An Act to extend the Agricultural Trade Development and Assistance Act of 1954, and for other purposes.
PL 88-638 (S.2687), enacted 10/08/1964

78 STAT. ] 
PUBLIC LAW 88-638-OCT. 8, 1964 
1035 
Public Law 88-638 
AN A C T 
October 8, 1964 
To extend the Agricultural Trade Development and Assistance Act of 1954, 
[S. 2687] 
and for other purposes. 
Be it enacted hy the Seriate and House of Representatives 
of the 
United States of America in Congress assembled, That the Agricul- xr^de^Deveio^-
tural Trade Development and Assistance Act of 1954, as amended, is ment and Assist-
further amended as follows: 
^"'^^ ^""^ °^ i5 54, 
(1) Section 101 of such Act is amended by striking out in subsec- ^'^5"st'^t."306. 
tion (f) the words "from the government or agencies thereof" and 
? use 1701. 
further by striking the period at the end of subsection (f) and adding 
the following: ", and which are not less favorable than the highest 
of exchange rates obtainable by any other nation.". 
(2) Section 101 of such Act is amended by adding at the end thereof 
(he following new subsection: 
"(g) require such foreign currencies to be convertible to dollars to 
the extent consistent with the effectuation of the purpose of this Act, 
but in any event to the extent necessary to permit that portion of such 
currencies made available for payment of United States obligations to 
be used to meet obligations or charges payable by the United States or 
any of its agencies to the government of the importing country or any 
of its agencies." 
(3) Section' 102(a) of such Act is amended by adding at the end eh°rgeT. ^'"^'^''* 
thereof the following: "The Commodity Credit Corporation shall 
69 stat. 44. 
finance ocean freight charges incurred pursuant to agreements entered 
'' "^^ ^^°2. 
into after December 31, 1964, only to the extent that such charges are 
higher (than would otherwise be the case) by reason of a requirement 
that the commodities be transported in United States flag vessels. 
Such agreements shall require the balance of such charges for trans-
portation in United States vessels to be paid in dollars by the nations 
or organizations with whom such agreements are entered into." 
(4) Section 103(a) of such Act is amended by adding at the end 
^^ ^*^*- ^^^• 
thereof the following: "In presenting his budget, the.President shall 
classify expenditures under this Act as expenditures for international 
affairs and finance rather than for agriculture and agricultural 
resources." 
(5) Effective January 1,1965, section 103 (b) of such Act is amended 
"^^ ^^^^- ^
*
^
^
-
to read as follows: 
"(b) Agreements shall not be entered into under this title during the 
period beginning January 1,1965, and ending December 31,1966, which 
will call for appropriations to reimburse the Commodity Credit Cor-
poration in a total amount in excess of $2,700,000,000 plus any amount 
by which agreements entered into in prior years have called or will call 
for appropriations to reimburse the Commodity Credit Corporation in 
amounts less than authorized for such prior years bv this Act as in effect 
during such years: Provided, That agreements shall not be entered into 
during any calendar year of such period which will call for appropria-
tions to reimburse the Commodity Credit Corporation in amounts in 
excess of $2,500,000,000." 
(6) Section 104 of such Act is amended by striking out in subsection 
^ ^^'^ '^o^^-
(c) the word "military" and inserting after the words "common 
defense" the words "including internal security". 
(7) Section 104 of such Act is amended by striking from subsection ne^s'lolns''"^'' 
(e) the words "not more than 25 per centum of the currencies received "*i!fmi°ations 
pursuant to each such agreement shall be available" and substituting removed. 
"currencies shall also be available to the maximum usable extent." 
1036 
PUBLIC LAW 88-638-OCT. 8, 1964 
[78 STAT. 
7 u s e 1704. 
Advisory com-
mittee, establish-
ment. 
Uses of foreign 
currencies, re-
Transmittal of 
proposal to con-
gressional com-
mittees. 
"Friendly 
nation." 
68 Stat. 457. 
7 u s e 1707. 
(8) Section 104 is amended by adding at the end thereof the 
following: 
"There is hereby established an advisory committee composed of the 
Secretary of Agriculture, the Director of the Bureau of the Budget, 
the Administrator of the Agency for International Development, the 
chairman and the ranking minority member of the House Committee 
on Agriculture, and the chairman and the ranking minority member 
of the Senate Committee on Agriculture and Forestry. 
Such Com-
mittee shall review from time to time the status and usage of foreign 
currencies which accrue under this title, and shall make recommenda-
tions to the President as to ways and means of assuring to the United 
States (1) the maximum benefit from the use of such currencies, mak-
ing special reference to any such currencies which are excess to the 
normal requirements of United States agencies, and (2) the maximum 
return from sales made under this title. Such Committee shall make 
such other recommendations for improving this Act and its admin-
istration as such Committee may deem fit. 
"The committee shall be consulted w^th respect to: (1) policies 
relating to (a) loans under subsections (e) and (g) hereof, (b) the 
degree of convertibility to be required under section 101(g), and (c) 
the amount of currency to be reserved in sales ivgreements for loans to 
private industry under subsection (e) hereof; and (2) each proposal 
to establish an interest rate for dollar sales under title IV higher than 
the minimum provided in section 403. 
"No agreement or proposal to grant any foreign currencies (except 
as provided in subsection (c) of this section), or to use (except pur-
suant to appropriation Act) any principal or interest from loan repay-
ments under this section, shall be entered into or carried out until the 
expiration of thirty days following the date on w^iich such agreement 
or proposal is transmitted by the President to the Senate Committee 
on Agriculture and Forestry and to the House Committee on Agri-
culture, if transmitted while Congress is in session, or sixty days fol-
lowing the date of transmittal if transmitted while Congress is not in 
session, and then only if, between the date of transmittal and the 
expiration of such period there has not been passed by either of the 
two Committees a resolution stating in substance that tliat Committee 
does not favor such agreement or proposal." 
(9) The first proviso at the end of section 104 of such Act is amended 
by striking out the colon at the end thereof and inserting "pursuant 
to agreements entered into on or before December 31, 1964 and to not 
less than 20 per centum in the aggregate of the foreign currencies 
which accrue pursuant to agreements entered into thereafter:". 
(10) Section 104 of such Act is amended by adding at the end 
thereof the following: "Any loan made under the authority of this 
section shall bear interest at such rate as the President may determine 
but not less than the cost of funds to the United States Treasury, taking 
into consideration the current average market yields on outstanding 
marketable obligations of the United States having maturity com-
parable to the maturity of such loans, unless the President shall in 
specific instances upon the recommendation of the advisory com-
mittee herein established designate a different rate." 
(11) Section 107 of such Act is amended by inserting before the 
period at the end thereof a comma and the following: "or (3) for the 
purpose only of title I any nation or area dominated or controlled by 
a Communist government, or (4) for the purpose only of title I any 
nation which permits ships or aircraft under its registry to transport 
to or from Cuba (excluding United States installations in Cuba) any 
equipment, materials, or commodities, so long as Cuba is governed b^ 
the Castro regime. Notwithstanding any other Act, the President is 
7 u s e 
Famine 
etc. 
75 Stat 
7 use 
68 Stat 
7 use 
73 Stat 
7 use 
7 use 
1708. 
relief. 
307. 
1723. 
. 458. 
1431. 
. 609. 
1697. 
1431b. 
78 STAT. ] 
PUBLIC LAW 88-638-OCT. 8, 1964 
1037 
authorized to enter into agreements for the sale of surplus agricultural 
commodities for dollars under title IV with nations which fall within 
the definition of 'friendly nation' for the purpose of that title. In the 
case of any such agreement which would be prohibited by any other 
Act but for the foregoing sentence the maximum payment period shall 
be five years, instead of twenty years." 
"The President is directed that no sales under this Act shall be made 
with any country if he finds such country is (a) an aggressor, in a mili-
tary sense, against any country having diplomatic relations with the 
United States, or (b) using funds, of any sort, from the United States 
for purposes inimical to the foreign policies of the United States". 
(12) Section 108 of such Act is amended by striking out the words 
"six months" and inserting in lieu thereof the word "year". 
(13) Section 203 of such Act is amended (i) by striking out "1961" 
and substituting "1965"; (ii) by striking out "1964" and substituting 
"1966"; (iii) by striking out "$300,000,000", and substituting "$400,-
000,000"; and (iv) by inserting after "charges for general average 
contributions arising out of the ocean transport of commodities trans-
ferred pursuant hereto" the following: "or donated under said section 
416, section 308 of this Act or section 9 of the Act of September 6,1958 
(72 Stat. 1790)". Clauses (i), (ii), and (iii) hereof shall not become 
effective until January 1, 1965. 
(14) Section 203 of the Act is amended by inserting after the third 
sentence of said section the following new sentence: "In addition to 
other funds available for such purposes under any other Act, funds 
made available under this title may be used in an amount not exceed-
ing $7,500,000 annually to purchase foreign currencies accruing under 
title I in order to meet costs (except the personnel and administrative 
costs of cooperating sponsors, distributing agencies, and recipient 
agencies, and the costs of construction or maintenance of any church 
owned or operated edifice or any other edifices to be used for sectarian 
purposes) designed to assure that commodities made available under 
this title or under title I I I are used to carry out more effectively the 
purposes for which such commodities are made available or to promote 
community and other self-help activities designed to alleviate the 
causes of the need for such assistance: Provided^ hoioever^ That such 
funds shall be used only to supplement and not substitute for, funds 
normally available for such purposes from other non-United States 
Government sources."; and by inserting after the word "costs" in the 
last sentence the words "or for the purchase of foreign cjirrencies". 
(15) Sections 109 and 204 of such Act are amended by striking out 
^ ^sc 1709, 
"1964" and inserting "1966". 
^^^^• 
(16) Clause (1) of section 304(a) of such Act is amended by insert- 
7'us'c**i69*3^.* 
ing after the words "Union of Soviet Socialist Republics" the words 
"or the Communist regime in China". 
(17) The first sentence of section 403 of such Act is amended to read 
7^us*c*'i7^33' 
as follows: "Payment for such commodities shall be in dollars with 
interest at such rate as the Secretary may determine but not less than 
the minimum rate required by section 201 of the Foreign Assistance 
Act of 1961 for loans made un(ier that section." 
SEC. 2. Subsection (b) of section 612 of the Foreign Assistance Act rerc°'^s'arer'" 
of 1961, as amended, is amended (1) by redesignating it as subsection '^^77^sfat.^3"85. 
(t) of section 104 of the Agricultural Trade Development and Assist- 
22 use 2362. 
ance Act of 1954, as amended. 
^ ^^*^ ^^°'** 
(2) By inserting after the subsection designation the following: 
"For sale to United States citizens as provided herein."; 
(3) By striking "this Act" and substituting "the Foreign Assistance 
Act of 1961, as amended."; 
1038 
PUBLIC LAW 88-638-OCT. 8, 1%4 
[78 STAT. 
7 u s e 1705. 
Long staple 
cotton, exporta-
tion-
60 Stat. 596. 
50 u s e 98 note. 
63 Stat. 676. 
7 u s e 1301. 
53 Stat. 31. 
7 use 1281. 
68 Stat. 458. 
7 u s e 1431. 
(4) By changing the period at the end of the subsection to a comma 
and adding "except that in the case of any such foreign currencies 
acquired through operations under title I of the Agricultural Trade 
Development and Assistance Act of 1954, as amended, the United 
States dollars received from the sale of such f o r e i ^ currencies shall 
be deposited to the account of the Commodity Credit Corporation and 
shall he treated as a reimbursement to Commodity Credit Corporation 
under section 105 of this Act." 
SEC. 3. Notwithstanding any other provision of law, the Com-
modity Credit Corporation, in order to encourage exports of extra 
long staple cotton which is in surplus supply at competitive world 
prices, is directed to offer for sale, whenever extra long staple cotton 
IS in surplus supply, any extra long staple cotton owned by it (except 
stocks released from the stockpile established pursuant to the Stra-
tegic and Critical Materials Stock Piling Act, as amended) at prices 
not in excess of the prices at which cotton of comparable quality is 
being offered by other exporting countries, on condition that such 
cotton be exported or that an equal quantity of extra long staple 
cotton will be exported within the period specified by the Secretary 
of Agriculture. The Commodity Credit Corporation may accept bids 
in excess of the maximum prices specified herein but shall not reject 
bids at such maximum prices unless a higher bid is received for the 
same cotton. The Secretary of Agriculture shall make a determina-
tion of the amount, if any, of extra long staple cotton which is in 
surplus supply for the 1964-65 marketing year not later than thirty 
days after the effective date of this section and for each succeeding 
marketing year not later than thirty days prior to the beginning of 
each such marketing year. Extra long staple cotton shall be deemed 
to be in surplus supply whenever the Secretary of Agriculture deter-
mines that the total supply of such cotton (under the formula for 
determining the "Total supply" of cotton specified in Section 301(b) 
(16) (C) of the Agricultural Adjustment Act of 1938, as amended, but 
not including cotton released from such stockpile) is in excess of 
estimated domestic consumption and estimated exports of such cotton 
excluding estimated exports made under the authority of this section, 
plus an allowance for carryover equal to fifty per centum of such 
estimated consumption and exporte. 
Exports hereunder shall be 
excluded in making any determination with respect to national 
marketing quotas under the Agricultural Adjustment Act of 1938, 
as amended. 
Nothing herein shall preclude the Corporation from 
accepting bids which may be made at higher than world prices. 
SEC. 4. Section 416 of the Agricultural Act of 1949, as amended, 
is amended by adding the following at the end of such section: "The 
assistance to needy persons provided in (4) above shall, insofar as 
practicable, be directed toward community and other self-help activi-
ties designed to alleviate the causes of the need for such assistance.". 
Approved October 8, 1964.