An Act to provide for assistance in the development of Latin America and in the reconstruction of Chile, and for other purposes
PL 86-735 (H.R.13021), enacted 09/08/1960

74 S T A T . ] 
PUBLIC LAW 86-735-SEPT. 8, 1960 
869 
Public Law 86-735 
AN A C T 
September 8. 1^60 
To provide for assistance in the development of Latin America and in tlie recon- 
[H. R. 1302 LJ 
struction of Chile, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, 
L a t i n America 
and Chile. 
Development and 
STATEMENT OF POLICY 
«!=f"!,*'"''"°" °^' 
SECTION 1. (a) It is the sense of the Congress that— 
(1) the historic, economic, political, and geographic relation-
ships among the American Republics are unique and of special 
significance and, as appropriate, should be so recognized in future 
legislation; 
(2) although governmental forms differ among the American 
Eepublics, the peoples of all the Americas are dedicated to the 
creation and maintenance of governments which will promote 
individual freedom; 
(3) the interests of the American Republics are so interrelated 
that sound social and economic progress in each is of importance 
to all and that lack of it in any American Republic may have 
serious repercussions in others; 
(4^ for the peoples of Latin America to continue to progress 
within the framework of our common heritage of democratic 
ideals, there is a compelling need for the achievement of social 
and economic advance adequate to meet the legitimate aspirations 
of the individual citizens of the countries of Latin America for 
a better way of life; 
(5) there is a need for a plan of hemispheric development, open 
to all American Republics which cooperate in such plan, based 
upon a strong production effort, the expansion of forei^ trade, 
the creation and maintenance of internal financial stability, the 
growth of free economic and social institutions, and the develop-
ment of economic cooperation, including all possible steps to 
establish and maintain equitable rates of exchange and to bring 
about the progressive elimination of trade barriers; 
(^6) mindful of the advantages which the United States has 
enjoyed through the existence of a large domestic market with 
no internal trade barriers, and believing that similar advantages 
can accrue to all countries, it is the hope of the people of the 
United States that all American Republics will jointly exert 
sustained common efforts which will speedily achieve that econ-
omic cooperation in the Western Hemisphere which is essential 
for lasting peace and prosperity; and 
(7) accordingly, it is declared to be the policy of the people 
of the United States to sustain and strengthen principles of indi-
vidual liberty, free institutions, private enterprise, and genuine 
independence in the Western Hemisphere through cooperation 
with all American Republics which participate in a joint devel-
opment program based upon self-help and mutual efforts. 
(b) In order to carry forward the above policy, the Congress 
hereby— 
(1) urges the President through our constitutional processes 
to develop cooperative programs on a bilateral or multilateral 
basis which will set forth specific plans of action designed to 
foster economic progress and improvements in the welfare and 
level of living of all the peoples of the American Republics on 
the basis of joint aid, mutual effort, and common sacrifice; 
870 
PUBLIC LAW 86-735-SEPT. 8, 1960 
[74 ST A T . 
(2) proposes the development of workable procedures to 
expand hemispheric trade and to moderate extreme price fluctu-
ations in commodities which are of exceptional importance in 
the economies of the American Republics, and encourages the 
development of regional economic cooperation among the Ameri-
can Republics; 
(3) supports the development of a more accurate and sympa-
thetic understanding among the peoples of the American Repub-
lics through a greater interchange of persons, ideas, techniques, 
and educational, scientific, and cultural achievements; 
(4^ supports the strengthening of free democratic trade unions 
to raise standards of living through improved management-labor 
relations; 
(5) favors the progressive development of common standards 
with respect to the rights and the responsibilities of private 
investment which flows across national boundaries within the 
Western Hemisphere; 
(6) supports the consolidation of the public institutions and 
agencies oi inter-American cooperation, insofar as feasible, with-
in the structure of the Organization of American States and the 
strengthening of the personnel resources and authority of the 
Organization in order that it may play a role of increasing 
importance in all aspects of hemispheric cooperation; and 
(7) declares that it is prepared to give careful and sympathetic 
consideration to programs which the President may develop for 
the purpose of promoting these policies. 
Appropriation. 
Restrictions. 
AUTHORIZATION 
SEC. 2. In order to carry out the purposes of section 1 of this Act, 
there is hereby authorized to be appropriated to the President not to 
exceed $500,000,000, which shall remain available until expended, and 
which the President may use, subject to such further legislative provi-
sions as may be enacted, in addition to other funds available for such 
purposes, on such terms and conditions as he may specify: Provided^ 
That none of the funds made available pursuant to this section shall 
be used to furnish assistance to any coimtry in Latin America being 
subjected to economic or diplomatic sanctions by the Organization of 
American States. The Secretary of State shall keep the Committee 
on Foreign Relations of the Senate and the Committee on Foreign 
Affairs of the House currently informed about plans and programs for 
the utilization of such funds. 
Appropriation. 
Mutual 
Security 
Act of 
19 54, a-
mendment. 
73 Stat. 255. 
22 u s e l7S3a. 
22 u s e 1931. 
SPECIAL AUTHORIZATION FOR CHILEAN RECONSTRUCTION 
SEC. 3. There is hereby authorized to be appropriated to the Presi-
dent not to exceed $100,000,000, which shall remain available until 
expended, for use, in addition to other funds available for such pur-
poses, in the reconstruction and rehabilitation of Chile on such terms 
and conditions as the President may specify. 
SEC. 4. Section 551 of the Mutual Security Act of 1954, as amended, 
which relates to limitation on the use of the President's special author-
ity, is amended by inserting before the period ": Provided^ however^ 
That the aforementioned authority may be used during the fiscal year 
1961 to finance activities which normally would be financed from 
appropriations made pursuant to sections 411(b) and 411(c) of this 
Act". 
Approved September 8, 1960.