An Act to amend further the Foreign Assistance Act of 1961, as amended, and for other purposes.
PL 87-565 (S.2996), enacted 08/01/1962

76 STAT. ] 
PUBLIC LAW 87-565-AUG. 1, 1962 
255 
Public Law 87-565 
AN ACT 
August 1,1962 
To amend further the Foreign Assistance Act of 1961, as amended, and for 
[s. 2996] 
other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may Foreign Assist-
be cited as the "Foreign Assistance Act of 1962". 
^"" ^''^ °' *'"• 
PART I—ACT FOR INTERNATIONAL DEVELOPMENT 
OF 1961 
CHAPTER 1—SHORT Tm.E AND POLICY 
SEC. 101. (a) The fifth paragraph of section 102 of the Foreign 
Assistance Act of 1961, as amended, containing a statement of policy, is 
75 stat. 424, 
amended by inserting in the fifth paragraph, immediately after 
^^ "^^ ^^^^' 
"religion.", the following: "The Congress further declares that any 
distinction made by foreign nations between American citizens because 
of race, color, or religion in the granting of, or the exercise of, per-
sonal or other rights available to American citizens is repugnant to 
our principles." 
(b) Such section is further amended by inserting after the seventh 
paragraph the following: 
"It is the sense of Congress that in the administration of these funds 
great attention and consideration should be given to those countries 
which share the view of the United States on the world crisis and 
which do not, as a result of United States assistance, divert their own 
economic resources to military or propaganda efforts, supported by 
the Soviet Union or Communist China, and directed against the 
United States or against other countries receiving aid under this Act. 
"The Congress further declares that in the administration of pro-
grams of assistance under this Act, the highest practicable emphasis 
should be given to: programs providing for loans or loan guarantees 
for use by institutions and organizations in making repayable low-
interest rate loans to individuals in friendly foreign countries for the 
purchase of small farms, the purchase of homes, the establishment, 
equipment and strengthening of small independent business concerns, 
purchase of tools or equipment needed by individuals for carrying on 
an occupation or a trade, or financing the opportunity for individuals 
to obtain practical education in vocational and occupational skills, 
and to those programs of technical assistance and development which 
will assist in carrying out and in preparing a favorable environment 
for such programs. While recognizing that special requirements, 
differing development needs and political conditions in various assisted 
countries will affect the priority of such programs and of each coun-
try's relative ability to implement them, it is further the sense of Con-
gress that each such assisted country should be encouraged to give 
adecjuate recognition to such needs of the people in the preparation of 
national development programs." 
(c) Such section is further amended by inserting at the end of the 
last paragraph the following new sentence: "It is the sense of Congress 
that, where feasible, the United States Government invite friendly 
nations to join in missions to consult with countries which are recipi-
ents of assistance under this part on the possibilities for joint action 
to assure the effective development of plans for the economic develop-
ment of such recipient countries and the effective use of assistance 
256 
PUBLIC LAW 87-565-AUG. 1, 1962 
[76 STAX 
provided them; and that the President may request the assistance of 
mternational financial institutions in bringing about the establishment 
of such missions." 
CHAPTER 2—DEVELOPMENT ASSISTANCE 
TITLE I—^DEVELOPMENT LOAN EUND 
SEC. 102. Section 201 of the Foreign Assistance Act of 1961, as 
75 Stat. 426. 
amended, which relates to general authority with respect to develop-
22 use 2161. 
ment loans, is amended by adding at the end thereof the following: 
"(e) In carrying out this title, the President shall not allocate, 
reserve, earmarK, commit, or otherwise set aside, funds aggregating 
in excess of $100,000 for use in anv country under this title unless (1) 
an application for such funds has been received for use in such country 
together with sufficient information and assurances to indicate reason-
ably that the funds will be used in an economically and technically 
sound manner, or (2) the President determines with respect to each 
such allocation, reservation, earmarking, commitment, or set-aside that 
it is in the national interest to use such funds pursuant to multilateral 
plans." 
T I T L E II—DEVELOPMENT GRANTS AND TECHNICAL COOPERATION 
SEC. 103. Title I I of chapter 2 of part I of the Foreign Assistance 
75 Stat. 427. 
Act of 1961, as amended, which relates to development grants and tech-
2176."^^^^^^ 
nical cooperation, is amended as follows: 
22 use 2171. 
(a) In section 211, which relates to general authority, add a new 
subsection (c) as follows: 
"(c) Not to exceed $1,000,000 of the funds made available for the 
purposes of this section in any fiscal year may be used for programs 
designed to promote the peaceful uses of atomic energy outside the 
United States and such programs may be carried out only in accord-
ance with the requirements of this section." 
(b) In section 212, which relates to authorization, strike out "1962" 
and "$380,000,000" and substitute "1963" and "$300,000,000", respec-
tively. 
(c) Strike out section 213, which relates to atoms for peace. 
TITI.E HI 
INVESTMENT GUARANTIES 
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SEC. 104. Title I I I of chapter 2 of part I of the Foreign Assistance 
^^^^' 
Act of 1961, as amended, which relates to investment guaranties, is 
amended as follows: 
22 use 2181. 
(a) Amend section 221(b) which relates to general authority, as 
follows: 
(1) In paragraph (1) strike out "$1,000,000,000" in the proviso 
and substitute "$1,300,000,000". 
(2) In paragraph (2) strike out the words preceding the first 
proviso and insert in lieu thereof the following: "where the Presi-
dent determines such action to be important to the furtherance 
of the purposes of this title, assuring against loss of any loan 
investment for housing projects with appropriate participation 
by the private investor in the loan risk and in accordance with 
the foreign and financial policies of the United States, or assur-
ing against loss of not to exceed 75 per centum of any other invest-
ment due to such risks as the President may determine, upon such 
terms and conditions as the President may determine". 
(3) In paragraph (2) strike out "$90,000,000" in the third pro-
viso and substitute "$180,000,000", and after the word "guaranty" 
76 STAT. ] 
PUBLIC LAW 87-565-AUG. 1, 1962 
257 
insert the following: "in the case of a loan shall exceed $25,000,000 
and no other such guaranty". 
(b) Amend section 222, which relates to general provisions, as 
22 use 2182. 
follows: 
(1) In subsection (d) insert ", and out of funds made available 
pursuant to this title" before the period. 
(2) Add the following new subsection (f) : 
"(f) 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." 
(c) Amend section 224, which relates to housing projects in Latin 
22 use 2184. 
American countries, as. follows: 
(1) In subsection (b) strike out "$10,000,000" in the second 
sentence and substitute "$60,000,000". 
(2) In subsection (c) strike out "and (e)" and substitute "(e), 
and (f)". 
TITLE IV—SURVEYS OF INVESTMENT OPPORTUNITIES 
SEC. 105. Section 232 of the Foreign Assistance Act of 1961, as 
amended, which relates to surveys ot investment opportunities, is 
75 stat. 432. 
amended by striking out "1962" and "$5,000,000" and substituting 
"1963" and "$2,000,000", respectively. 
22 u s e 2192. 
ALLIANCE FOR PROGRESS 
SEC. 106. Chapter 2 of part I of the Foreign Assistance Act of 1961, 
as amended, which relates to development assistance, is amended by ^ 22_usc 2161-
adding at the end a new title VI, as follows: 
2165. 
iii TITLE VI—ALLIANCE FOR PROGRESS 
"SEC. 251. GENERAL AUTHORITY,—(a) It is the sense of the Congress 
that the historic, economic, political, and geographic relationships 
among the American peoples and Republics are unique and of special 
significance and that the Alliance for Progress offers great hope for the 
advancement of the welfare of the peoples of the Americas and the 
strengthening of the relationships among them. 
It is further the sense 
of Congress that vigorous measures by the countries and areas of Latin 
America to mobilize their own resources for economic development 
and to adopt reform measures to spread the benefits of economic prog-
ress among the people are essential to the success of the Alliance for 
Progress and to continued significant United States assistance there-
under. 
The President is authorized to furnish assistance on such 
terms and conditions as he may determine in order to promote the 
economic development of countries and areas in Latin America. 
"(b) Assistance furnished under this title shall be directed toward 
the development of human as well as economic resources. In furnish-
ing assistance under this title, the President shall take into account 
(1) the principles of the Act of Bogota and the Charter of Punta del 
Este, and in particular the extent to which the recipient country or 
area is showing a responsiveness to the vital economic, political, and 
social concerns of its people and demonstrating a clear determination 
to take effective self-help measures; (2) the economic and technical 
soundness of the activity to be-financed; (3) the consistency of the 
activity with, and its relationship to, other development activities 
being undertaken or planned, and its contribution to realizable long-
range objectives; and (4) the possible effects upon the United States 
economy, with special reference to areas of substantial labor surplus, 
of the assistance involved. 
In making loans under this title from 
78135 0-63—20 
2165 
258 
PUBLIC LAW 87-565-AUG. 1, 1962 
[76 STAT. 
funds which are re(juired to be used for loans payable as to principal 
and interest in United States dollars, the President shall take into 
account, in addition to the considerations named in the preceding 
sentence, whether financing could be obtained in whole or in part from 
other free world sources on reasonable terms and the efforts made by 
recipient nations to repatriate capital invested in other countries by 
their own citizens. The provisions of sections 201 (d), 202(b), 202(c), 
22 use 2161, 
and 204 shall be applicable to such loans, and they shall be made only 
2162, 2164. 
upon a finding of reasonable prospects of repayment. 
75 Stat. 444. 
"(c) The authority of section 614(a) may not be used to waive the 
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requirements of this title with respect to funds made available for this 
title which are required to be used for loans payable as to principal 
and interest in United States dollars, and the authority of section 
22 use 2360. 
610 may be used to transfer such funds only to funds made available 
22 use 2161- 
for title I of chapter 2 of part I. 
*'• 
"(d) In order to carry out the policies of this Act and the purpose of 
this title, the President shall, when requested by a friendly country 
and when appropriate, assist in fostering measures of agrariai\ reform, 
including colonization and redistribution of land, with a view.to insur-
ing a wider and more equitable distribution of the ownei*ship of land, 
(e) The President shall not allocate, reserve, earmark, commit, or 
otherwise set aside, funds aggregating in excess of-$100,000 for use in 
any country under this title unless (1) an "application for such funds 
has been received for use in such country together with sufficient in-
formation and assurances to indicate reasonably that the funds will 
be used in an economical and technically sound manner, or (2) the 
President determines with respect to each such allocation, reserva-
tion, earmarking, commitment, or set-aside that it is in the national 
interest to use such funds pursuant to multilateral plans. 
"(f) In furnishing assistance under this title, consistently with and 
22 use 2351. 
for the purposes of section 601(b) (4) of this Act, the Agency for 
International Development or any other departments and agencies 
designated by the President shall provide such assistance as may be 
determined by the President to be necessary from time to time in 
order to make effective the efforts of the Commerce Committee for 
the Alliance for Progress, established under the Department of 
Commerce. 
Appropriation. 
"SEC. 252. AUTHORIZATION.—There is hereby authorized to be ap-
propriated to the President for the purposes of this title, in addition 
to other funds available for such purposes, for use beginning in each 
of the fiscal years 1963 through 1966, not to exceed $600,000,000 for 
each such fiscal year which sums are authorized to remain available 
until expended and which, except for not to exceed $100,000,000 of the 
funds appropriated pursuant to this section for use beginning in fiscal 
year 1963, shall be available only for loans payable as to principal and 
interest in United States dollars. In presenting requests to the Con-
gress for authorizations for appropriations for fiscal years 1964 
through 1966 to carry out other programs undler this Act, the Presi-
dent shall also present the program proposed to be carried out from 
funds appropriated pursuant to the authorization contained in this 
section tor the respective fiscal year. 
" S E C 253. FISCAL PROVISIONS,—All receipts in United States dol-
lars from loans made under this title and from loans made for the 
benefit of countries and areas of Latin America under title I of chapter 
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2 of part I of this Act, notwithstanding section 203, shall be available 
for use for loans payable as to principal and interest in United States 
dollars in furtherance of the purposes of this title. 
Such receipts and 
-, other funds made available under this title for use for the purposes 
of this title shall remain available until expended." 
2165. 
76 S T A T ] 
PUBLIC LAW 87-565-AUG. 1, 1962 
259 
CHAPTER 3—INTERNATIONAL ORGANIZATIONS AND PROGRAMS 
SEC. 107. Section 302 of the Foreign Assistance Act of 1961, as 
75 stat. 433. 
amended, which relates to international organizations and programs, 
^^ "^^ ^^^^' 
is amended by striking out "1962" and "$153,500,000" and substituting 
"1963" and "$148,900,000", respectively. 
CHAPTER 4—SUPPORTING ASSISTANCE 
SEC. 108. Section 402 of the Foreign Assistance Act of 1961, as 
amended, which relates to supporting assistance, is amended by strik-
ing out "1962" and "$465,000,000" and substituting "1963" and "$415,-
000,000", respectively. 
CHAPTER 5—CONTINGENCY FUND 
SEC. 109. Section 451 of the Foreign Assistance Act of 1961, as 
amended, which relates to the contingency fund, is amended as follows: 
(a) Amend subsection (a) by striking out "1962" and substituting 
"1963". 
(b) Amend subsection (b) by striking out "keep" and substituting 
"' and by striking out "currently informed 
'on the programing and the ooligation". 
"provide quarterly reports to" and by striking out "currently informed 
of the use" and substituting "c 
" 
CHAPTER 6—ASSISTANCE TO AGRARIAN ECONOMIES 
SEC. 110. Section 461 of the Foreign Assistance Act of 1961, as 
amended, which relates to assistance to countries having agrarian 
economies, is amended by adding at the end thereof the following: "In 
such country emphasis shall be placed also upon programs of com-
munity development which will promote stable and responsible gov-
ernmental institutions at the local level." 
22 use 2242. 
22 use 2261. 
Reports to eon-
gress. 
22 use 2271. 
PAKT II—INTEENATIONAL PEACE AND SECURITY ACT 
OF 1961 
CHAPTER 1—MILITARY ASSISTANCE 
SEC. 201. Chapter 2 of part I I of the Foreign Assistance Act of 
1961, as amended, which relates to military assistance, is amended as 
follows: 
(a) In section 506, which relates to conditions of eligibility, add the 
following new subsections: 
"(c) The President shall regularly reduce and, with such deliber-
ate speed as orderly procedure and other relevant considerations, in-
cluding prior commitments, will permit, shall terminate all further 
grants of military equipment and supplies to any country having 
sufficient wealth to enable it, in the judgment of the President, to main-
tain and equip its own military forces at adequate strength, without 
undue burden to its economy. 
"(d) Any country which hereafter uses defense articles or defense 
services furnished such country under this Act, the Mutual Security 
Act of 1954, as amended, or any predecessor foreign assistance Act, in 
substantial violation of the provisions of this chapter or any agree-
ments entered into pursuant to any of such Acts shall be immediately 
ineligible for further assistance." 
(b) In section 507(a), which relates to sales, insert "not less than" 
before "the value" in the first sentence. 
(c) In section 507(b), add a new sentence to read as follows: "No 
sales of unclassified defense articles shall be made to the government 
22 
use 2311-
2319. 
22 
use 2314. 
68 Stat. 832. 
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note. 
22 use 2315. 
260 
PUBLIC LAW 87-565-AUG. 1, 1962 
[76 STAT, 
22 use 2318. 
of any economically developed nation under the provisions of this 
subsection unless such articles are not generally available for piTrchase 
by such nations from commercial sources in the United States: PTO-
inded^ however^ That the Secretary of Defense may waive the provi-
sions of this sentence when he determines that the waiver of such pro-
visions is in the national interest." 
(d) In section 510(a), which relates to special authority, strike out 
"1962" in the first and second sentences and substitute "1963". 
PART I I I 
75 Stat. 438. 
22 use 2351-
2370. 
22 use 2360. 
22 u s e 2261, 
2318. 2364. 
22 u s e 2396, 
2397. 
22 u s e 2361. 
22 u s e 2368. 
22 use 2351-
2370. 
22 u s e 2370. 
Cuba. 
CHAPTER 1—GENERAL PROVISIONS 
SEC. 301. Chapter 1 of part I I I of the Foreign Assistance Act of 
1961, as amended, which relates to general provisions, is amended as 
follows: 
(a) In section 610, which relates to transfers between accounts, 
designate the present language as subsection (a) and add the follow-
jiig new subsection: 
"(b) The authority contained in this section and in sections 451, 510, 
and 614 shall not be used to augment appropriations made available 
pursuant to sections 636(g) (1) and 637 or used otherwise to finance 
activities which normally would be financed from appropriations for 
administrative expenses." 
(b) In section 611(a), which relates to completion of plans and cost 
estimates, strike out "and I I " and substitute ", II, and VI". 
(c) Strike out section 618, which relates to economic assistance to 
Latin America, and substitute a new section 618 as follows: 
"SEC. 618. U S E or SETTLEMENT RECEIPTS.—United States dollars 
directly paid to the United States under the Agreement Between the 
United States of America and Japan Regarding the Settlement of 
Postwar Economic Assistance to Japan may be appropriated or other-
wise made available to the President in any appropriation Act, within 
the limitations of part I of this Act, to carry out the provisions of that 
part," 
(d) Amend section 620, which relates to restrictions on assistance 
to certain countries, as follows: 
(1) Amend the first sentence of subsection (a) to read as follows; 
"No assistance shall be furnished under this Act to the present gov-
ernment of Cuba; nor shall any such assistance be furnished to any 
country which furnishes assistance to the present government of Cuba 
unless the President determines that such assistance is in the national 
interest of the United States." 
(2) Amend subsection (c) to read as follows: 
"(c) No assistance shall be provided under this Act to the govern-
ment of any country which is indebted to any United States citizen 
or person for goods or services furnished or ordered where (i) such 
citizen or person has exhausted available legal remedies, which shall 
include arbitration, or (ii) the debt is not denied or contested by such 
government, or (iii) such indebtedness arises mider an unconditional 
guaranty of payment given by such government, or any predecessor 
government, directly or indirectly, through any controlled entity: 
Provided^ That the President does not find such action contrary to 
the national security." 
(3) Add the following new subsections: 
"(e) The President shall suspend assistance to the government of 
any country to which assistance is provided under this Act when the 
government of such country or any governmental agency or subdivision 
within such country on or after January 1, 1962— 
76 STAT. ] 
PUBLIC LAW 87-565-AUG. 1, 1962 
261 
"(1) has nationalized or expropriated or seized ownership or 
control of property owned by any United States citizen or by any 
corporation, partnership, or association not less than 50 per centum 
beneficially owned by United States citizens, or 
"(2) has imposed or enforced discriminato'ry taxes or other 
exactions, or restrictive maintenance or operational conditions, 
which have the effect of nationalizing, expropriating, or otherwise 
seizing ownership or control of property so owned, 
and such country, government agency or government subdivision fails 
within a reasonable time (not more than six months after such action 
or after the date of enactment of this subsection, whichever is later) to 
take appropriate steps, which may include arbitration, to discharge its 
obligations under international law toward such citizen or entity, 
including equitable and speedy compensation for such property in con-
vertible foreign exchange, as required by international law, or fails to 
take steps designed to provide relief from such taxes, exactions, or 
conditions, as the case may be, and such suspension shall continue until 
he is satisfied that appropriate steps are being taken and no other 
provision of this Act shall be construed to authorize the President to 
waive the provisions of this subsection. 
"(f) No assistance shall be furnished under this Act, as amended, 
(except section 214(b)) to any Communist country. This restriction 
may not be waived pursuant to any authority contained in this Act 
unless the President finds and promptly reports to Congress that: (1) 
such assistance is vital to the security of the United States; (2) the 
recipient country is not controlled by the international Communist 
conspiracy; and (3) such assistance will further promote the inde-
pendence of the recipient country from international communism. For 
the purposes of this subsection, the phrase 'Communist country' shall 
include specifically, but not be limited to, the following countries: 
"Peoples Republic of Albania, 
"Peoples Republic of Bulgaria, 
"Peoples Republic of China, 
"Czechoslovak Socialist Republic, 
"German Democratic Republic (East Germany), 
"Estonia, 
"Hungarian Peoples Republic, 
"Latvia, 
"Lithuania, 
"North Korean Peoples Republic, 
"North Vietnam, 
"Outer Mongolia-Mongolian Peoples Republic, 
"Polish Peoples Republic, 
"Rumanian Peoples Republic, 
"Tibet, 
"Federal Peoples Republic of Yugoslavia, 
"Cuba, and 
"Union of Soviet Socialist Republics. 
"(g) Notwithstanding any other provision of law, no monetary 
assistance shall be made available under this Act to any government or 
political subdivision or agency of such government which will be used 
to compensate owners for expropriated or nationalized property and, 
upon finding by the President that such assistance has been used by 
any government for such purpose, no further assistance under this 
Act shall be furnished to such government until appropriate reim-
bursement is made to the United States for sums so diverted. 
"(h) The President shall adopt regulations and establish procedures 
to insure that United States foreign aid is not used in a manner which, 
contrary to the best interests of the United States, promotes or assists 
the foreign aid projects or activities of the Communist-bloc countries." 
22 u s e 2174. 
"Communist 
country. »• 
Regulations and 
procedures. 
^ 1 
PUBLIC LAW 87-565-AUG. 1, 1962 
(76 STAT. 
CHAPTER 2—ADMINISTRATIVE PROVISIONS 
SEC. O02. Chapter 2 of part I I I of the Foreign Assistance Act of 
75 Stat. 445. 
1961, as amended, which relates to administrative provisions, is 
^
^
2
^
2 use 2381- 
amended as follows: 
22 use 2381. 
(a) In section 621, which relates to exercise of functions, delete 
''(a)" and strike out subsections (b), (c), (d), and (e). 
(b) Amend section 624, which relates to statutory officers, by strik-
ing out subsection (d) and redesignating subsection (e) as subsection 
"(d)", inserting in paragraph 2(A) of redesignated subsection (d) 
", and programs being conducted by United States Government 
74 Stat. 869. 
agcucies under Public Law 86-735," after "Peace Corps", and inserting 
22 use 1942. 
-
^
-
^ paragraphs (5) and (7) of redesignated subsection (d) ", and 
Public Law 86-735" after "part I I of this Act". 
22 use 2385. 
(c) Amend section 625, which relates to employment of personnel, 
as follows: 
(1) In subsection (b) strike out "seventy-six" in the first 
sentence and substitute "one hundred and ten". 
(2) In subsection (d) add the following proviso before the 
period at the end of paragraph (2) : ": Provided fiurther^ That, 
whenever the President determines it to be important for the 
purposes of this Act, the President may initially assign personnel 
under this paragraph for duty within the United States for a 
period not to exceed two years for the purpose of preparation for 
assignment outside the United States; however, the authority con- ' 
tained in this proviso may not be exercised with respect to more 
than thirty persons in the aggregate." 
(3) Amend subsection (f) to read as follows: 
"(f) Funds provided for in agreements with foreign countries for 
the furnishing of services under this Act with respect to specific proj-
ects shall be deemed to be obligated for the services of personnel em-
jjloyed by agencies of the United States Government (other than the 
tigencies primarily responsible for administering part I or part I I of 
22 use 2151- 
this Act) as well as personnel not employed by the LTnited States 
^^^^' 
Government." 
22 use 2389. 
(d) 111 section 629(b), wliicli relates to status of persouiiel detailed, 
strike out "624(e)" in the first sentence and substitute "624(d)". 
22 use 2394. 
(e) 111 sectioii 634(a), which relates to reports and information, 
insert the following before the period at the end of the second sentence: 
"and on progress under the freedom of navigation and nondiscrimina-
tion declaration contained in section 102". 
(f) (1) In section 634(d), which relates to reports and information, 
strike out ' I n January of each year" and "preceding twelve months" in 
the first sentence and substitute "At the end of each fiscal year" and 
"fiscal year", respectively. 
(2) After the first sentence of such section 634(d) insert the follow-
ing : "There shall also be included in the presentation material sub- i 
niitted to the Congress during its consideration of amendments to this 
Act, or of any Act appropriating funds pursuant to authorizations ! 
contained in this Act, a comparison of the current fiscal year j)rograms 
and activities with those presented to the Congress in the previous year 
and an explanation of any substantial changes." 
22 use 2395. 
(g) lu sectioii 635(h), which relates to general authorities, strike 
out "and V" and substitute ", V, and VI" and strike out "made". 
22 use 2397. 
(li) Amend section 637, which relates to administrative expenses, as 
follows: 
(1) In subsection (a) strike out "1962" and "$50,000,000" and 
substitute "1963" and "$53,000,000", respectively. 
(2) In subsection (b) strike out "to the Secretary of State". 
76 STAT. ] 
PUBLIC LAW 87-565-AUG. 1, 1962 
263 
CuAFrER 3—MISCELLANEOUS PROVISIONS 
SEC. 303. Chapter 3 of part I I I of the Foreign Assistance Act of 
1961, as amended, which relates to miscellaneous provisions, is amended 
as follows: 
(a) Section 643, which relates to saving provisions, is amended by 
striking out subsection (d). 
(b) Section 644 (m), which relates to definitions, is amended by strik-
ing out "as grant assistance" in subparagraphs (2) and (3). 
(c) Section 645, which relates to unexpended balances is amended by 
inserting "this Act or" after "pursuant to". 
PART IV—AMENDMENTS TO OTHER LAWS 
SEC. 401. Part IV of the Foreign Assistance Act of 1961, as amended, 
is repealed, which repeal shall not be deemed to affect amendments 
contained in such part. 
SEC. 402. Section 2 of the Act of August 1, 1956 (70 Stat. 890), as 
amended, is further amended by adding after paragraph (a) the fol-
lowing new paragraph: 
"(b) for the purpose of promoting and maintaining friendly rela-
tions with foreign countries through the prompt settlement of certain 
claims, settle and pay any meritorious claim against the United States 
which is presented by a government of a foreign country for damage 
to or loss of real or personal property of, or personal injury to or death 
of, any national of such foreign country: Provided^ That such claim 
is not cognizable under any other statute or international agreement of 
the United States and can be settled for not more than $15,000 or the 
foreign currency equivalent thereof." 
SEC. 403. Section 102(a) (3) of the Mutual Educational and Cul-
tural Exchange Act of 1961 (Public Law 87-256, approved September 
21,1961) is hereby amended by inserting the word "abroad" after the 
word "expositions". The amendment made by this section shall not 
be applicable with respect to any fair or exposition within the United 
States for which an appropriation has been provided. 
SEC. 404. The first section of the Act authorizing participation in 
the Interparliamentary Union (22 U.S.C. 276) is amended to read as 
follows: 
"An appropriation of $48,000 annually is authorized, $21,000 of 
which shall be for the annual contributions of the United States toward 
the maintenance of the Bureau of the Interparliamentary Union for 
the promotion of international arbitration; and $27,000, or so much 
thereof as may be necessary, to assist in meeting the expenses of the 
American group of the Interparliamentary Union for each fiscal year 
for which an appropriation is made, such appropriation to be dis-
bursed on vouchers to be approved by the President and the executive 
secretary of the American group." 
Approved August 1, 1962, 10:35 a. m. 
22 u s e 2401-
2406. 
22 use 2402. 
Repeal. 
75 St8t. 463. 
5 use 170g. 
75 Stat. 528. 
22 use 2452. 
49 Stat. 425.