Pub. L. 89-583, 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) Section 601, which relates to encouragement of free enterprise and private participation, is amended as follows: (1) In subsection (b), immediately after paragraph (1), insert the following new paragraph: “(2) establish an effective system for obtaining adequate information with respect to the activities of, and opportunities for, nongovernmental participation in the development process, and for utilizing such information in the planning, direction, and execution of programs carried out under this Act, and in the coordination of such programs with the ever-increasing developmental activities of nongovernmental United States institutions;”. 80 Stat. 804 (2) In subsection (b), redesignate paragraphs (2), (3), (4), (5), and (6) as paragraphs (3), (4), (5), (6), and (7), respectively. (3) In subsection (b), strike out “and” at the end of paragraph (6), as so redesignated by paragraph (2) of this subsection; strike out the period at the end of paragraph (7), as so redesignated by paragraph (2) of this subsection, and insert in lieu thereof a semicolon; and at the end thereof add the following new paragraph: “(8) utilize wherever practicable the services of United States private enterprise on a cost-plus incentive fee contract basis to provide the necessary skills to develop and operate a specific project or program of assistance in a less developed friendly country or area in any case in which direct private investment is not readily encouraged, and provide where appropriate for the transfer of equity ownership in such project or program to private investors at the earliest feasible time.” (4) Subsection (c) is amended to read as follows: “(c) (1) There is hereby established an International Private Investment Advisory Council on Foreign Aid to be composed of such number of leading American business specialists as may be selected, from time to time, by the Administrator of the Agency for International Development for the purpose of carrying out the provisions of this subsection. The members of the Council shall serve at the pleasure of the Administrator, who shall designate one member to serve as Chairman. “(2) It shall be the duty of the Council, at the request of the Administrator, to make recommendations to the Administrator with respect to particular aspects of programs and activities under this Act where private enterprise can play a contributing role and to act as liaison for the Administrator to involve specific private enterprises in such programs and activities. “(3) The members of the Advisory Council shall receive no compensation for their services but shall be entitled to reimbursement m accordance with section 5 of the Administrative Expenses Act of 1946 (5 U.S.C. 73b–2) for travel and other expenses incurred by them in the performance of their functions under this subsection. “(4) The expenses of the Advisory Council shall be paid by the Administrator from funds otherwise available under this Act.” (b) Section 604, which relates to procurement, is amended as follows: (1) Subsection (c), which relates to procurement of agricultural commodities, is amended by striking out the word “surplus” each time it appears and by inserting “or product thereof available for disposition under the Agricultural Trade Development and Assistance Act of 1954, as amended,” after the word “commodity” the first time it appears. (2) Add the following new subsection: “(e) No funds made available under this Act shall be used for the procurement of any agricultural commodity or product thereof outside the United States when the domestic price of such commodity is less than parity.” (c) Section 608(a), which relates to advance acquisition of property, is amended by inserting “(including personnel costs)” immediately after “costs” the first place it appears in the first sentence. (d) Section 610(b), which relates to transfer between accounts, is amended by striking out the last sentence and inserting in lieu thereof the following: “Not to exceed $5,000,000 of the funds appropriated under section 402 of this Act for any fiscal year may be transferred to and consolidated with appropriations made under section 637(a) of this Act for the same fiscal year, subject to the further limitation 80 Stat. 805that funds so transferred shall be available solely for additional administrative expenses incurred in connection with programs in Vietnam.” (e) Section 612, which relates to the use of foreign currencies, is amended by adding a new subsection as follows: “(c) In addition to funds otherwise available, excess foreign currencies, as defined in subsection (b), may be made available to friendly foreign governments and to private, nonprofit United States organizations to carry out voluntary family planning programs in countries which request such assistance. No such program shall be assisted unless the President has received assurances that in the administration of such program the recipient will take reasonable precautions to insure that no person receives any family planning assistance or supplies unless he desires such services. The excess foreign currencies made available under this subsection shall not, in any one year, exceed 5 per centum of the aggregate of all excess foreign currencies. As used in this subsection, the term ‘voluntary family planning program’ includes, but is not limited to, demographic studies, medical and psychological research, personnel training, the construction and staffing of clinics and rural health centers, specialized training of doctors and paramedical personnel, the manufacture of medical supplies, and the dissemination of family planning information, medical assistance, and supplies to individuals who desire such assistance.” (f) Section 614(a) which relates to special authorities, is amended by adding at the end thereof the following new sentence: “The limitation contained in the preceding sentence shall not apply to any country which is a victim of active Communist or Communist-supported aggression.” (g) Section 614(c), which relates to special authorities, is amended by adding at the end thereof the following: “The President shall promptly and fully inform the Speaker of the House of Representatives and the chairman and ranking minority member of the Committee on Foreign Relations of the Senate of each use of funds under this subsection.” (h) Section 620, which relates to prohibitions against furnishing assistance, is amended as follows: (1) The first sentence of subsection (i) is amended to read as follows: “No assistance shall be provided under this or any other Act, and no sales shall be made under the Agricultural Trade Development and Assistance Act of 1954, to any country which the President determines is engaging in or preparing for aggressive military efforts, or which hereafter is officially represented at any international conference when that representation includes the planning of activities involving insurrection or subversion, which military efforts, insurrection, or subversion, are directed against— “(1) the United States, “(2) any country receiving assistance under this or any other Act, or “(3) any country to which sales are made under the Agricultural Trade Development and Assistance Act of 1954, until the President determines that such military efforts or preparations have ceased, or such representation has ceased, and he reports to the Congress that he has received assurances satisfactory to him 80 Stat. 806that such military efforts or preparations will not be renewed, or that such representation will not be renewed or repeated.” (2) Subsection (k) is amended to read as follows: “(k) Without the express approval of Congress, no assistance shall be furnished under this Act to any country for construction of any productive enterprise with respect to which the aggregate value of assistance to be furnished by the United States will exceed $100,000,000. Except as otherwise provided in section 510, no military assistance shall be furnished to any country under this Act for carrying out any program, with respect to which the aggregate value of assistance to be furnished beginning July 1, 1966, by the United States will exceed $100,000,000 unless such program has been included in the presentation to the Congress during its consideration of authorizations for appropriations under this Act or of appropriations pursuant to authorizations contained in this Act. No provision of this or any other Act shall be construed to authorize the President to waive the provisions of this subsection.” (3) Subsection (l) is amended to read as follows: “(l) The President shall consider denying assistance under this Act to the government of any less developed country which, after December 31, 1966, has failed to enter into an agreement with the President to institute the investment guaranty program under section 221 (b) (1) of this Act, providing protection against the specific risks of inconvertibility under subparagraph (A), and expropriation or confiscation under subparagraph (B), of such section 221(b) (1).” (4) Subsection (n) is amended to read as follows: “(n) In view of the aggression of North Vietnam, no assistance shall be furnished under this Act to any country which has failed to take appropriate steps, not later than sixty days after the date of enactment of the Foreign Assistance Act of 1966— “(A) to prevent ships or aircraft under its registry from transporting to North Vietnam— “(i) any items of economic assistance, “(ii) any items which are, for the purposes of title I of the Mutual Defense Assistance Control Act of 1951, as amended, arms, ammunition and implements of war, atomic energy materials, petroleum, transportation materials of strategic value, or items of primary strategic significance used in the production of arms, ammunition, and implements of war, or “(iii) any other equipment, materials, or commodities; and “(B) to prevent ships or aircraft under its registry from transporting any equipment, materials, or commodities from North Vietnam.” (5) At the end of such section 620, add the following new subsections: “(p) No assistance shall be furnished under this Act to the United Arab Republic unless the President finds and reports within thirty days of such finding to the Committee on Foreign Relations of the Senate and the Speaker of the House of Representatives that such assistance is essential to the national interest of the United States, and further that such assistance will neither directly nor indirectly assist aggressive actions by the United Arab Republic. “(q) No assistance shall be furnished under this Act to any country which is in default, during a period in excess of six calendar months, 80 Stat. 807in payment to the United States of principal or interest on any loan made to such country under this Act, unless such country meets its obligations under the loan or unless the President determines that assistance to such country is in the national interest and notifies the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate of such determination. “(r) No recipient of a loan made under the authority of this Act any part of which is outstanding on or after the date of enactment or this subsection, shall be relieved of liability for the repayment of any part of the principal of or interest on such loan.”