Pub. L. 89-171, pt. II, ch. 2, sec. 201

Sec. 201. Chapter 2 of part II of the Foreign Assistance Act of 1961, as amended, which relates to military assistance, is amended as follows: (a) Amend section 503(b), which relates to general authority, by striking out the words “in foreign countries”. (b) Amend section 504, which relates to authorization, by striking out “1965” and “$1,055,000,000” in the first sentence and substituting “1966” and “$1,170,000,000”, respectively. (c) Amend section 505, which relates to utilization of assistance, as follows: (1) In subsection (a), strike out the colon and add the following: or for the purpose of assisting foreign military forces in less developed friendly countries (or the voluntary efforts of personnel of the Armed Forces of the United States in such countries) to construct public works and to engage in other activities helpful to the economic and social development of such friendly countries. It is the sense of the Congress that such foreign military forces79 Stat. 657 should not be maintained or established solely for civic action activities and that such civic action activities not significantly detract from the capability of the military forces to perform their military missions and be coordinated with and form part of the total economic and social development effort.” (2) Strike out subsection (b) and redesignate the proviso of subsection (a) as subsection (b). (3) In redesignated subsection (b), strike out “Provided, That except” and substitute “Except”; strike out “or (2)” and substitute “, or (2) for civic action assistance, or (3) ”. (d) Amend section 507, which relates to sales, as follows: (1) In subsection (a), insert the following new sentence between the second and third sentences: “Notwithstanding the provisions of section 644 (m)(2), nonexcess defense articles may be sold under this subsection at the standard price in effect, at the time such articles are offered for sale to the purchasing country or international organization.” (2) In subsection (b), strike out the period at the end of the first proviso, substitute a colon and add the following: Provided further, That the President may, when he determines it to be in the national interest, enter into sales agreements with purchasing countries or international organizations which fix prices to be paid by the purchasing countries or international organizations for the defense articles or defense services ordered. Funds available under this part for financing sales shall be. used to reimburse the applicable appropriations in the amounts required by the contracts which exceed the price so fixed, except that such reimbursement shall not be required upon determination by the President that the continued production of the defense article being sold is advantageous to the Armed Forces of the United States. Payments by purchasing countries or international organizations which exceed the amounts required by such contracts shall be credited to the account established under section 508. To the maximum extent possible, prices fixed under any such sales agreement shall be sufficient to reimburse the United States for the cost of the defense articles or defense services ordered. The President shall submit to the Congress promptly a detailed report concerning any fixed-price sales agreement under which the aggregate cost to the United States exceeds the aggregate amount required to be paid by the purchasing country or international organization.” (e) Amend section 508, which relates to reimbursement as follows: (1) After “this part” the first time it appears, insert “have been or”. (2) After “United States Government,” the first time it appears insert “receipts received from the disposition of evidences of indebtedness and charges (including fees and premiums) or interest collected”. (3) Strike out “the current applicable appropriation” and substitute “a separate fund account”. (4) Strike out “furnishing further military assistance on cash or credit terms” and substitute “financing sales and guaranties, including the overhead costs thereof”. (f) Amend section 509(b), which relates to exchanges and guaranties, by inserting “(excluding contracts with any agency of the United States Government)” in the second sentence between the last word thereof and the period. 79 Stat. 658 (g) Amend section 510(a), which relates to special authority, as follows: (1) In the first sentence strike out “1965” and substitute “1966”. (2) In the second sentence, strike out “1965” and substitute “1966”. (h) Amend section 511, which relates to restrictions on military aid to Latin America, as follows: (1) In subsection (a), strike out “a part may be used during each fiscal year for assistance in implementing a feasible plan for regional defense”, and insert “$25,000,000 may be used for assistance on a cost-sharing basis to an inter-American military force under the control of the Organization of American States”; and amend the proviso to read as follows: “: Provided, That the cost of defense articles supplied for use by elements of the Inter-American Peace Force in the Dominican Republic shall not lie charged against the $55,000,000 limitation provided by this subsection”, (2) Amend subsection (b) to read as follows: “(b) To the maximum extent feasible, military assistance shall be furnished to American Republics in accordance with joint plans (including joint plans relating to internal security problems) approved by the Organization of American States. The President shall submit semiannual reports to the Speaker of the House of Representatives and to the Committee on Foreign Relations of the Senate on the implementation of this subsection.” (i) Amend section 512, which relates to restrictions on military aid to Africa, as follows: (1) Strike out “programs described in section 505(b) of this chapter” and substitute “civic action requirements”. (2) Strike out “1965” and substitute “1966”.