An Act to amend further the Foreign Assistance Act of 1961, as amended, and for other purposes
PL 88-633 (H.R.11380), enacted 10/07/1964

78 STAT. ] 
PUBLIC LAW 88-633-OCT. 7, 1964 
1009 
Public Law 88-633 
A N A C T 
October 7, 1964 
To amend further the Foreign Assistance Act of 1961, as amended, and for other 
[H. R. 1138O] 
purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may an^rAcTot^igeT 
be cited as the "Foreign Assistance Act of 1964". 
PART I 
CHAPTER 2—DEVELOPMENT ASSISTANCE 
TITLE I—DEVELOPMENT LOAN FUND 
SEC. 101. Section 201(d) of the Foreign Assistance Act of 1961, as 
amended, which relates to the Development Loan Fund, is amended as 
^^ ^^^^ ^f^-^ 
follows: 
(a) Strike out "Foreign Assistance Act of 1963" and substitute 
"Foreign Assistance Act of 1964". 
(b) Strike out "2 per centum" and substitute "2i/^ per centum". 
(c) Strike out "three-fourths of 1 per centum" and substitute 
"1 per centum". 
TITLE II—TECHNICAL COOPERATION AND DEVELOPMENT GRANTS 
SEC. 102. Title I I of chapter 2 of part I of the Foreign Assistance 
Act of 1961, as amended, which relates to development grants and 
technical cooperation, is hereby amended as follows: 
(a) Amend the title heading to read as follows: "TITLE II—TECHNICAL 
COOPERATION AND DEVELOPMENT GRANTS". 
(b) Amend section 212, which relates to authorization, by striking 
^^ "^^ ^^^^• 
out "1964" and "$220,000,000" and substituting "1965" and '^215,000,-
000", respectively. 
(c) Amend section 214(c), which relates to American schools and 22 use 2174. 
hospitals abroad, by striking out "1964, $19,000,000" and substituting 
"1965, $18,000,000", and by striking out the second sentence. 
(d) Amend section 216(a), which relates to voluntary agencies, by ^^ ^^^ ^^^^ 
inserting after "ports" the first time it appears, the words "or, in ||:he 
case of excess or surplus property supplied by the United States, from 
foreign ports". 
(e) Add the following new section at the end thereof: 
"SEC. 217. USED EQUIPMENT.—The President is authorized to use 
funds made available for the purposes of section 211 to conduct a study yg^gtat^^jse^^' 
and investigation to determine the feasibility of establishing pro- 22usc2i'7i. 
grams for the furnishing to less developed friendly countries and areas 
of used tools, machinery, and other equipment to be donated by pri-
vate enterprises, or acquired through normal channels of trade, and 
the extent to which such programs are likely to be utilized by and 
contribute to the economic development of the receiving country. The C(!1^^°'^V° 
President shall submit to the Congress at the earliest practicable date 
a report of the results of such study and investigation, together with 
such recommendations for legislation as he deems advisable." 
TITLE III—INVESTMENT GUARANTIES 
SEC. 103. 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 
hereby amended as follows: 
1010 
PUBLIC LAW 88-633-OCT. 7, 1964 
[78 STAT. 
76 Stat. 256; 
(a) Amend section 221(b) (2), which relates to general authority, 
77 Stat. 381* 
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as lollows: 
(1) Strike out "$180,000,000" in the third proviso and substitute 
"$800,000,000". 
(2) Strike out "1965" in the last proviso and substitute "1966". 
22 use 2184. 
^\y^ Amend section 224(b), which relates to housing projects in 
Latin American countries, by striking out "$150,000,000" and sub-
stituting "$250,000,000". 
TITLE IV—SURVEYS OF INVESTMENT OPPORTUNITIES 
SEC. 104, Section 232 of the Foreign Assistance Act of 1961, as 
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amended, which relates to surveys of investment opportunities, is 
amended by striking out "1963" and "$2,000,000" and substituting 
"1965" and "$2,100,000", respectively. 
22 u s e 2192. 
TITLE VI—ALLIANCE FOR PROGRESS 
SEC. 105. Section 252 of the Foreign Assistance Act of 1961, as 
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amended, which relates to the Alliance for Progress, is amended by 
striking out in the first sentence the words beginning with "of the 
funds" the first time they appear through the words "fiscal year 1964" 
and substituting "in each of the fiscal years 1963 and 1964 and 
$85,000,000 in fiscal year 1965 of the funds appropriated pursuant to 
this section for use beginning in each such fiscal year". 
CHAPTER 3—INTERNATIONAL ORGANIZATIONS AND PROGRAMS 
SEC. 106. Section 302 of the Foreign Assistance Act of 1961, as 
7^^1*^*383^' 
amended, which relates to international organizations and programs, 
22 use 2222. 
Js amended as follows: 
(a) Strike out "1964" and "$136,050,000" and substitute "1965" and 
"$134,272,400", respectively. 
(b) At the end thereof, add the following new sentence: "None of 
the funds available to carry out this chapter shall be contributed to 
any international organization or to any foreign government or agency 
thereof to pay the costs of developing or operating any volunteer 
program of such organization, government, or agency relating to the 
selection, training, and programing of volunteer manpower." 
CHAPTER 4—SUPPORTING ASSISTANCE 
SEC. 107. Section 402 of the Foreign Assistance Act of 1961, as 
22 use 2242. 
amended, which relates to supporting assistance, is amended by strik-
ing out "1964" and "$380,000,000" and substituting "1965" and 
"$405,000,000", respectively, and by adding at the end thereof the 
e(^^^es*s^ *° 
follow^ing new sentence: "Of the funds made available for the fiscal 
year 1965 to carry out the purposes of this chapter, not less than 
fi>200,000,000 shall be available solely for use in Vietnam, unless the 
President determines otherwise and promptly reports such determi-
nation to the Committees on Foreign Relations and Appropriations 
of the Senate and to the Speaker of the House of Representatives.". 
CHAPTER 5—CONTINGENCY FUND 
SEC. 108. Section 451(a) of the Foreign Assistance Act of 1961, as 
22 use 2261. 
amended, which relates to the contingency fund, is amended by striking 
out 
"1964" and 
"$160,000,000" and 
substituting 
"1965" 
and 
"$150,000,000", respectively. 
75 Stat. 435. 
22 use 2311. 
78 STAT. ] 
PUBLIC LAW 88-633-OCT. 7, 1964 
1011 
PART I I 
CHAPTER 2—MILITARY ASSISTANCE 
SEO. 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) Amend section 503, which relates to general authority, as 
follows: 
(1) In subsection (c) strike out "and" at the end thereof and in 
subsection (d) strike out the period at the end thereof and substitute 
"; and". 
(2) Add the following new subsection (e) : 
"(e) guarantying, insuring, coinsuring, and reinsuring any in-
dividual, corporation, partnership, or other association doing 
business in the United States against political and credit risks 
of nonpayment arising in connection with credit sales financed 
by such individual, corporation, partnership or other association 
for defense articles and defense services procured in the L^nited 
States by such friendly country or international organization." 
(b) Amend section 504(a), which relates to authorization, by 
11 flic ^^\^ 
striking out "1964" and "$1,000,000,000" and substituting "1965" and 
"$1,055,000,000", respectively, and by adding at the end thereof the 
following new sentence: "Of the funds made available for the fiscal ^^^f^l''^^ ^° 
year 1965 to carry out the purposes of this part, not less than 
$200,000,000 shall be available solely for use in Vietnam, unless the 
President determines otherwise and promptly reports such determina-
tion to the Committees on Foreign Relations and Appropriations of 
the Senate and to the Speaker of the House of Representatives.". 
(c) Amend section 507(b), which relates to sales, by inserting 
after "are due" at the end of the first sentence the following: ": Pro-
vided, That the President may, when he determines it to be in the 
national interest, accept a dependable undertaking to make full pay-
ment within one hundred and twenty days after delivery of the 
defense articles, or the rendering of the defense services, and appro-
priations available to the Department of Defense may be used to 
meet the payments required by the contracts and shall be reimbursed 
by the amounts subsequently received from the country or inter-
national organization". 
(d) Amend section 509, which relates to exchanges, as follows: 
22 use 2317 
(1) The section heading is amended to read as follows: 
"EXCHANGES AND GUARANTIES". 
(2) After the section heading insert " (a)". 
(3) Add the following new subsection (b): 
"(b) In issuing guaranties, insurance, coinsurance, and reinsur-
ance, the President may enter into contracts with exporters, insurance 
companies, financial institutions, or others, or groups thereof, and 
where appropriate may employ any of the same to act as agent in the 
issuance and servicing of such guaranties, insurance, coinsurance, 
and reinsurance, and the adjustment of claims arising thereunder. 
Fees and premiums shall be charged in connection with contracts of 
guaranty, insurance, coinsurance, and reinsurance. 
Obligations shall 
be recorded against the funds available for credit sales under this 
part in an amount not less than 25 per centum of the contractual liabil-
ity related to any guaranty, insurance, coinsurance, and reinsurance 
issued pursuant to this part and the funds so obligated together with 
fees and premiums shall constitute a single reserve for the payment 
of claims under such contracts. Any guaranties, insurance, coinsur-
eongress. 
75 Stat. 437. 
22 use 2315. 
1012 
PUBLIC LAW 88-633-OCT. 7, 1964 
[78 STAT. 
77 Stat. 384. 
22 use 2318. 
22 use 2320. 
Defense arti-
cles. 
75 Stat. 437. 
22USCi2315. 
Reports to 
eongress. 
ance, and reinsurance issued pursuant to this part shall be considered 
contingent obligations backed by the full faith and credit of the 
United States of America." 
(e) Section 510(a), which relates to special authority, is amended 
bv striking out "1964" in the first and second sentences thereof and 
substituting "1965". 
(f) Section 512, which relates to restrictions on military aid to 
Africa, is amended by striking out "1964" and substituting "1965". 
(g) Add the following new section at the end thereof: 
"SEC. 513. CERTIFICATION OF RECIPIENT'S CAPABILITY.—(a) Except 
as provided in subsection (b) of this section, no defense article hav-
ing a value in excess of $100,000 shall hereafter be furnished to any 
country or international organization under the authority of this 
Act (except under the authority of section 507) unless the chief of 
the appropriate military assistance advisory group representing the 
United States with respect to defense articles used by such country 
or international organization or the head of any other group repre-
senting the United States with respect to defense articles used by 
such country or international organization has certified in writing 
within six months prior to delivery that the country or international 
organization has the capability to utilize effectively such article in 
carrying out the purposes of this part. 
"(b) Defense articles included in approved military assistance 
programs may be furnished to any country or international organi-
zation for which the certification required by subsection (a) of this 
section cannot be made when determined necessary and specifically 
approved in advance by the Secretary of State (or, upon appropriate 
delegation of authority by an Under Secretary or Assistant Secre-
tary of State) and the Secretary of Defense (or, upon appropriate 
delegation of authority by the Deputy Secretary or an Assistant 
Secretary of Defense). The Secretary of State, or his delegate, shall 
make a complete report to the Speaker of the House of Representa-
tives and to the Committee on Foreign Relations and the Committee 
on Appropriations of the Senate of each such determination and 
approval and the reasons therefor." 
PART I I I 
77 Stat. 385. 
22 use 2351. 
Engineering and 
professional serv-
ices of U.S. firms. 
22 use 2362. 
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) Amend section 601(c), relating to the Advisory Committee on 
Private Enterprise, by striking out in paragraph (4) "December 31, 
1964" and substituting "June 30,1965". 
(b) Section 601, which relates to the encouragement of free enter-
prise and private participation, is amended by adding at the end there-
of the following new subsection: 
"(d) It is the sense of Congress that the Agency for International 
Development should continue to encourage, to the maximum extent 
consistent with the national interest, the utilization of engineering and 
professional services of United States firms (including, but not limited 
to, anv corporation, company, partnership, or other association) or by 
an affiliate of such Ignited States firms in connection with capital 
projects financed bv funds authorized under this Act." 
(c) Amend section 612, which relates to the use of foreign currencies, 
by adding the following new subsection (c) : 
"(c) Any Act of the Congress making appropriations to carry out 
programs under this or any other Act for United States operations 
78 STAT. ] 
PUBLIC LAW 88-633-OCT. 7, 1964 
1013 
abroad is hereby authorized to provide for the utilization of United 
States-owned excess foreign currencies to carry out any such opera-
tions authorized by law. 
"The President shall take all appropriate steps to assure that, to the 
maximum extent possible, United States-ow^ned excess foreign cur-
rencies are utilized, in lieu of dollars. As used in this subsection, the 
term 'excess foreign currencies' means foreign currencies or credits 
owned by or owed to the United States which are, under applicable 
agreements with the foreign country concerned, available for the use 
of the United States (jovernment and are determined by the President 
to be excess to the normal requirements of departments and agencies of 
the United States for such currencies or credits and are not prohibited 
from use under this subsection by an agreement entered into with the 
foreign country concerned." 
(d) Amend subsection 620(e), relating to expropriations and other 
^^ ^^^ ^^e. 
similar matters, as follows: 
(1) After " ( e ) " insert "(1)". 
(2) Redesignate subparagraphs (1), (2), and (3) of the first para-
graph as subparagraphs (A), (B), and (C), respectively. 
(3) Strike out "paragraphs (1), (2), or (3)" and substitute "sub-
paragraphs (A), (B),or (C) of paragraph (1)". 
(4) At the end of such subsection add the following new para-
graph (2) : 
"(2) Notwithstanding any other provision of law, no court in the 
United States shall decline on the ground of the federal act of state 
doctrine to make a determination on the merits giving effect to the 
principles of international law in a case in which a claim of title or 
other right is asserted by any party including a foreign state (or a 
party claiming through such state) based upon (or traced through) 
a confiscation or other taking after January 1, 1959, by an act of that 
state in violation of the principles of international law, including the 
principles of compensation and the other standards set out in this sub-
section: Provided, 
That this subparagraph shall not be applicable 
(1) in any case in which an act of a foreign state is not contrarj^ to 
international law or with respect to a claim of title or other right 
acquired pursuant to an irrevocable letter of credit of not more than 
180 days duration issued in good faith prior to the time of the con-
fiscation or other taking, or (2) in any case wdth respect to which the 
President determines that application of the act of state doctrine is 
required in that particular case by the foreign policy interests of the 
United States and a suggestion to this effect is filed on his behalf in 
that case with the court, or (3) in any case in which the proceedings 
are commenced after January 1,1966," 
(e) In section 620(f), relating to prohibitions on furnishing assist- 
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ance to Communist countries, immediately after "Union of Soviet 
Socialist Republics" insert the following: "(including its captive con-
stituent republics)". 
(f) Amend section 620(k) by striking out "1964" each place it 
appears and substituting "1965" in each such place. 
(g) In section 620(m), relating to prohibitions on furnishing assist-
ance to Cuba and certain other countries, after "during" insert "each" 
and also strike out "1964" and "$1,000,000" and substitute for the latter 
"$500,000". 
77 Stat. 386. 
1014 
PUBLIC LAW 88-633-OCT. 7, 1964 
[78 STAT. 
75 Stat. 449; 
76 Stat. 262. 
22 u s e 2385. 
Alliance for 
Progress. 
Inter-American 
Committee repre-
sentative. 
Ante, 
p. 428. 
75 Stat. 451. 
22 u s e 2386. 
63 Stat. 802; 
76 Stat. 499. 
76 Stat. 451. 
77 Stat. 389. 
22 u s e 2397. 
22 u s e 2401-
2406. 
66 Stat. 662. 
31 u s e 724. 
76 Stat. 263. 
CHAPTER 2—ADMINISTRATIVE PROVISIONS 
SEC. 302. Chapter 2 of part I I I of the Foreign Assistance Act of 
1961, as amended, which relates to administrative provisions, is 
amended as follows: 
(a) Amend section 625, which relates to employment of personnel, 
as follows: 
(1) In subsection (d) (2) in the third proviso strike out "more than 
thirty persons in the aggregate" and substitute "the assignment to 
such duty of more than twenty persons at any one time". 
(2) Add the following new subsection (j) : 
"(j) The President may appoint or assign a United States citizen 
to be representative of the United States to the Inter-American Com-
mittee on the Alliance for Progress and, in his discretion, may termi-
nate such appointment or assignment, notwithstanding any other pro-
vision of law. 
Such person may be compensated at a rate not to 
exceed that authorized for a chief of mission, class 2, within the mean-
ing of the Foreign Service Act of 1946, as amended." 
(b) Amend section 626, which relates to experts, consultants and 
retired officers, as follows: 
(1) Subsection (a) is amended by striking out "$75" and sub-
stituting "$100". 
(2) Subsection (c) is amended by striking out the words "Career 
Compensation Act of 1949, as amended (37 U.S.C. 231 et seq.)" and 
substituting "section 101(3) of title 37 of the United States Code". 
^c) Amend 
section 
637(a), which 
relates to 
administrative 
expenses, by striking out "1964" and "$54,000,000" and substituting 
"1965" and "$52,500,000", respectively. 
CHAPTER 3—MISCELLANEOUS PROVISIONS 
SEC. 303. Chapter 3 of part I I I of the Foreign Assistance Act of 
1961, as amended, which relates to miscellaneous provisions, is 
amended by adding at the end thereof the following new section: 
"SEC. 648. SPECIAL AUTHORIZATION FOR USE OF FOREIGN CURREN-
CIES.—Subject to the provisions of section 1415 of the Supplemental 
Appropriation Act, 1953, the President is authorized, as a demonstra-
tion of good will on the part of the people of the United States for 
the Polish and Italian people, to use foreign currencies accruing to 
the United States Government under this or any other Act, for 
assistance on such terms and conditions as he may specify, in the 
repair, rehabilitation, improvement, and maintenance of cemeteries 
in Italy serving as the burial place of members of the armed forces 
of Poland who died in combat in Italy during World War II," 
PART IV—AMENDMENTS TO OTHER LAWS 
SEC. 401. The first section of the Act entitled "An Act to authorize 
participation by the United States in the Interparliamentary Union", 
approved June 28, 1935 (22 U.S.C. 276), is amended to read as 
follows: 
"That an appropriation of $50,000 annually is authorized, $23,100 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 ai^bitration; and $26,900, 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." 
78 STAT. ] 
PUBLIC L
A
W 88-634-OCT. 7, 1964 
1015 
SEC. 402. Section 502(b) of the Mutual Security Act of 1954, as 
amended, is amended by inserting after the words "United States" 
^^ ^^^ f^^^ 
where they first appear in the first sentence thereof a comma and the 
following: "which are in excess of the amounts reserved under section 
612(a) of the Foreign Assistance Act of 1961, as amended, and of the ^JL^l^^^oV^' 
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' ' Stat. 3 8 5 . 
requirements of the united htates (iovemment in payment or its 
2
2 use 2362. 
obligations outside the United States, as such requirements may be 
determined from time to time by the President, (and any other local 
currencies owned by the United States in amounts not to exceed the 
equivalent of $50 per day per person exclusive of the actual cost of 
transportation)". 
PART V—^RELIGIOUS PERSECUITON 
SEC. 501. It is the sense of the Congress that the United States 
deeply believes in the freedom of religion for all people and is opposed 
to infringement of this freedom anywhere in the world. The Congress 
oondenms the persecution of any persons because of their religion. 
It is further the sense of Congress that all persons should be permitted 
the free exercise of religion and the pursuit of their culture. 
Approved October 7, 1964. 
Public Law 88-634 
AN A C T 
October 7, 1964 
Making appropriations for Foreign Assistance and related agencies for the 
fiscal 
[H. R. 11812] 
year ending June 30,1965, and for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That the following ancranTR^iated 
sums are appropriated, out of any money in the Treasury not otherwise Agenc^i^s A
p
p
^
r
o
-
appropriated, for the 
fiscal 
year ending June 30,1965, namely: 
priation Act, iges. 
TITLE I—FOREIGN ASSISTANCE 
FUNDS APPROPRIATED TO THE PRESIDENT 
For expenses necessary to enable the President to carry out the pro-
visions of the Foreign Assistance Act of 19&1, as amended, to remain 
^^ stat^. 424. 
available until June 30, 1965, unless otherwise specified herein, as note. 
^ 
follows: 
ECONOMIC ASSISTANCE 
Technical cooperation and development grants: For expenses author-
ized by section 212, $204,600,000. 
^"'=' P- loo^. 
American schools and hospitals abroad: For expenses authorized by 
section 214 (c) ,$16,800,000. 
Surveys of investment opportunities: For expenses authorized by 
section 232, $1,600,000. 
Ant^, p. 1010. 
International organizations and programs: For expenses authorized 
by section 302, $134,272,400. 
Supporting assistance: For expenses authorized by section 402, 
$401,000,000. 
Contingency fund: For expenses authorized by section 451(a), 
$99,200,000. 
Alliance for Progress, development grants: For expenses authorized 
by section 252, $84,700,000. 
31-667 0-65—67