Pub. L. 88-205, pt. I, ch. 2, tit. vi, sec. 106

Sec. 106. Title VI of chapter 2 of part I of the Foreign Assistance Act of 1961, as amended, which relates to the Alliance for Progress, is amended as follows: (a) Amend section 251, which relates to general*’ authority, as follows: (1) In subsection (b), amend the next to the last sentence thereof by inserting immediately after “reasonable terms” the following: “(including private sources within the United States), the capacity of the recipient country to repay the loan at a reasonable rate of interest,”. (2) In subsection (e) strike out “economical” and substitute “economically”. (3) In subsection (f) strike out “Agency for International Development” and substitute “agency primarily responsible for administering part I”. (4) Add the following new subsection (g): “(g) In order to carry out the policies of this Act, the President shall, when appropriate, assist in promoting the organization, implementation, and growth of the cooperative movement in Latin America 77 Stat. 383as a fundamental measure toward the strengthening of democratic institutions and practices and economic and social development under the Alliance for Progress.” (b) Amend section 252, which relates to authorization, as follows: (1) In the first sentence, strike out “fiscal years 1963 through 1966, not to exceed $600,000,000 for each such fiscal year” and insert in lieu thereof “fiscal years 1963, 1965, and 1966, not to exceed $600,000,000 for each such fiscal year, and for use beginning in the fiscal year 1964, not to exceed $525,000,000,”. (2) Immediately after “1963” the second time it appears therein, insert the following: “and not to exceed $100,000,000 of the funds appropriated pursuant to this section for use beginning in fiscal year 1964”. (3) At the end thereof add the following new sentence: “In order to effectuate the purposes and provisions of sections 102,251, 601, and 602 of this Act, not less than 50 per centum of the loan funds appropriated pursuant to this section for the fiscal years ending June 30, 1965, and June 30, 1966, respectively, shall be available for loans made to encourage economic development through private enterprise.” (c) Amend section 253, which relates to fiscal provisions, by inserting immediately after the first sentence thereof the following new sentence: “All receipts in foreign currencies from loans made under this title or for nonmilitary assistance purposes under the Mutual Security Act of 1954, as amended, or any Act repealed thereby, shall be available, in addition to other funds available for such purposes, for loans on such terms and conditions as the President may specify to carry out the purposes of subsection (g) of section 251 of this title, and the President may, notwithstanding the provisions of this or any other Act, reserve such currencies in such amounts (not to exceed $25,000,000) as he shall determine to be necessary to provide for the programs authorized by said subsection (g).”