An Act to amend further the Foreign Assistance Act of 1961, as amended, and for other purposes.
PL 90-137 (S.1872), enacted 11/14/1967

81 STAT.] 
PUBLIC LAW 90-137-NOV. 14, 1967 
445 
SEC. 5. The proA'ision of land, facilities, and project modifications 
which fnniish outdoor recreation and fish and wildlife enhancement 
benefits in connection with the Nebraska Mid-State division shall be in 
accordance with the provisions of the Federal Water Project Eecrea-
tion Act (79 Stat. 213). 
^ 
le use 460M2. 
SEC. 6. There is authorized to be appropriated for construction of the 
Appropriation. 
Nebraska Mid-State division as authorized in this Act, the sum of 
$106,185,000 (January 1967 price levels) plus or minus such amounts, 
if any, as may be justified by reason of ordinary fluctuations in con-
struction costs as indicated by engineering cost indexes applicable to 
the types of construction involved herein. There are also authorized to 
be appropriated such additional sums as may be required for operation 
and maintenance of the division 
SEC. 7. In order to assure rei)ayment of the irrigation portion of this 
project, no funds shall he appropriated for construction nor shall any 
c(mstructi(m he started until firm and binding contracts have been 
signed by the ownei-s of the f\dl one hundred and forty thousand acres 
of land to be irrig'^ated from waters furnished by the Mid-State 
reclamation project, said contracts to be certified by the Mid-State 
Board of Directoi's. 
Approved November 14, 1967. 
Public Law 90-137 
A N A C T 
November 14, 1967 
To amend further the Foreign Assistance Act of 1961, as amended, and for 
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other purposes. 
Foreign Assist-
ance Act of 1967. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Foreign Assistance xlct of 1967". 
P A E T I 
CHAPTER 1—POLICY 
SEC. 101. Section 102 of the Foreign Assistance Act of 1961, as 
^s stat_. 424^. 
amended, which relates to the statement of policy, is amended to read 
as follows: 
"SEC. 102. STATEMENT OF POLICY.—The Congress declares that the 
freedom, security, and prosperity of the United States are best sus-
tained in a community of free, secure, and prospering nations. In 
particular, the Congress recognizes the threat to world peace posed by 
aggression and subversion wherever they occur, and that ignorance, 
want, and despair breed the extremism and violence which lead to 
aggression and subversion. The Congress declares therefore that it is 
not only expressive of our sense of freedom, justice, and compassion 
but also important to our national security that the United States, 
through private as well as public etl'orts, assist the people of less 
developed countries in their efforts to acquire the knowledge and 
resources essential for development and to build the economic, political, 
and social institutions which will meet their aspirations for a better 
life, with freedom, and in peace. 
446 
PUBLIC LAW 90-137-NOV. 14, 1967 
[81 STAT. 
"In addition, the Congress declares that it is the policy of the United 
States to support the principles of increased economic cooperation and 
trade among countries, freedom of the press, information, and religion, 
freedom of navigation in international waterways, and recognition of 
the right of all private persons to travel and pursue their lawful 
activities without discrimination as to race or religion. The Congress 
further declares that any distinction made by foreign nations between 
American citizens because of race, color, or religion in the granting of, 
or the exercise of, personal or other rights available to American 
citizens is repugnant to our principles. 
"The Congress further declares that to achieve the objectives of this 
Act, programs authorized by this Act should be carried out in accord-
ance with the following principles: 
"First, development is primarily the responsibility of the people of 
the less developed 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 Act, to stimulate the involvement of the people in the develop-
ment process through the encouragement of democratic participation 
in private and local governmental activities and institution-building 
appropriate to the requirements of the recipient nations. 
"Second, the tasks of successful development in some instances 
require the active involvement and cooperation of many countries on 
a multilateral basis. Therefore, to the maximum extent practicable, 
other countries shall be encouraged to increase their contributions to 
development programs and projects so that the cost of such common 
undertakings, which are for the benefit of all, may be shared equitably 
by all. 
"Third, assistance shall be utilized to encourage regional coopera-
tion by less developed countries in the solution of common problems 
and the development of shared resources. 
"Fourth, the first objects of assistance shall be to support the efforts 
of less developed countries to meet the fundamental needs of their 
peoples for sufficient food, good health, home ownership and decent 
' 
housing, and the opportunity to gain the basic knowledge and skills 
required to make their own way forward to a brighter future. In 
supporting these objectives, particular emphasis shall be placed on 
utilization of resources for food production and voluntary family 
planning. 
"Fifth, assistance shall wherever practicable be constituted of United 
States commodities and services furnished in a manner consistent with 
other eff'orts of the United States to improve its balance of payments 
position. 
"Sixth, assistance shall be furnished in such a manner as to promote 
efficiency and economy in operations so that the United States obtains 
maximum possible effectiveness for each dollar spent. 
68 Stat. 454. 
7 u s e 1691 
81 STAT.] 
PUBLIC LAW 90-137-NOV. 14, 1967 
447 
"Seventh, to the maximum extent practicable, the furnishing of agri-
cultural commodities, disposal of excess property, and United States 
payments to international lending institutions, undertaken pursuant 
to this or any other Act, shall complement and be coordinated with 
assistance provided under this part. 
"It is the sense of the Congress that every effort must be made to 
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permanent peace 
obtain a permanent peace m the Middle Jiiast. To help promote that efforts. 
objective, the United States should encourage, as part of pacific settle-
ment, direct talks among the parties concerned, using such third party 
or United Nations assistance as they may wish. To this end, the Presi-
dent should undertake immediately (1) a thorough review of the needs 
of the several countries of that area, and (2) a reevaluation of United 
States policies aimed at helping meet those needs and securing a 
permanent peace in the area, 
"It is further the sense of the Congress that in any case in which any 
foreign country has severed diplomatic relations with the United 
States, the President should suspend assistance to such country under 
this or any other Act, including any program designed to complement 
assistance under this Act (such as sales of agricultural commodities 
under the Agricultural Trade Development and Assistance Act of 
1954). When diplomatic relations are resumed, a further study should 
be made on a country-by-country basis to determine whether United note^ 
States foreign policy objectives would be served by extending assist-
ance under this or any other Act, including any program designed 
to complement such assistance." 
. 
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: 
(a) Section 201(b), which relates to general authority, is amended ^ostlT^igV^' 
by striking out the last sentence and inserting in lieu thereof: "Funds 
22 use 2161. 
made available under this title, except funds made available pursuant 
to section 205, shall not be used to make loans in more than twenty 
^o stat. 797. 
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22 u s e 2165. 
countries m any nscal year. 
(b) Section 201(d), which relates to rates of interest, is amended 
by striking out "1964" and substituting "1967" and by striking out 
"1 per centum" and substituting "2 per centum". 
(c) Section 202(a), which relates to authorization, is amended (1) ^ | ^'^VOQ?''' 
by striking out "and $750,000,000 for each of the fiscal years 1968 so stat! 796 '797. 
and 1969" and substituting "and $450,000,000 for the fiscal year 1968", 
22 use 2i62. 
and (2) by striking out "June 30, 1969" and substituting "June 30, 
1968". 
(d) Section 205, which relates to transfers to international lending 
institutions, is amended as follows: 
(1) Strike out "only". 
(2) Strike out "or the International Finance Corporation" and 
substitute "the International Finance Corporation, or the Asian 
Development Bank". 
85-622 0-68—31 
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448 
PUBLIC L
A
W 90-137-NOV. 14, 1967 
[81 STAT. 
75 Stab. 426; 
^g) j^^ I}^Q gnd of such title I, add the following new sections: 
^^22*usc"i6i- 
"SEC. 207. PURPOSES OF DEVELOPMENT ASSISTANCE.—In furnishing 
2166. 
development assistance under this chapter the President shall place 
appropriate emphasis on— 
"(a) assuring maximum participation in the task of economic 
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development by the people of less developed countries through 
the encouragement of strong economic, political, and social institu-
tions needed for a progressive democratic society; 
"(b) programs directed at enabling a country to meet the food 
needs of its people from its own resources, including the furnish-
ing of technical knowledge and of resources necessary to increase 
agricultural productivity; assistance for improved storage, trans-
portation, marketing, and credit facilities (including provision 
for foreign currency loans to small farmers), cooperatives, water 
conservation programs, and adaptive research programs; and 
technological advice: Provided, That relief from the immediate 
threat of famine, hunger, and malnutrition may be provided by 
the United States and other countries, and that assistance pro-
vided under the Agricultural Trade Development and Assistance 
^8 |tat. 454. 
4
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^ Qf 1954^ as amended, should complement assistance furnished 
note. 
under this Act; 
"(c) assisting recipient countries in their efforts to meet 
increasing needs for trained manpower in their development 
efforts by improving education planning and research, training 
teachers and administrators, developing and constructing educa-
tional institutions, and using modern educational technology; 
"(d) developing programs to combat malnutrition, to control 
and eradicate disease, to clear slums, and to provide adequate and 
safe drinking water, adequate sewage disposal systems, overall 
health education, maternal and child care, and voluntary family 
planning services which shall, where feasible, be included as part 
of programs of maternal and child care, and other public health 
assistance; and 
"(e) other important development activities including assist-
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ance for programs to assist industrial development; the growth 
of free labor unions, cooperatives, and voluntary agencies; 
improvement of transportation and communication systems; 
development of capabilities for sound economic planning and 
public administration; urban development; and modernization 
of existing laws to facilitate economic development. 
"SEC. 208. SELF-HELP CRITERIA.—In determining whether and to 
what extent the United States should furnish development assistance 
to a country under this chapter the President shall take into account— 
"(a) the extent to which the country is taking such measures as 
may be appropriate to its needs and capabilities to increase food 
production and improve the means for storage and distribution of 
food; 
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81 STAT.] 
PUBLIC LAW 90-137-NOV. 14, 1967 
449 
"(b) the extent to which the country is creating a favorable 
climate for private enterprise and investment, both domestic and 
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foreign; 
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"(c) the extent to which the government of the country is 
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increasing the role of the people in the developmental process; 
"(d) the extent to which the country's governmental expendi-
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tures are allocated to key developmental areas, including agri-
culture, health, and education, and not diverted for unnecessary 
military purposes or to intervention in the affairs of other free 
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and independent nations; 
"(e) the extent to which the country is willing to make contri-
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butions of its own to the projects and programs for which the 
assistance is provided; 
"(f) the extent to which the country is making economic, social, 
and political reforms, such as tax collection improvements and 
changes in land tenure arrangements, that will enable it to achieve 
developmental objectives more efficiently and justly; and 
"(g) the extent to which the country is otherwise showing a 
responsiveness to the vital economic, political, and social concerns 
of its people, and demonstrating a clear determination to take 
effective self-help measures. 
"SEC. 
209. MULTILATERAL AND REGIONAL PROGRAMS.— (a) 
MULTI-
LATERAL PROGRAMS.—The Congress recognizes that planning and ad- 
;/ 
ministration of development assistance by, or under the sponsorship of, 
multilateral lending institutions and other international organizations 
may, in some instances, contribute to the efficiency and effectiveness of 
that assistance through participation of other donors in the develop-
ment effort, improved coordination of policies and programs, pooling 
of knowledge, avoidance of duplication of facilities and manpower, 
and greater encouragement of self-help performance. 
"(b) REGIONAL PROGRAMS.—It is further the sense of the Congress 
(1) that where problems or opportunities are common to two or more 
countries in a region, in such fields as agriculture, education, transpor-
tation, communications, power, watershed development, disease con-
trol, and establishment of development banks, these countries often can 
more effectively resolve such problems and exploit such opportunities 
by joining together in regional organizations or working together on 
regional programs, (2) that assistance often can be utilized more 
efficiently in regional programs than in separate country programs, 
and (3) that to the maximum extent practicable consistent with the 
purposes of this Act assistance under this Act should be furnished so 
as to encourage less developed countries to cooperate with each other 
in regional development programs." 
T I T L E II—TECHNICAL COOPERATION AND DEVEL0P3IENT 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(a), which relates to general authority, is amended 
^s stat. 427; 
by striking out all after "fiscal year," in the last sentence and substitut- 
2rusJ^2V7i. 
ing "except that up to $600,000 may be used for self-help projects in 
additional countries during such fiscal year.". 
(b) Section 212, which relates to authorization, is amended to read 
22 use 2172. 
as follows: 
"SEC. 212. AUTHORIZATION.—To carry out the purposes of section 
211, there is authorized to be appropriated to the President $210,000,000 
for the fiscal year 1968, which amounts are authorized to remain avail-
able until expended." 
75 Stat. 442. 
22 use 2359. 
450 
PUBLIC LAW 90-137-NOV. 14, 1967 
[81 STAT. 
(c) Section 214, -whicli relates to American schools and hospitals 
abroad, is amended as follows: 
„„77 Stat 381; 
(1) In subsection (c) strike out "1967, $10,989,000" and substitute 
2rusc 2174. 
"1968, $14,000,000". 
80 Stat. 798. 
(£) In subscctiou (d) strike out "1967, $1,000,000" and substitute 
"1968, $2,986,000". 
(d) At the end of such title I I of chapter 2, add the following new 
section: 
"SEC. 
218. F I S H 
AND OTHER PROTEIN CONCENTRATES.—(a) 
The 
President is authorized to conduct a program designed to demonstrate 
the potential and to encourage the use of fish and other protein con-
centrates as a practical means of reducing nutritional deficiencies in 
less developed countries and areas. This program shall include— 
"(1) studies and activities relating to food technology; 
"(2) development of suitable marketing techniques; 
"(3) development of consumer acceptance programs; and 
"(4) feeding programs designed to demonstrate the nutritional 
value of fish and other protein concentrates as a diet supplement. 
In carrying out his functions under this section, the President shall 
consult with the National Council on Marine Resources and Engineer-
ing Development, appropriate Government agencies and other such 
technical groups or agencies as may be helpful with such activities. In 
accordance with section 601 (b) of this Act, the President shall encour-
age full participation in such program by United States private 
enterprise. 
" (b) The President is authorized to use funds made available under 
this part for the purposes of this section, and is urged to use at least 
$2,500,000 of such funds for such purposes." 
TITLE III 
I N V E S T M E N T 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: 
8o'stlt°'79^8^^' 
(^) Section 221(b), which relates to general authority for invest-
2 2 use 2181. 
ment guaranties, is amended as follows: 
(1) 
In paragraph 
(1), amend the proviso by striking out 
"$7,000,000,000" and substituting "$8,000,000,000". 
(2) Paragraph (2) is amended to read as follows: 
" (2) where the President determines such action to be important 
in the furtherance of the purposes of this title, assuring against 
loss, due to such risks and upon such terms and conditions as the 
President may determine, of— 
" (A) any loan investment for housing projects with appro-
priate participation by the private investor in the loan risk, 
"(B) any loan investment for credit unions where the loan 
investment is made by a credit union, or an association of 
credit unions, which is an eligible United States investor, or 
"(C) not to exceed 75 per centum of any other investment: 
Provided, That guaranties issued under this paragraph (2) shall 
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emphasize economic development projects furthering 
social 
progress and the development of small independent business 
enterprises,: Provided further, That no payment may be made 
'" ^ ''' 
under this paragraph (2) for any loss of equity investment arising 
out of fraud or misconduct for which the investor is responsible, 
or for any loss of loan investment arising out of fraud or misrepre-
sentation for which the investor is responsible: Provided 
further, 
That the total face amount of the guaranties issued under this 
paragraph (2) outstanding at any one time shall not exceed 
$475,000,000, guaranties issued under this paragraph (2) for other 
81 STAT.] 
PUBLIC LAW 9 0 - 1 3 7 - N O V . 14, 1967 
451 
than housing projects similar to those insured by the Department 
of Housing and Urban Development, shall not exceed $315,000,000, 
and guaranties issued under this paragraph (2) for credit unions 
shall not exceed $1,000,000: Provided further, That this authority-
shall continue until June 30,1970." 
(b) Section 222, which relates to general provisions for investment 
^2 us°c 2
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guaranties, is amended as follows: 
(1) In subsection (b), after the words "shall be available for meet-
ing" insert the words "necessary administrative and operating 
expenses of carrying out the provisions of sections 221, 224, and 231 
{including, but not limited to, expenses pertaining to personnel, sup-
plies, and printing) subject to such limitations as may be imposed m 
annual appropriation Acts, for meeting". 
(2) In subsection (d), after the words "in section 222 (b)" insert the 
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following: "(excluding fees required for purposes other than the dis-
charge of liabilities under guaranties)". 
(3) At the end of subsection (h) add the following new sentence: 
^^ ^tat. 798. 
"The allowable rate of interest under this subsection shall be pre-
scribed by the Administrator as of the date the project covered by the 
investment is officially authorized by him and, prior to the execution of 
the contract, he may amend such rate at his discretion, consistent with 
the provisions of this subsection," 
(c) Section 223, which relates to definitions, is amended as follows: 
^2 u^r 2II3 
(1) In paragraph (a), after the words "services pursuant to a" 
insert the words "lease or". 
(2) Paragraph (c) is amended by striking out the period at the end 
'^^ ^*°'- ^^'*-
thereof and inserting a colon and the following: ^''Provided 
further, 
That in the case of any loan investment a final determination of eligi-
bility may be made at the time the guaranty is issued; in all other cases, 
the investor must be eligible at the time a claim arises as well as at the 
time the guaranty is issued." 
(d) Section 224 (c), which relates to housing projects in Latin Amer- go sfa\^*798^^' 
ican countries, is amended (1) by striking out "$450,000,000" and 
22 use 2184. 
"$300,000,000" and substituting '^$500,000,000" and "$325,000,000", 
respectively, (2) by striking out "misconduct" and substituting "mis-
representation", and (3) by striking out "1969" and substituting 
"1971". 
TITLE IV—SURVEYS OF INVESTMENT 
OPPORTUNITIES 
SEC. 105. Section 232 of title IV of chapter 2 of part I of the 
Foreign Assistance Act of 1961, as amended, which relates to surveys 7g^|tar*i0*1^0'' 
of investment opportunities, is amended by striking out "1965" and 
22 use 2192. 
substituting "1968". 
TITLE VI—ALLIANCE FOR PROGRESS 
SEC. 106. 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(h) of the Foreign Assistance Act of 1961, as 
amended, which relates to transfers to international lending institu- 
^° s*^*- ^9-'-
tions, is amended as follows: 
^^ "^^ ^^^^' 
(1) Immediately after "named in section 205" insert "(other than 
the Asian Development Bank)". 
(2) Immediately after "for use" insert "in Latin America". 
(b) Section 252, which relates to authorization, is amended as ^^l ^*^*- ^sa; 
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Stat. 799. 
l O l l O W S . 
22 u s e 2212. 
(1) In the first sentence strike out "and for each of the fiscal years 
1968 and 1969, $750,000,000" and substitute "and for the fiscal year 
1968, $578,000,000". 
80 Stat. 800. 
22 u s e 2217b. 
452 
PUBLIC LAW 90-137-NOV. 14, 1967 
[81 STAT. 
^o^^^a^ 
(2) Tlie second sentence is hereby repealed. 
(3) In the third sentence strike out "June 30, 1969" and substitute 
"June 30,1968". 
(4) Insert " ( a ) " immediately after "SEC. 252. AUTHORIZATION.—" 
,j „ 
and at the end thereof add the following new subsection: 
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" (b) There is hereby authorized to be appropriated to the President 
for the fiscal year 1968, $714,000 for grants to carry out programs and 
activities of the Partners of the Alliance in accordance with the 
purposes of this title." 
TITLE V n i — S O U T H E A S T ASIA MULTILATERAL AND REGIONAL 
• ' 
PROGRAMS 
Repeal. 
'• 
gj,^. iQ^ rpitlc V I I I of chaptoT 2 of part I of the Foreign Assistance 
Act of 1961, as amended, which relates to Southeast Asia multilateral 
and regional programs, is amended by striking out section 273. 
TITLE IX—UTILIZATION OF DEMOCRATIC INSTITUTIONS I N 
DEVELOPMENT 
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SEC. 108. Section 281 of title I X of the Foreign Assistance Act of 
2 2 use 2218. 
1961, as amended, which relates to utilization of democratic institutions 
in development, is amended by inserting " ( a ) " immediately after 
"SEC. 281." and by adding at the end thereof the following new 
subsections: 
t. 
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" (b) In order to carry out the purposes of this title, programs under 
this chapter shall— 
" (1) recognize the differing needs, desires, and capacities of the 
people of the respective developing countries and areas; 
"(2) use the intellectual resources of such countries and areas 
in conjunction with assistance provided under this Act so as to 
. 
encourage the development of indigenous institutions that meet 
^t 
their particular requirements for sustained economic and social 
progress; and 
" (3) support civic education and training in skills required for 
effective participation in governmental and political processes 
essential to self-government. 
"(c) In the allocation of funds for research under this chapter, 
emphasis shall be given to research designed to examine the political, 
social, and related obstacles to development in countries receiving 
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assistanceunder part lof this Act. 
: 
"(d) Emphasis shall also be given to the evaluation of relevant past 
and current programs under part I of this Act and to applying this 
experience so as to strengthen their effectiveness in implementing 
the objectives of this title." 
TITLE X—PROGRAMS RELATING TO POPULATION GROWTH 
SEC. 109. Chapter 2 of part I of the Foreign Assistance Act of 1961, 
!5 ?
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as amended, is amended by adding at the end thereof the following 
22 u s e 2161- 
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: 
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2218. 
n e w t l t l e s : 
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" T I T L E X 
^PROGRAMS RELATING TO POPULATION GROWTH 
"SEC. 291. GENERAL PROVISIONS.— (a) It is the sense of the Con-
. -': ..: 
gress that, while every nation is and should be free to determine its 
own policies and procedures with respect to problems of population 
growth and family planning within its own boundaries, nevertheless, 
voluntary family planning programs to provide individual couples 
with the knowledge and medical facilities to plan their family size in 
81 STAT.] 
PUBLIC LAW 90-137-NOV. 14, 1967 
453 
accordance with their own moral convictions and the latest medical 
information, can make a substantial contribution to improve health, 
family stability, greater individual opportunity, economic develop-
ment, a sufficiency of food, and a higher standard of living. 
"(b) To carry out the intent of Congress as expressed in subsection 
Famiiy-pianning 
(a), the President is authorized to provide assistance for programs 
relating to population growth in friendly foreign countries and areas, 
on such terms and conditions as he shall determine, to foreign govern-
ments, the L^nited Nations, its specialized agencies, and other inter-
national organizations and programs, L'nited States and foreign non-
profit organizations, universities, hospitals, accredited health institu-
tions, and voluntary health or other qualified organizations. 
' 
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"(c) In carrying out programs authorized in this title, the President 
' 7^l^l ' '1 
shall establish reasonable procedures to insure, whenever family-
planning assistance from the United States is involved, that no in-
dividual will be coerced to practice methods of family j)lanning in-
consistent with his or her moral, philosophical, or religious beliefs. 
"(d) As used in this title, the term 'programs relating to popula- 
"Programs re-
tion growth' includes but is not limited to demographic studies, medi- tfon^gr^wth"/"^^ 
ca], psychological, and sociological research and voluntary family 
planning programs, including personnel training, the construction 
and staffing of clinics and rural health centers, specialized training 
of doctors and paramedical personnel, the manufacture of medical 
supplies, and the dissemination of family-planning information, and 
provision of medical assistance and supplies, 
"SEC. 292. AUTHORIZATION.—Of the funds provided to carry out 
the provisions of part I of this Act for the fiscal year 1968, $35,000,000 ^22^ use 2151-
shall be available only to carry out the purposes of this title and, not-
withstanding any other provision of this Act, funds used for such pur-
poses may be used on a loan or grant basis. 
" T I T L K XI—FOOD PRODUCTIOX TARGETS AND REPORTS 
"SEC. 295. FOOD PRODUCTION TARGETS AND REPORTS.—In making 
his recommendations to the Congress for programs for the fiscal year 
1969 and each fiscal year thereafter, wherever appropriate, the Presi-
dent shall, for each country receiving assistance under this Act which 
he finds has a substantial food deficit, include— 
" (1) descriptions of proposed programs, if any, in the areas of 
food production, storage, and distribution, and voluntary family 
. 
planning; 
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"(2) information on achievement targets in food production, 
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storage, and distribution, and their relationship to expected 
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changes in total population; and 
"(3) a detailed report on progress with respect to food pro-
duction, storage, and distribution, and the relationship of this 
progress to population." 
CHAPTER 3—INTERNATIONAL ORGANIZATIONS AND 
PROGRAMS 
SEC. 110. Chapter 3 of part I of the Foreign Assistance Act of 1961, 
as amended, which relates to international organizations and programs, 
is amended as follows: 
(a) Section 301, which relates to general authority, is amended by 75 st^at^. 433. 
adding at the end thereof the following new subsection: 
^^ """ ^^ ' 
" (d) In any case in which a fund established solely by United States 
contributions under this or any other Act is administered by an inter-
national organization under the terms of an agreement between the 
United States and such international organization, such agreement 
22 u s e 2221. 
454 
PUBLIC LAW 90-137-NOV. 14, 1967 
[81 STAT. 
80 Stat. 801. 
22 use 2222. 
Indus Basin 
Development, ap-
propriation. 
United Nations, 
peacekeeping. 
Report to 
Congress. 
75 Stat. 434; 
80 Stat. 801. 
22 use 2241. 
Supporting as-
sistance, limita-
tion. 
80 Stat. 801. 
22 use 2242. 
shall provide that the Comptroller General of the United States shall 
conduct such audits as are necessary to assure that such fund is admin-
istered in accordance with such agreement. The President shall 
undertake to modify any existmg agreement entered into before the 
date of enactment of this subsection to conform to the requirements of 
the preceding sentence." 
(b) Section 302, which relates to authorization, is amended as 
follows: 
(1) In subsection (a) strike out all after "for such purposes," and 
substitute "for the fiscal year 1968, $141,000,000." 
(2) Subsection (b) is amended to read as follows: 
"(b) There is authorized to be appropriated to the President for 
loans for Indus Basin Development to carry out the purposes of this 
section, in addition to funds available under this or any other Act 
for such purposes, for use beginning in the fiscal year 1969, $51,220,000. 
Such amounts are authorized to remain available until expended." 
(c) Immediately after section 303, add the following new section: 
"SEC. 304. UNITED NATIONS PEACEKEEPING.—It is the sense of the 
Congress that the cause of international order and peace can be en-
hanced by the establishment, within the United Nations Organization, 
of improved arrangements for standby forces being maintained by 
United Nations members for United Nations peacekeeping purposes in 
accordance with the United Nations Charter. The President is there-
fore requested to explore through the United States Representative to 
the United Nations, and in cooperation with other members of the 
United Nations and the United Nations Secretariat, both the means 
and the prospects of establishing such peacekeeping arrangements. 
The President shall submit to the Congress, not later than March 31, 
1968, a report upon the outcome of his initiatives, together with such 
recommendations as he may deem appropriate." 
CHAPTER 4—SUPPORTING ASSISTANCE 
SEC. 111. 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 (1) 
by striking out all after "political stability" and substituting a period, 
and (2) by adding at the end thereof a new sentence as follows: "The 
authority of this chapter shall not be used to furnish assistance to more 
than twelve countries in any fiscal year." 
(b) Section 402, which relates to authorization, is amended (l)^by 
striking out "1967" and substituting "1968", and (2) by striking out 
"$715,000,000" and substituting "$660,000,000". 
(c) At the end of such chapter 4 add the following new section: 
"SEC. 403. UNITED STATES REFUND CLAIMS.—It is the sense of the 
Congress that the President should seek the agreement of the Govern-
ment of Vietnam to the establishment and maintenance of a separate 
special account of United States dollars, which account shall be avail-
able solely for withdrawals by the United States, at such times and in 
such amounts as the President may determine, in satisfaction of United 
States dollar refund claims against the Government of Vietnam 
arising out of operations conducted under this Act. Such account 
should be established in an amount not less than $10,000,000 and main-
tained thereafter at a level sufficient to cover IJnited States refund 
claims as they arise." 
81 STAT.] 
PUBLIC LAW 9 0 - 1 3 7 - N O V . 14, 1%7 
455 
CHAPTER 5—CONTINGENCY FUND 
SEC. 112. Section 451 of the Foreign Assistance Act of 1961, as goltal^'^soi^'^' 
amended, which relates to the contingency fund, is amended by strik- 
22 use 2261. 
ing out "1967" and "$110,000,000" and substituting "1968" and 
"$50,000,000", respectively. 
CHAPTER 6—ASSISTANCE TO COUNTRIES HAVING 
AGRARIAN ECONOMIES 
22 use 2271. 
22 use 2301. 
77 Stat. 384. 
SEC. 113. Section 461 of chapter 6 of the Foreign Assistance Act of 
1961, as amended, which relates to assistance to countries having agrar-
ian economies, is amended by inserting " ( a ) " immediately before 
"Wherever" and by adding at the end thereof the following new 
subsection: 
"(b) In presenting proposals to the Congress for fiscal year 1969 
the President shall include recommendations for improving and estab-
lishing agricultural research and training facilities in tropical and sub-
tropical regions of Latin America, Africa, and Asia. These recom-
mendations shall be developed after consultation with the Department 
of Agriculture, land-grant colleges of agriculture, and other appro-
priate institutions and organizations, including those in the regions 
concerned." 
PART I I 
MILITARY ASSISTANCE AND SALES 
SEC. 201. Part I I of the Foreign Assistance Act of 1961, as amended, 
which relates to military assistance and sales, is amended as follows: 
(a) Section 502, which relates to statement of policy, is amended as 
follows: 
(1) Section 502 is redesignated as section 501. 
(2) In such new section 501, immediately before the last paragraph 
insert the following new paragraph: 
"It is the sense of the Congress that in the administration of this 
part priority shall be given to the needs of those countries in danger 
of becoming victims of active Communist or Communist-supported 
aggression or those countries in which the internal security is 
threatened by Communist-inspired or Communist-supported internal 
subversion." 
(b) Section 503, which relates to general authority, is amended as 
follows: 
(1) Subsection (a) is amended by striking out ", lease, sale, 
exchange, grant, or any other means" and substituting "or grant". 
(2) Subsection (d) is amended by striking out "; and" and substi-
tuting a period. 
. , 
, 
(3) Subsection (e) is amended as follows: 
(A) Subsection (e) is redesignated as section 525. 
(B) In such new section 525, strike out "guarantying, insuring, 
'.-
coinsuring, and reinsuring" and substitute "GUARANTIES.—(a) Until 
June 30, 1968, the President may guarantee, insure, coinsure, and 
reinsure". 
(C) In such new section 525(a), strike out "such" the second place 
it appears and substitute "any". 
(c) Section 504(a), which relates to authorizations, is amended as 
22 u^c 2312 
follows: 
75 Stat. 434. 
22 use 2311. 
456 
PUBLIC LAW 90-137-NOV. 14, 1967 
[81 STAT. 
Cost-sharing 
expenses. 
80 Stat. 802. 
22 use 2312. 
75 Stat. 436; 
77 Stat. 384; 
79 Stat. 656. 
22 use 2313. 
75 Stat. 436; 
76 Stat. 259; 
80 Stat. 803. 
22 u s e 2314. 
75 Stat. 437; 
79 Stat. 657. 
22 use 2315. 
76 Stat. 259; 
78 Stat. 1011. 
75 Stat. 437; 
80 Stat. 803. 
22 use 2316. 
U.S. liabilities 
and obligations, 
discharge. 
Funds, availa-
bility. 
22 use 2312. 
(1) Strike out all of the first sentence up to, but excluding, the colon 
and the proviso, and substitute "There is authorized to be appropriated 
to the President to carry out the purposes of this part not to exceed 
$510,000,000 for the fiscal year 1968". 
(2) Immediately after the first sentence, insert the following: "Of 
the amount appropriated pursuant to this subsection for the fiscal year 
1968, $24,100,000 shall be available solely for cost-sharing expenses of 
United States participation in the international military headquarters 
and related agencies program. No part of any funds made available 
under any other provision of law shall be used for the cost-sharing 
expenses referred to in the preceding sentence.". 
(d) Section 505(a), which relates to utilization of assistance, is 
amended as follows: 
(1) Subsection (a) is redesignated as section 502. 
(2) At the beginning of such new section 502, strike out "UTILIZA-
TION or ASSISTANCE.— (a) Military assistance" and substitute "UTILIZA-
TION OF DEFENSE ARTICLES AND DEFENSE SERVICES.—Defense articles 
and defense services", 
(e) Section 506, which relates to conditions of eligibility, is redesig-
nated as section 505. 
f) Section 507(a), which relates to sales, is amended as follows: 
(1) Subsection (a) is redesignated as section 522. 
(2) In such new section 522, strike out "SALES" as the section 
caption and substitute "SALES FROM STOCK". 
(3) In such new^ section 522, strike out "subsection" each place it 
appears and substitute in each such place "section". 
(g) Section 507(b), which relates to sales, is amended as follows: 
(1) Subsection (b) is redesignated as section 523. 
(2) In such new section 523, insert "PROCUREMENT FOR SALES.—" 
as the section caption. 
(3) In the third sentence of such new section 523, strike out 
"credited to the account established under section 508" and substitute 
"transferred to the general fund of the Treasury". 
(4) Strike out "subsection" in the last sentence and substitute 
"section". 
(h) Section 508, which relates to reimbursements, is amended as 
follows: 
(1) Section 508 is redesignated as section 524. 
(2) In such new section 524, insert " ( a ) " immediately after 
"REIMBURSEMENTS.—". 
(3) Insert the following new subsection at the end of such new 
section 524: 
"(b) (1) The special fund account established under subsection (a) 
of this section shall terminate as of the end of June 30,1968, or on such 
earlier date as may be selected by the President. 
"(2) Upon the termination of such fund account pursuant to 
paragraph (1), all of the assets of such fund account (includingloans 
and other payments receivable) shall be transferred to a special 
account in the Treasury, which special account shall be available 
solely for the purpose of discharging outstanding liabilities and 
obligations of the United States arising out of credit sales agreements 
entered into, and guaranties issued, under this part, prior to June 30, 
1968, Any moneys in such special account in excess of the aggregate 
United States dollar amount of such liabilities and obligations shall 
be transferred from time to time to the general fund of the Treasury. 
"(3) After the termination of such fund 
account pursuant to 
paragraph (1), the President may finance sales of defense articles 
and 
defense 
services to 
foreign 
countries 
and 
international 
organizations only from appropriations made available pursuant to 
section 504 to carry out this part and only if such countries or 
81 STAT.] 
PUBLIC LAW 90-137-NOV. 14, 1967 
457 
international organizations agree to pay not less than the value thereof 
in United States dollars. All payments of principal and interest on 
account of such sales shall be transferred to the general fund of the 
Treasury: Provided^ That the limitations of this paragraph shall not 
apply to sales made pursuant to sections 522 and 523/' 
^"^e, p. 456. 
(i) Section 509, which relates to exchanges and guaranties, is 78^313^*10^1^^' 
amended as follows: 
22 use 2;; 17. 
(1) Subsection (a) is hereby repealed. 
Repeal. 
(2) Subsection (b) is redesignated as section 525(b) and is 
amended by adding at the end thereof the following: "The total face 
amount of contracts of guaranty, insurance, coinsurance, and 
reinsurance (including contracts with any agency of the United States 
Government) 
issued in the fiscal year 1968 shall not exceed 
$190,000,000." 
(j) Section 510 which relates to special authority, is amended as 
^^ use 2318. 
follows: 
(1) Section 510 is redesignated as section 506. 
(2) Strike out "1967'' each place it appears and substitute in each 
^° ^'^'- ^'-^^• 
such place "1968". 
(k) Section 511, which relates to restrictions on military aid to „ ''s stat. 438; 
Latin America, is amended as follows: 
22 use 2319. 
(1) Section 511 is redesignated as section 507. 
(2) In subsection (a), strike out "section 507" and substitute 
"chapter 3"; and strike out the colon and the proviso. 
(1) Section 505(b), which relates to utilization of assistance, is 7y'^lt31^384'-^' 
redesignated as subsection (c) of such new section 507. 
79 stat! 657! 
(m) Section 512 which relates to restrictions on military aid to 
22 use 2313. 
Africa, is amended as follows: 
(1) Section 512 is redesignated as section 508. 
'^^ stat. 384. 
(2) Strike out "shall be furnished on a grant basis" in the first sen-
tence and substitute "or sales shall be furnished under this Act". 
(3) Strike out "The value of grant programs of defense articles" in 
the second sentence and substitute "The total value of military assist-
ance and sales". 
(4) Strike out "other than section 507" in the second sentence. 
(5) Strike out "$25,000,000" and substitute ''$40,000,000". 
(n) Section 513, which relates to the certification of recipient's capa- 
^^ f
A
f
*
- „^°\^-
bility, IS amended as follows: 
(1) Section 513 is redesignated as section 509. 
(2) In subsection (a), strike out "section 507" and substitute "chap- 
: 
.
5 e -•; 
ter3". 
(0) Section 514, which relates to administration of sales and 
lo lisc 2Z22 
exchange programs involving defense articles and services, is amended 
as follows: 
(1) Section 514 is redesignated as section 521. 
(2) Insert the following new chapter heading before such new sec-
tion 521: 
"CHAPTER 3—FOREIGN MILITARY SALES". 
(3) In the section caption strike out "AND EXCHANGE". 
^ 
, . 
(4) In subsection (a), strike out "or exchange". 
.'. ~\ 
(5) At the end of subsection (a), add the following: "It is the pur-
pose of this chapter to authorize measures consonant with that objec-
tive to enable allied and other friendly foreign countries, having suffi-
cient wealth to develop and maintain their defense capacities without 
undue burden to their economies, to acquire defense articles and 
defense services on a reimbursable basis. In carrying out this chapter, 
special emphasis shall be placed on procurement in the United States, 
but consideration shall also be given to co-production or licensed pro-
duction outside the United States of defense articles of United States 
458 
PUBLIC LAW 90-137-NOV. 14, 1967 
[81 STAT. 
80 Stat. 803. 
22 u s e 2322. 
Defense articles 
and services, con-
ditions for fur-
nishing. 
Report to 
Congress. 
origin when such production best serves the foreign policy, national 
security, and economy of the United States. In evaluating any sale 
proposed to be made pursuant to this chapter, there shall be taken 
into consideration (1) the extent to which the proposed sale damages 
or infringes upon licensing arrangements whereby United States 
entities have granted licenses for the manufacture of the defense 
articles selected by the purchasing country to entities located in 
friendly foreign countries, which licenses result in financial returns 
to the United States, and (2) the portion of the defense articles so 
manufactured which is of United States origin." 
(6) Subsection (b) is amended as follows: 
(A) Strike out "section 511(a)-' and substitute "section 507(a)". 
(B) Strike out "85,000,000" and substitute "$75,000,000". 
(C) Strike out the colon and the proviso. 
(7) Add the following new subsection: 
"(c) No defense article or defense service shall be furnished under 
this chapter to any country or international organization unless (1) 
the President finds that the furnishing of defense articles and defense 
services to such country or international organization will strengthen 
the security of the United States and promote world peace, (2) the 
country or international organization shall have agreed not to trans-
fer title to, or possession of, any defense article so furnished to it to 
any other person, organization, or government, unless the consent of 
the President has first been obtained, and (3) the country or inter-
national organization is otherwise eligible to receive defense articles 
or defense services. The President shall promptly submit a report to 
the Speaker of the House of Representatives and to the Committee 
on Foreign Relations of the Senate on the implementation of each 
agreement entered into pursuant to clause (2) of this subsection." 
PART I I I 
80 Stat. 804. 
22 u s e 2351. 
80 Stat. 499. 
75 Stat. 441. 
22 use 2358. 
76 Stat. '?'50; 
80 Stat. 804. 
22 use 2360. 
75 Stat. 442. 
22 u s e 2361. 
: 
,
, 
CHAPTER 1—GENERAL 
PROVISIONS 
SEC. 301. Chapter 1 of part I I I of the Foreign Assistance Act of 
1961, as amended, which relates to general provisions, is amended as 
follows: 
(a) Section 601(c)(3), which relates to an International Private 
Investment Advisory Council on Foreign Aid, is amended by striking 
out "5 of the Administrative Expenses Act of 1946 (5 U.S.C. 73b-2)" 
and substituting "5703 of title 5 of the United States Code". 
(b) Section 608(a), which relates to acquisition and use of excess 
property, is amended by inserting immediately before the first sentence 
the following: "It is the sense of the Congress that in furnishing assist-
ance under part I excess personal property shall be utilized wherever 
practicable in lieu of the procurement of new items for United States-
assisted projects and programs." 
(c) Section 610(b), which relates to transfers between accounts, is 
amended (1) by striking out "510" and substituting "506", and (2) by 
striking out "$5,000,000" and substituting "$9,000,000". 
(d) Section 611, which relates to completion of plans and cost esti-
mates, is amended by adding at the end thereof the following new 
subsection: 
" (e) In addition to anj^ other requirements of this section, no assist-
ance authorized under titles I, II, or VI of chapter 2 or chapter 4 of 
part I of this Act shall be furnished with respect to any capital assist-
ance project estimated to cost in excess of $1,000,000 until the head of 
the agency primarily resj)onsible for administering part I of the Act 
has received and taken into consideration a certification from the 
81 STAT.] 
PUBLIC LAW 90-137-NOV. 14, 1967 
459 
principal officer of such agency in the country in Avhich the project is 
located as to the capability of the country (both financial and human 
,, 
resources) to eifectively maintain and utilize the project taking into 
account among other things the maintenance and utilization of proj-
ects in such country previously iijumced or assisted by the United 
K^tateS. 
_ 
.
.
.
. 
T 1 
75 Stat 444 
(e) Section 614(a), which relates to special authorities, is amended 
22 use 2364. 
by striking out "510" and substituting "506". 
22 use 2370 
(f) Section 620, which relates to prohibitions against furnishing 
assistance, is amended as follows : 
(1) Subsection (j) is amended to read as follows: 
u s ro ert 
"(j) The President shall consider terminating assistance under this^ damagJ'bTm'ab 
or any other Act to any country which permits, or fails to take ade- action. 
quate measures to prevent, the damage or destruction by mob action of 
^^ ^
*
^
*
" 
United States property within such country, and fails to take appro- 
. . t 
pri'dte measures to prevent a recurrence thereof and to provide ade-
quate compensation for such damage or destruction." 
(2) Subsection (k) is amended by striking out "510" and sub- 
^° ^'^'- *°^-
stituting "506". 
(3) Subsection (n) is amended to read as follows: 
"(n) No loans, credits, guaranties, or grants or other assistance 
, , 
shall be furnished under this or any other Act, and no sales shall be 
made under the Agricultural Trade Development and Assistance Act 
of 1954, to any country which sells or furnishes to North Vietnam, 8o^stir*i526*' 
or which permits ships or aircraft under its registry to transport 
7 use i69]. 
to or from North Vietnam, any equipment, materials, or commodities, "°*^ 
so long as the regime in North Vietnam gives support to hostilities in 
South Vietnam." 
(4) At the end of section 620, add the following new subsections: 
"(s) In furnishing development assistance under this Act, and in 
*^°""*'"'f!„Mf^ 
1 • 
1 
T
i
i
'
i 
T / T 1 1 T X 1 
i
i
- 
excessive mili-
making sales under the Agricultural Irade Development and Assist- tary expenditures, 
ance Act of 1954, as amended, the President shall take into account (1) termination o
f 
the percentage of the recipient or purchasing country s budget which 
is devoted to military purposes, and (2) the degree to which the 
recipient or purchasing country is using its foreign exchange resources 
to acquire military equipment. When the President finds that develop-
ment assistance under this Act, or sales under the Agricultural Trade 
Development and Assistance Act of 1954, as amended, are being 
diverted to military expenditures, or a recipient or purchasing country 
is diverting its own resources to unnecessary military expenditures, 
to a degree which materially interferes with its development, the 
President shall terminate such assistance and sales until he is assured 
that such diversion w^ll no longer take place. No other provision 
of this Act shall be construed to authorize the President to waive the 
provisions of this subsection. 
"(t) No assistance shall be furnished under this or any other Act, 
and no sales shall be made under the Agricultural Trade Development 
and Assistance Act of 1954, in or to any country which has severed or 
hereafter severs diplomatic relations with the United States or with 
which the United States has severed or hereafter severs diplomatic 
relations, unless (1) diplomatic relations have been resumed with 
such country and (2) agreements for the furnishing of such assistance 
or the making of such sales, as the case may be, have been negotiated 
and entered into after the resumption of diplomatic relations with 
such country. 
" (u) In any decision to provide or continue to provide any program 
of assistance to any country under the Foreign Assistance Act of 
1961, as amended, there shall be taken into account the status of the 
country with respect to its dues, assessments, and other obligations to 
assistance. 
460 
PUBLIC LAW 90-137-NOV. 14, 1967 
[81 STAT. 
59 Stat. 1040. 
Report to Con-
tlie United Nations; and where such country is delinquent with respect 
to any such obligations for the purposes of the first sentence of Article 
gress."" '" """ 
19 of the United Nations Charter, the President shall furnish the Com-
mittee on Foreign Relations of the Senate and the Speaker of the 
House of Representatives a report setting forth the assurance given 
by the government of the country concerned of paying all of its ar-
rearages and of placing its payments of such obligations on a current 
basis, or a full explanation of the unusual or exceptional circumstances 
which render it economically incapable of giving such assurance." 
CHAPTER 2—ADMINISTRATIVE PROVISIONS 
SEC. 302. Chapter 2 of part I I I of the Foreign Assistance 4tct of 
H-' •.. , 
1961, as amended, which relates to administrative provisions, is 
amended as follow^s: 
76stlT^26V'^' 
^^) Section 624(d)(2)(B), which relates to statutory officers, is 
22 use 2384. 
amended by striking out "of assistance" each place it appears. 
22 use 2385. 
(b) Scctlou 625(b), wliicli relates to employment of personnel, is 
amended as follows: 
(1) Strike out "the Classification Act of 1949, as amended (5 U.S.C. 
1071 et seq.)" and substitute "section 5332 of title 5 of the United 
Ante, 
p. 199. 
g^^^^^g Q^^J^^^^ 
(2) Strike out "505 of the Classification Act of 1949, as amended" 
80 Stat. 453. 
^^^ substitute "5108 of title 5 of the United States Code". 
oo fj^^'o^oc 
(^) Section 625(c), which relates to compensation of personnel, is 
amended as follows: 
(1) Strike out "the Classification Act of 1949, as amended," and 
substitute "section 5332 of title 5 of the United States Code". 
(2) Strike out "505 of the Classification Act of 1949, as amended" 
and substitute "5108 of title 5 of the United States Code". 
79ltar66o^^' 
(d) SectioH 625(d)(2), third proviso, which relates to initial 
assignment in the United States of Foreign Service Reserve officers, 
is amended by striking out "forty" and substituting "fifty". 
22 use 2386. 
^g^ Sectiou 626, which relates to employment of experts, consul-
tants, and retired officers, is amended as follows: 
(1) In subsection (a), strike out "15 of the Act of August 2, 1946, 
as amended (5 U.S.C. 55a)" and substitute "3109 of title 5 of the 
United States Code". 
(2) In subsection (b)— 
(A) strike out "section 13 of the Civil Service Retirement Act, 
as amended (5 U.S.C. 2263)" and substitute "sections 3323(a) 
and 8344 of title 5 of the United States Code"; and 
78 Stat. 484. 
(g) stj.i]jg o^^ «201 of the Dual Compensation Act" and sub-
stitute "5532 of title 5 of the United States Code". 
22 us^c 23\^9. 
(f) Section 629(b), w^hich relates to status of personnel detailed to 
foreign governments or international organizations, is amended by 
striking out "1765 of the Revised Statutes (5 U.S.C. 70)" and substi-
tuting "5536 of title 5 of the United States Code". 
22 use 2392. 
^g^ Scctiou 632(d), which relates to allocation and reimbursement 
among agencies, is amended by striking out "507 and 510" and substi-
tuting "506, 522, and 523". 
22 use 2394. 
Q^^ Sectiou 634, Avhich relates to reports and information, is 
amended as follows: 
1;;: 
•• 
r 4; i 
an^rdma ^^r^s^in- 
(^) Subsectiou (d) is amended as foUows: 
tation to congres- 
(A) Immediately precedinjr the first sentence insert the following: 
sionai committees. ""VVheu requests are presented to the Congress for appropriations for 
fiscal year 1969 to carry out programs under this Act, the programs to 
be carried out with the funds appropriated for that fiscal year shall 
also be presented to the Committee on Foreign Relations of the Senate, 
81 STAT.] 
PUBLIC LAW 90-137-NOV. 14, 1967 
461 
if requested by the cliainiiaii of that committee, and to tlie Commit-
tee on Foreign Affairs of the House of Representatives, if requested 
by the chairman of that committee." 
(B) Inmiediately preceding the last sentence insert the following: 
"'xVny such presentation material shall also include (1) a cliart showing 
on a country-by-country basis the full extent of all L^nited States assist-
ance planned or expected for each such country for the next fiscal 
year, including economic assistance and military grants and sales under 
tliis Act and sales under the Agricultural Trade Development and 
Assistance Act of 1954, as amended, (i2) details of proposed contribu-
tions by the United States to multilateral financial agencies, for the 
next fiscal year, and (3) a statement of projects, on a country-by-
country basis, for which financing was supplied during the last fiscal 
year through the Export-Import Bank." 
(C) In the last sentence, immediately preceding the period, insert 
the following: "and of any finding, including his reasons therefor, 
under section 508 or 521 (c)". 
(2) Add the following new subsections at the end thereof: 
''(g) The Secretary of State shall transmit to the Speaker of the 
House of Representatives and the Committee on Foreign Relations of 
the Senate semiannual reports of all exports during the preceding six 
months of significant defense articles on the laiited States Munitions 
List to any foreign government, international organization, or other 
foreign recipient or purchaser, by the United States Government 
under this Act or any other authority, or by any individual, coi-po-
ration, partnership, or other association doing business in the United 
States. Such reports shall include, but not be limited to, full informa-
tion as to the particular defense articles so exported, the particular re-
cipient or purchaser, the terms of the export, including its selling 
price, if any, and such other information as may be appropriate to 
enable the Congress to evaluate the distribution of United States de-
fense articles abroad. In preparing such reports the Secretary of State 
is authorized to utilize the latest statistics and information available in 
the various departments and agencies of the Government. 
"(h) The background documents transmitted to Congress in each 
fiscal year supporting requests for new autliorizations and appropri-
ations to carry out the programs under part II of this Act shall con-
tain information concerning the proposed funding levels for military 
assistance and sales to South Vietnam, Thailand, and Laos." 
(i) Section 635, which relates to general authorities, is amended as 
follows: 
(1) Subsection (e) is amended (A) by inserting, immediately pre-
ceding the first word, a paragraph designation "(1)", and (B) by add-
ing at the end the following new paragraph: 
"(2) Any agency of the United States Government is authorized to 
pay the cost of health and accident insurance for foreign employees of 
that agency while those employees are absent from their place of em-
ployment abroad for purposes of training or other official duties." 
(2) Subsection (g) is amended by striking out "and sales". This 
paragraph shall take effect on June 30,1968. 
(J) Section 636(a) (5), which relates to purchase and hire of motor 
vehicles, is amended as follows: 
(1) Strike out "(5 U.S.C. 78(c)(2))" and substitute "(31 U.S.C. 
638a (c)(2)),". 
(2) Strike out "(5 U.S.C. 78a-l)" and substitute "(31 U.S.C. 
638c)". 
(k) Section 636(a) (16), which relates to services of certain com-
missioned officers, is amended by striking out "Coast and Geodetic 
Survey" each place it appears and substituting "Environmental Sci-
ence Services Administration" in each such place. 
68 Stat. 454; 
80 Stat. 1526. 
7 u s e 1691 
note. 
22 u s e 2311. 
Ante, 
p. 457. 
Defense arti-
cles, exports. 
Reports to Con-
gress. 
75 Stat. 456. 
22 u s e 2395. 
Foreign employ-
ees, payment of 
health insurance 
costs. 
79 Stat. 660. 
75 Stat. 457. 
22 u s e 2396. 
75 Stat. 458. 
462 
PUBLIC LAW 90-137-NOV. 14, 1967 
[81 STAT. 
75 Stat. 459. 
22 u s e 2396. 
79 Stat. 660. 
79 Stat. 661. 
22 u s e 2399a 
(1) Section 636(d), which relates to assistance for dependents' 
schools abroad, is amended by striking out "$1,500,000" and substitut-
ing "$2,500,000". 
(m) Section 636(e), which relates to training of Foreign Service 
personnel, is amended by striking out "301 of the Dual Compensation 
Act (5 U.S.C. 3105)" and substituting "5533 of title 5 of the United 
80 Stat. 483. 
States Code]'. 
(n) Section 636(g), which relates to expenditures of military 
assistance funds, is amended by striking out "3 of the Travel Expense 
Act of 1949, as amended (5 U.S.C. 836)," and substituting "5702(c) 
of title 5 of the United States Code". 
(o) Section 636, which relates to provisions on uses of funds, is 
amended by adding at the end thereof the following new subsection: 
"(i) Notwithstanding section 640 or any other provision of this 
Act, none of the funds made available to carry out this Act shall be 
used to finance the purchase, sale, long-term lease, exchange, or guar-
, 
anty of a sale of motor vehicles unless such motor vehicles are manu-
factured in the United States: Provided, That where special circum-
stances exist the President is authorized to waive the provisions of 
this section in order to carry out the purposes of this Act." 
22 us^c 2397 
^P^ Scctiou 637(a), which authorizes appropriations for adminis-
trative expenses of the agency administering part I, is amended by 
striking out "1967 not to exceed $55,813,500" and substituting "1968, 
$55,814,000,". 
(q) Section 640, which relates to military sales, is amended (1) by 
striking out ", exchange, or the guaranty of a sale,", (2) by striking 
out "503" and substituting "521", and (3) by striking out "assisting 
of" and substituting "furnishing of defense articles and defense 
services to". 
CHAPTER 3—MISCELLANEOUS PROVISIONS 
SEC. 303. Chapter 3 of part I I I of the Foreign Assistance Act of 
1961, as amended, which relates to miscellaneous provisions, is 
amended as follows: 
(a) Section 644, which relates to definitions, is amended as follows: 
22 u*sc 2
-
W
3 
(1) I^ subsection (d), insert "production facilities, utilization facili-
ties," between "special nuclear material," and "or atomic weapons", and 
add "or articles involving Restricted Data" before the period at the end 
. 
' . 
of the subsection. 
(2) In subsection (e), strike out "and formerly Restricted Data" 
and, immediately before the period at the end thereof insert the follow-
ing : ", and data removed from the Restricted Data category under sec-
tion 142d of that Act". 
77 Stat. 389. 
(3) Subsectiou (f) is amended as follows: 
(A) Strike out "including orientation, training aid" and "includ-
ing the transfer of limited quantities of defense articles for test, eval-
uation, or standardization purposes,". 
"Training." 
^g^ Add the followiug new second sentence: " 'Training' includes 
formal or informal instruction of foreign students in the United States 
, 
., 
™ or overseas by officers or employees of the United States, contract tech-
nicians, contractors (including instruction at civilian institutions), or 
by correspondence courses, technical, educational, or information pub-
lications and media of all kinds, training aid, orientation, training 
exercise, and military advice to foreign military units and forces." 
(b) At the end of such chapter insert a new section as follows: 
^ 
• 
."SEC. 650. USE or UNITED STATES ARMED FORCES.—The furnishing 
of economic, military, or other assistance under this Act shall not be 
construed as creating a new commitment or as affecting any existing 
81 STAT.] 
PUBLIC LAW 90-138-NOV. 15, 1967 
463 
70 Stat. 523; 
7 2 Stat. 27-!. 
commitment to use Armed Forces of the United States for the defense 
of any foreign country." 
PART 
IV—AMENDMEA^TS 
TO 
OTHER ACTS 
SEC. 401. (a) The Joint Resolution entitled "Joint Resolution to 
authorize participation by the United States in parliamentary con-
ferences of the North Atlantic Treaty Organization", approved July 
11, 1956 (22 U.S.C. 1928a—192Sd, inclusive), is amended as follows: 
(1) Section 2 of such Joint Resolution (22 U.S.C. 1928b) is amended 
by striking out "North Atlantic Treaty Organization Parliamentary 
Conference" and substituting "North Atlantic Assembly". 
(2) Sections 2, 3, and 4 of such Joint Resolution (22 U.S.C. 1928b, 
1928c, and 1928d) are amended by striking out "North Atlantic Treaty 
Parliamentary Conference" each place it appears and substituting in 
each such place "North Atlantic Assembly". 
(3) Section 2 of such Joint Resolution (22 U.S.C. 1928b) is further 
amended by striking out "such Conference" each place it appears and 
substituting in each such place "such Assembly". 
(b) Section 105(b) of the Legislative Branch Appropriation Act, 
1961 (22 U.S.C. 276c—1), is amended by striking out "the NATO 
parliamentarian's Conference" and substituting "the North Atlantic 
Assembly". 
SEC. 402. The first section of the Act entitled "An Act to authorize 
participation by the United States in the Interparliamentary Union", 
approved June 28, 1935 (22 U.S.C. 276), is amended by striking out ^i°n inc^ea 
74 Stat. 460. 
Bureau ol' Inter-
parliamentary 
Union, appropria-
"$50,000" and "$23,100" and substituting "$53,550" and "$26,650", 
respectively. 
SEC. 403. The second sentence of subsection (b) of section 414 of the 
Mutual Security Act of 1954 (22 U.S.C. 1934), which relates to muni-
tions control, is amended by inserting immediately after "the United 
States and its allies" the following: "or for any State or local law 
enforcement agency". 
Approved November 14, 1967, 7:10 p.m. 
78 Stat. 1014. 
68 Stat. 848; 
72 Stat. 267. 
Public Law 90-138 
•' "" 
A N A C T 
November 15, 1967 
To amend Public La\y 87-7r»2 (76 Stat. 749) to eliminate the requirement of a 
[H. R. 509i] 
reservation of certain mineral rights to the United States. 
Be it enacted hy the Senate and House of Rej^resentatives 
of the 
United States of America in Congress assembled^ That the lirst section 
of the Act entitled "An Act to direct the Secretary of the Interior to 
convey certain public lands in the State of California to the city of 
Needles", approved October 5,1962 (Public Law 87-752; 76 Stat. 749), 
is amended by striking out "with a reservation to the United States of 
the coal, phosphate, sodium, potassium, oil, gas, oil shale, native 
asphalt, solid and semisolid bitumen and bituminous rock (including 
oil-impregnated rock or sands from which oil is recoverable only by 
special treatment after the deposit is mined or quarried), together with 
tlie right to prospect for, mine, and remove the same under applicable 
provisions of law". 
Needles, Calif. 
Mineral rights, 
conveyance. 
85-622 0-68—32