Pub. L. 90-137, 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(c)(3), which relates to an International Private Investment Advisory Council on Foreign Aid, is amended by striking out “5 of the Administrative Expenses Act of 1946 (5 U.S.C. 73b–2)”and substituting “5703 of title 5 of the United States Code”. (b) Section 608(a), which relates to acquisition and use of excess property, is amended by inserting immediately before the first sentence the following: “It is the sense of the Congress that in furnishing assistance under part I excess personal property shall be utilized wherever practicable in lieu of the procurement of new items for United States assisted projects and programs.” (c) Section 610(b), which relates to transfers between accounts, is amended (1) by striking out “510” and substituting “506”, and (2) by striking out “$5,000,000” and substituting “$9,000,000”. (d) Section 611, which relates to completion of plans and cost estimates, is amended by adding at the end thereof the following new subsection: “(e) In addition to any other requirements of this section, no assistance authorized under titles I, II, or VI of chapter 2 or chapter 4 of part I of this Act shall be furnished with respect to any capital assistance project estimated to cost in excess of $1,000,000 until the head of the agency primarily responsible for administering part I of the Act has received and taken into consideration a certification from the81 Stat. 459 principal officer of such agency in the country in which the project is located as to the capability of the country (both financial and human resources) to effectively maintain and utilize the project taking into account among other things the maintenance and utilization of projects in such country previously financed or assisted by the United States.” (e) Section 614(a), which relates to special authorities, is amended by striking out “510” and substituting “506”. (f) Section 620, which relates to prohibitions against furnishing assistance, is amended as follows: (1) Subsection (j) is amended to read as follows: “(j) The President shall consider terminating assistance under this or any other Act to any country which permits, or fails to take adequate measures to prevent, the damage or destruction by mob action of United States property within such country, and fails to take appropriate measures to prevent a recurrence thereof and to provide adequate compensation for such damage or destruction.” (2) Subsection (k) is amended by striking out “510” and substituting “506”. (3) Subsection (n) is amended to read as follows: “(n) No loans, credits, guaranties, or grants or other assistance shall be furnished 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 sells or furnishes to North Vietnam, or which permits ships or aircraft under its registry to transport to or from North Vietnam, any equipment, materials, or commodities, so long as the regime in North Vietnam gives support to hostilities in South Vietnam.” (4) At the end of section 620, add the following new subsections: “(s) In furnishing development assistance under this Act, and in making sales under the Agricultural Trade Development and Assistance Act of 1954, as amended, the President shall take into account (1) the percentage of the recipient or purchasing country’s budget which is devoted to military purposes, and (2) the degree to which the recipient or purchasing country is using its foreign exchange resources to acquire military equipment. When the President finds that development assistance under this Act, or sales under the Agricultural Trade Development and Assistance Act of 1954, as amended, are being diverted to military expenditures, or a recipient or purchasing country is diverting its own resources to unnecessary military expenditures, to a degree which materially interferes with its development, the President shall terminate such assistance and sales until he is assured that such diversion will no longer take place. No other provision of this Act shall be construed to authorize the President to waive the provisions of this subsection. “(t) No assistance shall be furnished under this or any other Act and no sales shall be made under the Agricultural Trade Development and Assistance Act of 1954, in or to any country which has severed or hereafter severs diplomatic relations with the United States or with which the United States has severed or hereafter severs diplomatic relations, unless (1) diplomatic relations have been resumed with such country and (2) agreements for the furnishing of such assistance or the making of such sales, as the case may be, have been negotiates and entered into after the resumption of diplomatic relations with such country. “(u) In any decision to provide or continue to provide any program of assistance to any country under the Foreign Assistance Act of 1961, as amended, there shall be taken into account the status of the country with respect to its dues, assessments, and other obligations to81 Stat. 460 the United Nations; and where such country is delinquent with respect to any such obligations for the purposes of the first sentence of Article 19 of the United Nations Charter, the President shall furnish the Committee on Foreign Relations of the Senate and the Speaker of the House of Representatives a report setting forth the assurance given by the government of the country concerned of paying all of its arrearages and of placing its payments of such obligations on a current basis, or a full explanation of the unusual or exceptional circumstances which render it economically incapable of giving such assurance.”