title i—development loan fund

title i—development loan fund Sec. 102. Title I of chapter 2 of part I of the Foreign Assistance Act of 1961, as amended, which relates to the Development Loan Fund, is amended as follows: (a) Section 201(b), which relates to general authority, is amended by striking out the last sentence and inserting in lieu thereof: “Funds made available under this title, except funds made available pursuant to section 205, shall not be used to make loans in more than twenty countries in any fiscal year.” (b) Section 201(d), which relates to rates of interest, is amended by striking out “1964” and substituting “1967” and by striking out “1 per centum” and substituting “2 per centum”. (c) Section 202(a), which relates to authorization, is amended (1) by striking out “and $750,000,000 for each of the fiscal years 1968 and 1969” and substituting “and $450,000,000 for the fiscal year 1968”, and (2) by striking out “June 30, 1969” and substituting “June 30, 1968”. (d) Section 205, which relates to transfers to international lending institutions, is amended as follows: (1) Strike out “only”. (2) Strike out “or the International Finance Corporation” and substitute “the International Finance Corporation, or the Asian Development Bank”. 81 Stat. 448 (e) At the end of such title I, add the following new sections: “Sec. 207. Purposes of Development Assistance.— In furnishing development assistance under this chapter the President shall place appropriate emphasis on— “(a) assuring maximum participation in the task of economic development by the people of less developed countries through the encouragement of strong economic, political, and social institutions needed for a progressive democratic society; “(b) programs directed at enabling a country to meet the food needs of its people from its own resources, including the furnishing of technical knowledge and of resources necessary to increase agricultural productivity: assistance for improved storage, transportation, marketing, and credit facilities (including provision for foreign currency loans to small farmers), cooperatives, water conservation programs, and adaptive research programs; and technological advice: Provided, That relief from the immediate threat of famine, hunger, and malnutrition may be provided by the United States and other countries, and that assistance provided under the Agricultural Trade Development and Assistance Act of 1954, as amended, should complement assistance furnished under this Act; “(c) assisting recipient countries in their efforts to meet increasing needs for trained manpower in their development efforts by improving education planning and research, training teachers and administrators, developing and constructing educational institutions, and using modern educational technology; “(d) developing programs to combat malnutrition, to control and eradicate disease, to clear slums, and to provide adequate and safe drinking water, adequate sewage disposal systems, overall health education, maternal and child care, and voluntary family planning services which shall, where feasible, be included as part of programs of maternal and child care, and other public health assistance; and “(e) other important development activities including assistance for programs to assist industrial development; the growth of free labor unions, cooperatives, and voluntary agencies; improvement of transportation and communication systems; development of capabilities for sound economic planning and public administration; urban development; and modernization of existing laws to facilitate economic development. “Sec. 208. Self-Help Criteria.— In determining whether and to what extent the United States should furnish development assistance to a country under this chapter the President shall take into account— “(a) the extent to which the country is taking such measures as may be appropriate to its needs and capabilities to increase food production and improve the means for storage and distribution of food; 81 Stat. 449 “(b) the extent to which the country is creating a favorable climate for private enterprise and investment, both domestic and foreign; “(c) the extent to which the government of the country is increasing the role of the people in the developmental process; “(d) the extent to which the country’s governmental expenditures are allocated to key developmental areas, including agriculture, health, and education, and not diverted for unnecessary military purposes or to intervention in the affairs of other free and independent nations; “(e) the extent to which the country is willing to make contributions of its own to the projects and programs for which the assistance is provided; “(f) the extent to which the country is making economic, social, and political reforms, such as tax collection improvements and changes in land tenure arrangements, that will enable it to achieve developmental objectives more efficiently and justly; and “(g) the extent to which the country is otherwise showing a responsiveness to the vital economic, political, and social concerns of its people, and demonstrating a clear determination to take effective self-help measures. “Sec. 209. Multilateral and Regional Programs.— (a) Multi-lateral Programs.— The Congress recognizes that planning and administration of development assistance by, or under the sponsorship of, multilateral lending institutions and other international organizations may, in some instances, contribute to the efficiency and effectiveness of that assistance through participation of other donors in the development effort, improved coordination of policies and programs, pooling of knowledge, avoidance of duplication of facilities and manpower, and greater encouragement of self-help performance. “(b) Regional Programs.— It is further the sense of the Congress (1) that where problems or opportunities are common to two or more countries in a region, in such fields as agriculture, education, transportation, communications, power, watershed development, disease control, and establishment of development banks, these countries often can more effectively resolve such problems and exploit such opportunities by joining together in regional organizations or working together on regional programs, (2) that assistance often can be utilized more efficiently in regional programs than in separate country programs, and (3) that to the maximum extent practicable consistent with the purposes of this Act assistance under this Act should be furnished so as to encourage less developed countries to cooperate with each other in regional development programs.”