An Act to amend further the Foreign Assistance Act of 1961, ass amended, and for other purposes
PL 89-583 (H.R.15750), enacted 09/19/1966

80 STAT. ] 
PUBLIC LAW 89-583-SEPT. 19, 1966 
795 
Public Law 89-581 
A N A C T 
September 16, 1966 
To rename a lock of the Cross-Florida Barge Canal the "R. N. Bert Dosh lock". 
[H. R. 790] 
R. N. Bert Dosh 
lock. 
Be it enacted hy tlie Senate aTid House of Represemtatives of the 
United States of America in Congress asseTnbled, That the Silver 
Springs lock of the Cross-Florida Barge Canal shall, after the date '"obsignation. 
of enactment of this Act, be known and designated as the "R. N. 
Bert Dosh lock". Any law, regulation, map, document, or record 
of the United States in which such lock is referred to shall be held 
and considered to refer to such lock as the "R. N. Bert Dosh lock". 
Approved September 16, 1966. 
Public Law 89-582 
A N A C T 
September 16, 1966 
To amend the Ship Mortgage Act, 1920, relating to fees for certification of certain 
[H. R. sooo] 
documents, and for other puriwses. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of ATnerica in Congress assembled, That the third sen- A^,'^i92o'*fmend-
tence of subsection I of the Ship Mortgage Act, 1920 (41 Stat. 1002; ments. 
46 U.S.C. 927), is amended by striking out the period at the end there- 
Documents. 
of and inserting in lieu thereof a comma and the following: "except 
that if a person requesting certification of more than ten copies of a 
mortgage Which includes more than one vessel, furnishes such copies 
to the collector, the fee for certification of each copy in excess of ten 
shall be $1 per copy." 
SEC. 2. (a) Subsection E of the Ship Mortgage Act, 1920 (42 
U.S.C. 923), is amended by inserting at the end thereof the following: 
^i stat. loo i. 
"The requirement of this subsection that a copy of a preferred 
mortgage be placed and retained on board the mortgaged vessel shall 
not apply in the case of a mortgaged vessel which is not self-propelled 
(including but not limited to, barges, scows, lighters, and car floats)." 
(b) The amendment made by subsection (a) of this section shall 
apply to all mortgages whether made before, on, or after the date of 
enactment of this section. 
Approved September 16, 1966. 
Public Law 89-583 
A N A C T 
September 19, 1966 
To amend further the Foreign Assistance Act of 1961, as amended, and for 
[H. R. 1575Q] 
other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may anc^AcTot^igeT 
be cited as the "Foreign Assistance Act of 1966". 
796 
PUBLIC LAW 89-583-SEPT. 19, 1966 
[80 STAT. 
PART I 
CHAPTER 1—POLICY 
SEC. 101. Section 102 of the Foreign Assistance Act of 1961, as 
79^st^t*^653^^' 
amended, which relates to the statement of policy, is amended as 
22 u s e 2151. 
f o l l o w s : 
(a) In the last paragraph, immediately before the period at the end 
thereof, insert the following: "and to provide adequate compensation 
for such damage or destruction". 
(b) At the end of section 102 add the following new paragraph: 
"The furnishing of economic, military, or other assistance under this 
Act shall not be construed as creating a new commitment or as affect-
ing any existing commitment to use armed forces of the United States 
for the defense of any foreign country." 
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: 
71 Stir 380^^' 
(^) Section 201 (b), which relates to general authority to make loans 
22 use 2161. 
from the Development Loan Fund, is amended as follows: 
(1) In the second sentence, strike out the word "and" at the end of 
clause (5) and strike out the period at the end of the sentence and insert 
a comma and the following: "(7) the degree to which the recipient 
country is making progress toward respect for the rule of law, freedom 
of expression and of the press, and recognition of the importance of 
individual freedom, initiative, and private enterprise, (8) the degree 
to which the recipient country is taking steps to improve its climate 
for private investment, and (9) whether or not the activity to be 
financed will contribute to the achievement of self-sustaining growth." 
(2) At the end thereof add the following new sentence: "Funds 
made available under this title, except funds made available pursuant 
Post, p. 79 7. 
^
Q section 205, shall not be used to make loans in more than ten countries 
in any fiscal year, except that such loans may be made in any additional 
country after at least thirty days shall have elapsed following the 
^^t%!^ *° *^°"' 
submission by the President to the Committee on Foreign Relations of 
the Senate and the Speaker of the House of Representatives of a 
report stating that the making of loans in such additional country 
during such fiscal year is in the national interest and giving his reasons 
therefor." 
22 use 2162. 
^]3^ Section 202(a), which relates to authorization for the Develop-
ment Loan Fund, is amended as follows: 
(1) Strike out "$1,200,000,000" and all that follows down through 
"succeeding fiscal years" and insert in lieu thereof "$685,000,000 for 
the fiscal year 1967 and $750,000,000 for each of the fiscal years 1968 
and 1969". 
80 STAT. ] 
PUBLIC LAW 89-583-SEPT. 19, 1966 
797 
(2) In the second proviso, strike out "June 30, 1965, and June 30, 
1966" and insert in lieu thereof "June 30,1967, through June 30,1969". 
(c) Amend section 205, which relates to use of international lend- 
^| ^*|^- ^^^^ 
ing organizations, to read as follows: 
"SEC. 205. In order to serve the purposes of this title and the policy 
contained in section 619, 10 per centum of the funds made available 
^| ^^l^- ^^^^ 
for this title shall be available only for transfer, on such terms and 
conditions as the President determines, to the International Develop-
ment Association, the International Bank for Reconstruction and De-
velopment, or the International Finance Corporation for use pur-
suant to the laws governing United States participation in such in-
stitutions, if any, and the governing statutes thereof and without 
regard to section 201 or any other requirements of this or any other 
Act." 
TITLE II—TECHNICAL COOPERATION AND DEVELOPMENT GRANTS 
SEC. 103. Title I I of chapter 2 of part I of the Foreign Assistance 
Act of 1961, as amended, which relates to technical cooperation and 
development grants, is amended as follows: 
(a) Section 211, which relates to general authority, is amended as 
H ^*|^- ^27. 
follows: 
(1) In the second sentence of subsection (a) strike out "and" at 
the end of clause (5) and strike out the period at the end of the sen-
tence and insert a comma and the following: "(7) the degree to which 
the recipient country is making progress toward respect for the rule 
of law, freedom of expression and of the press, and recognition of the 
importance of individual freedom, initiative, and private enterprise, 
and (8) whether or not the activity to be financed will contribute to the 
achievement of self-sustaining growth." 
(2) At the end of subsection (a), add the following new sentence: 
"The authority of this title shall not be used to furnish assistance to 
more than forty countries in any fiscal year, except that such assist-
ance may be furnished to any additional country after at least thirty 
days shall have elapsed following the submission by the President to ^ Repo't to 
the Committee on Foreign Relations of the Senate and the Speaker 
of the House of Representatives of a report stating that the furnishing 
of assistance to such additional country during such fiscal year is in 
the national interest and giving his reasons therefor." 
(3) At the end of section 211, add the following new subsections: 
"(d) Not to exceed $10,000,000 of funds made available under sec-
tion 212, or under section 252 (other than loan funds), may be used 
Ij ^g^ 2212' 
for assistance, on such terms and conditions as the President may 
specify, to research and educational institutions in the United States 
for the purpose of strengthening their capacity to develop and carry 
out programs concerned wth the economic and social development of 
less developed countries. 
"(e) In any developing countries or areas where food production is 
not increasing enough to meet the demands of an expanding popula-
tion, or diets are seriously deficient, a high priority shall be given to 
efforts to increase agricultural production, particularly the establish-
ment or expansion of adaptive research programs designed to increase 
acre-yields of the major food crops. Such research programs, to the 
greatest extent possible, should be based on cooperative undertakings 
between universities and research institutions in the developing coun-
tries and United States universities and research institutions." 
(b) Section 212, which relates to authorization, is amended by strik- 
^^ ^*^'' ^^'*" 
ing out "1966" and inserting in lieu thereof "1967". 
65-300 0-67—53 
79 Stat. 654. 
22 use 2181. 
798 
PUBLIC LAW 89-583-SEPT. 19, 1966 
[80 STAT. 
22 use 2174. 
^^^ Section 214, which relates to American schools and hospitals 
abroad, is amended as follows: 
75 Stat. 428. 
^^^ jj^ subsectioH (b), strike out "to hospitals outside the United 
States founded or sponsored by United States citizens and serving as 
centers for medical education and research" and insert in lieu thereof 
"to institutions referred to in subsection (a) of this section, and to 
hospital centers for medical education and research outside the United 
States, founded or sponsored by United States citizens". 
(2) Subsection (c), which relates to authorization, is amended by 
striking out "1966, $7,000,000" and inserting in lieu thereof "1967, 
$10,989,000". 
(3) At the end of such section add the following new subsection: 
"(d) There is authorized to be appropriated to the President for 
the purposes of section 214(b), in addition to funds otherwise avail-
able for such purposes, for the fiscal year 1967, $1,000,000 in foreign 
currencies which the Secretary of the Treasury determines to be excess 
to the normal requirements of the United States." 
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) Section 221(b), which relates to general authority for invest-
ment guaranties, is amended as follows: 
(1) In paragraph (1), strike out "$5,000,000,000" and insert in lieu 
thereof "$7,000,000,000" 
(2) In the third proviso of paragraph (2), strike out "$300,000,000" 
and "$175,000,000" and insert in lieu thereof "$375,000,000" and 
"$215,000,000", respectively, and strike out "Federal Housing Admin-
istration" and insert in lieu thereof "Department of Housing and 
Urban Development". 
(3) In the fourth proviso of paragraph (2), strike out "1967" and 
insert in lieu thereof "1969". 
22 use 2182. 
^1^^ Section 222, which relates to general provisions, is amended by 
adding at tlie end thereof the following new subsection: 
"(h) In the case of any loan investment for housing guaranteed 
under section 221(b)(2) or section 224, the Administrator of the 
Agency for International Development shall prescribe the rate of 
interest allowable to the eligible United States investor, which rate 
shall not be less than one-half of 1 per centum above the then current 
rate of interest applicable to housing mortgages insured by the Depart-
ment of Housing and Urban Development. 
In no event shall the 
Administrator prescribe an allowable rate of interest which exceeds 
by more than 1 per centum the then current rate of interest applicable 
to housing mortgages insured by such Department." 
22 use 2184. 
^g^ Section 224, which relates to housing projects in Latin Ameri-
can countries, is amended as follows: 
(1) In subsection (b) (1), strike out "Federal Housing Adminis-
tration" and insert in lieu thereof "Department of Housing and Urban 
Development". 
(2) In subsection (c), strike out "$400,000,000" and insert in lieu 
thereof "$450,000,000: Provided, That $300,000,000 be used for the 
purposes of section 224(b) (1)". 
(3) In the last proviso of subsection (c), strike out "1967" and 
insert in lieu thereof "1969". 
79 Stat. 655. 
76 Stat. 257; 
77 Stat. 382. 
22 u s e 2211. 
80 STAT. ] 
PUBLIC LAW 89.583-SEPT. 19, 1966 
799 
TITLE VI—ALLIANCE FOR PROGRESS 
SEC. 105. Title VI of chapter 2 of part I of the Foreign Assistance 
Act of 1961, as amended, which relates to the Alliance for Progress, is 
amended as follows: 
(a) Section 251, which relates to general authority, is amended as 
follows: 
(1) In the second sentence of subsection (b), strike out "and" at 
the end of clause (3) and strike out the period at the end of the sen-
tence and insert a semicolon and the following: "(5) the degree to 
which the recipient country is making progress toward respect for 
the rule of law, freedom of expression and of the press, and recognition 
of the importance of individual freedom, initiative, and private enter-
prise; (6) the degree to which the recipient country is taking steps 
to improve its climate for private investment; (7) whether or not the 
activity to be financed will contribute to the achievement of self-
sustaining growth; and (8) the extent to which the activity to be 
financed will contribute to the economic or political integration of 
Latin America." 
(2) At the end of such section add the following new subsection: 
"(h) Loans may be made under authority of this title only for social 
and economic development projects and programs which are consistent 
with the findings and recommendations of the Inter-American Com-
mittee for the Alliance for Progress in its annual review of national 
development activities. Whenever the President determines that the 
purposes of this title would be better served thereby, he may make 
avanable, in addition to any other funds available for such purposes, 
on such terms and conditions as he determines, not to exceed 15 per 
centum of the funds made available for this title to the Inter-
American Development Bank, or to any of the insititutions named in 
section 205, for use pursuant to the laws governing United States 
"*"'*' ^' ''^'^• 
participation in the said Bank or in such institutions and the govern-
ing statutes thereof and without regard to section 201 or any other 
requirements of this or any other Act." 
(b) Section 252, which relates to authorization, is amended as 
22 use 2212 
follows: 
(1) In the first sentence, strike out "use beginning" the first place it 
appears and all that follows down through "year 1966" and insert in 
lieu thereof "the fiscal year 1967, $696,500,000, and for each of the 
fiscal years 1968 and 1969, $750,000,000, which amounts are authorized 
to remain available until expended and which, except for not to exceed 
$100,000,000 in each such fiscal year". 
(2) In the second sentence, strike out "1964 through 1966" and insert 
in lieu thereof "1968 and 1969". 
(3) In the last sentence, strike out "June 30,1965 and June 30,1966" 
and insert in lieu thereof "June 30, 1967, through June 30, 1969". 
TITLE VIII—SOUTHEAST ASIA MULTILATERAL AND REGIONAL 
PROGRAMS 
SEC. 106. Chapter 2 of part I of the Foreign Assistance Act of 1961, 
as amended, is amended by adding at the end thereof the following 
new titles: 
" T I T L E V I I I — S O U T H E A S T ASIA MULTILATERAL AND REGIONAL PROGRAMS 
"SEC. 271. GENERAL PROVISIONS.—^The acceleration of social and 
economic progress in southeast Asia is important to the achievement of 
the United States foreign policy objectives of peace and stability in 
that area. It is the sense of Congress that this objective would be 
22 u s e 2161-
2216. 
800 
PUBLIC LAW 89-583-SEPT. 19, 1966 
[80 STAT. 
served by an expanded effort by the countries of southeast Asia and 
other interested countries in cooperative programs for social and eco-
nomic development of the region, employing both multilateral and 
bilateral channels of assistance. 
"SEC. 272. SPECIAL PROVISIONS.—In providing assistance to further 
the purposes of this title the President shall take into account: 
" (1) initiatives in the field of social and economic development 
by Asian peoples and institutions; 
" (2) regional economic cooperation and integration in southeast 
Asia; 
"(3) the extent of participation by other potential donor 
countries; 
"(4) the degree of peaceful cooperation among the countries 
of southeast Asia toward the solution of common problems; and 
"(5) the ability of multilateral institutions or other admin-
istering authorities to carry out projects and programs effectively, 
efficiently, and economically. 
"SEC. 273. AUTHORIZATION.—The President is authorized to utilize 
not to exceed $10,000,000 of the funds otherwise available to carry out 
the provisions of part I of this Act (other than title VI of this chap-
ter) to furnish assistance under this title on such terms and condi-
tions as he may determine, in order to promote social and economic 
development and stability in southeast Asia. 
a, 
TITLE IX—UTILIZATION OF DEMOCRATIC INSTITUTIONS IN DEVELOPMENT 
"SEC, 281. In carrying out programs authorized in this chapter, 
emphasis shall be placed on assuring maximum participation in the 
task of economic development on the part of the people of the devel-
oping countries, through the encouragement of democratic private 
and local jrovernmental institutions." 
7 5 Stat. 433. 
22 u s e 2221. 
22 u s e 2161. 
Economic or 
technical assist-
ance to euba, re-
striction. 
79 Stat. 6 56. 
CHAPTEE 3—INTEKNATIONAL ORGANIZATIONS AND 
PROGRAMS 
SEC. 107. Chapter 3 of part I of the Foreign Assistance Act of 1961, 
as amended, which relates to international organizations and pro-
grams, is amended as follows: 
(a) Section 301(a), which relates to general authority, is amended 
by inserting immediately after "by such organizations" the following: 
", and in the case of the Indus Basin Development Fund administered 
by the International Bank for Reconstruction and Development to 
make grants and loans payable as to principal and interest in United 
States dollars and subject to the provisions of section 201(d),". 
(b) Section 301(b), which relates to general authority, is amended 
by striking out "United Nations Expanded Program of Technical 
Assistance and the United Nations Special Fund" and inserting in 
lieu thereof "United Nations Development Program" and by adding 
at the end thereof the following new sentence: "The President shall 
seek to assure that no contribution to the United Nations Develop-
ment Program authorized by this Act shall be used for projects for 
economic or technical assistance to the Government of Cuba, so long 
as Cuba is governed by the Castro regime." 
(c) Section 301(c), which relates to assistance for Palestine refugees 
in the Near East, is amended by striking out the last sentence and 
inserting in lieu thereof the following: "Contributions by the United 
States for the fiscal year 19,67 shall not exceed $13,300,000. No con-
tributions under this subsection shall be made except on the condition 
that the United Nations Relief and Works Agency take all possible 
80 STAT. ] 
PUBLIC LAW 89-583-SEPT. 19, 1966 
801 
measures to assure that no part of the United States contribution shall 
be used to furnish assistance to any refugee who is receiving military 
training as a member of the so-called Palestine Liberation Army." 
(d) Section 302, which relates to authorization, is amended to read y/ltat.^gsg^^' 
as follows: 
22 use 2222. 
"SEC. 302. AUTHORIZATION.— (a) There is authorized to be appro-
priated to the President for grants to carry out the purposes of this 
chapter, in addition to funds available under any other Act for such 
purposes, for the fiscal year 1967 not to exceed $140,433,000. 
"(b) There is authorized to be appropriated to the President, for 
the fiscal year 1967, $1,000,000 for contributions to the United Nations 
Children's Fund during the calendar year 1967. Funds made avail-
able under this subsection shall be in addition to funds available under 
this or any other Act for such contributions and shall not be taken 
into account in computing the aggregate amount of United States 
contributions to such fund for the calendar year 1967. 
"(c) None of the funds available to carry out this chapter shall be 
contributed to any international organization or to any foreign gov-
ernment 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 man-
power." 
CHAPTEE 4—SUPPOKTING ASSISTANCE 
75 Stat. 434. 
22 u s e 2241. 
SEC. 108. Chapter 4 of part I of the Foreign Assistance Act of 
1961, as amended, which relates to supporting assistance, is amended as 
follows: 
(a) Section 401, which relates to general authority, is amended by 
striking out the period at the end thereof and inserting a colon and the 
following: '•''Pro'vided, That not more than thirteen countries may re-
ceive assistance under the authority of this chapter in any fiscal year, 
unless the President determines that it is in the national interest of 
the United States to furnish such assistance to an additional country or 
countries. Any such determination, together with the reasons therefor, congr°/ss*.° 
shall be reported to the Committee on Foreign Relations of the Sen-
ate and to the Speaker of the House of Rej)resentatives," 
(b) Section 402, which relates to authorization, is amended to read 
^"*®' P" ^'*-
as follows: 
"SEC. 402. AUTHORIZATION.—There is authorized to be appropriated 
to the President to carry out the purposes of this chapter for the fiscal 
year 1967 not to exceed $715,000,000: Provided, That where commodi-
ties are furnished on a grant basis under this chapter under arrange-
ments which will result in the accrual of proceeds to the Government 
of Vietnam from the sale thereof, arrangements shall be made to assure 
that such proceeds will not be budgeted by the Government of Vietnam 
for economic assistance projects or programs unless the President or 
his representative has given his prior written approval. 
Amounts 
appropriated under this section are authorized to remain available 
until expended." 
CHAPTER 5—CONTINGENCY FUND 
SEC. 109. Section 451 of the Foreign Assistance Act of 1961, as 
^"<e. p. 74. 
amended, which relates to contingency fund, is amended as follows: 
(a) Subsection (a) is amended as follows: 
(1) Strike out "1966" and "$150,000,000" in the first sentence and 
insert in lieu thereof "1967" and "$110,000,000", respectively. 
(2) Strike out the second and third sentences. 
(b) Subsection (b) is amended by striking out "the first sentence of". 
802 
PUBLIC LAW 89-583-SEPT. 19, 1966 
[80 STAT. 
CHAPTEE 7—JOINT COMMISSIONS ON KUEAL 
DEVELOPMENT 
22 use 2
^
1
5
*
1
- 
SEC. 110. Part I of the Foreign Assistance Act of 1961, as amende<l, 
2271. 
is amended by adding at the end thereof a new chapter as follows: 
"CHAPTER 7—JOINT COMMISSIONS ON EURAL DEVELOPMENT 
"SEC. 471. JOINT COMMISSIONS ON EURAL DEVELOPMENT.—(a) 
The 
President is authorized to conclude agreements with less developed 
countries providing for the establishment in such countries of Joint 
Commissions on Eural Development each of which shall be composed 
of one or more citizens of the United States appointed by the President 
and one or more citizens of the country in which the Commission is 
established. 
A majority of the members of each such Commission 
shall be citizens of the country in which it is established. Each such 
agreement shall provide for the selection of the members who are 
citizens of the country in which the Commission is established who 
wherever feasible shall be selected in such manner and for such terms 
of office as will insure to the maximum extent possible their tenure and 
continuity in office. 
"(b) A commission established pursuant to an agreement author-
ized by this section shall be authorized to formulate and carry out 
programs for development of rural areas in the country in which it 
is established, which may include such research, training and other 
activities as may be necessary or appropriate for such development. 
"(c) Not to exceed 10 per centum of the funds made available pur-
79^ltft?6 54?*' 
suant to section 212 shall be available to the President in negotiating 
22 use 217 2. 
and carrying out agreements entered into under this section, including 
the financing of appropriate activities of Commissions esitablished 
pursuant to such agreements. 
"(d) The furnishing of assistance under this section shall not be 
construed as an express or implied assumption by the United States 
of any responsibility for making further contributions for such 
purpose. 
"(e) Nothing in this chapter shall be construed to restrict the 
authority contained in any other chapters of this Act." 
P A E T I I 
CHAPTEE 2^-MILITAEY ASSISTANCE 
SEC. 201. Chapter 2 of part I I of the Foreign Assistance Act of 
1961, as amended, which relates to military assistance, is amended as 
follows: 
(a) Section 504(a), which relates to authorization, is amended to 
read as follows: 
"(a) In addition to such amounts as may be otherwise authorized 
to support Vietnamese forces and other free world forces in Vietnam, 
there is authorized to be appropriated to the President to carry out 
the purposes of this part (excluding the support of Vietnamese forces 
and other free world forces in Vietnam) not to exceed $875,000,000 for 
the fiscal year 1967: Provided^ That funds made available for assist-
ance under this chapter (other than training in the United States) 
shall not be used to furnish such assistance to more than forty coun-
tries in any fiscal year. 
Amounts appropriated under this subsection 
are authorized to remain available until expended." 
22 use 2312. 
80 STAT. ] 
PUBLIC LAW 89-583-SEPT. 19, 1966 
803 
(b) Section 506, which relates to conditions of eligibility, is amend- 76^|tat^*25*/^'' 
ed by adding at the end thereof the following new subsection: 
22 use 2314. 
"(e) F'rom and after the sixtieth day after the date of enactment 
of the Foreign Assistance Act of 1966, no assistance shall be provided 
under this chapter to any country to which sales are made under title 
I of the Agricultural Trade Development and Assistance Act of 1954 
f^jfc^iTcf *
-
' 
until such country has entered into an agreement to permit the use of 1709. 
foreign currencies accruing to the United States under such title I to 
procure equipment, materials, facilities, and services for the common 
defense including internal security, in accordance with the provisions 
of section 104(c) of such title I." 
(c) Section 508, which relates to reimbursements, is amended by 
22 use 23le. 
adding at the end thereof the following new sentence: "Such amounts 
of the appropriations made available under this part (including un-
liquidated balances of funds heretofore obligated for financing sales 
and guarantees) as may be determined by the President shall be trans-
ferred to, and merged with, the separate fund account." 
(d) Section 510(a), which relates to special authority, is amended 
^9 sta^ ess^ 
by striking out "1966" each place it appears and inserting in lieu 
thereof in each such place "1967". 
(e) Section 512, which relates to restrictions on military aid to 
^^ ^^^ ^^'-°' 
Africa, is amended by striking out "fiscal year 1966" and inserting in 
lieu thereof "each fiscal year". 
(f) At the end of such chapter 2, add the following new section: 
"SEC. 514. ADMINISTRATION OF SALES AND EXCHANGE PROGRAMS I N -
VOLVING DEFENSE ARTICLES AND SERVICES,—(a) Programs for the sale 
or exchange of defense articles or defense services under this chapter 
shall be administered so as to encourage regional arms control and dis-
armament agreements and so as to discourage arms races. 
"(b) In order to further encourage regional arms control and dis-
armament agreements and discourage arms races in the American 
Republics, notwithstanding the provisions of section 511(a) of this 
Act, the total value of military assistance and sales (other than train- 
22 use 2319. 
ing) under this Act or in accordance with section 7307 of title 10, 
United States Code, for American Republics in any fiscal year shall 
in^jf^^*4,'^'l^* 
not exceed $85,000,000, of which $25,000,000 may be used for assistance 
on a cost-sharing basis to an inter-American military force under the 
control of the Organization of American States: Provided^ That the 
cost of defense articles supplied for use by elements of the Inter-
American Peace Force in the Dominican Republic shall not be 
charged against the $85,000,000 limitation provided by this subsection." 
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, which relates to encouragement of free enterprise yoyta^'^Voil"'' 
and private participation, is amended as follows: 
22 use 2351. 
(1) In subsection (b), immediately after paragraph (1), insert the 
following new paragraph: 
"(2) establish an effective system for obtaining adequate in-
formation wdth respect to the activities of, and opportunities for, 
nongovernmental participation in the development process, and 
for utilizing such information in the planning, direction, and 
execution of programs carried out under this Act, and in the 
coordination of such programs with the ever-increasing develop-
mental activities of nongovernmental United States institutions;". 
10 use 7307. 
804 
PUBLIC LAW 89-583-SEPT. 19, 1966 
[80 STAT. 
75 Stat. 438; 
77 Stat. 385. 
22 u s e 2351. 
International 
Private Invests 
ment Advisory 
Council on 
Foreign Aid. 
60 Stat. 808; 
75 Stat. 339, 340. 
7 5 Stat. 439. 
22 u s e 2354. 
68 Stat. 454. 
7 u s e 1691 
note. 
22 u s e 2358. 
Ante, p. 74. 
(2) In subsection (b), redesignate paragraphs (2), (8), (4), (5), 
and (6) as paragraphs (3), (4), (5), (6), and (7), respectively. 
(3) In subsection (b), strike out "and" at the end of paragraph (6), 
as so redesignated by paragraph (2) of this subsection; strike out the 
period at the end of paragraph (7), as so redesignated by paragraph 
(2) of this subsection, and insert in lieu thereof a semicolon; and at 
the end thereof add the following new paragraph: 
"(8) utilize wherever practicable the services of United States 
private enterprise on a cost-plus incentive fee contract basis to 
provide the necessary skills to develop and operate a specific proj-
ect or program of assistance in a less developed friendly country 
or area in any case in which direct private investment is not 
readily encouraged, and provide where appropriate for the trans-
fer of equity ownership in such project or program to private 
investors at the earliest feasible time. 
(4) Subsection (c) is amended to read as follows: 
"(c)(1) There is hereby established an International Private In-
vestment Advisory Council on Foreign Aid to be composed of such 
number of leading American business specialislts as may be selected, 
from time to time, by the Administrator of the Agency for Interna-
tional Development for the purpose of carrying out the provisions of 
this subsection. The members of the Council shall serve at the pleas-
ure of the Administrator, who shall designate one member to serve as 
Chairman. 
"(2) It shall be the duty of the Council, at the request of the Ad-
ministrator, to make recommendations to the Administrator with re-
spect to particular aspects of programs and activities under this Act 
where private enterprise can play a contributing role and to act as 
liaison for the Administrator to involve specific private enterprises in 
such programs and activities, 
"(3) The members of the Advisory Council shall receive no com-
pensation 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 by them 
in the performance of their functions under this subsection. 
"(4) The expenses of the Advisory Council shall be paid by the 
Administrator from funds otherwise available under this Act." 
(b) Section 604, which relates to procurement, is amended as 
follows: 
(1) Subsection (c), which relates to procurement of agricultural 
commodities, is amended by striking out the word "surplus" each time 
it appears and by inserting "or product thereof available for disposi-
tion under the Agricultural Trade Development and Assistance Act 
of 1954, as amended," after the word "commodity" the first time it 
appears. 
(2) Add the following new subsection: 
"(e) No funds made available under this Act shall be used for the 
procurement of any agricultural commodity or product thereof out-
side the United States when the domestic price of such commodity is 
less than parity." 
(c) Section 608 (a), which relates to advance acquisition of property, 
is amended by inserting "(including personnel costs)" immediately 
after "costs" the first place it appears in the first sentence. 
(d) Section 610(b), which relates to transfer between accounts, is 
amended by striking out the last sentence and inserting in lieu thereof 
the following: "Not to exceed $5,000,000 of the funds appropriated 
under section 402 of this Act for any fiscal year may be transferred 
to and consolidated with appropriations made under section 637(a) 
of this Act for the same fiscal year, subject to the further limitation 
80 STAT. ] 
PUBLIC LAW 89-583-SEPT. 19, 1966 
805 
that funds so transferred shall be available solely for additional 
administrative expenses incurred in connection with programs in 
Vietnam." 
(e) Section 612, which relates to the use of foreign currencies, is 
22 u*sc 2362. 
amended by adding a new subsection as follows: 
Excess foreign 
"(c) In addition to funds otherwise available, excess foreign cur- currencies. 
rencies, as defined in subsection (b), may be made available to friendly 
foreign governments and to private, nonprofit United States organi-
zations to carry out voluntary family planning programs in countries 
which request such assistance. 
No such program shall be assisted 
unless the President has received assurances that in the administra-
tion of such program the recipient will take reasonable precautions 
to insure that no person receives any family planning assistance or 
supplies unless he desires such services. The excess foreign curren-
cies made available under this subsection shall not, in any one year, 
exceed 5 per centum of the aggregate of all excess foreign currencies. 
As used in this subsection, the term 'voluntary family planning pro-
gram' includes, but is not limited to, demographic studies, medical 
and psychological research, personnel training, the construction and 
staffing of clinics and rural health centers, specialized training of 
doctors and paramedical personnel, the manufacture of medical sup-
plies, and the dissemination of family planning information, medical 
assistance, and supplies to individuals who desire such assistance." 
(f) Section 614(a) which relates to special authorities, is amended 
22 u*sc 2
3
(
5
*
4 
by adding at the end thereof the following new sentence: "The limi-
tation contained in the preceding sentence shall not apply to any 
country which is a victim of active Communist or Communist-sup-
ported aggression." 
(g) Section 614(c), which relates to special authorities, is amended co^g^es*s.*° 
by adding at the end thereof the following: "The President shall 
promptly and fully inform the Speaker of the House of Representa-
tives and the chairman and ranking minority member of the Com-
mittee on Foreign Relations of the Senate of each use of funds under 
this subsection." 
(h) Section 620, which relates to prohibitions against furnishing 
assistance, is amended as follows: 
(1) The first sentence of subsection (i) is amended to read as 
follows: "No assistance shall be provided under this or any other 
Act, and no sales shall be made under the Agricultural Trade Devel-
opment and Assistance Act of 1954, to any country which the Presi- 
7^;fsc*'i69i' 
dent determines is engaging in or preparing for aggressive military note. 
efforts, or which hereafter is officially represented at any international 
conference when that representation includes the planning of activities 
involving insurrection or subversion, which military efforts, insur-
rection, or subversion, are directed against— 
"(1) the United States, 
"(2) any country receiving assistance under this or any other 
Act, or 
"(3) any country to which sales are made under the Agri-
cultural Trade Development and Assistance Act of 1954, 
until the President determines that such military efforts or prepara-
tions have ceased, or such representation has ceased, and he reports co^^^resV° 
to the Congress that he has received assurances satisfactory to him 
77 Stat. 387. 
22 u s e 2370. 
806 
PUBLIC LAW 89-583-SEPT. 19, 1966 
[80 STAT. 
77 Stat. 3 88. 
22 u s e 2370. 
22 u s e 2318. 
22 u s e 2181. 
79 Stat. 659. 
Countries as-
sisting North 
Vietnam. 
6 5 Stat. 645. 
22 u s e 1611-
l a i l d . 
Assistance to 
United Arab Re-
public. 
Report to 
Congress. 
Countries in 
default of pay-
ments. 
that such military efforts or preparations will not be renewed, or that 
such representation will not be renewed or repeated." 
(2) Subsection (k) is amended to read as follows: 
" (k) Without the express approval of Congress, 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 
assistance to be furnished by the United States will exceed $100,000,000. 
Except as otherwise provided in section 510, no military assistance 
shall be furnished to any country under this Act for carrying out any 
program, with respect to which the aggregate value of assistance to be 
furnished beginning July 1, 1966, by the United States will exceed 
$100,000,000 unless such program has been included in the presentation 
to the Congress during its consideration of authorizations for appro-
priations under this Act or of appropriations pursuant to authoriza-
tions contained in this Act. 
No provision of this or any other Act 
shall be construed to authorize the President to waive the provisions of 
this subsection." 
(3) Subsection (1) is amended to read as follows: 
" (1) The President shall consider denying assistance under this Act 
to the government of any less developed country which, after Decem-
ber 31, 1966, has failed to enter into an agreement with the President 
to institute the investment guaranty program under section 221(b)(1) 
of this Act, providing protection against the specific risks of incon-
vertibility under subparagraph (A), and expropriation or confiscation 
under subparagraph (B), of such section 221(b) (1)." 
(4) Subsection (n) is amended to read as follows: 
" (n) In view of the aggression of North Vietnam, no assistance shall 
be furnished under this Act to any country which has failed to take 
appropriate steps, not later than sixty days after the date of enactment 
of the Foreign Assistance Act of 1966— 
" (A) to prevent ships or aircraft under its registry from trans-
porting to North Vietnam— 
'(i) any items of economic assistance, 
" (ii) any items which are, for the purposes of title I of the 
Mutual Defense Assistance Control Act of 1951, as amended, 
arms, ammunition and implements of war, atomic energy ma-
terials, petroleum, transportation materials of strategic value, 
or items of primary strategic significance used in the produc-
tion of arms, ammunition, and implements of war, or 
" (iii) any other equipment, materials, or commodities; and 
"(B) to prevent ships or aircraft under its registry from trans-
porting any equipment, materials, or commodities from North 
Vietnam." 
(5) At the end of such section 620, add the following new subsec-
tions: 
"(p) No assistance shall be furnished under this Act to the LTnited 
Arab Republic unless the President finds and reports within thirty 
days of such finding to the Committee on Foreign Relations of the 
Senate and the Speaker of the House of Representatives that such 
assistance is essential to the national interest of the United States, 
and further that such assistance will neither directly nor indirectly 
assist aggressive actions by the United Arab Republic. 
" (q) No assistance shall be furnished under this Act to any country 
which is in default, during a period in excess of six calendar months, 
80 STAT. ] 
PUBLIC LAW 89.583-SEPT. 19, 1966 
807 
in payment to the United States of principal or interest on any loan 
made to such country under this Act, unless such country meets its 
obligations under the loan or unless the President determines that 
assistance to such country is in the national interest and notifies the 
Notification of 
Speaker of the House of Representatives and the Committee on For- 
°"8'"«ss. 
eign Relations of the Senate of such determination. 
"(r) No recipient of a loan made under the authority of this Act, 
any part of which is outstanding on or after the date of enactment of 
this subsection, shall be relieved of liability for the repayment of any 
part of the principal of or interest on such loan." 
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) Section 622, which relates to coordination with foreign policy, 
^s stat. 446; 
is amended as follows: 
22*u*sc2382. 
(1) Subsection (b) is amended by striking out "(including any 
civic action and sales program)'' and substituting "(including civic 
action) or sales programs". 
(2) Subsection (c) is amended by striking all after "general direc-
tion of" and substituting "economic assistance and military assistance 
and sales programs, including but not limited to determining whether 
there shall be a military assistance (including civic action) or sales 
program for a country and the value thereof, to the end that such pro-
grams are effectively integrated both at home and abroad and the for-
eign policy of the United States is best served thereby." 
(b) Section 624(d), which relates to the Inspector General, Foreign 
76 stat. 262. 
Assistance, is amended by adding at the end thereof the following new 
^^ "^^ ^^^'^' 
paragraph: 
" (8) Whenever the Inspector General, Foreign Assistance, deems it 
appropriate in carrying out his duties under this Act, he may from 
time to time notify the head of any agency primarily responsible for 
administering any program with respect to which the Inspector Gen-
eral, Foreign Assistance, has responsibilities under paragraph (2) of 
this subsection that all internal audit, end-use inspection, and manage-
ment inspection reports submitted to the head of such agency or mis-
sion in the field in connection with such program from any geographic 
areas designated by the Inspector General, Foreign Assistance, shall 
be submitted simultaneously to the Inspector General, Foreign 
Assistance. The head of each such agency shall cooperate with the 
Inspector General, Foreign Assistance, in carrying out the provi-
sions of this paragraph," 
(c) Section 634, which relates to reports and information, is 
22 use 2394. 
amended by adding at the end thereof the following new subsection: 
"(f) The Secretary of the Treasury shall transmit to the Speaker of 
Report to 
the House of Representatives and to the Committee on Foreign Rela- ^°"8ress. 
tions of the Senate semiannual reports showing as of June 30 and 
December 31 of each year the repayment status of each loan thereto-
fore made under authority of this Act any part of the principal or 
interest of which remains unpaid on the date of the report." 
(d) Section 635 (h), which relates to general authorities, is amended 
22 use 2395. 
by inserting "(except development loans)" immediately after "II, V, 
and VI". 
808 
PUBLIC LAW 89-584-SEPT. 19, 1966 
[80 
STAT. 
79 Stat. 661. 
22 u s e 2397. 
(e) Section 637(a), which relates to administrative expenses, is 
amended by striking out "1966 not to exceed $54,240,000" and inserting 
in lieu thereof "1967 not to exceed $55,813,500". 
Approved September 19, 1966. 
Public Law 89-584 
September 19, 1966 
[S. 2747] 
Lower Rio 
Grande. 
Agreement with 
Mexico. 
AN ACT 
Appropriation. 
To authorize conclusion of an agreement witli Mexico for joint measures for 
solution of the Lower Rio Grande salinity problem. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress asserribled^ That the Secretary 
of State, acting through the United States Commissioner, Inter-
national Boundary and Water Commission, United States and Mexico, 
is authorized, notwithstanding any other provision of law and sub-
ject to the conditions provided in this Act, to conclude an agreement 
or agreements with the appropriate official dr officials of the Govern-
ment of the United Mexican States for the construction, operation, 
and maintenance by the United Mexic?in States under the supervision 
of the International Boundary and Water Commission, United States 
and Mexico, of a drainage conveyance canal through Mexican territory 
for the discharge of waters of El Morillo and other drains in the 
United Mexican States into the Gulf of Mexico in the manner, and 
having substantially the characteristics, described in said Commis-
sion's minute numbered 223, dated November 30, 1965. The agree-
ment or agreements shall provide that the costs of construction, includ-
ing costs of design and right-of-way and the costs of operation and 
maintenance, shall be equally divided between the United Mexican 
States and the United States. Before concluding the agreement or 
agreements, the Secretary of State shall receive satisfactory assurances 
from private citizens or a responsible local group that they or it will 
pay to the United States Treasury one-half of the actual United States 
costs of such construction, including costs of design and right-of-way, 
and one-half of the actual costs of operation and maintenance allocated 
under such agreement or agreements to the United States. Payments 
to the United States Treasury under this section shall be covered into 
the Treasury as miscellaneous receipts. 
SEC. 2. To defray costs that accrue to the United States under the 
agreement or agreements referred to in the first section of this Act 
for the construction, operation, and maintenance of drainage con-
veyance canal projects, there are authorized to be appropriated to the 
Department oi State for use of the United States Section, Inter-
national Boundary and Water Commission, United States and Mgxico, 
the following amounts: 
(1) Not to exceed $690,000 for costs of construction. 
(2) Upon completion of construction, not to exceed $20,000 annually 
for costs of operation and maintenance. 
Approved September 19, 1966.