AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954.

SEC. 1512. AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954. The Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) is amended to read as follows: “SECTION 1. SHORT TITLE. “This Act may be cited as the ‘Agricultural Trade Development and Assistance Act of 1954’. “SEC. 2. UNITED STATES POLICY. “It is the policy of the United States to use its abundant agricultural productivity to promote the foreign policy of the United States by enhancing the food security of the developing world through the use of agricultural commodities and local currencies accruing under this Act to— “(1) combat world hunger and malnutrition and their causes; “(2) promote broad-based, equitable, and sustainable development, including agricultural development; “(3) expand international trade; “(4) develop and expand export markets for United States agricultural commodities; and “(5) foster and encourage the development of private enterprise and democratic participation in developing countries. “SEC. 3. GLOBAL FOOD AID NEEDS. “In view of the principal findings of the National Research Council of the National Academy of Sciences that doubling food aid above 1990 levels of about 10,000,000 metric tons per year would be necessary to meet projected global food needs throughout the decade of the nineties, it is the sense of Congress that the President should— “(1) increase the contributions of food aid by the United States, and encourage other donor countries to increase their contributions toward meeting new food aid requirements; and “(2) encourage other advanced nations to make increased food aid contributions to combat world hunger and malnutrition, particularly through the expansion of international food and agricultural assistance programs. “TITLE I— TRADE AND DEVELOPMENT ASSISTANCE “SEC. 101. TRADE AND DEVELOPMENT ASSISTANCE. “(a) In General— The President shall establish a program under this title to provide for the sale of agricultural commodities to developing countries for dollars on credit terms, or for local cur-104 STAT. 3634rencies (including for local currencies on credit terms) for use under this title. Such program shall be implemented by the Secretary. “(b) General Authority.— To carry out the policies and accomplish the objectives described in section 2, the Secretary may negotiate and execute agreements with developing countries to finance the sale and exportation of agricultural commodities to such countries. “SEC. 102. ELIGIBLE COUNTRIES. “(a) In General.— A country shall be considered to be a developing country and eligible for assistance under this title if such country has a shortage of foreign exchange earnings and has difficulty meeting all of its food needs through commercial channels, as determined by the Secretary. “(b) Priority.— In determining whether and to what extent agricultural commodities will be made available to developing countries under this title, the Secretary shall give priority to developing countries that— “(1) demonstrate the greatest need for food; “(2) are undertaking measures for economic development purposes to improve food security and agricultural development, alleviate poverty, and promote broad-based equitable and sustainable development; and “(3) have the demonstrated potential to become commercial markets for competitively priced United States agricultural commodities. “SEC. 103. TERMS AND CONDITIONS OF SALES. “(a) Payment.— “(1) Dollars.— Except as provided in paragraph (2), agreements under this title shall require that payment for agricultural commodities be made in dollars. “(2) Local currencies.— “(A) In general.— The Secretary may permit a recipient country to make payment under an agreement under this title in the local currency of such country in order to use the proceeds from such payments to carry out activities under section 104. “(B) Rates of exchange.— Payments in local currency shall be at rates of exchange that are no less favorable than the highest exchange rate legally obtainable in the country and that are no less favorable than the highest exchange rate obtainable by any other country. “(b) Interest.— Such agreements shall provide that interest accrue on the payment deferred under such agreement at a concessional rate as determined appropriate by the Secretary. “(c) Duration.— Payments required under such agreements may be made in reasonable annual amounts over the period (not less than 10 nor more than 30 years from the date of the last delivery of commodities in each year under such agreement) specified in the agreement. “(d) Deferral of Payments.— The Secretary may defer the date on which the recipient country is required to begin making payment, under such agreements, for a period of not in excess of 7 years after the date of the last delivery of commodities in each year under the agreement, and interest shall be computed from the date of such last delivery. 104 STAT. 3635 “(e) Delivery of Commodities.— Delivery of the commodities shall be made in accordance with the terms of the agreement. “SEC. 104. USE OF LOCAL CURRENCY PAYMENT. “(a) In General.— Agreements under this title may provide that the Secretary shall use payments made in local currencies by the recipient country in accordance with this section. “(b) Special Account.— Foreign currencies received by the Secretary under this title shall be deposited in a separate account, that may be interest-bearing, to the credit of the United States and such currencies and interest thereon shall be used as provided for in this section. “(c) Activities.— The proceeds from the payments referred to in subsection (a) may be used in the recipient country for the following: “(1) Trade development.— To carry out programs to help develop markets for United States agricultural commodities on a mutually beneficial basis in the recipient country. “(2) Agricultural development.— To support— “(A) increased agricultural production, including availability of agricultural inputs, with emphasis on small farms, processing of agricultural commodities, forestry management, and land and water management; “(B) credit policies for private-sector agriculture development; “(C) establishment and expansion of institutions for basic and applied agricultural research and the use of such research through development of extension services; and “(D) programs to control rodents, insects, weeds, and other animal or plant pests. “(3) Agricultural business development loans.— To make loans to United States business entities (including cooperatives) and branches, subsidiaries, or affiliates of such entities for agricultural business development and agricultural trade expansion in such recipient countries. “(4) Agricultural facilities loans.— To make loans to domestic or foreign entities (including cooperatives) for the establishment of facilities for aiding in the utilization or distribution of, or otherwise increasing the consumption of and markets for, United States agricultural products. “(5) Trade promotion.— To promote agricultural trade development, under procedures established by the Secretary, by making loans or through other activities (including trade fairs) that the Secretary determines to be appropriate. “(6) Private sector agricultural trade development.— To conduct private sector agricultural trade development activities in the recipient country, as determined appropriate by the Secretary. “(7) Research.— To conduct research in agriculture, forestry, and aquaculture, including collaborative research which is mutually beneficial to the United States and the recipient country. “(8) United States obligations.— To make payments of United States obligations (including obligations entered into pursuant to other laws). “(d) Fiscal Requirements Regarding Use of Local Currencies.— 104 STAT. 3636 “(1) Exemption.— Section 1306 of title 31, United States Code, shall not apply to local currencies used by the President under paragraphs (1) through (7) of subsection (c). “(2) Use of currencies by other agencies.— Any department or agency of the Federal Government other than the Department of Agriculture using any such local currencies for a purpose for which funds have been appropriated shall reimburse the Commodity Credit Corporation in an amount equivalent to the dollar value of the currencies used. “SEC. 105. VALUE-ADDED FOODS. “(a) Policy.— Congress declares it to be the policy of the United States to assist developing countries that are or have been recipients of high protein, blended, or fortified foods under title II to continue to combat hunger and malnutrition among the lower income segments of the population of such countries, especially children, through the continued provision of such foods under this title. “(b) Partial Waiver of Repayment.— In implementing the policy declared in subsection (a), the Secretary, in entering into agreements for the sale of high protein, blended, or fortified foods under this title with countries that— “(1) provide assurances that the benefits of any waiver granted under this subsection will be passed on to the individual recipients of such foods; and “(2) have a reasonable potential for transferring benefits of such waiver to commercial purchasers of such foods; may make provisions for a waiver of payment of not to exceed an amount equal to the value of that part of the product that is attributable to the costs of processing, enrichment, or fortification of such product. “(c) Minimize Impact.— In implementing this section, the Secretary shall, to the extent practicable, minimize the impact of this section on other commercial and concessional sales of whole grains. “TITLE II— EMERGENCY AND PRIVATE ASSISTANCE PROGRAMS “SEC. 201. GENERAL AUTHORITY. “The President shall establish a program under this title to provide agricultural commodities to foreign countries on behalf of the people of the United States to— “(1) address famine or other urgent or extraordinary relief requirements; “(2) combat malnutrition, especially in children and mothers; “(3) carry out activities that attempt to alleviate the causes of hunger, mortality and morbidity; “(4) promote economic and community development; “(5) promote sound environmental practices; and “(6) carry out feeding programs. Such program shall be implemented by the Administrator. “SEC. 202. PROVISION OF AGRICULTURAL COMMODITIES. “(a) Emergency Assistance.— Notwithstanding any other provision of law, the Administrator may provide agricultural commodities to meet emergency food needs under this title through104 STAT. 3637 governments and public or private agencies, including intergovernmental organizations such as the World Food Program and other multilateral organizations, in such manner and on such terms and conditions as the Administrator determines appropriate to respond to the emergency. “(b) Non-Emergency Assistance.— The Administrator may provide agricultural commodities for non-emergency assistance under this title through eligible organizations (as described in subsection (d)) that have entered into an agreement with the Administrator to use such commodities in accordance with this title. “(c) Uses of Assistance.— Agricultural commodities provided under this title may be made available for direct distribution, sale, barter, or other appropriate disposition. “(d) Eligible Organizations.— To be eligible to receive assistance under subsection (b) an organization shall be— “(1) a private voluntary organization or cooperative that is, to the extent practicable, registered with the Administrator; or “(2) an intergovernmental organization, such as the World Food Program. “(e) Support for Private Voluntary Organizations and Cooperatives.— “(1) In general.— Of the funds made available in each fiscal year under this title to private voluntary organizations and cooperatives, not less than $10,000,000 and not more than $13,500,000 shall be made available by the Administrator to assist such organizations and cooperatives in— “(A) establishing new programs under this title; and “(B) meeting specific administrative, management, personnel and internal transportation and distribution costs for carrying out programs in foreign countries under this title. “(2) Request for funds.— In order to receive funds made available under paragraph (1), a private voluntary organization or cooperative must submit a request for such funds (which must be approved by the Administrator) when submitting a proposal to the Administrator for an agreement under this title. Such request for funds shall include a specific explanation of— “(A) the program costs to be offset by such funds; “(B) the reason why such funds are needed in carrying out the particular assistance program; and “(C) the degree to which such funds will improve the provision of food assistance to foreign countries (particularly those in sub-Saharan Africa suffering from acute, long-term food shortages). “(3) Assistance with respect to sale.— Upon the request of a private voluntary organization or cooperative, the Administrator may provide assistance to that organization or cooperative with respect to the sale of agricultural commodities made available to it under this title. “(f) Effective Use of Commodities.— To ensure that agricultural commodities made available under this title are used effectively and in the areas of greatest need, organizations or cooperatives through which such commodities are distributed shall— “(1) to the extent feasible, work with indigenous institutions and employ indigenous workers; “(2) assess and take into account nutritional and other needs of beneficiary groups; 104 STAT. 3638 “(3) help such beneficiary groups design and carry out mutually acceptable projects; “(4) recommend to the Administrator methods of making assistance available that are the most appropriate for each local setting; “(5) supervise the distribution of commodities provided and the implementation of programs carried out under this title; and “(6) periodically evaluate the effectiveness of projects undertaken under this title. “(g) Labeling.— Commodities provided under this title shall, to the extent practicable, be clearly identified with appropriate markings on the package or container of such commodity in the language of the locality in which such commodities are distributed, as being furnished by the people of the United States of America. “SEC. 203. GENERATION AND USE OF FOREIGN CURRENCIES BY PRIVATE VOLUNTARY ORGANIZATIONS AND COOPERATIVES. “(a) Local Sale and Barter of Commodities.— An agreement entered into between the Administrator and a private voluntary organization or cooperative to provide food assistance through such organization or cooperative under this title may provide for the sale or barter in the recipient country of the commodities to be provided under such agreement. “(b) Minimum Level of Local Sales.— In carrying out agreements of the type referred to in subsection (a), the Administrator shall permit private voluntary organizations and cooperatives to sell, in recipient countries, an amount of commodities equal to not less than 10 percent of the aggregate amounts of all commodities distributed under non-emergency programs under this title for each fiscal year, to generate foreign currency proceeds to be used as provided in this section. “(c) Description of Intended Uses.— A private voluntary organization or cooperative submitting a proposal to enter into a non-emergency food assistance agreement under this title shall include in such proposal a description of the intended uses of any foreign currency proceeds that may be generated through the sale, in the recipient country, of any commodities provided under an agreement entered into between the Administrator and the organization or cooperative. “(d) Use.— Foreign currencies generated from any partial or full sale or barter of commodities by a private voluntary organization or cooperative under a non-emergency food assistance agreement under this title may— “(1) be used to transport, store, distribute, and otherwise enhance the effectiveness of the use of agricultural commodities provided under this title; “(2) be used to implement income generating, community development, health, nutrition, cooperative development, agricultural, and other developmental activities within the recipient country; or “(3) be invested and any interest earned on such investment may be used for the purposes for which the assistance was provided to that organization, without further appropriation by Congress. 104 STAT. 3639 “SEC. 204. LEVELS OF ASSISTANCE. “(a) Minimum Levels.— “(1) Minimum assistance.— Except as provided in paragraph (3), the Administrator shall make agricultural commodities available for food distribution under this title in an amount that— “(A) for fiscal year 1991, is not less than 1,925,000 metric tons; “(B) for fiscal year 1992, is not less than 1,950,000 metric tons; “(C) for fiscal year 1993, is not less than 1,975,000 metric tons; “(D) for fiscal year 1994, is not less than 2,000,000 metric tons; and “(E) for fiscal year 1995, is not less than 2,025,000 metric tons. “(2) Minimum non-emergency assistance.— Of the amounts specified in paragraph (1), and except as provided in paragraph (3), the Administrator shall make agricultural commodities available for non-emergency food distribution through eligible organizations under section 202 in an amount that— “(A) for fiscal year 1991, is not less than 1,450,000 metric tons; “(B) for fiscal year 1992, is not less than 1,475,000 metric tons; “(C) for fiscal year 1993, is not less than 1,500,000 metric tons; “(D) for fiscal year 1994, is not less than 1,525,000 metric tons; and “(E) for fiscal year 1995, is not less than 1,550,000 metric tons. “(3) Exception.— The Administrator may waive the requirements of paragraphs (1) and (2) for any fiscal year if the Administrator determines that such quantities of commodities cannot be used effectively to carry out this title or in order to meet an emergency. In making a waiver under this paragraph, the Administrator shall prepare and submit to the Committee on Foreign Affairs and Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report containing the reasons for the waiver. “(b) Use of Value-Added Commodities.— “(1) Minimum levels.— Except as provided in paragraph (2), in making agricultural commodities available under this title, the Administrator shall ensure that not less than 75 percent of the quantity of such commodities required to be distributed during each fiscal year under subsection (a)(2) be in the form of processed, fortified, or bagged commodities. “(2) Waiver of minimum.— The Administrator may waive the requirement of paragraph (1) for any fiscal year in which the Administrator determines that the requirements of the programs established under this title will not be best served by the enforcement of such requirement under such paragraph. “SEC. 205. FOOD AID CONSULTATIVE GROUP. “(a) Establishment.— There is established a Food Aid Consultative Group (hereinafter referred to in this section as the ‘Group’)104 STAT. 3640 that shall meet regularly to review and address issues concerning the effectiveness of the regulations and procedures that govern food assistance programs established and implemented under this title, and the implementation of other provisions of this title that may involve private voluntary organizations, cooperatives and indigenous non-governmental organizations. “(b) Membership.— The Group shall be composed of— “(1) the Administrator; “(2) the Under Secretary for International Affairs and Commodity Programs; “(3) the Inspector General of the Agency for International Development; “(4) a representative of each private voluntary organization and cooperative participating in a program under this title, or receiving planning assistance funds from the Agency to establish programs under this title; and “(5) representatives from African, Asian and Latin American indigenous non-governmental organizations determined appropriate by the Administrator. “(c) Chairperson.— The Administrator shall be the chairperson of the Group. “(d) Consultations.— In preparing regulations, handbooks, or guidelines implementing this title, or significant revisions thereto, the Administrator shall provide such proposals to the Group for review and comment. The Administrator shall consult and, when appropriate, meet with the Group regarding such proposed regulations, handbooks, guidelines, or revisions thereto prior to the issuance of such. “(e) Advisory Committee Act.— The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Group. “(f) Termination.— The Group shall terminate on December 31, 1995. “SEC. 206. MAXIMUM LEVEL OF EXPENDITURES. “(a) Maximum Expenditures.— Except as provided in subsection (b), programs of assistance shall not be undertaken under this title during any fiscal year if such programs necessitate an appropriation of more than $1,000,000,000 to reimburse the Commodity Credit Corporation for all costs incurred in connection with such programs (including the Corporation’s investment in commodities made available). “(b) Waiver by President.— The President may waive the limitation contained in subsection (a) if the President determines that such waiver is necessary to undertake programs of assistance to meet urgent humanitarian or emergency needs. “SEC. 207. ADMINISTRATION. “(a) Proposals.— “(1) Time for decision.— Not later than 45 days after the receipt by the Administrator of a proposal submitted— “(A) by a private voluntary organization or cooperative, with the concurrence of the appropriate United States field mission, for commodities; or “(B) by a United States field mission to make commodities available to a private voluntary organization or cooperative;104 STAT. 3641 under this title, the Administrator shall make a decision concerning such proposal. “(2) Denial.— If a proposal under paragraph (1) is denied, the response shall specify the reasons for denial and the conditions that must be met for the approval of such proposal. “(b) Notice and Comment.— Not later than 30 days prior to the issuance of a final guideline to carry out this title, the Administrator shall— “(1) provide notice of the existence of a proposed guideline, and that such guideline is available for review and comment, to private voluntary organizations and cooperatives that participate in programs under this title, and to other interested persons; “(2) make the proposed guideline available, on request, to the organizations, cooperatives, and other persons referred to in paragraph (1); and “(3) take any comments received into consideration prior to the issuance of the final guideline. “(c) Regulations.— “(1) In general.— The Administrator shall promptly issue all necessary regulations and make revisions to agency guidelines with respect to changes in the operation or implementation of the program established under this title. “(2) Requirements.— The Administrator shall develop regulations with the intent of— “(A) simplifying procedures for participation in the programs established under this title; “(B) reducing paperwork requirements under such programs; “(C) establishing reasonable and realistic accountability standards to be applied to eligible organizations participating in the programs established under this title, taking into consideration the problems associated with carrying out programs in developing countries; and “(D) providing flexibility for carrying out programs under this title. “(3) Handbooks.— Handbooks developed by the Administrator to assist in carrying out the program under this title shall be designed to foster the development of programs under this title by eligible organizations. “(d) Deadline for Submission of Commodity Orders.— Not later than 15 days after receipt from a United States field mission of a call forward for agricultural commodities for programs that meet the requirements of this title, the order for the purchase or the supply, from inventory, of such commodities or products shall be transmitted to the Commodity Credit Corporation. “TITLE III— FOOD FOR DEVELOPMENT “SEC. 301. BILATERAL GRANT PROGRAM. “(a) In General.— The President shall establish a program under which agricultural commodities are donated in accordance with this title to least developed countries. The revenue generated by the sale of such commodities in the recipient country may be utilized for economic development activities. Such program shall be implemented by the Administrator. 104 STAT. 3642 “(b) General Authority.— To carry out the policies and accomplish the objectives described in section 2, the Administrator may negotiate and execute agreements with least developed countries to provide commodities to such countries on a grant basis. “SEC. 302. ELIGIBLE COUNTRIES. “(a) Least Developed Countries.— A country shall be considered to be a least developed country and eligible for the donation of agricultural commodities under this title if— “(1) such country meets the poverty criteria established by the International Bank for Reconstruction and Development for Civil Works Preference for providing financial assistance; or “(2) such country is a food deficit country and is characterized by high levels of malnutrition among significant numbers of its population, as determined by the Administrator under subsection (b). “(b) Indicators of Food Deficit Countries.— To make a finding under subsection (a)(2) that a country is a food deficit country and is characterized by high levels of malnutrition, the Administrator must determine that the country meets all of the following indicators of national food deficit and malnutrition: “(1) Calorie consumption.— That the daily per capita calorie consumption of the country is less than 2300 calories. “(2) Food security requirements.— That the country cannot meet its food security requirements through domestic production or imports due to a shortage of foreign exchange earnings. “(3) Child mortality rate.— That the mortality rate of children under 5 years of age in the country is in excess of 100 per 1000 births. “(c) Priority.— In determining whether and to what extent agricultural commodities shall be made available to least developed countries under this title, the Administrator shall give priority to countries that— “(1) demonstrate the greatest need for food; “(2) demonstrate the capacity to use food assistance effectively; “(3) have demonstrated a commitment to policies to promote food security, including policies to reduce measurably hunger and malnutrition through efforts such as establishing and institutionalizing supplemental nutrition programs targeted to reach those who are nutritionally at risk; and “(4) have a long-term plan for broad-based, equitable, and sustainable development. “SEC. 303. GRANT PROGRAMS. “To carry out the policies and accomplish the objectives described in section 2, the Administrator may negotiate and execute agreements with least developed countries to provide commodities to such countries on a grant basis either through the Commodity Credit Corporation or through private trade channels. “SEC. 304. DIRECT USES OR SALES OF COMMODITIES. “Agricultural commodities provided to a least developed country under this section— “(1) may be used in such country for— “(A) direct feeding programs, including programs that include activities that deal directly with the special health104 STAT. 3643 needs of children and mothers consistent with section 104(c)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 2151b(c)(2)), relating to the Child Survival Fund; or “(B) the development of emergency food reserves; or “(2) may be sold in such country by the government of the country or the Administrator (or their designees) as provided in the agreement, and the proceeds of such sale used in accordance with this title. “SEC. 305. LOCAL CURRENCY ACCOUNTS. “(a) Retention of Proceeds.— To the extent determined to be appropriate by the Administrator, revenues generated from the sale, under section 304(2), of agricultural commodities provided under this title shall be deposited into a separate account (that may be interest bearing) in the recipient country to be disbursed for the benefit of such country in accordance with local currency agreements entered into between the recipient country and the Administrator. The Administrator may determine not to deposit such revenues in a separate account if— “(1) local currencies are to be programmed for specific economic development purposes listed in section 306(a); and “(2) the recipient country programs an equivalent amount of money for such purposes as specified in an agreement entered into by the Administrator and the recipient country. “(b) Ownership and Programming of Accounts.— The proceeds of sales pursuant to section 304(2) shall be the property of the recipient country or the United States, as specified in the applicable agreement. Such proceeds shall be utilized for the benefit of the recipient country, shall be jointly programmed by the Administrator and the government of the recipient country, and shall be disbursed for the benefit of such country in accordance with local currency agreements between the Administrator and that government. “(c) Overall Development Strategy.— The Administrator shall consider the local currency proceeds as an integral part of the overall development strategy of the Agency for International Development and the recipient country. “SEC. 306. USE OF LOCAL CURRENCY PROCEEDS. “(a) In General.— The local currency proceeds of sales pursuant to section 304(2) shall be used in the recipient country for specific economic development purposes, including— “(1) the promotion of specific policy reforms to improve food security and agricultural development within the country and to promote broad-based, equitable, and sustainable development; “(2) the establishment of development programs, projects, and activities that promote food security, alleviate hunger, improve nutrition, and promote family planning, maternal and child health care, oral rehydration therapy, and other child survival objectives consistent with section 104(c)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 2151b(c)(2)), relating to the Child Survival Fund; “(3) the promotion of increased access to food supplies through the encouragement of specific policies and programs designed to increase employment and incomes within the country; 104 STAT. 3644 “(4) the promotion of free and open markets through specific policies and programs; “(5) support for United States private voluntary organizations and cooperatives and encouragement of the development and utilization of indigenous nongovernmental organizations; “(6) the purchase of agricultural commodities (including transportation and processing costs) produced in the country— “(A) to meet urgent or extraordinary relief requirements in the country or in neighboring countries; or “(B) to develop emergency food reserves; “(7) the purchase of goods and services (other than agricultural commodities and related services) to meet urgent or extraordinary relief requirements; “(8) the payment, to the extent practicable, of the costs of carrying out the program authorized in title V; “(9) private sector development activities designed to further the policies set forth in section 2, including loans to financial intermediaries for use in making loans to private individuals, cooperatives, corporations, or other entities; “(10) activities of the Peace Corps that relate to agricultural production; “(11) the development of rural infrastructure such as roads, irrigation systems, and electrification to enhance agricultural production; “(12) research on malnutrition and its causes, as well as research relating to the identification and application of policies and strategies for targeting resources made available under this section to address the problem of malnutrition; and “(13) support for research (including collaborative research which is mutually beneficial to the United States and the recipient country), education, and extension activities in agricultural sciences. Section 1306 of title 31, United States Code, shall not apply to the use under this subsection of local currency proceeds that are owned by the United States. “(b) Support of Indigenous Non-Governmental Organizations.— To the extent practicable, not less than 10 percent of the amounts contained in an account established for a recipient country under section 305(a) shall be used by such country to support the development and utilization of indigenous nongovernmental organizations and cooperatives that are active in rural development, agricultural education, sustainable agricultural production, other measures to assist poor people, and environmental protection projects within such country. “(c) Investment of Local Currencies by Nongovernmental Organizations.— A nongovernmental organization may invest local currencies that accrue to that organization as a result of assistance under subsection (a), and any interest earned on such investment may be used for the purpose for which the assistance was provided to that organization without further appropriation by the Congress. “(d) Support for Certain Educational Institutions.— If the Administrator determines that local currencies deposited in a special account pursuant to this title are not needed for any of the activities prescribed in paragraphs (1) through (13) of subsection (a) or for any other specific economic development purpose in the recipient country, the Administrator may use those currencies to provide support for any institution (other than an institution whose104 STAT. 3645 primary purpose is to provide religious education) located in the recipient country that provides education in agricultural sciences or other disciplines for a significant number of United States nationals (who may include members of the United States Armed Forces or the Foreign Service or dependents of such members). “TITLE IV— GENERAL AUTHORITIES AND REQUIREMENTS “SEC. 401. COMMODITY DETERMINATIONS. “(a) Available Commodities.— After consulting with other agencies of the Federal Government affected and within policies established by the President for implementing this Act, and after taking into consideration productive capacity, domestic requirements, farm and consumer price levels, commercial exports, and adequate carry-over, the Secretary shall determine, prior to the beginning of each fiscal year, the agricultural commodities and quantities thereof available for disposition under this Act. “(b) Modification.— The Secretary may, during the fiscal year, modify a determination made under subsection (a) if the Secretary provides to the Congress prior notice of that modification (including a statement of the reasons for the modification). “(c) Commodities Not Available.— No commodity shall be available for disposition under this Act if such disposition would reduce the domestic supply of such commodity below that needed to meet domestic requirements, adequate carryover, and anticipated exports for dollars as determined by the Secretary, unless the Secretary determines that some part of the supply should be used to carry out urgent humanitarian purposes under this Act. “(d) Policies for Implementing Act.— The Secretary shall, to the extent practicable, seek to maintain a stable level of available agricultural commodities under this Act of the kind and type needed to provide food assistance to developing countries and should attempt to make such commodities available to the degree necessary to fulfill multi-year agreements entered into under this Act. “(e) Ineligible Commodities.— “(1) Alcoholic beverages.— Alcoholic beverages shall not be made available for disposition under this Act. “(2) Tobacco.— Tobacco or the products thereof shall not be made available under section 303 or title II of this Act. “(f) Market Development Activities.— Subsection (e)(1) shall not be construed to prohibit representatives of the United States wine, beer, distilled spirits, or other alcoholic beverage industry from participating in agricultural market development activities carried out by the Secretary with foreign currencies made available under title I of this Act. “SEC. 402. DEFINITIONS. “As used in this Act: “(1) Administrator.— The term ‘Administrator’ means the Administrator of the Agency for International Development, unless otherwise specified in this Act. “(2) Agricultural commodity.— The term ‘agricultural commodity’, unless otherwise provided for in this Act, includes any agricultural commodity or the products thereof produced in104 STAT. 3646 the United States, including wood and processed wood products, fish, and livestock as well as value-added, fortified, or high-value agricultural products. Effective beginning on October 1, 1991, for purposes of title II, a product of an agricultural commodity shall not be considered to be produced in the United States if it contains any ingredient that is not produced in the United States, if that ingredient is produced and is commercially available in the United States at fair and reasonable prices. “(3) Cooperative.— The term ‘cooperative’ means a private sector organization whose members own and control the organization and share in its services and its profits and that provides business services and outreach in cooperative development for its membership. “(4) Developing country.— The term ‘developing country’ means a country that has a shortage of foreign exchange earnings and has difficulty meeting all of its food needs through commercial channels. “(5) Food security.— The term ‘food security’ means access by all people at all times to sufficient food and nutrition for a healthy and productive life. “(6) Indigenous nongovernmental organization.— The term ‘indigenous nongovernmental organization’ means an organization that operates under the laws of the recipient country, or that has its principal place of activity in such country, and that works at the local level to solve development problems in the foreign country in which it is located, except that the term does not include an organization that is primarily an agent or instrumentality of the foreign government. “(7) Private voluntary organization.— The term ‘private voluntary organization’ means a not-for-profit, nongovernmental organization (in the case of a United States organization, an organization that is exempt from Federal income taxes under section 501(c)(3) of the Internal Revenue Code of 1986) that receives funds from private sources, voluntary contributions of money, staff time, or in-kind support from the public, and that is engaged in or is planning to engage in voluntary, charitable, or development assistance activities (other than religious activities). “(8) Secretary.— The term ‘Secretary’ means the Secretary of Agriculture, unless otherwise specified in this Act. “SEC. 403. GENERAL PROVISIONS. “(a) Prohibition.— No agricultural commodity shall be made available under this Act unless it is determined that— “(1) adequate storage facilities will be available in the recipient country at the time of the arrival of the commodity to prevent the spoilage or waste of the commodity; and “(2) the distribution of the commodity in the recipient country will not result in a substantial disincentive to or interference with domestic production or marketing in that country. “(b) Consultations.— The Secretary or the Administrator, as appropriate, shall consult with representatives from the International Monetary Fund, the International Bank for Reconstruction and Development, the World Bank, and other donor organizations to ensure that the importation of United States agricultural commodities and the use of local currencies for development purposes will104 STAT. 3647 not have a disruptive impact on the farmers or the local economy of the recipient country. “(c) Transshipment.— The Secretary or the Administrator, as appropriate, shall, under such terms and conditions as are determined to be appropriate, require commitments from countries designed to prevent or restrict the resale or transshipment to other countries, for use for other than domestic purposes, of agricultural commodities donated or purchased under this Act. “(d) Private Trade Channels and Small Business.— Private trade channels shall be used under this Act to the maximum extent practicable in the United States and in the recipient countries with respect to— “(1) sales from privately owned stocks; “(2) sales from stocks owned by the Commodity Credit Corporation; and “(3) donations. Small businesses shall be provided adequate and fair opportunity to participate in such sales. “(e) World Prices.— In carrying out this Act, reasonable precautions shall be taken to assure that sales or donations of agricultural commodities will not unduly disrupt world prices for agricultural commodities or normal patterns of commercial trade with foreign countries. “(f) Publicity.— Commitments shall be obtained from countries receiving commodities under this Act that such countries will widely publicize, to the extent practicable, through the use of the public media and through other means, that such commodities are being provided through the friendship of the American people as food for peace. “(g) Participation of Private Sector.— The Secretary or the Administrator, as appropriate, shall encourage the private sector of the United States and private importers in developing countries to participate in the programs established under this Act. “(h) Safeguard Usual Marketings.— In carrying out this Act, reasonable precautions shall be taken to safeguard the usual marketings of the United States and to avoid displacing any sales of the United States agricultural commodities that the Secretary or Administrator determines would otherwise be made. “(i) Military Distribution of Food Aid.— “(1) In general.— The Secretary or the Administrator, as appropriate, shall attempt to ensure that agricultural commodities made available under this Act will be provided without regard to the political affiliation, geographic location, ethnic, tribal, or religious identity of the recipient or without regard to other extraneous factors. “(2) Prohibition on handling of commodities by the military.— “(A) In general.— Except as provided in subparagraph (B), the Secretary or the Administrator, as appropriate, shall not enter into an agreement under this Act to provide agricultural commodities if such agreement requires or permits the distribution, handling, or allocation of such commodities by the military forces of any government or insurgent group. “(B) Exception.— Notwithstanding subparagraph (A), the Secretary or the Administrator, as appropriate, may authorize the handling or distribution of commodities by the104 STAT. 3648 military forces of a country in exceptional circumstances in which— “(i) nonmilitary channels are not available for such handling or distribution; “(ii) such action is consistent with the requirements of paragraph (1); and “(iii) the Secretary or the Administrator, as appropriate, determines that such action is necessary to meet the emergency health, safety, or nutritional requirements of the recipient population. “(C) Report.— Not later than 30 days after an authorization is provided under subparagraph (B), the Secretary or the Administrator, as appropriate, shall prepare and submit to the appropriate Committees of Congress a report concerning such authorization and include in any such report the reason for the authorization, including an explanation of why no alternatives to such handling or distribution were available. “(3) Encouragement of safe passage.— When entering into agreements under this Act that involve areas within recipient countries that are experiencing protracted warfare or civil strife, the Secretary or the Administrator, as appropriate, shall, to the extent practicable, encourage all parties to the conflict to permit safe passage of the commodities and other relief supplies and to establish safe zones for medical and humanitarian treatment and evacuation of injured persons. “(j) Violations of Human Rights.— “(1) Ineligible countries.— The Secretary or the Administrator, as appropriate, shall not enter into any agreement under this Act to provide agricultural commodities, or to finance the sale of agricultural commodities, to the government of any country determined by the President to engage in a consistent pattern of gross violations of internationally recognized human rights, including— “(A) the torture or cruel, inhuman, or degrading treatment or punishment of individuals; “(B) the prolonged detention of individuals without charges; “(C) the responsibility for causing the disappearance of individuals through the abduction and clandestine detention of such individuals; or “(D) other flagrant denials of the right to life, liberty, and the security of persons. “(2) Waiver.— Paragraph (1) shall not prohibit the provision of assistance to such a country if the assistance is targeted to the most needy people in such country and is made available in such country through channels other than the government. “(k) Abortion Prohibition.— Local currencies that are made available for use under this Act may not be used to pay for the performance of abortions as a method of family planning or to motivate or coerce any person to practice abortions. “SEC. 404. AGREEMENTS. “(a) In General.— Before entering into agreements under titles I and III for the provision of commodities, the Secretary or the Administrator, as appropriate, shall consider the extent to which the recipient country is undertaking measures for economic develop-104 STAT. 3649ment purposes in order to improve food security and agricultural development, alleviate poverty, and promote broad-based, equitable, and sustainable development. “(b) Terms of Agreement.— An agreement entered into under this Act shall— “(1) include an estimate of the annual value or volume of agricultural commodities proposed to be made available to the country or eligible organization under the agreement; “(2) with respect to agreements entered into under titles I and III, include a statement of the manner in which the agricultural commodities provided under the agreement or the revenues generated by the sale of such commodities (if such commodities are sold), will be integrated into the overall development plans of the country to improve food security and agricultural development, alleviate poverty, and promote broad-based, equitable, and sustainable agriculture; “(3) with respect to agreements entered into under titles I and III, include a statement of the manner in which competitive private sector participation within the recipient country in the storage, marketing, transportation, and distribution of agricultural commodities made available under this Act will be encouraged; “(4) include a statement that such agreement shall be subject to the availability, during each fiscal year to which the agreement applies, of the necessary appropriations and agricultural commodities; and “(5) contain such other terms and conditions as the Secretary or the Administrator, as appropriate, determines to be necessary. “(c) Multi-year Agreements.— “(1) In general.— Agreements to provide assistance on a multi-year basis under this Act shall be made available to recipient countries or to eligible organizations. “(2) Exception.— The Secretary or the Administrator, as appropriate, may determine not to make assistance available on a multi-year basis with respect to a recipient country or an eligible organization if it is determined that assistance should be provided to such country or through such organization only on an annual basis because— “(A) the past performance of the country or organization in meeting program objectives does not warrant a multi-year agreement; “(B) it is anticipated that the need of the country or organization for food aid does not extend beyond 1 year; or “(C) other circumstances, as determined by the Secretary or the Administrator, as appropriate, indicate there is only a need for a 1 year agreement. “(d) Review of Agreements.— The Secretary or the Administrator, as appropriate, may make a determination to terminate, or refuse to enter into, a multi-year agreement with respect to a recipient country if the Secretary or the Administrator determines that such country is not fulfilling the objectives or requirements of this Act. In making such a determination, the Secretary or the Administrator, as appropriate, may consider the extent to which the country is— “(1) making significant economic development reforms; 104 STAT. 3650 “(2) promoting free and open markets for food and agricultural producers; and “(3) fostering increased food security. “SEC. 405. CONSULTATION. “The Secretary and the Administrator shall cooperate and consult in the implementation of this Act. “SEC. 406. USE OF COMMODITY CREDIT CORPORATION. “(a) In General.— The Commodity Credit Corporation shall acquire and make available such agricultural commodities (that have been determined to be available under section 401(a)) as necessary to carry out agreements under this Act. “(b) Included Expenses.— With respect to commodities made available under this Act, the Commodity Credit Corporation may pay— “(1) the cost of acquiring such commodities; “(2) the costs associated with packaging, enrichment, preservation, and fortification of such commodities; “(3) the processing, transportation, handling, and other incidental costs up to the time of the delivery of such commodities free on board vessels in United States ports; “(4) the ocean freight charges from United States ports to designated ports of entry abroad; “(5) the costs associated with transporting such commodities from United States ports to designated points of entry abroad in the case— “(A) of landlocked countries; “(B) of ports that cannot be used effectively because of natural or other disturbances; “(C) of the unavailability of carriers to a specific country; or “(D) of substantial savings in costs or items that may be effected by the utilization of points of entry other than ports; “(6) in the case of commodities for urgent and extraordinary relief requirements (including pre-positioned commodities) the transportation costs incurred in moving the commodities from designated points of entry or ports of entry abroad to storage and distribution sites and associated storage and distribution costs; and “(7) the charges for general average contributions arising out of the ocean transport of commodities transferred pursuant thereto. “(c) Commodity Credit Corporation.— The funds, facilities, and authorities of the Commodity Credit Corporation may be used to carry out this Act. “SEC. 407. ADMINISTRATIVE PROVISIONS. “(a) Title I Programs.— “(1) Acquisitions.— The importing country shall acquire the agricultural commodities to be financed under title I. “(2) Invitation for bid.— No purchase of agricultural commodities from private stock or purchase of ocean transportation shall be financed under title I unless such purchases are made on the basis of an invitation for bid that is publicly advertised in the United States, and on the basis of bid offerings104 STAT. 3651 that shall conform to such invitation and be received and publicly opened in the United States. All awards in the purchase of commodities or ocean transportation financed under title I shall be consistent with open, competitive, and responsive bid procedures, as determined appropriate by the Secretary. “(b) Reporting of Fees.— “(1) Requirement.— Notwithstanding any other provision of law, any commission, fee, or other compensation of any kind paid, or to be paid, by any supplier of an agricultural commodity, or any ocean transportation financed or agricultural commodity donated by the Commodity Credit Corporation under title I to any agents, brokers, or other representatives of the importer or importing country shall be reported to the Secretary by the supplier of the commodity or ocean transportation. “(2) Content.— A report filed under paragraph (1) shall identify the person or entity to whom the payment is made and the amount of the commission or fees paid. “(3) Publication of information.— The Secretary shall— “(A) maintain all information provided under this section for public inspection; “(B) annually publish a report containing the information referred to in subparagraph (A); and “(C) forward a copy of the annual report referred to in subparagraph (B) to the appropriate committees of Congress. “(4) Failure to file.— A supplier of a commodity or ocean transportation who fails to file a report required under this subsection, or who files a false report, shall be ineligible to furnish, directly or indirectly, commodities or ocean transportation financed under title I for a period of not to exceed 5 years. “(c) Agents.— “(1) Authority of the Secretary or Commodity Credit Corporation.— “(A) General rule.— Except as provided in subparagraph (B), if it is determined appropriate, the Secretary or the Commodity Credit Corporation may serve as the purchasing or shipping agent, or both, for the importing country in arranging the purchase or shipping of commodities financed under this section. “(B) Exception.— Notwithstanding subparagraph (A), the Secretary or the Commodity Credit Corporation may award, under a competitive bidding process, contracts for establishing freight agents who shall act on behalf of the Secretary or the Corporation to handle the shipping of commodities financed under this Act. “(C) Avoidance of conflict of interest of contractors.— Freight agents employed by the Secretary or the Commodity Credit Corporation under title I shall not represent any other foreign government during the period of their contract with the United States Government. “(2) Reasonable fees and commissions.— “(A) Fees.— Notwithstanding any other provision of law, the Secretary or the Commodity Credit Corporation may enter into an agreement with the importing country that contains the terms and conditions that will govern the104 STAT. 3652 provision of purchasing or shipping agent services by the Secretary or the Corporation, including the establishment of fees for such services. Any such fees shall be fair and reasonable in relation to the services performed and shall be available as reimbursement for costs incurred in providing such services. “(B) Prohibition on commissions.— Commissions, fees, or other payments to any selling agent or to any agent of a purchaser shall be prohibited in the purchase of agricultural commodities that are financed under this Act. “(3) Limitations.— No commission, fees, or other payments to an agent, broker, consultant, or other representative of the importer or importing country for ocean transportation brokerage services in connection with the carriage of commodities provided under this Act may— “(A) be paid in excess of an amount determined appropriate by the Secretary; and “(B) be shared by such person with the importer or importing country or any agent thereof. “(4) Avoidance of conflict of interest.— A person may not be an agent, broker, consultant, or other representative of the United States Government, an importer, or an importing country in connection with agricultural commodities provided under this Act during a fiscal year in which such person acts as an agent, broker, consultant, or other representative if the person is engaged in providing ocean transportation-related services for such commodities. For the purpose of this paragraph, the term ‘transportation-related services’ means lightening, stevedoring, bagging, or inland transportation to the destination point. “(d) Title II and III Program.— “(1) Acquisition.— The Administrator shall transfer, arrange for the transportation, and take other steps necessary to make available agricultural commodities to be provided under title II and title III. “(2) Full and Open Competition.— No purchase of agricultural commodities from private stocks or purchase of ocean transportation services by the United States Government shall be financed under titles II and III unless such purchases are made on the basis of full and open competition utilizing such procedures as are determined necessary and appropriate by the Administrator. “(3) Avoidance of conflict of interest.— Freight agents employed by the Agency for International Development under titles II and III shall not represent any other foreign government during the period of their contract with the United States Government. “(4) Ocean Transportation Services.— Notwithstanding any provision of the Federal Property Act of 1949, as amended, or other similar provisions relating to the making or performance of Federal Government contracts, the Administrator may procure ocean transportation services under this Act under such full and open competitive procedures as the Administrator determines are necessary and appropriate. “(e) Timing of Shipments.— In determining the timing of the shipment of agricultural commodities to be provided under this Act, the Secretary or the Administrator, as appropriate, shall consider— 104 STAT. 3653 “(1) the time of harvest of any competing commodities in the recipient country; and “(2) such other concerns determined to be appropriate. “(f) Deadline for Agreements Under Titles I and III.— An agreement under titles I and III shall, to the extent practicable, be entered into not later than— “(1) November 30 of the first fiscal year in which agricultural commodities are to be shipped under the agreement; or “(2) 60 days after the date of enactment of the annual Rural Development, Agriculture, and Related Agencies Appropriations Act for the first fiscal year in which agricultural commodities are to be shipped under the agreement, whichever is later. “(g) Annual Reports.— “(1) In general.— The President shall prepare an annual report concerning the programs and activities implemented under this Act for the preceding fiscal year. “(2) Contents.— Each report shall include— “(A) the countries and organizations receiving food and other assistance provided to each country and organization under this Act; “(B) a general description of the projects or activities implemented under this Act, including local currency funded activities; and “(C) a statement of the amount of agricultural commodities made available to each country pursuant to section 416(b) of the Agricultural Act of 1949 and the Food for Progress Act of 1985. “(3) Submission.— The President shall submit such report not later than January 15 of each year to the Committee on Agriculture and the Committee on Foreign Affairs of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. “(h) World Food Day Report.— On World Food Day, October 16 of each year, the President shall submit to the appropriate committees of Congress a report, prepared with the assistance of the Secretary and the Administrator, assessing progress towards food security in each country receiving United States Government food assistance. Special emphasis should be given in such report to the nutritional status of the poorest populations in such countries. “SEC. 408. EXPIRATION DATE. “No agreements to finance sales or to provide other assistance under this Act shall be entered into after December 31, 1995. “SEC. 409. REGULATIONS. “Not later than 180 days after the date of enactment of this Act, regulations shall be issued to implement the provisions of this Act. “SEC. 410. INDEPENDENT EVALUATION OF PROGRAMS. “(a) Title I Program.— Not later than 2 years after the date of enactment of this Act, and 2 years thereafter, the Comptroller General of the United States shall select five countries that receive assistance under title I that are representative of all countries in three geographic regions and evaluate the uses of the funds under title I in such countries with respect to the impact of such uses on agricultural development, agricultural trade development, and the104 STAT. 3654 financial management of those funds, with reference to personnel requirements to manage these funds. “(b) Title II Program.— Not later than 2 years after the date of enactment of this Act, and 2 years thereafter, the Comptroller General of the United States shall select five countries that receive assistance under title II that are representative of all countries in three geographic regions and evaluate the uses of the assistance provided under such title, including an evaluation of the impact of such assistance on enhancing food security in such countries and an evaluation of the use of local currencies for economic development, as well as the financial management of those funds, with reference to personnel requirements to manage these funds. “(c) Title III Program.— Not later than 2 years after the date of enactment of this Act, and 2 years thereafter, the Comptroller General of the United States shall select five countries that receive assistance under title III that are representative of all such countries in three geographic regions and evaluate— “(1) the uses of the commodities provided under such title in such countries; and “(2) the uses of the special account funds established in such countries under title III; with respect to the impact of such uses and funds on enhancing food security, including nutrition, in such countries and the financial management of those funds, with reference to personnel requirements to manage such funds. “(d) Report to Congress.— The Comptroller General of the United States shall prepare and submit, to the Committee on Foreign Affairs and the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report concerning the evaluations made under this section. “SEC. 411. DEBT FORGIVENESS. “(a) Authority.— The President, taking into account the financial resources of a country, may waive payments of principal and interest that such country would otherwise be required to make to the Commodity Credit Corporation under dollar sales agreements under this title if— “(1) that country is a least developed country; and “(2) either— “(A) an International Monetary Fund standby agreement is in effect with respect to that country; “(B) a structural adjustment program of the International Bank for Reconstruction and Development or of the International Development Association is in effect with respect to that country; “(C) a structural adjustment facility, enhanced structural adjustment facility, or similar supervised arrangement with the International Monetary Fund is in effect with respect to that country; or “(D) even though such an agreement, program, facility, or arrangement is not in effect, the country is pursuing national economic policy reforms that would promote democratic, market-oriented, and long term economic development. 104 STAT. 3655 “(b) Request for Debt Relief by President.— The President may provide debt relief under subsection (a) only if a notification is submitted to Congress. Such a notification shall— “(1) specify the amount of official debt the President proposes to liquidate; and “(2) identify the countries for which debt relief is proposed and the basis for their eligibility for such relief. “(c) Appropriations Action Required.— The aggregate amount of principal and interest waived under this section may not exceed the amount approved for such purpose in an Act appropriating funds to carry out this Act. “(d) Limitation on New Credit Assistance.— If the authority of this section is used to waive payments otherwise required to be made by a country pursuant to this Act, the President may not provide any new credit assistance for that country under this Act during the 2-year period beginning on the date such waiver authority is exercised, unless the President provides to the Congress, before the assistance is provided, a written justification for the provision of such new credit assistance. “(e) Applicability.— The authority of this section applies with respect to credit sales agreements entered into before the date of enactment of this Act. “SEC. 412. AUTHORIZATION OF APPROPRIATIONS. “(a) Reimbursement.— There are authorized to be appropriated such sums as may be necessary to carry out— “(1) the concessional credit sales program established under title I; “(2) the emergency and private assistance program under title II; and “(3) the grant program established under title III, including such amounts as may be required to make payments to the Commodity Credit Corporation to the extent the Commodity Credit Corporation is not reimbursed under the programs under this Act for the actual costs incurred or to be incurred by such Corporation in carrying out such programs. “(b) Limitations.— Of the amounts made available in each fiscal year to carry out titles I and III, not less than— “(1) 40 percent shall be made available to carry out the credit sales program established under title I; and “(2) 40 percent shall be made available to carry out the grant program established under title III. “(c) Transfer of Funds.— Notwithstanding any other provision of law and except as provided in subsection (b), if the President determines it to be necessary for purposes of this Act, the President may direct that not in excess of 15 percent of the funds available in any fiscal year for carrying out any title of this Act be used to carry out any other title of this Act. “(d) Budget.— In presenting the Budget of the United States, the President shall classify expenditures under this Act as expenditures for international affairs and finance rather than for agriculture and agricultural resources. “(e) Value of Commodities.— Notwithstanding any other provision of law, in determining the reimbursement due the Commodity Credit Corporation for all expenses incurred under this Act, commodities from the inventory of the Commodity Credit Corporation that were acquired under title I of the Agricultural Act of 1949104 STAT. 3656 (7 U.S.C. 1421 et seq.) shall be valued at a price not greater than the export market price for such commodities, as determined by the Secretary, as of the time such commodity is made available under this Act. “SEC. 413. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS. “To the maximum extent practicable, assistance for a foreign country under this Act shall be coordinated and integrated with United States development assistance objectives and programs for that country and with the overall development strategy of that country. Special emphasis should be placed on, and funds devoted to, activities that will increase the nutritional impact of programs of assistance under this Act, and child survival programs and projects, in least developed countries by improving the design and implementation of such programs and projects. “SEC. 414. ASSISTANCE IN FURTHERANCE OF NARCOTICS CONTROL OBJECTIVES OF THE UNITED STATES. (a) Substantial Injury.— Local currencies that are made available for use under this Act may not be used to finance the production for export of agricultural commodities (or products thereof) that would compete in the world market with similar agricultural commodities (or products thereof) produced in the United States, if such competition would cause substantial injury to the United States producers, as determined by the President. (b) Exception for Narcotics Control.— Notwithstanding subsection (a), the President may provide assistance under this Act, including assistance through the use of local currencies generated by the sale of commodities under such Act, for economic development activities undertaken in an eligible country that is a major illicit drug producing country (as defined in section 481(i)(2) of the Foreign Assistance Act of 1961), for the purpose of reducing the dependence of the economy of such country on the production of crops from which narcotic and psychotropic drugs are derived. “TITLE V— FARMER-TO-FARMER PROGRAM “SEC. 501. FARMER-TO-FARMER PROGRAM. “(a) In General.— To further assist developing countries, middle-income countries, and emerging democracies to increase farm production and farmer incomes, the President may, notwithstanding any other provision of law— “(1) establish and administer a program of farmer-to-farmer assistance between the United States and such countries to assist in increasing food production and distribution and improving the effectiveness of the farming and marketing operations of farmers; “(2) utilize United States farmers, agriculturalists, land grant universities, private agribusinesses, and nonprofit farm organizations to work in conjunction with farmers and farm organizations in such countries, on a voluntary basis, to facilitate the improvement of farm and agribusiness operations and agricultural systems in such countries, including animal care and health, field crop cultivation, fruit and vegetable growing,104 STAT. 3657 livestock operations, food processing and packaging, farm credit, marketing, inputs, agricultural extension, and the strengthening of cooperatives and other farmer groups; “(3) transfer the knowledge and expertise of United States agricultural producers and businesses, on a people-to-people basis, to such countries while enhancing the democratic process by supporting private and public, agriculturally related organizations that request and support technical assistance activities through cash and in-kind services; “(4) to the extent practicable, enter into contracts or other cooperative agreements with or make grants to private voluntary organizations, cooperatives, land grant universities, private agribusiness, or nonprofit farm organizations to carry out this section (except that any such contract or other agreement may obligate the United States to make outlays only to the extent that the budget authority for such outlays is available pursuant to subsection (c) or has otherwise been provided in advance in appropriation Acts); “(5) coordinate programs established under this section with other foreign assistance activities carried out by the United States; and “(6) to the extent practicable, augment the funds available for programs established under this section through the use of foreign currencies that accrue from the sale of agricultural commodities under this Act, and local currencies generated from other types of foreign assistance activities. “(b) Definitions.— The following definitions apply for purposes of this section: “(1) Emerging democracy.— The term ‘emerging democracy’ means a country that is taking steps toward— “(A) political pluralism, based on progress toward free and fair elections and a multiparty political system; “(B) economic reform, based on progress toward a market-oriented economy; “(C) respect for internationally recognized human rights; and “(D) a willingness to build a friendly relationship with the United States. “(2) Middle income country.— The term ‘middle income country’ means a country that has developed economically to the point where it does not receive bilateral development assistance from the United States. “(c) Minimum Funding.— Notwithstanding any other provision of law, not less than 0.2 percent of the amounts made available for each of the fiscal years 1991 through 1995 to carry out this Act, in addition to any funds that may be specifically appropriated to carry out this section, shall be used to carry out programs under this section, with not less than 0.1 percent to be used for programs in developing countries. 104 STAT. 3658 “TITLE VI— ENTERPRISE FOR THE AMERICAS INITIATIVE “SEC. 601. ESTABLISHMENT OF THE FACILITY. “There is established in the Department of the Treasury an entity to be known as the ‘Enterprise for the Americas Facility’(hereafter referred to in this title as the ‘Facility’). “SEC. 602. PURPOSE. “The purpose of this title is to encourage and support improvement in the lives of the people of Latin America and the Caribbean through market-oriented reforms and economic growth with interrelated actions to promote debt reduction, investment reforms, and community-based conservation and sustainable use of the environment. The Facility will support such objectives through the administration of debt reduction operations relating to those countries that meet investment reform and other policy conditions provided for in this title. “SEC. 603. ELIGIBILITY FOR BENEFITS UNDER THE FACILITY. “(a) Requirements.— To be eligible for benefits from the Facility under this title, a country shall— “(1) be a Latin American or Caribbean country; “(2) have in effect or have received approval for, or, as appropriate in exceptional circumstances, be making significant progress towards the establishment of— “(A) an International Monetary Fund (hereafter referred to in this title as the ‘IMF’) standby arrangement, extended IMF arrangement, or an arrangement under the structural adjustment facility or enhanced structural adjustment facility, or in exceptional circumstances, an IMF-monitored program or its equivalent; and “(B) as appropriate, structural or sectoral adjustment loans from the International Bank for Reconstruction and Development (hereafter referred to in this title as the ‘World Bank’) or the International Development Association (hereafter referred to in this title as the ‘IDA’); “(3) have placed into effect major investment reforms in conjunction with an Inter-American Development Bank (hereafter referred to as the ‘IDB’) loan or otherwise be implementing, or making significant progress towards an open investment regime; and “(4) if appropriate, have agreed with its commercial bank lenders on a satisfactory financing program, including, as appropriate, debt or debt service reduction. “(b) Eligibility Determination.— The President shall determine whether a country is an eligible country for purposes of subsection (a). “SEC. 604. REDUCTION OF CERTAIN DEBT. “(a) Authority to Reduce Debt.— “(1) In general.— Notwithstanding any other provision of law, the President may reduce the amount owed to the United States or any agency of the United States, and outstanding as of January 1, 1990, as a result of any credits extended under title I to a country eligible for benefits from the Facility. 104 STAT. 3659 “(2) Availability of appropriations.— The authorities under this section may be exercised only to the extent provided for in advance in appropriation Acts. “(b) Limitation.— A debt reduction authorized under subsection (a) shall be accomplished, at the direction of the Facility, through the exchange of a new obligation under this title for obligations of the type referred to in subsection (a) outstanding as of January 1, 1990. “(c) Exchange of Obligations.— The Facility shall notify the Commodity Credit Corporation of an agreement entered into under subsection (b) with an eligible country to exchange a new obligation for outstanding obligations. At the direction of the Facility, the old obligations that are the subject of the agreement may be canceled and a new debt obligation may be established for the country relating to the agreement. The Commodity Credit Corporation shall make an adjustment in its accounts to reflect a debt reduction under this section. “SEC. 605. REPAYMENT OF PRINCIPAL. “(a) Currency of Payment.— The principal amount owed under each new obligation issued under section 604 shall be repaid in United States dollars. “(b) Deposit of Payments.— Principal repayments on new obligations issued under section 604 shall be deposited in Commodity Credit Corporation accounts. “SEC. 606. INTEREST OF NEW OBLIGATIONS. “(a) Rate of Interest.— New obligations issued to an eligible country under section 604 shall bear interest at a concessional rate. “(b) Currency of Payment, Deposits.— “(1) United states dollars.— An eligible country to which a new obligation has been issued under section 604 that has not entered into an agreement under section 607, shall be required to pay interest on such obligation in United States dollars which shall be deposited in Commodity Credit Corporation accounts. “(2) Local currency.— If an eligible country to which a new obligation has been issued under section 604 has entered into an agreement under section 607, interest under such obligation may be paid in the local currency of the eligible country and deposited into an Environmental Fund as provided for in section 608. Such interest shall be the property of the eligible country until such time as it is disbursed under section 608. Such local currencies shall be used for the purposes specified in the agreement entered into under section 607. “(c) Interest Previously Paid.— If an eligible country to which a new obligation has been issued under section 604 enters into an agreement under section 607 subsequent to the date on which interest first becomes due on such new obligation, any interest paid on such new obligation prior to such agreement being entered into shall not be redeposited into the Fund established for the eligible country under section 608(a) but shall be deposited into Commodity Credit Corporation. “SEC. 607. ENVIRONMENTAL FRAMEWORK AGREEMENTS. “(a) Authority.— The President is authorized to enter into an environmental framework agreement with each country eligible for benefits from the Facility concerning the operation and use of an104 STAT. 3660 Enterprise for the Americas Environmental Fund (hereafter referred to in this title as the ‘Environmental’ Fund) established under section 608 for that country. The President shall consult with the Board established under section 610 when entering into such agreements. “(b) Requirements.— An environmental framework agreement entered into under this section shall— “(1) require the eligible country to establish an Environmental Fund; “(2) require the eligible country to make interest payments under section 608(a) into the Environmental Fund; “(3) require the eligible country to make prompt disbursements from the Environmental Fund to the body described in subsection (c); “(4) where appropriate, seek to maintain the value of the local currency resources deposited into the appropriate Environmental Fund in terms of United States dollars; “(5) specify, in accordance with section 612, the purposes for which the Environmental Fund may be used; and “(6) contain reasonable provisions for the enforcement of the terms of the agreement. “(c) Administering Body.— Funds disbursed from the Environmental Fund in an eligible country shall be administered by a body constituted under the laws of the country. Such body shall— “(1) be composed of— “(A) one or more representatives appointed by the President; “(B) one or more representatives appointed by the eligible country; and “(C) representatives from a broad range of environmental and local community development nongovernmental organizations of the host country; the majority of which shall be local representatives from non-governmental organizations, and scientific or academic bodies; “(2) receive proposals for grant assistance from local organizations, and make grants to such organizations in accordance with the priorities agreed upon in the framework agreement and consistent with the overall purposes of section 612; “(3) be responsible for the management of the program and oversight of grant activities funded from resources of the Environmental Fund; “(4) be subject to fiscal audits by an independent auditor on an annual basis; “(5) present an annual program for review by the Board established under section 610 each year; “(6) present an annual report on the activities undertaken during the previous year to the Chairman of the Board established under section 610, and the government of the eligible country each year; and “(7) have any grant over $100,000 be subject to veto by the United States and the government of the eligible country. “SEC. 608. ENTERPRISE FOR THE AMERICAS ENVIRONMENTAL FUNDS. “(a) Establishment.— An eligible country shall, under the terms of an environmental framework agreement entered into under section 607, establish an Environmental Fund to receive payments in local currency pursuant to section 607(b)(1). 104 STAT. 3661 “(b) Investment.— Amounts deposited into an Environmental Fund shall be invested until disbursed. Notwithstanding any other provision of law, any return on such investment may be retained by the Environmental Fund and need not be deposited to the account of the Commodity Credit Corporation and may be retained without further appropriation by Congress. “SEC 609. DISBURSEMENT OF ENVIRONMENTAL FUNDS. “Funds in an Environmental Fund shall be disbursed only pursuant to a framework agreement entered into pursuant to section 607. “SEC. 610. ENVIRONMENT FOR THE AMERICAS BOARD. “(a) Establishment.— There is established a board to be known as the ‘Environment for the Americas Board’ (hereafter referred to in this title as the ‘Board’). “(b) Membership and Chairperson.— “(1) Membership.— The Board shall be composed of— “(A) five representatives from the United States Government; and “(B) four representatives from private nongovernmental environmental, community development, scientific, and academic organizations with experience and expertise in Latin America and the Caribbean; to be appointed by the President. “(2) Chairperson.— The Board shall be headed by a chairperson who shall be appointed by the President from among the representatives appointed under paragraph (1)(A). “(c) Responsibilities.— The Board shall— “(1) advise the President on the negotiations for the environmental framework agreements described in subsections (a) and (b) of section 607; “(2) ensure, in consultation with the government of the appropriate eligible country, with nongovernmental organizations of such eligible country, and if appropriate, of the region, and with environmental, scientific, and academic leaders of such eligible country and, as appropriate, of the region, that a suitable body referred to in section 607(c) is identified; and “(3) review the programs, operations, and fiscal audits of the bodies referred to in section 607(c). “SEC. 611. OVERSIGHT. “The President may designate appropriate United States agencies to review the implementation of programs under this title and the fiscal audits relating to such programs. Such oversight shall not constitute active management of an Environmental Fund. “SEC. 612. ELIGIBLE ACTIVITIES AND GRANTEES. “(a) Eligible Entities.— Activities eligible to receive assistance through the framework agreements entered into under section 607, shall include— “(1) activities of the type described in the Global Environmental Protection Assistance Act of 1989 (22 U.S.C. 462), and— “(2) agriculture-related activities, including those that provide for the biological prevention and control of animal and plant pests and diseases, to benefit the environment; and “(3) local community initiatives that promote conservation and sustainable use of the environment. 104 STAT. 3662 “(b) Regulation.— All activities of the type referred to in subsection (a) shall, where appropriate, include initiatives that link conservation of natural resources with local community development. “(c) Setting of Priorities.— Appropriate activities and priorities relating to the use of an Environmental Fund shall be set by local nongovernmental organizations within the appropriate eligible country. “(d) Grants.— Grants may be made by the body referred to in section 607(c) from the Environmental Fund for environmental purposes to— “(1) host country nongovernmental environmental, conservation, development, educational, and indigenous peoples organizations; “(2) other appropriate local or regional entities; or “(3) in exceptional circumstances, the government of the eligible country. “(e) Priority.— In providing assistance from an Environmental Fund, the body established under section 607(c) within the eligible country shall give priority to projects that are run by nongovernmental organizations and other private entities, and that involve local communities in their planning and execution. “SEC. 613. ENCOURAGING MULTILATERAL DEBT DONATIONS. “(a) Encouraging Donations From Official Creditors.— The President should actively encourage other official creditors of an eligible country to provide debt reduction to such eligible country. “(b) Encouraging Donations From Other Sources.— The President shall make every effort to insure that programs established through Environmental Funds are able to receive donations from private and public entities, and private creditors of the eligible country. “SEC. 614. ANNUAL REPORT TO CONGRESS. “Not later than December 31 of each fiscal year, the President shall prepare and submit to the Speaker of the House of Representatives and the President Pro Tempore of the Senate an annual report concerning the operation of the Facility for the prior fiscal year.”.