An Act to amend the title of the Foreign Assistance Act of 1961 concerning the Overseas Private Investment Corporation to extend the authority for the Corporation, to authorize the Corporation to issue reinsurance, to terminate certain activities of the Corporation, and for other purposes.
PL 93-390 (S.2957), enacted 08/27/1974

88 STAT. ] 
PUBLIC LAW 93-390-AUG. 27, 1974 
763 
D.C. Code 35-
1914. 
SEC. 15. CONFLICT W I T H OTHER LAWS.—^AU laws and parts of laws 
of the District inconsistent with this Act are hereby superseded with 
respect to matters covered by this Act. 
SEC. 16. SEPARABILITY OF PROVISIONS.—If any provision of this Act 
D.C. code as-
or the application thereof to any person or circumstance is held ^ ^^' 
invalid, the invalidity shall not affect other provisions or applications 
of this Act which can be given effect without the invalid provision or 
application, and for this purpose the provisions of this Act are 
separable. 
SEC. 17. EFFECTIVE DATE.—This Act shall take effect thirty d:.ys 
^•'^' ^"'^^ ^s-
after the date of its enactment. 
^^° ^ "°*^' 
Approved August 24, 1974. 
Public Law 93-389 
AN ACT 
August 24, 1974 
To extend for three years the District of Columbia Medical and Dental 
[H. R. iiios] 
Manpower Act of 1970. 
District of Co-
lumbia Medical 
and Dental Man-
Be it enacted by the /Senate and House of Representatives 
of the 
United /States of America in Congress a^sembled^ That (a) section 
303 (c) of the District of Columbia Medical and Dental Manpower Act 
of 1970 (D.C. Code, sec. 31-922(c)) is amended to read as follows: P^wer Act o
f 
"(c) There are authorized to be appropriated such sums as may be ^^^°' extension. 
necessary for the fiscal years ending June 30,1975, and June 30,1976, 
to make grants under this section.". 
(b) Section 303(b) of such Act is amended by striking out "section 
772 of the Public Health Service Act (42 U.S.C. 295f-2)" and insert-
ing in lieu thereof "section 773 of the Public Health Service Act". 
^2 use 295f-3. 
Approved August 24, 1974. 
Public Law 93-390 
AN ACT 
August 27. 1974 
To amend the title of the Foreign Assistance Act of 1961 concerning the Overseas 
[s. 2957] 
Private Investment Corporation to extend the authority for the Corporation, 
to authorize the Corporation to issue reinsurance, to terminate certain activities 
of the Corporation, and for other purposes. 
Overseas Pri-
vate Investment 
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 "Overseas Private Investment Corporation Amendments corporation 
Act of 1974". 
Amendments Act 
SEC. 2. Title IV of chapter 2 of part I of the Foreign Assistance Act ° 22^us'c 2191 
of 1961 (22 U.S.C. 2191-2200a) is amended as follows: 
n°te. 
(1) In section 231— 
22 use 2191. 
(A) in the first sentence, strike out "progress" and insert in lieu 
thereof "development"; 
764 
PUBLIC LAW 93-390-AUG. 27, 1974 
[88 STAT. 
(B) strike out clause (a) and insert in lieu thereof the follow-
"(a) to conduct financing, insurance, and reinsurance opera-
tions on a self-sustaining basis, taking into account in its financing 
operations the economic and financial soundness of projects;"; 
(C) in clause (d) strike out ", when appropriate,", and insert 
after "efforts to share its insurance" the following: "and reinsur-
ance" ; 
(D) strike out clause (e) and insert in lieu thereof the follow-
"(e) to give preferential consideration in its investment insur-
ance, financing, and reinsurance activities (to the maximum extent 
practicable consistent with the Corporation's purposes) to invest-
ment projects involving businesses of not more than $2,500,000 
net worth or with not more than $7,500,000 in total assets;"; 
(E) in clause (i), after "balance-of-payments" insert "and 
employment"; 
(F) in clause (j), strike out "and" after the semicolon; 
(G) at the end of clause (k), strike out the period and insert 
in lieu thereof a semicolon; and 
(H) add at the end thereof the following new clauses: 
"(1) to the maximum extent practicable, to give preferential 
consideration in the Corporation's investment insurance, financ-
ing, and reinsurance activities to investment projects in the less 
developed friendly countries which have per capita incomes of 
$450 or less in 1973 United States dollars; and 
"(m) (1) to decline to issue any contract of insurance or rein-
surance, or any guaranty, or to enter into any agreement to pro-
vide financing for an eligible investor's proposed investment if the 
Corporation determines that such investment is likely to cause 
such investor (or the sponsor of an investment project in which 
such investor is involved) significantly to reduce the number of 
his employees in the United States because he is replacing his 
United States production with production from such investment 
which involves substantially the same product for substantially 
the same market as his United States production; and (2) to 
monitor conformance with the representations of the investor on 
which the Corporation relied in making the determination 
required by clause (1)." 
(2) Section 234 is amended— 
(A) by striking out the section caption and inserting in lieu 
thereof the following: "INVESTMENT INSURANCE AND OTHER 
PROGRAMS"; 
(B) by striking out subsection (a) (2) and inserting in lieu 
thereof the following: 
"(2) Kecognizing that major private investments in less developed 
friendly countries or areas are often made by enterprises in which 
there is multinational participation, including significant United 
States private participation, the Corporation may make arrangements 
with foreign governments (including agencies, instrumentalities, or 
22 use 2194. 
88 STAT.] 
PUBLIC LAW 93-390-AUG. 27, 1974 
765 
political subdivisions thereof) or with multilateral organizations and 
institutions for sharing liabilities assumed under investment insurance 
for such investments and may in connection therewith issue insurance 
to investors not otherwise eligible hereunder, except that liabilities 
assumed by the Corporation under the authority of this subsection 
shall be consistent with the purposes of this title and that the maxi-
mum share of liabilities so assumed shall not exceed the proportionate 
participation by eligible investors in the total project financing, and 
that the maximum share of liabilities so assumed under paragraph 
(1) (A) and (B) or paragraph (1) (C) shall not exceed the Corpora-
tion's proportional share for such liabilities as specified in paragraph 
(4) or (5) of this subsection." 
(C) by adding at the end of subsection (a) thereof the follow-
ing new paragraphs: 
"(4) (A) It is the intention of Congress that the Corporation 
achieve participation by private insurance companies, multilateral 
organizations, or others in liabilities incurred in respect of the risk? 
referred to in paragraph (1) (A) and (B) of this subsection under 
contracts issued on and after January 1,1975, of at least 25 per centum, 
and, under contracts issued on and after January 1, 1978, of at least 
50 per centum. If for good reason it is not possible for the Corporation 
to achieve either such percentage of participation, the Corporation 
shall report in detail to the Committee on Foreign Relations of the 
Senate and the Committee on Foreign Affairs of the House of Repre-
sentatives the reasons for its inability to achieve either such percentage 
of participation, and the date by which such percentage is to be 
achieved. 
"(B) The Corporation shall not participate as insurer under con-
tracts of insurance issued after December 31, 1979, in respect of the 
risks referred to in paragraph (1) (A) and (B) of this subsection 
unless Congress by law modifies this paragraph. 
"(5) (A) It is the intention of Congress that the Corporation 
achieve participation by private insurance companies, multilateral 
organizations, or others in liabilities incurred in respect of the risks 
referred to in paragraph (1) (C) of this subsection under contracts 
issued on and after January 1, 1976, of at least 121^ per centum, and, 
under contracts issued on and after January 1, 1979, of at least 40 
per centum. If for good reason it is not possible for the Corporation 
to achieve either such percentage of participation, the Corporation 
shall report in detail to the Committee on Foreign Relations of the 
Senate and the Committee on Foreign Affairs of the House of Repre-
sentatives the reasons for its inability to achieve either such percentage 
of participation and the date by which such percentage is to be 
achieved. 
"(B) The Corporation shall not participate as insurer under con-
tracts of insurance issued after December 31, 1980, in respect of the 
risks referred to in paragraph (1) (C) of this subsection unless 
Congress by law modifies this paragraph. 
"(6) Notwithstanding any of the percentages of participation 
under paragraphs (4) (A) and (5) (A) of this subsection, the Corpora-
tion may agree to assume liability as insurer for any contract of insur-
ance, or share thereof, that a private insurance company, multilateral 
Report to con-
gressional com-
mittees. 
Report to con-
gressional com-
mittees. 
766 
PUBLIC LAW 93-390-AUG. 27, 1974 
[88 STAT. 
organization, or any other person has issued in respect of the risks 
referred to in paragraph (1) of this subsection, and neither the execu-
tion of any such agreement to assume liability nor its performance by 
the Corporation shall be considered as participation by the Corpora-
tion in any such contract for purposes of such percentages of partici-
pation. On and after January 1, 1981, the Corporation shall not enter 
into any such agreement to assume liability. 
"(7) On and after December 31, 1979, the Corporation shall not 
manage direct insurance issued after such date in respect of risks 
referred to in paragraph (1)(A) or (B) of this subsection unless 
Congress by law modifies this sentence. On and after December 31, 
1980, the Corporation shall not manage direct insurance issued after 
such date in respect of risks referred to in paragraph (1) (C) of this 
subsection unless Congress by law modifies this sentence. It shall 
thereafter act solely as a reinsurer except to the extent necessary to 
manage its outstanding insurance and reinsurance contracts and any 
contracts of insurance the Corporation assumes pursuant to paragraph 
(6)."; and 
(D) by adding at the end thereof the following new subsection: 
"(f) OTHER INSURANCE FUNCTIONS.—(1) To make and carry out 
contracts of insurance or reinsurance, or agreements to associate or 
share risks, with insurance companies, financial institutions, any other 
persons, or groups thereof, and employing the same, where appropriate, 
as its agent, or acting as their agent, in the issuance and servicing of 
insurance, the adjustment of claims, the exercise of subrogation rights, 
the ceding and accepting of reinsurance, and in any other matter inci-
dent to an insurance business. 
" (2) To enter into pooling or other risk-sharing arrangements with 
other national or multinational insurance or financing agencies or 
groups of such agencies. 
"(3) To hold an ownership interest in any association or other 
entity established for the purposes of sharing risks under investment 
insurance. 
"(4) To issue, upon such terms and conditions as it may determine, 
reinsurance of liabilities assumed by other insurers or groups thereof 
in respect of risks referred to in subsection (a)(1). 
The authority granted by paragraph (3) may be exercised notwith-
standing the prohibition under subsection (c) against the Corporation 
purchasing or investing in any stock in any other corporation. The 
amount of reinsurance of liabilities under this title which the Corpo-
ration may issue shall not exceed $600,000,000 in any one year, and the 
amount of such reinsurance shall not in the aggregate exceed at any 
one time an amount equal to the amount authorized for the 
maximum contingent liability outstanding at any one time under 
section 235(a)(1). All reinsurance issued by the Corporation under 
this subsection shall require that the reinsured party retain for his own 
account specified portions of liability, whether first loss or otherwise, 
and the Corporation shall endeavor to increase such specified portions 
to the maximum extent possible." 
(3) In section 235— 
(A) strike out "1974" in subsection (a) (4) and insert in lieu 
thereof "1977"; 
(B) in subsection (d), strike out "insurance issued under sec-
tion 234(a)" and insert in lieu thereof the following: "insurance 
or reinsurance issued under section 234" • and 
(C) strike out subsection (f) and insert in lieu thereof the 
following: 
22 u s e 2195. 
Ante, p. 764. 
88 STAT. ] 
PUBLIC LAW 93-390-AUG. 27, 1974 
767 
"(f) There are authorized to be appropriated to the Corporation, 
Appropriation. 
to remain available until expended, such amounts as may be necessary 
from time to time to replenish or increase the insurance and guaranty 
fund, to discharge the liabilities under insurance, reinsurance, or guar-
anties issued by the Corporation or issued under predecessor guaranty 
authority, or to discharge obligations of the Corporation purchased by 
the Secretary of the Treasury pursuant to this subsection. However, no 
appropriations shall be made to augment the Insurance Reserve until 
the amount of funds in the Insurance Reserve is less than $25,000,000. 
Any appropriations to augment the Insurance Reserve shall then only 
be made either pursuant to specific authorization enacted after the date 
of enactment of the Overeeas Private Investment Corporation Amend-
ments Act of 1974, or to satisfy the full faith and credit provision of 
section 287 (c). In order to discharge liabilities under investment insur- infra. 
ance or reinsurance, the Corporation is authorized to issue from time 
to time for purchase by the Secretary of the Treasury its notes, deben-
tures, bonds, or other obligations; but the aggregate amount of such 
obligations outstanding at any one time shall not exceed $100,000,000. 
Any such obligation shall be repaid to the Treasury within one year 
after the date of issue of such obligation. Any such obligation shall 
bear interest at a rate determined by the Secretary of the Treasury, 
taking into consideration the current average market yield on out-
standing marketable obligations of the United States of comparable 
maturities during the month preceding the issuance of any oblip-ation 
authorized by this subsection. The Secretary of the Treasury shall pur-
chase any obligation of the Corporation issued under this subsection, 
and for such purchase he may use as a public debt transaction the pro-
ceeds of the sale of any securities issued under the Second Liberty 
Bond Act after the date of enactment of the Overseas Private Invest- 
^i use 774. 
ment Corporation Amendments Act of 1974. The purpose for which 
securities may be issued under such Bond Act shall include any such 
purchase." 
(4) In section 237— 
^ 
_ 
22 use 2197. 
(A) in subsection (a), strike out "and guaranties" and insert 
in lieu thereof a comma and "guaranties, and reinsurance"; and 
strike out "or guaranties" and insert in lieu thereof a comma and 
"guaranties, or reinsurance"; 
(B) in subsection (b), strike out "or guaranty" in both places 
and insert in lieu thereof in both places the following:", guaranty 
or reinsurance" ; 
(C) in subsection (c), insert ", reinsurance," after "insurance" 
in both places it occurs: 
(D) strike out subsection (d) and insert in lieu thereof the 
following: 
" (d) Fees shall be charged for insurance, guaranty, and reinsurance 
coverage in amounts to be determined by the Corporation. In the event 
fees charged for investment insurance, guaranties, or reinsurance are 
reduced, fees to be paid under existing contracts for the same type of 
insurance, guaranties, or reinsurance and for similar guaranties issued 
under predecessor guaranty authority may be reduced."; 
(E) in subsection (e), strike out "or guaranty" and insert in 
lieu thereof a comma and "guaranty, or reinsurance"; 
(F) in subsection (f), insert ", reinsurance," after "insurance" 
in both places it occurs; 
(G) add at the end of subsection (f) the following: "Notwith-
standing the preceding sentence, the Corporation shall limit the 
amount of direxjt insurance and reinsurance issued by it under sec-
tion 234 so that risk of loss as to at least 10 per centum of the total 
^"'^' P- '^^'^• 
investment of the insured and its affiliates in the project is borne 
22 u s e 2199. 
22 u s e 2200. 
768 
PUBLIC LAW 93-391-AUG. 28, 1974 
[88 STAT. 
by the insured and such affiliates. The preceding sentence shall not 
apply to the extent not permitted by State law."; 
(H) in subsection (g), after "guaranty", insert a comma and 
"insurance, or reinsurance"; 
(I) in subsection (h), strike out "or guaranties" and insert in 
lieu thereof a comma and "guaranties, or reinsurance"; 
(J) in subsection (i), after "insurance", insert ", reinsurance,"; 
and 
(K) strike out subsection (k) and insert in lieu thereof the 
following: 
"(k) In making a determination to issue insurance, guaranties, or 
reinsurance under this title, the Corporation shall consider the possible 
adverse effect of the dollar investment under such insurance, guaranty, 
or reinsurance upon the balance of payments of the United States," 
(5) In section 239—-
(A) in subsection (b), add the following new sentences at the 
end thereof: "On December 31, 1979, the Corporation shall cease 
II ^^^ nil' 
operating the programs authorized by section 234 (b) through 
""""" 
^g^ ^^^ section 240. Thereafter, the President is authorized to 
transfer such programs, and all obligations, assets, and related 
rights and responsibilities arising out of, or related to, such pro-
grams to other agencies of the United States. Upon any such 
transfer, these programs shall be limited to countries with per 
capita income of $450 or less in 1973 dollars."; and 
(B) add at the end thereof the following: 
"(h) Within six months after the date of enactment of this sub-
section the Corporation shall develop and implement specific criteria 
intended to minimize the potential environmental implications of 
projects undertaken by investors abroad in accordance with any of the 
programs authorized by this title." 
(6) In section 240(h), strike out "1974" and insert in lieu thereof 
"1977". 
(7) In section 240A, strike out subsection (b) and insert in lieu 
thereof the following: 
"(b) Not later than January 1, 1976, the Corporation shall submit 
to the Congress an analysis of the possibilities of transferring all of its 
activities to private insurance companies, multilateral organizations 
and institutions, or other entities." 
Approved August 27, 1974. 
Public Law 93-391 
August 28, 1974 
^^ 
^^'^ 
[H. R. 15405] 
Making appropriations for the Department of Transportation and related 
agencies for the fiscal year ending June 30, 1975, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
Department^of ^^ jjry^llQ^ States of America in Congress assembled, That the following 
Relat^dTgencie" sums are appropriated, out of any money in the Treasury not other-
Appropriation 
^jg^ appropriated, for the Department of Transportation and related 
Act, 1975. 
agencies for the fiscal year ending June 30, 1975, and for other 
purposes, namely: 
22 u s e 2200. 
22 u s e 2200a. 
Report to eon-
gress.