An Act to amend further the Foreign Assistance Act of 1961, as amended and for other purposes
PL 89-171 (H.R.7750), enacted 09/06/1965

79 STAT. ] 
PUBLIC LAW 89-171-SEPT. 6, 1965 
653 
Public Law 89-171 
AN A C T 
September 6, 1965 
To amend further the Foreign Assistance Act of 1961, as amended, and for other 
[H. R. 775O] 
purposes. 
Foreign Assist-
ance Act of 1965, 
Destruction of 
U.S. property. 
Be it enacted hy the Senate and House of Representati'ves of the 
United States of America in Congress a^sembled^ That this Act may 
be cited as the "Foreign Assistance Act of 1965". 
PART I 
CHAPTER 1—POLICY 
SEC. 101. Section 102 of the Foreign Assistance Act of 1961, as 
amended, which relates to the statement of policy, is amended as 
^^ ^^^ ^^^-^ 
follows: 
(a) Strike out the last sentence in the seventh paragraph and sub-
stitute the following: "It is the sense of the Congress that in furnish- utfnzrtlor['an'd^'^*^' 
ing assistance under this part excess personal property shall be uti- disposal. 
lized wherever practicable in lieu of the procurement of new items for 
United States-assisted projects and programs. It is the further sense 
of the Congress that assistance under this part shall be complemented 
by the furnishing imder any other Act of surplus agricultural com-
modities and by disposal of excess property under this and other Acts." 
^b) Add at the end thereof the following new paragraph: 
"It is the sense of the Congress that assistance under this or any 
other Act to any foreign country which hereafter permits, or fails 
to take adequate measures to prevent, the damage or destruction by 
mob action of United States property within such country, should be 
terminated and should not be resumed until the President determines 
that appropriate measures have been taken by such country to prevent 
a recurrence thereof." 
CHAPTER 2—DEVELOPMENT ASSISTANCE 
TITLE I—DEVELOPMENT LOAN FUND 
SEC. 102. Title I of chapter 2 of part I of the Foreign Assist?ince 
Act of 1961, as amended, which relates to the Development Loan Fund, 
is amended as follows: 
(a) Amend section 205, which relates to the use of the facilities of the 
22 use 2i65. 
International Development Association, to read as follows: 
"SEC. 205. USE OF INTERNATIONAL LENDING ORGANIZATIONS.—In 
order to serve the purposes of this title and the policy contained in 
section 619, the President, after consideration of the extent of addi-
tional participation by other countries, may make available, in addition 
to any other funds available for such purposes, on such terms and 
conditions as he determines, not to exceed 15 per centum of the funds 
made available for this title to the International Development Asso-
ciation, the International Bank for Reconstruction and Development, 
or the International Finance Corporation for use pursuant to the laws 
governing United States participation in such institutions, if any, 
and the governing statutes thereof and without regard to section 201 or 
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any other requirements of this or any other Act." 
(b) Add the following new section: 
"SEC. 206. 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 inter-
national development organizations, to further and assist in the 
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654 
PUBLIC LAW 89-171-SEPT. 6, 1965 
[79 STAT. 
advancement of African regional development institutions, including 
the African Development Bank, with the view toward promoting 
African economic development." 
TITLE II—^TECHNICAL COOPERATION AND DEVELOPMENT GRANTS 
SEC. 103. Title I I of chapter 2 of part I of the Foreign Assistance 
Act of 1961, as amended, which relates to technical cooperation and 
development grants, is amended as follows: 
75 Stat. 428; 
(|a) Amend section 212, which relates to authorization, by striking 
^'22'usc°2m. 
out 
"1965" 
and 
"$215,000,000" 
and 
substituting 
"1966" 
and 
"$210,000,000", respectively. 
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Qy"^ Amend section 214, which relates to American schools and hos-
pitals abroad, as follows: 
(1) Amend subsection (b) by striking out "treatment, educa-
tion," and substituting "education". 
(2) Amend subsection (c) by striking out "1965, $18,000,000" 
and substituting "1966, $7,000,000". 
TITLE III—INVESTMENT GUARANTIES 
SEC. 104. Title I I I of chapter 2 of part I of the Foreign Assistance 
Act of 1961, as amended, which relates to investment guaranties, is 
amended as follows: 
22 use 2181. 
^^^ Amend section 221(b), which relates to general authority, as 
follows: 
(1) Amend the introductory clause to read as follows: 
"(b) The President may issue guaranties to eligible United States 
investors—". 
(2) In paragraph (1), strike out "$2,500,000,000" and substi-
tute "$5,000,000,000". 
(3) Amend paragraph (2) as follows: 
(A) In the first proviso, strike out ", and no such guaranty 
in the case of a loan shall exceed $25,000,000 and no other 
such guaranty shall exceed $10,000,000". 
(B) In the third proviso, immediately after "$300,000,000" 
insert the following: ", and guaranties issued under this para-
graph (2) for other than housing projects similar to those in-
sured by the Federal Housing Administration, shall not 
exceed $175,000,000". 
(C) In the fourth proviso, strike out "1966" and substitute 
"1967". 
(b) Amend section 221(c), which relates to general authority, as 
follows: 
(1) Strike out "actual earnings or profits" and substitute 
"earnings or profits actually accrued". 
(2) Immediately after '^guaranty" the third time it appears, 
insert "of an equity investment". 
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^Q^ Amend section 222(b), which relates to general provisions, by 
inserting after "(exclusive of informational media guaranties)," the 
words "and to pay the costs of investigating and adjusting (including 
costs of arbitration) claims under such guaranties,". 
22 use 2183. 
((J) Amend section 223, which relates to definitions, as follows: 
(1) In subsection (a), strike out "and" at the end thereof and in 
subsection (b) strike out the period and substitute "; and". 
(2) Add the following new subsection (c) : 
"Eligible U.S. 
«(c) the term 'eligible United States investors' means United 
inves ors. 
Statcs citizpiis, or corp>orations, partnerships, or other associa-
tions created under the laws of the United States or any State or 
79 STAT. ] 
PUBLIC LAW 89-171-SEPT. 6, 1965 
655 
territory and substantially beneficially owned by United States 
citizens, as well as foreign corporations, partnerships, or other 
associations wholly owned by one or more such United States 
citizens, corporations, partnerships, or other associations: Pro-
'vided, That the eligibility of a foreign corporation shall be deter-
mined without regard to any shares, in aggregate less than 5 per 
centum of the total of issued and subscribed share capital, required 
by law to be held by persons other than the United States owners." 
(e) Amend section 224, which relates to housing projects in Latin 
^2 us^c -^^84 
American countries, to read as follows: 
"SEC. 224. HOUSING PROJECTS IN LATIN AMERICAN COUNTRIES.— 
(a) It is the sense of C!ongress that in order to stimulate private home 
ownership and assist in the development of stable economies in Latin 
America, the authority conferred by this section should be utilized 
for the purpose of assisting in the development in the American 
Republics of self-liquidating pilot housing projects, the development 
of institutions engaged in Alliance for Progress programs, including 
cooperatives, free labor unions, savings and loan type institutions, and 
other private enterprise programs in Latin America engaged directly 
or indirectly in the financing of home mortgages, the construction of 
homes for lower income persons and families, the increased mobiliza-
tion of savings and the improvement of housing conditions in Latin 
America. 
"(b) To carry out the purposes of subsection (a), the President is 
authorized to issue guaranties, on such terms and conditions as he shall 
determine, to eligible United States investors as defined in section 223 
^"'e- P- 654. 
assuring against loss of loan investments made by such investors in— 
"(1) pilot or demonstration private housing projects in Latin 
America of types similar to those insured by the Federal Housing 
Administration and suitable for conditions in Latin America; 
"(2) credit institutions in Latin America engaged directly or 
indirectly in the financing of home mortgages, such as savings and 
loan institutions and other qualified investment enterprises; 
"(3) housing projects in Latin America for lower income fam-
ilies and persons, which projects shall be constructed in accordance 
with maximum unit costs established by the President for families 
and persons whose incomes meet the limitations prescribed by the 
President; 
"(4) housing projects in Latin America which will promote the 
development of institutions important to the success of the Al-
liance for Progress, such as free labor unions, cooperatives, and 
other private enterprise programs; or 
"(5) housing projects in Latin America 25 per centum or more 
of the aggregate of the mortgage financing for which is made 
available from sources within Latin America and is not derived 
from sources outside Latin America, which projects shall, to the 
maximum extent practicable, have a unit cost of not more than 
$6,500. 
''(c) The total face amount of guaranties issued under this section 
outstanding at any one time shall not exceed $400,000,000: Provided, 
That no payment may be made under this section for any loss arising 
out of fraud or misconduct for which the investor is responsible: Pro-
vided further. That this authority shall continue until June 30, 1967." 
TITLE VI—ALLIANCE FOR PROGRESS 
SEC. 105. Section 252 of the Foreign Assistance Act of 1961, as 
amended, which relates to the Alliance for Progress, is amended by yg^^stat^^^icao^' 
inserting immediately after "fiscal year 1965" the following: "and 
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$75,000,000 in fiscal year 1966". 
656 
PUBLIC LAW 89-171-SEPT. 6, 1965 
[79 STAT. 
CHAPTER 3—INTERNATIONAL ORGANIZATIONS AND 
PROGRAMS 
SEC. 106. Chapter 3 of part I of the Foreign Assistance Act of 1961, 
as amended, which relates to international organizations and programs, 
is amended as follows: 
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2
2
^
1 
(^) ^i^^iid section 301 (c), which relates to assistance for Palestine 
refugees in the Near East, by adding at the end thereof the following: 
"Contributions by the United States to the United Nations Relief and 
Works Agency for Palestine Refugees in the Near P^ast for the cal-
endar year 1966 shall not exceed $15,200,000." 
78 Stat. 1010. 
(b) Amend section 302, which relates to authorization, by striking 
out 
"1965" and 
"$134,272,400"' 
and 
substituting 
"1966" 
and 
"$144,755,000", respectively. 
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2321 
CHAPTER 4—SUPPORTING ASSISTANCE 
SEC. 107. Section 402 of the Foreign Assistance Act of 1961, as 
78^stat^\" V'^' 
amended, which i-elates to supporting assistance, is amended bj^ strik-
22 use 2242. 
iug out in the first sentence "1965" and "$405,000,000" and substituting 
"1966" and "$369,200,000", respectively. 
CHAPTER 5—CONTINGENC^Y FUND 
SEC. 108. Section 451 of the Foreign Assistance Act of 1961, as 
22 use 2261. 
amended, which relates to the contingency fund, is amended as follows: 
(a) Amend subsection (a) as follows: 
(1) Strike out "1965" and "$150,000,000" and substitute "1966" 
and "$50,000,000", respectively. 
Southeast Asia. 
^2) Add the followiug new sentence: "In addition, there is 
hereby authorized to be appropriated to the President for use in 
Southeast Asia such sums, not to exceed $89,000,000, as may be 
necessary in the fiscal year 1966 for programs authorized by parts 
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I and I I of this Act." 
(b) Amend subsection (b) by striking out "this section" and substi-
tuting "the first sentence of subsection (a)" 
PART I I 
CHAPTER 2—MILITARY ASSISTANCE 
SEC. 201. Chapter 2 of part I I of the Foreign Assistance Act of 1961, 
as amended, which relates to military assistance, is amended as follows: 
75 Stat. 435. 
(a) Amend section 503(b), which relates to general authority, by 
striking out the words "in foreign countries". 
78 Stat, 1011. 
(b) Amend section 504, which relates to authorization, by striking 
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^^^^ " i % 5 " and "$1,055,000,000" in the first sentence and substituting 
"1966" and "$1,170,000,000", respectively. 
75 Stat. 436; 
(c) Amcud sectiou 505, which relates to utilization of assistance, as 
77 Stat. 384. 
,. 11 
22 use 2313, 
Toiiows: 
(1) In subsection (a), strike out the colon and add the following: 
", or for the purpose of assisting foreign military forces in less 
developed friendly countries (or the voluntary efforts of personnel 
of the Armed Forces of the United States in such countries) to 
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 
79 STAT. ] 
PUBLIC LAW 89-171-SEPT. 6, 1965 
657 
should not be maintained or established solely for civic action 
activities and that such civic action activities not significantly 
detract from the capability of the military forces to perform their 
military missions and be coordinated with and form part of the 
total economic and social development effort." 
(2) Strike out subsection (b) and redesignate the proviso of 
subsection (a) as subsection (b). 
(3) In redesignated subsection (b), strike out ''"Pi-oiuded, That 
except" and substitute "Except*'; strike out "or (2)" and substitute 
", or (2) for civic action assistance, or (3)"'. 
(d) Amend section 507, which relates to sales, as follows: 
iV^lT\lV\ 
(1) In subsection (a), insert the following new sentence 
22 use 2315. 
between the second and third sentences: "Notwithstanding the 
P
rovisions of section 644(m) (2), nonexcess defense articles may 
^°®'' ^' ^'^^• 
e sold under this subsection at the standard price in effect at the 
time such articles are offered for sale to the purchasing country or 
international organization." 
(2) In subsection (b), strike out the period at the end of the 
tirst proviso, substitute a colon and add the following: "''Proi;>ded ^^[l^ agree. 
further^ That the President may, w^hen he determines it to be in 
the national interest, enter into sales agreements w^ith purchasing 
countries or international organizations which fix prices to be paid 
by the purchasing countries or international organizations for the 
defense articles or defense services ordered. 
Funds available 
under this part for financing sales shall be used to reimburse the 
applicable appropriations in the amounts required by the con-
tracts which exceed the price so fixed, except that such reimburse-
ment shall not be required upon determination by the President 
that the continued production of the defense article being sold is 
advantageous to the Armed Forces of the United States. 
Pay-
ments by purchasing countries or international organizations 
which exceed the amounts required by such contracts shall be 
credited to the account established under section 508. To the 
^"^"• 
maximum extent possible, prices fixed under any such sales agree-
ment shall be sufficient to reimburse the United States for the cost 
of the defense articles or defense services ordered. 
The President C(^g^esV" 
shall submit to the Congress promptly a detailed report concerning 
any fixed-price sales agreement under which the aggregate cost 
to the United States exceeds the aggregate amount required to be 
paid by the purchasing country or international organization." 
(e) Amend section 508, which relates to reimbursement as follows: 
^^ ^^^ ^|^^-
(1) After "this part" the first time it appears, insert "have been 
or". 
(2) After "United States Government," the first time it appears 
insert "receipts received from the disposition of evidences of in-
debtedness and charges (including fees and premiums) or interest 
collected". 
(3) Strike out "the current applicable appropriation" and sub-
stitute "a separate fund account". 
(4) Strike out "furnishing further military assistance on cash 
or credit terms" and substitute "financing sales and guaranties, 
including the overhead costs thereof". 
(f) Amend section 509(b), which relates to exchanges and guar- 
22 use 231V' 
unties, by inserting "(excluding contracts with any agency of the 
United States Government)" in the second sentence between the last 
word thereof and the period. 
658 
PUBLIC LAW 89-171-SEPT. 6, 1965 
[79 STAT. 
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(^) -Aj^^iid section 510(a), which relates to special authority, as 
follows: 
(1) In the first sentence strike out "1965" and substitute "1966". 
(2) In the second sentence, strike out "1965" and substitute "1966". 
7/statr*384^^' 
v^) ^^Jn^nd section 511, which relates to restrictions on military aid 
22 use 2319. 
to Latin America, as follows: 
(1) In subsection (a), strike out "a part may be used during each 
fiscal year for assistance in implementing a feasible plan for regional 
defense", and insert "$25,000,000 may be used for assistance on a cost-
sharing basis to an inter-American military force under the control of 
the Organization of American States"; and amend the proviso to read 
as follows: ": Provided, That the cost of defense articles supplied for 
use by elements of the Inter-American Peace Force in the Dominican 
Republic shall not be charged against the $55,000,000 limitation pro-
vided by this subsection". 
(2) Amend subsection (b) to read as follows: 
"(b) To the maximum extent feasible, military assistance shall be 
furnished to American Republics in accordance with joint plans 
(including joint plans relating to internal security problems) approved 
Reports to 
\yy the Orgauizatiou of American States. The President shall submit 
ongress. 
;?emiannual reports to the Speaker of the House of Representatives and 
to the Committee on Foreign Relations of the Senate on the imp^'^-
mentation of this subsection." 
77 Stat. 384; 
(\\ Amend section 512, which relates to restrictions on military aid 
78 Stat. 1012. 
, 
\ i . 
J. n 
' 
"
^ 
22 use 2320. 
to Ainca, as lollows: 
(1) Strike out "programs described in section 505(b) of this 
chapter" and substitute "civic action requirements". 
(2) Strike out "1965" and substitute "1966". 
PART I I I 
CHAPTER 1—GENERAL PROVISIONS 
SEC. 301. Chapter 1 of part I I I of the Foreign Assistance Act of 
1961, as amended, which relates to general provisions, is amended as 
follows: 
75 Stat. 440. 
(a) Amend section 605, which relates to retention and use of items, 
22 use 2355. 
^ 1 1 
!is lollows: 
(1) In the section heading strike out "ITEMS" and substitute 
"CERTAIN ITEMS AND FUNDS". 
fu?ds''^"'°" °^ 
(^) ^ ^ ^ *^® following new subsections: 
"(c) Funds realized as a result of any failure of a transaction 
^
2
^
2 use 2151- 
financed under authority of part I of this Act to conform to the require-
ments of this Act, or to applicable rules and regulations of the United 
States Government, or to the terms of any agreement or contract 
entered into under authority of part I of this Act, shall revert to the 
respective appropriation, fund, or account used to finance such trans-
action or to the appropriation, fund, or account currently available 
tor the same general purpose. 
"(d) Funds realized by the United States Government from the sale, 
transfer, or disposal of defense articles returned to the United States 
Government by a recipient country or international organization as no 
longer needed for the purpose for which furnished shall be credited to 
the respective appropriation, fund, or account used to procure such 
defense articles or to the appropriation, fund, or account currently 
fivailable for the same general purpose." 
2271. 
79 STAT. ] 
PUBLIC LAW 89-171-SEPT. 6, 1965 
659 
(b) Amend section 612, which relates to use of foreign currencies, 
^^ sta^ ^i,n2. 
by redesignating subsection (c) as subsection (b), and by striking out 
the first sentence of the second paragraph of such subsection and by 
adding at the end thereof the following new paragraph: 
"The President shall take all appropriate steps to assure that, to the ^^1°^^^^^^ curren. 
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) Amend section 613, which relates to foreign currencies, as 
^^ ^^^ ^^^^ 
follows: 
(1) Strike out the section heading and substitute the following: 
"ACCOUNTING, VALUATION, REPORTING, AND ADMINISTRATION OF FOR-
EIGN CURRENCIES". 
^2) Add the following new subsection: 
"(d) In cases where assistance is to be furnished to any recipient cils'^lmeresr^"" 
country in furtherance of the purposes of this or any other Act on a income. 
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 pro-
visions for the receipt of interest income on the foreign currency pro-
ceeds deposited in authorized depositaries: Provided^ That whenever 
the Secretary of State determines it not to be in the national interest 
to conclude arrangements for the receipt of interest income he may 
waive the requirement thereof: Provided further, That the Secretary of 
Report to 
State, or his delegate, shall promptly make a complete report to the 
°"^'"^'*-
Congress on each such determination and the reasons therefor." 
(d) Amend section 620, which relates to prohibitions against fur- 
^^ "^^ 2^^°-
nishing assistance to Cuba and certain other countries, as follows: 
(1) Amend the section heading to read as follows: 
"PROHIBITIONS AGAINST FURNISHING ASSISTANCE.—". 
(2) Amend subsection (e) (2), which relates to the act of state 
^^ ^*^*- ^°^^-
doctrine, by inserting after the words "other right" each time they 
appear the words "to property", and by striking out ", or (3) in 
any case in which the proceedings are commenced after January 
1, 1966". 
(3) In section 620(1), which relates to the prohibition against 
7? stat. ass. 
furnishing assistance to countries which fail to enter into agree-
ments to institute the investment guaranty program and providing 
protection against certain risks, strike out "December 31, 1965" 
and substitute "December 31,1966". 
(4) At the end of such section 620, add the following new sub-
sections : 
"(n) In view of the aggression of North Vietnam, the President 
North Vietnam. 
shall consider denying assistance under this Act to any country which 
has failed to take appropriate steps, not later than sixty days after the 
date of enactment of the Foreign Assistance Act of 1965— 
" (A) to prevent ships or aircraft under its registry from trans-
porting to North Vietnam— 
"(i) any items of economic assistance, 
"(ii) any items which are, for the purposes of title I of 
the Mutual Defense Assistance Control Act of 1951, as 
^ ^^^- J'^^fj_ 
amended, arms, ammunition and implements of war, atomic leiid. 
energy materials, petroleum, transportation materials of 
660 
PUBLIC LAW 89-171-SEPT. 6, 1965 
[79 STAT. 
strategic value, or items of primary strategic significance 
used in the production of arms, ammunition, and implements 
of war, or 
"(iii) any other equipment, materials, or commodities; and 
"(B) to prevent ships or aircraft under its registry from trans-
porting any equipment, materials, or commodities from North 
Vietnam. 
U.S. fishing 
«^Q^ jj^ 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 sanc-
tion against, any United States fishing vessel on account of its fishing 
activities in international waters. The provisions of this subsection 
shall not be applicable in any case governed by international agree-
ment to which the United States is a party." 
CHAPTER 2—ADMINISTRATIVE PROVISIONS 
SEC. 302. Chapter 2 of part I I I of the Foreign Assistance Act of 
1961, as amended, which relates to administrative provisions, is 
amended as follows: 
II f^a^' ^t^^ 
(^) Amend section 622, which relates to coordination with foreign 
22 XjoC-. 2382, 
i * 
i » n 
policy, as follows: 
(1) In subsection (b), immediately after "military assistance" 
insert "(including any civic action and sales program)". 
(2) In subsection (c), immediately after "military assistance 
program" insert" (including any civic action and sales program)". 
76^stat^*262^^' 
(^) Amend section 624, which relates to statutory officers, as follows: 
22 use 2384, 
(1) lu subsectiou (b), strike out "paragraph (3) of" and "of 
the oflScers provided for in paragraphs (1) and (2) of that sub-
section", and substitute for the latter "of one or more of said 
officers". 
(2) In subsection (d), strike out "Public Law 86-735" wherever 
it appears and substitute "the Latin American Development Act, 
as amended". 
(c) Amend section 625(d), which relates to the employment of per-
sonnel, by striking out "twenty" in paragraph (2) and substituting 
"forty". 
(d) Amend section 626, which relates to experts, consultants, and 
retired officers, by redesignating subsection (d) as subsection (c). 
(e) Amend section 630, which relates to terms of detail or assign-
ment, by inserting "benefits" after "travel expenses," in paragraphs (2) 
and (4). 
(f) Amend section 631, which relates to missions and staffs abroad, 
by adding the following new subsection: 
" (d) Wherever practicable, especially in the case of the smaller pro-
grams, assistance under this Act shall be administered under the direc-
tion of the Chief of the United States Diplomatic Mission by the prin-
cipal economic officer of the mission in the case of assistance under part 
I, and by the senior military officer of the mission in the case of assist-
ance under part II." 
(g) Amend section 635(g), which relates to general authorities, by 
inserting "and sales" after "loans" in the introductory clause. 
22 use 2396. 
^j^^ Amend section 636, which relates to provisions on uses of funds, 
as follows: 
(1) In subsection (e), strike out "section 2 of the Act of July 31, 
1894, as amended (5 U.S.C. 62)" and substitute "section 301 of the 
78 Stat. 488. 
Dual Compensatlou Act (5 U.S.C. 3105)". 
22 u s e 1942 
note, 
76 Stat. 262; 
78 Stat. 1014. 
22 u s e 2385 
75 Stat. 
22 use 
22 use 
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451. 
2386 
2390 
2391 
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79 STAT. ] 
PUBLIC LAW 89-171-SEPT. 6, 1965 
661 
(2) In subsection (f), strike out "Act to provide for assistance 
in the development of Latin America and in the reconstruction of 
Chile, and for other purposes" and substitute "Latin American 
Development Act, as amended". 
jT'sttT^ig^^^' 
(i) Amend section 637(a), which relates to administrative expenses, 
22 use 1942 
by striking out "1965" and "$52,500,000" and substituting "1966" and "°t^-
"$54,240,000", respectively. 
78 stat.^ ioi4*!' 
(3) Amend section 638, which relates to Peace Corps assistance, by 
22 use 2397, 
striking out all beginning with "; or famine" and substituting a period. 
H ^^^ ,^^g^_ 
(k) Add the following new sections: 
"SEC. 639. FAMINE AND DISASTER EELIEF.—No provision of this Act 
shall be construed to prohibit assistance to any country for famine or 
disaster relief. 
"SEC. 640. MILITARY SALES.—Except as otherwise provided in part 
I I of this Act, no provision of this Act shall be construed to prohibit 2321 "^^ ^^°^' 
the sale, exchange, or the guaranty of a sale, of defense articles or 
defense services to any friendly country or international organization 
if the President shall have found, pursuant to section 503, that the 
22 use 2311. 
assisting of such country or organization will strengthen the security 
of the United States and promote world peace." 
CHAPTER 3—MISCELLANEOUS PROVISIONS 
SEC. 303. Chapter 3 of part I I I of the Foreign Assistance Act of 
1961, as amended, which relates to miscellaneous provisions, is amended 
as follows: 
(a) Amend section 642(a) (2), which relates to statutes repealed, by 
75 stau 46o. 
striking out "143," and all beginning with ": Provided,-'' up to the note. 
semicolon. 
(b) Amend section 644, which relates to definitions, as follows: 
^^ "^^ 2'*°^-
(1) In subsection (g), insert ", and not procured in anticipa-
tion of military assistance or sales requirements, or pursuant to a 
military assistance or sales order," after "United States Govern-
ment" and strike out "as grant assistance". 
(2) In subsection (m) (2), strike out "Such price shall be the 
same standard price" and substitute "Such standard price shall be 
the same price (including authorized reduced prices)". 
(3) Amend the paragraph following the numbered paragraph 
(3) in subsection (m) as follows: 
(A) In the first sentence, insert "and sales" after "Military 
assistance". 
(B) In the second proviso, strike out "by the military 
assistance program". 
(c^ Amend section 645, which relates to unexpended balances, by 
^7 ^*^^-^^o^ 
striking out "Public Law 86-735" and substituting "tlie Latin Amer-
ican Development Act, as amended,". 
(d) At the end thereof add the following new section: 
"SEC. 649. LIMITATION ON AGGREGATE ArTHORizATioN FOR USE IN 
FISCAL YEAR 1966.—Notwithstanding any other provision of this Act, 
the aggregate of the total amounts authorized to be appropriated for 
use during the fiscal year 1966 for furnishing assistance and for ad-
ministrative expenses under this Act shall not exceed $3,360,000,000." 
662 
PUBLIC LAW 89-172-SEPT. 8, 1965 
[79 STAT. 
CHAPTER 
4—AMENDMENT TO T H E 
AGRICULTURAL 
TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954 
SEC. 401. Section 107 of the Agricultural Trade Development and 
68 Stat 457; 
Asslstancc Act of 1954 is amended by adding at the end thereof the 
78 Stat, 1036. 
i? n 
• 
i 
./ 
o 
7 use 1707. 
lolJowing new paragraph: 
Sales to United 
"^o Sale Under title I of this Act shall b© made to the United Arab 
^Ttri^tlon!''"'' 
Republic unless the President determines that such sale is essential to 
7 use 1701- 
the national interest of the United States. No such sale shall be based 
^^°^- 
on the requirements of the United Arab Republic for more than one 
e^^resV° 
fiscal year. The President shall keep the Foreign Relations Com-
mittee and the Appropriations Committee of the Senate and the 
Speaker of the House of Representatives fully and currently informed 
with respect to sales made to the United Arab Republic under title 
I of this Act." 
Approved September 6, 1965. 
Public Law 89-172 
September 8, 1965 
A N A C T 
[H. R. 6007] 
'j;,, ^uiend title 10, Tnited States Code, to authorize tlie in-oinotiou of qnalitieil 
reserve officers of the Air Force to the reserve jri'iules of l)rif;ad{er general and 
major general. 
Air Force Re 
serve. 
Be }t emwfed by the Senate and House of RepreHentathes 
of the 
United States of America in Congress assembled. That title 10, L'nited 
Officer promo- 
States Code, is amended by inserting the following new section after 
ti°"s. 
section 8372: 
*
*
§ 8373. Commissioned officers: Air Force Reserve; promotion to 
brigadier general and major general 
"(a) Officers of the Air Force Reserve may be promoted to 
the reserve grades of brigadier general and major general to fill 
vacancies in those grades. 
"(b) The Secretary of the Air Force may furnish the names of 
any officers of the Air Force Reserve who ai-e assigned to the 
duties of a general officer of the next higher reserve grade, and 
who meet standards to be prescribed by tlie Secretary, to a selec-
tion board for consideration for promotion to that grade. 
"(c) Of those officers considered under subsection (b), the 
selection board shall recommend the best qualified of those whom 
it determines to meet the standards prescribed by the Secretary 
and to be fully qualified for promotion. 
"(d) The name of any officer on a recommended list on June 
30, 1964, for promotion to the reserve grade of brigadier general 
or major general under authority of the provisions of section 8v373 
of this title, which terminated July 1,1964, may be placed on the 
appropriate recommended list maintained under subsection (c) 
effective July 1, 1964, without the necessity of further selection 
board action, provided such officer is currently qualified for such 
promotion. The promotion of any such officer shall be effective 
for date of rank purposes as of .July 1,1964. 
Effective date. 
i.^^,,. .7 'fhis Act Is cffcctive .Tuly 1,1964." 
Approved September 8, 1965.