An Act to amend the Foreign Assistance Act of 1961 to authorize development and economic assistance programs for fiscal year 1979, to make certain changes in the authorities of that Act and the Agricultural Trade Development and Assistance Act of 1954, and to improve the coordination and administration of United States development-related policies and programs, and for other purposes.
PL 95-424 (H.R.12222), enacted 10/06/1978

PUBLIC LAW 95-424—OCT. 6, 1978 
92 STAT. 937 
Public Law 95-424 
95th Congress 
An Act 
To amend the Foreign Assistance Act of 196i to authorize development and 
economic assistance programs for fiscal year 1979, to make certain changes 
in the authorities of that Act and the Agricultural Trade Development and 
Assistance Act of 1954, to improve the coordination and administration of 
United States development-related policies and programs, and for other 
purposes. 
Be it enacted hy the Senate and House of RepreseTitatives 
of the 
United States of America in Congress assembled^ 
, ., 
SHORT TITLE 
SECTION 1. This Act may be cited as the "International Development 
and Food Assistance Act of 1978". 
Oct. 6. 1978 
[H.R. 12222] 
International 
Development and 
Food Assistance 
Act of 1978. 
22 use 2151 
note. 
TITLE I—DEVELOPMENT ASSISTANCE 
DEVELOPMENT ASSISTANCE POLICY 
SEC. 101. Chapter 1 of part I of the Foreign Assistance Act of 1961 
is amended by striking out section 102 and inserting in lieu thereof the 22 USC 2151. 
following new sections: 
"SEC. 101. GENERAL POLICY.— (a) The Congress finds that funda-
mental political, economic, and technological changes have resulted 
in the interdependence of nations. The Congress declares that the 
individual liberties, economic prosperity, and security of the people of 
the United States are best sustained and enhanced in a community 
of nations which respect individual civil and economic rights and 
freedoms and which work together to use wisely the world's limited 
resources in an open and equitable international economic system. 
Furthermore, the Congress reaffirms the traditional humanitarian 
ideals of the American people and renews its commitment to assist 
people in developing countries to eliminate hunger, poverty, illness, 
and ignorance. 
"Therefore, the Congress declares that a principal objective of the 
foreign policy of the Ignited States is the encouragement and sustained 
support of the people of developing countries in their efforts to acquire 
the knowledge and resources essential to development and to build the 
economic, political, and social institutions which will improve the 
quality of their lives. 
"United States development cooperation policy should emphasize 
four principal goals: 
"(1) the alleviation of the worst physical manifestations of 
poverty among the world's poor majority; 
"(2) the promotion of conditions enabling developing countries 
to achieve self-sustaining economic growth with equitable dis-
tribution of benefits; 
"(3) the encouragement of development processes in which 
individual civil and economic rights are respected and enhanced; 
and 
"(4) the integration of the developing countries into an open 
and equitable international economic system. 
92 STAT. 938 
PUBLIC LAW 95-424—OCT. 6, 1978 
"The Congress declares that pursuit of these goals requires that 
development concerns be fully reflected in United States foreign policy 
and that United States development resources be effectively and 
efficiently utilized. 
"(b) Lender the policy guidance of the Secretary of State, the agency 
primarily responsible for administering this part should have the 
responsibility for coordinating all United States development-related 
activities. 
22 use 2151-1. 
"SEC. 102. DEVELOPMENT ASSISTANCE POLICY.— (a) The Congress 
finds that the efforts of developing countries to build and maintain the 
social and economic institutions necessary to achieve self-sustaining 
grovt^th and to provide opportunities to improve the quality of life for 
their people depend primarily upon successfully marshalling their own 
economic and human resources. The Congress recognizes that the 
magnitude of these efforts exceeds the resources of developing countries 
and therefore accepts that there will be a long-term need for wealthy 
countries to contribute additional resources for development purposes. 
The United States should take the lead in concert with other nations 
to mobilize such resources from public and private sources. 
"Provision of development resources must be adapted to the needs 
and capabilities of specific developing countries. United States assist-
ance to countries with low per capita incomes which have limited 
access to private external resources should primarily be provided on 
concessional terms. Assistance to other developing countries should 
generally consist of programs which facilitate their access to private 
capital markets, investment, and technical skills, whether directly 
through guarantee or reimbursable programs by the United States 
Government or indirectly through callable capital provided to the 
international financial institutions. 
"Bilateral assistance and United States participation in multilateral 
institutions shall emphasize programs in support of countries which 
pursue development strategies designed to meet basic human needs and 
achieve self-sustaining growth with equity. 
"The Congress declares that the principal purpose of United States 
bilateral development assistance is to help the poor majority of people 
in developing countries to participate in a process of equitable growth 
through productive work and to influence decisions that shape their 
lives, with the goal of increasing their incomes and their access to pub-
lic services which will enable them to satisfy their basic needs and 
lead lives of decency, dignity, and hope. Activities shall be emphasized 
that effectively involve the poor in development by expanding their 
access to the economy through services and institutions at the local 
level, increasing their participation in the making of decisions that 
affect their lives, increasing labor-intensive production and the use of 
appropriate technology, expanding productive investment and services 
out from major cities to small towns and rural areas, and otherwise 
providing opportunities for the poor to improve their lives through 
their own efforts. Participation of the United States in multilateral 
institutions shall also place appropriate emphasis on these principles. 
"(b) Assistance under this chapter should be used not only for the 
purpose of transferring financial resources to developing countries, 
but also to help countries solve development problems in accordance 
with a strategy that aims to insure wide participation of the poor in 
the benefits of development on a sustained basis. Moreover, assistance 
shall be provided in a prompt and effective manner, using appropriate 
PUBLIC LAW 95-424—OCT. 6, 1978 
92 STAT. 939 
United States institutions for carrying out this strategy. In order to 
achieve these objectives and the broad objectives set forth in section 
101 and in subsection (a) of this section, bilateral development assist-
ance authorized by this Act shall be carried out in accordance with the 
following principles: 
"(1) Development is primarily the responsibility of the people 
of the developing countries themselves. Assistance from the United 
States shall be used in support of, rather than substitution for, 
the self-help efforts that are essential to successful development 
programs and shall be concentrated in those countries that take 
positive steps to help themselves. Maximum effort shall be made, 
in the administration of this part, to stinmlate the involvement 
of the people in the development process through the encourage-
ment of democratic participation in private and local govern-
mental activities and institution building appropriate to the 
requirements of the recipient countries. 
"(2) Development planning must be the responsibility of each 
sovereign country. United States assistance should be adminis-
tered in a collaborative style to support the development goals 
chosen by each country receiving assistance. 
"(3) United States bilateral development assistance should give 
high priority to undertakings submitted by host governments 
which directly improve the lives of the poorest of their people 
and tl.eir capacity to participate in the development of their coun-
tries, while also helping such governments enhance their planning, 
technical, and administrative capabilities needed to insure the 
success of such undertakings. 
"(4) Development assistance provided under this chapter shall 
be concentrated in countries which will make the most effective 
use of such assistance to help satisfy basic human needs of poor 
people through equitable growth, especially in those countries 
having the greatest need for outside assistance. In order to make 
possible consistent and informed judgments in this respect, the 
President shall assess the commitment and progress of countries 
in moving toward the objectives and purposes of this chapter by 
utilizing criteria, including but not limited to the following: 
"(A) increase in agricultural productivity per unit of land 
through small-farm, labor-intensive agriculture; 
"(B) reduction of infant mortality; 
"(C) control of population growth; 
"(D) promotion of greater equality of income distribution, 
including measures such as more progressive taxation and 
more equitable returns to small farmers; 
"(E) reduction of rates of unemployment and underem-
ployment ; and 
"(F) increase in literacy. 
"(5) United States development assistance should focus on 
critical problems in those functional sectors which affect the lives 
of the majority of the people in the developing countries; food 
production and nutrition; rural development and generation of 
gainful employment; population planning and health; environ-
ment and natural resources; and education, development admin-
istration, and human resource development. 
"(6) United States assistance shall encourage and promote the 
participation of women in the national economies of developing 
Bilateral 
assistance, 
guidelines. 
39-194 O—80—pt. 1 
63 : QL3 
92 STAT. 940 
PUBLIC LAW 95-424—OCT. 6, 1978 
Presidential 
authority. 
22 use 2151t. 
22 use 2161. 
countries and the improvement of women's status as an important 
means of promoting the total development effort. 
"(7) United States bilateral assistance shall recognize that the 
prosperity of developing countries and effective development 
efforts require the adoption of an overall strategy that promotes 
efficient utilization of energy and, therefore, consideration shall 
be given to the full implications of such assistance on the price, 
availability, and consumption of energy in recipient countries. 
"(8) United States cooperation in development should be 
carried out to the maximum extent possible through the private 
sector, including those institutions which already have ties in the 
developing areas, such as educational institutions, cooperatives, 
credit unions, free labor unions, and private and voluntary 
agencies. 
" (9) To the maximum extent practicable, United States private 
investment should be encouraged in economic and social devel-
opment programs to which the United States lends support. 
"(10) Assistance shall be planned and utilized to encourage 
regional cooperation by developing countries in the solution of 
common problems and the development of shared rcvsources. 
"(11) Assistance efforts of the United States shall be planned 
and furnished to the maximum extent practicable in coordination 
and cooperation with assistance efforts of other countries, includ-
ing the planning and implementation of programs and projects 
on a multilateral and multidonor basis. 
"(12) United States bilateral development assistance should be 
concentrated on projects which do not involve large-scale capital 
transfers. However, to the extent that such assistance does 
involve large-scale capital transfers, it should be furnished in 
association with contributions from other countries working 
together in a multilateral framework. 
"(c) The Congress, recognizing the desirability of overcoming the 
worst aspects of absolute poverty by the end of this century by, 
among other measures, substantially lowering infant mortality and 
birth rates, and increasing life expectancy, food production, literacy, 
and employment, encourages the President to explore with other coun-
tries, through all appropriate channels, the feasibility of a worldwide 
cooperative effort to overcome the worst aspects of absolute poverty 
and to assure self-reliant growth in the developing countries by the 
year 2000.". 
DEVELOPMENT ASSISTANCE AUTHORITIES 
SEC. 102. (a) Chapter 1 of part I of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following': 
"SEC. 122. GENERAL AUTHORITIES.— (a) In order to carry out the 
purposes of this chapter, the President is authorized to furnish assist-
ance, on such terms and conditions as he may determine, to countries 
and areas through programs of grant and loan assistance, bilaterally 
or through regional, multilateral, or private entities.". 
(b)(1) Part I of such Act is further amended— 
(A) by striking out "less developed friendly" in the first sen-
tence in subsection (b) of section 201; 
(B) by striking out everything after the first sentence in sub-
section (b) of section 201 through "herein) be loaned" in subsec-
tion (d) of such section and inserting in lieu thereof the following: 
PUBLIC LAW 95-424—OCT. 6, 1978 
92 STAT. 941 
"The President shall determine the interest payable on any loan. 
In making loans under this chapter, the President shall consider 
the economic circumstances of the borrower and other relevant 
factors, including the capacity of the recipient country to repay 
the loan at a reasonable rate of interest, except that loans may 
not be made"; and 
(C) by inserting subsection (b) of section 201, as amended by 
subparagraphs (A) and (B) of this paragraph, immediately 
after section 122(a), as added by subsection (a) of this section. 
(2) (A) Section 301(a) of such Act is amended by striking out 22USC2221. 
"201 ( d ) " and inserting in lieu thereof "122 (b)". 
(B) Section 103(b) of the Agricultural Trade Development and 
Assistance Act of 1954 is amended by striking out "201" and inserting 7 USC 1703. 
in lieu thereof "122". 
(C) Section 106(a) of the Agricultural Trade Development and 
Assistance Act of 1954 is amended in the second sentence by striking 7 USC 1706. 
out "201" and inserting in lieu thereof "122(b)". 
(c) (1) Section 122 of the Foreign Assistance Act of 1961, as added 
by subsection (a) of this section and as amended by subsection (b) (1) 
of this section, is amended by adding at the end thereof the following 
-
"
^ '^ 
•''•' '-
new subsections: 
"(c) Dollar receipts paid during any fiscal year from loans made 
under this part or from loans made under predecessor foreign assist-
ance legislation shall be deposited in the Treasury as miscellaneous 
receipts. 
"(d) Not to exceed $10,000,000 of the funds made available each Funds, limitation, 
fiscal year for the purposes of this chapter may be used for assistance, 
on such terms and conditions as the President may determine, to 
research and educational institutions in the United States for the pur-
pose of strengthening their capacity to develop and carry out pro- 
' 
grams concerned with the economic and social development of 
developing countries.". 
(2) Section 299(a) of such Act is amended by striking "110(b), 
211 (a), and 211(d) " a n d inserting in lieu thereof "110(b) and 122(d)". 
(d) Part I of such Act is further amended— 
(1) in section 204— 
(A) by striking out " S E C . 204. DEVELOPMENT LOAN COM-
MITTEE.—" and inserting in lieu thereof " ( e ) " ; and 
(B) by striking out "title" and inserting in lieu thereof 
"chapter"; and 
(2) by inserting such section, as so redesignated and amended, 
at the end of section 122, as added and amended by subsections (a) 
through (c) of this section. 
(e) Chapter 1 of part I of such Act, as amended by subsections (a) 
through (d) of this section, is further amended by adding at the end 
thereof the following new section: 
"SEC. 123. PRIVATE AND VOLUNTARY ORGANIZATIONS AND COOPERA-
TIVES IN OVERSEAS DEVELOPMENT.—(a) The Congress finds that the 
participation of rural and urban poor people in their countries' 
development can be assisted and accelerated in an effective manner 
through an increase in activities planned and carried out by private 
and voluntary organizations and cooperatives. Such organizations 
and cooperatives, embodying the American spirit of self-help and 
assistance to others to improve their lives and incomes, constitute an 
important means of mobilizing private American financial and human 
22 USC 2220d. 
22 USC 2164. 
Private and 
voluntary 
organizations. 
22 USC 2151u. 
92 STAT. 942 
PUBLIC LAW 95-424—OCT. 6, 1978 
Ante, p. 938. 
Reimbursement. 
Transportation 
costs, defraying 
of. 
Repeal. 
22 use 2151m. 
Repeal. 
22 use 2161, 
2162, 2164, 
2167, 2168, 
2171, 2172, 
2175, 
2176-2178, 
2180, 2180a, 
2211-2213, 
2216-2217a. 
22 use 2166. 
22 use 2174. 
22 use 2218. 
22 use 2351. 
22 use 2358. 
resources to benefit poor people in developing countries. The Congress 
declares that it is in the interest of the United States that such orga-
nizations and cooperatives expand their overseas devclopmen*: efforts 
without compromising their private and independent nature. The 
Congress further declares that the financial resources of such orga-
nizations and cooperatives should be supplemented by the contribution 
of public funds for the purpose of undertaking development activities 
in accordance with the principles set forth in section 102. The Congress 
urges the Administrator of the agency primarily responsible for 
administering this part, in implementing programs authorized imder 
this part, to draw on the resource of private and voluntary organiza-
tions and cooperatives to plan and carry out development activities, 
"(b) In order to further the efficient use of United States voluntary 
contributions for development, relief, and rehabilitation of friendly 
peoples, the President is authorized to use funds made available for 
the purposes of this chapter to pay transportation charges on ship-
ments by the American National Red Cross and by United States vol-
untary agencies registered with the Advisory Committee on Voluntary 
Foreign Aid. 
" (c) Reimbursement under this section mav be provided for trans-
portation charges on shipments from United States ports, or in the 
case of excess or surplus property supplied by the United States from 
foreign ports, to ports of entry abroad or to points of entry abroad in 
cases (1) of landlocked countries, (2) where ports cannot be used effec-
tively because of natural or other disturbances, (3) where carriers to 
a specified country are unavailable, or (4) where a substantial savings 
in costs or time can be effected by the utilization of points of entry other 
than ports. 
"(d) Where practicable, the President shall make arrangements 
with the receiving country for free entry of such shipments and for the 
making available by the country of local currencies for the purpose of 
defraying the transportation costs of such shipments from the port or 
point of entry of the receiving country to the designated shipping 
point of the consignee.". 
(f) Section 115 of such Act is repealed. 
fg) (1) Chapter 2 of part I of such Act, as amended by this section, 
is further amended— 
(A) by repealing title I (except sections 206 and 209), title I I 
except sections 214 and 219), title VI, title VII, and title V I I I ; 
(B) by amending the chapter heading to read as follows: 
"CHAPTER 2—OTHER PROGRAMS" ; 
(C) by inserting the following new title heading immediately 
before section 206: "TITLE I—MULTILATERAL AND REGIONAL DEVEL-
OPMENT PROGRAMS" ; and 
(D) by inserting the following new title heading immediately 
before section 214: "TITLE II—AMERICAN SCHOOLS AND HOSPITALS 
ABROAD 
; PROTOTYPE 
DESALTING 
PLANT". 
(2) (A) Section 281 of such Act is amended by inserting "and chap-
ter 1" immediately after "this chapter" each of the four places it 
appears. 
(B) Section 601 (b) (5) of such Act is amended by striking out "201" 
and inserting in lieu thereof "122". 
(C) Section 608(a) of such Act is amended by striking out "sec-
tion 212" and inserting in lieu thereof "chapter 1 of part I". 
PUBLIC LAW 95-424—OCT. 6, 1978 
92 STAT. 943 
22 use 2370. 
22 use 2395. 
(D) Section 611(a) of such Act is amended by striking out ^'titles 22 USe 2361 
I, II, and VI of chapter 2 and chapter 4 of part I" and inserting in 
lieu thereof "chapter 1 of part I, title II of chapter 2 of part I, or 
chapter 4 of part II". 
(E) Section 611(e) of such Act is amended by striking out "titles 
I, II, or VI of chapter 2 or chapter 4 of part I of this Act" and insert-
ing in lieu thereof "chapter 1 of part I, title II of chapter 2 of part I, 
or chapter 4 of part II". 
(F) Section 620(d) of such Act is amended by striking out "under 
section 201" and inserting in lieu thereof "on a loan basis under chap-
ter 1 of part I". 
(G) Section 635(h) of such Act is amended by striking out "titles 
II, V, and VI (except development loans)" and inserting in lieu 
thereof "chapter 1 (except development loans) and title II". 
(H) Section 636(c) of such Act is amended by striking out " (other 22 USe 2396, 
than title I of chapter 2 of part I ) " both places it appears. 
(I) Section 636 (d) and (e) of such Act are each amended by strik-
ing out " (other than title I of chapter 2 of part I)". 
(J) Section 636(f) of such Act is amended— 
(i) by strikmg out "section 212" and inserting in lieu thereof 
"chapter 1 of part I"; and 
(ii) by striking out "title I of chapter 2" and inserting in lieu 
thereof "chapter 1". 
(K) (i) Section 108 of such Act is repealed. 
(ii) Section 109 of such Act is amended by striking out "Notwith-
standing section 108 of this Act, whenever" and inserting in lieu 
thereof "Whenever". 
Repeal. 
22 u s e 2151f. 
22 u s e 2151g. 
AGRICULTURE, RURAL DEVELOPMENT, AND NUTRITION 
SEC. 103. (a) Section 103 of the Foreign Assistance Act of 1961 is 
amended to read as follows: 
"SEC. 103. AGRICULTURE, RURAL DEVELOPMENT, AND NUTRITION.— 
(a) (1) In recognition of the fact that the great majority of the peo-
ple of developing countries live in rural areas and are dependent on 
agriculture and agricultural-related pursuits for their livelihood, the 
President is authorized to furnish assistance, on such terms and condi-
tions as he may determine, for agriculture, rural development, and 
nutrition— 
"(A) to alleviate starvation, hunger, and malnutrition; 
"(B) to expand significantly the provision of basic services to 
rural poor people to enhance their capacity for self-help; and 
"(C) to help create productive farm and off-farm employment 
in rural areas to provide a more viaible economic base and enhance 
opportunities for improved incomes, living standards, and contri-
butions by rural poor people to the economic and social develop-
ment of their countries. 
"(2) There is authorized to be appropriated to the President for 
purposes of this section, in addition to funds otherwise available for 
such purposes, $665,231,000 for the fiscal year 1979. Amounts appro-
priated under this section are authorized to remain available until 
expended. 
"(b) (1) Assistance provided under this section shall be used pri-
marily for activities which are specifically designed to increase the 
productivity and income of the rural poor, through such means as 
22 u s e 2151a. 
Presidential 
authority. 
Appropriation 
authorization. 
92 STAT. 944 
PUBLIC LAW 95-424—OCT. 6, 1978 
creation and strengthening of local institutions linked to the regional 
and national levels; organization of a system of financ'al institutions 
which provide both savings and credit services to the poor; stimulation 
of small, labor-intensive enterprises in rural towns; improvement of 
marketing facilities and systems; expansion of rural infrastructure 
and utilities such as farm-to-market roads, water managernent systems, 
land improvement, energy, and storage facilities; establishment of 
more equitable and more secure land tenure arrangements; and creation 
'"* ' 
and strengthening of systems to provide other services and supplies 
needed by farmers, such as extension, research, training, fertilizer, 
water, forestry, soil conservation, and improved seed, in Avays which 
assure access to them by small farmers. 
Infrastructure 
"(2) In circumstances where development of major infrastructure 
projects. 
is necessary to achieve the objectives set forth in this section, assist-
ance for that purpose should be furnished under this chapter in asso-
ciation with significant contributions from other countries working 
together in a multilateral framework. Infrastructure projects so 
assisted should be complemented by other measures to ensure that the 
benefits of the infrastructure reach the poor. 
"(c) The Congress finds that the greatest potential for significantly 
expanding availability of food for people in rural areas and augment-
ing world food production at relatively low cost lies in increasing 
the productivity of small farmers who constitute a majority of the 
agricultural producers in developing countries. Incresising the empha-
sis on rural development and expanded food production in the poor-
^ 
est nations of the developing world is a matter of social justice and a 
principal element contributing to broadly based economic growth, as 
well as an impoilant factor in alleviating inflation in the industrial-
ized countries. In the allocation of funds under this section, special 
attention shall be given to increasing agricultural production in coun-
tries which have been designated as 'least developed' by the United 
Nations General Assembly. 
Nutrition. 
"(d) Assistance provided under this section shall also be used in 
Post, p. 9450. 
coordination with programs carried out under section 104 to help 
improve nutrition of the people of developing countries through 
encouragement of increased production of crops with greater nutri-
tional value; improvement of planning, research, and education with 
respect to nutrition, particularly with reference to improvement and 
expanded use of indigenously produced foodstuffs; and the undertak-
ing of pilot or demonstration programs explicitly addressing the 
problem of malnutrition of poor and vulnerable people. In particular, 
the President is encouraged— 
"(1) to devise and carry out in partnership with developing 
countries a strategy for programs of nutrition and health 
improvement for mothers and children, including breast feeding; 
and 
"(2) to provide technical, financial, and material support to 
individuals or groups at the local level for such programs. 
"(e) Local currency proceeds from sales of commodities provided 
under the Agricultural Trade Development and Assistance Act of 
7 use 1691 note. 1954 which are owned by foreign governments shall be used whenever 
practicable to carry out the provisions of this section.". 
22 use 2403. 
(b) Section 644 of the Foreign Assistance Act of 1961 is amended 
by adding at the end thereof the following: 
PUBLIC LAW 95-424—OCT. 6, 1978 
92 STAT. 945 
" (o) 'Agriculture' includes aquaculture and fisheries, 
"(p) 'Farmers' includes fishermen and other persons employed in 
cultivating and harvesting food resources from salt and fresh waters.". 
(c) Sections 117 and 296 (f) and (g) of such Act are repealed. 
(d) Section 103A of such Act is amended by inserting "environ-
mental," immediately after "social," in clause (2) of the first 
sentence. 
POVULATION AND I I E A I / n i 
SEC. 104. (a) Section 104 of the Forei^i Assistance Act of 1961 is 
amended to read as follows: 
"SEC. 104. POPULATION AND HEALTH.— (a) FINDINGS.—The Congress 
recognizes that, poor health conditions and uncontrolled population 
growth can vitiate otherwise successful development efforts. 
"Large families in developing countries are the result of complex 
social and economic factors which change relatively slowly among 
the poor majority least affected by economic progress, as well as the 
result of a lack of effective birth control. Therefore, effective family 
planning depends upon economic and social change as well as the 
deliveiy of services and is often a matter of political and religious 
sensitivity. While every coimtiy has the right to determine its own 
policies with respect to population growth, voluntary population 
planning progi-ams can make a substantial contribution to economic 
development, higher living standards, and improved health and 
nutrition. 
"Good health conditions are a principal element in improved quality 
of life and contribute to the individual's capacity to participate in the 
development process, while poor health and debilitating disease can 
limit productivity. 
"(b) ASSISTANCE FOR POPULATION PLANNING.—In order to increase 
the opportunities and motivation for family planning and to reduce 
the rate of population gi'owth, the President is authorized to furnish 
assistance, on such terms and conditions as he may determine, for 
voluntary population planning. In addition to the provision of family 
planning information and services and the conduct of directly relevant 
demographic research, population planning programs shall emphasize 
motivation for small families. 
" (c) ASSISTANCE FOR HEALTH AND DISEASE PREVENTION.—In order to 
contribute to improvements in the health of the greatest number of 
poor people in developing countries, the President is authorized to 
furnish assistance, on such terms and conditions as he may determine, 
for health programs. Assistance under this subsection shall be used 
primarily for basic integrated health services, safe water and sanita-
tion, disease prevention and control, and related health planning and 
research. This assistance shall emphasize self-sustaining community-
based liealth programs by means such as training of health auxiliary 
and otheT- appropi-iate personnel, support for the establishment anci 
evaluation of projects that can be replicated on a broader scale, meas-
ures to improve management of health programs, and other services 
and supplies to support health and disease prevention programs. 
" ( d ) INTEGRATION or ASSISTANCE PROGRAMS.— (1) Assistance under 
this chapter shall be administered so as to give particular attention 
to the interrelationship between (A) population growth, and (B) 
development and overall improvement in living standards in devel-
oping countries, and to the impact of all programs, projects, and 
Repeal. 
22 u s e 2151o, 
2220a. 
22 use 
2151a-l. 
22 u s e 2151b. 
Population 
planning 
assistance, 
presidential 
authority. 
Health programs, 
presidential 
authority. 
92 STAT. 946 
PUBLIC LAW 95-424—OCT. 6, 1978 
Ante, p. 943. 
Health and 
population 
research and 
analysis. 
Presidential 
study, 
authorization. 
Funds, 
prohibited use. 
activities on population growth. All appropriate activities proposed 
for financing under this chapter shall be designed to build motivation 
for smaller families through modification of economic and social con-
ditions supportive of the desire for large families, in programs such as 
education in and out of school, nutrition, disease control, maternal and 
child health services, improvements in the status and employment of 
women, agricultural production, rural development, and assistance to 
the urban poor. Population planning programs shall be coordinated 
with other programs aimed at reducing the infant mortality rate, pro-
viding better nutrition for pregnant women and infants, and raising 
the standard of living of the poor. 
"(2) Since the problems of malnutrition, disease, and rapid popu-
lation growth are closely related, planning for assistance to be pro-
vided under subsections (b) and (c) of this section and under section 
103 shall be coordinated to the maximum extent practicable. 
"(3) Assistance provided under this section shall emphasize low-cost 
integrated delivery systems for health, nutrition, and family planning 
for the poorest people, with particular attention to the needs of 
mothers and young children, using paramedical and auxiliary medical 
personnel, clinics and health posts, commercial distribution systems, 
and other modes of community outreach. 
"(e) RESEARCH AND ANALYSIS.— (1) Health and population research 
and analysis carried out under this Act shall— 
"(A) be undertaken to the maximum extent practicable in 
developing countries by developing country personnel, linked as 
appropriate with private and governmental biomedical research 
facilities within the United States; 
"(B) take account of the special needs of the poor people of 
developing countries in the determination of research priorities; 
and 
"(C) make extensive use of field testing to adapt basic research 
to local conditions. 
" (2) The President is authorized to study the complex factors affect-
ing population growth in developing countries and to identify factors 
which might motivate people to plan family size or to space their 
children. 
"(f) PROHIBITION ON L^SE OF FUNDS FOR ABORTIONS AND INVOLUN-
TARY STERILIZATIONS.— (1) None of the funds made available to carry 
out this part may be used to pay for the performance of abortions as a 
method of family planning or to motivate or coerce any person to 
practice abortions. 
"(2) None of the funds made available to carry out this part may 
be used to pay for the performance of involuntary sterilizations as a 
method of family planning or to coerce or provide any financial 
incentive to any person to undergo sterilizations. 
" ( g ) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated to the President, in addition to funds otherwise avail-
able for such purposes— 
"(1) $224,745,000 for the fiscal year 1979 to carry out subsection 
(b) of this section; and 
"(2) $148,494,000 for the fiscal year 1979 to carry out subsec-
tion (c) of this section. 
Funds appropriated under this subsection are authorized to remain 
available until expended.". 
PUBLIC LAW 95-424—OCT. 6, 1978 
92 STAT. 947 
(b) Section 114 and title X of chapter 2 of part I of such Act are 
repealed. 
EDUCATION AND HUMAN RESOURCES DEVELOPMENT 
SEC. 105. Section 105(a) of the Foreign Assistance Act of 1961 is 
amended in the second sentence by striking out "$101,800,000 for the 
fiscal year 1977 and $84,900,000 for the fiscal year 1978, which amounts 
are" and inserting in lieu thereof "$109,036,000 for the fiscal year 1979, 
which amount is". 
Repeal. 
22 use 2151/, 
2219, 2219a. 
22 use 2151c. 
TECHNICAL ASSISTANCE, ENERGY, RESEARCH, RECONSTRUCTION, AND 
SELECTED DEVELOPMENT PROBLEMS 
SEC. 106. Section 106(b) of the Foreign Assistance Act of 1961 is 22 USe 2151(1. 
amended in the first sentence by striking out "$104,500,000 for the fiscal 
year 1977 and $105,000,000 for the fiscal year 1978, which amounts are" 
and inserting in lieu thereof "$126,244,000 for the fiscal year 1979, 
which amount is". 
APPROPRIATE TECHNOLOGY 
SEC. 107. Section 107 of the Foreign Assistance Act of 1961 is 22 USe 2151e. 
amended to read as follows: 
"SEC. 107. APPROPRIATE TECHNOLOGY.— (a) In carrying out activities 
^ 
under this chapter, the President shall place special emphasis on the 
,,- -
use of relatively smaller, cost-saving, labor-using technologies that are 
generally most appropriate for the small farms, small businesses, and 
small incomes of the poor. 
" (b) Funds made available to carry out this chapter should be used 
to the extent practicable for activities in the field of appropriate tech- 
; ;, 
, ,,; 
nology, including support of an expanded and coordinated private 
effort to promote the development and dissemination of appropriate 
technology in developing countries.". 
WOMEN IN DEVELOPMENT 
SEC. 108. Section 113 of the Foreign Assistance Act of 1961 is 22 USC 2151k. 
amended by adding at the end thereof the following new subsection: 
"(d) (1) U p to $10,000,000 of the funds made available each fiscal Funds, use of. 
year under this chapter shall be used, in addition to funds otherwise 
available for such purposes, for assistance on such terms and condi-
tions as the President may determine to encourage and promote the 
participation and integration of women as equal partners in the devel-
opment process in the developing countries. These funds shall be used 
primarily to support activities which will increase the economic prod-
uctivity and income earning capacity of women. 
"(2) Nothing in this section shall be construed to authorize the 
establishment of a separate development assistance program for 
H U M A N RIGHTS ACTIVITIES 
SEC. 109. Section 116(e) of the Foreign Assistance Act of 1961 is 
amended in the first sentence— 
(1) by striking out "Of" and inserting in lieu thereof "The 
President is authorized and encouraged to use not less than 
$1,500,000 of"; and 
22 use 2151n. 
92 STAT. 948 
PUBLIC LAW 95-424—OCT. 6, 1978 
(2) by striking out "1978, not less than $750,000 may be used 
only" and inserting in lieu thereof "1979". 
22 use 2151p. 
Presidential 
studies. 
Report to 
Congress. 
ENVIRONMENT AND NATURAL RESOURCES 
SEC. 110, Section 118 of the Foreign Assistance Act of 1961 is 
amended— 
(1) by inserting " ( a ) " immediately after the section caption; 
and 
(2) by adding at the end thereof the following new subsections: 
"(b) Tn carrying out programs under this chapter, the President 
shall take into consideration the environmental consequences of devel-
opment actions. 
"(c) In furtherance of the purposes of this section, the President 
shall carry out studies to identifj^ the major environment and natural 
resource problems, and the institutional capabilities to solve those 
problems, which exist in developing countries. The results of these 
studies shall be reported to the Congress by March 1, 1979.". 
22 use 2151q. 
Cooperative 
programs. 
Ante, p. 943. 
Administration. 
Ante, p. 947. 
22 u s e 2151v. 
RENEWABLE AND UNCONVENTIONAL ENERGY TECHNOLOGIES 
SEC. 111. Section 119 of the Foreign Assistance Act of 1961 is 
amended to read as follows: 
"SEC. 119. 
RENEWABLE AND UNCONVENTIONAL ENERGY TECHNOLO-
GIES.—(a) The President is authorized to furnish assistance under this 
chapter for cooperative programs with developing countries in energy 
production and conservation, with particular emphasis on programs 
in research and development, and use of small-scale, decentralized, 
renewable energy sources for rural areas carried out as integral parts 
of rural development efforts in accordance with section 103 of this Act. 
Such programs shall also be directed toward the earliest practicable 
development and use of energy technologies which are environmentally 
acceptable, require minimum capital investment, are most acceptable 
to and affordable by the people using them, are simple and inexpensive 
to use and maintain, and are transferable from one region of the world 
to another. 
"(b) The agency primarily responsible for administering this part 
shall coordinate with the Department of Energy, to the maximum 
extent possible, the planning and implementation of energy programs 
authorized under this chapter, including section 107, and shall consult 
with the Department of Energy on such planning and implementa-
tion.". 
RELATIVELY LEAST DEVELOPED COUNTRIES 
SEC. 112. (a) (1) Chapter 1 of part I of the Foreign Assistance Act 
of 1961, as amended by section 102 of this Act, is further amended by 
inserting the following new section 124 immediately after section 123: 
"SEC. 124. 
RELATIVELY LEAST DEVELOPED COUNTRIES.— (a) 
Rela-
tively least developed countries (as determined on the basis of criteria 
comparable to those used for the United Nations General Assembly 
list of 'least developed countries') are characterized by extreme pov-
erty, very limited infrastracture, and limited administrative capacity 
to implement basic human needs growth strategies. In such countries 
special measures may be necessary' to insure the full effectiveness of 
assistance furnished under this part. 
PUBLIC LAW 95-424—OCT. 6, 1978 
92 STAT. 949 
" (b) For the purpose of promoting economic growth in these coun-
tries, the President is authorized and encouraged to make assistance 
under this chapter available on a grant basis to the maximiim extent 
that is consistent with the attainment of United States development 
objectives. 
"(c) (1) The Congress recognizes that the relatively least developed 
countries have virtually no access to private international capital 
markets. Insofar as possible, prior assistance terms should be consistent 
with present grant assistance terms for relatively least developed coun-
tries. Therefore, notwithstanding section 620 (r) of this Act and sec-
tion 321 of the International Development and Food Assistance Act 
of 1975 but subject to paragraph (2) of this subsection, the President 
on a case-by-case basis, taking into account the needs of the country 
for financial resources and the commitment of the country to the devel-
opment objectives set forth in sections 101 and 102— 
"(A) may permit a relatively least developed country to place 
amounts, which would otherwise be paid to the United States as 
payments on principal or interest on liability incurred by that 
country under this part (or any predecessor legislation) into local 
currency accounts (in equivalent amounts of local currencies as 
determined by the official exchange rate for United States dollars) 
. for use by the relatively least developed country, with the con-
currence of the Administrator of the agency primarily responsible 
' 
for administering this part, for activities which are consistent with 
section 102; and 
"(B) may waive interest payments on liability incurred by a 
relatively least developed country under this pia-rt (or any prede-
cessor legislation) if the President determines that that country 
would be unable to use for development purposes the equivalent 
amounts of local currencies which could be made available under 
subparagraph (A). 
"(2) The aggregate amount of interest waived and interest and 
principal paid into local currency accounts under this subsection in 
any fiscal year may not exceed the amount approved for such purpose 
in an Act appropriating funds to carry out this chapter for that fiscal 
year, which amount may not exceed the amount authorized to be so 
approved by the annual authorizing legislation for development assist-
ance programs. 
"(3) !m exercising the authority granted by this subsection, the 
President should act in concert with other creditor countries. 
"(d) The President may on a case-by-case basis waive the require-
ment of section 110(a) for financial or 'in kind' contributions in the 
case of programs, projects, or activities in relatively least developed 
countries. 
"(e) Section 110(b) shall not apply with respect to grants to rela-
tively least developed countries.". 
(2) The authority granted by section 124(c) of the Foreign Assist-
ance Act of 1961 shall not become effective until October 1,1979. 
(b) (1) Section 110(a) of such Act is amended by striking out "and 
except that" and all that follows through the end of the sentence and 
inserting in lieu thereof a period. 
(2) Section 110(b) of such Act is amended by striking out "Ex-
cept" and all that follows through "no" and inserting in lieu thereof 
"No". 
Grants. 
Grant assistance 
terms. 
22 use 2370. 
22 use 2220ia 
note. 
Ante, p. 937. 
Waiver. 
22 use 2151h. 
22 use 2151v 
note. 
Ante, p. 948. 
22 use 2151h. 
92 STAT. 950 
PUBLIC LAW 95-424—OCT. 6, 1978 
Administration. 
22 u s e 2151w. 
Presidential 
reports. 
22 u s e 2394. 
I'ROJECT AND PROGRAM EVALUATION 
SEC. 113. Chapter 1 of part I of the Foreign Assistance Act, as 
amended by sections 102 and 112 of this Act, is further amended by 
inserting the following new section 125 immediately after section 
124: 
"SEC. 125. PROJECT AND PROGRAM EVALUATION.— (a) The Adminis-
trator of the agency primarily responsible for administering this 
part is directed to improve the assessment and evaluation of the pro-
grams and projects carried out by that agency under this chapter. The 
Administrator shall consult with the appropriate committees of the 
Congress in establishing standards for such evaluations. 
"(b) The President shall report on actions taken by the interna-
tional financial institutions and the United Nations Development 
Program to improve the evaluation of projects and programs con-
ducted by those institutions. The report required by this subsection 
shall be submitted as a part of the report required by section 634.". 
Appropriation 
authorization. 
22 use 2174. 
AMERICAN SCHOOLS AND HOSPITALS ABROAD 
SEC. 114. Section 214 of the Foreign Assistance Act of 1961 is 
amended— 
(1) in subsection (c) by striking out "for the fiscal year 1977, 
$25,000,000, and for the fiscal year 1978, $25,000,000, which 
amounts are" and inserting in lieu thereof "$25,000,000 for the 
fiscal year 1079, which amount is"; and 
(2) by striking out subsections (d) and (e) and by redesignat-
ingsubsection (f) as subsection (d). 
HOUSING AND OTHER CREDIT GUARANTY PROGRAMS 
SEC. 115. (a) Sections 221 and 222 of the Foreign Assistance Act 
of 1961 are amended to read as follows: 
22 use 2181. 
"SEC. 221. HOUSING GUARANTIES.—The Congress recognizes that 
shelter requirements are among the most fundamental of human needs. 
Shelter for most people in the developing countries consists largely of 
domestic materials assembled by local labor. While recognizing that 
most financing for such housing must come from domestic resources, 
the Congress finds that carefully designed programs involving United 
States capital and expertise can increase tne availability of domestic 
financing for improved housing and related services for low-income 
people by demonstrating to local entrepreneurs and institutions that 
5
1 : i j r 
providing low-cost housing can be financially viable. The Congress 
reaffirms, therefore, that the United States should continue to assist 
developing countries in marshalling resources for low-cost housing. 
Particular attention should be given to programs which will support 
pilot projects for low-cost shelter or which will have a maximum dem-
,,; 7 
onstration impact on local institutions and national policy. The Con-
gress declares that the long run goal of all such programs should be to 
develop domestic construction capabilities and to stimulate local credit 
ir*.. 
institutions to make available domestic capital and other management 
and technological resources required for effective low-cost shelter pro-
grams and policies. 
22 use 2182. 
"SEC. 222. AUTHORIZATION.—(a) To carry out the policy of section 
221, the President is authorized to issue guaranties to eligible investors 
PUBLIC LAW 95-424^0CT. 6, 1978 
92 STAT. 951 
(as defined in section 238(c)) assuring against losses incurred in con-
nection with loans made for projects meeting the criteria set forth in 
section 221, The total principal amount of guaranties issued under this 
title or heretofore issued under prior housing guaranty authorities, 
which are outstanding at any one time, shall not exceed $1,180,000,000. 
The authority of this section shall continue until September 30, 1980. 
The President may issue regulations from time to time with regard to 
the terms and conditions upon which such guaranties shall be issued 
and the eligibility of lenders. 
" (b) Activities carried out under this section shall emphasize— 
"(1) projects which provide improved home sites to poor fam-
ilies on which to build shelter, and related services; 
"(2) projects comprised of expandable core shelter units on 
serviced sites; 
" (3) slum upgrading projects designed to conserve and improve 
existing shelter; 
"(4) shelter projects for low income people designed for dem-
onstration or institution building purposes; and 
"(5) community facilities and services in support of projects 
authorized under this section to improve the shelter occupied by 
the poor. 
"(c) In issuing guaranties under this section with respect to proj-
ects in a country which require the use or conservation of energy, the 
President shall give consideration to the use of solar energy technolo-
gies, where such technologies are economically and technically feasible. 
Technologies which may be used include solar hot water systems, solar 
heating and cooling, passive solar heating, biomass conversion, photo-
voltaic and wind applications, and community-scale solar thermal 
applications.". 
(b) Section 222A(h) of such Act is amended by striking out "Sep-
tember 30, 1978" and inserting in lieu thereof "September 30, 1979". 
(c) Section 223(a) of such Act is amended by striking out "221, 
222," and inserting in lieu thereof "222". 
(d) Section 223(b) of such Act is amended in the first sentence— 
(1) by striking out "221 or" the first place it appears; 
(2) by striking out "221 and section 222 and of" and inserting 
in lieu thereof "222 and administering housing guaranties here-
tofore authorized under this title and under"; 
(3) by striking out "section 221 or" the second place it appears; 
and 
(4) by inserting "this title or" immediately after "heretofore 
pursuant to". 
(e) Section 223(c) of such Act is amended by striking out "section 
221 or" and by inserting "under this title or" immediately after 
"heretofore". 
(f) Section 223 (d) of such Act is amended— 
(1) by striking out "221, 222, 222A," and inserting in lieu 
thereof "222 or 222A"; and 
(2) by inserting "under this title or" immediately after 
"heretofore". 
(g) Section 223(f) of such Act is amended in the first sentence by 
striking out "section 221 or". 
(h) Section 223(g) of such Act is amended by inserting "heretofore 
under this title or" immediately after "outstanding". 
22 use 2198. 
Ante, p. 950. 
Regulations. 
Solar energy 
technologies. 
22 
use 
2182a. 
22 
use 
2183. 
92 STAT. 952 
PUBLIC LAW 95-424—OCT. 6, 1978 
Repeal. 
22 use 2183. 
22 use 2370. 
(i) Section 223 (i) of such Act is repealed. 
(i) Section 223(j) of such Act is amended by striking out "sections 
221 and" in the first sentence and inserting in lieu thereof "section". 
(k) Section 620(1) of such Act is amended by striking out "221 
(b)(1)" both places it appears and inserting in lieu thereof "234 
(a)(1)". 
22 use 2201. 
Appropriation 
authorization. 
ASSISTANCE FOR CERTAIN DISADVANTAGED CHILDREN IN ASIA 
SEC. 116. Chapter 2 of part I of the Foreign Assistance Act of 1961 
is amended by striking out the title heading for title V and inserting 
in lieu thereof the following: 
"TITLE V—DISADVANTAGED CHILDREN IN ASIA 
" S E C 241. ASSISTANCE TO CERTAIN DISADVANTAGED CHILDREN IN 
ASIA.—(a) The Congress recognizes the humanitarian needs of dis-
advantaged children in Asian countries where there has been or con-
tinues to be a heavy presence of United States military and related 
personnel in recent years. Moreover, the Congress finds that inade-
quate provision has been made for the care and welfare of such dis-
advantaged children, particularly those fathered by the United States 
citizens. 
"(b) Accordingly, the President is authorized to expend up to 
$2,000,000 of funds made available under chapter 1 of this part, in 
addition to funds otherwise available for such purposes, to help meet 
the needs of these disadvantaged children in Asia by assisting in the 
expansion and improvement of orphanages, hostels, day care centers, 
school feeding programs, and health, education, and welfare programs. 
Assistance provided under this section shall be furnished under the 
auspices of and by international organizations or private voluntary 
agencies operating within, and in cooperation with, the countries of 
Asia where these disadvantaged children reside.". 
United Nations 
Trust Fund on 
South Africa, 
appropriation 
authorization. 
22 u s e 2222. 
United Nations 
Relief and Works 
Agency for 
Palestine 
Refugees, 
appropriation 
authorization. 
I N T E R N A T I O N A L ORGANIZATIONS A N D PROGRAMS 
SEC. 117. (a) Section 302(a) (1) of the Foreign Assistance Act of 
1961 is amended in the first sentence by striking out "for the fiscal 
year 1977, $219,900,000 and for the fiscal year 1978, $252,000,000" and 
inserting in lieu thereof "$285,450,000 for the fiscal year 1979 of which 
not to exceed $300,000 shall be available for contribution to the United 
Nations Trust Fund on South Africa". 
(b) (1) Section 302(a) (1) of such Act is further amended— 
(A) by striking out "$42,500,000" in the third sentence and 
inserting in lieu thereof "$52,000,000"; and 
(B) by inserting immediately after the third sentence the 
following: "Of the funds authorized to be appropriated under 
this subsection for the fiscal year 1979, not to exceed $52,000,000 
shall be available for voluntary contributions to the United 
Nations Relief and Works Agency for Palestine Refugees, 
except that not more than $42,500,000 of this amount may be 
obligated unless the President certifies to the Congress that any 
contributions above this level have been matched by equivalent 
contributions by members of the Organization of Petroleum 
Exporting Countries.". 
PUBLIC LAW 95-424—OCT. 6, 1978 
92 STAT. 953 
(2) Not later than January 31, 1979, the Secretary of State shall 
provide the Committee on Foreign Relations of the Senate and the 
Committee on International Relations of the House of Representa-
tives with a full and detailed report on the progress made by the Com-
missioner-General of the United Nations Relief and Works Agency to 
improve the ration distribution system so that food to Palestine ref-
ugees can be more equitably distributed on the basis of need, rather 
than entitlement. 
(c) Section 302(a) of such Act is amended by adding at the end 
thereof the following new paragraph: 
"(3) None of the funds made available under this subsection for the 
fiscal year 1979 may be used for the United Nations Institute for 
Namibia unless the President determines that such funds will not be 
used to support the military or paramilitary activities of the South-
west African Peoples Organization.". 
(d) Section 301 of such Act is amended by adding at the end 
thereof the following new subsection: 
"(g) It is the sense of the Congress that the President should 
instruct the appropriate representatives of the United States to the 
United Nations to encourage the specialized agencies of the United 
Nations to transfer the funding of technical assistance programs car-
ried out by such agencies to the United Nations Development 
Program.". 
(e) In addition to amounts otherwise available for such purpose, 
there are authorized to be appropriated to the President not to exceed 
$1,000,000 for contributions to the World Assembly on Aging to be 
convened under the auspices of the United Nations, except that the 
amount so contributed may not exceed 25 percent of the expendi-
tures of such Assembly. Amounts appropriated under this subsection 
are authorized to remain available until expended. 
Report to 
congressional 
committees. 
22 use 2222 
note. 
Funds, 
prohibition. 
22 use 2222. 
22 use 2221. 
World AssemWy 
on Aging, 
appropriation 
authorization. 
22 use 2222 
note. 
INTERNATIONAL DISASTER ASSISTANCE 
SEC. 118. (a) Section 491(b) of the Foreign Assistance Act of 1961 
is amended by striking "or international organization" and inserting 
in lieu thereof ", international organization, or private voluntary 
organization,". 
(b) Section 492 of such Act is amended— 
' '-^•' *''*'^ = ^ 
(1) in the first sentence by striking out "each of the fiscal years 
1977 and 1978" and inserting in lieu thereof "the fiscal year 
1979"; and 
(2) by striking out the third sentence. 
22 use 2292, 
Appropriation 
authorization. 
22 use 2292a. 
ASSISTANCE FOR AFRICAN REFUGEES 
SEC. 119. Chapter 9 of part I of the Foreign Assistance Act of 1961 
is amended— 
(1) by redesignating section 495D, as added by section 121 of 
the International Development and Food Assistance Act of 1977, 
as section 495E; and 
(2) by adding at the end thereof the following new section: 
"SEC. 495F. ASSISTANCE TO AFRICAN REFUGEES.—The President is 
authorized to furnish assistance, on such terms and conditions as he 
may determine, exclusively for the i-elief and rehabilitation of African 
refugees and other needy people located in Africa. There is authorized 
to be appropriated for the fiscal year 1979 for purposes of this section, 
in addition to amounts otherwise available for such 
purposes, 
22 use 2292. 
22 use 2292k. 
22 use 2292/. 
Appropriation 
authorization. 
92 STAT. 954 
PUBLIC LAW 95-424—OCT. 6, 1978 
$16,000,000, which amount is authorized to remain available until 
expended. Assistance under this section shall be provided in accordance 
with the policies and general authorities contained in section 491.". 
Appropriation 
authorization. 
22 use 2292d 
note. 
LOCUST PLAGUES CONTROL IN AFRICA 
SEC. 120. In order to assist in attempts to control locust plagues in 
Africa, especially in the Horn of Africa, there is authorized to be 
appropriated to the President, in addition to amounts otherwise 
authorized for disaster relief purposes, $2,000,000, which amount is 
authorized to remain available until expended. 
Appropriation 
authorization. 
22 use 2421. 
Community-
based self-help 
activities. 
22 u s e 2151u 
note. 
Ante, p. 941. 
Report to 
Congress. 
REIMBURSABLE DEVELOPMENT PROGRAMS 
SEC. 121. Section 661 of the Foreign Assistance Act of 1961 is 
amended by striking out "$2,000,000" the first place it appears and all 
that follows through "1978," and inserting in lieu thereof "$3,000,000 
of the funds made available for the purposes of this Act for the fiscal 
year 1979". 
AFRICAN DEVELOPMENT FOUNDATION 
SEC. 122. (a) The Congress declares that the United States should 
place higher priority on the formulation and implementation of poli-
cies and programs to enable the people of African nations to develop 
their potential, fulfill their aspirations, and enjoy better, moi-e pro-
ductive lives. In furtherance of these objectives, the Congress finds 
that additional support is needed for community-based self-help 
activities in Africa and that an African Development Foundation, 
organized to further the purposes set forth in section 123 of the For-
eign Assistance Act of 1961, can complement current United StatevS 
development programs in Africa. 
(b) The Congress therefore requests that the President report to 
the Congress not later than February 1, 1979, on steps he has taken 
to review proposals for an African Development Foundation. 
:..,/, 
TITLE II—FOOD FOE PEACE 
EFFECTIVENESS OF FOOD ASSISTANCE I N MEETING BASIC FOOD NEEDS 
7 use 1711 note. 
SEC. 201. The Congress finds that food assistance provided by the 
United States to developing countries under title I of the Agricultural 
7 use 1701. 
Trade Development and Assistance Act of 1954 often is distributed 
within those countries in ways which do not significantly alleviate 
Report to 
hunger and malnutrition in those countries. In order to deteirmine how 
Congress. 
United States food assistance can be more effectively used to meet the 
food needs of the poor in developing countries, the President shall 
submit to the Congress not later than February 1, 1979, a report 
(1) explaining why food assistance provided to developing countries 
. 
, , 
under title I of the Agricultural Trade Development and Assistance 
Act of 1954 is not more successful in meeting the food needs of those 
suffering from hunger and malnutrition, and (2) recommending steps 
which could be taken (including increasing the proportion of food 
7 use 1721, 
assistance which is furnished under titles II and JII of that Act) to 
1727. 
increase the effectiveness of food assistance under that Act in meeting 
those needs. 
PUBLIC LAW 95-424—OCT. 6, 1978 
92 STAT. 955 
TRANSPORTATION COSTS FOR FOOD FOR DEVELOPMENT PROGRAMS 
SEC. 202. Section 304 of the Agricultural Trade Development and 
Assistance Act of 1%4 is amended by adding at the end thereof the 
following new subsection: 
"(d) The Commodity Credit Corporation may pay, with respect 
to commodities made available under this title to a country on the 
United Nations Conference on Trade and Development list of rela-
tively least developed countries, freight charges from United States 
ports to designated ports of entry abroad or to designated points of 
entry abroad m the case of landlocked countries.". 
7 use 1727c. 
APPLICATION OF FOOD FOR DEVELOPMENT PROCEEDS TO REPAYMENT 
OBLIGATIONS 
SEC 203. Section 305 of the Agricultural Trade Development and 7 USC 1727d. 
Assistance Act of 1954 is amended— 
(1) by inserting "(a)" immediately after "SEC 305."; and 
(2) by adding at the end thereof the following new subsection: 
"(b) Such disbursements shall be deemed to be payments with 
respect to the credit furnished pursuant to the agreement or if, in the 
case of a country on the United Nations Conference on Trade and 
Development list of relatively least developed countries, the disburse-
ments in a fiscal year are greater than the amount of the annual repay-
ment obligation which that country would have to meet for that fiscal 
year under the agreement but for the disbursements in accordance with 
the Food for Development Program, then the disbursements which are 
in excess of the amount of that annual repayment obligation may, to 
the extent provided in the agreement, be considered as payments with 
respect to the annual repayment obligations of that country for that 
fiscal year under other financing agreements under this Act.". 
TITLE III—COORDINATION AND ADMINISTRATION OF 
THE DEVELOPMENT-RELATED PROGRAMS AND POLI-
CIES OF THE UNITED STATES 
DECLARATION OF OBJECTIVES 
SEC 301. The Congress declares that the United States Government 
should place higher priority, in the formulation and implementation 
of governmental policies, on efforts to help meet the legitimate needs of 
poor countries for improving the quality of the lives of their popula-
tions. The Congress also declares that greater effectiveness and effi-
ciency of United States assistance to such countries can be achieved 
through improved coordination and administrative consolidation. 
22 USC 2151 
note. 
IMPLEMENTATION OF OBJECTIVES 
SEC 302. In furtherance of the objectives set forth in section 301 
the Congress directs the President to institute a strengthened sys-
tem of coordination of all United States economic policies which 
impact on the developing countries of the world, including but not 
limited to policies concerning international trade, commodity agree-
ments, investment, debt, international financial institutions, inter-
national and multilateral development agencies and programs, and 
concessional and grant food assistance, in addition to policies concern-
ing United States bilateral economic development assistance. 
22 USC 2151 
note. 
39-194 O—80—pt. 1 
64 : QL3 
92 STAT. 956 
PUBLIC LAW 95-424—OCT. 6, 1978 
REPORT 
Report to 
Congress. 
22 u s e 2151 
note. 
SEC. 303. The President shall report to the Congress not later- than 
February 1,1979, on the steps he has taken to implement this title and 
on any further legislation which may be needed to achieve the objec-
tives of this title. 
Regulations. 
Publication in 
Federal Register. 
22 u s e 2385a. 
22 u s e 2151. 
" 
TITLE IV—UNIFIED PERSONNEL SYSTEM 
• 
ESTABLISHMENT OF A UNIFIED PERSONNEL SYSTEM 
SEC. 401. (a) Not later than March 15, 1979, the President shall 
submit to the Congress, and publish in the Federal Register, regula-
tions establishing a unified personnel system for all employees of the 
agency primarily responsible for administering part I of the Foreign 
Assistance Act of 1961. In preparing such regulations, the President 
shall keep the appropriate committees of the Congress fully and cur-
rently informed, and shall consult with them on a regular basis, con-
cerning the nature of the unified personnel system to be established. 
(b) The regulations submitted to the Congress pursuant to sub-
section (a) — 
(1) may not become effective until after the end of the 90-day 
period beginning on the date of such submission in order to pro-
vide the appropriate committees of the Congress an opportunity 
to review them; and 
(2) shall not become effective then if, during such 90-day 
period, either House of Congress adopts a resolution stating in 
substance that it disapproves the personnel system proposed to be 
established by the regulations. 
(c) Regulations which take effect pursuant to this section shall have 
the force and effect of law and shall apply with respect to the personnel 
of the agency primarily responsible for administering part I of the 
Foreign Assistance Act of 1961, notwithstanding and inconsistent pro-
vision of law unless that provision of law specifically states that it 
supersedes regulations issued under this section. 
TITLE V—ADMINISTRATIVE PROVISIONS 
Contract awards. 
22 use 2351. 
Report to 
Congress. 
USE OF COMPETITIVE SELECTION PROCEDURES 
SEC. 501. Section 601 of the Foreign Assistance Act of 1961 is 
amended by adding the following new subsection at the end thereof: 
"(e) (1) The Congress finds that significantly greater effort must 
be made in carrying out programs under part I of this Act to award 
contracts on the basis of competitive selection procedures. All such 
contracts should be let on the basis of competitive selection procedures 
except in those limited cases in which the procurement regulations 
governing the agency primarily responsible for administering part I 
of this Act allow noncompetitive procedures to be used. 
"(2) In order to provide the Congress with information to assist it 
in assessing the efforts of the agency primarily responsible for admin-
istering part I of this Act to make the maximum possible use of com-
petitive selection procedures, the Administrator of that agency— 
"(A) when submitting the congressional presentation materials 
* 
for developing assistance for fiscal year 1980, shall also submit to 
the Congress a report identifying and describing each contract 
PUBLIC LAW 95-424—OCT. 6, 1978 
92 STAT. 9iS7 
in an amount in excess of $100,000 which the agency entered into 
without competitive selection procedures during the period April 
1, 1978, to September 30, 1978, and explaining why each such 
contract was not the subject of competitive selection procedures; 
and 
"(B) when submitting the congressional presentation materials 
for development assistance for fiscal year 1981, shall also submit 
to the Congress a report identifying and describing each contract 
in an amount in excess of $100,000 which the agency entered into 
without competitive selection procedures during the fiscal year 
1979 and explaining why each such contract was not the subject 
of competitive selection procedures.". 
Report to 
Congress. 
ANNUAL FOREIGN ASSISTANCE REPORT 
SEC. 502. (a) Chapter 2 of part I I I of the Foreign Assistance Act of 
1961 is amended— 
(1) by striking out " ( c ) " in section 634(c) and inserting in lieu 
thereof "SEC. 633A. FURNISHING INFORMATION.—" and by insert-
ing such redesignated section immediately after section 633; and 
(2) by striking out the remaining provisions of section 634 and 
inserting in lieu thei'eof the following: 
"SEC. 634. ANNUAL REPORT.— (a) In order that the Congress and the 
American people may be better and more currently informed regard-
ing United States development policy, including the amounts and 
efi'ectiveness of assistance provided by the United States Government 
to developing countries and international organizations, the Chairman 
of the Development Coordination Committee shall transmit to the Con-
gress not later than February 1 of each year a report on foreign assist-
ance for the fiscal year ending the previous September 30. The report 
shall include— 
"(1) (A) a comprehensive and coordinated review of all United 
States policies and programs having a major impact on the devel-
opment of developing countries, including but not limited to bilat-
eral and multilateral assistance, trade, debt, employment, food, 
energy, technology, population, oceans, environment, human set-
tlements, natural resources, and participation in international 
agencies concerned with development; 
"(B) an assessment of the impact of such policies and pro-
grams on the well-being of the poor majority in developing coun-
tries in accordance with the policy objectives of chapter 1 of part 
I, including the progress developing countries are making toward 
achieving those objectives which are indicative of improved well-
being of the poor majority, which objectives shall include but not 
be limited to increasing life expectancy and literacy, lowering 
infant mortality and birth rates, and increasing food production 
and employment; and 
"(C) an assessment of the impact of such policies and programs 
on economic conditions in the United States, including but not 
limited to employment, wages, and working conditions; 
"(2) the dollar value of all foreign assistance and guaranties by 
category and by country provided or made by the United States 
Government by any means to all foreign countries and interna-
tional organizations— 
"(A) from 1946 to the fiscal year immediately preceding 
the fiscal year for which the report is required; 
22 use 2394. 
22 use 2393a. 
22 use 2393. 
22 use 2394. 
Report to 
Congress. 
92 STAT. 958 
PUBLIC LAW 95-424—OCT. 6, 1978 
"(B) as presented to Congress for the immediate preced-
ing fiscal year; 
"(C) as obligated during the immediately preceding fiscal 
year; 
"(D) as planned for the fiscal year in which the report is 
; 
presented; and 
"(E) as proposed for the fiscal year following the year in 
which the report is presented; 
"(3) a summary of repayments, by country, to the United 
States from previous foreign assistance loans; 
"(4) the status of each loan and each contract of guaranty or 
insurance theretofore made under this Act, predecessor Acts, or 
any Act authorizing international security assistance, with respect 
to which there remains outstanding any unpaid obligation or 
potential liability; the status of each extension of credit for the 
procurement of defense articles or defense services, and of each 
contract of guarantee in connection with any such procurement, 
22 use 2751 
theretofore made under the Arms Export Control Act with 
°***®- 
respect to which their remains outstanding any unpaid obligation 
or potential liability; the status of each sale of agricultural 
commodities on credit terms, theretofore made under the Agricul-
7 use 1691 note. 
tural Trade Development and Assistance Act of 1954 with respect 
to which there remains outstanding any unpaid obligation; and 
the status of each transaction with respect to which a loan, 
contract or guarantee of insurance, or extension of credit (or 
participation therein) was theretofore made under the Export-
12 use 635 note. 
Import Bank Act of 1945 with respect to which there remains 
outstanding any unpaid obligation or potential liability; except 
that such report shall include individually only any loan, contract, 
sale, extension of credit, or other transaction listed in this para-
graph which is in excess of $1,000,000; 
"(5) (A) the status of the debt servicing capacity of each coun-
try receiving assistance under this Act; 
"(B) all forms of debt relief granted by the United States 
with respect to such countries, together with a detailed statement 
of the specific debt relief granted with respect to each such coun-
try and the purpose for which it was granted; and 
"(C) a summary of the net aid flow from the United States to 
such countries, taking into consideration the debt relief granted 
by the United States; and 
"(6) such other matters relating to foreign assistance provided 
by the United States Government under part I as the Chairman 
of 
the 
Development 
Coordination 
Committee 
considers 
appropriate. 
Definitions. 
"(b) For purposes of this section— 
"(1) 'foreign assistance' means any tangible or intangible item 
provided by the United States Government to a foreign country 
or international organization under this or any other Act, includ-
ing but not limited to any training, service, or technical advice, 
any item of real, personal, or mixed property, any agricultural 
commodity, United States dollars, and any currencies of any for-
eign country which are owned by the United States Government; 
and 
"(2) 'provided by the United States Government' includes, but 
is not limited to, foreign assistance provided by means of gift, 
loan, sale, credit, or guaranty.". 
PUBLIC LAW 95-424—OCT. 6, 1978 
92 STAT. 959 
(b) Part III of the Foreign Assistance Act of 1961 is amended by 
redesignating section 671 as section 634A and by inserting such redes-
ignated section immediately after section 631. 
(c) Part III of such Act, as amended by subsection (b) of this sec-
tion, is further amended by adding the following new section immedi-
ately after new section 634A: 
"SEC. 634B. CLASSIFICATION or REPORTS.—All information con-
tained in any report transmitted under this Act shall be public infor-
mation. However, in the case of any item of information to be included 
in any such report that the President, on an extraordinary basis, 
determines is clearly detrimental to the security of the United States, 
he shall explain in a supplemental report why publication of each 
specific item would be detrimental to the security of the United States. 
A supplemental report shall be transmitted to the Congress at the 
time the report is transmitted.". 
(d) (1) Title XI of chapter 2 of part I and sections 120(d), 222A 
(j), 495C(e), 620(w), 621A(c), 640B(d), and 657 of the Foreign As-
sistance Act of 1961 are repealed. 
(2) Section 640B(g) of such Act is amended by striking out "sub-
section (d), the President" and inserting in lieu thereof "section 634, 
the Chairman of the Committee". 
22 use 2429b. 
22 use 2394-1. 
22 use 
2394-la. 
Supplemental 
reports, national 
security 
considerations. 
Repeal. 
22 u s e 2220, 
2151r, 2182a, 
22921, 2370, 
2381a, 2399c, 
2417. 
22 u s e 2399c. 
REIMBURSABLE TECHNICAL ASSISTANCE 
SEC. 503. Section 607 of the Foreign Assistance Act of 1961 is 
amended by redesignating subsection (b) as subsection (c) and by 
inserting the following new subsection (b) immediately after sub-
section (a) : 
"(b) When any agency of the United States Government provides 
services on an advance-of-funds or reimbursable basis under this sec-
tion, such agency may contract with individuals for personal service 
abroad or in the United States to perform such services or to replace 
officers or employees of the United States Government who are 
assigned by the agency to provide such services. Such individuals shall 
not be regarded as employees of the United States Government 
for the purpose of any law administered by the Civil Service 
Commission.'. 
eontract 
authority. 
22 use 2357. 
AUDITOR GENERAL 
Appointment. 
22 use 2384. 
SEC. 504. Section 624 of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new subsection: 
"(g) (1) In addition to the officers provided for in subsection (a) 
of this section, there shall be an Auditor General who shall be 
appointed by the Administrator of the agency primarily responsible 
for administering part I of this Act. The Auditor General shall be 22 USe 2151. 
compensated at the rate provided for level V of the Executive Sched-
ule under section 5316 of title 5, United States Code. 
"(2) The Auditor General shall report to and be under the direct 
supervision of the Administrator. 
"(3) The Auditor General shall, with respect to the duties and 
responsibilities of the agency primarily responsible for administering 
part I of this Act and subject to the authority of the Administrator 
of such agency, supervise, direct, and control all audit and investi-
gative activities relating to the programs and operations of the agency. 
"(4) The Auditor General shall submit an annual report to the Annual reports. 
Administrator. This report shall be provided to the Congress without 
92 STAT. 960 
PUBLIC LAW 95-424—OCT. 6, 1978 
further clearance or approval as part of the annual report required 
Ante, p. 957. 
by section 634 of this Act. 
"(5) In the execution of the responsibilities and duties assigned in 
paragraph (3) of this subsection, the Auditor General shall have (A) 
access to all records, reports, papers, and documents of the agency and 
its administrative subdivisions, and (B) authority to request such 
information or assistance as necessary for carrying out the duties set 
forth in this subsection from any Federal, State, or local govem-
• 
mental agency or unit thereof, and from contractors, grantees, and 
loan recipients of the agency.". 
MOTOR VEHICLES 
22 use 2396. 
SEC. 505. Section 636(a) (5) of the Foreign Assistance Act of-1961 
is amended by striking "$3,500" and inserting in lieu thereof "the 
current market price in the United States of a mid-sized sedan or 
station wagon meeting the requirements established by the General 
Services Administration for a Class III vehicle of United States 
manufacture (or, if the replacement vehicle is a right-hand drive 
vehicle, 120 percent of that price)". 
OPERATING EXPENSES 
22 use 2427. 
SEC. 506. Section 667(a) of the Foreign Assistance Act of 1961 is 
amended— 
(1) in the text preceding paragraph (1) by striking out "1978" 
and inserting in lieu thereof "1979"; and 
(2) in paragraph (1) by striking out "$220,200,000" and 
inserting in lieu thereof "$261,000,000". 
TITLE VI—MISCELLANEOUS PROVISIONS 
REDUCTION OF AUTHORIZATION 
22 use 2151 
SEC. 601. The total funds authorized to be appropriated in this Act 
°o*«- 
(excluding funds authorized to be appropriated to carry out section 
22 use 2174. 
214 of the Foreign Assistance Act of 1961) shall be reduced by 5 
percent. 
PROHIBITION ON ASSISTANCE TO VIETNAM, CAMBODIA, UGANDA, AND CUBA 
22 use 2151 
SEC. 602. Notwithstanding any other provision of law or of this 
note. 
^ct, funds authorized to be appropriated in this Act shall not be used 
for any form of aid, either by monetary payment or by the sale or 
transfer of any goods of any nature, to the Socialist Republic of 
/! 
Vietnam, Cambodia, Uganda, or Cuba. 
REPORTS TO CONGRESS ON DEBT RELIEF AGREEMENTS 
22 use 2395a. 
SEC. 603. (a) (1) The Secretary of State shall keep the Committee 
on Foreign Relations of the Senate, the Committee on International 
Relations of the House of Representatives, and the Committee on 
Appropriations of each House of the Congress fully and currently 
informed of any negotiations with any foreign government with 
respect to any cancellation, renegotiations, rescheduling, compromise, 
f 
'fw 
or other form of debt relief (including any modification of the terms, 
PUBLIC LAW 95-424—OCT. 6, 1978 
92 STAT. 961 
conditions, or manner of repayment), with regard to any debt owed 
to the L'nited States by such foreign government. 
(2) The Secretary of State shall transmit to such committees a copy 
of the text of any agreement with any foreign government which 
would result in any such debt relief no less than thirty days prior to its 
entry into force, together with a detailed justification of the interest 
of the United States in the proposed debt relief. The requirements of 
this paragraph shall not apply with respect to an agreement if a statu-
tory requirement exists that the amount of the debt relief provided by 
the agreement may not exceed the amount approved for such purposes 
in advance in an appropriation Act. 
(b) Section 4 of the Foreign Disaster Assistance xAct of 1974 is 
repealed. 
MISCELLANEOUS REPEALS 
SEC. 604. Sections 302(d), 302(e), 302(f), 302(g), 302(h), 304, 
494A, 495A, 618, 619, 637(a), 649, 651, 655, 656, 658, and 665, and 
chapters 6 and 7 of part I, of the Foreign Assistance Act of 1961 are 
repealed. 
EFFECTIVE DATE 
SEC. 605. The amendments made by this Act shall take effect on 
October 1, 1978. 
Approved October 6, 1978. 
International 
agreements 
concerning debt 
relief, transmittal 
to congressional 
committees. 
Repeal. 
22 use 2395 
note. 
Repeal. 
22 u s e 2222, 
2224, 2292d, 
2292g, 2368, 
2369, 2397, 
2408, 2410, 
2415, 2416, 
2418, 2425, 
2271, 2281. 
22 u s e 2151 
note. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 95-1087 (Comm. on International Relations) and No. 95-1545 
(eomm. of eonference). 
CONGRESSIONAL RECORD, Vol. 124 (1978): 
May 11, 12, 15, considered and passed House. 
June 26, considered and passed Senate, amended, in lieu of S. 3074. 
Sept. 19, House agreed to conference report. 
Sept. 20, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 40: 
Oct. 6, Presidential statement.