Pub. L. 88-205, pt. I, ch. 2, tit. iii

Sec. 104. Title III of chapter 2 of part I of the Foreign Assistance Act of 1961, as amended, which relates to investment guaranties, is amended as follows: (a) Amend section 221(b), which relates to general authority, as follows: (1) In the first sentence after “wholly owned” insert “(determined without regard to any shares, in aggregate less than 5 per centum of the total of issued and subscribed share capital, required by law to be held by persons other than the parent corporation)”. (2) In paragraph (1) strike out “$1,300,000,000” in the proviso and substitute “$2,500,000,000”. (3) In paragraph (2) strike out “1964” in the fourth proviso and substitute “1965”. (b) Amend section 222(a), which relates to general provisions, by striking out “section 221(b)” and substituting “sections 221(b) and 224”. (c) Amend section 222(b), which relates to general provisions, by striking out “section 221 (b) ” in both places it appears and substituting “sections 221(b) and 224”. (d) Amend section 222(d), which relates to general provisions, to read as follows: “(d) Any payments made to discharge liabilities under guaranties issued under sections 221 (b) and 224 of this part, sections 202(b) and 413(b) (4) of the Mutual Security Act of 1954, as amended, and section 111(b) (3) of the Economic Cooperation Act of 1948, as amended (exclusive of informational media guaranties), shall be paid first out of fees referred to in section 222(b) as long as such fees are available, and thereafter shall be paid out of funds, if any, realized from the sale of currencies or other assets acquired in connection with any payments 77 Stat. 382made to discharge liabilities under such guaranties as long as such funds are available, and thereafter shall be paid out of funds hereto-fore appropriated for the purpose of discharging liabilities under the aforementioned guaranties, and thereafter out of funds realized from the sale of notes issued under section 413(b) (4) (F) of the Mutual Security Act of 1954, as amended, and section 111(c) (2) of the Economic Cooperation Act of 1948, as amended, and finally out of funds hereafter made available pursuant to section 222(f).” (e) Amend section 222(e), which relates to general provisions, to read as follows: “(e) All guaranties issued prior to July 1, 1956, all guaranties issued under sections 202(b) and 413(b) (4) of the Mutual Security Act of 1954, as amended, and all guaranties heretofore or hereafter issued pureuant to this title shall be considered contingent obligations backed by the full faith and credit of the Government of the United States of America. Funds heretofore obligated under the aforementioned guaranties (exclusive of informational media guaranties) together with the other funds made available for the purposes of this title shall constitute a single reserve for the payment of claims in accordance with section 222(d) of this part.” (f) Amend section 222 by adding at the end thereof the following new subsection: “(g) In making a determination to issue a guaranty under section 221(b), the President shall consider the possible adverse effect of the dollar investment under such guaranty upon the balance of payments of the United States.” (g) Amend section 224, which relates to housing projects in Latin American countries, as follows: (1) In subsection (b) strike out. “$60,000,000” and substitute “$150,000,000”. (2) Strike out subsection (c).