An Act to amend further the Foreign Assistance Act of 1961, as amended, and for other purposes
PL 88-205 (H.R.7885), enacted 12/16/1963

77 STAT. ] 
PUBLIC LAW 88-205-DEC. 16, 1%3 
379 
ADMINISTRATIVE APPKOPEIATIONS ArTHORIZED 
SEC. 406. There are hereby authorized to be appropriated for the 
fiscal year ending June 30,1964, and for each fiscal year thereafter, such 
sums as may be necessary for the cost of administering the provisions 
of this Act. 
FEDERAL CONTROL NOT AUTHORIZED 
SEC. 407. No department, agency, officer, or employee of the United 
States shall, under authority of this Act, exercise any direction, super-
vision, or control over, or impose any requirements or conditions with 
respect to, the personnel, curriculum, methods of instruction, or admin-
istration of any educational institution. 
Approved December 16, 1963, 11 a.m. 
Public Law 88-205 
A N A C T 
December 16, 1963 
To amend further the Foreign Assistance Act of 1961, as amended, and for 
-
' 
other purposes. 
Be it enacted hy the Senate and House of Representatwes 
of the 
United States ofATnerica in Congress assembled, That this Act may Foreign Assist-
be cited as the "Foreign Assistance Act of 1963". 
^nce Act of i963. 
PAET I 
CHAPTER 1—POLICY 
SEC. 101. Chapter 1 of part I of the Foreign Assistance Act of 1961, 
as amended, is amended as follows: 
(a) In the chapter heading strike out the words "SHORT TITLE AND". 
(b) Section 101, which relates to short title, is repealed. 
Repeal. 
(c) Section 102, which relates to statement of policy, is amended as 
75 stat. 424. 
follows: 
22 u s e 215 1 
(1) Insert between the fourth and fifth paragraphs the follow 
ing additional paragraph: 
"It is the sense of the Congress that the institution of full invest-
ment guaranty pro-ams under title I I I of chapter 2 of this part with 
75 stat. 429; 
all recipient countries would be regarded as a significant measure of ^^ ^^^' 2^^-
self-help by such countries improvmg the climate for private invest- 2184. 
ment both domestic and foreign.". 
(2) In the last sentence of the seventh paragraph, strike out 
"should emphasize long-range development assistance" and insert 
in lieu thereof "shall emphasize long-range development assist-
ance". 
(3) Immediately after the tenth paragraph insert the following 
new paragraph: 
"It is the sense of the Congress that, in the administration of pro-
grams of assistance under chapter 2 of this part, every possible pre- 
75 stat. 426. 
caution should be taken to assure that such assistance is not diverted „i,l^^*^ ^^^^ 
to short-term emergency purposes (such as budgetary purposes, bal-
ance-of-payments purposes, or military purposes) or any other pur-
pose not essential to the long-range economic development of recipient 
countries." 
(4) The first sentence of the last paragraph is amended by strik-
ing out "Finally, the" and substituting "The", and by inserting 
"(including private enterprise within such countries)" immedi-
ately after "countries". 
(5) Immediately after the first sentence of the last paragraph 
insert the following new sentence: "In particular, the Congress 
note. 
22 u s e 215 1. 
22II3. 
380 
PUBLIC LAW 88-205-DEC. 16, 1963 
[77 STAT. 
urges that other industrialized free-world countries increase their 
contributions and improve the forms and terms of their assistance 
so that the burden of the common undertaking, which is for the 
benefit of all, shall be equitably borne by all." 
(6) Immediately after the last paragraph, add the following 
new paragraph: 
"It is the sense of the Congress that assistance authorized by this 
Act should be extended to or withheld from the government of South 
Vietnam, in the discretion of the President, to further the objectives 
of victory in the war again communism and the return to their home-
land of Americans involved in that struggle." 
CHAPTER 2—DEVELOPMENT ASSISTANCE 
TITLE I—^DEVELOPMENT LOAN FUND 
SEC. 102. Title I of chapter 2 of part I of the Foreign Assistance 
Act of 1961, as amended, which relates to the development loan fund, 
is amended as follows: 
75 Stat. 426; 
(a) Amend section 201, which relates to general authority, as 
(1) In the second sentence of subsection (b), which relates to 
considerations to be taken into account in making loans from the 
development loan fund, strike out clauses (1) and (2) and insert 
in lieu thereof the following: "(1) whether financing could be 
obtained in whole or in part from other free-world sources on rea-
sonable terms, including private sources within the United States, 
(2) the economic and technical soundness of the activity to be 
financed, including the capacity of the recipient country to repay 
the loan at a reasonable rate of interest,". 
(2) Subsection (d), which relates to interest rates on develop-
ment loans, is amended by inserting immediately after "in no 
event" the following: "shall such funds (except funds loaned 
22 use 2165. 
under section 205 and funds which prior to the date of enactment 
of the Foreign Assistance Act of 1963 were authorized or com-
mitted to be loaned upon terms which do not meet the minimum 
terms set forth herein) be loaned at a rate of interest of less than 
2 per centum per annum commencing not later than ten years fol-
lowing the date on which the funds are initially made available 
under the loan, during which ten-year period the rate of interest 
shall not be lower than three-fourths of 1 per centum per annum, 
nor". 
(3) Add the following new subsection (f): 
"(f) No assistance shall be furnished under this title for a project 
unless the President determines that such project will promote the 
economic development of the requesting country, taking into account 
the current human and material resource requirements of that country 
and the relationship between the ultimate objectives of the project and 
the overall economic development of the country, and that such project 
specifically provides for appropriate participation by private enter-
prise." 
22 use 2162. 
(b) Amend section 202(a), which relates to authorizations for the 
development loan fund, as follows: 
(1) Strike out "and $1,500,000,000 for each of the next four 
succeeding fiscal years," and insert in lieu thereof ", $1,500,000,000 
for the fiscal year 1963, $925,000,000 for the fiscal year 1964, and 
$1,500,000,000 for each of the next two succeeding fiscal years,". 
(2) Immediately before the.period at the end thereof insert the 
following: ": Promded further^ That, in order to effectuate the 
purposes and provisions of sections 102, 201, 601, and 602 of this 
22 use 215 1, 
Act, not less than 50 per centum of the funds appropriated pur-
2 16 1, 235 1, 
2352. 
77 STAT. ] 
PUBLIC LAW 88-205-DEC. 16, 1963 
381 
suant to this subsection for the fiscal years ending June 30, 1965, 
and June 30,1966, respectively, shall be available for loans made 
to encourage economic development through private entei-prise". 
TITLE II 
DEVELOPMENT GRANTS AND TECHNICAL COOPERATION 
SEC. 103. 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 amended as follows: 
(a) In section 212, which relates to authorization, strike out "1963" 
75 stat. 423; 
and "$300,000,000" and substitute "1964" and "$220,000,000", re- 
^%f^%c\%2. 
spectively. 
(b) Amend section 214, which relates to American schools and hos- 
22 use 2174. 
pitals abroad, as follows: 
(1) In subsection (a) strike out "use, in addition to other funds 
available for such purposes, funds made available for the purposes 
of section 211 for" and substitute the word "furnish". 
(2) In subsection (b) strike out "to use" and "foreign currencies 
accruing to the United States Government under any Act, for pur-
poses of subsection (a) of this section and for" and substitute "to 
furnish" before the word "assistance". 
(3) Add the following new subsection: 
" (c) There is hereby authorized to be appropriated to the President 
for the purposes of this section, for the fiscal year 1964, $19,000,000, 
to remam available until expended. 
Of the sums authorized to be 
appropriated under this subsection, not to exceed $2,200,000 shall be 
available for direct dollar costs in carrying out subsection (b) and 
$4,700,000 shall be available solely for the purchase of foreign cur-
rencies accruing to the United States Government under any Act." 
TITLE III—INVESTMENT GUARANTIES 
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: 
(a) Amend section 221(b), which relates to general authority, as 
75 stat. 429; 
follows: 
'^22'uy2^i8i 
(1) In the first sentence after "wholly owned" insert "(deter-
mined 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 persons other than the parent corporation)". 
(2) In paragraph (1) strike out "$1,300,000,000" in the proviso 
and substitute "$2,500,000,000". 
(3) In paragraph (2) strike out "1964" in the fourth proviso 
and substitute "1965". 
(b) Amend section 222(a), which relates to general provisions, by 
22 use 2u;2. 
striking out "section 221(b)" and substituting "sections 221(b) and 
224". 
^ 
_ 
22 use 2184. 
(c) Amend section 222 (b)j which relates to general provisions, by 
striking out "section 221 (b)" m both places it appears and substituting 
"sections 221 (b) and 224". 
(d) Amend section 222(d), which relates to general provisions, to 
read as follows: 
"(d) Any payments made to discharge liabilities under guaranties 
issued under sections 221(b) and 224 of this part, sections 202(b) and 
413 (b)(4) of the Mutual Security Act of 1954, as amended, and section 
71 stat. 357; 
111(b)(3) of the Economic Cooperation Act of 1948, as amended es^stat. 846. 
(exclusive of informational media guaranties), shall be paid first out 1933."^^ ^^^^' 
of fees referred to in section 222(b) as long as such fees are available, 
62 stat. 143. 
and thereafter shall be paid out of funds, if any^ realized from the sale 
of currencies or other assets acquired in connection with any payments 
382 
PUBLIC LAW 88-205-DEC. 16, 1963 
[77 STAT. 
made to discharge liabilities under such guaranties as long as such 
funds are available, and thereafter shall be paid out of funds hereto-
fore appropriated tor the purpose of discharging liabilities under the 
aforementioned guaranties, and thereafter out of funds realized from 
the sale of notes issued under section 413(b) (4) (F) of the Mutual 
«8 Stat. 846. 
Sccurity Act of 1954, as amended, and section 111(c) (2) of the Eco-
62 a^^ ua^' 
nomic Cooperation Act of 1948, as amended, and finally out of funds 
22 usV 1509. 
hereafter made available pursuant to section 222(f)." 
22 use 2182. 
(e) Amend section 222(e), which relates to general provisions, to 
read as follows: 
"(e) All guaranties issued prior to July 1, 1956, all guaranties 
71 Stat. 357. 
issucd uudcr sections 202(b) and 413(b) (4) of the Mutual Security 
22 use 1872. 
^ c t of 1954, as amended, and all guaranties heretofore or hereafter 
issued pursuant to this title shall be considered contingent obligations 
backed by the full faith and credit of the Government of the United 
States of America. Funds heretofore obligated under the aforemen-
tioned guaranties (exclusive of informational media guaranties) 
together with the other funds made available for the purposes of this 
title shall constitute a single reserve for the payment of claims in 
accordance with section 222(d) of this part." 
(f) Amend section 222 by adding at the end thereof the following 
new subsection: 
"(g) In making a determination to issue a guaranty under section 
22 use 2181. 
221(b), the President shall consider the possible adverse effect of the 
dollar investment under such guaranty upon the balance of payments 
of the United States." 
22 use 2184. 
(g) Amend section 224, which relates to housing projects in Latin 
American countries, as follows: 
(1) In subsection (b) strike out "$60,000,000" and substitute 
"$150,000,000". 
(2) Strike out subsection (c). 
TrrLE V—DEVELOPMENT RESEARCH 
SEC. 105. Section 241 of the Foreign Assistance Act of 1961, as 
75 Stat. 433. 
amcudcd, which relates to development research, is amended by insert-
22 use 2201. 
jj^g " ( a ) " after the section heading and by adding at the end thereof 
the following new subsection: 
"(b) Funds made available to carry out this section may be used to 
conduct research into the problems of population growth." 
TITLE VI 
ALLIANCE FOR PROGRESS 
SEC. 106. Title VI of chaj)ter 2 of part I of the Foreign Assistance 
76 Stat. 257. 
Act of 1961, as amended, which relates to the Alliance for Progress, is 
22^13^^^^^'^^*" 
amended as follows: 
(a) Amend section 251, which relates to generar authority, as 
follows: 
(1) In subsection (h), amend the next to the last sentence 
thereof by inserting immediately after "reasonable terms" the 
following: " (including private sources within the United States), 
the capacity of the recipient country to repay the loan at a reason-
able rate of interest,". 
(2) In subsection (e) strike out "economical" and substitute 
"economically". 
(3) In subsection (f) strike out "Agency for International 
Development" and substitute "agency primarily responsible for 
administering p^rt I". 
(4) Add the following new subsection (g) : 
"(g) In order to carry out the policies of this Act, the President 
shall, when appropriate, assist in promoting the organization, imple-
mentation, and growth of the cooperative movement in Latin America 
77 STAT. ] 
PUBLIC LAW 88-205-DEC. 16, 1963 
383 
as a fundamental measure toward the strengthening of democratic 
institutions and practices and economic and social development under 
the Alliance for Progress." 
(b) Amend section 252, which relates to authorization, as follows: 
76 stat. 25«. 
(1) In the first sentence, strike out "fiscal years 1963 through 
22 use 2212. 
1966, not to exceed $600,000,000 for each such fiscal year" and 
insert in lieu thereof "fiscal years 1963, 1965, and 1966, not to 
exceed $600,000,000 for each such fiscal year, and for use beginning 
in the fiscal year 1964, not to exceed $525,000,000,". 
(2) Immediately after "1963" the second time it appears 
therein, insert the following: "and not to exceed $100,000,000 of 
the funds appropriated pursuant to this section for use beginning 
in fiscal year 1964". 
(3) At the end thereof add the following new sentence: "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 
22 use 2151, 
funds appropriated pursuant to this section for the fiscal years 2353' ^^^^' 
ending June 30, 1965, and June 30, 1966, respectively, shall be 
available for loans made to encourage economic development 
through private enterprise." 
(c) Amend section 253, which relates to fiscal provisions, by insert- 
22 use 2213. 
ing immediately after the first sentence thereof the following new 
sentence: "All receipts in foreign currencies from loans made under 
this title or for nonmilitary assistance purposes under the Mutual 
Security Act of 1954, as amended, or any Act repealed thereby, shall be 
es stau 832. 
available, in addition to other funds available for such purposes, for 
loans on such terms and conditions as the President may specify to 
carry out the purposes of subsection (g) of section 251 of this title, 
and the President may, notwithstanding the provisions of this or any 
other Act, reserve such currencies in such amounts (not to exceed 
$25,000,000) as he shall determine to be necessary to provide for the 
programs authorized by said subsection (g)." 
TITLE VII—EVALUATION OF PROGRAMS 
SEC. 107. Chapter 2 of part I of the Foreign Assistance Act of 
1961, as amended, is further amended by adding at the end thereof a 
75 stat. 426. 
new title as follows: 
.}•{ ^^^ ^ le 1
-
22 u s e 1751 
note. 
2213. 
( ( i TITLE VII—^EVALUATION OF PROGRAMS 
"SEC. 261. The President may appoint a committee to review and 
evaluate the economic development program under this Act, and to 
report to the President and to the Congress its findings." 
CHAPTER 3—INTERNATIONAL ORGANIZAITONS AND PROGRAMS 
SEC. 108. Section 302 of the Foreign Assistance Act of 1961, as 
7
5 stat. 433; 
amended, which relates to international organizations and programs, ^^^f^ikr^^ooo 
is amended by striking out "1963" and "$148,900,000" and substitut-
ing "1964" and "$136,050,000", respectively. 
CHAPTER 4—SUPPORTING ASSISTANCE 
SEC. 109. Section 402 of the Foreign Assistance Act of 1961, as 
amended, which relates to supporting assistance, is amended by strik- 
75 stat. 4345 
ing out "1963" and "$415,000,000" and substituting "1964" and ^^f ,1" ^?- , 
"$380,000,000", respectively. 
' ' "^"^ ''"'• 
384 
PUBLIC LAW 88-205-DEC. 16,1963 
[77 STAT. 
CHAPTER 5—CONTINGENCY FUND 
SEC. 110. Section 451 of the Foreign Assistance Act of 1961, as 
75 Stat. 434; 
amended, which relates to the contingency fund, is amended by strik-
- • "" 
ing out "1963" and "$300,000,000" and substituting "1964" and 
"$160,000,000", respectively. 
76 Stat. 259. 
22 u s e 2261. 
PAKT I I 
CHAPTER 1—POLICY 
SEC. 201. Chapter 1 of part I I of the Foreign Assistance Act of 1961, 
as amended, is amended as follows: 
(a) In the chapter heading strike out the words "SHORT TITLE 
ANn". 
Repeal. 
(b) Sectiou 501, which relates to short title, is repealed. 
75 Stat. 434. 
22 u s e 2301 
note. 
CHAPTER 2—MILITARY ASSISTANCE 
SEC. 202. Chapter 2 of part I I of the Foreign Assistance Act of 
1961, as amended, which relates to military assistance, is amended as 
follows: 
75 Stat. 436. 
(a) lu scction 504(a), which relates to authorization, strike out 
22 use 2312. 
u^he fiscal years 1962 and 1963" and "$1,700,000,000 for each such 
fiscal year, which sums" and substitute "fiscal year 1964" and 
"$1,000,000,000, which", respectively. 
22 use 2313. 
(b) In section 505(a), which relates to utilization of assistance,-
change the period at the end thereof to a colon and add the following 
proviso: ^^Provided, That, except (1) to the extent necessary to fulfill 
prior commitments or (2) to the extent that the President finds, with 
respect to any Latin American country, that the furnishing of military 
assistance under this Act is necessary to safeguard the security of 
the United States or to safeguard the security of a country associated 
with the United States in the Alliance for Progress against overthrow 
of a duly constituted government, and so informs the Congress, no 
further military assistance under any provision of this Act shall be 
furnished to any Latin American country." 
22 use 2318. 
(c) In section 510(a), which relates to special authority, strike out 
"1963" in the first and second sentences and substitute "1964". 
22 use 2319. 
(d) In section 511, which relates to restrictions on military aid to 
Latin America, strike out "$57,500,000" and substitute "$55,000,000, 
of which a part may be used during each fiscal year for assistance in 
implementing a feasible plan for regional defense". 
fe) Add the following new section: 
"SEC. 512. KESTRICTIONS ON MILITARY AID TO AFRICA.—^No military 
assistance shall be furnished on a ^ a n t basis to any country in Africa, 
except for internal security requirements or for programs described 
in section 505(b) of this chapter, unless the President determines 
otherwise and promptly reports such determination to the Committee 
on Foreign Relations of the Senate and the Speaker of the House of 
Representatives. 
The value of grant programs of defense articles 
for African countries in fiscal year 1964, pursuant to any authority 
22 use 2315. 
contained in this part other than section 507, shall not exceea 
$25,000,000." 
77 STAT. ] 
PUBLIC LAW 88-205-DEC. 16,1963 
385 
PART I I I 
CHAPTER 1—GENERAL PROVISIONS 
SEC. 301. Chapter 1 of part I I I of the F o r e i ^ Assistance Act of 
1961, as amended, which relates to general provisions, is amended as 
follows: 
(a) Section 601 (b), which relates to encouragement of private enter- 
75 stat. 43:8. 
prise, is amended as follows: 
^^ ^^^ ^^^ ^
• 
(1) At the end of paragraph (3), strike out "and". 
(2) In paragraph (4), strike out "wherever appropriate" and 
insert in lieu thereof "to the maximum extent practicable", and 
strike out the period at the end thereof and substitute a semi-
colon. 
(3) Add the following new paragraphs at the end thereof: 
"(5) take appropriate steps to discourage nationalization, 
expropriation, confiscation, seizure of ownership or control, of 
private investment and discriminatory or other actions having the 
effect thereof, undertaken by countries receiving assistance under 
this Act, which divert available resources essential to create new 
wealth, employment, and productivity in those countries and 
otherwise impair the climate for new private investment essential 
to the stable economic growth and development of those coun-
tries; and 
"(6) utilize wherever practicable the services of United States 
private enterprise (including, but not limited to, the services of 
experts and consultants in technical fields such as engineering)." 
(b) At the end of section 601 add the following new subsection: 
"(c)(1) There is herebj^ established an Advisory Committee on 
Advisory com-
Private Enterprise in Foreign Aid. The Advisory Committee shall mittee on Private 
carry out studies and make recommendations for achieving the most po^e^n Aid" 
effective utilization of the private enterprise provisions of this Act 
Establishment. 
to the head of the agency charged with administering the program 
under part I of this Act, who shall appoint the Committee. 
22 use 2151 
" (2) Members of the Advisory Committee shall represent the public "°*^-
interest and shall be selected from the business, labor and professional 
world, from the universities and foundations, and from among persons 
with extensive experience in government. The Advisory Committee 
shall consist of not more than nine members, and one of the members 
shall be designated as chairman. 
" (3) Members of the Advisory Committee shall receive no compen-
sation for their services but shall be entitled to reimbursement in 
accordance with section 5 of the Administrative Expenses Act of 1946 
(5 U.S.C. 73b-2) for travel and other expenses incurred in attending 
eo stat. SOB. 
meetings of the Advisory Committee. 
"(4) The Advisory Committee shall, if possible, meet not less fre-
quently than once each month, shall submit such interim reports as the 
Committee finds advisable, and shall submit a final report not later 
than December 31,1964, whereupon the Committee shall cease to exist. 
Such reports shall be made available to the public and to the Congress. 
" (5) The expenses of the Committee, which shall not exceed $50,000, 
shall be paid from funds otherwise available under this Act." 
(c) Section 611(b), which relates to completion of plans and cost 22 use 2361. 
estimates, is amended bj^ striking out "circular A-47 of the Bureau of 
the Budget" and substituting "the Memorandum of the President 
dated May 15, 1962,". 
(d) Section 612, which relates to use of foreign currencies, is 22 use 23 62. 
amended as follows: 
(1) Insert " ( a ) " after the section heading. 
93-025 0-64-27 
note. 
386 
PUBLIC LAW 88-205-DEC. 16,1963 
[77 STAT. 
(2) Add the following new subsection (b) : 
"(b) In order to provide for the foreign currency needs of United 
States citizens for travel or other purposes, the Secretary of the Treas-
ury may make available for sale for United States dollars to such 
citizens, at United States embassies or other convenient locations, for-
eign currencies acquired by the United States through operations 
68 Stat. 832. 
uuder this Act, the Mutual Security Act of 1954, as amended, or any 
22 use 1751 
^Qj^ repealed thereby, or the Agricultural Trade Development and 
"°68*stat. 454. 
Assistauce Act of 1954, as amended, which (1) he determines to be in 
7 use 1691 
excess of the needs of departments and agencies of the United States 
'*^* 
for such currencies, and (2) are not prohmited from such use or com-
mitted to other uses by agreement heretofore entered into with another 
country. United States dollars received from the sale of foreign cur-
rencies under this subsection shall be deposited in the Treasury as 
miscellaneous receipts." 
75 Stat. 444; 
(e) Sectiou 620, which relates to prohibitions against furnishing 
'2^2*use^2370. 
assistance to Cuba and certain other countries, is amended as follows: 
(1) Subsection (a) is amended as follows: 
(A) Insert "(1)" immediately after "(a)". 
(B) At the end thereof add the following new paragraphs: 
"(2) Except as may be deemed necessary by the President in the 
interest of the United States, no assistance shall be furnished under 
this Act to any government of Cuba, nor shall Cuba be entitled to 
receive any quota authorizing the importation of Cuban sugar into the 
United States or to receive any other benefit under any law of the 
United States, until the President determines that such government 
lias taken appropriate steps according to international law standards 
to return to United States citizens, and to entities not less than 50 per 
centum beneficially owned by United States citizens, or to provide 
equitable compensation to such citizens and entities for property taken 
from such citizens and entities on or after January 1, 1959, by the 
Government of Cuba. 
"(3) No funds authorized to be made available under this Act 
(except under sectio^n 214) shall be used to furnish assistance to any 
country which has failed to take appropriate steps, not later than 60 
days after the date of enactment of the Foreign Assistance Act of 
1963— 
"(A) to prevent ships or aircraft under its registry from trans-
porting to Cuba (other than to United States installations in 
Cuba)— 
"(i) any items of economic assistance, 
"(ii) any items which are, for the purposes of title I of the 
65 Stat. 645. 
MutualDefeuse Assistance Control Act of 1951, as amended, 
arms, ammunition and implements of war, atomic energy 
materials, petroleum, transportation materials of strategic 
value, or items of primary strategic significance used in the 
production of arms, ammunition, and implements of war, or 
"(iii) any other equipment, materials, or commodities, 
so long as Cuba is governed by the Castro regime; and 
"(B) to prevent ships or aircraft under its registry from trans-
porting any equipment, materials, or commodities from Cuba 
(other than from United States installations in Cuba) so long as 
Cuba is governed by the Castro regime." 
(2) Subsection (e) is amended to read as follows: 
"(e) The President shall suspend assistance to the government of 
any country to which assistance is provided under this or any other 
22 u s e 1611-
1611d. 
77 STAT. ] 
PUBLIC LAW 88-205-DEC. 16, 1963 
387 
Act when the government of such country or any government agency 
or subdivision within such country on or after January 1, 1962-— 
"(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 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 beneficially 
owned by United States citizens, or 
"(3) has imposed or enforced discriminatory taxes or other 
exactions, or restrictive maintenance or operational conditions, 
or has taken other actions, 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, in the event of a referral to the Foreign Claims Settlement Com-
mission of the United States within such period as provided herein, 
not more than twenty days after the report of the Commission is 
received) to take appropriate steps, which may include arbitration, 
to discharge its obligations under international law toward such 
citizen or entityj including speedy compensation for such property in 
convertible foreign exchange, equivalent to the full value thereof, 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 the President 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. 
"Upon request of the President (within seventy days after such 
action referred to in paragraphs (1), (2), or (3) of this subsection), 
the Foreign Claims Settlement Commission oi the United States 
(established pursuant to Eeorganization Plan No. 1 of 1954, 68 Stat. 
1279) is hereby authorized to evaluate expropriated property, deter- 
s use 1332-
mining the full value of any property nationalized, expropriated, or ^^ note. 
seized, or subjected to discriminatory or other actions as aforesaid, for 
purposes of this subsection and to render an advisory report to the 
President within ninety days after such request. Unless authorized 
by the President, the Commission shall not publish its advisory report 
except to the citizen or entity owning such property. There is hereby 
authorized to be appropriated such amount, to remain available until 
expended, as may be necessary from time to time to enable the Com-
mission to carry out expeditiously its functions under this subsection." 
(3) Add the following new subsections: 
"(i) No assistance shall he provided under this or any other Act, 
and no sales shall be made under the Agricultural Trade Development 
and Assistance Act of 1954, to any country w*hich the President deter- 
es stat. 454. 
mines is engaging in or preparing for aggressive military efforts nJe"^^ ^^^' 
directed against— 
"(iT the United Statesj 
"(2) any country receiving assistance under this or any other 
Act, or 
"(3) any country to which sales are made under the Agricul-
tural Trade Development and Assistance Act of 1954, 
until the President determines that such military efforts or prepara-
tions have ceased and he reports to the Congress that he has received 
assurances satisfactory to him that such military efforts or prepara-
tions will not be renewed. This restriction may not be waived pur-
suant to any authority contained in this Act. 
388 
PUBLIC LAW 88-205-DEC. 16, 1963 
[77 STAT. 
"(j) No assistance under this Act shall be furnished to Indonesia 
unless the President determines that the furnishing of such assistance 
is essential to the national interest of the United States. The Presi-
dent shall keep the Foreign Relations Committee and the Appropria-
tions Committee of the Senate and the Speaker of the House of Repre-
sentatives fully and currently informed of any assistance furnished to 
Indonesia under this Act. 
"(k) Until the enactment of the Foreign Assistance Act of 1964 or 
other general legislation, during the calendar year 1964, authorizing 
additional appropriations to carry out programs of assistance under 
this Act, no assistance shall be furnished under this Act to any country 
for construction of any productive enterprise with respect to which the 
aggregate value of such assistance to be furnished by the United States 
will exceed $100,000,000. No other provision of this Act shall be con-
strued to authorize the President to waive the provisions of this 
subsection. 
" (1) No assistance shall be provided under this Act after December 
31, 1965, to the government of any less developed country which has 
failed to enter into an agreement with the President to institute the 
75 Stat. 429; 
iuvcstmeut guaranty program under section 221(b) (1) of this Act, 
^^22'usc^ 2181 
providing protection against the specific risks of inconvertibility under 
subparagraph (A), and expropriation or confiscation under subpara-
graph (B), of such section 221(b) (1). 
"(m) No assistance shall be furnished on a grant basis under this 
Act to any economically developed nation capable of sustaining its own 
defense burden and economic gj-owth, except (1) to fulfill firm commit-
ments made prior to July 1, 1963, or (2) additional orientation and 
training expenses under part I I hereof during fiscal year 1964 in an 
amount not to exceed $1,000,000." 
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 621, which relates to exercise of functions, by 
76^statr26^2!^' 
Striking out the last sentence thereof and substituting the following: 
22 use 2381. 
"In providing technical assistance under this Act, uie head of any 
such agency or such officer shall utilize, to the fullest extent practicable, 
goods and professional and other services from private enterprise on 
a contract basis. In such fields as education, health, housing, or agri-
culture, the facilities and resources of other Federal agencies shall 
be utilized when such facilities are particularly or uniquely suitable 
for technical assistance, are not competitive with private enterprise, 
and can be made available without interfering unauly with domestic 
programs." 
75 Stat. 447; 
(b) Amend section 624, which relates to statutory officers, as 
76^Stat.^262. 
foUoWS : 
(1) In subsection (a) (2) strike out "two shall have the rank 
of Deputy Under Secretaries" and substitute "one shall have the 
rank of a Deputy Under Secretary". 
(2) In subsection (a) (3) strike out "nine" and substitute 
"ten". 
(3) In subsection (b) strike out "paragraphs (2) and" and 
substitute "paragraph". 
(4) In subsection (d) (1) after the words "Deputy Inspector 
General, Foreign Assistance," where they first appear insert "who 
shall be appointed by the President by and with the advice and 
consent of the Senate,", and strike out "$19,500" and substitute 
"$20,000". 
77 STAT. ] 
PUBLIC LAW 88-205-DEC. 16, 1963 
389 
(c) Amend section 626(b), which relates to experts, consultants, 
75 stat. 451. 
and retired officers, as follows: 
^^ ^^^ ^
•
^
^
^
* 
(1) Strike out the entire first sentence. 
(2) In the second- sentence strike out "Nor shall such service" 
and substitute "Service of an individual as an expert or con-
sultant under subsection (a) of this section shall not". 
(d) Amend section 631, which relates to missions and staffs abroad, 
22 use 2391. 
by adding the following new subsection (c) : 
" (c) The President may appoint any United States citizen who is 
not an employee of the United States Government or may assign any 
United States citizen who is a United States Government employee to 
serv^e as Chairman of the Development Assistance Committee or any 
successor committee thereto of the Organization for Economic Cooper-
ation and Development upon election thereto by members of said Com-
mittee, and, in his discretion, may terminate such appointment or 
assignment, notwithstanding any other provision of law. 
Such person 
may receive such compensation and allowances as are authorized by the 
Foreign Service Act of 1946, as amended, not to exceed those authorized 
60 stat. 999. 
for a chief of mission, class 2, within the meaning of said Act, as the 
^^ ^^^ ^^ ^ 
President may determine. 
Such person may also, in the President's 
discretion, receive any other benefits and perquisites available under 
this Act to chiefs of special missions or staffs outside the United States 
established under this section." 
(e) Amend section 635, which relates to general authorities, by add- 
22 use 2395. 
ing the following new subsection (k) : 
"(k) Any cost-type contract or agreement (including grants) 
entered into with a univei*sity, college, or other educational institution 
for the puipose of cariying out programs authorized by part I may 
provide for the payment of the reimbursable indirect costs of said 
university, college, or other educational institution on the basis of 
predetermined fixed-percentage rates applied to the total, or an element 
thereof, of the reimbursable direct costs incurred." 
(f) Amend section 636, which relates to provisions on uses of funds, 
22 use 2396. 
by adding the following new subsection (h) : 
"(h) In carrying out programs under this Act, the President shall 
take all appropriate steps to assure that, to the maximum extent pos-
sible, (1) countries i-eceiving assistance under this Act contribute 
local currencies to meet the cost of contractual and other services 
rendered in conjunction with such programs, and (2) foreign cur-
rencies owned by the United States are utilized to meet the costs of 
such contractual and other services." 
(g) Amend section 637(a), which 
relates l o 
administrative 
76 stat. 2(52. 
expenses, by striking out "1963" and "$53,000,000" and substituting 
22 use 2397. 
"1964" and "$54,000,000", respectively. 
(h) After section 637 add the following new section: 
"SEC. 638. PEACE CORPS ASSISTANCE.—No provision of this Act 
shall be construed to prohibit assistance to any country pursuant to 
the Peace Corps Act, as amended; the Mutual Educational and Cul- 
75 stat. 6:12. 
tural Exchange Act of 1961, as amended; or the Export-Import Bank ^J^^ ^^^ 2^°^ 
Act of 1945, as amended: or famine or disaster relief, including such " 75'stat. 527. 
relief through voluntary agencies, under title II of the Agricultural 
22 use 2451 
Trade Development and Assistance Act of 1954, as amended." 
'^°i%\. 
^ 
' 
59 btat. 5^:6. 
12 u s e 635 
CHAITER 3—MISCELLANEOUS PROVISIONS 
note. 
68 stat. 45 7. 
Six^. 303. Section 644(f) of the Foreign Assistance Act of 1961, as ^/^"^^ ^^^^" 
amended, which relates to definition of defense services, is amended 
75 stat. 461. 
by inserting "including orientation" after "training" the first time it 
22 use 2403. 
appears. 
390 
PUBUC LAW 88-205-DEC. 16, 1963 
[77 STAT. 
75 Stat. 462. 
22 u s e 2404. 
68 Stat. 832. 
22 u s e 1751 
note. 
74 Stat. 869. 
76 Stat. 876. 
19 u s e 1861. 
75 Stat. 306. 
7 u s e 170 1. 
68 Stat. 457. 
7 u s e 1705. 
7 u s e 1706. 
Effective date. 
7 u s e 1701-
1709. 
7 u s e 1722. 
SEC. 304. Section 645 of the Foreign Assistance Act of 1961, as 
amended, which relates to unexpended balances, is amended to read as 
follows: 
"SEC. 645. UNEXPENDED BALANCES.—Unexpended balances of funds 
made available pursuant to this Act, the Mutual Security Act of 1954, 
as amended, or Public Law 86-735 are hereby authorized to be con-
tinued available for the general purposes for which appropriated, and 
may at any time be consolidatedj and, in addition, may be consolidated 
with appropriations made available for the same general purposes 
under the authority of this Act." 
PAKT IV—AMENDMENTS TO OTHER LAWS 
SEC. 401. The Act to provide for assistance in the development of 
Latin America and in the reconstruction of Chile, and for other pur-
poses (Public Law 86-735, 22 U.S.C. 1942 et seq.), is amended as 
follows: 
(a) Insert following the enacting clause "That this Act may be cited 
as the 'Latin American Development Act' ". 
(b) 
In 
section 2 strike out 
"$500,000,000" and 
substitute 
"$680,000,000". 
SEC. 402. Section 231 of the Trade Expansion Act of 1962 (Public 
Law 87-794, approved October 11,1962) is amended as follows: 
(a) Insert" (a)" before the words "The President shall". 
(b) Add the following new subsection: 
"(b) The President may extend the benefits of trade agreement con-
cessions made by the United States to products, whether imported 
directly or indirectly, of a country or area within the purview of sub-
section (a) which, at the time of enactment of this subsection, was 
receiving trade concessions, when he determines that such treatment 
would be important to the national interest and would promote the 
independence of such country or area from domination or control by 
international communism, and reports this determination and the rea-
sons therefor to the Congress." 
SEC. 403. The Agricultural Trade Development and Assistance Act 
of 1954, as amended (7 U.S.C. 1691 et seq.), is amended as follows: 
(a) Section 101 (f) is amended to read as follows: 
"(f) obtain rates of exchange applicable to the sale of com-
modities under such agreements which are not less favorable than 
the highest of exchange rates legally obtainable from the Govern-
ment or agencies thereof in the respective countries." 
(b) Section 105 is amended by adding at the end thereof the follow-
ing new sentence: "The President shall utilize foreign currencies 
received pursuant to this title in such manner as will, to the maximum 
extent possible, reduce any deficit in the balance of payments of the 
United States." 
(c) (1) Section 106 is amended by adding at the end thereof a new 
sentence as follows: "For the purposes of this title and title IV, the 
term 'surplus agricultural commodity' shall include any domestically 
produced fishery product (not including fish flour until approved by 
the Food and Drug Administration) if the Secretary of the Interior 
has determined that such product is at the time of exportation in excess 
of domestic requirements, adequate carryover, and anticipated exports 
for dollars." 
(2) The amendment made by paragraph (1) of this subsection shall 
not be effective for purposes of title I of the Agricultural Trade Devel-
opment and Assistance Act of 1954, as amended, until January 1, 
1965. 
(d) Section 202 is amended by striking out "economic development" 
and inserting in lieu thereof "economic and community development". 
77 STAT. ] 
PUBLIC LAW 88-205-DEC. 16, 1963 
391 
SEC. 404. (a) Section 571(a) of the Foreign Service Act of 1946, as 
74 stat. 833. 
amended, is amended by changmg the final period to a colon and adding 
22 use 9e i. 
the following; '•'•Provided^ That in individual cases when personally 
approved by the Secretary further extension may be made." 
(b) Section 911(2) of the Foreign Service Act of 1946, as amended, 
eo stat, 1026. 
is amended by inserting immediately after "on authorized home leave;" 
22 use 1136. 
the following: "accompanying him for representational purposes on 
authorized travel within the country of his assignment or, at the discre-
tion of the Secretary, outside the country of his assignment, but in no 
case to exceed one member of his family;". 
(c) Title I X of the Foreign Service Act of 1946, as amended, is 
22 use 1131-
amended by striking out section 921 (d), relating to use of Government ^ ^^*-
vehicles, and by inserting immediately after section 913 the following 
70 stat. 705. 
new section: 
22 use 1139. 
" U S E o r GOVERNMENT OWNED OR LEASED VEHICLES 
"SEC. 914. Notwithstanding the provisions of section 5 of the Act 
of July 16,1914, as amended (5 U.S.C. 78), the Secretary may author- 
eo stat. sio. 
ize any principal officer to approve the use of Government owned or 
leased vehicles located at his post for transportation of United States 
Government employees and their dependents when public transporta-
tion is unsafe or not available." 
(d) Title X of the Foreign Service Act of 1946, as amended, is 
22 use soi 
amended by adding at the end thereof the following: 
slo*^' *°^ 
"PART I—EDUCATIONAL FACILITIES 
"SEC. 1081. Whenever the Secretary determines that educational 
facilities are not available, or that existing educational facilities are 
inadequate, to meet the needs of children of American citizens sta-
tioned outside the United States engaged in carrying out Government 
activities, he is authorized, in such manner as he deems appropriate 
and under such regulations as he may prescribe, to establish, operate, 
and maintain primary schools, and school dormitories and related 
educational facilities for primary and secondary schools, outside the 
United States, or to make grants of funds for such purposes, or other-
Avise provide for such educational facilities. The provisions of the 
Foreign Service Buildings Act, 1926, as amended, and of paragraphs 
44 stat. 403. 
(h) and (i) of section 3 of the Act entitled 'An Act to provide certain 
^^ "^^ '^^^' 
basic authority for the Dejpartment of State', approved August 1, 
1956 (5 U.S.C. 170h(h) and I70h(i)), may be utilized by the Secretary 
70 stat. 890. 
in providing assistance for educational facilities. 
Assistance may 
include, but shall not be limited to, hiring, transporting, and payment 
of teachers and other necessary personnel." 
SEC. 405. The Act entitled "An Act to provide certain basic author-
ity for the Department of State", approved August 1,1956 (5 U.S.C. 
I70f-l70t), is amended by inserting immediately after section 12 the 
following new section: 
"SEC. 13. There is hereby established a working capital fund for the 
Department of State, which shall be available without fiscal year 
limitation, for expenses (including those authorized by the Foreign 
Service Act of 1946, as amended) and equipment, necessary for main- 
eo stat. 999 
tenance and operation in the city of Washington and elsewhere of 
(1) central reproduction, editorial, data processing, audiovisual, 
library and administrative support services; (2) central supply serv-
ices for supplies and equipment (including repairs), and (3) such 
other administrative services as the Seci-etary, with the approval of 
the Bureau of the Budget, determines may be performed more advan-
tageously and more economically as central services. The capital of 
22 use 801 
note. 
392 
PUBLIC LAW 88-206-DEC. 17, 1963 
[77 STAT. 
the fund shall consist of the amount of the fair and reasonable value of 
such supply inventories, equipment, and other assets and inventories 
on order, pertaining to the services to be carried on by the fund, as the 
Secretary may transfer to the fund, less the related liabilities and 
unpaid obligations, together with any appropriations made for the 
purpose of providing capital. Not to exceed $750,000 in net assets 
shall be transferred to the fund for purposes of providing capital. 
The fund shall be reimbursed, or credited with advance payments, 
from applicable appropriations and funds of the Department of State, 
other Federal agencies, and other sources authorized by law, for sup-
plies and services at rates which will approximate the expense of 
operations, including accrual of annual leave and depreciation of plant 
and equipment of the fund. The fund shall also be credited with other 
receipts from sale or exchange of property or in payment for loss or 
damage to property held by the fund. 
There shall be transferred into 
the Treasury as miscellaneous receipts, as of the close of each fiscal 
year, earnings which the Secretary determines to be excess to the needs 
of the fund. 
There is hereby authorized to be appropriated such 
amounts as may be necessary to provide capital for the fund." 
SEC. 406. The first sentence of the first section of the Act entitled 
"An Act to authorize participation by the United States in parlia-
mentary conferences of the North Atlantic Treaty Organization", 
22 use 1928a. 
approvcd July 11,1956 (70 Stat. 523), is amended to read as follows: 
"That not to exceed eighteen Members of Congress shall be appointed 
to meet jointly and annually with representative parliamentary groups 
from other NATO (North Atlantic Treaty Organization) members, 
for discussion of common problems in the interests of the maintenance 
of pea<;e and security in the North Atlantic area." 
Approved December 16, 1963. 
Public Law 88-206 
December 17, 1963 
AN ACT 
[H. R. 6518] 
,p^ improve, strengthen, and accelerate programs for the prevention and 
abatement of air pollution. 
Be it enacted hy the Senate and House of Representatives 
of the 
Clean Air Act. 
United Statcs of America in Congress assembled, That the Act of 
69 Stat. 322; 
July 14,1955, as amended (42 U.S.C. 1857-1857g), is hereby amended 
73 Stat. 646. 
to read as foUows: 
"FINDINGS AND PURPOSES 
"SECTION 1. (a) The Congress finds— 
"(1) that the predominant part of the Nation's population is 
located in its rapidly expanding metropolitan and other urban 
areas, which generally cross the Doundary lines of local jurisdic-
tions and often extend into two or more States; 
"(2) that the growth in the amount and complexity of air 
pollution brought about by urbanization, industrial development,