An Act to promote the foreign policy, security, and general welfare of the United States by assisting peoples of the world to achieve economic development within a framework of democratic economic, social, and political institutions, and for other purposes
PL 91-175 (H.R.14580), enacted 12/30/1969

83 STAT. ] 
PUBLIC LAW 91-175-DEC. 30, 1969 
805 
Public Law 91-175 
AN ACT 
December 30, 1969 
To promote the foreign policy, security, and general welfare of the United States 
[H. R. 1458O] 
by assisting peoples of the world to achieve economic development within a 
framework of democratic economic, social, and political institutions, and for 
other purposes. 
Foreign Assiist-
ance Act of 1969. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That this Act may be 
cited as the "Foreign Assistance Act of 1969". 
PART I—ECONOMIC ASSISTANCE 
DEVELOPMENT LOAN FUND 
SEC. 101. (a) Section 202(a) of the Foreimi Assistance Act of 1961, 
^2 stat. 960. 
3'elating to autliorization, is amended— 
(1) by striking out "and" after "fiscal year 1968,''; 
(2) by inserting after "fiscal year 1969," the following: "$350,-
000,000 for the fiscal year 1970, and $350,000,000 for the fiscal 
year 1971,"; and 
(3) by striking out "the fiscal year ending June 30, 1969" in 
the second proviso and inserting in lieu thereof "each of the fiscal 
years ending June 30,1970, and June 30,1971". 
(b) Section 203 of such Act, relating to fiscal provisions, is amended 
II f*^'' ^27; 
to read as loilows: 
"SEC. 203. FISCAL PROVISIONS.—Dollar receipts from loans made pur-
suant to this part and from loans made under the Mutual Security Act 
of 1954, as amended, are authorized to l)e made available for the fiscal ^^ ^^'^ ijsl)-
year 1970 and for the fiscal year 1971 for use for the purposes of this 1951. 
title, for loans under title VI, and for the purposes of section 232. Such 
^^ stat. 438, 
receipts and other funds made available under this section shall remain 
post. p. sio.' 
available until expended." 
TECHNICAL COOPERATION AND DEVELOPMENT GRANTS 
SEC. 102. Section 212 of such Act, relating to autliorization, is o2^st^t^96t)*^' 
amended by striking out "$200,000,000 for the fiscal year 1969" and 
22 use 2172. 
inserting in lieu thereof "$183,500,000 for the fiscal year 1970, and 
$183,500,000 for the fiscal year 1971". 
AMERICAN SCHOOLS AND HOSPITALS ABROAD 
SEC. 103. Section 214 of such Act, relating to American schools and 
^^ stau 96o. 
hospitals abroad, is amended— 
(1) by striking out of subsection 
(c) "fiscal year 1969, 
$14,600,000, to remain available until expended." and inserting in 
lieu thereof "fiscal year 1970, $25,900,000, and for the fiscal year 
1971, $12,900,000, which amounts are authorized to remain avail-
able until expended. Amounts appropriated under this subsection 
for the fiscal year 1970 shall be available for expenditure solel}^ 
in accordance with the allocations set forth on pages 25 and 26 of 
House Report No. 91-611 and on page 23 of Senate Report No. 
91-603."; 
(2) by striking out_ of subsection (d) "fiscal year 1969, 
8° stat. 793. 
$5,100,000" and inserting in lieu thereof "fiscal year 1970, 
$3,000,000"; and 
806 
PUBLIC LAW 91-175-DEC. 30, 1969 
[83 STAT. 
(3) by adding at the end of subsection (d) the following new 
sentence: "Foreign currencies appropriated under this subsection 
shall be available for expenditure solely in accordance with the 
allocation set forth on page 23 of Senate Report No. 91-603.". 
75 Stat. 427; 
81 Stat. 450. 
22 u s e 2171-
2178. 
Construction 
and operation. 
U.S. costs. 
PROTOTYPE DESALTING P L A N T ; PROGRAMS FOR PEACEFUL 
COMMUNICATION 
SEC. 104. Title I I of chapter 2 of part I, relating to technical 
cooperation and development grants, is amended by adding at the end 
thereof the following new sections: 
"SEC, 219. PROTOTYPE DESALTING PLANT.— (a) In furtherance of 
the purposes of this part and for the purpose of improving existing, 
and developing and advancing new, technology and experience in the 
design, construction, and operation of large-scale desalting plants of 
advanced concepts which will contribute materially to low-cost desali-
nation in all countries, including the United States, the President, if 
he determines it to be feasible, is authorized to participate in the 
development of a large-scale water treatment and desalting prototype 
plant and necessary appurtenances to be constructed in Israel as an 
integral part of a dual-purpose power generating and desalting proj-
ect. Such participation shall include financial, technical, and such 
other assistance as the President deems appropriate to provide for 
the study, design, construction, and, for a limited demonstration 
period of not to exceed five years, operation and maintenance of the 
water treatment and desalting facilities of the dual-purpose project. 
"(b) Any agreement entered into under subsection (a) of this sec-
tion shall include such terms and conditions as the President deems 
appropriate to insure, among other things, that all information, prod-
ucts, uses, processes, patents, and other developments obtained or uti-
lized in the development of this prototype plant will be available 
without further cost to the United States for the use and benefit of the 
United States throughout the world, and to insure that the United 
States, its officers, and employees have a permanent right to review 
data and have access to such plant for the purpose of observing its 
operations and improving science and technology in the field of desali-
nation. 
"(c) In carrying out the provisions of this section, the President 
may enter into contracts with public or private agencies and with any 
person without regard to sections 3648 and 3709 of the Revised Stat-
utes of the TTnited States (31 U.S.C. 529 and 41 U.S.C. 5). 
"(d) Nothing in this section shall be construed as intending to 
deprive the owner of any background patent or any right which such 
owner may have under that patent. 
"(e) In carrying out the provisions of this section, the President 
may utilize the personnel, services, and facilities of any Federal 
agency. 
"(f) The United States costs, other than its administrative costs, 
for the study, design, construction, and operation of a prototype plant 
under this section shall not exceed either 50 per centum of the total 
capital costs of the facilities associated with the production of water, 
and 50 per centum of the operation and maintenance costs for the 
demonstration period, or $20,000,000, whichever is less. There are 
authorized to be appropriated, subject to the limitations of this sub-
section, such sums as may be necessary to carry out the provisions of 
this section, including administrative costs thereof. Such sums are 
authorized to remain available until expended. 
83 STAT. ] 
PUBLIC LAW 91-175-DEC. 30, 1969 
807 
" (g) No funds appropriated for the Office of Saline Water pursuant 
to the appropriation authorized by the Act of July 11, 1969 (83 Stat. 
45, Public Law 91-43), or prior authorization Acts, shall be used to 
carry out the purposes of this section. 
"SEC. 220. PROGRAMS FOR PEACEruL COMMUNICATION.— (a) 
The 
President is authorized to use funds made available under section 212 
^"'=' P* ^°5. 
to carry out programs of peaceful communications which make use of 
television and related technologies, including satellite transmissions, 
for educational, health, agricultural, and community development pur-
poses in the less developed countries. 
"(b) In carrying out programs in the fields of education, health, 
agriculture, and community development, the agency primarily 
responsible for part I shall, to the extent possible, assist the develop- g/statf-j/s^^' 
ing countries with research, training, planning assistance, and project 
22 use ai'si. 
support in the use of television and related technologies, including 
satellite transmissions. The agency shall make maximum use of exist-
ing satellite capabilities, including the facilities of the International 
Telecommunications Satellite Consortium. 
"(c) In implementing activities under this section, the agency pri-
marily responsible for part I shall coordinate closely with Federal, 
State, and local agencies and with nongovernmental educational, 
health, and agricultural institutions and associations within the United 
States." 
HOUSING GUARANTIES; OVERSEAS PRIVATE INVESTMENT CORPORATION 
SEC. 105. Chapter 2 of part I of such Act, relating to development 
7^ stat. 429, 
assistance, is amended by striking out title I I I and title IV and 
22usc2i8i, 
inserting in lieu thereof the following new titles: 
2191. 
"TITLE III—HOUSING GUARANTIES 
"SEC. 221. WORLDWIDE HOUSING GUARANTIES.—In order to facilitate 
and increase the participation of private enterprise in furthering the 
development of the economic resources and productive capacities of 
less developed friendly countries and areas, and promote the develop-
ment of thrift and credit institutions engaged in programs of mobiliz-
ing local savings for financing the construction of self-liquidating 
housing projects and related community facilities, the President is 
authorized to issue guaranties, on such terms and conditions as he shall 
determine, to eligible investors as defined in section 238(c), assuring 
^°®'' P* S^''* 
against loss of loan investments for self-liquidating housing projects. 
The total face amount of guaranties issued hereunder, outstanding 
at any one time, shall not exceed $130,000,000. Such guaranties shall 
be issued under the conditions set forth in section 222 (b) and section 
223. 
"SEC. 222. HOUSING PROJECTS IN LATIN AMERICAN COUNTRIES.—(a) 
The President shall assist in the development in the American Repub-
lics of self-liquidating housing projects, the development of in-
stitutions 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 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 
808 
PUBLIC LAW 91-175-DEC. 30, 1969 
[83 STAT. 
Post, p. 816. 
shall determine, to eligible investors, as defined in section 238(c), 
assuring against loss of loan investment made by such investors in— 
"(1) private housing projects in Latin America of types simi-
lar to those insured by the Department of Housing and Urban 
Development 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 
families 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 pre-
scribed by the President; 
"(4) housing projects in Latin America which will promote 
the development of institutions important to the success of the 
Alliance 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 
$8,500. 
"(c) The total face amount of guaranties issued hereunder or here-
tofore under Latin American housing guaranty authority repealed by 
the Foreign Assistance Act of 1969, outstanding at any one time, shall 
not exceed $550,000,000: Provided, That $325,000,000 of such guar-
anties may be used only for the purposes of subsection (b) (1). 
"SEC. 223. GENERAL PROVISIONS.— (a) A fee shall be charged for 
each guaranty issued under section 221 or section 222 in an amount to 
be determined by the President. In the event the fee to be charged 
for such type of guaranty is reduced, fees to be paid under existmg 
contracts for the same type of guaranty may be similarly reduced. 
"(b) The amount of $50,000,000 of fees accunndated under prior 
investment guaranty provisions repealed by the Foreign Assistance 
Act of 1969, together with all fees collected in connection with 
guaranties issued hereunder, shall be available for meeting necessary 
administrative and operating expenses of carrying out the provisions 
of this title and of prior housing guaranty provisions repealed by the 
Foreign Assistance Act of 1969 (including, but not limited to expenses 
pertaining to personnel, supplies, and printing), subject to such 
limitations as may be imposed in annual appropriation Acts; for 
meeting management and custodial costs incurred with respect to 
currencies or other assets acquired under guaranties made pursuant 
to section 221 or section 222 or heretofore pursuant to prior Latin 
American and other housing guaranty authorities repealed by the 
Foreign Assistance Act of 1969; and to pay the cost of investigating 
nnd adjusting (including costs of arbitration) claims under such 
guaranties; and shall be available for expenditure in discharge of 
liabilities under such guaranties until such time as all such property 
has been disposed of and all such liabilities have been discharged 
or have expired, or until all such fees have been expended in accord-
ance with the provisions of this subsection. 
"(c) Any payments made to discharge liabilities under guaranties 
issued under section 221 or section 222 or heretofore under prior Latin 
American or other housing guaranty authorities repealed by the 
Foreign Assistance Act of 1969, shall be paid first out of fees referred 
to in subsection (b) (excluding amounts required for purposes other 
83 STAT. ] 
PUBLIC LAW 91-175-DEC. 30, 1969 
809 
than the discharge of liabilities under guaranties) as long as such fees 
are available, and thereafter shall be paid out of funds, if any, realized 
from the sale of currencies or other assets acquired in connection with 
any payment made to discharge liabilities under such guaranties as 
long as funds are available, and finally out of funds hereafter made 
available pursuant to subsection (e). 
"(d) All guaranties issued under section 221 or section 222 or here-
tofore under prior Latin American or other housing guaranty author-
ity repealed by the Foreign Assistance Act of 1969 shall constitute 
obligations, in accordance with the terms of such guaranties, of the 
United States of America and the full faith and credit of the United 
States of America is hereby pledged for the full payment and per-
formance of such obligations. 
" (e) There is hereby authorized to be appropriated to the President 
such amounts, to remain available until expended, as may be necessary 
from time to time to carry out the purposes of this title. 
'*(f) In the case of any loan investment guaranteed under section 
interest rate. 
221 or section 222, the agency primarily responsible for administering 
part I shall prescribe the maximum rate of interest allowable to the 
75 stat. 424; 
eligible investor, which maximum rate shall not be less than one-half 
22 use 2151. 
of 1 per centum above the then current rate of interest applicable to 
housing mortgages insured by the Department of Housing and Urban 
Development. In no event shall the agency prescribe a maximum allow-
able rate of interest which exceeds by more than 1 per centum the then 
current rate of interest applicable to housing mortgages insured by 
such Department. The maximum allowable rate of interest under this 
subsection shall be prescribed by the agency as of the date the project 
covered by the investment is officially authorized and, prior to the 
execution of the contract, the agency may amend such rate at its dis-
cretion, consistent with the provisions of subsection (f). 
"(g) Housing guaranties committed, authorized, or outstanding 
under prior housing guaranty authorities repealed by the Foreign 
Assistance Act of 1969 shall continue subject to provisions of law 
originally applicable thereto and fees collected hereafter with respect 
to such guaranties shall be available for the purposes specified in 
subsection (b). 
"(h) No payment may be made under any guaranty issued pursuant 
to this title for any loss arising out of fraud or misrepresentation for 
which the party seeking payment is responsible, 
"(i) The authority of section 221 and section 222 shall continue 
Expiration o
f 
until June 30,1972. 
authority. 
"TITLE IV—OVERSEAS PRIVATE INVESTMENT CORPORATION 
"SEC. 231. CREATION, PURPOSE, AND POLICY.—To mobilize and facili-
tate the participation of United States private capital and skills in 
the economic and social progress of less developed friendly countries 
and areas, thereby complementing the development assistance objec-
tives of the United States, there is hereby created the Overseas Private 
Investment Corporation (hereinafter called the 'Corporation'), which 
shall be an agency of the United States under the policy guidance of 
the Secretary of State. 
"In carrying out its purpose, the Corporation, utilizing broad 
criteria, shall undertake— 
"(a) to conduct its financing operations on a self-sustaining 
basis, taking into account the economic and financial soundness 
of projects and the availability of financing from other sources 
on appropriate terms; 
810 
PUBLIC LAW 91-175-DEC. 30, 1969 
[83 STAT. 
"(b) to utilize private credit and investment institutions and 
the Corporation's guaranty authority as the principal means of 
mobilizing capital investment funds; 
"(c) to broaden private participation and revolve its funds 
through selling its direct investments to private investors when-
ever it can appropriately do so on satisfactory terms; 
"(d) to conduct its insurance operations with due regard to 
principles of risk management including, w'hen appropriate, 
eiforts to share its insurance risks; 
"(e) to utilize, to the maximum practicable extent consistent 
with the accomplishment of its purpose, the resources and skills 
of small business and to provide facilities to encourage its full 
participation in the programs of the Corporation; 
"(f) to encourage and support only those private investments 
in less developed friendly countries and areas which are sensitive 
and responsive to the special needs and requirements of their 
economies, and which contribute to the social and economic 
development of their people; 
"(g) to consider in the conduct of its operations the extent to 
which less developed country governments are receptive to pri-
vate enterprise, domestic and foreign, and their willingness and 
ability to maintain conditions w^hich enable private enterprise 
to make its full contribution to the development process; 
"(h) to foster private initiative and competition and discour-
age monopolistic practices; 
"(i) to further to the greatest degree possible, in a manner 
consistent with its goals, the balance-of-payments objectives of 
the United States; 
"(j) to conduct its activities in consonance with the activities 
of the agency primarily responsible for administering part I and 
the international trade, investment, and financial policies of the 
United States Government; and 
"(k) to advise and assist, within its field of competence, inter-
ested agencies of the United States and other organizations, both 
public and private, national and international, with respect to 
projects and programs relating to the development of private 
enterprise in less developed countries and areas. 
"SEC. 232. CAPITAL OF THE CORPORATION.—The President is author-
ized to pay in as capital of the Corporation, out of dollar receipts 
made available through the appropriation process from loans made 
pursuant to this part and from loans made under the Mutual Security 
68 Stat. 832. 
Act of 1954, as amended, for the fiscal year 1970 not to exceed $20,000,-
000 and for the fiscal year 1971 not to exceed $20,000,000. Upon the 
payment of such capital by the President, the Corporation shall issue 
an equivalent amount of capital stock to the Secretary of the Treasury. 
"SEC. 233. ORCXANIZATION AND MANAGEMENT.—(a) 
STRUCTURE OF 
THE CORPORATION.—The Corporation shall have a Board of Directors, 
a President, an Executive Vice President, and such other officers and 
staff as the Board of Directors may determine. 
"(b) BOARD OF DIRECTORS.—All powers of the Corporation shall 
vest in and be exercised by or under the authority of its Board of 
Directors ('the Board') which shall consist of eleven Directors, in-
cluding the Chairman, with six Directors constituting a. quorum for 
the transaction of business. The Administrator of the Agency for 
International Development shall be the Chairman of the Board, ex 
Appointments 
officio. Six Dlrcctors (other than the President of the Corporation, 
appointed pursuant to subsection (c) who shall also serve as a Di-
rector) shall be appointed by the President of the United States, by 
22 u s e 1750-
1951 
by President. 
83 STAT. ] 
PUBLIC LAW 91-175-DEC. 30, 1969 
811 
and with the advice and consent of the Senate, and shall not be officials 
or employees of the Government of the United States. At least one 
of the six Directors appointed under the preceding sentence shall be 
experienced in small business, one in organized labor, and one in 
cooperati^es. Each such Director shall be appointed for a term of no 
more than three years. The terms of no more than two such Directors 
shall expire in any one year. Such Directors shall serve until their 
successors are appointed and qualified and may be reappointed. 
"The other Directors shall be officials of the Government of the 
United States, designated by and serving at the pleasure of the Presi-
dent of the United States. 
"All Directors who are not officers of the Corporation or officials 
of the Government of the United States shall be compensated at a rate 
equivalent to that of level IV of the Executive Schedule (5 U.S.C 
5315) when actually engaged in the business of the Corporation and 
may be paid per diem in lieu of subsistence at the applicable rate pre-
scribed in the standardized Government travel regulations, as 
amended from time to time, wliile away from their homes or usual 
places of business. 
"(c) PRESIDENT OF THE CORPORATION.—The President of the Cor-
poration shall be appointed by the President of the Tmited States, by 
and with the advice and consent of the Senate, and shall serve at the 
pleasure of the President. In making such appointment, the President 
shall take into account private business experience of the appointee. 
The President of the Corporation shall be its Chief Executive Officer 
and responsible for the operations and management of the Corpora-
tion, subject to bylaws and policies established by the Board. 
"(d) OFFICERS AND STAFF.—The Executive Vice President of the 
Corporation shall be appointed by the President of the United States, 
by and wath the advice and consent of the Senate, and shall serve at 
the pleasure of the President. Other officers, attorneys, employees, and 
agents shall be selected and appointed by the Corporation, and shall 
be vested with such powers and duties as the Corporation may deter-
mine. Of such persons employed by the Corporation, not to exceed 
twenty may be appointed, compensated, or removed without regard 
to the civil service laws and regulations: Provided^ That under such 
regulations as the President of the United States may prescribe, 
officers and employees of the United States Government who are 
appointed to any of the above positions may be entitled, upon removal 
from such position, except for cause, to reinstatement to the position 
occupied at the time of appointment or to a position of comparable 
grade and salary. Such positions shall be in addition to those other-
wise authorized by law, including those authorized by section 5108 
of title 5 of the United States Code. 
"SEC. 234. INVESTMENT INCENTIVE PROGRAMS.—The Corporation is 
hereby authorized to do the following: 
"(a) INVESTMENT INSURANCE.— (1) To issue insurance, upon such 
terms and conditions as the Corporation may determine, to eligible 
investors assuring protection in whole or in part against any or all of 
the following risks with respect to projects which the Corporation has 
approved— 
"(_A) inability to convert into United States dollars other cur-
rencies, or credits in such currencies, received as earnings or profits 
from the approved project, as repayment or return of the invest-
ment therein, in whole or in part, or as compensation for the sale 
or disposition of all or any part thereof; 
Terms of office. 
Post, p. 864. 
Appointment 
by President. 
80 Stat. 453, 
812 
PUBLIC LAW 91-175-DEC. 30, 1969 
[83 STAT. 
"(B) loss of investment, hi whole or hi part, m the approved 
project due to expropriation or confiscation by action of a foreign 
government; and 
" (C) loss due to Avar, revolution, or insurrection. 
"(2) Recognizing that major private investments in less developed 
friendly countries or areas are often made by enterprises in which there 
in multinational participation, including significant United States 
private participation, tlie Corporation may make such arrangements 
with foreign governments (including agencies, instrumentalities, or 
political subdivisions thereof) or with multilateral organizations for 
sharing liabilities assumed under investment insurance for such invest-
ments and may in connection therewith issue insurance to investors not 
otherwise eligible hereunder: Provided^ however^ That liabilities 
assumed by the Corporation under the authority of this subsection 
shall be consistent with the purposes of this title and that the maxi-
mum share of liabilities so assumed shall not exceed the proportionate 
participation by eligible investors in the total project financing. 
" (3) Not more than 10 per centum of the total face amount of invest-
ment insurance which the Corporation is authorized to issue under this 
subsection shall be issued to a single investor. 
"(b) INVESTMENT (IUARANTIES.—To issue to eligible investors guar-
anties of loans and other investments made by such investors assuring 
against loss due to such risks and upon such terms and conditions as 
the Corporation may determine: Provided^ hoioever^ That such guar-
anties on other than loan investments shall not exceed 75 per centum of 
such investment: Provided further^ That except for loan investments 
for credit unions made by eligible credit unions or credit union 
associations, the aggregate amount of investment (exclusive of inter-
est and earnings) so guaranteed with respect to any project shall not 
exceed, at the time of issuance of any such guaranty, 75 per centum 
of the total investment committed to any such project as determined 
by the Corporation, whicli determination shall be conclusive for 
purposes of the Corporation's authority to issue any such guaranty: 
Provided further^ That not more than 10 per centum of the total face 
amount of investment guaranties which the Corporation is authorized 
to issue under this subsection shall be issued to a single investor. 
"(c) DIRECT INVESTMENT.—To make loans in United States dol-
lars repayable in dollars or loans in foreign currencies (including, 
without regard to section 1415 of the Supplemental Appropriation 
31 use 12^' 
"'^^^' ^^^^5 ^wch. foreign currencies which the Secretary of the Treasury 
may determine to be excess to the normal requirements of the United 
States and the Director of the Bureau of the Budget may allocate) 
to firms privately owned or of mixed private and public ownership 
upon such terms and conditions as the Corporation may determine. 
The Cor])oration may not purchase or invest in any stock in any other 
corporation, except that it may (1) accept as evidence of indebtedness 
debt securities convertible to stock, but such debt securities shall not 
be converted to stock while held by the Corporation, and (2) acquire 
stock through the enforcement of any lien or pledge or otherwise to 
satisfy a previously contracted indebtedness which would otherwise 
be in default, or as the result of any payment under any contract of 
insurance or guaranty. The Corporation shall dispose of any stock it 
may so acquire as soon as reasonably feasible under the circumstances 
then pertaining. 
"No loans shall be made under this section to finance operations for 
mining or other extraction of any deposit of ore, oil, gas, or other 
mineral. 
83 STAT. ] 
PUBLIC LAW 91-175-DEC. 30, 1969 
813 
'•(d) 
IxvEST:kiKXT ExcouRACiEMEXT.—To initiate and 
support 
through financial participation, incentive grant, or otherwise, and on 
such terms and conditions as tlie Corporation may determine, the 
identification, assessment, surveying and promotion of private invest-
ment opportunities, utilizing wherever feasible and effective the 
facilities of private organizations or private investors: ProvldecL 
however. That the Corporation shall not finance surveys to ascertain 
the existence, location, extent or quality, or to determine the feasibil-
ity of undertaking operations for mining or other extraction, of any 
deposit of ore, oil, gas, or other mineral. In carrying out this author-
ity, the Corporation shall coordinate with such investment promotion 
activities as are carried out by the Department of Commerce. 
"'(e) SPECIAL ACTIVITIES.—To administer and manage special proj-
ects and programs, including programs of financial and advisory sup-
port w^hich provide private technical, professional, or managerial 
assistance in the development of human resources, skills, technology, 
capital savings and intermediate financial and investment institutions 
and cooperatives. The funds for these projects and programs may, 
with the Corporation's concurrence, be transferred to it for such pur-
poses under the authority of section 682(a) or from other sources, 
public or private. 
"SEC. 235. ISSUING AUTHORITY, DIRECT IXVESTMEXT FUX'D AND 
RESERVES.— (a) (1) The maximum contingent liability outstanding at 
any one time pursuant to insurance issued under section 234(a) shall 
not exceed $7,500,000,000. 
" (2) The maximum contingent liability outstanding at any one time 
pursuant to guaranties issued under section 234(b) shall not exceed 
in the aggregate $750,000,000, of which guaranties of credit union 
investment shall not exceed $1,250,000: Provided., That the Corpora-
tion shall not make any commitment to issue any guaranty which 
would result in a fractional reserve less than 25 per centum of the 
maximum contingent liability then outstanding against guaranties 
issued or commitments made pursuant to section 234(b) or similar 
predecessor guaranty authority. 
"(3) The Congress, in considering the budget programs trans-
mitted by the President for the (\)rporation, pursuant to section 
104 of the Government Corporation Control Act, as amended, may 
limit the obligations and contingent liabilities to be undertaken under 
section 234 (a) and (b) as well as the use of funds for operating and 
administrative expenses. 
''(4) The authority of section 234 (a) and (b) shall continue until 
June 30,1974. 
"(b) There shall be established a revolving fund, known as the 
Direct Investment Fund, to be held by the Corporation. Such fund 
shall consist initially of amounts made available under section 232, 
shall be available for the purposes authorized under section 234(c), 
shall be charged with realized losses and credited with realized gains 
and shall be credited with such additional sums as may be transferred 
to it under the provisions of section 236. 
"(c) There shall be established in the Treasury of the United 
States an insurance and guaranty fund, which shall have separate 
accounts to be known as the Insurance Reserve and the Guaranty Re-
serve, which reserves shall be available for discharge of liabilities, as 
provided in section 235(d), until such time as all such liabilities have 
been discharged or have expired or until all such reserves have been 
expended in accordance with the provisions of this section. Such 
fund shall be funded by: (1) the funds heretofore available to dis-
charge liabilities under predecessor guaranty authority (including 
75 Stat. 453. 
22 u s e 2392. 
61 Stat. 584. 
31 u s e 849. 
Expiration of 
authority. 
814 
PUBLIC LAW 91-175-DEC. 30, 1969 
[83 STAT. 
Fees and 
revenues. 
Appropriation. 
housing guaranty authorities), less both the amount made available 
for housing guaranty programs pursuant to section 223(b) and the 
amount made available to the Corporation pursuant to section 234 
(e) ; and (2) such sums as shall be appropriated pursuant to section 
235(f) for such purpose. The allocation of such funds to each such 
reserve shall be determined by the Board after consultation with the 
Secretary of the Treasury. Additional amounts may thereafter be 
transferred to such reserves pursuant to section 236. 
"(d) Any payments made to discharge liabilities under investment 
insurance issued under section 234(a) or under similar predecessor 
guaranty authority shall be paid first out of the Insurance Reserve, 
as long as such reserve remains available, and thereafter out of fvinds 
made available pursuant to section 235(f). Any payments made to 
discharge liabilities under guaranties issued under section 234(b) or 
under similar predecessor guaranty authority shall be paid first out 
of the (xuaranty Reserve as long as such reserve remains avail-
able, and thereafter out of funds made available pursuant to section 
235(f). 
"(e) There is hereby authorized to be transferred to the Corpora-
tion at its call, for the purposes specified in section 236, all fees and 
other revenues collected under predecessor guaranty authority from 
December 31, 1968, available as of the date of such transfer. 
"(f) There is hereby authorized to be appropriated to the Corpora-
tion, to remain available until expended, such amounts as may be 
necessary from time to time to replenish or increase the insurance 
and guaranty fund or to discharge the liabilities under insurance and 
guaranties issued by the Corporation or issued under predecessor 
guaranty authority. 
"SEC. 236. INCOME AXD REVENUES.—In order to carry out the pur-
poses of the (\)rporation, all revenues and income transferred to or 
earned by the Corporation, from whatever source derived, shall be 
held by the (Corporation and shall be available to carry out its pur-
poses, including without limitation— 
"(a) payment of all expenses of the Corporation, including 
investment promotion expenses; 
"(b) transfers and additions to the insurance or guaranty re-
serves, the Direct Investment Fund established pursuant to sec-
tion 235, and such other funds or reserves as the Corporation may 
establish, at such time and in such amounts as the Board may 
determine; and 
"(c) payment of dividends, on capital stock, which shall con-
sist of and be paid from net earnings of the Corporation after 
payments, transfers, and additions under subsections (a) and (b) 
hereof. 
"SEC. 237. GENERAL PROVISIONS RELA'nN(; TO INSURANCE AND GUAR-
ANTY PROGRAMS.— (a) Insurance and guaranties issued under this title 
shall cover investment made in connection with projects in any less 
developed friendly country or area with tlie government of which the 
President of the ITnited States has agreed to institute a program for 
insurance or guaranties. 
"(b) The Corporation shall determine that suitable arrangements 
exist for protecting the interest of the Corporation in connection with 
any insurance or guaranty issued under this title, including arrange-
ments concerning ownership, use, and disposition of the currency, 
credits, assets, or investments on account of which payment under such 
insurance or guaranty is to be made, and any right, title, claim, or 
cause of action existing in connection therewith. 
71 
22 
note. 
68 
22 
note. 
Stat. 
use 
Stat. 
use 
357. 
1872 
84(5. 
1933 
Insurance fees 
83 STAT. ] 
PUBLIC LAW 91-175-DEC. 30, 1969 
815 
"(c) All guaninties issued prior to July 1, 1956, all guaranties 
issued under sections 202(b) and 413(b) of the Mutual Security Act 
of 1954, as amended, all guaranties heretofore issued pursuant to prior 
guaranty authorities repealed by the Foreign Assistance Act of 1969, 
and all insurance and guaranties issued pursuant to this title shall 
constitute obligations, in accordance with the terms of such insurance 
or guaranties, of the United States of America and the full faith and 
credit of the United States of America is hereby pledged for the full 
payment and performance of such obligations. 
"(d) Fees shall be charged for insurance and guaranty coverage in 
amounts to be determined by the Corporation. In the event fees to be 
charged for investment insurance or guaranties are reduced, fees to be 
paid under existing contracts for the same type of guaranties or in-
surance and for similar guaranties issued under predecessor guaranty 
authority may be reduced. 
" (e) No insurance or guaranty of any equity investment shall extend 
beyond twenty years from the date of issuance. 
"(f) No insurance or guaranty issued under this title shall exceed 
the dollar value, as of the date of the investment, of the investment 
made in the y^roject with the approval of the Corporation plus interest, 
earnings or profits actually accrued on said investment to the extent 
provided by such insurance or guaranty. 
" (g) No payment may be made under any guaranty issued pursuant 
to this title for any loss arising out of fraud or misrepresentation for 
which the party seeking payment is responsible. 
"(h) Insurance or guaranties of a loan or equity investment of an 
eligible investor in a foreign bank, finance company, or other credit 
institution shall extend only to such loan or equity investment and not 
to any individual loan or ecpiity investment made by such foreign bank, 
finance company, or other credit institution. 
"(i) (^laiins arising as a result of insurance or guaranty operations 
eiaims settle-
under this title or under i)redecessor guaranty authority may be settled, 
and disputes arising as a result thereof may be arbitrated with the con-
sent of the Darties, on such terms and conditions as the Corporation 
may determine. Payment made pursuant to any such settlement, or as a 
result of an arbitration award, shall be final and conclusive notwith-
standing any other ])rovisi(m of law. 
"(j) Each guaranty contract executed by such officer or officers as 
may be designated by the Board shall be conclusively presumed to be 
issued in compliance wdth the requirements of this Act. 
"(k) In making a determination to issue insurance or a guaranty 
under this title, the Corporation shall consider the possible adverse 
effect of the dollar investment under such insurance or guaranty upon 
the balance of payments of the United States. 
"SEC. 238. Dp:FiN'rriONS.—As used in this title— 
"(a) the term 'investment' includes any contribution of funds, 
commodities, services, patents, processes, or techniques, in the 
form of (1) a loan or loans to an approved project, (2) the pur-
chase of a share of ownership in any such project, (3) participa-
tion in royalties, earnings, or profits of any such project, and (4) 
the furnishing of commodities or services pursuant to a lease or 
other contract; 
"(b) the term 'expro]iriation' includes, but is not limited to, 
any abrogation, repudiation, or impairment by a foreign govern-
ment of its own contract with an investor with respect to a proj-
ect, where such abrogation, repudiation, or impairment is not 
caused by the investor's own fault or misconduct, and materially 
adversely affects the continued operation of the project; 
ment. 
816 
PUBLIC LAW 91-175-DEC. 30, 1969 
[83 STAT. 
71 Stat. 357. 
22 u s e 1872 
note. 
68 Stat. 846. 
22 u s e 1933 
note. 
62 Stat. 143; 
64 Stat. 198. 
22 u s e 1509 
note. 
59 Stat. 597; 
61 Stat. 584. 
31 u s e 841 
note. 
Corporation 
powers. 
"{<.') the term 'eligible investor' means: (1) L'nited States citi-
zens; (2) corporations, partnerships, or other associations includ-
ing nonprofit associations, created under the laws of the United 
States or any State or territory thereof and substantially bene-
ficially owned by L^nited States citizens: and (3) foreign corpora-
tions, partnerships, of other associations wholly owned by one or 
more such United States citizens, corporations, partnerships, or 
other associations: Provided, however, That the eligibility of such 
foreign corporation shall be determined 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 other 
than the United States owners: Provided 
further, 
That in the 
case of any loan investment a final determination of eligibility 
may be made at the time the insurance or guaranty is issued; in 
all other cases, the investor must be eligible at the time a claim 
arises as well as at the time the insurance or guaranty is issued; 
and 
"'(cl) the term 'predecessor guaranty authority' means prior 
guaranty authorities (other than housing guaranty authorities) 
repealed by the Foreign Assistance Act of 1969, sections 202(b) 
and 413(b) of tlie Mutual Security Act of 1954, as amended, and 
section 111(b) (3) of the Economic Cooperation Act of 1948, as 
amended (exclusive of authority relating to informational media 
guaranties). 
"SEC. 239. GENERAL PROVISIONS AND POWERS.—(a) The Corporattion 
>hall have its principal office in the District of Columbia and shall be 
deemed, for purposes of venue in civil actions, to be a resident thereof. 
" (b) The President shall transfer to the Corporation, at such time as 
he may determine, all obligations, assets and related rights and respon-
sibilities arising out of, or related to, predecessor programs and 
authorities simihir to those provided for in section 234(a), (b), and 
(d). lentil such transfer, the agency lieretofore i-esponsible for such 
predecessor programs shall continue to administer such assets and 
obligations, and such programs and activities authorized under this 
title as may be determined by the President. 
"(c) The Corporation shall be subject to the applicable provisions 
of the Government Corporation Control Act, except as otherwise pro-
vided in this title. 
"(d) To carry out the purposes of this title, the Corporation is 
authorized to adopt and use a corporate seal, which shall be judicially 
noticed; to sue and be sued in its corporate name; to adopt, amencl, 
and repeal bylaws governing the conduct of its business and the per-
formance of the powers and duties granted to or imposed upon it by 
law; to acquire, hold or dispose of, upon such terms and conditions as 
the Corporation may determine, any property, real, personal, or 
mixed, tangible or intangible, or any interest therein; to invest funds 
derived from fees and other revenues in obligations of the United 
States and to use the proceeds therefrom, including earnings and 
profits, as it shall deem appropriate; to indemnify directors, officers, 
employees and agents of the Corporation for liabilities and expenses 
incurred in connection with their Corporation activities; to require 
bonds of officers, employees, and agents and pay the premiums there-
for; notwithstanding any other provision of law, to represent itself 
or to contract for representation in all legal and arbitral proceedings: 
to purchase, discount, rediscount, sell, and negotiate, with or without 
its endorsement or guaranty, and guarantee notes, participation cer-
tificates, and other evidence of indebtedness (provided that the 
Corporation shall not issue its own securities, except participation cer-
83 STAT. ] 
PUBLIC LAW 91-175-DEC. 30, 1969 
817 
tificates for the purpose of carrying out section 231(c)) ; to make and 
carry out such contracts and agreements as are necessary and advis-
able in the conduct of its business; to exercise the priority of the 
Government of the United States in collecting debts from bankrupt, 
insolvent, or decedents' estates; to determine the character of and 
the necessity for its obligations and expenditures, and the manner 
in which they shall be incurred, allowed, and paid, subject to provi-
sions of law specifically applicable to Government corporations; and 
to take such actions as may be necessary or appropriate to carry out 
the powers herein or hereafter specifically conferred upon it. 
"(e) The Auditor-General of the Agency for International Devel- 
AID. 
opment (1) shall have the responsibility for planning and directing viewsVy Xuduor-
the execution of audits, reviews, investigations, and inspections of all General. 
phases of the Corporation's operations and activities and (2) shall 
conduct all security activities of the Corporation relating to personnel 
and the control of classified material. With respect to his responsi-
bilities under this subsection, the Auditor-General shall report to the 
Board. The agency primarily responsible for administering part I 
shall be reimbursed by the Corporation for all expenses incurred by 
the Auditor-General in connection with his responsibilities under this 
subsection. 
"(f) In order to further the purposes of the Corporation there shall 
Advuory 
be established an Advisory Council to be composed of such representa-
tives of the American business community as may be selected by the 
Chairman of the Board. The President and the Board shall, from time 
to time, consult with such Council concerning the objectives of the 
Corporation. Members of the Council shall receive no compensation 
for their services but shall be entitled to reimbursement in accordance 
with section 5703 of title 5 of the United States Code for travel and 
^"'^' P- i^o. 
other expenses incurred by them in the performance of their functions 
under this section. 
"SEC. 
240. AGRICULTURAL 
CREDIT AND 
SELF-HELP 
COMMUNITY 
DEVELOPMENT PROJECTS.— (a) It is the sense of the Congress that in 
order to stimulate the participation of the private sector in the eco-
nomic development of less developed countries in Latin America, the 
authority conferred by this section should be used to establish pilot 
programs in not more than five Latin American countries to encourage 
private banks, credit institutions, similar private lending organiza-
tions, cooperatives, and private nonprofit development organizations 
to make loans on reasonable terms to organized groups and individuals 
residing in a community for the purpose of enabling such groups and 
individuals to carry out agricultural credit and self-help community 
development projects for which they are unable to obtain financial as-
sistance on reasonable terms. Agricultural credit and assistance for 
self-help community development projects should include, but not be 
limited to, material and such projects as wells, pumps, farm machin-
ery, improved seed, fertilizer, pesticides, vocational training, food in-
dustry development, nutrition projects, improved breeding stock for 
farm animals, sanitation facilities, and looms and other handicraft 
aids. 
"(b) To carry out the purposes of subsection (a), the Corporation 
is authorized to issue guaranties, on such terms and conditions as it 
shall determine, to private lending institutions, cooperatives, and pri-
vate nonprofit development organizations in not more than five Latin 
American countries assuring against loss of not to exceed 25 per 
centum of the portfolio of such loans made by any lender to organized 
groups or individuals residing in a community to enable such groups 
818 
PUBLIC LAW 91-175-DEC. 30, 1969 
[83 STAT. 
Use of foreign 
currencies. 
Report to Con-
gress. 
Expiration of 
authority. 
76 Stat. 258; 
82 Stat. 961. 
22 u s e 2212. 
81 Stat. 445. 
22 u s e 2151. 
76 Stat. 257. 
22 u s e 2211. 
75 Stat. 438. 
22 u s e 2351, 
2352. 
81 Stat. 453; 
8 2 Stat. 96 2. 
22 u s e 2219a. 
or individuals to carry out agricultural credit and self-help commu-
nity development projects for which they are unable to obtain financial 
assistance on reasonable terms. In no event shall the liability of the 
United States exceed 75 per centum of any one loan. 
"(c) The total face amount of guaranties issued under this section 
outstanding at any one time shall not exceed $15,000,000. Not more 
than 10 per centum of such sum shall be provided for any one institu-
tion, cooperative, or organization. 
"(d) The Inter-American Social Development Institute shall be 
consulted in developing criteria for making loans eligible for guar-
anty coverage under this section. 
"(e) The guaranty reserve established under section 235(c) shall be 
available to make such payments as may be necessary to discharge 
liabilities under guaranties issued under this section. 
"(f) Notwithstanding the limitation contained in subsection (c) of 
this section, foreign currencies owned by the United States and deter-
mined by the Secretary of the Treasury to be excess to the needs of the 
United States may be utilized to carry out the purposes of this section, 
including the discharge of liabilities incurred under this subsection. 
The authority conferred by this subsection shall be in addition to 
authority conferred by any other provision of law to implement guar-
anty programs utilizing excess local currency. 
"(g) The Corporation shall, on or before January 15, 1972, make a 
detailed report to the Congress on the results of the pilot programs 
established under this section, together with such recommendations as 
it may deem appropriate. 
"(h) The authority of this section shall continue until June 30, 
1972. 
"SEC. 240A. REPORTS TO THE CONGRESS.— (a) After the end of each 
fiscal year, the Corporation shall submit to the Congress a complete 
and detailed report of its operations during such fiscal year. 
"(b) Not later than March 1, 1974, the Corporation shall submit 
to the Congress an analysis of the possibilities of transferring all 
or part of its activities to private United States citizens, corporations, 
or other associations." 
ALLIANCE FOR PROGRESS 
SEC. 106. Section 252(a) of such Act, relating to authorization, is 
amended to read as follows: 
"SEC. 252. AUTHORIZATION.— (a) There is authorized to be appro-
priated to the President for the purposes of this title, in addition to 
other funds available for such purposes, for the fiscal year 1970, 
$428,250,000, and for the fiscal year 1971, $428,250,000, which amounts 
are authorized to remain available until expended, and which amounts, 
except for not to exceed $90,750,000 for each such fiscal year, shall be 
available only for loans payable as to principal and interest in United 
States dollars. In order to effectuate the purposes and provisions of 
sections 102, 251, 601, and 602 of this Act, not less than 50 per centum 
of the loan funds appropriated pursuant to this section for any fiscal 
year shall be available for loans made to encourage economic develop-
ment through private enterprise." 
PROGRAMS RELATING TO POPULATION GROWTH 
SEC. 107. Section 292, relating to authorization, is amended by strik-
ing out "fiscal year 1969, $50,000,000" and inserting in lieu thereof 
"fiscal 
year 
1970, $75,000,000, and 
for 
the fiscal year 1971, 
$100,000,000,". 
83 STAT. ] 
PUBLIC LAW 91-175-DEC. 30, 1969 
819 
INTERNATIONAL ORGANIZATIONS AND PROGRAMS 
SEC. 108. (a) Section 301 (c) of such Act, relating to general author- go^stau^soo!^" 
ity, is amended to read as follows: 
22 use 2221. 
"(c) No contributions by the United States shall be made to the 
United Nations Eelief and Works Agency for Palestine Refugees in 
the Near East except on the condition that the L'nited Nations Relief 
and Works Agency take all possible measures to assure that no part of 
the United States contribution shall be used to furnish assistance to 
any refugee who is receiving military training as a member of the 
so-called Palestine Liberation Army or any other guerrilla type orga-
nization or who has engaged in any act of terrorism." 
(b) Section 302(a) of such Act, relating to authorizat'on, is 82^3131^96^2°'' 
amended by striking out "fiscal year 1969, $135,000,000" and inserting 
22 use 2222. 
in lieu thereof "fiscal year 1970, $122,620,000, and for the fiscal year 
1971, $122,620,000". 
(c) Section 302(b) of such Act, relating to Indus Basin develop- 
si stat. 454. 
ment, is amended by insertmg "(1)" immediately after " ( b ) " and by 
adding at the end thereof the following new paragraph: 
"(2) There is authorized to be appropriated to the President for 
grants for Indus Basin Development, in addition to any other funds 
available for such purposes, for use in the fiscal year 1970, $7,530,000, 
and for use in the fiscal year 1971, $7,530,000, which amounts shall 
remain available until expended." 
(d) Section 302 of such Act is further amended by adding a-t the 8 2^stat^*96^2°'" 
end thereof the following new subsection: 
" (e) There is authorized to be appropriated $1,000,000 for the fiscal 
year 1970, and $1,000,000 for the fiscal year 1971, to provide added 
contribution to the United Nations Relief and Works Agency for 
expansion of technical and vocational training of Arab refugees." 
SUPPORTING ASSISTANCE 
SEC. 109. Section 402 of such Act, relating to authorization, is 82^statf96*2°'' 
amended 
by 
striking 
out 
"fiscal 
year 
1969 
not 
to 
exceed 
22 use 2242. 
$410,000,000" and inserting in lieu thereof "fiscal year 1970 not to 
exceed $414,600,000, and for the fiscal year 1971 not to exceed 
$414,600,000". 
CONTINGENCY 
FUND 
SEC. 110. Section 451(a) of such Act, relating to the contingency 
'^l^f^^^' '*^'^' 
fund, is amended by striking out "fiscal year 1968 not to exceed 
22 use 22*61. 
$50,000,000, and for the fiscal year 1969 not to exceed $10,000,000" and 
inserting in lieu thereof "fiscal year 1970 not to exceed $15,000,000, and 
for the fiscal year 1971 not to exceed $15,000,000". 
PART II—MILITARY ASSISTANCE 
MILITARY ASSISTANCE 
AUTHORIZATION 
SEC. 201. Section 504(a) of the Foreign Assistance Act of 1961, 
^o stat. so2; 
relating to authorization, is amended— 
22 use 2
3
*
1
2
. 
(1) by striking out "$375,000,000 for the fiscal year 1969" and 
inserting in lieu thereof "$350,000,000 for the fiscal year 1970, and 
$350,000,000 for the fiscal year 1971"; and 
(2) by adding at the end thereof the following new sentence: 
"Amounts appropriated under this subsection shall be available 
for cost-sharing expenses of United States participation in the 
military headquarters and related agencies program," 
820 
PUBLIC LAW 91-175-DEC. 30, 1969 
[83 STAT. 
75 
Stat. 436, 
437; 
81 Stat. 
457; 
82 
Stat 
962. 
22 u s e 2318. 
SPECIAL AUTHORITY 
SEC. 202. Section 506(a) of such Act, relating to special authority of 
the President, is amended— 
(1) by striking out "1969" in the first sentence and inserting in 
lieu thereof "1970 and the fiscal year 1971"; and 
(2) by striking out "in the fiscal year 1969" in the second sen-
tence and inserting in lieu thereof "in each of the fiscal years 1970 
and 1971". 
22 u s e 2311-
2321. 
75 Stat. 527. 
22 u s e 2451 
note. 
75 Stat. 442; 
76 Stat. 260. 
22 u s e 2360. 
75 Stat. 443; 
78 Stat. 1012; 
80 Stat. 805. 
22 u s e 2362. 
68 Stat. 454; 
80 Stat. 1526. 
7 u s e 1691 
note. 
81 Stat. 459. 
22 u s e 2370. 
RESTRICTIONS ON TRAINING 
FOREIGN 
MILITARY 
STUDENTS 
SEC. 20.3. Chapter 2 of part I I of such Act, relating to military 
assistance, is amended by inserting at the end thereof the following 
new section. 
"SEC. 
.510. RESTRICTIONS ON TRAINING 
FOREIGN 
MILITARY 
STU-
DENTS.—The number of foreign military students to be trained in the 
United States in any fiscal year, out of funds appropriated pursuant to 
this part, may not exceed a number equal to the number of foreign 
civilians brought to the United States under the Mutual Educational 
and Cultural Exchange Act of 1961 in the immediately preceding fiscal 
year." 
PART III—GENERAL, ADMINISTRATIVE, AND 
MISCELLANEOUS PROVISIONS 
SEC. 301. Section 610(a) of the Foreign Assistance Act of 1961, 
relating to transfer between accounts, is amended by inserting immedi-
ately after "funds made available for any provision of this Act" 
the following: " (except funds made available pursuant to title IV of 
chapter 2 of part I ) " . 
SEC. 302. Section 612 of such Act, relating to use of foreign cur-
rencies, is amended by adding at the end thereof the following new 
subsection: 
"(d) In furnishing assistance under this Act to the government of 
any country in which the United States owns excess foreign currencies 
as defined in subsection (b) of this section, except those currencies gen-
erated under the Agricultural Trade Development and Assistance Act 
of 1954, as amended, the President shall endeavor to obtain from the 
recipient country an agreement for the release, on such terms and con-
ditions as the President shall determine, of an amount of such curren-
cies up to the equivalent of the dollar value of assistance furnished 
by the United States for programs as may be mutually agreed upon by 
the recipient country and the United States to carry out the purposes 
for which new funds authorized by this Act wx)uld themselves be 
available." 
SEC. 303. (a) Section 620(s) of such Act, relating to prohibitions 
against furnishing assistance, is amended to read as follows: 
"(s)(l) In order to restrain arms races and proliferation of 
sophisticated weapons, and to ensure that resources intended for 
economic development are not diverted to military purposes, the 
President shall take into account before furnishing development 
loans. Alliance loans or supporting assistance to any country under 
this Act, and before making sales under the Agricultural Trade 
Development and Assistance Act of 1954, as amended: 
"(A) the percentage of the recipient or purchasing country's 
budget which is devoted to military purposes; 
83 STAT. ] 
PUBLIC LAW 91-175-DEC. 30, 1969 
821 
"(B) the degree to which the recipient or purchasing country 
is using its foreign exchange resources to acquire military equip-
ment ; and 
"(C) the amount spent by the recipient or purchasing country 
for the purchase of sophisticated weapons systems, such as missile 
systems and jet aircraft for military purposes, from any country. 
"(2) The President shall report annually to the Speaker of the 
Reports to con-
House of Representatives and the Committee on Foreign Relations ^'"^^^' 
of the Senate his actions in carrying out this provision." 
(b) Section 620(v) of such Act is repealed. 
Repeal. 
SEC. 304. Section 624(d) of such Act, relating to the duties of the 
^^ "^^ ^^''°* 
Inspector General, Foreign Assistance, is amended— 
(1) by inserting in paragraph (2) (A), after the words "under 
^s stat. 447; 
part I of this Act", the following: "(including the Overseas 
^22*usc"384. 
Private Investment Corporation), and under part IV of the 
Foreign Assistance Act of 1969 (the Inter-American Social 
Development Institute)"; 
(2) by inserting in paragraph (5), before the period at the 
end of the first sentence, the following: "and part IV of the 
Foreign Assistance Act of 1969"; and 
(3) by inserting in the first sentence of paragraph (7), im-
mediately after "programs under part I or II of this Act," the 
following: "and part IV of the Foreign Assistance Act of 1969,". 
SEC. 305. Section 634(a) of such Act, relating to reports and in- 
22 us^c 2394 
formation, is amended— 
(1) by inserting in the first sentence, after the words "concern-
ing operations", the following: "(other than those reported pur-
suant to section 240A)"; and 
Ante, p. s is. 
(2) by striking out of the last sentence the following: "on the 
operation of the investment guaranty program and". 
SEC. 306. Section 636(f) of such Act, relating to use of funds, is 
amended by inserting immediately before the period at the end thereof 
the following: "or by the Corporation established under title IV of 
chapter 2 of part I with respect to loan activities which it carries out 
under the provisions of the Agricultural Trade Development and As-
sistance Act of 1954, as amended". 
68 stat. 454; 
SEC. 307. Section 637(a) of such Act, relating to administrative ex- ^"y^u^sc \^f{ 
penses, is amended by striking out "fiscal year 1969, $53,000,000" and note. 
inserting in lieu thereof "fiscal year 1970, $51,125,000, and for the 
fiscal year 1971, $51,125,000". 
SEC. 308. Section 643 of such Act, relating to savings provisions, is 
75 st^at^. 46o^ 
amended by inserting after "section 642(a)" and "section 642(a) (2)" 
"^ '"^ "'"" 
each time they appear the following: "and the Foreign Assistance 
Act of 1969". 
PART IV—INTER-AMERICAN SOCIAL DEVELOPMENT 
INSTITUTE 
SEC. 401. INTER-AMERICAN SOCIAL DEVELOPMENT INSTITUTE.— (a) 
There is created as an agency of the United States of America a body 
corporate to be known as the "Inter-American Social Development 
Institute" (hereafter in this section referred to as the "Institute"). 
(b) The future of freedom, security, and economic development in 
the Western Hemisphere rests on the realization that man is the foun-
dation of all human progress. It is the purpose of this section to pro-
vide support for developmental activities designed to achieve condi-
tions in the Western Hemisphere under which the dignity and the 
worth of each human person will be respected and under which all 
75 stat. 459. 
22 u s e 2396. 
22 u s e 2402. 
822 
PUBLIC LAW 91-175-DEC. 30, 1969 
[83 STAT. 
Purposes. 
Research and 
planning. 
Coordination of 
functions. 
Powers. 
men will be afforded the opportunity to develop their potential, to 
seek through gainful and productive work the fulfillment of their 
aspirations for a better life, and to live in justice and peace. To this 
end, it shall be the purpose of the Institute, primarily in cooperation 
with private, regional, and international organizations, to— 
(1) strengthen the bonds of friendship and understanding 
among the peoples of this hemisphere; 
(2) support self-help efforts designed to enlarge the oppor-
tunities for individual development; 
(3) stimulate and assist effective and ever wider participation 
of the people in the development process; 
(4) encourage the establishment and growth of democratic in-
stitutions, private and governmental, appropriate to the re-
quirements of the individual sovereign nations of this hemisphere. 
In pursuing these purposes, the Institute shall place primary empha-
sis on the enlargement of educational opportunities at all levels, the 
production of food and the development of agriculture, and the im-
provement of environmental conditions relating to health, maternal 
and child care, family planning, housing, free trade union develop-
ment, and other social and economic needs of the people. 
(c) Th3 Institute shall carry out the purposes set forth in subsec-
tion (b) of this section primarily through and with private organiza-
tions, individuals, and international organizations by undertaking or 
sponsoring appropriate research and by planning, initiating, assist-
ing, financing, administering, and executing programs and projects 
designed to promote the achievement of such purposes. 
(d) In carrying out its functions under this section, the Institute 
shall, to the maximum extent possible, coordinate its undertakings with 
the developmental activities in the Western Hemisphere of the various 
organs of the Organization of American States, the United States 
Government, international organizations, and other entities engaged 
in promoting social and economic development of Latin America. 
(e) The Institute, as a corporation— 
(1) shall have perpetual succession unless sooner dissolved by 
an Act of Congress; 
(2) may adopt, alter, and use a corporate seal, which shall be 
judicially noticed; 
(3) may make and perform contracts and other agreements 
with any individual, corporation, or other body of persons how^ever 
designated whether within or without the United States of Amer-
ica, and with any government or governmental agency, domestic 
or foreign; 
(4) shall determine and prescribe the manner in which its obli-
gations shall be incurred and its expenses allowed and paid; 
(5) may, as necessary for the transaction of the business of the 
Institute, employ, and fix the compensation of not to exceed one 
hundred persons at any one time; 
(6) may acquire by purchase, devise, bequest, or gift, or other-
wise lease, hold, and improve, such real and personal property as 
it finds to be necessary to its purposes, whether within or without 
the LTnited States, and in any manner dispose of all such real and 
personal property held by it and use as general funds all receipts 
arising from the disposition of such property; 
(7) shall be entitled to the use of the ITnited States mails in the 
same manner and on the same conditions as the executive depart-
ments of the Government; 
(8) may, with the consent of any board, corporation, commis-
sion, independent establishment, or executive department of the 
Government, including any field service thereof, avail itself of the 
83 STAT. ] 
PUBLIC LAW 91-175-DEC. 30, 1969 
823 
use of information, services, facilities, officers, and employees 
thereof in carrying out the provisions of this section; 
(9) may accept money, funds, property, and services of every ^^'^^^' ^""""^P^' 
kind by gift, device, bequest, grant, or otherwise, and make ad-
vances, grants, and loans to any individual, corporation, or other 
body of persons, whether withm or without the United States of 
America, or to any government or governmental agency, domestic 
or foreign, when deemed advisable by the Institute in furtherance 
of its purposes; 
(10) may sue and be sued, complain, and defend, in its corpo-
rate name in any court of competent jurisdiction; and 
(11) shall have such other powers as may be necessary and in-
cident to carrying out its powers and duties under this section. 
(f) Upon termination of the corporate life of the Institute all of its 
assets shall be liquidated and, unless otherwise provided by Congress, 
shall be transferred to the United States Treasury as the property of 
the United States. 
(g) The management of the Institute shall be vested in a board of 
^^"^'^'^ °^ 
directors (hereafter in this section referred to as the "Board") com- 
Appointment by 
posed of seven members appointed by the President, by and with the President. 
advice and consent of the Senate, one of whom he shall designate to 
serve as Chairman of the Board and one of whom he shall designate 
to serve as Vice Chairman of the Board. Four members of the Board 
shall be appointed from private life. Three members of the Board 
shall be appointed from among officers or employees of agencies of the 
LTnited States concerned with inter-American affairs. Members of the 
Board shall be appointed for terms of six years, except that of the 
members first appointed two shall be appointed for terms of two years 
and two shall be appointed for terms of four years, as designated by 
the President at the time of their appointment. A member of the Board 
appointed to fill a vacancy occurring prior to the expiration of the 
term for which his predecessor was appointed shall be appointed only 
for the remainder of such term; but upon the expiration of his term of 
office a member shall continue to serve until his successor is appointed 
and shall have qualified. Members of the Board shall be eligible for 
reappointment. 
(h) Members of the Board shall serve without additional compen-
sation, but shall be reimbursed for actual and necessary expenses not 
in excess of $50 per day, and for transportation expenses, while 
engaged in their duties on behalf of the corporation. 
(i) The Board shall direct the exercise of all the powers of the 
Institute. 
(j) The Board may prescribe, amend, and repeal bylaws, rules, and 
regulations governing the manner in which the business of the Insti-
tute may be conducted and in which the powers granted to it by law 
may be exercised and enjoyed. A majority of the Board shall be 
required as a quorum. 
(k) In furtherance and not in limitation of the powers conferred 
upon it, the Board may appoint such committees for the carrying out 
of the work of the Institute as the Board finds to be for the best inter-
ests of the Institute, each committee to consist of two or more mem-
bers of the Board, which committees, together with officers and agents 
duly authorized by the Board and to the extent provided by the 
Board, shall have and may exercise the powers of the Board in the 
management of the business and affairs of the Institute. 
824 
PUBLIC LAW 91-175-DEC. 30, 1969 
[83 STAT. 
Executive 
Director. 
Post, p. 864. 
Council,estab-
lishment. 
Ante, p. 190. 
Personnel 
detail. 
Taxation, 
exemption. 
75 Stat. 424; 
Ante, 
p. 806. 
59 Stat. 597; 
61 Stat. 584. 
31 u s e 841 
note. 
(1) The chief executive officer of the Institute sliall be an Execu-
tive Director who shall be appointed by the Board of Directors on 
such terms as the Board may determine. The Executive Director shall 
receive compensation at the rate provided for level IV of the Execu-
tive Schedule under section ,5315 of title 5, United States Code. 
(m) In order to further the purposes of the Institute there shall be 
established a Council to be composed of such number of individuals 
as may be selected by the Board from among individuals knowledge-
able concerning developmental activities in the Western Hemisphere. 
The Board shall, from time to time, consult with the Council con-
cerning the objectives of the Institute. Members of the Council shall 
receive no compensation for their services but shall be entitled to 
reimbursement in accordance with section 5703 of title 5, United 
States Code, for travel and other expenses incurred by them in the 
performance of their functions under this subsection. 
(n) The Institute shall be a nonprofit corporation and shall have no 
capital stock. No part of its revenue, earnings, or other income or prop-
erty shall inure to the benefit of its directors, officers, and employees 
and such revenue, earnings, or other income, or property shall be used 
for the carrying out of the corporate purposes set forth in this section. 
No director, officer, or employee of the corporation shall in any man-
ner directly or indirectly participate in the deliberation upon or the 
determination of any question affecting his personal interests or the 
interests of any corporation, partnership, or organization in which he 
is directly or indirectly interested. 
(o) When approved by the Institute, in furtherance of its purpose, 
the officers and employees of the Institute may accept and hold offices 
or positions to which no compensation is attached with governments 
or governmental agencies of foreign countries. 
(p) The Secretary of State shall have authority to detail employees 
of any agency under his jurisdiction to the Institute under such cir-
cumstances and upon such conditions as he may determine. Any such 
employee so detailed shall not lose any privileges, rights, or seniority as 
an employee of any such agency by virtue of such detail. 
(q) The Institute shall establish a principal office. The Institute is 
authorized to establish agencies, branch offices, or other offices in any 
place or places within the United States or elsewhere in any of which 
locations the Institute may carry on all or any of its operations and 
business. 
(r) The Institute, including its franchise and income, shall be 
exempt from taxation now or hereafter imposed by the United States, 
or any territory or possession thereof, or by any State, county, munici-
pality, or local taxing authority. 
(s) Notwithstanding any other provision of law, not to exceed an 
aggregate amount of $50,000,000 of the funds made available for the 
fiscal years 1970 and 1971 to carry out part I of the Foreign Assist-
ance Act of 1961 shall be available to carry out the purposes of this 
section. Funds made available to carry out the purposes of this sec-
tion under the preceding sentence are authorized to remain available 
until expended. 
(t) The Institute shall be subject to the provisions of the Govern-
ment Corporation Control Act. 
83 STAT. ] 
PUBLIC LAW 91-175-DEC. 30, 1969 
825 
PART V—AMENDMENTS TO OTHER ACTS 
59 Stat. 597; 
72 Stat. 272. 
80 Stat. 425. 
80 Stat. 430. 
SEC. 501. Section 101 of the Government Corporation Control Act 
(31 U.S.C. 846) is amended by striking out "Development Loan 
Fund;" and inserting in lieu thereof "Overseas Private Investment 
Corporation;". 
SEC. 502. (a) Section 3343(b) of title 5, United States Code, relat-
ing to details of personnel to international organizations, as 
amended— 
(1) by striking out " 3 " and inserting in lieu thereof "5"; and 
(2) by striking out the period at the end of such section and 
inserting in lieu thereof a comma and the following: "except 
that under special circumstances, where the President determines 
it to be in the national interest, he may extend the 5-year period 
for up to an additional 3 years." 
(b) Section 3581(5) of such title, relating to reemployment rights 
of personnel who transfer to international organizations, is amended 
by striking out "the first 3 consecutive years after entering the 
employ of the international organization" and inserting in lieu thereof 
the following: "the first 5 consecutive years, or any extension thereof, 
after entering the employ of the international organization". 
(c) Section 3582(a) of such title, relating to rights of personnel who 
transfer to international organizations, is amended— 
(1) by inserting in clause (1), before the semicolon at the end 
thereof, a comma and the following: "except that such service 
shall not be considered creditable service for the purpose of any 
retirement system for transferring personnel, if such service 
forms the basis, in whole or in part, for an annuity or pension 
under tlie i-etirement system of the international organization"; 
and 
(2) by striking out clause (2) and inserting in lieu thereof the 
following: 
"(2) to retain coverage, rights, and benefits under chapters 87 
and 89 of this title, if necessary employee deductions and agency 
so stat. 592 
contributions in payment for the coverage, rights, aiid benefits 
for the period of employment with the international organization 
are currently deposited in the E]mployees' Life Insurance Fund 
and the Employees' Health Benefits Fund, as applicable, and 
the period during which coverage, rights, and benefits are retained 
under this paragraph is deemed service as an employee under 
chapters 87 and 89 of this title,", 
(d) Section 3582(b) of such title, relating to rights of employees 
^o stat. 431. 
transferring to international organizations, is amended— 
(1) by striking out, ", except a Congressional employee," in the 
first sentence; 
(2) by striking out of clause (1) "3 years" and inserting in lieu 
thereof "5 years, or any extension thereof,"; and 
(3) by inserting at the end thereof the following new sentences: 
"On reemployment, he is entitled to be paid, under such regula-
tions as the President may prescribe and from appropriations or 
funds of the agency from which transferred, an amount equal to 
the diiTerence between the pay, allowances, post differential, and 
other monetary benefits paid by the international organization 
and the pay, allowances, post dift'erential, and other monetary 
826 
PUBLIC LAW 91-176-DEC. 30, 1969 
[83 STAT. 
benefits that would have been paid by the agency had he been de-
tailed to the international organization under section 3343 of this 
title. Such a payment shall be made to an employee who is unable 
to exercise his reemployment right because of disability incurred 
while on transfer to an international organization under this sub-
chapter and, in the case of any employee who dies while on such 
a transfer or during the period after separation from the inter-
national organization in which he is properly exercising or could 
exercise his reemployment right, in accordance with subchapter 
80 Stat. 495. 
VIII of chaptcr 55 of this title. This subsection does not apply 
to a congressional employee nor may any payment provided for in 
the preceding two sentences of this subsection be based on a period 
of employment with an international organization occuring be-
fore the first day of the first pay period which begins on or after 
the date of enactment of the Foreign Assistance Act of 1969." 
80 Stat. 431. 
(e) Section 3582(c) of such title, relating to rights of employees 
transferring to international organizations, is amended by striking out 
"3 years" and inserting in lieu thereof the following: "5 years, or any 
extension thereof,". 
(f) Section 3582(d) of such title, relating to agency contributions 
to retirement and insurance programs for personnel who transfer to 
international organizations, is amended to read as follows: 
"(d) During the employee's period of service with the international 
organization, the agency from which the employee is transferred shall 
make contributions for retirement and insurance purposes from the 
appropriations or funds of that agency so long as contributions are 
made by the employee." 
SEC. 503. Subchapter I I of chapter 53 of title 5, United States Code, 
is amended— 
(1) by inserting at the end of section 5314, relating to level I I I 
of the Executive Schedule, the following: 
"(54) President, Overseas Private Investment Corporation."; 
(2) by inserting at the end of section 5315, relating to level IV 
of the Executive Schedule, the following: 
"(92) Executive Vice President, Overseas Private Investment 
Corporation."; and 
(3) by inserting at the end of section 5316, relating to level 
V of the Executive Schedule, the following: 
" (128) Auditor-General of the Agency for International Devel-
opment. 
"(129) Vice Presidents, Overseas Private Investment Corpora-
tion (3)." 
Approved December 30, 1969. 
Public Law 91-176 
Dece:.ber 30. 1969 
J O I N T 
R E S O L U T I O N 
[H. J. Res. 764] 
To authorize appropriations for expenses of the President's Council on 
Youth Opportunity. 
Resolved hy the Senate and House of Representatives 
of the United 
States of America in Congress assemhled^ That there is hereby author-
ized to be appropriated such sums as may be necessary for the expenses 
of the President's Council on Youth Opportunity, established by 
3 CFR, 1967 
Executive Order Numbered 11330 of March 5, 1967. 
Approved December 30, 1969. 
Post, p . 864.