United States Code

ed, held at any one time pursuant to this section shall not exceed $15,000,000 in total original acquisition cost. Property acquired pursuant to the preceding sentence may be furnished (1) pursuant to any provision of subchapter I of this chapter for which funds are authorized for the furnishing of assistance, in which case the separate account established pursuant to this section shall be repaid from funds made available for such provision for all costs incurred, or (2) pursuant to section 2357 of this title, in which case such separate account shall be repaid in accordance with the provisions of that section for all costs incurred.

(b) Property classified as domestic excess property under the Federal Property and Administrative Services Act of 1949, as amended, shall not be transferred to the agency primarily responsible for administering subchapter I of this chapter for use pursuant to the provisions of subchapter I of this chapter or section 2357 of this title unless (1) such property is transferred for use exclusively by an agency of the United States Government, or (2) it has been determined in the same manner as provided for surplus property in section 484 (j) of Title 40, that such property is not needed for donation pursuant to that subsection. The foregoing restrictions shall not apply to the transfer in any fiscal year for use pursuant to the provisions of subchapter I of this chapter of amounts of such property with a total original acquisition cost to the United States Government not exceeding $45,000,000. (Pub. L. 87-195, pt. III, § 608, Sept. 4, 1961, 75 Stat. 441.)

REFERENCES IN TEXT

The Federal Property and Administrative Services Act of 1949, as amended, referred to in the text, is classified to chapter 11C of Title 5, Executive Departments and Government Officers and Employees, chapter 10 of Title 40, Public Buildings, Property, and Works, section 5 and chapter 4 of Title 41, Public Contracts, and chapter 11 of Title 44, Public Printing and Documents.

§ 2359. Special accounts; establishment by recipient countries; deposits; availability and utilization; disposition of unencumbered balances.

(a) In cases where any commodity is to be furnished on a grant basis under sections 2241 and 2242 of this title under arrangements which will result in the accrual of proceeds to the recipient country from the sale thereof, the President shall require the recipient country to establish a Special Account, and

(1) deposit in the Special Account, under such terms and conditions as may be agreed upon, currency of the recipient country in amounts equal to such proceeds;

(2) make available to the United States Government such portion of the Special Account as may be determined by the President to be necessary for the requirements of the United States Government: Provided, That such portion shall not be less than 10 per centum in the case of any country to which such minimum requirement has been applicable under any Act repealed by this chapter; and

(3) utilize the remainder of the Special Account for programs agreed to by the United States Government to carry out the purposes for which new funds authorized by this chapter would them

selves be available: Provided, That whenever funds from such Special Account are used by a country to make loans, all funds received in repayment of such loans prior to termination of assistance to such country shall be reused only for such purposes as shall have been agreed to between the country and the United States Government.

(b) Any unencumbered balances of funds which remain in the Account upon termination of assistance to such country under this chapter shall be disposed of for such purposes as may, subject to approval by Act of the Congress, be agreed to between such country and the United States Government. (Pub. L. 87-195, pt. III, § 609, Sept. 4, 1961, 75 Stat. 442.)

REFERENCES IN TEXT

"This chapter", referred to in the text, was in the original "this Act", meaning Pub. L. 87-195. For classification of Pub. L. 87-195 in the Code, see reference in text note under section 2151 of this title.

§ 2360. Transfer of funds between accounts.

(a) Whenever the President determines it to be necessary for the purposes of this chapter, not to exceed 10 per centum of the funds made available for any provision of this chapter may be transferred to, and consolidated with, the funds made available for any other provision of this chapter, and may be used for any of the purposes for which such funds may be used, except that the total in the provision for the benefit of which the transfer is made shall not be increased by more than 20 per centum of the amount of funds made available for such provision.

(b) The authority contained in this section and in sections 2261, 2318 and 2364 of this title, shall not be used to augment appropriations made available pursuant to sections 2396(g) (1) and 2397 of this title or used otherwise to finance activities which normally would be financed from appropriations for administrative expenses. (Pub. L. 87-195, pt. III,

§ 610, Sept. 4, 1961, 75 Stat. 442, amended Pub. L. 87-565, pt. III, § 301(a), Aug. 1, 1962, 76 Stat. 260.) REFERENCES IN TEXT

AMENDMENTS

1962-Pub. L. 87-565 designated existing provisions as subsec. (a) and added subsec. (b).

§ 2361. Completion of plans and cost estimates. (a) Restriction on agreements or grants.

No agreement or grant which constitutes an obligation of the United States Government in excess of $100,000 under section 200 of Title 31 shall be made for any assistance authorized under sections 2161-2165, 2171-2176, 2191--2193, 2241 and 2242 of this title

(1) if such agreement or grant requires substantive technical or financial planning, until engineering, financial, and other plans necessary to carry out such assistance, and a reasonably firm estimate of the cost to the United States Government of providing such assistance, have been completed; and

(2) if such agreement or grant requires legislative action within the recipient country, unless such legislative action may reasonably be anticipated to be completed in time to permit the orderly accomplishment of the purposes of such agreement or grant.

(b) Plans for water or related land resource construction projects; computation of benefits and costs.

Plans required under subsection (a) of this section for any water or related land resource construction project or program shall include a computation of benefits and costs made insofar as practicable in accordance with the procedures set forth in the Memorandum of the President dated May 15, 1962, with respect to such computations.

To the maximum extent practicable, all contracts for construction outside the United States made in connection with any agreement or grant subject to subsection (a) of this section shall be made on a competitive basis.

(d) Engineering, financial, and other plans.

Subsection (a) of this section shall not apply to any assistance furnished for the sole purpose of preparation of engineering, financial, and other plans. (Pub. L. 87-195, pt. III, § 611, Sept. 4, 1961, 75 Stat. 442, amended Pub. L. 87-565, pt. III, § 301(b), Aug. 1, 1962, 76 Stat. 260; Pub. L. 88-205, pt. III, § 301 (c), Dec. 16, 1963, 77 Stat. 385.)

AMENDMENTS

1963-Subsec. (b). Pub. L. 88-205 substituted "the Memorandum of the President dated May 15, 1962," for "circular A-47 of the Bureau of the Budget." 1962 Subsec. (a). Pub. L. 87-565 included sections 2191-2193 of this title within the restriction.

§ 2362. Use of foreign currencies.

(a) Except as otherwise provided in this chapter or other Acts, foreign currencies received either (1) as a result of the furnishing of nonmilitary assistance under the Mutual Security Act of 1954, as mended, or any Act repealed thereby, and unobligated on September 3, 1961, or (2) on or after September 4, 1961, as a result of the furnishing of nonmilitary assistance under the Mutual Security Act of 1954, as amended, or any Act repealed thereby, or (3) as a result of the furnishing of assistance under subchapter I of this chapter, which are in excess of amounts reserved under authority of section 2455(d) of this title or any other Act relating to educational and cultural exchanges, may be sold by the Secretary of the Treasury to agencies of the United States Government for payment of their obligations outside the United States, and the United States dollars received as reimbursement shall be deposited into miscellaneous receipts of the Treasury. Foreign currencies so received which are in excess of the amounts so reserved and of the requirements of the United States Government in payment of its obligations outside the United States, as such requirements may be determined from time to time by the President, shall be available for the authorized purposes of subchapter I of this chapter in such amounts as may be specified from time to time in appropriation Acts.

(b) In order to provide for the foreign currency needs of United States citizens for travel or other purposes, the Secretary of the Treasury may make available for sale for United States dollars to such citizens, at United States embassies or other convenient locations, foreign currencies acquired by the United States through operations under this chapter, the Mutual Security Act of 1954, as amended, or any Act repealed thereby, or the Agricultural Trade Development and Assistance Act of 1954, as amended, which (1) he determines to be in excess of the needs of departments and agencies of the United States for such currencies, and (2) are not prohibited from such use or committed to other uses by agreement heretofore entered into with another country. United States dollars received from the sale of foreign currencies under this subsection shall be deposited in the Treasury as miscellaneous receipts. (Pub. L. 87-195, pt. III, § 612, Sept. 4, 1961, 75 Stat. 443, amended Pub. L. 88–205, pt. III, § 301(d), Dec. 16, 1963, 77 Stat. 385.)

REFERENCES IN TEXT

The Mutual Security Act of 1954, as amended, referred to in the text, was classified to chapter 24 of this title, and was repealed, with certain exceptions, by section 642 (a) (2) of Pub. L. 87-195.

The Agricultural Trade Development and Assistance Act of 1954, as amended, referred to in subsec. (b), is classified to chapter 41 of Title 7, Agriculture.

AMENDMENTS

1963-Subsec. (b). Pub. L. 88-205 designated existing provisions as subsec. (a), and added subsec. (b).

DELEGATION OF FUNCTIONS

Functions of the President under the second sentence of this section delegated to the Secretary of the Treasury, see section 301 of Ex. Ord. No. 10973, Nov. 6, 1961, 26 F.R. 10469, set out as a note under section 2381 of this title.

§ 2363. Accounting, valuation, and reporting of foreign currencies.

(a) Responsibility of Secretary of the Treasury; regulations.

Under the direction of the President, the Secretary of the Treasury shall have responsibility for valuation and central accounting with respect to foreign credits (including currencies) owed to or owned by the United States. In order to carry out such responsibility the Secretary shall issue regulations binding upon all agencies of the Government. (b) Establishment of exchange rates.

The Secretary of the Treasury shall have sole authority to establish for all foreign currencies or credits the exchange rates at which such currencies are to be reported by all agencies of the Government.

(c) Semi-annual reports to Treasury Department by agencies and departments; reports to Congress. Each agency or department shall report to the Secretary of the Treasury an inventory as of June 30, 1961, showing the amount of all foreign currencies acquired without payment of dollars on hand of each of the respective countries, and the Secretary of the Treasury shall consolidate these reports as of the same date and submit to the Congress this

consolidated report broken down by agencies, by countries, by units of foreign currencies and their dollar equivalent. Thereafter, semiannually, similar reports are to be submitted by the agencies to the Treasury Department and then presented to the Congress by the Secretary of the Treasury. (Pub. L. 87-195, pt. III, § 613, Sept. 4, 1961, 75 Stat. 443.)

§ 2364. Special authorities.

(a) Use of funds and furnishing of assistance upon determination that authorization is important to security of United States.

The President may authorize in each fiscal year the use of funds made available for use under this chapter and the furnishing of assistance under section 2318 of this title in a total amount not to exceed $250,000,000 and the use of not to exceed $100,000,000 of foreign currencies accruing under this chapter or any other law, without regard to the requirements of this chapter, any law relating to receipts and credits accruing to the United States, any Act appropriating funds for use under this chapter, or the Mutual Defense Assistance Control Act of 1951, in furtherance of any of the purposes of such Acts, when the President determines that such authorization is important to the security of the United States. Not more than $50,000,000 of the funds available under this subsection may be allocated to any one country in any fiscal year. (b) United States obligations in West Germany.

Whenever the President determines it to be important to the national interest, he may use funds available for the purposes of sections 2241 and 2242 of this title in order to meet the responsibilities or objectives of the United States in Germany, including West Berlin, and without regard to such provisions of law as he determines should be disregarded to achieve this purpose.

The President is authorized to use amounts not to exceed $50,000,000 of the funds made available under this chapter pursuant to his certification that it is inadvisable to specify the nature of the use of such funds, which certification shall be deemed to be a sufficient voucher for such amounts. (Pub. L. 87195, pt. III, § 614, Sept. 4, 1961, 75 Stat. 444.)

REFERENCES IN TEXT

The Mutual Defense Assistance Control Act of 1951, referred to in subsec. (a), is classified to chapter 20A of this title.

§ 2365. Contract authority.

Provisions of this chapter authorizing the appropriation of funds shall be construed to authorize the granting in any appropriation Act of authority to enter into contracts, within the amounts so authorized to be appropriated, creating obligations in advance of appropriations. (Pub. L. 87-195, pt. III, 615, Sept. 4, 1961, 75 Stat. 444.)

REFERENCES IN TEXT

§ 2366. Availability of funds.

Except as otherwise provided in this chapter, funds shall be available to carry out the provisions of this chapter as authorized and appropriated to the President each fiscal year. (Pub. L. 87-195, pt. III, § 616, Sept. 4, 1961, 75 Stat. 444.)

REFERENCES IN TEXT

ADMINISTRATION OF FUNDS

Pub. L. 87-329, title I, § 112, Sept. 30, 1961, 75 Stat. 719, provided that: "It is the sense of Congress that in the administration of these funds [appropriated under the Foreign Assistance and Related Agencies Appropriation Act, 1962] great attention and consideration should be given to those nations which share the view of the United States on the world crisis."

§ 2367. Termination of assistance; availability of funds for winding up programs.

Assistance under any provision of this chapter may, unless sooner terminated by the President, be terminated by concurrent resolution. Funds made available under this chapter shall remain available for a period not to exceed twelve months from the date of termination of assistance under this chapter for the necessary expenses of winding up programs related thereto. (Pub. L. 87-195, pt. III, § 617, Sept. 4, 1961, 75 Stat. 444.)

REFERENCES IN TEXT

§ 2368. Use of settlement receipts.

United States dollars directly paid to the United States under the Agreement Between the United States of America and Japan Regarding the Settlement of Postwar Economic Assistance to Japan may be appropriated or otherwise made available to the President in any appropriation Act, within the limitations of subchapter I of this chapter, to carry out the provisions of that subchapter. (Pub. L. 87-195, pt. III, § 618, as added Pub. L. 87-565, pt. III, § 301 (c), Aug. 1, 1962, 76 Stat. 260.)

REPEALS

A former section 618 of Pub. L. 87-195, relating to economic assistance to Latin America, was repealed by section 301 (c) of Pub. L. 87-565.

§ 2369. Assistance to newly independent countries.

Assistance under subchapter I of this chapter to newly independent countries shall, to the maximum extent appropriate in the circumstances of each case, be furnished through multilateral organizations or in accordance with multilateral plans, on a fair and equitable basis with due regard to selfhelp. (Pub. L. 87-195, pt. III, § 619, Sept. 4, 1961, 75 Stat. 444.)

§ 2370. Prohibitions against furnishing assistance. (a) Cuba; embargo on all trade.

(1) No assistance shall be furnished under this chapter to the present government of Cuba; nor shall any such assistance be furnished to any country which furnishes assistance to the present government of Cuba unless the President determines that such assistance is in the national interest of the United States. As an additional means of implementing and carry into effect the policy of the preceding sentence, the President is authorized to establish and maintain a total embargo upon all trade between the United States and Cuba.

(2) Except as may be deemed necessary by the President in the interest of the United States, no assistance shall be furnished under this chapter to any government of Cuba, nor shall Cuba be entitled to receive any quota authorizing the importation of Cuban sugar into the United States or to receive any other benefit under any law of the United States, until the President determines that such government has taken appropriate steps according to international law standards to return to United States citizens, and to entities not less than 50 per centum beneficially owned by United States citizens, or to provide equitable compensation to such citizens and entities for property taken from such citizens and entities on or after January 1, 1959, by the Government of Cuba.

(3) No funds authorized to be made available under this chapter (except under section 2174 of this title) shall be used to furnish assistance to any country which has failed to take appropriate steps, not later than 60 days after December 16, 1963

(A) to prevent ships or aircraft under its registry from transporting to Cuba (other than to United States installations in Cuba)—

(1) 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,

so long as Cuba is governed by the Castro regime; and

(B) to prevent ships or aircraft under its registry from transporting any equipment, materials, or commodities from Cuba (other than from United States installations in Cuba) so long as Cuba is governed by the Castro regime.

(b) Presidential determination of domination or control by international Communist movement. No assistance shall be furnished under this chapter to the government of any country unless the President determines that such country is not dominated or controlled by the international Communist movement.

No assistance shall be provided under this chapter to the government of any country which is in

debted to any United States citizen or person for goods or services furnished or ordered where (i) such citizen or person has exhausted available legal remedies, which shall include arbitration, or (ii) the debt is not denied or contested by such government, or (iii) such indebtedness arises under an unconditional guaranty of payment given by such government, or any predecessor government, directly or indirectly, through any controlled entity: Provided, That the President does not find such action contrary to the national security.

(d) Productive enterprises competing with United States enterprise; conditions on assistance; import controls; waiver of restriction by President. No assistance shall be furnished under section 2161 of this title of this Act for construction or operation of any productive enterprise in any country where such enterprise will compete with United States enterprise unless such country has agreed that it will establish appropriate procedures to prevent the exportation for use or consumption in the United States of more than twenty per centum of the annual production of such facility during the life of the loan. In case of failure to implement such agreement by the other contracting party, the President is authorized to establish necessary import controls to effectuate the agreement. The restrictions imposed by or pursuant to this subsection may be waived by the President where he determines that such waiver is in the national security interest. (e) Nationalization, expropriation or seizure of property of United States citizens, or taxation or other exaction having same effect; failure to compensate or to provide relief from taxes, exactions, or conditions; report on full value of property by Foreign Claims Settlement Commission.

The President shall suspend assistance to the government of any country to which assistance is provided under this or any other Act when the government of such country or any government agency or subdivision within such country on or after January 1, 1962

(1) has nationalized or expropriated or seized ownership or control of property owned by any United States citizen or by any corporation, partnership, or association not less than 50 per centum beneficially owned by United States citizens, or

(2) has taken steps to repudiate or nullify existing contracts or agreements with any United States citizen or any corporation, partnership, or association not less than 50 per centum beneficially owned by United States citizens, or

(3) has imposed or enforced discriminatory taxes or other exactions, or restrictive maintenance or operational conditions, or has taken other actions, which have the effect of nationalizing, expropriating, or otherwise seizing ownership or control of property so owned,

and such country, government agency, or government subdivision fails within a reasonable time (not more than six months after such action, or, in the event of a referral to the Foreign Claims Settlement Commission of the United States within such period as provided herein, not more than twenty days after the report of the Commission is received) to take appropriate steps, which may include arbitration, to discharge its obligations under interna

tional law toward such citizen or entity, including speedy compensation for such property in convertible foreign exchange, equivalent to the full value thereof, as required by international law, or fails to take steps designed to provide relief from such taxes, exactions, or conditions, as the case may be; and such suspension shall continue until the President is satisfied that appropriate steps are being taken, and no other provision of this chapter shall be construed to authorize the President to waive the provisions of this subsection.

Upon request of the President (within seventy days after such action referred to in paragraphs (1), (2), or (3) of this subsection), the Foreign Claims Settlement Commission of the United States (established pursuant to Reorganization Plan No. 1 of 1954, 68 Stat. 1279) is hereby authorized to evaluate expropriated property, determining the full value of any property nationalized, expropriated, or seized, or subjected to discriminatory or other actions as aforesaid, for purposes of this subsection and to render an advisory report to the President within ninety days after such request. Unless authorized by the President, the Commission shall not publish its advisory report except to the citizen or entity owning such property. There is hereby authorized to be appropriated such amount, to remain available until expended, as may be necessary from time to time to enable the Commission to carry out expeditiously its functions under this subsection.

(f) Prohibition against assistance to Communist countries; conditions for waiver of restriction by President; enumeration of Communist countries.

No assistance shall be furnished under this chapter, as amended, (except section 2174(b) of this title) to any Communist country. This restriction may not be waived pursuant to any authority contained in this chapter unless the President finds and promptly reports to Congress that: (1) such assistance is vital to the security of the United States; (2) the recipient country is not controlled by the international Communist conspiracy; and (3) such assistance will further promote the independence of the recipient country from international communism. For the purposes of this subsection, the phrase "Communist country" shall include specifically, but not be limited to, the following countries: Peoples Republic of Albania, Peoples Republic of Bulgaria,

Peoples Republic of China,

Czechoslovak Socialist Republic,

German Democratic Republic (East Germany), Estonia,

Hungarian Peoples Republic,

Latvia,

Lithuania,

North Korean Peoples Republic,

North Vietnam,

Outer Mongolia-Mongolian Peoples Republic, Polish Peoples Republic,

Rumanian Peoples Republic,

Tibet,

Federal Peoples Republic of Yugoslavia, Cuba, and

Union of Soviet Socialist Republics.

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(g) Use of assistance funds to compensate owners for expropriated or nationalized property. Notwithstanding any other provision of law, no monetary assistance shall be made available under this chapter to any government or political subdivision or agency of such government which will be used to compensate owners for expropriated or nationalized property and, upon finding by the President that such assistance has been used by any government for such purpose, no further assistance under this chapter shall be furnished to such government until appropriate reimbursement is made to the United States for sums so diverted.

(h) Regulations and procedures to insure aid is not used contrary to the best interests of the United States.

The President shall adopt regulations and establish procedures to insure that United States foreign aid is not used in a manner which, contrary to the best interests of the United States, promotes or assists the foreign aid projects or activities of the Communist-bloc countries.

(i) Denial of assistance to countries preparing for aggressive military efforts.

No assistance shall be provided under this chapter 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 directed against

(1) the United States,

(2) any country receiving assistance under this chapter 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 and he reports to the Congress that he has received assurances satisfactory to him that such military efforts or preparations will not be renewed. This restriction may not be waived pursuant to any authority contained in this chapter.

(j) Indonesia to receive assistance if essential to national interest of United States; reports to Congress.

No assistance under this chapter shall be furnished to Indonesia unless the President determines that the furnishing of such assistance is essential to the national interest of the United States. The president shall keep the Foreign Relations Committee and the Appropriations Committee of the Senate and the Speaker of the House of Representatives fully and currently informed of any assistance furnished to Indonesia under this chapter.

(k) Maximum amount of assistance to individual countries.

Until the enactment of the Foreign Assistance Act of 1964 or other general legislation, during the calendar year 1964, authorizing additional appropriations to carry out programs of assistance under this chapter, no assistance shall be furnished under this chapter to any country for construction of any productive enterprise with respect to which the aggregate value of such assistance to be furnished by the United States will exceed $100,000,000. No

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