An Act making appropriations for foreign assistance and related agencies for the fiscal year ending June 30, 1962, and for other purposes
PL 87-329 (H.R.9033), enacted 09/30/1961

75 S T A T . ] 
PUBLIC LAW 87-329-SEPT. 30, 1961 
717 
September 30, 1961 
[H. R. 9033] 
Public Law 87-329 
AN ACT 
aiaking appropriations for Foreiga Assistaace and related agencies for the fiscal 
year ending June 30, 1962, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That the following g„^°"|,^^ Reut'd 
sums are appropriated, out of any money in the Treasury not other- A^encTes App'o-
vvise appropriated, for the fiscal year endmg June 30,1962, namely: 
priationAct, i962. 
TITLE I~FOREIGN ASSISTANCE 
F U N D S APPROPRIATED TO T H E PRESIDENT 
For expenses necessary to enable the President to carry out the pro-
visions of the Foreign Assistance Act of 1961, to remain available 
"**' ^" ^^*' 
until June 30, 1962, unlecs otherwise specified herein, as follows: 
ECONOMIC ASSISTANCE. 
Development loans: For expenses authorized by section 202(a), 
$1,112,500,000, to remain available until expended. 
Development grants: For expenses authorized by section 212, includ-
ing $2,800,000 for ocean freight, $2,000,000 for Atoms for Peace, and 
$22,600,000 for the malaria eradication program, $296,500,000. 
Development grants, special authorization: For assistance author-
ized by section 214(b) at the discretion of the President for an Ameri-
can sponsored school m Poland, $100,000, to be used to purchase foreign 
currencies which the Department of the Treasury may determine to 
be excess to the normal requirements of the United States. 
Surveys of investment opportunities: For expenses authorized by 
section 232j $1,500,000. 
International organizations and programs: For expenses authorized 
by section 302, $153,500,000. 
Supporting assistance: For expenses authorized by section 402, 
$425,000,000, including $15,000,000 for supporting assistance for Spain 
as authorized by section 402. 
Contingency fund: For expenses authorized by section 451(a), 
$275,000,000. 
Administrative expenses: For expenses authorized by section 637 (a), 
including the purchase of not to exceed twenty-five passenger motor 
vehicles for use outside the United States, $47,500,000. 
MILITARY ASSISTANCE 
Military assistance: For expenses authorized by section 504(a), 
including administrative expenses authorized by section 636(g)(1), 
which shall not exceed $24,500,000 for the current fiscal year, and 
purchase of passenger motor vehicles for replacement only for use 
outside the United States, $1,600,000,000: Provided, Thsit to the extent 
that these funds have not been otherwise previously programed 
amounts equivalent to the value of orders issued pursuant to the special 
authority granted in section 510(a) shall be used to reimburse the 
appropriations financing the replacement of goods or services fur-
nished pursuant to such orders. 
718 
PUBLIC LAW 87-329-SEPT. 30, 1961 
[75 ST A T . 
Ante, p. 460. 
65 Stat. 647. 
22 u s e 1515. 
68 Stat. 832. 
22 u s e 
1 7 5 1 
note. 
DEPARTMENT Or STATE 
Administrative and other expenses: For expenses authorized by 
section 637(b) of the Foreign Assistance Act of 1961 and by section 
305 of the Mutual Defense Assistance Control Act of 1951, as amended, 
$3,000,000. 
Unobligated balances (not to exceed $69,533,000) as of June 30, 
1961, of funds heretofore made available under the authority of the 
Mutual Security Act of 1954j as amended, are, except as otherwise 
provided by law, hereby contmued available for the fiscal year 1962 
for the same general purposes for which appropriated. 
68 Stat. 830. 
31 u s e 200. 
Report to C en-
gross. 
Exceptioiii 
Seating of Com-
munist e h in a i n 
U. N., opposition. 
Notification of 
Congress by 
t h e 
President. 
GENERAL PROVISIONS 
SEC. 101. Amounts certified pursuant to section 1311 of the Supple-
mental Appropriation Act, 1955, as having been obligated against 
appropriations heretofore made under the authority of the Mutual 
Security Act of 1954, as amended, for the same general purpose as any 
of the subparagraphs under "Economic Assistance" except the sub-
paragraph of this title for "Administrative expenses", are hereby 
continued available for the same period as the respective appropria-
tions in such subparagraphs for the same general purpose. 
SEC. 102. None of the funds herein appropriated (other than funds 
appropriated under the authorization for "International organizations 
and programs") shall be used to finance the construction of any new 
flood control, reclamation, or other water or related land resource 
project or program which has not met the standards and criteria used 
in determining the feasibility of flood control, reclamation and other 
water and related land resource programs and projects proposed for 
construction within the United States of America as per circular A-47 
of the Bureau of the Budget, dated December 31,1952. 
SEC. 103. Obligations made from funds herein appropriated for 
engineering and architectural fees and services to any individual or 
group of engineering and architectural firms on any one project in 
excess of $25,000 shall be reported to the Committees on Appropria-
tions of the Senate and House of Representatives at least twice 
annually. 
SEC. 104. Except for the appropriations entitled "Contingency 
fund" and "Development loans", not more than 20 per centum of any 
appropriation item made available by this title shall be obligated 
and/or reserved during the last month of availability. 
SEC. 105. None of the funds herein appropriated nor any of the 
counterpart funds generated as a result of assistance hereunder or any 
prior Act shall be used to pay pensions, annuities, retirement pay or 
adjusted service compensation for any persons heretofore or hereafter 
serving in the armed forces of any recipient country. 
SEC. 106. None of the funds herein appropriated shall be used to 
finance any of the activities under the Investment Incentive Fund 
Program. 
SEC. 107. The Congress hereby reiterates its opposition to the seating 
in the United Nations of the Communist China regime as the repre-
sentative of China, and it is hereby declared to be the continuing sense 
of the Congress that the Communist regime in China has not demon-
strated its willingness to fulfill the obligations contained in the Char-
ter of the United Nations and should not be recognized to represent 
China in the United Nations. In the event of the seating of repre-
sentatives of the Chinese Communist regime in the Security Council 
or General Assembly of the United Nations, the President is requested 
75 S T A T . ] 
PUBLIC LAW 87-329-SEPT. 30, 1961 
719 
to inform the Congress insofar as is compatible with the requirements 
of national security, of the implications of this action upon the foreign 
policy of the United States and our foreign relationships, including 
that created by membership in the United Nations, together with any 
recommendations which he may have wdth respect to the matter. 
SEC. 108. It is the sense of Congress that any attempt by foreign 
nations to create distinctions because of their race or religion among 
American citizens in the granting of personal or commercial access or 
any other rights otherwise available to United States citizens gener-
ally is repugnant to our principles; and in all negotiations between 
the United States and any foreign state arising as a result of funds 
appropriated under this title these principles snail be applied as the 
President may determine. 
SEC. 109. None of the funds provided in this title shall be available 
for assistance to any country, the government of which sells arms, 
ammunition, or implements of war to the Castro regime, or w^hich 
furnishes, by grant or loan, any military or economic aid to that 
regime, unless the President determines that the withholding of such 
assistance to such country would be contrary to the national interest. 
SEC. 110. Any obligation made from funds provided in this title 
for procurement outside the United States of any commodity in bulk U 
and in excess of $100,000 shall be reported to the Committees on 
Appropriations of the Senate and the House of Representatives at 
least twice annually: Provided^ That each such report shall state the 
reasons for which the President determined, pursuant to criteria set 
forth in section 604(a) of the Foreign Assistance Act of 1961, that 
foreign procurement will not adversely affect the economy of the 
United States. 
SEC. 111. Public Law 87-195, approved September 4, 1961, is 
amended by inserting the following after the enacting clause: "That 
this Act may be cited as 'The Foreign Assistance Act of 1961' ". 
SEC. 112. It is the sense of Congress that in the administration of 
these funds great attention and consideration should be given to those 
nations which share the view of the United States on the world crisis. 
Distinctions be-
cause of r a c e or 
religion. 
Report t o c o n -
gressional commit-
es. 
Ante, p. 439. 
Ante, p. 424. 
Administr a t i o n 
of funds. 
TITLE II—DEPARTMENT OF T H E ARMY—CIVIL 
FUNCTIONS 
RYUKYU ISLANDS, ARMY 
ADMINISTRATION 
For expenses, not otherwise provided for, necessary to meet the 
responsibilities and obligations of the United States in connection 
with the government of the Ryukyu Islands, as authorized by the Act 
of July 12, 1960 (74 Stat. 461); services as authorized by section 15 
of the Act of August 2, 1946 (5 U.S.C. 55a), of individuals not to 
exceed ten in number; not to exceed $3,500 for contingencies for the 
High Commissioner, to be expended in his discretion; hire of passenger 
motor vehicles and aircraft; purchase of four passenger motor vehicles 
for replacement only; and construction, repair, and maintenance of 
buildings, utilities, facilities, and appurtenances; $7,089,000, of which 
not to exceed $1,722,000 shall be available for administrative and 
information expenses: Provided^ That expenditures from this appro-
priation may be made outside continental United States when 
necessary to carry out its purposes, without regard to sections 355 and 
3648, Revised Statutes, as amended, section 4774(d) of title 10, United 
60 Stat. 810. 
40 u s e 255; 31 
u s e 529. 
720 
PUBLIC L
A
W 87-329-SEPT. 30, 1961 
[75 STAT. 
7
0
A Stat. 269. 
States Code, civil service or classification laws, or provisions of law 
prohibiting paymejit of any person not a citizen of the United States: 
Provided further^ That funds appropriated hereunder may be used, 
insofar as practicable, and under such rules and regulations as may be 
prescribed by the Secretary of the Army to pay ocean transportation 
charges from United States ports, including territorial ports, to ports 
in the Ryukyus for the movement of supplies donated to, or purchased 
by. United States voluntary nonprofit relief agencies registered with 
and recommended by the Advisory Committee on. Voluntary Foreign 
Aid or of relief packages consigned to individuals residing in such 
areas J Provided further^ That the President may transfer to any other 
department or agency any function or functions provided for under 
this appropriation, and there shall be transferred to any such depart-
ment or agency without reimbursement and without regard to the 
appropriation from which procured, such property as the Director of 
the Bureau of the Budget shall determine to relate primarily to any 
function or functions so transferred. 
TITLE III—EXPORT-IMPORT BANK OF WASHINGTON 
The Export-Import Bank of Washin^on is hereby authorized to 
make such expenditures within the limits of funds and borrowing 
authority available to such corporation, and in accord with law, and 
to make such contracts and commitments without regard to fiscal year 
limitations as provided by section 104 of the Government Corporation 
31 use' 849." 
Control Act, as amended, as may be necessary in carrying out the 
programs set forth in the budget for the current fiscal year for such 
corporation, except as hereinafter provided: 
LIMITATION ON OPERATING EXPENSES 
Not to exceed $1,800,000,000 (of which not to exceed $800,000,000 
shall be for development loans) shall be obligated during the current 
fiscal year for other than administrative expenses. 
LIMITATION ON ADMINISTRAIIVE EXPENSES 
Not to exceed $8,010,000 (to be computed on an accrual basis) shall 
be available during the current fiscal year for administrative expenses, 
including services as authorized by section 16 of the Act of August 2, 
«o Stat. 810. 
1946 (5 U.S.C. 66a) at rates not to exceed $76 per diem for individ-
uals, and not to exceed $9,000 for entertainment allowances for mem-
bers of the Board of Directors; and, in addition, not to exceed the 
equivalent of $200,000 of the aggregate amount of foreign currencies 
made available to the Export-Hnport Bank for loans pursuant to the 
M But. 454. 
Agricultural Trade Development and Assistance Act of 1964, as 
1691 note, ^piended. shall be available during the current fiscal year for expenses 
incurred by the Export-Import Bank incident to such loons: Provided^ 
That (1) fees or dues to international organizations of credit institu-
tions engaged in financing foreign tra^e, (2) necessary expenses 
(including special services performed on a contract or fee basis, but 
not including other personal services) in connection "with the acquisi-
tion, operation, maintenance, improvement, or disposition of any real 
or personal property belonging to the Bank or in which it has an 
76 S T A T . ] 
PUBLIC LAW 87-329-SEPT. 30, 1961 
interest, including expenses of collections of pledged collateral, or the 
investigation or appraisal of any property in respect to which an 
application for a loan has been made, and (3) expenses (other than 
internal expenses of the Bank) incurred in connection with the issu-
ance and servicing of guarantees, insurance, and reinsurance shall be 
•''* considered as nonadministrative expenses for the purposes hereof. 
721 
TITLE IV—TREASUEY DEPARTMENT 
INVESTTMENT IN INTER-AMERICAN DEVELOPMENT BANK 
For payment of subscriptions to the Inter-American Development 
Bank, to remain available until expended, $110,000,000 of which 
$60,000,000 is for the second installment on paid-in capital stock and 
$50,000,000 is for payment of the second installment of the subscrip-
tion of the United States to the fund for special operations. 
SUBSCRIPTION TO THE INTERNATIONAL DEVELOPMENT ASSOCIATION 
For payment of the second installment of the subscription of the 
United 
States to the International 
Development 
Association, 
$61,656,000, to remain available until expended. 
TITLE V—PEACE CORPS 
FUNDS APFROPRIATED TO THE PRESIDENT 
For expenses necessary to enable the President to carry out the pro-
visions of the Peace Corps Act, including purchase of not to exceed 
sixteen passenger motor vehicles for use outside the United States, 
$30,000,000. 
TITLE VI—GENERAL PROVISIONS 
SEC. 601. No part of any appropriation contained in this Act shall 
be used for publicity or propaganda purposes within the United States 
not heretofore authorized by the Congress. 
SEC. 602. None of the funds herein appropriated shall be used for 
expenses of the Inspector General, Foreign Assistance, after the 
expiration of the thirty-five day period which begins on the date the 
General Accounting Office or any committee of the Congress, or any 
duly authorized subcommittee thereof, charged with considering 
foreign assistance legislation, appropriations, or expenditures, has 
delivered to the office of the Inspector General, Foreign Assistance, a 
written request that it be furnished any document, paper, communica-
tion, audit, review, finding, recommendation, report, or other material 
in the custody or control of the Inspector General, Foreign Assistance, 
relating to any review, inspection, or audit arranged for, directed, or 
conducted by him, unless and until there has been furnished to the 
General Accounting Office or to such committee or subcommittee, as 
the case may be, (A) the document, paper, communication, audit, 
review, finding, recommendation, report, or other material so requested 
or (B) a certification by the President, personally, that he has forbid-
den the furnishing thereof pursuant to such request and his reason for 
so doing. 
SEC. 603. This Act may be cited as the "Foreign Assistance and 
Related Agencies Appropriation Act, 1962". 
Approved September 30, 1961. 
Ante, p. 612. 
Restriction* 
use of funds. 
Short title.