development loan fund

development loan fund Sec. 202. Title II of chapter II of the Mutual Security Act of 1954, as amended, which relates to the Development Loan Fund, is amended as follows: (a) Amend section 201, which states the purposes of the Development Loan Fund, as follows: (1) In the last sentence, after “to develop their economic resources” insert “and free economic institutions”, and after “to increase their productive capabilities” insert “in agriculture as well as in industry”. (2) At the end of the section, add the following new sentences: “The Congress recognizes that the accomplishment of the purposes of this title in rapidly developing countries requires the development of free economic institutions and the stimulation of private investment, local as well as foreign, in the field of housing. It is the sense of the Congress that, consistent with the other purposes of this title, special consideration should be given to loans and guarantees to stimulate activities in this field.” (b) Amend section 202, which relates to general powers of the Development Loan Fund, as follows: (1) In clause (3) of the first sentence of subsection (b) insert “or free economic institutions” after “economic resources”. (2) At the end of the section, add the following new subsection: “(c) The Fund shall not allocate, reserve, earmark, commit, or otherwise set aside, funds aggregating in excess of $50,000 for use in any country under this title unless (1) an application for such funds has been received for use in such country together with sufficient information and assurances to indicate reasonably that the funds will be used in an economically and technically sound manner, or (2) the President determines with respect to each such allocation, reservation, earmarking, commitment, or set-aside that it is in the national interest to use such funds pursuant to multilateral plans.” (c) In section 205(a), which relates to management, powers, and authorities, strike out “Under Secretary of State for Economic Affairs” in the first sentence and substitute “Secretary of State”.