An Act to authorize United States contributions to the Special Funds of the Asian Development Bank
PL 92-245 (S.749), enacted 03/10/1972

86 STAT. ] 
PUBLIC LAW 92-245-MAR. 10, 1972 
57 
ance of such funds, and the interest thereon, shall be combined and 
distributed with any other tribal funds that may hereafter become 
available for per capita distribution. 
SEC. "2. None of the funds distributed per capita under the provisions 
"^^^ exemption. 
of this Act shall be subject to Federal or State income tax. Any 
per capita share payable to a person under twenty-one years of age 
or to a person under legal disability shall be paid in accordance with 
such procedures, including the establishment of trusts, as the Secre-
tary determines will adequately protect the best interest of such 
pei-sons. 
Approved March 9, 1972. 
Public Law 92-245 
A N A C T 
March 10, 1972 
To authorize United States contributions to the Special Funds of the Asian 
'•— 
2 
Development Bank. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That the Asian jn^^'I'^^k^^^^"^' 
Development Bank Act (22 U.S.C. 285-285h) is amended by adding "'specil'i Funds, 
at the end thereof the following new sections: 
u.s. contribu-
"SEC. 12. (a) Subject to the provisions of this Act, the United States ''go^stat. 7i. 
Governor of the Bank is authorized to enter into an agreement with 
the Bank providing for a LTnited States contribution of $100,000,000 
to the Bank in two annual installments of $60,000,000 and $40,000,000, 
beginning in fiscal year 1972. This contribution is referred to herein- sp"^i^"^Re^'^*^^ 
after in this Act as the 'United States Special Resources'. 
sources." 
"(b) The United States Special Resources shall be made available 
to the Bank pursuant to the provisions of this Act and article 19 of 
the Articles of Agreement of the Bank, and in a manner consistent 
^^ UST uis. 
with the Bank's Special Funds Rules and Regulations. 
"SEC. 13. (a) The United States Special Resources shall be used 
to finance specific high priority development projects and programs 
in developing member countries of the Bank with emphasis on such 
projects and programs in the Southeast Asia region. 
" (b) The United States Special Resources shall be used by the Bank 
only for— 
"(1) making development loans on terms-which may be more 
flexible and bear less heavily on the balance of payments than 
those established by the Bank for its ordinary operations; and 
"(2) providing technical assistance credit^, on a reimbursable 
basis. 
"(c) (1) The United States Special Resources may be expended by ^^^^^^'^XeT'^^ 
the Bank only for procurement in the United States of goods pro-
duced in, or services supplied from, the United States, except that the 
United States Governor, in consultation with the National Advisory 
Council on International Monetary and Financial Tolicies, may allow 
eligibility for procurement in other member countries from the United 
States Special Resources if he determines that such procurement eli-
gibility would materially improve the ability of the Bank to carry 
out the objectives of its special funds resources and would be com-
patible with the international financial position of the United States. 
"(2) The United States Special Resources may be used to pay for 
administrative expenses arising from the use of the United States 
Special Resources, but only to the extent such expenses are not covered 
from the Bank's service fee or income from use of United States Spe-
cial Resources. 
Icl) 
Administrative 
expenses. 
58 
PUBLIC LAW 92-245-MAR. 10, 1972 
[86 STAT. 
Letter of credit. 
Withdrawal 
right. 
Appropriation. 
Expropriation of 
U.S. property, 
loan restriction. 
17 UST 1270. 
Illegal drug 
traffic, loan 
restriction. 
"(d) All financing of programs and projects by the Bank from the 
United States Special Resources shall be repayable to the Bank by the 
borrowers in United States dollars. 
"SEC. 14. (a) The letters of credit provided for in section 15 shall 
be issued to the Bank only to the extent that at the time of issuance 
the cumulative amount of the United States Special Resources pro-
vided to the Bank (A) constitute a minority of all special funds 
contributions to the Bank, and (B) are no greater than the largest 
cumulative contribution of any other single country contributing to 
the special funds of the Bank. 
"(b) The LTnited States Governor of the Bank shall give due. 
regard to the principles of (A) utilizing all special funds resources 
on an equitable basis, and (B) significantly shared participation by 
other contributors in each special fund to which United States Special 
Resources are provided. 
"SEC. 15. The United States Special Resources will be provided to 
the Bank in the form of a nonnegotiable, noninterest-bearing, letter of 
credit which shall be payable to the Bank at par value on demand to 
meet the cost of eligible goods and services, and administrative costs 
authorized pursuant to section 18 (c) of this Act. 
"SEC. 16. Tlie United States shall have the right to withdraw all or 
part of the United States Special Resources and any accrued resources 
derived therefrom under the procedures provided for in section 8.03 of 
the Special Funds Rules and Regulations of the Bank. 
"SEC. 17. For the purpose of providing United States Special 
Resources to the Bank there is hereby authorized to be appropriated 
$60,000,000 for fiscal year 1972 and $40,000,000 for fiscal year 1973, 
all of which shall remain available until expended. 
"SEC. 18. The President shall instruct the United States Executive 
Director of the Asian Development Bank to vote against any loan 
or other utilization of the funds of the Bank for the benefit of any 
country which has— 
"(1) nationalized or expropriated or seized ownership or con-
trol of property owned by any United States citizen or by any 
corporation, partnership, or association not less than 50 per 
centum of which is beneficially owned bv United States citizens; 
"(2) taken steps to repudiate or nullify existing contracts or 
agreements with any United States citizen or any corporation, 
partnership, or association not less than 50 per centum of which 
is beneficially owned by United States citizens; or 
"(3) imposed or enforced discriminatory taxes or other exac-
tions, or restrictive maintenance or operational conditions, or has 
taken other actions, which have the effect of nationalizing, expro-
priating, or otherwise seizing ownership or control of property 
so owned; 
unless the President determines that (A) an arrangement for prompt, 
adequate, and effective compensation has been made, (B) the parties 
have submitted the dispute to arbitration under the rules of the Con-
vention for the Settlement of Investment Disputes, or (C) good faith 
negotiations are in progress aimed at providing prompt, adequate, and 
effective compensation under the applicable principles of international 
law." 
SEC. 2. The Asian Development Bank Act is amended by adding at 
the end thereof the following new section: 
"SEC. 19. The Secretary of the Treasury shall instruct the United 
States Executive Director of the Asian Development Bank to vote 
against any loan or other utilization of the funds of the Bank for the 
benefit of any country with respect to which the President has made a 
determination, and so notified the Secretary of the Treasury, that the 
86 STAT. ] 
PUBLIC LAW 92-246-MAR. 10, 1972 
59 
government of such country has failed to take adequate steps to prevent 
narcotic drugs and other controlled substances (as defined by the Com-
prehensive Drug Abuse Prevention and Control Act of 1970) produced 
f[ ^^^ g^^^^-
or processed, in whole or in part, in such country, or transported jnote. 
through such country, from being sold illegally within thiB jurisdiction 
of such country to United States Government personnel or their 
dependents, or from entering the United States unlawfully. Such 
instruction shall continue in effect until the President determines, and 
so notifies the Secretary of the Treasury, that the government of such 
country has taken adequate steps to prevent such sale or entry of nar-
cotic dru2:s and other controlled substances."' 
Approved March 10, 1972. 
Public Law 92-246 
AN ACT 
To authorize payment and appropriation of the second and tliird installments of 
the United States contributions to the Fund for Special Operations of the 
Inter-American Development Bank. 
March 10, 1972 
[S. 748] 
Be it enacted hy the Senate and House of Rejjrese^itatives of the 
United States of Atnerica in Congress assmnbled, That the Inter-
American Development Bank Act (22 U.S.C. 283 et seq.) is amended 
by adding at the end thereof the following new sections: 
"SEC. 19. (a) The United States Governor of the Bank is authorized 
to pay to the Fund for Special Operations two annual installments of 
$450,000,000 each in accordance with and subject to the terms and 
conditions of the resolution adopted by the Board of Governors on 
December 31, 1970, concerning an increase in the resources of the 
Fund for Special Operations and contributions thereto. 
"(b) There are hereby authorized to be appropriated, without fiscal 
year limitation, the amounts necessary for payment by the Secretary 
of the Treasury of the two annual installments of $450,000,000 each 
for the United States share of the increase in the resources of the Fund 
for Special Operations of the Bank. 
"SEC. 20. The United States Governor of the Bank is authorized to 
agree to amendments to the provisions of the articles of agreement as 
provided in proposed Board of Governors resolutions entitled (a) 
'Amendment of the Provisions of the Agreement Establishing the 
Bank with Respect to Membership and to Related Matters' and (b) 
'Amendment of the Provisions of the Agreement Establishing the 
Bank with Respect to the Election of Executive Directors'. 
"SEC. 21. The President shall instruct the United States Executive 
Director of the Bank to vote against any loan or other utilization of the 
funds of the Bank for the benefit of any country which has— 
"(1) nationalized or expropriated or seized ownership or con-
trol of property owned by any United States citizen or by any cor-
poration, partnership, or association not less than 50 per centum 
of which is beneficially owned by LTnited States citizens; 
"(2) taken steps to repudiate or nullify existing contracts or 
agreements with any United States citizen or any corporation, 
partnership, or association not less than 50 per centum of which 
IS beneficially owned by United States citizens; or 
"(3) imposed or enforced discriminatory taxes or other exac-
tions, or restrictive maintenance or operational conditions, or has 
taken other actions, which have the effect of nationalizing, expro-
priating, or otherwise seizing ownership or control of property 
so owned; 
Inter-American 
Development 
Bank. 
Fund for Special 
Operations, 
U.S. contribution. 
73 Stat. 299; 
84 Stat. 1658. 
Appropriation. 
Expropriation 
of U.S. property, 
loan restriction.