Pub. L. 87-565, pt. III, ch. 1, sec. 301

Sec. 301. Chapter 1 of part III of the Foreign Assistance Act of 1961, as amended, which relates to general provisions, is amended as follows: (a) In section 610, which relates to transfers between accounts, designate the present language as subsection (a) and add the following new subsection: “(b) The authority contained in this section and in sections 451, 510, and 614 shall not be used to augment appropriations made available pursuant to sections 636(g)(1) and 637 or used otherwise to finance activities which normally would be financed from appropriations for administrative expenses.” (b) In section 611(a), which relates to completion of plans and cost estimates, strike out “and II” and substitute “, II, and VI”. (c) Strike out section 618, which relates to economic assistance to Latin America, and substitute a new section 618 as follows: “Sec. 618. Use of Settlement Receipts.— United States dollars directly paid to the United States under the Agreement Between the United States of America and Japan Regarding the Settlement of Postwar Economic Assistance to Japan may be appropriated or otherwise made available to the President in any appropriation Act, within the limitations of part I of this Act, to carry out the provisions of that part.” (d) Amend section 620, which relates to restrictions on assistance to certain countries, as follows: (1) Amend the first sentence of subsection (a) to read as follows: “No assistance shall be furnished under this Act to the present government of Cuba; nor shall any such assistance be furnished to any country which furnishes assistance to the present government of Cuba unless the President determines that such assistance is in the national interest of the United States.” (2) Amend subsection (c) to read as follows: “(c) No assistance shall be provided under this Act to the government of any country which is indebted to any United States citizen or person for goods or services furnished or ordered where (i) such citizen or person has exhausted available legal remedies, which shall include arbitration, or (ii) the debt is not denied or contested by such government, or (iii) such indebtedness arises under an unconditional guaranty of payment given by such government, or any predecessor government, directly or indirectly, through any controlled entity: Provided, That the President does not find such action contrary to the national security.” (3) Add the following new subsections: “(e) The President shall suspend assistance to the government of any country to which assistance is provided under this Act when the government of such country or any governmental agency or subdivision within such country on or after January 1, 1962— 76 Stat. 261 “(1) has nationalized or expropriated or seized ownership or control of property owned by any United States citizen or by any corporation, partnership, or association not less than 50 per centum beneficially owned by United States citizens, or “(2) has imposed or enforced discriminatory taxes or other exactions, or restrictive maintenance or operational conditions, which have the effect of nationalizing, expropriating, or otherwise seizing ownership or control of property so owned, and such country, government agency or government subdivision fails within a reasonable time (not more than six months after such action or after the date of enactment of this subsection, whichever is later) to take appropriate steps, which may include arbitration, to discharge its obligations under international law toward such citizen or entity, including equitable and speedy compensation for such property in convertible foreign exchange, as required by international law, or fails to take steps designed to provide relief from such taxes, exactions, or conditions, as the case may be, and such suspension shall continue until he is satisfied that appropriate steps are being taken and no other provision of this Act snail be construed to authorize the President to waive the provisions of this subsection. “(f) No assistance shall be furnished under this Act, as amended, (except section 214(b)) to any Communist country. This restriction may not lie waived pursuant to any authority contained in this Act unless the President finds and promptly reports to Congress that: (1) such assistance is vital to the security of the United States; (2) the recipient country is not controlled by the international Communist conspiracy; and (3) such assistance will further promote the independence of the recipient country from international communism. For the purposes of this subsection, the phrase ‘Communist country’ shall include specifically, but not be limited to, the following countries: “Peoples Republic of Albania, “Peoples Republic of Bulgaria, “Peoples Republic of China, “Czechoslovak Socialist Republic, “German Democratic Republic (East Germany), “Estonia, “Hungarian Peoples Republic, “Latvia, “Lithuania, “North Korean Peoples Republic, “North Vietnam, “Outer Mongolia-Mongolian Peoples Republic, “Polish Peoples Republic, “Rumanian Peoples Republic, “Tibet, “Federal Peoples Republic of Yugoslavia, “Cuba, and “Union of Soviet Socialist Republics. “(g) Notwithstanding any other provision of law, no monetary assistance shall be made available under this Act to any government or political subdivision or agency of such government which will be used to compensate owners for expropriated or nationalized property and, upon finding by the President that such assistance has been used by any government for such purpose, no further assistance under this Act shall be furnished to such government until appropriate reimbursement is made to the United States for sums so diverted. “(h) The President shall adopt regulations and establish procedures to insure that United States foreign aid is not used in a manner which, contrary to the best interests of the United States, promotes or assists the foreign aid projects or activities of the Communist-bloc countries.”