection.
(l) The President shall consider denying assistance under thisAct to the government of any less developed country which, after
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President to institute the investment guaranty program under section 234(a)(1) of this Act, providing protection against the specificrisks of inconvertibility under subparagraph (A), and expropriationor confiscation under subparagraph (B), of such section 234(a)(1).
(m) * * * øRepealed—1981¿(n) øRepealed—1977¿(o) In determining whether or not to furnish assistance under
this Act, consideration shall be given to excluding from such assistance any country which hereafter seizes, or imposes any penalty or
sanction against, any United States fishing vessel on account of its
fishing activities in international waters. The provisions of thissubsection shall not be applicable in any case governed by international agreement to which the United States is a party.
(p) øRepealed—1974¿(q) No assistance shall be furnished under this Act to any
country which is in default, during a period in excess of six calendar months, in payment to the United States of principal or interest on any loan made to such country under this Act, unlesssuch country meets its obligations under the loan or unless the
President determines that assistance to such country is in the national interest and notifies the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate of suchdetermination.
(r) No recipient of a loan made under the authority of this Act,any part of which is outstanding on or after the date of enactmentof this subsection, shall be relieved of liability for the repaymentof any part of the principal of or interest on such loan.
(s)(1) In order to restrain arms races and proliferation of sophisticated weapons, and to ensure that resources intended for economic development are not diverted to military purposes, the President shall take into account before furnishing development loans,
Alliance loans or supporting assistance to any country under thisAct, and before making sales under the Food for Peace Act, as
amended:(A) the percentage of the recipient or purchasing country’s
budget which is devoted to military purposes; and(B) the degree to which the recipient or purchasing country
is using its foreign exchange or other resources to acquire military equipment.
(2) The President shall report annually to the Speaker of theHouse of Representatives and the Committee on Foreign Relationsof the Senate his actions in carrying out this provision.
(t) No assistance shall be furnished under this or any other Act
and no sales shall be made under the Food for Peace Act, in or to
any country which has severed or hereafter severs diplomatic relations with the United States or with which the United States has
severed or hereafter severs diplomatic relations, unless (1) diplomatic relations have been resumed with such country and (2)agreements for the furnishing of such assistance or the making ofsuch sales, as the case may be, have been negotiated and enteredinto after the resumption of diplomatic relations with such country.
(u) In any decision to provide or continue to provide any program of assistance to any country under the Foreign Assistance Actof 1961, as amended, there shall be taken into account the status
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224

of the country with respect to its dues, assessments, and other obligations to the United Nations; and where such country is delinquent with respect to any such obligations for the purposes of thefirst sentence of Article 19 of the United Nations Charter, thePresident shall furnish the Committee on Foreign Relations of the
Senate and the Speaker of the House of Representatives a reportsetting forth the assurance given by the government of the country
concerned of paying all of its arrearages and of placing its payments of such obligations on a current basis, or a full explanationof the unusual or exceptional circumstances which render it economically incapable of giving such assurance.
(v) øRepealed—1974¿(w) øRepealed—1978¿(x)(1) All military assistance, all sales of defense articles andservices (whether for cash or by credit, guaranty, or any othermeans), and all licenses with respect to the transportation of arms,
ammunitions, and implements of war (including technical data relating thereto) to the Government of Turkey, shall be suspended on
the date of enactment of this subsection unless and until the President determines and certifies to the Congress that the Governmentof Turkey is in compliance with the Foreign Assistance Act of 1961,
the Foreign Military Sales Act, and any agreement entered into
under such Acts, and that substantial progress toward agreement
has been made regarding military forces in Cyprus: Provided, Thatfor the fiscal year 1978 the President may suspend the provisionsof this subsection and of section 3(c) of the Arms Export Control
Act with respect to cash sales and extensions of credits and guaranties under such Act for the procurement of such defense articles
and defense services as the President determines are necessary toenable Turkey to fulfill her defense responsibilities as a member of
the North Atlantic Treaty Organization, except that during the fiscal year 1978 the total value of defense articles and defense services sold to Turkey under such Act, either for cash or financed bycredits and guaranties, shall not exceed $175,000,000. Any suchsuspension shall be effective only so long as Turkey observes thecease-fire on Cyprus, does not increase its military forces or its civilian population on Cyprus, and does not transfer to Cyprus any
United States supplied arms, ammunition, or implements of war.
The determination required by the proviso in the first sentence of
this paragraph shall be made, on a case-by-case basis, with respect
to each cash sale, each approval for use of credits, and each approval for use of a guaranty for Turkey. Each such determination
shall be reported to the Congress and shall be accompanied by afull and complete statement of the reasons supporting the President’s determination and a statement containing the information
specified in clauses (A) through (D) of section 2(c)(4) of the Act ofOctober 6, 1975 (Public Law 94–104). In any case involving the saleof significant combat equipment on the United States Munitions
List in which the congressional review provisions of section 36(b)of the Arms Export Control Act do not apply, the President may
not issue the letter of offer or approve the use of the credits orguaranty, as the case may be, until the end of the thirty-day period
beginning on the date on which the report required by the preceding sentence is submitted to the Congress.
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Sec. 620A(2) The President shall submit to the Congress within 60 days
after the enactment of this paragraph and at the end of such succeeding sixty-day period, a report on progress made during such period toward the conclusion of a negotiated solution of the Cyprus
conflict.
(y)(1) Except as provided in paragraph (2), the President shallwithhold from amounts made available under this Act or any otherAct and allocated for a country for a fiscal year an amount equal
to the aggregate value of nuclear fuel and related assistance andcredits provided by that country, or any entity of that country, toCuba during the preceding fiscal year.
(2) The requirement to withhold assistance for a country for a
fiscal year under paragraph (1) shall not apply if Cuba—(A) has ratified the Treaty on the Non-Proliferation of Nuclear Weapons (21 UST 483) or the Treaty of Tlatelelco, andCuba is in compliance with the requirements of either such
Treaty;(B) has negotiated and is in compliance with full-scope
safeguards of the International Atomic Energy Agency notlater than two years after ratification by Cuba of such Treaty;and(C) incorporates and is in compliance with internationallyaccepted nuclear safety standards.
(3) The Secretary of State shall prepare and submit to the Congress each year a report containing a description of the amount of
nuclear fuel and related assistance and credits provided by any
country, or any entity of a country, to Cuba during the preceding
year, including the terms of each transfer of such fuel, assistance,or credits.
SEC. 620A. ø22 U.S.C. 2371¿ PROHIBITION ON ASSISTANCE TO GOVERNMENTS SUPPORTING INTERNATIONAL TERRORISM.
(a) PROHIBITION.—The United States shall not provide any as-

sistance under this Act, the Food for Peace Act, the Peace Corps
Act, or the Export-Import Bank Act of 1945 to any country if theSecretary of State determines that the government of that country
has repeatedly provided support for acts of international terrorism.
(b) PUBLICATION OF DETERMINATIONS.—Each determination of
the Secretary of State under subsection (a), including each determination in effect on the date of the enactment of the
Antiterrorism and Arms Export Amendments Act of 1989, shall be
published in the Federal Register.
(c) RESCISSION.—A determination made by the Secretary ofState under subsection (a) may not be rescinded unless the President submits to the Speaker of the House of Representatives andthe Chairman of the Committee on Foreign Relations of the Senate—(1) before the proposed rescission would take effect, a report certifying that—(A) there has been a fundamental change in the leadership and policies of the government of the country concerned;(B) that government is not supporting acts of international terrorism;
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226(C) that government has provided assurances that it
will not support acts of international terrorism in the future; or(2) at least 45 days before the proposed rescission would
take effect, a report justifying the rescission and certifying
that—(A) the government concerned has not provided any
support for international terrorism during the preceding 6month period; and(B) the government concerned has provided assurancesthat it will not support acts of international terrorism in
the future.
(d) WAIVER.—Assistance prohibited by subsection (a) may beprovided to a country described in that subsection if—(1) the President determines that national security interests or humanitarian reasons justify a waiver of subsection (a),except that humanitarian reasons may not be used to justify
assistance under part II of this Act (including chapter 4, chapter 6, and chapter 8), or the Export-Import Bank Act of 1945;
and(2) at least 15 days before the waiver takes effect, thePresident consults with the Committee on Foreign Affairs ofthe House of Representatives and the Committee on Foreign
Relations of the Senate regarding the proposed waiver andsubmits a report to the Speaker of the House of Representatives and the chairman of the Committee on Foreign Relationsof the Senate containing—(A) the name of the recipient country;(B) a description of the national security interests orhumanitarian reasons which require the waiver;(C) the type and amount of and the justification for
the assistance to be provided pursuant to the waiver; and(D) the period of time during which such waiver will
be effective.
The waiver authority granted in this subsection may not be used
to provide any assistance under the Foreign Assistance Act of 1961
which is also prohibited by section 40 of the Arms Export Control
Act.
SEC. 620B. PROHIBITION AGAINST ASSISTANCE AND SALES TO
ARGENTINA.— * * * øRepealed—1981¿
SEC. 620C. ø22 U.S.C. 2373¿ UNITED STATES POLICY REGARDING THE EASTERN MEDITERRANEAN.—(a) The Congress declaresthat the achievement of a just and lasting Cyprus settlement isand will remain a central objective of United States foreign policy.
The Congress further declares that any action of the United Stateswith respect to section 620(x) of this Act shall not signify a lessening of the United States commitment to a just solution to theconflict on Cyprus but is authorized in the expectation that this action will be conducive to achievement of a Cyprus solution and ageneral improvement in relations among Greece, Turkey, and Cyprus and between those countries and the United States. The Congress finds that—(1) a just settlement on Cyprus must involve the establishment of a free and independent government on Cyprus andJune 10, 2019

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Sec. 620C

must guarantee that the human rights of all of the people of
Cyprus are fully protected;(2) a just settlement on Cyprus must include the withdrawal of Turkish military forces from Cyprus;(3) the guidelines for inter-communal talks agreed to in
Nicosia in February 1977 and the United Nations resolutions
regarding Cyprus provide a sound basis for negotiation of ajust settlement on Cyprus;(4) serious negotiations, under United Nations auspices,
will be necessary to achieve agreement in, and implementationof, constitutional and territorial terms within such guidelines;and(5) the recent proposals by both Cypriot communities regarding the return of the refugees to the city of New
Famagusta (Varosha) constitute a positive step and the UnitedStates should actively support the efforts of the Secretary General of the United Nations with respect to this issue.
(b) United States policy regarding Cyprus, Greece, and Turkey
shall be directed toward the restoration of a stable and peaceful atmosphere in the Eastern Mediterranean region and shall therefore
be governed by the following principles:(1) The United States shall actively support the resolutionof differences through negotiations and internationally established peaceful procedures, shall encourage all parties to avoid
provocative actions, and shall strongly oppose any attempt toresolve disputes through force or threat of force.
(2) The United States will accord full support and high priority to efforts, particularly those of the United Nations, tobring about a prompt, peaceful settlement on Cyprus.
(3) All defense articles furnished by the United States tocountries in the Eastern Mediterranean region will be used
only in accordance with the requirements of this Act, the Arms
Export Control Act, and the agreements under which those defense articles were furnished.
(4) The United States will furnish security assistance for
Greece and Turkey only when furnishing that assistance is intended solely for defensive purposes, including when necessary
to enable the recipient country to fulfill its responsibilities asa member of the North Atlantic Treaty Organization, and shallbe designed to ensure that the present balance of militarystrength among countries of the region, including between
Greece and Turkey, is preserved. Nothing in this paragraphshall be construed to prohibit the transfer of defense articles
to Greece or Turkey for legitimate self defense or to enable
Greece or Turkey to fulfill their North Atlantic Treaty Organization obligations.
(5) The United States shall use its influence to ensure thecontinuation of the ceasefire on Cyprus until an equitable negotiated settlement is reached.
(6) The United States shall use its influence to achieve thewithdrawal of Turkish military forces from Cyprus in the context of a solution to the Cyprus problem.
(c) Because progress toward a Cyprus settlement is a high priority of United States policy in the Eastern Mediterranean, theJune 10, 2019

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228

President and the Congress shall continually review that progressand shall determine United States policy in the region accordingly.
To facilitate such a review the President shall, within 60 days after
the date of enactment of this section and at the end of each succeeding 60-day period, transmit to the Speaker of the House ofRepresentatives and the chairman of the Committee on Foreign Relations of the Senate a report on progress made toward the conclusion of a negotiated solution of the Cyprus problem. Such transmissions shall include any relevant reports prepared by the Secretary General of the United Nations for the Security Council.
(d) In order to ensure that United States assistance is furnished consistent with the policies established in this section, thePresident shall, whenever requesting any funds for security assistance under this Act or the Arms Export Control Act for Greece andTurkey, transmit to the Speaker of the House of Representatives
and the chairman of the Committee on Foreign Relations of the
Senate his certification, with a full explanation thereof, that thefurnishing of such assistance will be consistent with the principles
set forth in subsection (b). The President shall also submit such acertification with any notification to the Congress, pursuant to section 36(b) of the Arms Export Control Act, of a proposed sale of defense articles or services to Greece or Turkey.
(e)(1) Any agreement for the sale or provision of any article on
the United States Munitions List (established pursuant to section
38 of the Arms Export Control Act) entered into by the UnitedStates after the enactment of this provision shall expressly statethat the article is being provided by the United States only withthe understanding that it will not be transferred to Cyprus or otherwise used to further the severance or division of Cyprus.
(2) The President shall report to Congress any substantial evidence that equipment provided under any such agreement has beenused in a manner inconsistent with the purposes of this subsection.
øSection 620D repealed by section 7104(l) of Public Law 108–458 (118 Stat. 3788).¿
SEC. 620E. ø22 U.S.C. 2375¿ ASSISTANCE TO PAKISTAN.—(a)The Congress recognizes that Soviet Forces occupying Afghanistanpose a security threat to Pakistan. The Congress also recognizes
that an independent and democratic Pakistan with continued
friendly ties with the United States is in the interest of both nations. The Congress finds that United States assistance will help
Pakistan maintain its independence. Assistance to Pakistan is intended to benefit the people of Pakistan by helping them meet theburdens imposed by the presence of Soviet forces in Afghanistan
and by promoting economic development. In authorizing assistanceto Pakistan, it is the intent of Congress to promote the expeditious
restoration of full civil liberties and representative government inPakistan. The Congress further recognizes that it is in the mutualinterest of Pakistan and the United States to avoid the profoundly
destabilizing effects of the proliferation of nuclear explosive devices
or the capacity to manufacture or otherwise acquire nuclear devices.
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Sec. 620E(b) The United States reaffirms the commitment made in its
1959 bilateral agreement with Pakistan relating to aggression froma Communist or Communist-dominated state.
(c) Security assistance for Pakistan shall be made available inorder to assist Pakistan in dealing with the threat to its security
posed by the Soviet presence in Afghanistan. The United States
will take appropriate steps to ensure that defense articles provided
by the United States to Pakistan are used for defensive purposes.
(d) 36 The President may waive the prohibitions of section 101
of the Arms Export Control Act with respect to any grounds for theprohibition of assistance under that section arising before the effective date of part B of the Nuclear Proliferation Prevention Act of1994 to provide assistance to Pakistan if he determines that to doso is in the national interest of the United States.
(e)(1) No military assistance shall be furnished to Pakistan andno military equipment or technology shall be sold or transferred to
Pakistan, pursuant to the authorities contained in this Act or any
other Act, unless the President shall have certified in writing to
the Speaker of the House of Representatives and the chairman of
the Committee on Foreign Relations of the Senate, during the fiscal
year in which military assistance is to be furnished or militaryequipment or technology is to be sold or transferred, that Pakistan
does not possess a nuclear explosive device and that the proposed
United States military assistance program will reduce significantly
the risk that Pakistan will possess a nuclear explosive device.
(2) 37 The prohibitions in this section do not apply to any
assistance or transfer provided for the purposes of:(A) International narcotics control (including chapter 8of part I of this Act) or any provision of law available forproviding assistance for counternarcotics purposes.
(B) Facilitating military-to-military contact, training(including chapter 5 of part II of this Act) and humanitarian and civic assistance projects.
(C) Peacekeeping and other multilateral operations(including chapter 6 of part II of this Act relating to peacekeeping) or any provision of law available for providing assistance for peacekeeping purposes, except that lethal military equipment provided under this subparagraph shall be
provided on a lease or loan basis only and shall be returned upon completion of the operation for which it wasprovided.
(D) Antiterrorism assistance (including chapter 8 ofpart II of this Act relating to antiterrorism assistance) or
any provision of law available for antiterrorism assistancepurposes.
36 Section 822(b)(2) of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995
(P.L. 103–236) amended section 620E(d) of the Foreign Assistance Act of 1961 to read as shown
above.
Section 851 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (P.L. 103–236) provides that on ‘‘the date of enactment of the first Foreign Relations Authorization Act
that is enacted after the enactment of this Act, the provisions of parts A and B of this title shallcease to be effective, the amendments made by those parts shall be repealed, and any provisionof law repealed by those parts shall be reenacted.’’37 The margins for paragraphs (2) through (4) are so in law.

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230(3) The restrictions of this subsection shall continue toapply to contracts for the delivery of F–16 aircraft to Pakistan.
(4) Notwithstanding the restrictions contained in this subsection, military equipment, technology, or defense services,other than F–16 aircraft, may be transferred to Pakistan pursuant to contracts or cases entered into before October 1, 1990.
(f) STORAGE COSTS.—The President may release the Government of Pakistan of its contractual obligation to pay the UnitedStates Government for the storage costs of items purchased priorto October 1, 1990, but not delivered by the United States Government pursuant to subsection (e) and may reimburse the Government of Pakistan for any such amount paid, on such terms andconditions as the President may prescribe: Provided, That suchpayments have no budgetary impact.
(g) INAPPLICABILITY OF RESTRICTIONS TO PREVIOUSLY OWNEDITEMS.—Section 620E(e) does not apply to broken, worn or
unupgraded items or their equivalent which Pakistan paid for andtook possession of prior to October 1, 1990 and which the Government of Pakistan sent to the United States for repair or upgrade.
Such equipment or its equivalent may be returned to the Government of Pakistan: Provided, That the President determines and so
certifies to the appropriate congressional committees that such
equipment or equivalent neither constitutes nor has received any
significant qualitative upgrade since being transferred to theUnited States and that its total value does not exceed $25,000,000.
(h) BALLISTIC MISSILE SANCTIONS NOT AFFECTED.—Nothing
contained herein shall affect sanctions for transfers of missile
equipment or technology required under section 11B of the Export
Administration Act of 1979 or section 73 of the Arms Export Control Act.
SEC. 620F. ø22 U.S.C. 2376¿ NUCLEAR NON-PROLIFERATION POLICY IN
SOUTH ASIA.
(a) FINDINGS.—The Congress finds that—(1) the proliferation of weapons of mass destruction remains one of the most serious threats to international peaceand stability;(2) South Asia, in particular, is an area where the threatof a regional nuclear exchange remains high due to continued
Indo-Pakistani tensions over issues such as Kashmir;(3) to date, United States efforts to halt proliferation inSouth Asia have failed;(4) although global disarmament is a desirable goal whichshould be vigorously pursued, both regional and sub-regional
security arrangements can serve to decrease tensions and promote non-proliferation in certain areas;(5) thus far, there has been some success on a regional
basis, such as the South Pacific Nuclear Weapons Free Zone
and the Treaty of Tlatelolco in Latin America;(6) in particular, in Latin America, the Treaty of Tlatelolco
has been signed by all the nuclear powers;(7) a critical part of this treaty is Protocol II which prohibits nuclear attacks by nuclear weapons states on signatories
to the treaty;
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Sec. 620H(8) in 1991, a proposal was made for a regional conference
on non-proliferation in South Asia which would include Pakistan, India, the People’s Republic of China, the Soviet Union,
and the United States; and(9) thus far, Pakistan, China, Russia, and the UnitedStates have expressed interest in attending such a conference,
whereas India has refused to attend.
(b) POLICY.—It is the sense of the Congress that the President
should pursue a policy which seeks a regional negotiated solution
to the issue of nuclear non-proliferation in South Asia at the earliest possible time, including a protocol to be signed by all nuclear
weapons states, prohibiting nuclear attacks by nuclear weapons
states on countries in the region. Such a policy should have as its
ultimate goal concurrent accession by Pakistan and India to the
Nuclear Non-Proliferation Treaty, and should also include as needed a phased approach to that goal through a series of agreements
among the parties on nuclear issues, such as the agreement
reached by Pakistan and India not to attack one another’s nuclear
facilities.
SEC. 620G. ø22 U.S.C. 2377¿ PROHIBITION ON ASSISTANCE TO COUNTRIES THAT AID TERRORIST STATES.
(a) WITHHOLDING OF ASSISTANCE.—The President shall with-hold assistance under this Act to the government of any country
that provides assistance to the government of any other country forwhich the Secretary of State has made a determination under section 620A.
(b) WAIVER.—Assistance prohibited by this section may be furnished to a foreign government described in subsection (a) if the
President determines that furnishing such assistance is importantto the national interests of the United States and, not later than
15 days before obligating such assistance, furnishes a report to theappropriate committees of Congress including—(1) a statement of the determination;(2) a detailed explanation of the assistance to be provided;(3) the estimated dollar amount of the assistance; and(4) an explanation of how the assistance furthers UnitedStates national interests.
SEC. 620H. ø22 U.S.C. 2378¿ PROHIBITION ON ASSISTANCE TO COUNTRIES THAT PROVIDE MILITARY EQUIPMENT TO TERRORIST STATES.
(a) PROHIBITION.—(1) IN GENERAL.—The President shall withhold assistanceunder this Act to the government of any country that provides
lethal military equipment to a country the government of
which the Secretary of State has determined is a terrorist government for the purposes of section 6(j) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)), or 620A of the Foreign Assistance Act of 1961 38 (22 U.S.C. 2371).
(2) APPLICABILITY.—The prohibition under this section
with respect to a foreign government shall terminate 1 year
38 The reference to ‘‘620A of the Foreign Assistance Act of 1961’’ in subsection (a)(1) as addedby section 326 of the Antiterrorism and Effective Death Penalty Act of 1996 (P.L. 104–131; 110
Stat. 1256) probably should be to ‘‘620A of this Act’’.

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232

after that government ceases to provide lethal military equipment. This section applies with respect to lethal militaryequipment provided under a contract entered into after thedate of enactment of this Act.
(b) WAIVER.—Notwithstanding any other provision of law, assistance may be furnished to a foreign government described insubsection (a) if the President determines that furnishing such assistance is important to the national interests of the United Statesand, not later than 15 days before obligating such assistance, furnishes a report to the appropriate committees of Congress including—(1) a statement of the determination;(2) a detailed explanation of the assistance to be provided;(3) the estimated dollar amount of the assistance; and(4) an explanation of how the assistance furthers UnitedStates national interests.
SEC. 620I. PROHIBITION ON ASSISTANCE TO COUNTRIES THATRESTRICT UNITED STATES HUMANITARIAN ASSISTANCE.—(a) IN GENERAL.—No assistance shall be furnished under
this Act or the Arms Export Control Act to any country when
it is made known to the President that the government of suchcountry prohibits or otherwise restricts, directly or indirectly,
the transport or delivery of United States humanitarian assistance.
(b) EXCEPTION.—Assistance may be furnished without regard to the restriction in subsection (a) if the President determines that to do so is in the national security interest of theUnited States.
(c) NOTICE.—Prior to making any determination undersubsection (b), the President shall notify the Committee on
International Relations, the Committee on Foreign Relations,and the Committees on Appropriations of the Senate andHouse of Representatives of his intention to make such a determination, the effective date of the determination, and thereasons for making the determination.
SEC. 620J. ø22 U.S.C. 2378a¿ DEPLETED URANIUM AMMUNITION.
(a) PROHIBITION.—Except as provided in subsection (b), none of

the funds made available to carry out this Act or any other Act
may be made available to facilitate in any way the sale of M–833
antitank shells or any comparable antitank shells containing a depleted uranium penetrating component to any country other than—(1) a country that is a member of the North Atlantic Treaty Organization;(2) a country that has been designated as a major nonNATO ally (as defined in section 644(q)); or(3) Taiwan.
(b) EXCEPTION.—The prohibition contained in subsection (a)shall not apply with respect to the use of funds to facilitate the saleof antitank shells to a country if the President determines that to
do so is in the national security interest of the United States.
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Sec. 620K

SEC. 620K. ø22 U.S.C. 2378b¿ LIMITATION ON ASSISTANCE TO THE PALESTINIAN AUTHORITY.
(a) LIMITATION.—Assistance may be provided under this Act tothe Hamas-controlled Palestinian Authority only during a period
for which a certification described in subsection (b) is in effect.
(b) CERTIFICATION.—A certification described in subsection (a)is a certification transmitted by the President to Congress that contains a determination of the President that—(1) no ministry, agency, or instrumentality of the Palestinian Authority is effectively controlled by Hamas, unless theHamas-controlled Palestinian Authority has—(A) publicly acknowledged the Jewish state of Israel’s
right to exist; and(B) committed itself and is adhering to all previous
agreements and understandings with the United States
Government, with the Government of Israel, and with theinternational community, including agreements and understandings pursuant to the Performance-Based Roadmap to
a Permanent Two-State Solution to the Israeli-Palestinian
Conflict (commonly referred to as the ‘‘Roadmap’’); and(2) the Hamas-controlled Palestinian Authority has madedemonstrable progress toward—(A) completing the process of purging from its security
services individuals with ties to terrorism;(B) dismantling all terrorist infrastructure within its
jurisdiction, confiscating unauthorized weapons, arresting
and bringing terrorists to justice, destroying unauthorizedarms factories, thwarting and preempting terrorist attacks, and fully cooperating with Israel’s security services;(C) halting all anti-American and anti-Israel incitement in Palestinian Authority-controlled electronic andprint media and in schools, mosques, and other institutions it controls, and replacing educational materials, including textbooks, with materials that promote peace, tolerance, and coexistence with Israel;(D) ensuring democracy, the rule of law, and an independent judiciary, and adopting other reforms such as ensuring transparent and accountable governance; and(E) ensuring the financial transparency and accountability of all government ministries and operations.
(c) RECERTIFICATIONS.—Not later than 90 days after the dateon which the President transmits to Congress an initial certification under subsection (b), and every six months thereafter—(1) the President shall transmit to Congress a recertification that the conditions described in subsection (b) are continuing to be met; or(2) if the President is unable to make such a recertification, the President shall transmit to Congress a report that
contains the reasons therefor.
(d) CONGRESSIONAL NOTIFICATION.—Assistance made available
under this Act to the Palestinian Authority may not be provided
until 15 days after the date on which the President has provided
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cordance with the procedures applicable to reprogramming notifications under section 634A(a) of this Act.
(e) NATIONAL SECURITY WAIVER.—(1) IN GENERAL.—Subject to paragraph (2), the President
may waive subsection (a) with respect to—(A) the administrative and personal security costs of
the Office of the President of the Palestinian Authority;(B) the activities of the President of the Palestinian
Authority to fulfill his or her duties as President, including
to maintain control of the management and security of border crossings, to foster the Middle East peace process, andto promote democracy and the rule of law; and(C) assistance for the judiciary branch of the Palestinian Authority and other entities.
(2) CERTIFICATION.—The President may only exercise thewaiver authority under paragraph (1) after—(A) consulting with, and submitting a written policy
justification to, the appropriate congressional committees;and(B) certifying to the appropriate congressional committees that—(i) it is in the national security interest of theUnited States to provide assistance otherwise prohibited under subsection (a); and(ii) the individual or entity for which assistance is
proposed to be provided is not a member of, or effectively controlled by (as the case may be), Hamas or
any other foreign terrorist organization.
(3) REPORT.—Not later than 10 days after exercising thewaiver authority under paragraph (1), the President shall submit to the appropriate congressional committees a report describing how the funds provided pursuant to such waiver willbe spent and detailing the accounting procedures that are inplace to ensure proper oversight and accountability.
(4) TREATMENT OF CERTIFICATION AS NOTIFICATION OF PROGRAM CHANGE.—For purposes of this subsection, the certification required under paragraph (2)(B) shall be deemed to bea notification under section 634A and shall be considered in accordance with the procedures applicable to notifications submitted pursuant to that section.
(f) DEFINITIONS.—In this section:(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term‘‘appropriate congressional committees’’ means—(A) the Committee on International Relations and theCommittee on Appropriations of the House of Representatives; and(B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate.
(2) FOREIGN TERRORIST ORGANIZATION.—The term ‘‘foreign
terrorist organization’’ means an organization designated as aforeign terrorist organization by the Secretary of State in accordance with section 219(a) of the Immigration and Nationality Act (8 U.S.C. 1189(a)).
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Sec. 620L(3) PALESTINIAN AUTHORITY.—The term ‘‘Palestinian Authority’’ means the interim Palestinian administrative organization that governs part of the West Bank and all of the Gaza
Strip (or any successor Palestinian governing entity), including
the Palestinian Legislative Council.
SEC. 620L. ø22 U.S.C. 2378c¿ LIMITATION ON ASSISTANCE FOR THE
WEST BANK AND GAZA.
(a) LIMITATION.—Assistance may be provided under this Act tonongovernmental organizations for the West Bank and Gaza only
during a period for which a certification described in section
620K(b) is in effect with respect to the Palestinian Authority.
(b) EXCEPTIONS.—Subsection (a) shall not apply with respect tothe following:(1) ASSISTANCE TO MEET BASIC HUMAN NEEDS.—Assistanceto meet food, water, medicine, health, or sanitation needs, orother assistance to meet basic human needs.
(2) ASSISTANCE TO PROMOTE DEMOCRACY.—Assistance topromote democracy, human rights, freedom of the press, nonviolence, reconciliation, and peaceful coexistence, provided thatsuch assistance does not directly benefit Hamas or any otherforeign terrorist organization.
(3) ASSISTANCE FOR INDIVIDUAL MEMBERS OF THE PALESTINIAN LEGISLATIVE COUNCIL.—Assistance, other than fundingof salaries or salary supplements, to individual members of thePalestinian Legislative Council who the President determines
are not members of Hamas or any other foreign terrorist organization, for the purposes of facilitating the attendance of suchmembers in programs for the development of institutions ofdemocratic governance, including enhancing the transparent
and accountable operations of such institutions, and providing
support for the Middle East peace process.
(4) OTHER TYPES OF ASSISTANCE.—Any other type of assistance if the President—(A) determines that the provision of such assistance isin the national security interest of the United States; and(B) not less than 30 days prior to the obligation ofamounts for the provision of such assistance—(i) consults with the appropriate congressional
committees regarding the specific programs, projects,
and activities to be carried out using such assistance;and(ii) submits to the appropriate congressional committees a written memorandum that contains the determination of the President under subparagraph (A).
(c) MARKING REQUIREMENT.—Assistance provided under thisAct to nongovernmental organizations for the West Bank and Gaza
shall be marked as assistance from the American people or theUnited States Government unless the Secretary of State or, as appropriate, the Administrator of the United States Agency for International Development, determines that such marking will endanger
the lives or safety of persons delivering such assistance or would
have an adverse effect on the implementation of that assistance.
(d) CONGRESSIONAL NOTIFICATION.—Assistance made available
under this Act to nongovernmental organizations for the West
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Bank and Gaza may not be provided until 15 days after the dateon which the President has provided notice thereof to the Committee on International Relations and the Committee on Appropriations of the House of Representatives and to the Committee on Foreign Relations and the Committee on Appropriations of the Senate
in accordance with the procedures applicable to reprogramming notifications under section 634A(a) of this Act.
(e) DEFINITIONS.—In this section:(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—the term‘‘appropriate congressional committees’’ means—(A) the Committee on International Relations and theCommittee on Appropriations of the House of Representatives; and(B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate.
(2) FOREIGN TERRORIST ORGANIZATION.—The term ‘‘foreign
terrorist organization’’ means an organization designated as aforeign terrorist organization by the Secretary of State in accordance with section 219(a) of the Immigration and Nationality Act (8 U.S.C. 1189(a)).
SEC. 620M. ø22 U.S.C. 2378d¿ LIMITATION ON ASSISTANCE TO SECURITY
FORCES.
(a) IN GENERAL.—No assistance shall be furnished under thisAct or the Arms Export Control Act to any unit of the security
forces of a foreign country if the Secretary of State has credible information that such unit has committed a gross violation of humanrights.
(b) EXCEPTION.—The prohibition in subsection (a) shall not
apply if the Secretary determines and reports to the Committee on
Foreign Relations of the Senate, the Committee on Foreign Affairsof the House of Representatives, and the Committees on Appropriations that the government of such country is taking effective steps
to bring the responsible members of the security forces unit to justice.
(c) DUTY TO INFORM.—In the event that funds are withheld
from any unit pursuant to this section, the Secretary of State shallpromptly inform the foreign government of the basis for such action
and shall, to the maximum extent practicable, assist the foreign
government in taking effective measures to bring the responsible
members of the security forces to justice.
(d) CREDIBLE INFORMATION.—The Secretary shall establish,
and periodically update, procedures to—(1) ensure that for each country the Department of State
has a current list of all security force units receiving UnitedStates training, equipment, or other types of assistance;(2) facilitate receipt by the Department of State andUnited States embassies of information from individuals andorganizations outside the United States Government aboutgross violations of human rights by security force units;(3) routinely request and obtain such information from the
Department of Defense, the Central Intelligence Agency, andother United States Government sources;(4) ensure that such information is evaluated and preserved;
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Sec. 621A(5) ensure that when an individual is designated to receive
United States training, equipment, or other types of assistancethe individual’s unit is vetted as well as the individual;(6) seek to identify the unit involved when credible information of a gross violation exists but the identity of the unit
is lacking; and(7) make publicly available, to the maximum extent practicable, the identity of those units for which no assistance shallbe furnished pursuant to subsection (a).
CHAPTER 2—ADMINISTRATIVE PROVISIONS
SEC. 621. ø22 U.S.C. 2381¿ EXERCISE OF FUNCTIONS.—(a) The
President may exercise any functions conferred upon him by thisAct through such agency or officer of the United States Government as he shall direct. The head of any such agency or such officer may from time to time promulgate such rules and regulations
as may be necessary to carry out such functions and may delegate
authority to perform any such functions, including, if he shall so
specify, the authority successively to redelegate any of such functions to any of his subordinates. In providing technical assistanceunder this Act, the head of any such agency or such officer shall
utilize, to the fullest extent practicable, goods and professional andother services from private enterprise on a contract basis. In suchfields as education, health, housing, or agriculture, the facilities
and resources of other Federal agencies shall be utilized when such
facilities are particularly or uniquely suitable for technical assistance, are not competitive with private enterprise, and can be madeavailable without interfering unduly with domestic programs.
(b) The President shall issue and enforce regulations determining the eligibility of any person to receive funds made available
under this Act. A person may be suspended under such regulations
for a temporary period pending the completion of an investigation
and any resulting judicial or debarment proceedings, upon cause
for belief that such person or an affiliate thereof probably has undertaken conduct which constitutes a cause for debarment; and,after an opportunity has been afforded to such person for a hearing, he may be debarred for an additional period, not to exceed
three years. Among the causes for debarment shall be (1) offering
or accepting a bribe or other illegal payment or credit in connection
with any transaction financed with funds made available under
this Act; or (2) committing a fraud in the procurement or performance of any contract financed with funds made available under thisAct; or (3) acting in any other manner which shows a lack of integrity or honesty in connection with any transaction financed withfunds made available under this Act. Reinstatement of eligibility ineach particular case shall be subject to such conditions as the
President shall direct. Each person whose eligibility is denied orsuspended under this subsection shall, upon request, be entitled toa review of his eligibility not less often than once every two years.
SEC. 621A. ø22 U.S.C. 2381a¿ STRENGTHENED MANAGEMENT
PRACTICES.—(a) The Congress believes that United States foreign
aid funds could be utilized more effectively by the application of advanced management decisionmaking, information and analysis
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techniques such as systems analysis, automatic data processing,
benefit-cost studies, and information retrieval.
(b) To meet this need, the President shall establish a management system that includes: the definition of objectives and programs for United States foreign assistance; the development of
quantitative indicators of progress toward these objectives; the orderly consideration of alternative means for accomplishing such objectives; and the adoption of methods for comparing actual resultsof programs and projects with those anticipated when they were
undertaken. The system should provide information to the agency
and to Congress that relates agency resources, expenditures, andbudget projections to such objectives and results in order to assist
in the evaluation of program performance, the review of budgetary
requests, and the setting of program priorities.
(c) øRepealed—1978¿
SEC. 622. ø22 U.S.C. 2382¿ COORDINATION WITH FOREIGN POLICY.—(a) Nothing contained in this Act shall be construed to infringe upon the powers or functions of the Secretary of State.
(b) The President shall prescribe appropriate procedures to assure coordination among representatives of the United States Government in each country, under the leadership of the Chief of theUnited States Diplomatic Mission. The Chief of the Diplomatic Mission shall make sure that recommendations of such representatives
pertaining to military assistance (including civic action) and military education and training programs are coordinated with politicaland economic considerations, and his comments shall accompany
such recommendations if he so desires.
(c) Under the direction of the President, the Secretary of State
shall be responsible for the continuous supervision and general direction of economic assistance, military assistance, and militaryeducation and training programs, including but not limited to determining whether there shall be a military assistance (including
civic action) or a military education and training program for acountry and the value thereof, to the end that such programs are
effectively integrated both at home and abroad and the foreign policy of the United States is best served thereby.
SEC. 623. ø22 U.S.C. 2383¿ THE SECRETARY OF DEFENSE.—(a)In the case of assistance under part II of this Act, the Secretaryof Defense shall have primary responsibility for—(1) the determination of military end-item requirements;(2) the procurement of military equipment in a manner
which permits its integration with service programs;(3) the supervision of end-item use by the recipient countries;(4) the supervision of the training of foreign military andrelated civilian personnel;(5) the movement and delivery of military end-items; and(6) within the Department of Defense, the performance of
any other functions with respect to the furnishing of military
assistance, education and training.
SEC. 624. ø22 U.S.C. 2384¿ STATUTORY OFFICERS.—(a) The
President may appoint, by and with the advice and consent of the
Senate, twelve officers in the agency primarily responsible for administering part I, * * * øRepealed—1964¿
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Sec. 625(1) øRepealed—1964¿(2) øRepealed—1964¿(3) * * * øRepealed—1964¿ and in the selection of one ofsuch persons due consideration shall be given to persons qualified as professional engineers.
(b) Within the limitations established by subsection (a) of thissection, the President may fix the rate of compensation, and may
designate the title of, any officer appointed pursuant to the authority contained in that subsection. The President may also fix theorder of succession among the officers provided for in subsection (a)of this section in the event of the absence, death, resignation, or
disability of one or more of said officers.
(c) Any person who was appointed by and with the advice andconsent of the Senate, to any statutory position authorized by any
provision of law repealed by section 642(a) and who is serving in
one of such positions at the time of transfer of functions pursuant
to subsections (c) and (d) of section 621, may be appointed by the
President to a comparable position authorized by subsection (a) of
this section on the date of the establishment of the agency primarily responsible for administering part I, without further action
by the Senate.
(d) øRepealed—1978¿(e) In addition to the officers otherwise provided for in this section, the President shall appoint, by and with the advice and consent of the Senate, one officer for the purpose of coordinating security assistance programs.
(f) øRepealed—1994 Pub. L. 103–236¿(g) * * * øRepealed—1981¿
SEC. 625. ø22 U.S.C. 2385¿ EMPLOYMENT OF PERSONNEL.—(a)Any agency or officer of the United States Government carrying out
functions under this Act is authorized to employ such personnel as
the President deems necessary to carry out the provisions and purposes of this Act.
(b) Of the personnel employed in the United States to carry out
part I or coordinate part I and part II, not to exceed one hundred
and ten may be appointed, compensated or removed without regard
to the provisions of any law, of whom not to exceed fifty-one may
be compensated at rates higher than those provided for grade 15of the general schedule established by section 5332 of title 5 of theUnited States Code, but not in excess of the highest rate of grade
18 of such general schedule: Provided, That, under such regulations as the President shall prescribe, officers and employees of theUnited States Government who are appointed to any of the above
positions may be entitled, upon removal from such position, to reinstatement to the position occupied at the time of appointment or
to a position of comparable grade and salary. Such positions shallbe in addition to those authorized by law to be filled by Presidential appointment, and in addition to the number authorized bysection 5108 of title 5 of the United States Code.
(c) Of the personnel employed in the United States to carry out
part II, or any Act superseding part II in whole or in part, not toexceed eight may be compensated at rates higher than those provided for grade 15 of the general schedule established by section
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highest rate of grade 18 of such general schedule. Such positions
shall be in addition to those authorized by law to be filled by Presidential appointment, and in addition to the number authorized bysection 5108 of title 5 of the United States Code.
(d) For the purpose of performing functions under this Act outside the United States, the President may employ or assign individuals, or may authorize the employment or assignment of officers or
employees by agencies of the United States Government which are
not authorized to utilize the Foreign Service personnel system, whoshall receive compensation at any of the rates provided for under
section 402 or section 403 of the Foreign Service Act of 1980, or
under chapter 53 of title 5, United States Code, or at any otherrate authorized by law, together with allowances and benefits
under the Foreign Service Act of 1980. Individuals so employed orassigned shall be entitled, except to the extent that the President
may specify otherwise in cases in which the period of employment
or assignment exceeds thirty months, to the same benefits as areprovided by section 310 of that Act for individuals appointed to theForeign Service.
(e) * * * øRepealed—1981¿(f) Funds provided for in agreements with foreign countries forthe furnishing of services under this Act with respect to specificprojects shall be deemed to be obligated for the services of personnel employed by agencies of the United States Government(other than the agencies primarily responsible for administering
part I or part II of this Act) as well as personnel not employed by
the United States Government.
(g) * * * øRepealed—1981¿(h) Notwithstanding any other provision of law, officers andemployees of the United States Government performing functions
under this Act shall not accept from any foreign country any compensation or other benefits. Arrangements may be made by the
President with such countries for reimbursement to the UnitedStates Government or other sharing of the cost of performing suchfunctions.
(i) To the maximum extent practicable officers and employees
performing functions under this Act abroad shall be assigned tocountries and positions for which they have special competence,such as appropriate language and practical experience.
(j)(1)(A) To facilitate the assignment of persons to Iraq, Pakistan, and Afghanistan or to posts vacated by members of the Service assigned to Iraq, Pakistan, and Afghanistan, the Administratorof the United States Agency for International Development may
waive the application of the provisions of section 8344 or 8468 of
title 5, United States Code, on a case-by-case basis for employmentof an annuitant in a position in the United States Agency for International Development for which there is exceptional difficulty in recruiting or retaining a qualified employee, or when a temporary
emergency hiring need exists.
(B) The authority of the Administrator under subparagraph (A)shall terminate on October 1, 2010 39. An annuitant reemployed
39 Paragraph (6) of section 7034(j) of division K of Public Law 114–113 provides that ‘‘[s]ection
625(j)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2385(j)(1)) shall be applied by substituting ‘September 30, 2016’ for ‘October 1, 2010’ in subparagraph (B)’’.

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Sec. 627

pursuant to such authority prior to such termination date may be
employed for a period ending not later than one year after suchdate.
(2) The Administrator should prescribe procedures for the exercise of any authority under this subsection, including criteria forany exercise of authority and procedures for a delegation of authority.
(3) An employee for whom a waiver under this section is in effect shall not be considered an employee for purposes of subchapter
III of chapter 83, or chapter 84 of title 5, United States Code.
(k) øRepealed—1980¿
SEC. 626. ø22 U.S.C. 2386¿ EXPERTS, CONSULTANTS, AND RETIRED OFFICERS.—(a) Experts and consultants or organizations
thereof may, as authorized by section 3109 of title 5 of the UnitedStates Code, be employed for the performance of functions under
this Act, and individuals so employed may be compensated at rates
not in excess of the daily equivalent of the highest rate which may
be paid to an employee under the General Schedule established bysection 5332 of title 5, United States Code, and while away fromtheir homes or regular places of business, they may be paid actual
travel expenses and per diem in lieu of subsistence at the applicable rate prescribed in the standardized Government travel regulations, as amended from time to time. Contracts for such employment with such organizations, employment of personnel as experts
and consultants, not to exceed ten in number, contracts for such
employment of retired military personnel with specialized researchand development experience, not to exceed ten in number, and contracts for such employment of retired military personnel with specialized experience of a broad politico-military nature, not to exceed
five in number, may be renewed annually.
(b) Service of an individual as an expert or consultant undersubsection (a) of this section shall not be considered as employment
or holding of office or position bringing such individual within theprovisions of section 3323(a) of title 5 of the United States Code.
(c) Persons of outstanding experience and ability may be employed without compensation by any agency of the United States
Government for the performance of functions under this Act in accordance with the provisions of section 710(b) of the Defense Production Act of 1950, as amended (50 U.S.C. App. 2160(b)), and regulations issued thereunder.
SEC. 627. ø22 U.S.C. 2387¿ DETAIL OF PERSONNEL TO FOREIGN
GOVERNMENTS.—Whenever the President determines it to be infurtherance of the purposes of this Act, the head of any agency of
the United States Government is authorized to detail or assign any
officer or employee of his agency to any office or position with any
foreign government or foreign government agency, where acceptance of such office or position does not involve the taking of an oathof allegiance to another government or the acceptance of compensation or other benefits from any foreign country by such officer or
employee.
Paragraph (1) of section 7034(k) of division K of Public Law 115–31 provides that ‘‘[s]ection
625(j)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2385(j)(1)) shall be applied by substituting ‘September 30, 2017’ for ‘October 1, 2010’ in subparagraph (B)’’.

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SEC. 628. ø22 U.S.C. 2388¿ DETAIL OF PERSONNEL TO INTERNATIONAL ORGANIZATIONS.—Whenever the President determines it
to be consistent with and in furtherance of the purposes of this Act,the head of any agency of the United States Government is authorized to detail, assign, or otherwise make available to any international organization any officer or employee of his agency to servewith, or as a member of, the international staff of such organization, or to render any technical, scientific, or professional advice orservice to, or in cooperation with, such organization.
SEC. 629. ø22 U.S.C. 2389¿ STATUS OF PERSONNEL DETAILED.—(a) Any officer or employee, while assigned or detailed
under section 627 or 628 of this Act, shall be considered, for the
purpose of preserving his allowances, privileges, rights, seniority,and other benefits as such, an officer or employee of the UnitedStates Government and of the agency of the United States Government from which detailed or assigned, and he shall continue to receive compensation, allowances, and benefits from funds appropriated to that agency or made available to that agency under thisAct.
(b) Any officer or employee assigned, detailed, or appointed
under section 627, 628, 631, or 624(d) of this Act is authorized toreceive under such regulations as the President may prescribe, representation allowances similar to those allowed under section 905
of the Foreign Service Act of 1980. The authorization of such allowances and other benefits and the payment thereof out of any appropriations available therefor shall be considered as meeting all therequirements of section 5536 of title 5 of the United States Code.
SEC. 630. ø22 U.S.C. 2390¿ TERMS OF DETAIL OR ASSIGNMENT.—Details or assignments may be made under section 627 or
628 of this Act or section 408 of the Mutual Security Act of 1954,
as amended—(1) without reimbursement to the United States Government by the foreign government or international organization;(2) upon agreement by the foreign government or international organization, to reimburse the United States Government for compensation, travel expenses, benefits, and allowances, or any part thereof, payable to the officer or employee
concerned during the period of assignment or detail; and such
reimbursements (including foreign currencies) shall be credited
to the appropriation, fund, or account utilized for paying suchcompensation, travel expenses, benefits, or allowances, or to
the appropriation, fund, or account currently available for such
purposes;(3) upon an advance of funds, property, or services by theforeign government or international organization to the UnitedStates Government accepted with the approval of the President
for specified uses in furtherance of the purposes of this Act;and funds so advanced may be established as a separate fundin the Treasury of the United States Government, to be available for the specified uses, and to be used for reimbursementof appropriations or direct expenditure subject to the provisions of this Act, any unexpended balance of such account tobe returned to the foreign government or international organization; orJune 10, 2019

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Sec. 632(4) subject to the receipt by the United States Governmentof a credit to be applied against the payment by the UnitedStates Government of its share of the expenses of the international organization to which the officer or employee is detailed or assigned, such credit to be based upon the compensations, travel expenses, benefits and allowances, or any part
thereof, payable to such officer or employee during the period
of detail or assignment in accordance with section 629.
SEC. 631. ø22 U.S.C. 2391¿ MISSIONS AND STAFFS ABROAD.—(a) The President may maintain special missions or staffs outside
the United States in such countries and for such periods of time
as may be necessary to carry out the purposes of this Act. Each
such special mission or staff shall be under the direction of a chief.
(b) The chief and his deputy of each special mission or staff
carrying out the purposes of part I shall be appointed by the President, and may, notwithstanding any other law, be removed by the
President at his discretion. Such chief shall be entitled to receive
such compensation and allowances as are authorized by the Foreign Service Act of 1980, not to exceed those authorized for a chiefof mission (as defined in section 102(a)(3) of that Act), as the President shall determine to be appropriate.
(c) The President may appoint any United States citizen who
is not an employee of the United States Government or may assign
any United States citizen who is a United States Government employee to serve as Chairman of the Development Assistance Committee or any successor committee thereto of the Organization for
Economic Cooperation and Development upon election thereto bymembers of said Committee, and, in his discretion, may terminate
such appointment or assignment, notwithstanding any other provision of law. Such person may receive such compensation and allowances as are authorized by the Foreign Service Act of 1980, not toexceed those authorized for a chief of mission (as defined in section
102(a)(3) of that Act), as the President shall determine to be appropriate. Such person (if not a United States Government employee
who is assigned to serve as Chairman) shall be deemed to be an
employee of the United States Government for purposes of chapters81, 83, 87, and 89 of title 5, United States Code. Such person may
also, in the President’s discretion, receive any other benefits andperquisites available under this Act to chiefs of special missions or
staffs outside the United States established under this section.
(d) Wherever practicable, especially in the case of the smaller
programs, assistance under part I of this Act shall be administeredunder the direction of the Chief of the United States Diplomatic
Mission by the principal economic officer of the mission.
SEC. 632. ø22 U.S.C. 2392¿ ALLOCATION AND REIMBURSEMENTAMONG AGENCIES.—(a) The President may allocate or transfer toany agency of the United States Government any part of any funds
available for carrying out the purposes of this Act, including any
advance to the United States Government by any country or international organization for the procurement of commodities, defense
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tivities of the agencies of the United States Government to whichsuch funds are allocated or transferred.
(b) Any officer of the United States Government carrying out
functions under this Act may utilize the services (including defense
services) and facilities of, or procure commodities, defense articles,or military education and training from, any agency of the UnitedStates Government as the President shall direct, or with the consent of the head of such agency, and funds allocated pursuant tothis subsection to any such agency may be established in separate
appropriation accounts on the books of the Treasury.
(c) In the case of any commodity, service, or facility procured
from any agency of the United States Government to carry out partI, reimbursement or repayment shall be made to such agency fromfunds available to carry out such part. Such reimbursement or payment shall be at replacement cost, or, if required by law, at actual
cost, or, in the case of services procured from the Department of
Defense to carry out chapter 8 of part I, the amount of the additional costs incurred by the Department of Defense in providing
such services, or at any other price authorized by law and agreed
to by the owning or disposing agency. The amount of any such reimbursement or payment shall be credited to current applicable appropriations, funds, or accounts, from which there may be procured
replacements of similar commodities, services, or facilities, exceptthat where such appropriations, funds, or accounts are not reimbursable except by reason of this subsection, and when the owningor disposing agency determines that such replacement is not necessary, any funds received in payment therefor shall be deposited
into the Treasury as miscellaneous receipts.
(d) Except as otherwise provided in section 506, reimbursement
shall be made to any United States Government agency, fromfunds available for use under part II, for any assistance furnishedunder part II from, by, or through such agency. Such reimbursement shall be in an amount equal to the value (as defined in section 644(m)) of the defense articles or of the defense services (otherthan salaries of members of the Armed Forces of the UnitedStates), or other assistance furnished, plus expenses arising fromor incident to operations under part II (other than salaries of theArmed Forces of the United States and unfunded estimated costsof civilian retirement and other benefits). The amount of such reimbursement shall be credited to the current applicable appropriations, funds, or accounts of such agency.
(e) In furnishing assistance under this Act, accounts may be established on the books of any agency of the United States Government or, on terms and conditions approved by the Secretary of theTreasury, in banking institutions in the United States, (1) against
which letters of commitment may be issued which shall constituterecordable obligations of the United States Government, and moneys due or to become due under such letters of commitment shallbe assignable under the Assignment of Claims Act of 1940, as
amended (second and third paragraphs of 31 U.S.C. 203 and 41
U.S.C. 15), and (2) from which disbursements may be made to, orwithdrawals may be made by, recipient countries or agencies, organizations, or persons upon presentation of contracts, invoices, orother appropriate documentation. Expenditure of funds which haveJune 10, 2019

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Sec. 633A

been made available through accounts so established shall be accounted for on standard documentation required for expenditure offunds of the United States Government: Provided, That such expenditures for commodities, defense articles, military educationand training services (including defense services), or facilities procured outside the United States may be accounted for exclusively
on such certification as may be prescribed in regulations approvedby the Comptroller General of the United States.
(f) Credits made by the Export-Import Bank of Washington
with funds allocated thereto under subsection (a) of this section orunder section 522(a) of the Mutual Security Act of 1954, as amended, shall not be considered in determining whether the Bank has
outstanding at any one time loans and guaranties to the extent of
the limitation imposed by section 7 of the Export-Import Bank Act
of 1945, as amended (12 U.S.C. 635e).
(g) Any appropriation or account available to carry out provisions of part I may initially be charged in any fiscal year, within
the limit of available funds, to finance expenses for which funds areavailable in other appropriations or accounts under part I: Provided, That as of the end of such fiscal year such expenses shallbe finally charged to applicable appropriations or accounts withproper credit to the appropriations or accounts initially utilized forfinancing purposes: Provided further, That such final charge to applicable appropriations or accounts shall not be required in the caseof expenses (other than those provided for under section 637(a)) incurred in furnishing assistance by the agency primarily responsible
for administering part I where it is determined that the accounting
costs of identifying the applicable appropriation or account to whichsuch expenses should be charged would be disproportionate to theadvantage to be gained.
SEC. 633. ø22 U.S.C. 2393¿ WAIVERS OF CERTAIN LAWS.—(a)Whenever the President determines it to be in furtherance of the
purposes of this Act, the functions authorized under this Act may
be performed without regard to such provisions of law (other thanthe Renegotiation Act of 1951, as amended (50 U.S.C. App. 1211
et seq.)), regulating the making, performance, amendment, or modification of contracts and the expenditure of funds of the UnitedStates Government as the President may specify.
(b) The functions authorized under part II may be performed
without regard to such provisions as the President may specify of
the joint resolution of November 4, 1939 (54 Stat. 4), as amended.
(c) Notwithstanding the provisions of sections 3544(b) and8544(b) of title 10 of the United States Code, personnel of the Department of Defense may be assigned or detailed to any civil officeto carry out this Act.
øReferenced sections repealed by Public Law 90–235. See 10
U.S.C. 973(b).¿SEC. 633A. ø22 U.S.C. 2393a¿ FURNISHING INFORMATION.—
None of the funds made available pursuant to the provisions of thisAct shall be used to carry out any provision of this Act in any country or with respect to any project or activity, after the expirationof the thirty-five-day period which begins on the date the General
Accounting Office or any committee of the Congress charged with
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246

considering legislation, appropriations or expenditures under thisAct, has delivered to the office of the head of any agency carryingout such provision, a written request that it be furnished any document, paper, communication, audit, review, finding, recommendation, report, or other material in its custody or control relating to
the administration of such provision in such country or with respect to such project or activity, unless and until there has been
furnished to the General Accounting Office, or to such committee,
as the case may be, (1) the document, paper, communication, audit,
review, finding, recommendation, report, or other material so requested, or (2) a certification by the President that has forbidden
the furnishing thereof pursuant to request and his reason for sodoing.
SEC. 634. ø22 U.S.C. 2394¿ ANNUAL REPORT.—(a) In order that
the Congress and the American people may be better and more currently informed regarding American foreign policy and the effectiveness of assistance provided by the United States Government
to other countries and to international organizations, the Chairmanof the Development Coordination Committee shall prepare andtransmit to the Congress, no later than February 1 of each year,
as a part of the annual presentation materials for foreign assistance, a report as described in this subsection. This report shall include—(1)(A) a comprehensive and coordinated review of all
United States policies and programs having a major impact on
the development of developing countries, including but not limited to bilateral and multilateral assistance, trade, debt, employment, food, energy, technology, population, oceans, environment, human settlements, natural resources, and participation in international agencies concerned with development;(B) an assessment of the impact of such policies and programs on the well-being of the poor majority in developing
countries in accordance with the policy objectives of chapter 1of part I, including increasing life expectancy and literacy, lowering infant mortality and birth rates, and increasing food production and employment, such assessment to include an evaluation of the extent to which programs under chapter 1 of partI directly benefit the poor majority; 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 UnitedStates Government by any means to all foreign countries andinternational organizations—(A) from 1946 to the fiscal year immediately preceding
the fiscal year for which the report is required;(B) as presented to Congress for the immediate preceding fiscal year;(C) as obligated during the immediately preceding fiscal year;(D) as planned for the fiscal year in which the reportis presented;
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FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

Sec. 634(E) as proposed for the fiscal year following the year
in which the report is presented; and(F) of any contract in excess of $100,000 administeredby the Agency for International Development which wasentered into in the preceding fiscal year without competitive selection procedures, and the reasons for doing so;(3) a summary of repayments, by country, to the UnitedStates from previous foreign assistance loans;(4) the status of each sale of agricultural commodities on
credit terms theretofore made under the Food for Peace Act
with respect to which there remains outstanding any unpaid
obligation; and the status of each transaction with respect towhich a loan, contract or guarantee of insurance, or extensionof 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 transactions listed in this paragraph which is in excess of$1,000,000;(5)(A) the status of the debt servicing capacity of eachcountry receiving assistance under this Act;(B) all forms of debt relief granted by the United Stateswith respect to such countries, together with a detailed statement of the specific debt relief granted with respect to eachsuch country 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;(6) the dollar value of all official development assistance,
security assistance, international disaster assistance, refugee
assistance, and international narcotic control assistance provided by each government of a country which is a member of
the Organization for Economic Cooperation and Development
or of the Organization of Petroleum Exporting Countries;(7) the percentage which each type of assistance describedin paragraph (6) represents of (A) the gross national productof each country referred to in paragraph (6), and (B) the budget of the government of such country, as well as the per capita
contribution for each country for each type of assistance described in paragraph (6);(8) the amount of all foreign currencies acquired without
payment of dollars on hand of each foreign country as of September 30 of the preceding fiscal year;(9) the Development Coordination Committee’s operations
pursuant to section 640B(f) of this Act;
(10) the aggregate dollar value and quantity of grant military assistance, military education and training, and any otherdefense articles and services furnished under this Act by theUnited States to each foreign country and international organization for the preceding fiscal year;(11) information concerning the activities of the Minority
Resource Center during the preceding fiscal year; andJune 10, 2019

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Sec. 634A

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)248(12) other information appropriate to the conduct of theforeign assistance program of the United States Government.
(b) For purposes of this section—(1) ‘‘foreign assistance’’ means any tangible or intangible
item provided by the United States Government to a foreigncountry or international organization under this or any other
Act, including 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 foreign country which are owned by the UnitedStates Government; and(2) ‘‘provided by the United States Government’’ includes,
but is not limited to, foreign assistance provided by means ofgift, loan, sale, credit, or guaranty.
SEC. 634A. ø22 U.S.C. 2394–1¿ NOTIFICATION OF PROGRAM
CHANGES.—(a) None of the funds appropriated to carry out the purposes of this Act (except for programs under title III or title IV ofchapter 2 of part I, chapter 5 of part I, and programs of disaster
relief and rehabilitation) or the Arms Export Control Act may be
obligated for any activities, programs, projects, types of material
assistance, countries, or other operations not justified, or in excessof the amount justified, to the Congress for obligation under thisAct or the Arms Export Control Act for any fiscal year unless theCommittee on Foreign Relations of the Senate, the Committee on
Foreign Affairs of the House of Representatives, and the Committee on Appropriations of each House of the Congress are notified fifteen days in advance of such obligation. Whenever a proposed reprogramming exceeds $1,000,000 and the total amountproposed for obligation for a country under this Act in a fiscal year
exceeds by more than $5,000,000 the amount specified for thatcountry in the report required by section 653(a) of this Act, notifications of such proposed reprogrammings shall specify—(1) the nature and purpose of such proposed obligation,and(2) to the extent possible at the time of the proposed obligation, the country for which such funds would otherwise havebeen obligated.
(b) The notification requirement of this section does not apply
to the reprogramming—(1) of funds to be used for an activity, program, or project
under chapter 1 of part I if the amounts to be obligated forthat activity, program, or project for that fiscal year do not exceed by more than 10 percent the amount justified to the Congress for that activity, program, or project for that fiscal year;or(2) of less than $25,000 to be used under chapter 8 of partI, or under chapter 5 of part II, for a country for which a program under that chapter for that fiscal year was justified to
the Congress.
(c) The President shall notify the chairman of the Committee
on Foreign Relations of the Senate and the chairman of the Committee on Foreign Affairs of the House of Representatives concerning any reprogramming of funds in the International Affairs
Budget Function, the authorizations of appropriations for which
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Sec. 635

are in their respective jurisdictions, to the same degree and withthe same conditions as the President notifies the Committees on
Appropriations. The requirements of this subsection are in addition
to, and not in lieu of, other notification requirements.
SEC. 634B. ø22 U.S.C. 2394–1a¿ CLASSIFICATION OF REPORTS.—All information contained in any report transmitted under
this Act shall be public information. 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.
SEC. 635. ø22 U.S.C. 2395¿ GENERAL AUTHORITIES.—(a) Except
as otherwise specifically provided in this Act, assistance under thisAct may be furnished on a grant basis or on such terms, including
cash, credit, or other terms of repayment (including repayment inforeign currencies or by transfer to the United States Governmentof commodities) as may be determined to be best suited to theachievement of the purposes of this Act, and shall emphasize loans
rather than grants wherever possible.
(b) The President may make loans, advances, and grants to,make and perform agreements and contracts with, or enter into
other transactions with, any individual, corporation, or other bodyof persons, friendly government or government agency, whether
within or without the United States and international organizations in furtherance of the purposes and within the limitations of
this Act.
(c) It is the sense of Congress that the President, in furthering
the purposes of this Act, shall use to the maximum extent practicable the services and facilities of voluntary, nonprofit organizations registered with, and approved by, the Agency for International Development.
(d) The President may accept and use in furtherance of the
purposes of this Act, money, funds, property, and services of any
kind made available by gift, devise, bequest, grant, or otherwise forsuch purpose.
(e)(1) Any agency of the United States Government is authorized to pay the cost of health and accident insurance for foreign
participants in any program of furnishing technical information
and assistance administered by such agency while such participants are absent from their homes for the purpose of participationin such program.
(2) Any agency of the United States Government is authorized
to pay the cost of health and accident insurance for foreign employees of that agency while those employees are absent from theirplaces of employment abroad for purposes of training or other official duties.
(f) Alien participants in any program of furnishing technical information and assistance under this Act may be admitted to theUnited States if otherwise qualified as nonimmigrants under section 101(a)(15) of the Immigration and Nationality Act, as amended(8 U.S.C. 1101(a)(15)), for such time and under such conditions as
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may be prescribed by regulations promulgated by the Secretary ofState and the Attorney General.
(g) In making loans under this Act, the President—(1) may issue letters of credit and letters of commitment;(2) may collect or compromise any obligations assigned to,or held by, and any legal or equitable rights accruing to him,
and, as he may determine, refer any such obligations or rights
to the Attorney General for suit or collection;(3) may acquire and dispose of, upon such terms and conditions as he may determine, any property, including any instrument evidencing indebtedness or ownership (provided that equity securities may not be directly purchased although such securities may be acquired by other means such as by exerciseof conversion rights or through enforcement of liens or pledges
or otherwise to satisfy a previously incurred indebtedness), andguarantee payment against any such instrument;(4) may determine the character of, and necessity for, obligations and expenditures of funds used in making such loans
and the manner in which they shall be incurred, allowed, andpaid, subject to provisions of law specifically applicable to corporations of the United States Government; and(5) shall cause to be maintained an integral set of accounts
which shall be audited by the General Accounting Office in accordance with principles and procedures applicable to commercial corporate transactions as provided by the Government Corporation Control Act, as amended (31 U.S.C. 841 et seq.).
(h) A contract or agreement which entails commitments for the
expenditure of funds available under chapter 1 (except development loans) and title II of chapter 2 of part I and under part IImay, subject to any future action of the Congress, extend at any
time for not more than five years.
(i) Claims arising as a result of investment guaranty operations may be settled, and disputes arising as the result thereof
may be arbitrated with the consent of the parties, on such terms
and conditions as the President may direct. Payment made pursuant to any such settlement, or as a result of an arbitration award,
shall be final and conclusive notwithstanding any other provisionof law.
(j) The provisions of section 955 of title 18 of the United States
Code shall not apply to prevent any person, including any individual, partnership, corporation, or association, from acting for, or
participating in, any operation or transaction arising under thisAct, or from acquiring any obligation issued in connection with any
operation or transaction arising under this Act.
(k) Any cost-type contract or agreement (including grants) entered into with a university, college, or other educational institution for the purpose of carrying out programs authorized by partI may provide for the payment of the reimbursable indirect costsof said university, college, or other educational institution on thebasis of predetermined fixed-percentage rates applied to the total
or an element thereof, of the reimbursable direct costs incurred.
(l) The Administrator of the agency primarily responsible foradministering part I may use funds made available under that partto provide program and management oversight for activities that
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are funded under that part and that are conducted in countries inwhich the agency does not have a field mission or office.
(m)(1) There is established a working capital fund (in this subsection referred to as the ‘‘fund’’) for the United States Agency forInternational Development (in this subsection referred to as the‘‘Agency’’) which shall be available without fiscal year limitation for
the expenses of personal and nonpersonal services, equipment, andsupplies for—(A) International Cooperative Administrative Support
Services; and(B) rebates from the use of United States Government
credit cards.
(2) The capital of the fund shall consist of—(A) the fair and reasonable value of such supplies, equipment, and other assets pertaining to the functions of the fundas the Administrator determines,(B) rebates from the use of United States Government
credit cards, and(C) any appropriations made available for the purpose ofproviding capital,
minus related liabilities.
(3) The fund shall be reimbursed or credited with advance payments for services, equipment, or supplies provided from the fundfrom applicable appropriations and funds of the Agency, other Federal agencies and other sources authorized by section 607 at rates
that will recover total expenses of operation, including accrual ofannual leave and depreciation. Receipts from the disposal of, or
payments for the loss or damage to, property held in the fund, rebates, reimbursements, refunds and other credits applicable to theoperation of the fund may be deposited in the fund.
(4) At the close of each fiscal year the Administrator of the
Agency shall transfer out of the fund to the miscellaneous receipts
account of the Treasury of the United States such amounts as the
Administrator determines to be in excess of the needs of the fund.
(5) The fund may be charged with the current value of supplies
and equipment returned to the working capital of the fund by apost, activity, or agency, and the proceeds shall he credited to current applicable appropriations.
SEC. 636. ø22 U.S.C. 2396¿ PROVISIONS ON USES OF FUNDS.—(a) Appropriations for the purposes of or pursuant to this Act (except for Part II), allocations to any agency of the United States
Government, from other appropriations, for functions directly related to the purposes of this Act, and funds made available forother purposes to the agency primarily responsible for administering part I, shall be available for:(1) rent of buildings and space in buildings in the UnitedStates, and for repair, alteration, and improvements of suchleased properties;(2) expenses of attendance at meetings concerned with the
purposes of such appropriations of this Act, including (notwithstanding the provisions of section 9 of Public Law 60328 (31U.S.C. 673)) expenses in connection with meetings and persons
whose employment is authorized by section 626;
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252(3) contracting with individuals for personal service
abroad: Provided, That such individuals shall not be regarded
as employees of the United States Government for the purposeof any law administered by the Civil Service Commission;(4) purchase, maintenance, operation, and hire of aircraft:
Provided, That aircraft for administrative purposes may bepurchased only as specifically provided for in an appropriationor other Act;(5) purchase and hire of passenger motor vehicles: Provided, That, except as may otherwise be provided in an appropriation or other Act, passenger motor vehicles for administrative purposes outside the United States may be purchased for
replacement only, and such vehicles may be exchanged or sold
and replaced by an equal number of such vehicles and the cost,
including exchange allowance, of each such replacement shallnot exceed 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
III vehicle of United States manufacture (or, if the replacement
vehicle is a right-hand drive vehicle, 120 percent of that price)in the case of an automobile for the chief of any special mission
or staff outside the United States established under section
631: Provided further, That passenger motor vehicles otherthan one for the official use of the head of the agency primarily
responsible for administering part I, may be purchased for use
in the United States only as may be specifically provided in an
appropriation or other Act;(6) entertainment (not to exceed $25,000 in any fiscal year
except as may otherwise be provided in an appropriation orother Act);(7) exchange of funds without regard to section 3651 of the
Revised Statutes (31 U.S.C. 543) and loss by exchange;(8) expenditures (not to exceed $50,000 in any fiscal year
except as may otherwise be provided in an appropriation orother Act) of a confidential character other than entertainment: Provided, That a certificate of the amount of such expenditure, the nature of which it is considered inadvisable tospecify, shall be made by the head of the agency primarily responsible for administering part I or such person as he may
designate, and every such certificate shall be deemed a sufficient voucher for the amount therein specified;(9) insurance of official motor vehicles or aircraft acquired
for use in foreign countries;(10) rent or lease outside the United States for not to exceed ten years of offices, buildings, grounds, and quarters, including living quarters to house personnel, and payments
therefor in advance; maintenance, furnishings, necessary repairs, improvements, and alterations to properties owned orrented by the United States Government or made available for
use to the United States Government outside the UnitedStates; and costs of fuel, water, and utilities for such properties;(11) expenses of preparing and transporting to their former
homes, or, with respect to foreign participants engaged in any
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program under part I, to their former homes or places of burial, and of care and disposition of, the remains of persons or
members of the families of persons who may die while such
persons are away from their homes participating in activities
carried out with funds covered by this subsection;(12) purchase of uniforms;(13) payment of per diem in lieu of subsistence to foreign
participants engaged in any program under part I while suchparticipants are away from their homes in countries other thanthe United States, at rates not in excess of those prescribed by
the standardized Government travel regulations, notwithstanding any other provision of law;(14) use in accordance with authorities of the Foreign
Service Act of 1980 (22 U.S.C. 3901 et seq.) not otherwise provided for;(15) ice and drinking water for use outside the UnitedStates;(16) services of commissioned officers of the Environmental
Science Services Administration and for the purposes of providing such services to the Environmental Science Services Administration may appoint not to exceed twenty commissioned
officers in addition to those otherwise authorized;(b) Funds made available for the purposes of this Act may be
used for compensation, allowances, and travel of personnel including Foreign Service personnel whose services are utilized primarily
for the purposes of this Act, for printing and binding without regard to the provisions of any other law, and for expenditures outside the United States for the procurement of supplies and services
and for other administrative and operating purposes (other thancompensation of personnel) without regard to such laws and regulations governing the obligation and expenditure of funds of theUnited States Government as may be necessary to accomplish the
purposes of this Act.
(c) Notwithstanding any other law, not to exceed $6,000,000 of
the funds available for assistance under this Act may be used inany fiscal year (in addition to funds available for such use underother authorities in this Act) to construct or otherwise acquire outside the United States (1) essential living quarters, office space,and necessary supporting facilities for use of personnel carrying out
activities authorized by this Act, and (2) schools (including dormitories and boarding facilities) and hospitals for use of personnel
carrying out activities authorized by this Act, United States Government personnel, and their dependents. In addition, funds madeavailable for assistance under this Act may be used, notwithstanding any other law, to equip, staff, operate, and maintain such
schools and hospitals.
(d) Not to exceed $2,500,000 of funds available for assistanceunder this Act may be used in any fiscal year to provide assistance,on such terms and conditions as are deemed appropriate, to schools
established, or to be established, outside the United States whenever it is determined that such action would be more economical
or would best serve the interests of the United States in providing
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ment personnel, in lieu of acquisition or construction pursuant tosubsection (c) of this section.
(e) Funds available under this Act may be used to pay costsof training United States citizen personnel employed or assigned
pursuant to section 625(d)(2) (through interchange or otherwise) at
any State or local unit of government, public or private nonprofit
institution, trade, labor, agricultural, or scientific association or organization, or commercial firm; and the provisions of Public Law
84918 (7 U.S.C. 1881 et seq.) may be used to carry out the foregoing authority notwithstanding that interchange of personnel may
not be involved or that the training may not take place at the institutions specified in that Act. Such training shall not be considered
employment or holding of office under section 5533 of title 5 of theUnited States Code, and any payments or contributions in connection therewith may, as deemed appropriate by the head of theagency of the United States Government authorizing such training,be made by private or public sources and be accepted by any trainee, or may be accepted by and credited to the current applicable appropriation of such agency: Provided, however, That any such payments to any employee in the nature of compensation shall be inlieu, or in reduction, of compensation received from the UnitedStates Government.
(f) Funds made available under chapter 1 of part I may be
used for expenses (other than those provided for under section
637(a)) to assist in carrying out functions under chapter 1 of partI, under the Food for Peace Act, as amended (7 U.S.C. 1691 etseq.), and under the Latin American Development Act, as amended(22 U.S.C. 1942 et seq.), performed by the agency primarily responsible for administering part I or by the Corporation establishedunder title IV of chapter 2 of part I with respect to loan activities
which it carries out under the provisions of the Food for Peace Act,as amended.
(g) Funds made available for the purposes of part II or theArms Export Control Act shall be available for—(1) administrative, extraordinary (not to exceed $300,000
in any fiscal year), and operating expenses incurred in furnishing defense articles, military education and training anddefense services on a grant or sales basis by the agency primarily responsible for administering part II;(2) reimbursement of actual expenses of military officers
detailed or assigned as tour directors in connection with orientation visits of foreign military and related civilian personnel, in accordance with the provisions of section 5702(c) oftitle 5 of the United States Code, applicable to civilian officers
and employees; and(3) maintenance, repair, alteration, and furnishing of
United States-owned facilities in the District of Columbia or
elsewhere for the training of foreign military and related civilian personnel without regard to the provisions of section 3733
of the Revised Statutes (41 U.S.C. 12) or other provision of law
requiring a specific authorization or specific appropriation forsuch public contracts.
(h) In carrying out programs under this Act, the President
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Sec. 640A

tent possible, (1) countries receiving assistance under this Act contribute local currencies to meet the cost of contractual and otherservices rendered in conjunction with such programs, and (2) foreign currencies owned by the United States are utilized to meet thecosts of such contractual and other services.
(i) Notwithstanding section 640 or any other provision of thisAct, none of the funds made available to carry out this Act shallbe used to finance the purchase, sale, long-term lease, exchange, or
guaranty of a sale of motor vehicles unless such motor vehicles are
manufactured in the United States. Provided, That where special
circumstances exist the President is authorized to waive the provisions of this section in order to carry out the purposes of this Act.
SEC. 637. ø22 U.S.C. 2397¿ ADMINISTRATIVE EXPENSES.—(a)øRepealed—1978¿(b) There is hereby authorized to be appropriated suchamounts as may be necessary from time to time for administrative
expenses which are incurred for functions of the Department ofState under this Act and unrepealed provisions of the Mutual Security Act of 1954, as amended, or for normal functions of the Department of State which relate to such functions.
SEC. 638. ø22 U.S.C. 2398¿ EXCLUSIONS.—(a) No provision ofthis Act shall be construed to prohibit assistance to any country
pursuant to the Peace Corps Act, as amended; the Mutual Educational and Cultural Exchange Act of 1961, as amended; or the
Export-Import Bank Act of 1945, as amended.
(b) No provision of this Act or any other provision of law shallbe construed to prohibit assistance for any training activity which
is funded under this Act for Brazil or Argentina as long as suchcountry continues to have a democratically elected government andthe assistance is otherwise consistent with sections 116, 502B,
620(f), 620A, and 660 of this Act.
SEC. 639. FAMINE OR DISASTER RELIEF.— øRepealed—1975¿
SEC. 639A. DISASTER RELIEF ASSISTANCE.— øRedesignated—
1975¿
SEC. 639B. AFRICAN DEVELOPMENT PROGRAM.— øRedesignated—1975¿
SEC. 640. MILITARY SALES.— øRepealed—1968¿
SEC. 640A. ø22 U.S.C. 2399b¿ FALSE CLAIMS AND INELIGIBLE
COMMODITIES.—(a) Any person who makes or causes to be made orpresents or causes to be presented to any bank or other financial
institution or to any officer, agent, or employee of any agency of theUnited States Government a claim for payment from funds madeavailable under this Act for the purposes of furnishing assistanceand who knows the claim to be false, fraudulent, or fictitious or tocover a commodity or commodity-related service determined by the
President to be ineligible for payment from funds made available
under this Act, or who uses to support his claim any certification,statement, or entry on any contract, bill of lading, Government orcommercial invoice, or Government form, which he knows, or in theexercise of prudent business management should know, to containfalse, fraudulent, or fictitious information, or who uses or engages
in any other fraudulent trick, scheme, or device for the purpose of
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256

Act in connection with the negotiation, procurement, award, or performance of a contract financed with funds so made available under
this Act, and any person who enters into an agreement, combination or conspiracy to do so, (1) shall pay to the United States anamount equal to 25 per centum of any amount thereby sought tobe wrongfully secured or obtained but not actually received, and (2)shall forfeit and refund any payment, compensation, loan, commission, or advance received as a result thereof, and (3) shall, in addition, pay to the United States for each such act (A) the sum of$2,000 and double the amount of any damage which the UnitedStates may have sustained by reason thereof, or (B) an amountequal to 50 per centum of any such payment, compensation, loan,
commission, or advance so received, whichever is the greater, together with the costs of suit.
(b) In order to secure recovery under this section, the President
may, as he deems appropriate, (1) institute suit in the UnitedStates district court for any judicial district in which the person alleged to have performed or participated in an act described by thissection may reside or may be found, and (2) upon posting by registered mail to such person a notice of claim describing the basis
therefor and identifying the funds to be withheld, withhold fromfunds owed by any agency of the United States Government to such
person an amount equal to the refund, damages, liquidated damages, and exemplary damages claimed by the United States under
this section. Any such withholding of funds from any person shallconstitute a final determination of the rights and liabilities of such
person under this section with respect to the amount so withheld,
unless within one year of receiving the notice of claim such personbrings suit for recovery, which is hereby authorized, against theUnited States in any United States district court.
(c) For purposes of this section, the term ‘‘person’’ includes any
individual, corporation, partnership, association, or other legal entity.
SEC. 640B. ø22 U.S.C. 2399c¿ COORDINATION.—(a) The President shall establish a system for coordination of United States policies and programs which affect United States interests in the development of low-income countries. To that end, the President shallestablish a Development Coordination Committee which shall advise him with respect to coordination of United States policies andprograms affecting the development of the developing countries, including programs of bilateral and multilateral development assistance. The Committee shall include the head of the agency primarily responsible for administering part I, Chairman, and representatives of the Departments of State, Treasury, Commerce, Agriculture, Energy, and Labor, the Executive Office of the President
and other executive departments and agencies, as the President
shall designate. The Committee shall advise the President concerning the degree to which bilateral and multilateral development
assistance should focus on critical problems in those functional sectors which affect the lives of the majority of people in the developing countries: food production; rural development and nutrition;
population planning and health; and education, public administration, and human resource development.
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Sec. 642(b) The President shall prescribe appropriate procedures to assure coordination among—(1) the various departments and agencies of the UnitedStates Government having representatives in diplomatic missions abroad; and(2) representatives of the United States Government ineach country, under the direction of the Chief of the UnitedStates Diplomatic Mission.
The President shall keep the Congress advised of his actions under
this subsection.
(c) Programs authorized by this Act shall be undertaken withthe foreign policy guidance of the Secretary of State.
(d) øRepealed—1978¿(e) The head of any of the departments or agencies referred toin subsection (a) may temporarily assign, upon the request of the
Chairman, any employee from such department or agency to thestaff of the Committee.
(f) To carry out the purposes of subsection (a), the Committee
shall—(1) prepare studies on various development problems;(2) devise implementation strategies on developmental
problems appropriate to each such department or agency;(3) monitor and evaluate the results of the development activities of each such department or agency; and(4) arrange for the exchange of information and studies between such agencies and departments.
(g) * * * øRepealed—1981¿
SEC. 640C. ø22 U.S.C. 2399d¿ SHIPPING DIFFERENTIAL.—For
the purposes of facilitating implementation of section 901(b) of the
Merchant Marine Act, 1936 (46 U.S.C. 1241(b)), funds made available for the purposes of chapter 1 of part I or for purposes of chapter 4 of part II may be used to make grants to recipients to pay
all or any portion of such differential as is determined by the Secretary of Commerce to exist between United States and foreign-flag
vessel charter or freight rates. Grants made under this section
shall be paid with United States-owned foreign currencies wherever feasible.
CHAPTER 3—MISCELLANEOUS PROVISIONS
SEC. 641. ø22 U.S.C. 2401¿ EFFECTIVE DATE AND IDENTIFICATION OF PROGRAMS.—This Act shall take effect on the date of its
enactment. Programs under this Act shall be identified appropriately overseas as ‘‘American Aid’’.
SEC. 642. ø22 U.S.C. 2151 nt¿ STATUTES REPEALED.—(a) There
are hereby repealed—(1) Reorganization Plan Numbered 7 of 1953;(2) the Mutual Security Act of 1954, as amended (except
sections 402, 408, 417, 502(a), 502(b), 514, 523(d) and 536;
(3) section 12 of the Mutual Security Act of 1955;(4) sections 12, 13, and 14 of the Mutual Security Act of
1956;(5) section 503 of the Mutual Security Act of 1958;
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Sec. 643

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

258(6) section 108 of the Mutual Security Appropriation Act,
1959;
(7) section 501(a), chapter VI, and sections 702 and 703 of
the Mutual Security Act of 1959, as amended; and(8) section 604 and chapter VIII of the Mutual Security Act
of 1960.
(b) References in law to the Acts, or provisions of such Acts,
repealed by subsection (a) of this section shall hereafter be deemed
to be references to this Act or appropriate provisions of this Act.
(c) The repeal of the Acts listed in subsection (a) of this section
shall not be deemed to affect amendments contained in such Acts
to Acts not named in that subsection.
SEC. 643. ø22 U.S.C. 2402¿ SAVING PROVISIONS.—(a) Except as
may be expressly provided to the contrary in this Act, all determinations, authorizations, regulations, orders, contracts, agreements, and other actions issued, undertaken, or entered into underauthority of any provision of law repealed by section 642(a) and theForeign Assistance Act of 1969 shall continue in full force and effect until modified by appropriate authority.
(b) Wherever provisions of this Act establish conditions whichmust be complied with before use may be made of authority contained in, or funds authorized by, this Act, compliance with, or satisfaction of, substantially similar conditions under Acts listed in
section 642(a) and the Foreign Assistance Act of 1969 or Acts repealed by those Acts shall be deemed to constitute compliance withthe conditions established by this Act.
(c) Funds made available pursuant to provisions of law repealed by section 642(a)(2) and the Foreign Assistance Act of 1969
shall, unless otherwise authorized or provided by law, remain
available for their original purposes in accordance with the provisions of law originally applicable thereto, or in accordance with theprovisions of law currently applicable to those purposes.
(d) øRepealed—1962¿
SEC. 644. ø22 U.S.C. 2403¿ DEFINITIONS.—As used in thisAct—(a) ‘‘Agency of the United States Government’’ includes any
agency, department, board, wholly or partly owned corporation, instrumentality, commission, or establishment of the United States
Government.
(b) ‘‘Armed Forces’’ of the United States means the Army,
Navy, Air Force, Marine Corps, and Coast Guard.
(c) ‘‘Commodity’’ includes any material, article, supply, goods,
or equipment used for the purposes of furnishing nonmilitary assistance.
(d) ‘‘Defense article’’ includes—(1) any weapon, weapons system, munition, aircraft, vessel, boat, or other implement of war;(2) any property, installation, commodity, material, equipment, supply, or goods used for the purposes of furnishing military assistance;(3) any machinery, facility, tool, material, supply, or otheritem necessary for the manufacture, production, processing, repair, servicing storage, construction, transportation, operation,or use of any article listed in this subsection; orJune 10, 2019

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Sec. 644(4) any component or part of any article listed in this subsection; butshall not include merchant vessels or, as defined by the Atomic Energy Act of 1954, as amended (42 U.S.C. 2011), source material (except uranium depleted in the isotope 235 which is incorporated indefense articles solely to take advantage of high density or
pyrophoric characteristics unrelated to radioactivity), byproductmaterial, special nuclear material, production facilities, utilization
facilities, or atomic weapons or articles involving Restricted Data.
(e) ‘‘Defense information’’ includes any document, writing,sketch, photograph, plan, model, specification, design, prototype, orother recorded or oral information relating to any defense article ordefense service, but shall not include Restricted Data as defined by
the Atomic Energy Act of 1954, as amended, and data removed
from the Restricted Data category under section 142d of that Act.
(f) ‘‘Defense service’’ includes any service, test, inspection, repair, publication, or technical or other assistance or defense information used for the purposes of furnishing military assistance, butdoes not include military educational and training activities underchapter 5 of part II.
(g) ‘‘Excess defense articles’’ means the quantity of defense articles (other than construction equipment, including tractors, scrapers, loaders, graders, bulldozers, dump trucks, generators, and compressors) owned by the United States Government, and not procured in anticipation of military assistance or sales requirements,
or pursuant to a military assistance or sales order, which is in excess of the Approved Force Acquisition Objective and Approved
Force Retention Stock of all Department of Defense Components atthe time such articles are dropped from inventory by the supplying
agency for delivery to countries or international organizations
under this Act.
(h) ‘‘Function’’ includes any duty, obligation, power, authority,
responsibility, right, privilege, discretion, or activity.
(i) øRepealed—1973¿(j) ‘‘Officer or employee’’ means civilian personnel and membersof the Armed Forces of the United States Government.
(k) ‘‘Services’’ include any service, repair, training of personnel,
or technical or other assistance or information used for the purposes of furnishing nonmilitary assistance.
(l) ‘‘Surplus agricultural commodity’’ means any agriculturalcommodity or product thereof, class, kind, type, or other specification thereof, produced in the United States either publicly or privately owned, which is in excess of domestic requirements, adequate carryover, and anticipated exports for United States dollars,as determined by the Secretary of Agriculture.
(m) ‘‘Value’’ means—(1) with respect to an excess defense article, the actual
value of the article plus the gross cost incurred by the UnitedStates 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;(2) with respect to a nonexcess defense article deliveredfrom inventory to foreign countries or international organizations under this Act, the acquisition cost to the United States
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260

Government, adjusted as appropriate for condition and market
value;(3) with respect to a nonexcess defense article deliveredfrom new procurement to foreign countries or international organizations under this Act, the contract or production costs ofsuch article;(4) with respect to a defense service, the cost to the UnitedStates Government of such service; and(5) with respect to military education and training or services provided under chapter 8 of part II of this Act, the additional costs that are incurred by the United States Government
in furnishing such assistance.
(n) ‘‘Military education and training’’ includes formal or informal instruction of foreign students in the United States or overseas
by officers or employees of the United States, contract technicians,
contractors (including instruction at civilian institutions), or by correspondence courses, technical, educational, or information publications and media of all kinds, training aids, orientation, and military advice to foreign military units and forces.
(o) ‘‘Agriculture’’ includes aquaculture and fisheries.
(p) ‘‘Farmers’’ includes fishermen and other persons employedin cultivating and harvesting food resources from salt and fresh
waters.
(q) ‘‘Major non-NATO ally’’ means a country which is designated in accordance with section 517 as a major non-NATO allyfor purposes of this Act and the Arms Export Control Act (22U.S.C. 2751 et seq.).
SEC. 645. ø22 U.S.C. 2404¿ UNEXPENDED BALANCES.—Unexpended balances of funds made available pursuant to this Act, theMutual Security Act of 1954, as amended, or the Latin American
Development Act, as amended are hereby authorized to be continued available for the general purposes for which appropriated, andmay at any time be consolidated, and, in addition, may be consolidated with appropriations made available for the same general purposes under the authority of this Act.
SEC. 646. ø22 U.S.C. 2405¿ CONSTRUCTION.—If any provisionof this Act, or the application of any provision to any circumstancesor persons shall be held invalid, the validity of the remainder ofthis Act, and of the applicability of such provision to other circumstances or persons shall not be affected thereby.
SEC. 647. ø22 U.S.C. 2406¿ DEPENDABLE FUEL SUPPLY.—It isof paramount importance that long-range economic plans take cognizance of the need for a dependable supply of fuels, which is necessary to orderly and stable development and growth, and that dependence not be placed upon sources which are inherently hostile
to free countries and the ultimate well-being of economically underdeveloped countries and which might exploit such dependence for
ultimate political domination. The agencies of government in the
United States are directed to work with other countries in developing plans for basing development programs on the use of thelarge and stable supply of relatively low cost fuels available in thefree world.
SEC. 648. ø22 U.S.C. 2407¿ SPECIAL AUTHORIZATION FOR USE
OF FOREIGN CURRENCIES.—Subject to the provisions of section 1415
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Sec. 654of the Supplemental Appropriation Act, 1953, the President is authorized, as a demonstration of good will on the part of the peopleof the United States for the Polish and Italian people, to use foreign currencies accruing to the United States Government under
this or any other Act, for assistance on such terms and conditions
as he may specify, in the repair, rehabilitation, improvement, andmaintenance of cemeteries in Italy serving as the burial place ofmembers of the armed forces of Poland who died in combat in Italy
during World War II.
SEC. 649. LIMITATION ON AGGREGATE AUTHORIZATION FOR USE
IN FISCAL YEAR 1966.— øRepealed—1978¿
SEC. 650. ø22 U.S.C. 2409¿ USE OF UNITED STATES ARMEDFORCES.—The furnishing of economic, military, or other assistanceunder this Act shall not be construed as creating a new commitment or as affecting any existing commitment to use Armed Forcesof the United States for the defense of any foreign country.
SEC. 651. SALE OF SUPERSONIC PLANES TO ISRAEL.— øRepealed—1978¿
SEC. 652. ø22 U.S.C. 2411¿ LIMITATION UPON EXERCISE OF
SPECIAL AUTHORITIES.—The President shall not exercise any special authority granted to him under section 506(a), 552(c)(2), or
610(a) of this Act unless the President, before he intends to exercise any such 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. ø22 U.S.C. 2413¿ CHANGE IN ALLOCATION OF FOREIGN ASSISTANCE.—(a) Not later than thirty days after the enactment of any law appropriating funds to carry out any provision ofthis Act (other than section 451 or 637) or the Arms Export Control
Act, the President shall notify the Congress of each foreign country
and international organization to which the United States Government intends to provide any portion of the funds under such law
and of the amount of funds under that law, by category of assistance, that the United States Government intends to provide toeach.
(b) 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. 654. ø22 U.S.C. 2414¿ PRESIDENTIAL FINDINGS AND DETERMINATIONS.—(a) In any case in which the President is required
to make a report to the Congress, or to any committee or officerof either House of Congress, concerning any finding or determination under any provision of this Act, the Foreign Military Sales Act,or the Foreign Assistance and Related Programs Appropriation Act
for each fiscal year, that finding or determination shall be reduced
to writing and signed by the President.
(b) No action shall be taken pursuant to any such finding or
determination prior to the date on which that finding or determination has been reduced to writing and signed by the President.
(c) Each such finding or determination shall be published in
the Federal Register as soon as practicable after it has been reduced to writing and signed by the President. In any case in which
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262

the President concludes that such publication would be harmful tothe national security of the United States, only a statement thata determination or finding has been made by the President, including the name and section of the Act under which it was made, shallbe published.
(d) No committee or officer of either House of Congress shallbe denied any requested information relating to any finding or determination which the President is required to report to the Congress, or to any committee or officer of either House of Congress,
under any provision of this Act, the Foreign Military Sales Act, or
the Foreign Assistance and Related Programs Appropriation Act foreach fiscal year, even though such report has not yet been transmitted to the appropriate committee or officer of either House ofCongress.
SEC. 655. ø22 U.S.C. 2415¿ ANNUAL MILITARY ASSISTANCE REPORT.
(a) REPORT REQUIRED.—Not later than February 1 of eachyear, the President shall transmit to the Congress an annual reportfor the fiscal year ending the previous September 30.
(b) INFORMATION RELATING TO MILITARY ASSISTANCE AND MILITARY EXPORTS.—Each such report shall show the aggregate dollar
value and quantity of defense articles (including excess defense articles), defense services, and international military education andtraining activities authorized by the United States and of such articles, services, and activities provided by the United States, excluding any activity that is reportable under title V of the National Security Act of 1947, to each foreign country and international organization. The report shall specify, by category, whether such defense articles—(1) were furnished by grant under chapter 2 or chapter 5of part II of this Act or under any other authority of law orby sale under chapter 2 of the Arms Export Control Act;(2) were furnished with the financial assistance of theUnited States Government, including through loans and guarantees; or(3) were licensed for export under section 38 of the Arms
Export Control Act and, if so, a specification of those defense
articles that were exported during the fiscal year covered by
the report, including, in the case of defense articles that are
firearms controlled under category I of the United States Munitions List, a statement of the aggregate dollar value andquantity of semiautomatic assault weapons, or spare parts forsuch weapons, the manufacture, transfer, or possession ofwhich is unlawful under section 922 of title 18, United States
Code, that were licensed for export during the period coveredby the report.
(c) AVAILABILITY ON INTERNET.—All unclassified portions ofsuch report shall be made available to the public on the Internet
through the Department of State.
SEC. 656. ø22 U.S.C. 2416¿ ANNUAL FOREIGN MILITARY TRAINING REPORT.
(a) ANNUAL REPORT.—(1) IN GENERAL.—Not later than January 31 of each year,

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Sec. 660

ly prepare and submit to the appropriate congressional committees a report on all military training provided to foreign
military personnel by the Department of Defense and the Department of State during the previous fiscal year and all suchtraining proposed for the current fiscal year.
(2) EXCEPTION FOR CERTAIN COUNTRIES.—Paragraph (1)does not apply to any NATO member, Australia, Japan, or
New Zealand, unless one of the appropriate congressional committees has specifically requested, in writing, inclusion of suchcountry in the report. Such request shall be made not later
than 90 calendar days prior to the date on which the report isrequired to be transmitted.
(b) CONTENTS.—The report described in subsection (a) shall include the following:(1) For each military training activity, the foreign policy
justification and purpose for the activity, the number of foreign
military personnel provided training and their units of operation, and the location of the training.
(2) For each country, the aggregate number of students
trained and the aggregate cost of the military training activities.
(3) With respect to United States personnel, the operational benefits to United States forces derived from each military training activity and the United States military units involved in each activity.
(c) FORM.—The report described in subsection (a) shall be in
unclassified form but may include a classified annex.
(d) AVAILABILITY ON INTERNET.—All unclassified portions of thereport described in subsection (a) shall be made available to the
public on the Internet through the Department of State.
(e) DEFINITION.—In this section, the term ‘‘appropriate congressional committees’’ means—(1) the Committee on Appropriations and the Committee
on International Relations of the House of Representatives;and(2) the Committee on Appropriations and the Committee
on Foreign Relations of the Senate.
SEC. 657. ANNUAL REPORT ON MILITARY ASSISTANCE AND MILITARY EXPORTS.— * * * øRepealed—1981¿
SEC. 658. LIMITATIONS ON USE OF FUNDS.— øRepealed—1978¿
SEC. 659. ACCESS TO CERTAIN MILITARY BASES ABROAD.—* * * øRepealed—1981¿
SEC. 660. ø22 U.S.C. 2420¿ PROHIBITING POLICE TRAINING.—(a) On and after July 1, 1975, none of the funds made available tocarry 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 law enforcement
forces for any foreign government or any program of internal intelligence or surveillance on behalf of any foreign government within
the United States or abroad.
(b) Subsection (a) of this section shall not apply—(1) with respect to assistance rendered under section
515(c) of the Omnibus Crime Control and Safe Streets Act of1968 with respect to any authority of the Drug Enforcement
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264

Administration or the Federal Bureau of Investigation which
relates to crimes of the nature which are unlawful under thelaws of the United States, or with respect to assistance authorized under section 482 of this Act;(2) to any contract entered into prior to the date of enactment of this section with any person, organization, or agencyof the United States Government to provide personnel to conduct, or assist in conducting, any such program;(3) with respect to assistance, including training, in maritime law enforcement and other maritime skills;(4) with respect to assistance provided to police forces inconnection with their participation in the regional security system of the Eastern Caribbean states; or 40(5) with respect to assistance, including training, relating
to sanctions monitoring and enforcement;(6) with respect to assistance provided to reconstitute civilian police authority and capability in the post-conflict restoration of host nation infrastructure for the purposes of supporting a nation emerging from instability, and the provisionof professional public safety training, to include training ininternationally recognized standards of human rights, the ruleof law, anti-corruption, and the promotion of civilian police
roles that support democracy; 41(7) with respect to assistance provided to customs authorities and personnel, including training, technical assistance and equipment, for customs law enforcement andthe improvement of customs laws, systems and procedures.
Notwithstanding clause (2), subsection (a) shall apply to any renewal or extension of any contract referred to in such paragraphentered into on or after such date of enactment.
(c) Subsection (a) shall not apply with respect to a country
which has a longstanding democratic tradition, does not havestanding armed forces, and does not engage in a consistent patternof gross violations of internationally recognized human rights.
(d) Notwithstanding the prohibition contained in subsection(a), assistance may be provided to Honduras or El Salvador for fiscal years 1986 and 1987 if, at least 30 days before providing assistance, the President notifies the Committee on Foreign Affairs ofthe House of Representatives and the Committee on Foreign Relations of the Senate, in accordance with the procedures applicable
to reprogramming notifications pursuant to section 634A of thisAct, that he has determined that the government of the recipient
country has made significant progress, during the preceding six
months, in eliminating any human rights violations including torture, incommunicado detention, detention of persons solely for the
non-violent expression of their political views, or prolonged detention without trial. Any such notification shall include a full description of the assistance which is proposed to be provided and of the
purposes to which it is to be directed.
40 So in law. The word ‘‘or’’ probably should be stricken at the end of paragraph (4).
41 So in law. Paragraph (6) probably should end with ‘‘; or’’.

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Sec. 661

SEC. 661. ø22 U.S.C. 2421¿ TRADE AND DEVELOPMENT AGENCY.
(a) PURPOSE.—The Trade and Development Agency shall be anagency of the United States under the foreign policy guidance of
the Secretary of State. The purpose of the Trade and Development
Agency is to promote United States private sector participation indevelopment projects in developing and middle-income countries,
with special emphasis on economic sectors with significant UnitedStates export potential, such as energy, transportation, telecommunications, and environment.
(b) AUTHORITY TO PROVIDE ASSISTANCE.—(1) AUTHORITY.—The Director of the Trade and Development Agency is authorized to work with foreign countries, including those in which the United States development programs have been concluded or those not receiving assistanceunder part I, to carry out the purpose of this section by providing funds for feasibility studies, architectural and engineering design, and other activities related to development projects
which provide opportunities for the use of United States exports.
(2) USE OF FUNDS.—Funds under this section may be used
to provide support for feasibility studies for the planning, development, and management of, and procurement for, bilateraland multilateral development projects, including training activities undertaken in connection with a project, for the purpose of promoting the use of United States goods and services
in such projects. Funds under this section may also be used forarchitectural and engineering design, including—(A) concept design, which establishes the basic technical and operational criteria for a project, such as architectural drawings for a proposed facility, evaluation of site
constraints, procurement requirements, and equipment
specifications; and(B) detail design, which sets forth specific dimensions
and criteria for structural, mechanical, electrical, and architectural operations, and identifies other resources required for project operations.
(3) INFORMATION DISSEMINATION.—(A) The Trade and Development Agency shall disseminate information about its
project activities to the private sector.
(B) Other agencies of the United States Government shallcooperate with the Trade and Development Agency in order for
the Agency to provide more effectively informational services topersons in the private sector concerning trade development andexport promotion related to development projects.
(4) NONAPPLICABILITY OF OTHER PROVISIONS.—Any funds
used for purposes of this section may be used notwithstanding
any other provision of law.
(5) CONTRIBUTIONS TO COSTS.—The Trade and Development Agency shall, to the maximum extent practicable, require
corporations and other entities to—(A) share the costs of feasibility studies and otherproject planning services funded under this section; andJune 10, 2019

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266(B) reimburse the Trade and Development Agency
those funds provided under this section, if the corporationor entity concerned succeeds in project implementation.
(c) DIRECTOR AND PERSONNEL.—(1) DIRECTOR.—There shall be at the head of the Tradeand Development Agency a Director who shall be appointed by
the President, by and with the advice and consent of the Senate.
(2) OFFICERS AND EMPLOYEES.—(A) The Director may appoint such officers and employees of the Trade and Development Agency as the Director considers appropriate.
(B) The officers and employees appointed under this paragraph shall have such functions as the Director may determine.
(C) Of the officers and employees appointed under thisparagraph, 2 may be appointed without regard to the provisions of title 5, United States Code, governing appointments inthe competitive service, and may be compensated without regard to the provisions of chapter 51 or subchapter III of chapter 53 of such title.
(D) Under such regulations as the President may prescribe, any individual appointed under subparagraph (C) may
be entitled, upon removal (except for cause) from the position
to which the appointment was made, to reinstatement to theposition occupied by that individual at the time of appointment
or to a position of comparable grade and pay.
(d) ANNUAL REPORT.—The President shall, not later than December 31 of each year, submit to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a report on the activities of the Tradeand Development Agency in the preceding fiscal year.
(e) AUDITS.—(1) IN GENERAL.—The Trade and Development Agency
shall be subject to the provisions of chapter 35 of title 31,
United States Code, except as otherwise provided in this section.
(2) INDEPENDENT AUDIT.—An independent certified public
accountant shall perform a financial and compliance audit of
the financial statements of the Trade and Development Agency
each year, in accordance with generally accepted Government
auditing standards for a financial and compliance audit, taking
into consideration any standards recommended by the Comptroller General. The independent certified public accountant
shall report the results of such audit to the Director of theTrade and Development Agency. The financial statements of
the Trade and Development Agency shall be presented in accordance with generally accepted accounting principles. These
financial statements and the report of the accountant shall be
included in a report which contains, to the extent applicable,
the information identified in section 3512 of title 31, UnitedStates Code, and which the Trade and Development Agency
shall submit to the Congress not later than 61⁄2 months after
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Sec. 663

ant and the report to the Congress in the manner and at suchtimes as the Comptroller General considers necessary.
(3) AUDIT BY COMPTROLLER GENERAL.—In lieu of the financial and compliance audit required by paragraph (2), theComptroller General shall, if the Comptroller General considers it necessary or upon the request of the Congress, audit
the financial statements of the Trade and Development Agency
in the manner provided in paragraph (2).
(4) AVAILABILITY OF INFORMATION.—All books, accounts, financial records, reports, files, workpapers, and property belonging to or in use by the Trade and Development Agency andthe accountant who conducts the audit under paragraph (2),which are necessary for purposes of this subsection, shall bemade available to the representatives of the General Accounting Office designated by the Comptroller General.
(f) FUNDING.—(1) AUTHORIZATION.—(A) There are authorized to be appropriated for purposes of this section, in addition to funds otherwise available for such purposes, $48,000,000 for fiscal year
2000 and such sums as may be necessary for each fiscal year
thereafter.
(B) Amounts appropriated pursuant to the authorization of
appropriations under subparagraph (A) are authorized to remain available until expended.
(2) FUNDING FOR TECHNICAL ASSISTANCE GRANTS BY MULTILATERAL DEVELOPMENT BANKS.—(A) The Trade and Development Agency should, in carrying out its program, provide, as
appropriate, funds to multilateral development banks for technical assistance grants.
(B) As used in subparagraph (A)—(i) the term ‘‘technical assistance grants’’ means funding by multilateral development banks of services from theUnited States in connection with projects and programs
supported by such banks, including, but not limited to, engineering, design, and consulting services; and(ii) the term ‘‘multilateral development bank’’ has themeaning given that term in section 1701(c) of the International Financial Institutions Act.
SEC. 662. LIMITATION ON INTELLIGENCE ACTIVITIES.— øRepealed—1991¿
SEC. 663. ø22 U.S.C. 2423¿ EXCHANGES OF CERTAIN MATERIALS.—(a) Notwithstanding any other provision of law, whenever
the President determines it is in the United States national interest, he shall furnish assistance under this Act or shall furnish defense articles or services under the Foreign Military Sales Act pursuant to an agreement with the recipient of such assistance, articles, or services which provides that such recipient may only obtainsuch assistance, articles, or services in exchange for any necessary
or strategic raw material controlled by such recipient. For the purposes of this section, the term ‘‘necessary or strategic raw material’’
includes petroleum, other fossil fuels, metals, minerals, or any
other natural substance which the President determines is in short
supply in the United States.
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268(b) The President shall allocate any necessary or strategic raw
material transferred to the United States under this section to any
appropriate agency of the United States Government for stockpiling, sale, transfer, disposal, or any other purpose authorized bylaw.
(c) Funds received from any disposal of materials under subsection (b) shall be deposited as miscellaneous receipts in the
United States Treasury.
SEC. 664. WAIVER OF PROHIBITION AGAINST ASSISTANCE TO
COUNTRIES ENGAGING IN CERTAIN TRADE.— øRepealed—1977¿
SEC. 665. TRANSITION PROVISIONS FOR INTERIM QUARTER.—øRepealed—1978¿
SEC. 666. ø22 U.S.C. 2426¿ DISCRIMINATION AGAINST UNITEDSTATES PERSONNEL.—(a) The President shall not take into account,in assigning officers and employees of the United States to carryout any economic development assistance programs funded under
this Act in any foreign country, the race, religion, national origin,or sex of any such officer or employee. Such assignments shall bemade solely on the basis of ability and relevant experience.
(b) Effective six months after the date of enactment of theInternational Development and Food Assistance Act of 1975, or onsuch earlier date as the President may determine, none of thefunds made available under this Act may be used to provide economic development assistance to any country which objects to thepresence of any officer or employee of the United States who ispresent in such country for the purpose of carrying out any program of economic development assistance authorized by the provisions of this Act on the basis of the race, religion, national origin,or sex of such officer or employee.
(c) The Secretary of State shall promulgate such rules and regulations as he may deem necessary to carry out the provisions of
this section.
SEC. 667. ø22 U.S.C. 2427¿ OPERATING EXPENSES.—(a) There
are authorized to be appropriated to the President, in addition to
funds otherwise available for such purposes—(1) $387,000,000 for the fiscal year 1986 and $387,000,000
for the fiscal year 1987 for necessary operating expenses of theagency primarily responsible for administering part I of thisAct, of which $21,750,000 for the fiscal year 1987 is authorized
for the necessary operating expenses of the Office of the Inspector General of the Agency for International Development
and the remaining amount for the fiscal year is authorized forother necessary operating expenses of that agency and(2) such amounts as may be necessary for increases in salary, pay, retirement, and other employee benefits authorized
by law, and for other nondiscretionary costs of such agency.
(b) Amounts appropriated under this section are authorized toremain available until expended.
SEC. 668. REPORT ON KOREA.— * * * øRepealed—1981¿
SEC. 669. 42
42 Section 826(b) of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (P.L.
103–236) repeals sections 669 and 670 of the Foreign Assistance Act of 1961.
Section 851 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (P.L. 103–236) provides that on ‘‘the date of enactment of the first Foreign Relations Authorization Act

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Sec. 703

SEC. 671. NOTIFICATION OF PROGRAM CHANGES.— øRedesignated—1978¿

PART IV—ENTERPRISE FOR THE AMERICASINITIATIVE
SEC. 701. ø22 U.S.C. 2430¿ PURPOSE.

The purpose of this part is to encourage and support improvement in the lives of the people of Latin America and the Caribbean
through market-oriented reforms and economic growth with interrelated actions to promote debt reduction, investment reforms, community based conservation, and sustainable use of the environment, and child survival and child development. The Facility will
support these objectives through administration of debt reduction
operations under this part for those countries with democraticallyelected governments that meet investment reforms and other policy
conditions.
SEC. 702. ø22 U.S.C. 2430a¿ DEFINITIONS.

For purposes of this part—(1) the term ‘‘administering body’’ means the entity provided for in section 708(c);(2) the term ‘‘Americas Framework Agreement’’ means an
Americas Framework Agreement provided for in section 708;
(3) the term ‘‘Americas Fund’’ means an Enterprise for theAmericas Fund provided for in section 707(a);(4) the term ‘‘appropriate congressional committees’’ means
the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate;(5) the term ‘‘beneficiary country’’ means an eligible country with respect to which the authority of section 704(a)(1) is
exercised;(6) the term ‘‘eligible country’’ means a country designatedby the President in accordance with section 703;
(7) the term ‘‘Enterprise for the Americas Board’’ or‘‘Board’’ means the board established by section 610 of theFood for Peace Act; and(8) the term ‘‘Facility’’ means the Enterprise for the Americas Facility established in the Department of the Treasury bysection 601 of that Act.
SEC. 703. ø22 U.S.C. 2430b¿ ELIGIBILITY FOR BENEFITS.
(a) REQUIREMENTS.—To be eligible for benefits from the Facil-

ity under this part, a country must be a Latin American or Caribbean country—(1) whose government is democratically elected;(2) whose government has not repeatedly provided support
for acts of international terrorism;that is enacted after the enactment of this Act, the provisions of parts A and B of this title shallcease to be effective, the amendments made by those parts shall be repealed, and any provisionof law repealed by those parts shall be reenacted.’’June 10, 2019

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270(3) whose government is not failing to cooperate on international narcotics control matters;(4) whose government (including its military or other security forces) does not engage in a consistent pattern of gross violations of internationally recognized human rights;(5) that has in effect, has received approval for, or, as appropriate in exceptional circumstances, is making significant
progress toward—(A) an International Monetary Fund standby arrangement, extended Fund arrangement, or an arrangement
under the structural adjustment facility or enhanced structural adjustment facility, or in exceptional circumstances,a Fund monitored program or its equivalent, unless the
President determines (after consultation with the Enterprise for the Americas Board) that such an arrangement or
program (or its equivalent) could reasonably be expected tohave significant adverse social or environmental effects;
and(B) as appropriate, structural or sectoral adjustment
loans from the International Bank for Reconstruction andDevelopment or the International Development Association, unless the President determines (after consultation
with the Enterprise for the Americas Board) that the resulting adjustment requirements could reasonably be expected to have significant adverse social or environmental
effects;(6) has put in place major investment reforms in conjunction with an Inter-American Development Bank loan or otherwise is implementing, or is making significant progress toward,
an open investment regime; and(7) if appropriate, has agreed with its commercial banklenders on a satisfactory financing program, including, as appropriate, debt or debt service reduction.
(b) ELIGIBILITY DETERMINATIONS.—Consistent with subsection(a), the President shall determine whether a country is eligible toreceive benefits under this part. The President shall notify the appropriate congressional committees of his intention to designate acountry as an eligible country at least 15 days in advance of any
formal determination.
SEC. 704. ø22 U.S.C. 2430c¿ REDUCTION OF CERTAIN DEBT.
(a) AUTHORITY TO REDUCE DEBT.—(1) AUTHORITY.—The President may reduce theamountowed to the United States (or any agency of the United States)that is outstanding as of January 1, 1992, as a result ofconcessional loans made to an eligible country by the UnitedStates under part I of this Act, chapter 4 of part II of this Act,or predecessor foreign economic assistance legislation.
(2) APPROPRIATIONS REQUIREMENT.—The authority provided by this section may be exercised only in such amounts
or to such extent as is provided in advance by appropriations
Acts.
(3) CERTAIN PROHIBITIONS INAPPLICABLE.—(A) A reductionof debt pursuant to this section shall not be considered assist-

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Sec. 706

ance for purposes of any provision of law limiting assistance toa country.
(B) The authority of this section may be exercised notwithstanding section 620(r) of this Act or section 321 of the International Development and Food Assistance Act of 1975.
(b) IMPLEMENTATION OF DEBT REDUCTION.—(1) IN GENERAL.—Any debt reduction pursuant to subsection (a) shall be accomplished at the direction of the Facilityby the exchange of a new obligation for obligations outstanding
as of the date specified in subsection (a)(1).
(2) EXCHANGE OF OBLIGATIONS.—The Facility shall notify
the agency primarily responsible for administering part I of
this Act of the agreement with an eligible country to exchange
a new obligation for outstanding obligations pursuant to thissubsection. At the direction of the Facility, the old obligations
shall be canceled and a new debt obligation for the country
shall be established, and the agency primarily responsible foradministering part I of this Act shall make an adjustment in
its accounts to reflect the debt reduction.
SEC. 705. ø22 U.S.C. 2430d¿ REPAYMENT OF PRINCIPAL.
(a) CURRENCY OF PAYMENT.—The principal amountof eachnew obligation issued pursuant to section 704(b) shall be repaid in
United States dollars.
(b) DEPOSIT OF PAYMENTS.—Principal repayments of new obligations shall be deposited in the United States Government account established for principal repayments of the obligations forwhich those obligations were exchanged.

SEC. 706. ø22 U.S.C. 2430e¿ INTEREST ON NEW OBLIGATIONS.
(a) RATE OF INTEREST.—New obligations issued bya beneficiary country pursuant to section 704(b) shall bear interest at aconcessional rate.
(b) CURRENCY OF PAYMENT; DEPOSITS.—(1) LOCAL CURRENCY.—If the beneficiary country has entered into an Americas Framework Agreement, interest shallbe paid in the local currency of the beneficiary country and deposited in an Americas Fund. Such interest shall be the property of the beneficiary country, until such time as it is disbursed pursuant to section 707(d). Such local currencies shallbe used for the purposes specified in the Americas Framework
Agreement.
(2) UNITED STATES DOLLARS.—If the beneficiary country
has not entered into an Americas Framework Agreement, interest shall be paid in United States dollars and deposited in
the United States Government account established for interest
payments of the obligations for which the new obligations were
exchanged.
(c) INTEREST ALREADY PAID.—If a beneficiary country enters
into an Americas Framework Agreement subsequent to the date on
which interest first became due on the newly issued obligation, anyinterest already paid on such new obligation shall not be redeposited into the Americas Fund established for that country.
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272

SEC. 707. ø22 U.S.C. 2430f¿ ENTERPRISE FOR THE AMERICAS FUNDS.
(a) ESTABLISHMENT.—Each beneficiary country that enters into

an Americas Framework Agreement shall be required to establish
an Enterprise for the Americas Fund to receive payments in local
currency pursuant to section 706(b)(1).
(b) DEPOSITS.—Local currencies deposited in an Americas Fundshall not be considered assistance for purposes of any provision oflaw limiting assistance to a country.
(c) INVESTMENT.—Deposits made in an Americas Fund shall be
invested until disbursed. Any return on such investment may beretained by the Americas Fund, without deposit in the Treasury of
the United States and without further appropriation by the Congress.
(d) DISBURSEMENTS.—Funds in an Americas Fund shall be disbursed only pursuant to an Americas Framework Agreement.
SEC. 708. ø22 U.S.C. 2430g¿ AMERICAS FRAMEWORK AGREEMENTS.
(a) AUTHORITY.—The Secretary of State is authorized, in con-sultation with other appropriate Government officials, to enter into
an Americas Framework Agreement with any eligible country concerning the operation and use of the Americas Fund for that country. In the negotiation of such Agreements, the Secretary shall consult with the Enterprise for the Americas Board in accordance withsection 709.
(b) CONTENTS OF AGREEMENTS.—An Americas Framework
Agreement with an eligible country shall—(1) require that country to establish an Americas Fund;(2) require that country to make interest payments under
section 706(b)(1) into an Americas Fund;(3) require that country to make prompt disbursementsfrom the Americas Fund to the administering body describedin subsection (c);(4) when appropriate, seek to maintain the value of thelocal currency resources of the Americas Fund in terms of
United States dollars;(5) specify, in accordance with subsection (d), the purposes
for which amounts in an Americas Fund may be used; and(6) contain reasonable provisions for the enforcement of
the terms of the agreement.
(c) ADMINISTERING BODY.—(1) IN GENERAL.—Funds disbursed from the Americas
Fund in each beneficiary country shall be administered by abody constituted under the laws of that country.
(2) COMPOSITION.—The administering body shall consistof—(A) one or more individuals appointed by the UnitedStates Government,(B) one or more individuals appointed by the government of the beneficiary country, and(C) individuals who represent a broad range of—(i) environmental nongovernmental organizationsof the beneficiary country,(ii) child survival and child development nongovernmental organizations of the beneficiary country,
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Sec. 708(iii) local community development nongovernmental organizations of the beneficiary country, and(iv) scientific or academic organizations or institutions of the beneficiary country.
A majority of the members of the administering body shall be
individuals described in subparagraph (C).
(3) RESPONSIBILITIES.—The administering body—(A) shall receive proposals for grant assistance from eligible grant recipients (as determined under subsection (e))
and make grants to eligible grant recipients in accordancewith the priorities agreed upon in the Americas Framework Agreement, consistent with subsection (d);(B) shall be responsible for the management of the
program and oversight of grant activities funded from resources of the Americas Fund;(C) shall be subject, on an annual basis, to an audit
of financial statements conducted in accordance with generally accepted auditing standards by an independent
auditor;(D) shall be required to grant to representatives of theUnited States General Accounting Office such access tobooks and records associated with operations of the Americas Fund as the Comptroller General of the United States
may request;(E) shall present an annual program for review eachyear by the Enterprise for the Americas Board; and(F) shall submit a report each year on the activities
that it undertook during the previous year to the Chair of
the Enterprise for the Americas Board and to the government of the beneficiary country.
(d) ELIGIBLE ACTIVITIES.—Grants from an Americas Fund shallbe used for—(1) activities that link the conservation and sustainable
use of natural resources with local community development;and(2) child survival and other child development activities.
(e) GRANT RECIPIENTS.—Grants made from an Americas Fundshall be made to—(1) nongovernmental environmental, conservation, childsurvival and child development, development, and indigenous
peoples organizations of the beneficiary country;(2) other appropriate local or regional entities; and(3) in exceptional circumstances, the government of thebeneficiary country.
(f) REVIEW OF LARGER GRANTS.—Any grant of more than$100,000 from an Americas Fund shall be subject to veto by theGovernment of the United States or the government of the beneficiary country.
(g) ELIGIBILITY CRITERIA.—In the event that a country ceases
to meet the eligibility requirements set forth in section 703(a), as
determined by the President pursuant to section 703(b), thengrants from the Americas Fund for that country may only be madeto nongovernmental organizations until such time as the President
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274

determines that such country meets the eligibility requirements set
forth in section 703(a).
SEC. 709. ø22 U.S.C. 2430h¿ ENTERPRISE FOR THE AMERICAS BOARD.

For purposes of this part, the Enterprise for the Americas
Board shall—(1) advise the Secretary of State on the negotiations ofAmericas Framework Agreements;(2) ensure, in consultation with—(A) the government of the beneficiary country,(B) nongovernmental organizations of the beneficiary
country,(C) nongovernmental organizations of the region (if appropriate),(D) environmental, scientific, child survival and childdevelopment, and academic leaders of the beneficiary country, and(E) environmental, scientific, child survival and childdevelopment, and academic leaders of the region (as appropriate),that a suitable administering body is identified for each Americas Fund; and(3) review the programs, operations, and fiscal audits ofeach administering body.
SEC. 710. ø22 U.S.C. 2430i¿ ANNUAL REPORTS TO THE CONGRESS.

The annual reports submitted pursuant to section 614 of theFood for Peace Act (7 U.S.C. 1738mm) shall include a descriptionof each Americas Framework Agreement and a description of any
grants that have been extended by administering bodies pursuant
to an Americas Framework Agreement.

PART V—DEBT REDUCTION FOR DEVELOPING
COUNTRIES WITH TROPICAL FORESTS
SEC. 801. ø22 U.S.C. 2151 nt¿ SHORT TITLE.

This part may be cited as the ‘‘Tropical Forest and Coral Reef
Conservation Act of 1998’’.
SEC. 802. ø22 U.S.C. 2431¿ FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds the following:(1) It is the established policy of the United States to support and seek protection of tropical forests and coral reef ecosystems around the world.
(2) Tropical forests provide a wide range of benefits to humankind by—(A) harboring a major share of the Earth’s biologicaland terrestrial resources, which are the basis for developing pharmaceutical products and revitalizing agricultural crops;(B) playing a critical role as carbon sinks in reducing
greenhouse gases in the atmosphere, thus moderating potential global climate change; and(C) regulating hydrological cycles on which agricultural and coastal resources depend.
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Sec. 803(3) International negotiations and assistance programs toconserve forest resources have proliferated over the past decade, but the rapid rate of tropical deforestation continues
unabated.
(4) Developing countries with urgent needs for investment
and capital for development have allocated a significant
amount of their forests to logging concessions.
(5) Poverty and economic pressures on the populations ofdeveloping countries have, over time, resulted in clearing ofvast areas of forest for conversion to agriculture, which is often
unsustainable in the poor soils underlying tropical forests.
(6) Debt reduction can reduce economic pressures on developing countries and result in increased protection for tropicalforests and coral reef ecosystems.
(7) Finding economic benefits to local communities fromsustainable uses of tropical forests and coral reef ecosystems iscritical to the protection of such areas.
(b) PURPOSES.—The purposes of this part are—(1) to recognize the values received by United States citizens from protection of tropical forests and coral reef ecosystems;(2) to facilitate greater protection of tropical forests andcoral ecosystems (and to give priority to protecting areas withthe highest levels of biodiversity and under the most severe
threat) by providing for the alleviation of debt in countries
where tropical forests and coral reef ecosystems are located,thus allowing the use of additional resources to protect these
critical resources and reduce economic pressures that have led
to deforestation;(3) to ensure that resources freed from debt in such countries are targeted to protection of tropical forests and coral reef
ecosystems and their associated values; and(4) to rechannel existing resources to facilitate the protection of tropical forests and coral reef ecosystems.
SEC. 803. ø22 U.S.C. 2431a¿ DEFINITIONS.

As used in this part:(1) ADMINISTERING BODY.—The term ‘‘administering body’’means the entity provided for in section 809(c).
(2) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term‘‘appropriate congressional committees’’ means—(A) the Committee on International Relations and theCommittee on Appropriations of the House of Representatives; and(B) the Committee on Foreign Relations and the Committee on Appropriations of the Senate.
(3) BENEFICIARY COUNTRY.—The term ‘‘beneficiary country’’ means an eligible country with respect to which the authority of section 806(a)(1), section 807(a)(1), or paragraph (1)or (2) of section 808(a) is exercised.
(4) BOARD.—The term ‘‘Board’’ means the board referred toin section 811.
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Sec. 804

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

276(5) DEVELOPING COUNTRY WITH A TROPICAL FOREST OR
CORAL REEF.—The term ‘‘developing country with a tropical forest or coral reef’’ means—(A)(i) a country that has a per capita income of $725
or less in 1994 United States dollars (commonly referred
to as ‘‘low-income country’’), as determined and adjusted
on an annual basis by the International Bank for Reconstruction and Development in its World Development Report; or(ii) a country that has a per capita income of morethan $725 but less than $8,956 in 1994 United States dollars (commonly referred to as ‘‘middle-income country’’), as
determined and adjusted on an annual basis by the International Bank for Reconstruction and Development in its
World Development Report; and(B) a country that contains at least one tropical forest
or coral reef that is globally outstanding in terms of its biological diversity or represents one of the larger intact
blocks of tropical forests or coral reefs left, on a regional,
continental, or global scale.
(6) ELIGIBLE COUNTRY.—The term ‘‘eligible country’’ meansa country designated by the President in accordance with section 805.
(7) CONSERVATION AGREEMENT.—The term ‘‘Conservation
Agreement’’ or ‘‘Agreement’’ means a Conservation Agreement
provided for in section 809.
(8) CONSERVATION FACILITY.—The term ‘‘Conservation Facility’’ or ‘‘Facility’’ means the Conservation Facility establishedin the Department of the Treasury by section 804.
(9) CONSERVATION FUND.—The term ‘‘Conservation Fund’’or ‘‘Fund’’ means a Conservation Fund provided for in section
810.
(10) CORAL.—The term ‘‘coral’’ means species of the phylum Cnidaria, including—(A) all species of the orders Antipatharia (black corals), Scleractinia (stony corals), Alcyonacea (soft corals),
Gorgonacea (horny corals), Stolonifera (organpipe corals
and others), and Coenothecalia (blue coral), of the class
Anthoza; and(B) all species of the order Hydrocorallina (fire corals
and hydrocorals) of the class Hydrozoa.
(11) CORAL REEF.—The term ‘‘coral reef’’ means any reef or
shoal composed primarily of coral.
(12) CORAL REEF ECOSYSTEM.—The term ‘‘coral reef ecosystem’’ means any coral reef and any coastal marine ecosystem surrounding, or directly related to, a coral reef and important to maintaining the ecological integrity of that coral
reef, such as seagrasses, mangroves, sandy seabed communities, and immediately adjacent coastal areas.
SEC. 804. ø22 U.S.C. 2431b¿ ESTABLISHMENT OF THE FACILITY.

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Sec. 806

providing for the administration of debt reduction in accordancewith this part.
SEC. 805. ø22 U.S.C. 2431c¿ ELIGIBILITY FOR BENEFITS.
(a) IN GENERAL.—To be eligible for benefits from the Facility

under this part, a country shall be a developing country with atropical forest or coral reef—(1) whose government is democratically elected;(2) whose government has not repeatedly provided support
for acts of international terrorism;(3) whose government is not failing to cooperate on international narcotics control matters;(4) whose government (including its military or other security forces) does not engage in a consistent pattern of gross violations of internationally recognized human rights;(5) that has in effect, has received approval for, or is making significant progress toward—(A) an International Monetary Fund standby arrangement, extended Fund arrangement, or an arrangement
under the structural adjustment facility or enhanced structural adjustment facility, or a Fund monitored program, or
is implementing sound macroeconomic policies, unless the
President determines that such an arrangement or program could reasonably be expected to have significant adverse social or environmental effect; and(B) as appropriate, structural or sectoral adjustment
loans from the International Bank for Reconstruction andDevelopment or the International Development Association, unless the President determines that the resulting
adjustment requirements could reasonably be expected tohave significant adverse social or environmental effects;(6) if appropriate, has agreed with its commercial banklenders on a satisfactory financing program, including, as appropriate, debt or debt service reduction; and(7) that has put in place investment reforms, as evidenced
by the conclusion of a bilateral investment treaty with theUnited States, implementation of an investment sector loan
with the Inter-American Development Bank, World Bank-supported investment reforms, or other measures, as appropriate.
(b) ELIGIBILITY DETERMINATIONS.—(1) IN GENERAL.—Consistent with subsection (a), the President shall determine whether a country is eligible to receive
benefits under this part.
(2) CONGRESSIONAL NOTIFICATION.—The President shallnotify the appropriate congressional committees of his intention to designate a country as an eligible country at least 15
days in advance of any formal determination.
SEC. 806. ø22 U.S.C. 2431d¿ REDUCTION OF DEBT OWED TO THE UNITEDSTATES AS A RESULT OF CONCESSIONAL LOANS UNDER
THE FOREIGN ASSISTANCE ACT OF 1961.
(a) AUTHORITY TO REDUCE DEBT.—(1) AUTHORITY.—The President may reduce the amountowed to the United States (or any agency of the United States)that is outstanding as of January 1, 1998, as a result ofJune 10, 2019

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278

concessional loans made to an eligible country by the UnitedStates under part I of this Act, chapter 4 of part II of this Act,or predecessor foreign economic assistance legislation.
(2) AUTHORIZATION OF APPROPRIATIONS.—For the cost (asdefined in section 502(5) of the Federal Credit Reform Act of1990) for the reduction of any debt pursuant to this section,
there are authorized to be appropriated to the President—(A) $25,000,000 for fiscal year 1999;(B) $75,000,000 for fiscal year 2000; and(C) $100,000,000 for fiscal year 2001.
(3) CERTAIN PROHIBITIONS INAPPLICABLE.—(A) IN GENERAL.—A reduction of debt pursuant to thissection shall not be considered assistance for purposes ofany provision of law limiting assistance to a country.
(B) ADDITIONAL REQUIREMENT.—The authority of thissection may be exercised notwithstanding section 620(r) of
this Act or section 321 of the International Development
and Food Assistance Act of 1975.
(b) IMPLEMENTATION OF DEBT REDUCTION.—(1) IN GENERAL.—Any debt reduction pursuant to subsection (a) shall be accomplished at the direction of the Facilityby the exchange of a new obligation for obligations of the typereferred to in subsection (a) outstanding as of the date specified in subsection (a)(1).
(2) EXCHANGE OF OBLIGATIONS.—(A) IN GENERAL.—The Facility shall notify the agency
primarily responsible for administering part I of this Actof an agreement entered into under paragraph (1) with aneligible country to exchange a new obligation for outstanding obligations.
(B) ADDITIONAL REQUIREMENT.—At the direction of the
Facility, the old obligations that are the subject of theagreement shall be canceled and a new debt obligation forthe country shall be established relating to the agreement,
and the agency primarily responsible for administering
part I of this Act shall make an adjustment in its accounts
to reflect the debt reduction.
(c) ADDITIONAL TERMS AND CONDITIONS.—(1) The following additional terms and conditions shall apply to the reduction of debt
under subsection (a)(1) in the same manner as such terms and conditions apply to the reduction of debt under section 704(a)(1) of thisAct:(A) The provisions relating to repayment of principal
under section 705 of this Act.
(B) The provisions relating to interest on new obligations
under section 706 of this Act.
(2) In addition to the application of the provisions relating to
repayment of principal under section 705 of this Act to the reduction of debt under subsection (a)(1) (in accordance with paragraph(1)(A) of this subsection), repayment of principal on a new obligation established under subsection (b) may be made in the local currency of the beneficiary country and deposited in the Conservation
Fund of the country in the same manner as the provisions relating
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Sec. 807

to payment of interest on new obligations under section 706 of thisAct.
(d) AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARSAFTER FISCAL YEAR 2001.—For the cost (as defined in section
502(5) of the Federal Credit Reform Act of 1990) for the reductionof any debt pursuant to this section or section 807, there are authorized to be appropriated to the President the following:(1) $50,000,000 for fiscal year 2002.
(2) $75,000,000 for fiscal year 2003.
(3) $100,000,000 for fiscal year 2004.
(4) $20,000,000 for fiscal year 2005.
(5) $25,000,000 for fiscal year 2006.
(6) $30,000,000 for fiscal year 2007.
(7) $20,000,000 for fiscal year 2019.
(8) $20,000,000 for fiscal year 2020.
(e) USE OF FUNDS TO CONDUCT PROGRAM AUDITS, EVALUATIONS, MONITORING, AND ADMINISTRATION.—Of the amounts madeavailable to carry out this part for a fiscal year, $300,000 is authorized to be made available to carry out audits, evaluations, monitoring, and administration of programs under this part, including
personnel costs associated with such audits, evaluations, monitoring and administration.
SEC. 807. ø22 U.S.C. 2431e¿ REDUCTION OF DEBT OWED TO THE UNITEDSTATES AS A RESULT OF CREDITS EXTENDED UNDER
TITLE I OF THE FOOD FOR PEACE ACT.
(a) AUTHORITY TO REDUCE DEBT.—(1) AUTHORITY.—Notwithstanding any other provision oflaw, the President may reduce the amount owed to the UnitedStates (or any agency of the United States) that is outstanding
as of the date of the enactment of the Tropical Forest Conservation Reauthorization Act of 2018 as a result of any credits
extended under title I of the Food for Peace Act (7 U.S.C. 1701
et seq.) to a country eligible for benefits from the Facility.
(2) AUTHORIZATION OF APPROPRIATIONS.—(A) IN GENERAL.—For the cost (as defined in section
502(5) of the Federal Credit Reform Act of 1990) for the reduction of any debt pursuant to this section, there are authorized to be appropriated to the President—(i) $25,000,000 for fiscal year 1999;(ii) $50,000,000 for fiscal year 2000; and(iii) $50,000,000 for fiscal year 2001.
(B) LIMITATION.—The authority provided by this section shall be available only to the extent that appropriations for the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) of the modification of any
debt pursuant to this section are made in advance.
(b) IMPLEMENTATION OF DEBT REDUCTION.—(1) IN GENERAL.—Any debt reduction pursuant to subsection (a) shall be accomplished at the direction of the Facilityby the exchange of a new obligation for obligations of the typereferred to in subsection (a) outstanding as of the date specified in subsection (a)(1).
(2) EXCHANGE OF OBLIGATIONS.—
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Sec. 808

FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

280(A) IN GENERAL.—The Facility shall notify the Commodity Credit Corporation of an agreement entered into
under paragraph (1) with an eligible country to exchange
a new obligation for outstanding obligations.
(B) ADDITIONAL REQUIREMENT.—At the direction of the
Facility, the old obligations that are the subject of theagreement shall be canceled and a new debt obligation
shall be established for the country relating to the agreement, and the Commodity Credit Corporation shall makean adjustment in its accounts to reflect the debt reduction.
(c) ADDITIONAL TERMS AND CONDITIONS.—(1) The following additional terms and conditions shall apply to the reduction of debt
under subsection (a)(1) in the same manner as such terms and conditions apply to the reduction of debt under section 604(a)(1) of theFood for Peace Act (7 U.S.C. 1738c):(A) The provisions relating to repayment of principal
under section 605 of such Act.
(B) The provisions relating to interest on new obligations
under section 606 of such Act.
(2) In addition to the application of the provisions relating to
repayment of principal under section 605 of the Food for Peace Act
to the reduction of debt under subsection (a)(1) (in accordance withparagraph (1)(A) of this subsection), repayment of principal on a
new obligation established under subsection (b) may be made in
the local currency of the beneficiary country and deposited in theConservation Fund of the country in the same manner as the provisions relating to payment of interest on new obligations under section 606 of such Act.
SEC. 808. ø22 U.S.C. 2431f¿ AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE SWAPS AND DEBT BUYBACKS.
(a) LOANS AND CREDITS ELIGIBLE FOR SALE, REDUCTION, OR
CANCELLATION.—(1) DEBT-FOR-NATURE SWAPS.—(A) IN GENERAL.—Notwithstanding any other provisionof law, the President may, in accordance with this section,sell to any eligible purchaser described in subparagraph(B) any concessional loans described in section 806(a)(1) or
any credits described in section 807(a)(1), or on receipt of
payment from an eligible purchaser described in subparagraph (B), reduce or cancel such loans (or credits) or portion thereof, only for the purpose of facilitating a debt-fornature swap to support eligible activities described in section 809(d).
(B) ELIGIBLE PURCHASER DESCRIBED.—A loan or credit
may be sold, reduced, or canceled under subparagraph (A)only to a purchaser who presents plans satisfactory to the
President for using the loan or credit for the purpose of engaging in debt-for-nature swaps to support eligible activities described in section 809(d).
(C) CONSULTATION REQUIREMENT.—Before the sale
under subparagraph (A) to any eligible purchaser described in subparagraph (B), or any reduction or cancellation under such subparagraph (A), of any loan or credit
made to an eligible country, the President shall consult
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Sec. 808with the country concerning the amount of loans or credits
to be sold, reduced, or canceled and their uses for debt-fornature swaps to support eligible activities described in section 809(d).
(D) AUTHORIZATION OF APPROPRIATIONS.—For the cost
(as defined in section 502(5) of the Federal Credit ReformAct of 1990) for the reduction of any debt pursuant to subparagraph (A), amounts authorized to be appropriatedunder sections 806(a)(2), 807(a)(2), and 806(d) shall bemade available for such reduction of debt pursuant to subparagraph (A).
(2) DEBT BUYBACKS.—Notwithstanding any other provisionof law, the President may, in accordance with this section, sell
to any eligible country any concessional loans described in section 806(a)(1) or any credits described in section 807(a)(1), oron receipt of payment from an eligible country, reduce or cancel such loans (or credits) or portion thereof, only for the purpose of facilitating a debt buyback by an eligible country of its
own qualified debt, only if the eligible country uses an additional amount of the local currency of the eligible country,
equal to not less than the lessor of 40 percent of the price paid
for such debt by such eligible country, or the difference between the price paid for such debt and the face value of suchdebt, to support eligible activities described in section 809(d).
(3) LIMITATION.—The authority provided by paragraphs (1)and (2) shall be available only to the extent that appropriations for the cost (as defined in section 502(5) of the Federal
Credit Reform Act of 1990) of the modification of any debt pursuant to such paragraphs are made in advance.
(4) TERMS AND CONDITIONS.—Notwithstanding any otherprovision of law, the President shall, in accordance with thissection, establish the terms and conditions under which loans
and credits may be sold, reduced, or canceled pursuant to thissection.
(5) ADMINISTRATION.—(A) IN GENERAL.—The Facility shall notify the administrator of the agency primarily responsible for administering part I of this Act or the Commodity Credit Corporation, as the case may be, of eligible purchasers described in paragraph (1)(B) that the President has determined to be eligible under paragraph (1), and shall directsuch agency or Corporation, as the case may be, to carryout the sale, reduction, or cancellation of a loan pursuant
to such paragraph.
(B) ADDITIONAL REQUIREMENT.—Such agency or Corporation, as the case may be, shall make an adjustment in
its accounts to reflect the sale, reduction, or cancellation.
(C) UNITED STATES GOVERNMENT REPRESENTATION ON
THE ADMINISTERING BODY.—One or more individuals appointed by the United States Government shall serve in an
official capacity on the administering body that oversees
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282

gible purchaser and the government of the beneficiary
country.
(b) DEPOSIT OF PROCEEDS.—The proceeds from the sale, reduction, or cancellation of any loan sold, reduced, or canceled pursuant
to this section shall be deposited in the United States Government
account or accounts established for the repayment of such loan.
SEC. 809. ø22 U.S.C. 2431g¿ CONSERVATION AGREEMENT.
(a) AUTHORITY.—The Secretary of State is authorized, in con-sultation with other appropriate officials of the Federal Government, to enter into a Conservation Agreement with any eligible
country concerning the operation and use of the Fund for thatcountry.
(b) CONTENTS OF AGREEMENT.—The requirements contained in
section 708(b) of this Act (relating to contents of an agreement)
shall apply to an Agreement in the same manner as such requirements apply to an Americas Framework Agreement.
(c) ADMINISTERING BODY.—(1) IN GENERAL.—Amounts disbursed from the Fund ineach beneficiary country shall be administered by a body constituted under the laws of that country.
(2) COMPOSITION.—(A) IN GENERAL.—The administering body shall consistof—(i) one or more individuals appointed by theUnited States Government to serve in an official capacity;(ii) one or more individuals appointed by the government of the beneficiary country; and(iii) individuals who represent a broad range of—(I) environmental nongovernmental organizations of, or active in, the beneficiary country;(II) local community development nongovernmental organizations of the beneficiary country;
and(III) scientific, academic, or forestry organizations of the beneficiary country.
(B) ADDITIONAL REQUIREMENT.—A majority of themembers of the administering body shall be individuals
described in subparagraph (A)(iii).
(3) RESPONSIBILITIES.—The requirements contained in section 708(c)(3) of this Act (relating to responsibilities of the administering body) shall apply to an administering body described in paragraph (1) in the same manner as such requirements apply to an administering body described in section
708(c)(1) of this Act.
(d) ELIGIBLE ACTIVITIES.—Amounts deposited in a Fund shallbe used only to provide grants to conserve, maintain, and restore
the tropical forests and coral reef ecosystems in the beneficiary
country, through one or more of the following activities:(1) Establishment, restoration, protection, and maintenance of parks, protected areas, and reserves.
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Sec. 810(2) Development and implementation of scientificallysound systems of natural resource management, including landand ecosystem management practices.
(3) Training programs to increase the scientific, technical,
and managerial capacities of individuals and organizations involved in conservation efforts.
(4) Restoration, protection, or sustainable use of diverse
animal and plant species.
(5) Research and identification of medicinal uses of plantlife to treat human diseases, illnesses, and health related concerns.
(6) Development and support of the livelihoods of individuals dependent on a tropical forest or coral reef ecosystem andrelated resources in a manner consistent with conserving such
resources.
(e) GRANT RECIPIENTS.—(1) IN GENERAL.—Grants made from a Fund shall be madeto—(A) nongovernmental environmental, forestry, conservation, and indigenous peoples organizations of, or active in, the beneficiary country;(B) other appropriate local or regional entities of, or
active in, the beneficiary country; or(C) in limited circumstances, the government of thebeneficiary country when needed to improve governanceand enhance management of tropical forests or coral reef
ecosystems, without replacing existing levels of financial
efforts by the government of the beneficiary country andwith priority given to projects that complement grants
made under subparagraphs (A) and (B).
(2) PRIORITY.—In providing grants under paragraph (1),priority shall be given to projects that are run by nongovernmental organizations and other private entities and that involve local communities in their planning and execution.
(f) REVIEW OF LARGER GRANTS.—Any grant of more than$250,000 from a Fund must be approved by the Government of theUnited States and the government of the beneficiary country.
(g) ELIGIBILITY CRITERIA.—In the event that a country ceases
to meet the eligibility requirements set forth in section 805(a), as
determined by the President pursuant to section 805(b), thengrants from the Fund for that country may only be made to nongovernmental organizations until such time as the President determines that such country meets the eligibility requirements set
forth in section 805(a).
SEC. 810. ø22 U.S.C. 2431h¿ CONSERVATION FUND.
(a) ESTABLISHMENT.—Each beneficiary country that enters intoa Conservation Agreement under section 809 shall be required toestablish a Conservation Fund to receive payments of interest andprincipal on new obligations undertaken by the beneficiary country
under this part.
(b) REQUIREMENTS RELATING TO OPERATION OF FUND.—The following terms and conditions shall apply to the Fund in the same
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manner as such terms as 43 conditions apply to an Enterprise for
the Americas Fund under section 707 of this Act:
(1) The provision relating to deposits under subsection (b)of such section.
(2) The provision relating to investments under subsection(c) of such section.
(3) The provision relating to disbursements under subsection (d) of such section.
SEC. 811. ø22 U.S.C. 2431i¿ BOARD.
(a) ENTERPRISE FOR THE AMERICAS BOARD.—The Enterprise for

the Americas Board established under section 610(a) of the Foodfor Peace Act (7 U.S.C. 1738i(a)) shall, in addition to carrying out
the responsibilities of the Board under section 610(c) of such Act,
carry out the duties described in subsection (c) of this section forthe purposes of this part.
(b) ADDITIONAL MEMBERSHIP.—(1) IN GENERAL.—The Enterprise for the Americas Board
shall be composed of an additional four members appointed by
the President as follows:(A) Two representatives from the United States Government, including a representative of the International
Forestry Division of the United States Forest Service.
(B) Two representatives from private nongovernmental
environmental, scientific, forestry, or academic organizations with experience and expertise in preservation, maintenance, sustainable uses, and restoration of tropical forests.
(2) CHAIRPERSON.—Notwithstanding section 610(b)(2) ofthe Food for Peace Act (7 U.S.C. 1738i(b)(2)), the Enterprise for
the Americas Board shall be headed by a chairperson who
shall be appointed by the President and shall be the representative from the Department of State appointed under section
610(b)(1)(A) of such Act.
(c) DUTIES.—The duties described in this subsection are as follows:(1) Advise the Secretary of State on the negotiations of
Tropical Forest Agreements.
(2) Ensure, in consultation with—(A) the government of the beneficiary country;(B) nongovernmental organizations of the beneficiary
country;(C) nongovernmental organizations of the region (if appropriate);(D) environmental, scientific, forestry, and academic
leaders of the beneficiary country; and(E) environmental, scientific, forestry, and academic
leaders of the region (as appropriate),that a suitable administering body is identified for each Fund.
(3) Review the programs, operations, and fiscal audits ofeach administering body.
43 So in law. Should probably be ‘‘and’’.

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FOREIGN ASSISTANCE ACT OF 1961 (P.L. 87–195)

Sec. 813

SEC. 812. ø22 U.S.C. 2431j¿ CONSULTATIONS WITH THE CONGRESS.

The President shall consult with the appropriate congressional
committees on a periodic basis to review the operation of the Facility under this part and the eligibility of countries for benefits fromthe Facility under this part.
SEC. 813. ø22 U.S.C. 2431k¿ ANNUAL REPORTS TO THE CONGRESS.

Not later than April 15 of each year, the President shall prepare and transmit to the Congress an annual report concerning theoperation of the Facility for the prior calendar year. Such reportshall include—(1) a description of the activities undertaken by the Facility during the previous calendar year;(2) a description of any Agreement entered into under thispart;(3) a report on any Funds that have been establishedunder this part and on the operations of such Funds; and(4) a description of any grants that have been provided byadministering bodies pursuant to Agreements under this part.
Part VI * * *— øREPEALED—1978¿

June 10, 2019

VerDate Nov 24 2008

18:11 Jun 10, 2019

As Amended Through P.L. 116-6, Enacted February 15, 2019

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