185
Subchapter B—Department of Defense Administrative
Authories
SEC. 8211. ADMINISTRATIVE EXPENSES.
Funds allocated to the Department of Defense for the
purpose of providing assistance under this Act shall be
available for the following:
(1) Administrative, extraordinary (not to exceed
$300,000 in any fiscal year), and operating expenses
incurred in furnishing assistance under this Act ad-
ministered through the Department of Defense, in-
cluding the purchase of passenger motor vehicles for
replacement only for use outside of the United
States.
(2) Reimbursement of actual expenses of mili-
tary 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 of title 5, United States
Code, applicable to civilian officers and employees.
(3) Maintenance, repair, alteration, and fur-
nishing of United States-owned facilities in the Dis-
trict of Columbia or elsewhere for the training of
foreign military and related civilian personnel with-
out regard to the provisions of section 3733 of the
Revised Statutes (41 U.S.C. 12) or other provision
186
of law requiring a specific authorization or specific
appropriation for such public contracts.
SEC. 8212. END USE AND RETRANSFER ASSURANCES.
(a) CONDITIONS.—Defense articles or defense serv-
ices may not be made available under this Act to a foreign
country, unless that country has agreed to the following
(in addition to such other provisions as the President may
require):
(1) The country will not, without the consent of
the President—
(A) transfer title to, or possession of, any
defense articles or defense services so furnished
to it to anyone not an officer, employee, or
agent of that country, and
(B) use or permit the use of such articles
or services for purposes other than those for
which furnished.
(2) The country will maintain the security of
such articles or services, and will provide substan-
tially the same degree of security protection afforded
to such articles or services by the United States
Government.
(b) INELIGIBILITY.—
(1) TERMINATION
OF
ASSISTANCE
FOR
SUB-
STANTIAL VIOLATIONS.—Assistance administered by
187
the Department of Defense under this Act to any
country and deliveries of defense articles and defense
services provided with such assistance shall be termi-
nated, and new commitments to provide such assist-
ance to that country shall not be made, as herein-
after provided if such country uses defense articles
or defense services described in paragraph (2) in
substantial violation (either in terms of quantities or
in terms of the gravity of the consequences regard-
less of the quantities involved) of any agreement
pursuant to which those defense articles or defense
services were furnished—
(A) by using such articles or services for a
purpose not provided for in this Act or, if such
agreement provides that such articles or serv-
ices may only be used for purposes more lim-
ited, for a purpose not authorized under such
agreement;
(B) by transferring such articles or serv-
ices to, or permitting any use of such articles
or services by, anyone not an officer, employee,
or agent of the recipient country; or
(C) by failing to maintain the security of
such articles or services.
188
(2) DEFENSE ARTICLES AND DEFENSE SERV-
ICES SUBJECT TO REQUIREMENTS.—Paragraph (1)
applies with respect to any defense articles or de-
fense services furnished (through financing or other-
wise) under this Act, or furnished under any prede-
cessor foreign assistance legislation.
(c) EXCEPTION.—No prior consent shall be required
under this subchapter and section 3 of the Arms Export
Control Act for transfer by a foreign country of defense
articles sold by the United States under that Act under
the following circumstances—
(1) such articles constitute components incor-
porated into a foreign defense article;
(2) the recipient is the government of a NATO
country, or the government of Australia or Japan;
(3) the United States-origin components were
not significant military equipment, were not military
defense equipment for which notification to Congress
was required by section 36(b) of the Arms Export
Control Act, and are not identified by regulation as
Missile Technology Control Regime items; and
(4) the foreign country or persons transferring
the items provide notification to the United States
Government within thirty days following such trans-
fer.
189
SEC. 8213. APPROVAL OF THIRD COUNTRY TRANSFERS.
(a) IN GENERAL.—In considering a request for ap-
proval of any transfer of any weapon, weapons system,
munitions, aircraft, military vessel, or other implement of
war to another country, the President shall not give his
consent under section 8212 to the transfer unless the
United States itself would transfer the defense article
under consideration to that country.
(b) SIGNIFICANT MILITARY EQUIPMENT.—In addi-
tion, the President shall not give consent under this sub-
chapter to the transfer of any significant military equip-
ment on the United States Munitions List unless the for-
eign country requesting consent to transfer agrees to de-
militarize such equipment prior to transfer, or the pro-
posed recipient provides a commitment in writing to the
United States Government that it will not transfer such
equipment if not demilitarized to any other foreign coun-
try or person without first obtaining the consent of the
President.
SEC. 8214. EXCHANGE TRAINING.
The President is authorized to provide for attendance
of foreign military personnel at professional military edu-
cation institutions in the United States (other than service
academies) without charge, and without charge to funds
available to carry out titles II and III notwithstanding sec-
tion 8201, if such attendance is pursuant to an agreement
190
providing for the exchange of students on a generally re-
ciprocal basis each fiscal year between those United States
professional military education institutions and com-
parable institutions of foreign countries and international
organizations.
CHAPTER 3—SPECIAL REQUIREMENTS
AND AUTHORI-
TIES RELATING
TO APPROPRIATIONS
AND LOCAL
CURRENCIES
Subchapter A—Provisions Relating to Appropriations
SEC. 8301. REQUIREMENT FOR AUTHORIZATION OF APPRO-
PRIATIONS.
(a) REQUIREMENT
FOR AUTHORIZATION.—Funds
appropriated for foreign assistance under this Act shall
not be available for obligation or expenditure—
(1) unless the appropriation thereof has been
specifically authorized by law; or
(2) in excess of an amount prescribed by law.
(b) SUBSEQUENT AUTHORIZATIONS.—To the extent
that legislation enacted after the making of an appropria-
tion for foreign assistance under this Act authorizes the
obligation or expenditure thereof, the limitation contained
in subsection (a) shall not apply.
(c) RELATION TO OTHER PROVISIONS.—The provi-
sions of this section shall not be superseded except by a
191
provision of law that specifically repeals or modifies the
provisions of this section.
SEC. 8302. AUTHORITY FOR EXTENDED PERIOD OF AVAIL-
ABILITY OF APPROPRIATIONS.
Amounts appropriated to carry out this Act are au-
thorized—
(1) to be made available, in appropriations
Acts, until expended; and
(2) in addition to amounts otherwise available
for such purposes.
SEC. 8303. REDUCTION IN EARMARKS.
(a) PROPORTIONAL REDUCTIONS.—If—
(1) the amount appropriated for a fiscal period
to carry out any provision of this Act is less than
the amount authorized to be appropriated to carry
out such provision, and
(2) the provision or provisions authorizing such
appropriations provides that a specified amount of
the amount authorized to be appropriated to carry
out that provision for that fiscal period shall be
available only for a particular country, organization,
or purpose,
then the amount so specified shall be deemed to be re-
duced to the amount which bears the same ratio to the
192
specified amount as the amount appropriated bears to the
amount authorized to be appropriated.
(b)(1) Funds may be made available notwithstanding
any provision of law described in paragraph (2) if—
(A) compliance with such provision is made im-
possible by operation of law, or
(B) the President determines that the country
or organization for whom such funds would have
been made available has significantly reduced its
military, political, or economic cooperation with the
United States during the preceding 12 month pe-
riod.
(2) The provisions of law to which this subsection ap-
plies are any provisions requiring that a specified amount
of funds appropriated to carry out any provision of this
Act shall be available only for a particular country, organi-
zation, or purpose.
SEC. 8304. OBLIGATION UPON APPORTIONMENT.
Funds appropriated to carry out this Act may be obli-
gated upon apportionment in accordance with title 31, sec-
tion 1501(a)(5)(C), United States Code.
Subchapter B—Local Currencies
SEC. 8311. USE OF CERTAIN FOREIGN CURRENCIES.
(a) AUTHORITY TO USE FOREIGN CURRENCIES FOR
ASSISTANCE PROGRAMS.—Except as otherwise provided
193
in this Act or other provisions of law, foreign currencies
described in subsection (b) are authorized to be appro-
priated for use in providing assistance under this Act.
(b) FOREIGN CURRENCIES WHICH MAY BE USED
FOR ASSISTANCE.—The foreign currencies which may be
used under subsection (a) are any foreign currencies re-
ceived as a result of the furnishing of assistance under
this Act (or any predecessor legislation authorizing non-
military assistance) other than assistance administered
through the Department of Defense which are in excess
of—
(1) the amounts reserved under authority of
section 105(d) of the Mutual Educational and Cul-
tural Exchange Act of 1961 or any other Act relat-
ing to educational and cultural exchanges; and
(2) the amounts required for payment by the
agencies of the United States Government of their
obligations outside the United States, as such re-
quirements may be established from time to time by
the President.
(c) PAYMENT
OF OBLIGATIONS
OF GOVERNMENT
AGENCIES.—Foreign currencies described in subsection
(b) which are in excess of the amounts described in para-
graph (1) of that subsection may be sold by the Secretary
of the Treasury to agencies of the United States Govern-
194
ment for payment of their obligations outside the United
States.
(d) USE OF FOREIGN CURRENCIES NOT OWNED BY
THE UNITED STATES GOVERNMENT.—With the concur-
rence of the relevant inspector general, the use of foreign
currencies that accrue or are otherwise available as a re-
sult of assistance provided under this Act (including pred-
ecessor legislation) that are not owned by the United
States Government, shall be the responsibility of the gov-
ernment owning such currencies to audit.
SEC. 8312. INTEREST ON U.S. OWNED FOREIGN CURRENCY
PROCEEDS.
(a) REQUIREMENT FOR PAYMENT OF INTEREST.—
In cases where assistance is to be furnished to any recipi-
ent country under this Act on a basis which will result
in the accrual of foreign currency proceeds to the United
States, agreements with respect to such assistance should
include provisions for the receipt of interest income on the
foreign currency proceeds deposited in authorized deposi-
tories.
(b) WAIVER OF REQUIREMENT.—The President may
waive any requirement for receipt of such income if the
President decides it would not be in the national interest
to conclude arrangements for the receipt of interest in-
come pursuant to subsection (a).
195
CHAPTER 4—PROCUREMENT AND DISPOSITION OF
ARTICLES
SEC. 8401. USE OF PRIVATE ENTERPRISE.
(a) IN GENERAL.—In order to encourage and facili-
tate participation by private enterprise to the maximum
extent practicable in achieving any of the purposes of this
Act, the President shall—
(1) to the maximum extent practicable carry
out programs of assistance through private channels
and, to the extent practicable, in conjunction with
local private or governmental participation; and
(2) utilize wherever practicable the products
and services of United States private enterprise to
provide the necessary equipment, supplies, and skills
to develop and operate a specific project or program
of assistance in a developing 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 or pro-
gram to private investors at the earliest feasible
time.
(b) TECHNICAL ASSISTANCE.—In providing technical
assistance under this Act, the President shall utilize, to
the fullest extent practicable, goods and professional and
other services from private enterprise on a contract basis.
196
In such fields as education, health, housing, engineering,
surveying, mapping, construction or agriculture, the facili-
ties and resources of Federal agencies, which do not ad-
minister programs under this Act, may be utilized when
such facilities are particularly or uniquely suitable for
technical assistance, are not competitive with private en-
terprise, and can be made available without interfering un-
duly with domestic programs.
(c) ASSISTANCE PROVIDED THROUGH THE DEPART-
MENT OF DEFENSE.—The President shall assure that
there is made available to suppliers in the United States,
and particularly to small independent enterprises, infor-
mation with respect to purchases of defense articles and
defense services made by the Department of Defense pur-
suant to this Act. Such information shall be furnished as
far in advance as possible.
SEC. 8402. PROCUREMENT STANDARDS AND PROCEDURES.
(a)(1) LIMITATIONS
ON PROCUREMENT OUTSIDE
THE UNITED STATES.—Funds made available for pro-
grams 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—
197
(i) such program requires articles or serv-
ices of a type that are not produced in and
available 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
United States foreign assistance resources,
including to avoid impairment of foreign
assistance objectives.
(2) For purposes of this subsection, the term ‘‘devel-
oping countries’’ shall not include advanced developing
countries.
(b) BULK COMMODITIES.—No funds made available
under this Act shall be used for the purchase in bulk of
any commodities at prices higher than the market 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.
198
(c) PROCUREMENT METHOD FOR INSTITUTIONS OF
HIGHER EDUCATION.—The President may establish sepa-
rate procurement standards and procedures for projects
under this Act to limit competition to a selection among
institutions of higher education when the projects would
benefit substantially from the resources and special capa-
bilities of such institutions.
SEC. 8403. SHIPPING ON UNITED STATES VESSELS.
(a) CERTAIN LAWS NOT APPLICABLE.—The ocean
transportation between foreign countries of articles pur-
chased with foreign currencies made available or derived
from funds made available under this Act or the Agricul-
tural Trade Development and Assistance Act of 1954 (7
U.S.C. 1691 and following), or any predecessor Acts, and
transfers of fresh fruit and fresh fruit products under this
Act, shall not be governed by section 901(b) of the Mer-
chant Marine Act, 1936 (46 U.S.C. app. 1241(b)), or any
other law relating to the ocean transportation of commod-
ities on United States flag vessels.
(b) SHIPPING DIFFERENTIAL.—For purposes of fa-
cilitating implementation of section 901(b) of the Mer-
chant Marine Act, 1936 (46 U.S.C. app. 1241(b)), funds
made available for commodities and services under this
Act may be used to make grants to recipients or otherwise
pay all or any portion of such differential as is determined
199
by the Secretary of Transportation to exist between Unit-
ed States and foreign-flag vessel charter or freight rates.
Grants made under this section shall be paid with United
States-owned foreign currencies wherever feasible.
SEC. 8404. EXCESS AND OTHER AVAILABLE PROPERTY.
(a) POLICY REGARDING USE OF EXCESS AND OTHER
AVAILABLE PROPERTY.—In furnishing assistance under
this Act—
(1) excess personal property, or
(2) if a substantial savings would occur, other
property already owned by an agency of the United
States Government,
may be utilized wherever practicable in lieu of or supple-
mentary to the procurement of new items for United
States-assisted projects and programs.
(b) AUTHORITY TO USE CERTAIN PROPERTY FOR
ASSISTANCE PURPOSES.—The President is authorized to
use funds made available under this Act to acquire—
(1) property classified as domestic or foreign
excess pursuant to the Federal Property and Admin-
istrative Services Act of 1949 (40 U.S.C. 471 and
following);
(2) any property available from an agency of
the United States Government; or
(3) other property,
200
for use of such property as assistance in furtherance of
the purposes of this Act. Property acquired pursuant to
this section may be furnished pursuant to any provision
of this Act for which funds are authorized for the furnish-
ing of assistance.
(c)(1) The President is also authorized for purposes
described in subsection (b) to maintain in a separate ac-
count funds made available under this Act, free from fiscal
year limitations (notwithstanding section 1535(d) of title
31, United States Code) to pay costs (including personnel
costs) of acquisition and storage (including in advance of
known requirements), renovation and rehabilitation, pack-
ing, crating, handling, transportation, and related costs of
handling and providing such property as assistance.
(2) The separate account established pursuant to this
section may be repaid—
(A) from funds made available pursuant to any
provision of this Act for which funds are authorized
for the furnishing of assistance for all costs in-
curred; or
(B) pursuant to section 7110 for all costs in-
curred.
(d) CONDITIONS ON USE OF EXCESS PROPERTY.—
(1) 
LIMITATION.—Government-owned 
excess
property may not be made available for use under
201
this Act unless approval is given and a determina-
tion is made in accordance with paragraph (2)—
(A) before the shipment of such property
for use in a specified country, or
(B) if the property is already in such coun-
try, before the transfer of the property.
(2) DETERMINATION.—A shipment or transfer
subject to paragraph (1) may take place only after
the President approves the shipment or transfer and
makes a written determination—
(A) that there is a need for such property
in the quantity requested and that such prop-
erty is suitable for the purpose requested;
(B) as to the status and responsibility of
the designated end-user and his ability effec-
tively to use and maintain such property; and
(C) that the residual value, serviceability,
and appearance of such property would not re-
flect unfavorably on the image of the United
States and would justify the costs of packing,
crating, handling, transportation, and other ac-
cessorial costs, and that the residual value at
least equals the total of these costs.
(e) THIS SECTION SHALL NOT APPLY.—
202
(1) in the case of excess property of the De-
partment of Defense that is furnished as assistance
under section 8405 of this Act; and
(2) in the case of funds made available for as-
sistance under this Act that is administered through
the Department of Defense.
SEC. 8405. GRANT TRANSFERS OF EXCESS DEFENSE ARTI-
CLES.
(a) AUTHORITY.—Notwithstanding any other provi-
sion of law, the President may transfer excess defense ar-
ticles to countries for which receipt of such articles was
separately justified in the fiscal year in which the transfer
is authorized, such excess defense articles as may be nec-
essary to carry out the purposes of titles II or III of this
Act.
(b) GENERALLY APPLICABLE PROVISIONS.—
(1) DEFINITION.—For purposes of this section,
excess property of the Coast Guard may be trans-
ferred on the same basis as excess defense articles
otherwise authorized to be transferred by this sec-
tion.
(2) TERMS OF TRANSFERS.—Excess defense ar-
ticles may be transferred under this section without
cost to the recipient country or international organi-
zation.
203
(3) LIMITATIONS ON TRANSFERS.—The Presi-
dent may transfer excess defense articles under this
section only if—
(A) they are drawn from existing stocks of
the Department of Defense (or the Coast
Guard);
(B) funds available to the Department of
Defense (or the Coast Guard) for the procure-
ment of defense equipment are not expended in
connection with the transfer;
(C) the transfer of the excess defense arti-
cles will not have an adverse impact on the mili-
tary readiness of the United States; and
(D) transferring the articles under the au-
thority of those sections is preferable to selling
them, 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 either a transfer or sale.
(4) ADVANCE NOTIFICATION TO CONGRESS.—
The President may not transfer excess defense arti-
cles that are significant military equipment or an ar-
ticle valued (in terms of its original acquisition cost)
at $7,000,000 or more, under this section until 15
204
days after the President has provided notice of the
proposed transfer to the Committee on Armed Serv-
ices, the Committee on Foreign Affairs, and the
Committee on Appropriations of the House of Rep-
resentatives and the Committee on Armed Services,
the Committee on Foreign Relations, and the Com-
mittee on Appropriations of the Senate.
(5) WAIVER
OF
REQUIREMENT
FOR
REIM-
BURSEMENT
OF
DEPARTMENT
OF
DEFENSE
EX-
PENSES.—Section 8201 shall not apply with respect
to transfers of excess defense articles under this sec-
tion.
(6) TRANSPORTATION AND RELATED COSTS.—
Funds available to the Department of Defense (or
the Coast Guard) shall not be expended for crating,
packing, handling and transportation of excess de-
fense articles transferred under the authority of this
section, except under the following conditions:
(A) where it is determined that it is in the
United States national interest to do so,
(B) the recipient is an international orga-
nization or is a developing country receiving
less than $10,000,000 of assistance described in
subparagraphs (A) and (B) of section 8551(21)
205
of this Act in the fiscal year in which the trans-
portation is provided,
(C) the total weight of the transfer does
not exceed 25,000 pounds,
(D) such overseas transportation is accom-
plished on a space available basis, and
(E) the recipient agrees to pay packing,
crating, and other handling costs incurred as a
result of the transfer.
SEC. 8406. STOCKPILING OF DEFENSE ARTICLES FOR FOR-
EIGN COUNTRIES.
(a) REMOVAL FROM STOCKPILING.—Defense articles
in the inventory of the Department of Defense which are
set aside, reserved, or in any way earmarked or intended
for future use by any foreign country may not be made
available to or for use by any foreign country unless—
(1) such transfer is authorized under this Act
or the Arms Export Control Act; and
(2) the value of such transfer is charged
against funds authorized to carry out the provisions
of this Act or against any limitations specified in
such legislation, as appropriate, for the fiscal period
in which the defense articles are transferred.
(b) VALUE.—
206
(1) DEFINITION.—For purposes of subsection
(a), ‘value’ means acquisition cost plus crating,
packing, handling, and transportation costs incurred
in carrying out this section.
(2) LIMITATION.—A defense article transferred
from any stockpile which is made available to or for
use by any foreign country may not be considered an
excess defense article for the purpose of determining
the value of that defense article.
SEC. 8407. LOCATION OF STOCKPILES.
Except for stockpiles located in the Republic of
Korea, Thailand, a country which is a member of the
North Atlantic Treaty Organization, a country which is
a major non-NATO ally, or such other countries as the
President may designate, no stockpile may be located out-
side the boundaries of a United States military base or
a military base used primarily by the United States.
SEC. 8408. ADDITIONS TO WAR RESERVE STOCKS.
(a) LIMITATION.—The value of defense articles to be
added to those set aside, earmarked, reserved, or intended
for use as war reserve stocks for allied or other foreign
countries (other than for purposes of the North Atlantic
Treaty Organization) in stockpiles located in foreign coun-
tries may not exceed in any fiscal year an amount specified
207
in legislation authorizing military assistance programs for
that fiscal year.
(b) AUTHORIZATION OF ADDITIONS.—The value of
such additions to stockpiles in foreign countries shall not
exceed such sums as may be authorized for a fiscal year.
SEC. 8409. RETENTION AND USE OF CERTAIN ITEMS AND
FUNDS.
(a) RETENTION AND USE OF CERTAIN ARTICLES.—
(1) AUTHORITY
TO
RETAIN, TRANSFER, AND
USE.—Any articles procured to carry out this Act
shall be retained by, or (upon reimbursement) trans-
ferred to and for the use of, such agency of the
United States Government as the President deems
appropriate in lieu of being disposed of to a foreign
country or international organization, whenever in
the judgment of the President the best interests of
the United States will be served thereby.
(2) LAWS GOVERNING DISPOSAL OF GOVERN-
MENT PROPERTY.—Any articles so retained may be
disposed of without regard to provisions of law relat-
ing to the disposal of property owned by the United
States Government, when necessary to prevent spoil-
age or wastage of such articles or to conserve their
usefulness.
208
(3) PROCEEDS
CREDITED
TO
APPROPRIA-
TIONS.—Funds realized from any disposal or trans-
fer shall revert to the respective appropriation, fund,
or account used to procure such articles or to the
appropriation, fund, or account currently available
for the same general purpose.
(b) ARTICLES RECEIVED AS PAYMENT.—Whenever
articles are transferred to the United States Government
as repayment of assistance under this Act or the former
authority of the Foreign Assistance Act, such articles may
be used in furtherance of the purposes and within the limi-
tations of this Act.
(c) FAILED TRANSACTIONS.—Funds realized as a re-
sult of any failure of a transaction financed under this
Act to conform to the requirements of this Act, to applica-
ble rules and regulations of the United States Govern-
ment, or to the terms of any agreement or contract en-
tered into under this Act, shall revert to the respective
appropriation, fund, or account used to finance such
transaction or to the appropriation, fund, or account cur-
rently available for the same general purpose.
(d) DISPOSAL OF DEFENSE ARTICLES.—Funds real-
ized by the United States Government from the sale,
transfer, or disposal of defense articles furnished under
the former authority of chapter 2 of part II of the Foreign
209
Assistance Act of 1961, and no longer needed for the pur-
poses for which furnished, shall be credited to the respec-
tive appropriation, fund, or account currently available for
the same general purpose.
CHAPTER 5—PERSONNEL AND ADMINISTRATIVE
EXPENSES
Subchapter A—General
SEC. 8501. STATUTORY OFFICERS IN THE UNITED STATES
AGENCY 
FOR 
INTERNATIONAL 
DEVELOP-
MENT.
(a) APPOINTMENT.—The President may appoint, by
and with the advice and consent of the Senate, 12 officers
in the United States Agency for International Develop-
ment.
(b) TITLE.—The President may designate the title of
any officer appointed under subsection (a).
(c) ORDER
OF SUCCESSION.—The President may
also fix the order of succession among the officers ap-
pointed under subsection (a) of this section in the event
of the absence, death, resignation, or disability of one or
more of those officers.
SEC. 8502. EMPLOYMENT OF PERSONNEL.
(a) AUTHORITY.—Any agency or officer of the United
States Government carrying out functions under this Act
is authorized to employ such personnel as the President
210
deems necessary to carry out the provisions and purposes
of this Act.
(b) ASSISTANCE
FUNCTIONS
IN
THE
UNITED
STATES.—
(1) APPOINTMENTS WITHOUT REGARD TO CER-
TAIN CIVIL SERVICE LAWS.—Of the personnel em-
ployed in the United States by the United States
Agency for International Development, 110 may be
appointed or removed without regard to the provi-
sions of title 5, United States Code, governing ap-
pointments in the competitive service, and may be
compensated without regard to the provisions of
chapter 51 or subchapter III of chapter 53 of such
title, subject to paragraph (2) of this subsection.
(2) COMPENSATION.—Of the personnel ap-
pointed under paragraph (1), 51 may be com-
pensated at rates higher than those payable for GS–
15 of the General Schedule under section 5332 of
title 5, United States Code, but not in excess of the
highest rate payable under section 5376 of such
title.
(3) REINSTATEMENT
RIGHTS.—Under such
regulations as the President may prescribe, any indi-
vidual employed under paragraph (1) may be enti-
tled, upon removal (except for cause) from the posi-
211
tion to which the appointment was made, to rein-
statement to the position occupied by that individual
at the time of appointment or to a position of com-
parable grade and pay.
(c) DEPARTMENT OF DEFENSE FUNCTIONS IN THE
UNITED STATES.—Of the personnel employed in the Unit-
ed States by the Department of Defense to carry out this
Act or the Arms Export Control Act not to exceed 8 may
be compensated at rates higher than those payable for
GS–15 of the General Schedule under section 5332 of title
5 of the United States Code, but not in excess of the high-
est rate payable under section 5376 of such title. Such
positions shall be in addition to those authorized by law
to be filled by Presidential appointment, and in addition
to the number authorized by section 5108 of title 5, Unit-
ed States Code.
(d) PERFORMANCE
OF FUNCTIONS OUTSIDE
THE
UNITED STATES.—
(1) AUTHORITY TO EMPLOY OR ASSIGN.—For
the purpose of performing functions under this Act
outside the United States, the President may—
(A) employ or assign individuals, or
(B) authorize the employment or assign-
ment of officers or employees by agencies of the
United States Government which are not au-
212
thorized to utilize the Foreign Service personnel
system.
(2) COMPENSATION.—Individuals employed or
assigned under paragraph (1) shall receive com-
pensation at any of the rates provided for under sec-
tion 402 or section 403 of the Foreign Service Act
of 1980, or under chapter 53 of title 5, United
States Code, or at any other rate authorized by law,
together with allowances and benefits under the For-
eign Service Act of 1980.
(3) REEMPLOYMENT
RIGHTS.—Individuals so
employed or assigned shall be entitled to the same
benefits as are provided by section 310 of that Act
for individuals appointed to the Foreign Service, ex-
cept to the extent that the President may specify
otherwise in cases in which the period of employ-
ment or assignment exceeds 30 months.
(e) CERTAIN FUNDS DEEMED OBLIGATED FOR CER-
TAIN SERVICES.—Funds provided for in agreements with
foreign countries for the furnishing of services under this
Act with respect to specific projects shall be deemed to
be obligated for the services of personnel employed by
agencies of the United States Government (other than the
United States Agency for International Development or
213
the Department of Defense) as well as personnel not em-
ployed by the United States Government.
SEC. 8503. EXPERTS, CONSULTANTS, AND RETIRED OFFI-
CERS.
(a) AUTHORITY TO EMPLOY.—Experts and consult-
ants or organizations thereof may, in accordance with sec-
tion 3109 of title 5 of the United States Code, be em-
ployed for the performance of functions under this Act.
(b) MANDATORY RETIREMENT AGE NOT APPLICA-
BLE.—Service of an individual as an expert or consultant
under subsection (a) of this section shall not be considered
as employment or holding of office or position bringing
such individual within the provisions of section 3323(a)
of title 5 of the United States Code.
(c) EMPLOYMENT OF CERTAIN PERSONS WITHOUT
COMPENSATION.—Persons of outstanding experience and
ability may be employed without compensation by any
agency of the United States Government for the perform-
ance of functions under this Act in accordance with the
provisions of section 710(b) of the Defense Production Act
of 1950 (50 U.S.C. App. 2160(b)), and regulations issued
thereunder.
214
SEC. 8504. DETAIL OF PERSONNEL TO FOREIGN GOVERN-
MENTS 
AND 
INTERNATIONAL 
ORGANIZA-
TIONS.
(a) DETAILS TO FOREIGN GOVERNMENTS.—When
consistent with and in furtherance of the purposes of this
Act, the head of any agency of the United States Govern-
ment is authorized to detail any officer or employee of that
agency to any office or position with any foreign govern-
ment or foreign government agency, where acceptance of
such office or position does not involve the taking of an
oath of allegiance to another government or acceptance of
compensation or other benefits from any foreign country
by such officer or employee.
(b) DETAILS TO INTERNATIONAL ORGANIZATIONS.—
When 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 to any international
organization or arrangement, any officer or employee of
that agency to serve with, or as a member of, the inter-
national staff of such organization, or to render any tech-
nical, scientific, or professional advice or service to, or in
cooperation with, such organization.
(c) STATUS OF PERSONNEL DETAILED.—
(1) RETENTION OF BENEFITS.—Any officer or
employee, while detailed under this section—
215
(A) shall be considered an officer or em-
ployee of the United States Government and of
the agency of the United States Government
from which detailed for the purpose of preserv-
ing his or her allowances, privileges, rights, se-
niority, and other benefits as such; and
(B) shall continue to receive compensation,
allowances, and benefits from funds appro-
priated to that agency or made available to that
agency under this Act, or may be detailed on a
leave without pay status.
(2) ALLOWANCES.—Any officer or employee as-
signed, detailed, or appointed under this section, sec-
tion 8503, section 8505, or section 8506 may receive
(under such regulations as the President may pre-
scribe) representation allowances similar to those al-
lowed 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 the requirements of section 5536 of
title 5, United States Code.
(d) TERMS OF DETAIL.—Details may be made under
this section or section 408 of the Mutual Security Act of
1954 in accordance with any of the following paragraphs:
217
returned to the foreign government or international
organization; or
(4) Subject to the receipt by the United States
Government of a credit to be applied against the
payment by the United States Government of its
share of the expenses of the international organiza-
tion to which the officer or employee is detailed,
such credit to be based upon the compensation, trav-
el expenses, benefits and allowances, or any part
thereof, payable to such officer or employee during
the period of detail in accordance with subsection
(c).
SEC. 8505. HEAD OF OFFICES ABROAD.
(a) APPOINTMENT.—The President may appoint a
head and deputy head of each office or staff maintained
under section 8106.
(b) COMPENSATION AND ALLOWANCES.—Such head
shall be entitled to receive such compensation and allow-
ances as are authorized by the Foreign Service Act of
1980, not to exceed those authorized for a chief of mission
(as defined in section 102(a)(3) of that Act), as the Presi-
dent deems appropriate.
SEC. 8506. CHAIRMAN OF OECD DEVELOPMENT ASSIST-
ANCE COMMITTEE.
(a) APPOINTMENT.—The President may—
218
(1) appoint any United States citizen who is
not an employee of the United States Government,
or
(2) assign any United States citizen who is an
employee of the United States Government, to serve
as Chairman of the Development Assistance Com-
mittee (or any successor committee) of the Organi-
zation for Economic Cooperation and Development,
upon election thereto by members of that Commit-
tee.
(b) COMPENSATION AND ALLOWANCES.—An individ-
ual appointed or assigned under subsection (a) may re-
ceive such compensation and allowances as are authorized
by the Foreign Service Act of 1980, not to exceed those
authorized for a chief of mission (as defined in section
102(a)(3) of that Act), as the President deems appro-
priate. Such individual, if appointed under subsection
(a)(1), shall be deemed to be an employee of the United
States Government for purposes of chapters 81, 83, 84,
87, and 89 of title 5, United States Code. Such individual
may also, in the President’s discretion, receive any other
benefits and perquisites available under this Act to heads
of offices or staffs maintained under section 8106.
219
SEC. 8507. ASSIGNMENT OF DOD PERSONNEL TO CIVIL
OFFICES.
Notwithstanding section 973(b) of title 10, United
States Code, personnel of the Department of Defense may
be assigned or detailed to any civil office to carry out this
Act.
SEC. 8508. DISCRIMINATION AGAINST UNITED STATES PER-
SONNEL PROVIDING ASSISTANCE.
It is the Sense of the Congress that—
(1) the assignment of officers and employees of
the United States to carry out any assistance pro-
gram funded under this Act in any foreign country,
should not take into account the race, religion, na-
tional origin, or sex of any such officer or employee,
and such assignments should be made solely on the
basis of ability and relevant experience; and
(2) assistance under this Act should not be fur-
nished to any foreign country, the laws, regulations,
official policies, or governmental practices of which
prevent any United States person (as defined in sec-
tion 7701(a)(30) of the Internal Revenue Code of
1954) from participating in the furnishing of assist-
ance under this Act on the basis of race, religion,
national origin, or sex.
220
SEC. 8509. AVAILABILITY OF FUNDS FOR OPERATING EX-
PENSES GENERALLY.
(a) IN GENERAL.—Funds shall be available to carry
out the provisions of this section as authorized and appro-
priated to the President each fiscal year.
(b) ADDITIONAL AMOUNTS.—There are authorized to
be appropriated to the President such additional amounts
as may be necessary for increases in salary, pay, retire-
ment, and other employee benefits authorized by law, and
for other nondiscretionary costs of such agency.
SEC. 8510. AVAILABILITY OF FUNDS FOR OPERATING EX-
PENSES OF THE INSPECTOR GENERAL.
(a) IN GENERAL.—Funds shall be available to carry
out the provisions of this section as authorized and appro-
priated to the President each fiscal year.
(b) ADDITIONAL AMOUNTS.—There are authorized to
be appropriated to the President such additional amounts
as may be necessary for increases in salary, pay, retire-
ment, and other employee benefits authorized by law, and
for other nondiscretionary costs of such office.
SEC. 8511. AVAILABILITY OF FUNDS.
Notwithstanding any other provision of law, the Unit-
ed States Agency for International Development may obli-
gate and expend funds in advance of appropriations in an
amount sufficient to maintain operations at posts abroad
for up to three days.
221
Subchapter B—Overseas Management of Assistance and
Sales Programs Administered Through The Depart-
ment of Defense
SEC. 8521. AUTHORIZED FUNCTIONS.
(a) IN GENERAL.—In order to carry out responsibil-
ities for the management of assistance and sales programs
administered through the Department of Defense under
this Act and under the Arms Export Control Act, the
President may assign members of the Armed Forces 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 govern-
ment’s military capabilities and requirements.
(5) Administrative support.
(6) Promoting rationalization, standardization,
interoperability, and other defense cooperation meas-
ures.
(7) Liaison functions exclusive of advisory and
training assistance.
(b) ADVISORY AND TRAINING ASSISTANCE.—Advi-
sory and training assistance conducted by members of the
Armed Forces assigned for purposes of providing defense
222
articles or defense services shall be kept to an absolute
minimum. Advising and training assistance in countries
to which members of the Armed Forces are assigned for
such purposes should be provided primarily by other per-
sonnel who are not assigned for such purposes and who
are detailed for limited periods to perform specific tasks.
SEC. 8522. COSTS.
The entire costs (excluding salaries of members of the
Armed Forces other than the Coast Guard) of overseas
management of programs for providing defense articles
and defense services under this Act shall be charged to
or reimbursed from funds allocated to the Department of
Defense, pursuant to the authorities of this Act, other
than any such costs which are either—
(1) paid directly for such defense services under
section 21(a) of the Arms Export Control Act, or
(2) reimbursed from charges for services col-
lected from foreign governments pursuant to section
21(e) and section 43(b) of that Act.
SEC. 8523. ROLE OF CHIEF OF MISSION.
Members of the Armed Forces assigned to a foreign
country under section 8521 of this Act shall serve under
the direction and supervision of the Chief of the United
States Diplomatic Mission to that country.
223
Subchapter C—Administrative Provisions for the Trade
and Development Agency
SEC. 8531. DIRECTOR AND PERSONNEL.
(a) DIRECTOR.—There shall be at the head of the
Trade and Development Agency a Director who shall be
appointed by the President, by and with the advice and
consent of the Senate.
(b) OFFICERS AND EMPLOYEES.—
(1) The Director may appoint such officers and
employees of the Trade and Development Agency as
the Director considers appropriate.
(2) The officers and employees appointed under
this paragraph shall have such functions as the Di-
rector may determine.
(3) Of the officers and employees appointed
under this paragraph, two may be appointed without
regard to the provisions of title 5, United States
Code, governing appointments in the competitive
service, and may be compensated without regard to
the provisions of chapter 51 or subchapter III of
chapter 53 of such title.
(4) Under such regulations as the President
may prescribe, any individual appointed under sub-
paragraph (C) may be entitled, upon removal (except
for cause) from the position to which the appoint-
224
ment was made, to reinstatement to the position oc-
cupied by that individual at the time of appointment
or to a position of comparable grade and pay.
SEC. 8532. AUDITS.
(a) 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 pro-
vided in this section.
(b) INDEPENDENT AUDIT.—An independent certified
public accountant shall perform a financial and compli-
ance audit of the financial statements of the Trade and
Development Agency each year, in accordance with gen-
erally accepted Government auditing standards for a fi-
nancial 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 the Trade and
Development Agency. The financial statements of the
Trade and Development Agency shall be presented in ac-
cordance with generally accepted accounting principles.
These financial statements and the report of the account-
ant shall be included in a report which contains, to the
extent applicable, the information identified in section
3512 of title 31, United States Code, and which the Trade
and Development Agency shall submit to the Congress not
225
later than 61⁄2 months after the end of the last fiscal year
covered by the audit. The Comptroller General may review
the audit conducted by the accountant and the report to
the Congress in the manner and at such times as the
Comptroller General considers necessary.
(c) AUDIT BY COMPTROLLER GENERAL.—In lieu of
the financial and compliance audit required by paragraph
(2), the Comptroller General shall, if the Comptroller Gen-
eral considers it necessary or upon the request of the Con-
gress, audit the financial statements of the Trade and De-
velopment Agency in the manner provided in paragraph
(2).
(d) AVAILABILITY OF INFORMATION.—All books, ac-
counts, financial records, reports, files, workpapers, and
property belonging to or in use by the Trade and Develop-
ment Agency and the accountant who conducts the audit
under paragraph (2), which are necessary for purposes of
this subsection, shall be made available to the representa-
tives of the General Accounting Office designated by the
Comptroller General.
SEC. 8533. 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
226
of the Trade and Development Agency in the preceding
fiscal year.
Subchapter D—Administrative Provisions for the
Overseas Private Investment Corporation
SEC. 8541. STOCK OF THE CORPORATION.
The Secretary of the Treasury shall hold the capital
stock of the Corporation.
SEC. 8542. ORGANIZATION AND MANAGEMENT.
(a) STRUCTURE OF THE CORPORATION.—The Cor-
poration 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.—
(1) IN GENERAL.—All powers of the Corpora-
tion shall vest in and be exercised by or under the
authority of its Board of Directors (hereafter in this
subchapter referred to as ‘the Board’) which shall
consist of 15 Directors (including the Chair and
Vice Chair), with 8 Directors constituting a quorum
for the transaction of business.
(2) COMPOSITION OF THE BOARD.—
(A) CHAIR.—The Chair of the Board shall
be the Administrator of the United States
Agency for International Development, ex
officio.
227
(B) VICE CHAIR.—The Vice Chair of the
Board shall be the United States Trade Rep-
resentative, ex officio, except that the United
States Trade Representative may designate the
Deputy United States Trade Representative to
serve as Vice Chairman in place of the United
States Trade Representative.
(C) PRESIDENT OF OPIC.—The President
of the Corporation shall serve as a Director, ex
officio.
(D) PUBLIC SECTOR DIRECTORS.—(i) In
addition to the directors provided for in sub-
paragraphs (A) through (C), five Directors who
are officers or employees of the Government of
the United States shall be designated by the
President of the United States, including an of-
ficer or employee of the Department of Labor.
(ii) The Directors designated under this
subparagraph shall receive no additional com-
pensation by virtue of their service as such a
Director.
(E) PRIVATE SECTOR DIRECTORS.—Eight
Directors who are not otherwise officers or em-
ployees of the Government of the United States
shall be appointed by the President of the Unit-
228
ed States, by and with the advice and consent
of the Senate. Of these, at least—
(i) two shall be experienced in small
business,
(ii) one shall be experienced in orga-
nized labor, and
(iii) one shall be experienced in co-
operatives.
(F) EACH DIRECTOR APPOINTED UNDER
SUBPARAGRAPH (E)—
(i) shall be appointed for a term of
not more than 3 years; the terms of not
more than three such Directors shall expire
in any 1 year;
(ii) shall serve until their successors
are appointed and qualified and may be
reappointed to subsequent terms; and
(iii) shall be compensated at the daily
equivalent of the annual rate of pay in ef-
fect for level IV of the Executive Schedule
under section 5315 of title 5, United
States Code, for each day (including travel
time) during which such Director is actu-
ally engaged in the business of the Cor-
poration, and may be paid travel or trans-
229
portation expenses to the extent authorized
for employees serving intermittently in the
Government service under section 5703 of
title 5, United States Code.
(c) APPOINTMENT OF THE PRESIDENT.—The Presi-
dent of the Corporation shall be appointed by the Presi-
dent of the United States, by and with the advice and con-
sent of the Senate. In making such appointment, the
President shall take into account the private business ex-
perience of the appointee. The President of the Corpora-
tion shall be its Chief Executive Officer and shall be re-
sponsible for the operations and management of the Cor-
poration, subject to bylaws and policies established by the
Board.
(d) OFFICERS AND STAFF.—
(1) EXECUTIVE VICE PRESIDENT.—The Execu-
tive Vice President of the Corporation shall be ap-
pointed by the President of the United States, by
and with the advice and consent of the Senate.
(2) OTHER
OFFICERS
AND
STAFF.—(A) The
Corporation may appoint such other officers and
such employees (including attorneys) and agents as
the Corporation considers appropriate.