Pub. L. 89-583, 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) Section 504(a), which relates to authorization, is amended to read as follows: “(a) In addition to such amounts as may be otherwise authorized to support Vietnamese forces and other free world forces in Vietnam, there is authorized to be appropriated to the President to carry out the purposes of this part (excluding the support of Vietnamese forces and other free world forces in Vietnam) not to exceed $875,000,000 for the fiscal year 1967: Provided, That funds made available for assistance under this chapter (other than training in the United States) shall not be used to furnish such assistance to more than forty countries in any fiscal year. Amounts appropriated under this subsection are authorized to remain available until expended.” 80 Stat. 803 (b) Section 506, which relates to conditions of eligibility, is amended by adding at the end thereof the following new subsection: “(e) From and after the sixtieth day after the date of enactment of the Foreign Assistance Act of 1966, no assistance shall be provided under this chapter to any country to which sales are made under title I of the Agricultural Trade Development and Assistance Act of 1954 until such country has entered into an agreement to permit the use of foreign currencies accruing to the United States under such title I to procure equipment, materials, facilities, and services for the common defense including internal security, in accordance with the provisions of section 104(c) of such title I.” (c) Section 508, which relates to reimbursements, is amended by adding at the end thereof the following new sentence: “Such amounts of the appropriations made available under this part (including unliquidated balances of funds heretofore obligated for financing sales and guarantees) as may be determined by the President shall be transferred to, and merged with, the separate fund account.” (d) Section 510(a), which relates to special authority, is amended by striking out “1966” each place it appears and inserting in lieu thereof in each such place “1967”. (e) Section 512, which relates to restrictions on military aid to Africa, is amended by striking out “fiscal year 1966” and inserting in lieu thereof “each fiscal year”. (f) At the end of such chapter 2, add the following new section: “Sec. 514. Administration of Sales and Exchange Programs Involving Defense Articles and Services.—(a) Programs for the sale or exchange of defense articles or defense services under this chapter shall be administered so as to encourage regional arms control and disarmament agreements and so as to discourage arms races. “(b) In order to further encourage regional arms control and disarmament agreements and discourage arms races in the American Republics, notwithstanding the provisions of section 511(a) of this Act, the total value of military assistance and sales (other than training) under this Act or in accordance with section 7307 of title 10, United Suites Code, for American Republics in any fiscal year shall not exceed $85,000,000, of which $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: Provided, That the cost of defense articles supplied for use by elements of the Inter-American Peace Force in the Dominican Republic shall not be charged against the $85,000,000 limitation provided by this subsection.”