Committee on Foreign Relations and Committee
on International Relations

Legislation on Foreign Relations Through 1999, MARCH 2000

VOLUME I-A OF VOLUMES I-A AND I-B

CURRENT LEGISLATION AND RELATED EXECUTIVE ORDERS
U.S. SENATE and U.S. HOUSE OF REPRESENTATIVES

　　Printed for the use of the Committees on Foreign Relations and International Relations of the Senate and the House of Representatives respectively
U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 2000 61-649 CC

　　For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402
　　(II)

FOREWORD

　　This volume of legislation and related material is part of a five volume set of laws and related material frequently referred to by the Committees on International Relations of the House of Representatives and Foreign Relations of the Senate, amended to date and annotated to show pertinent history or cross references.

　　Volumes I (A and B), II, III and IV contain legislation and related material and are republished with amendments and additions at the end of each annual session of Congress. Volume V, which contains treaties and related material, is revised periodically.
　　(III)

EXPLANATORY NOTE

　　The body of statutory law set out in this volume was in force, as amended, at the end of 1999. This volume sets out ''session law'' as originally enacted by Congress and published by the Archivist of the United States as ''slip law'' and later in the series United States Statutes at Large (as subsequently amended, if applicable). Amendments are incorporated into the text and distinguished by a footnote. Session law is organized in this series by subject matter in a manner designed to meet the needs of the Congress.

　　Although laws enacted by Congress in the area of foreign relations are also codified by the Law Revision Counsel of the House of Representatives, typically in title 22 United States Code, those codifications are not positive law and are not, in most instances, the basis of further amendment by the Congress. Cross-references to the United States Code are included as footnotes for the convenience of the reader. All Executive orders and State Department delegations of authority are codified and in force as of January 15, 2000.

　　Corrections may be sent to Dianne Rennack at Library of Congress, Congressional Research Service, Washington D.C., 20540-7460, or by electronic mail at drennack@crs.loc.gov.

ABBREVIATIONS

CFR ......................... Code of Federal Regulations.
EAS ......................... Executive Agreement Series.
F.R ........................... Federal Register.
LNTS ....................... League of Nations Treaty Series.
Stat .......................... United States Statutes at Large.
TIAS ........................ Treaties and Other International Acts Series.
TS ............................ Treaty Series.
UNTS ...................... United Nations Treaty Series.
U.S.C ....................... United States Code.
UST ......................... United States Treaties and Other International Agreements.

The Foreign Assistance Act of 1961, as amended (Public Law 87-195)
CONTENTS

Part I

Chapter 1-Policy; Development Assistance Authorizations
Section 101-General Policy
Section 102-Development Assistance Policy
Section 103-Agriculture, Rural Development, and Nutrition
Section 103A-Agricultural Research
Section 104-Population and Health
Section 105-Education and Human Resources Development
Section 106-Energy, Private Voluntary Organizations, and Selected Development Activities
Section 107-Appropriate Technology
Section 108-Private Sector Revolving Fund
Section 109-Transfer of Funds
Section 110-Cost-Sharing and Funding Limits
Section 111-Development and Use of Cooperatives
Section 113-Integrating Women Into National Economies
Section 116-Human Rights
Section 117-Environment and Natural Resources
Section 118-Tropical Forests
Section 119-Endangered Species
Section 120-Sahel Development Program-Planning
Section 122-General Authorities
Section 123-Private and Voluntary Organizations and Cooperatives in Overseas Development
Section 124-Relatively Least Developed Countries
Section 125-Project and Program Evaluation
Section 126-Development and Illicit Narcotics Production
Section 127-Accelerated Loan Repayments
Section 128-Targeted Assistance
Section 129-Program to Provide Technical Assistance to Foreign Governments and Foreign Central Banks of Developing or Transitional Countries
Section 130-Assistance for Victims of Torture
Chapter 2-Other Programs
Title I-Multilateral and Regional Development Programs
Section 206-Regional Development in Africa
Section 209-Multilateral and Regional Programs
Title II-American Schools and Hospitals Abroad; Prototype Desalting Plant
Section 214-American Schools and Hospitals Abroad
Section 219-Prototype Desalting Plant
Title III-Housing and Other Credit Guaranty Programs
Section 221-Housing Guaranties
Section 222-Authorization
Section 222A-Agricultural and Productive Credit and Self-Help Community Development Programs
Section 223-General Provisions
Section 224-Trade Credit Insurance Program for Central America
Section 225-Trade Credit Insurance Program for Poland
Section 226-Loan Guarantees to Israel Program
Title IV-Overseas Private Investment Corporation
Section 231-Creation, Purpose, and Policy
Section 231A-Additional Requirements
Section 232-Capital of the Corporation
Section 233-Organization and Management
Section 234-Investment Insurance and Other Programs
Section 234A-Enhancing Private Political Risk Insurance Industry
Section 235-Issuing Authority, Direct Investment Authority and Reserves
Section 236-Income and Revenues
Section 237-General Provisions Relating to Insurance Guaranty, and Financing Program
Section 238-Definitions
Section 239-General Provisions and Powers
Section 240-Small Business Development
Section 240A-Reports to the Congress
Section 240B-Prohibition on Noncompetitive Awarding of Insurance Contracts on OPIC Supported Exports
Title V-Disadvantaged Children in Asia
Section 241-Assistance to Certain Disadvantaged Children in Asia
Title IX-Utilization of Democratic Institutions in Development
Section 281-Utilization of Democratic Institutions in Development
Title XII-Famine Prevention and Freedom From Hunger
Section 296-General Provisions
Section 297-General Authority
Section 298-Board for International Food and Agricultural Development
Section 299-Authorization
Section 300-Annual Report
Chapter 3-International Organizations and Programs
Section 301-General Authority
Section 302-Authorization
Section 303-Indus Basin Development
Section 305-Integration of Women
Section 306-Reports on International Organizations
Section 307-Withholding of United States Proportionate Share for Certain Programs of International Organizations
Chapter 5-Contingencies
Section 451-Contingencies
Chapter 6-Central America Democracy, Peace, and Development Initiative
Section 461-Statement of Policy
Section 462-Conditions on Furnishing Assistance
Section 463-Peace Process in Central America
Section 464-Economic Assistance Coordination
Section 465-Authorizations for Fiscal Years 1988 and 1989
Section 466-Definitions .
Chapter 7-Debt-For-Nature Exchanges
Section 461-Definition .
Section 462-Assistance for Commercial Debt Exchanges
Section 463-Eligible Projects
Section 464-Eligible Countries
Section 465-Terms and Conditions
Section 466-Pilot Program for Sub-Saharan Africa
Chapter 8-International Narcotics Control
Section 481-Policy, General Authorities, Coordination, Foreign Police Actions, Definitions, and Other Provisions
Section 482-Authorization
Section 483-Prohibition on Use of Foreign Assistance for Reimbursements for Drug Crop Eradications
Section 484-Requirements Relating to Aircraft and Other Equipment
Section 485-Records of Aircraft Use
Section 486-Reallocation of Funds Withheld from Countries Which Fail to Take Adequate Steps to Halt Illicit
Drug Production or Trafficking
Section 487-Prohibition on Assistance to Drug Traffickers
Section 488-Limitations on Acquisitions of Real Property and Construction of Facilities
Section 489-Reporting Requirements
Section 490-Annual Certification Procedures
Chapter 9-International Disaster Assistance
Section 491-Policy and General Authority
Section 492-Authorization
Section 493-Disaster Assistance-Coordination
Section 494-Disaster Relief Assistance
Section 495-Cyprus Relief and Rehabilitation
Section 495B-Italy Relief and Rehabilitation
Section 495C-Lebanon Relief and Rehabilitation
Section 495D-Romanian Relief and Rehabilitation
Section 495E-Turkey Relief, Rehabilitation, and Reconstruction.
Section 495F-African Rehabilitation and Resettlement
Section 495G-Special Caribbean Hurricane Relief Assistance
Section 495H-Cambodian Disaster Relief Assistance
Section 495I-Assistance for Displaced Persons in Central America
Section 495J-Lebanon Emergency Relief, Rehabilitation, and Reconstruction Assistance
Section 495K-African Famine Assistance
Chapter 10-Development Fund for Africa
Section 496-Long-Term Development Assistance for Sub-Saharan Africa
Section 497-Authorizations of Appropriations for the Development Fund for Africa
Chapter 11-Support for the Economic and Democratic Development of the Independent States of the Former Soviet Union
Section 498-Assistance for the Independent States
Section 498A-Criteria for Assistance to Governments of the Independent States
Section 498B-Authorities Relating to Assistance and Other Provisions
Section 498C-Authorization of Appropriations
Chapter 12-Support for the Economic and Political Independence of the Countries of the South Caucasus and Central Asia
Section 499-United States Assistance to Promote Reconciliation and Recovery from Regional Conflicts
Section 499A-Economic Assistance
Section 499B-Development of Infrastructure
Section 499C-Border Control Assistance
Section 499D-Strengthening Democracy, Tolerance, and the Development of Civil Society
Section 499E-Administrative Authorities
Section 499F-Definitions

Part II

Chapter 1-Policy
Section 501-Statement of Policy
Section 502-Utilization of Defense Articles and Services
Section 502B-Human Rights
Chapter 2-Military Assistance
Section 503-General Authority
Section 504-Authorization
Section 505-Conditions of Eligibility
Section 506-Special Authority
Section 511-Considerations in Furnishing Military Assistance
Section 514-Stockpiling of Defense Articles for Foreign Countries
Section 515-Overseas Management of Assistance and Sales Programs
Section 516-Authority to Transfer Excess Defense Articles
Section 517-Designation of Major Non-NATO Allies
Chapter 3-Foreign Military Sales
Section 524-Reimbursements
Chapter 4-Economic Support Fund
Section 531-Authority
Section 532-Authorizations of Appropriations
Section 533-Emergency Assistance
Section 534-Administration of Justice
Chapter 5-International Military Education and Training
Section 541-General Authority
Section 542-Authorization
Section 543-Purposes
Section 544-Exchange Training
Section 545-Training in Maritime Skills
Section 546- Prohibition on Grant Assistance for Certain High Income Foreign Countries
Chapter 6-Peacekeeping Operations
Section 551-General Authority
Section 552-Authorization of Appropriations
Section 553-Administrative Authorities
Section 554-Data on Costs Incurred in Support of United Nations Peacekeepig Operations
Chapter 7-Air Base Construction in Israel
Section 561-General Authority
Section 562-Authorization and Utilization of Funds
Section 563-Waiver Authorities
Chapter 8-Antiterrorism Assistance
Section 571-General Authority
Section 572-Purposes
Section 573-Limitations
Section 574-Authorizations of Appropriations
Section 575-Administrative Authorities

Part III

Chapter 1-General Provisions
Section 601-Encouragement of Free Enterprise and Private Participation
Section 602-Small Business
Section 603-Shipping on United States Vessels
Section 604-Procurement
Section 605-Retention and Use of Certain Items and Funds
Section 606-Patents and Technical Information
Section 607-Furnishing of Services and Commodities
Section 608-Advance Acquisition of Property
Section 610-Transfer Between Accounts
Section 611-Completion of Plans and Cost Estimates
Section 612-Use of Foreign Currencies
Section 613-Accounting, Valuation, Reporting, and Administration of Foreign Currencies
Section 614-Special Authorities
Section 615-Contract Authority
Section 616-Availability of Funds
Section 617-Termination of Assistance
Section 620-Prohibitions Against Furnishing Assistance
Section 620A-Prohibition on Assistance to Governments Supporting International Terrorism
Section 620C-United States Policy Regarding the Eastern Mediterranean
Section 620D-Prohibition on Assistance to Afghanistan
Section 620E-Assistance to Pakistan
Section 620F-Nuclear Non-Proliferation Policy in South Asia
Section 620G-Prohibition on Assistance to Countries That Aid Terrorist States
Section 620G-Depleted Uranium Ammunition
Section 620H-Prohibition on Assistance to Countries That Provide Military Equipment to Terrorist States
Section 620I-Prohibition on Assistance to Countries That Restrict United States Humanitarian Assistance
Chapter 2-Administrative Provisions
Section 621-Exercise of Functions
Section 621A-Strengthened Management Practices
Section 622-Coordination With Foreign Policy
Section 623-The Secretary of Defense
Section 624-Statutory Officers
Section 625-Employment of Personnel
Section 626-Experts, Consultants, and Retired Officers
Section 627-Detail of Personnel to Foreign Governments
Section 628-Detail of Personnel to International Organizations
Section 629-Status of Personnel Detailed
Section 630-Terms of Detail or Assignment
Section 631-Missions and Staffs Abroad
Section 632-Allocation and Reimbursement Among Agencies
Section 633-Waivers of Certain Laws
Section 633A-Furnishing Information
Section 634-Annual Report
Section 634A-Notification of Program Changes
Section 634B-Classification of Reports
Section 635-General Authorities
Section 636-Provisions on Uses of Funds
Section 637-Administrative Expenses
Section 638-Exclusions
Section 640A-False Claims and Ineligible Commodities
Section 640B-Coordination
Section 640C-Shipping Differential
Chapter 3-Miscellaneous Provisions
Section 641-Effective Date and Identification of Programs
Section 642-Statutes Repealed
Section 643-Saving Provisions
Section 644-Definitions
Section 645-Unexpended Balances
Section 646-Construction
Section 647-Dependable Fuel Supply
Section 648-Special Authorization for Use of Foreign Currencies
Section 650-Use of United States Armed Forces
Section 652-Limitation Upon Exercise of Special Authorities
Section 653-Change in Allocation of Foreign Assistance
Section 654-Presidential Findings and Determinations
Section 655-Annual Military Assistance Report
Section 656-Annual Foreign Military Training Report
Section 660-Prohibiting Police Training
Section 661-Trade and Development Agency
Section 663-Exchanges of Certain Materials
Section 666-Discrimination Against United States Personnel
Section 667-Operating Expenses

Part IV

Enterprise for the Americas Initiative
Section 701-Purpose
Section 702-Definitions
Section 703-Eligibilty for Benefits
Section 704-Reduction of Certain Debt
Section 705-Repayment of Principal
Section 706-Interest on New Obligations
Section 707-Enterprise for the Americas Funds
Section 708-Americas Framework Agreements
Section 709-Enterprise for the Americas Board
Section 710-Annual Reports to the Congress

Part V

Debt Reduction for Developing Countries with Tropical Forests
Section 801-Short Title
Section 802-Findings and Purposes
Section 803-Definitions
Section 804-Establishment of the Facility
Section 805-Eligiblity for Benefits
Section 806-Reduction of Debt Owed, to the United States As a Result of Concessional Loans Under the Foreign
Assistance Act of 1961
Section 807-Reduction of Debt Owed to the United States As a Result of Credits Extended Under Title I of the Agricultural Trade Development and Assistance Act of 1954
Section 808-Authority to Engage in Debt-for-Nature Swaps and Debt Buybacks
Section 809-Tropical Forest Agreement
Section 810-Tropical Forest Fund
Section 811-Board
Section 812-Consultations with the Congress
Section 813-Annual Reports to the Congress

………………………………………

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as ''The Foreign Assistance Act of 1961.''

PART I

Chapter 1-Policy; Development Assistance Authorizations

　　Sec. 101. General Policy.-(a) The Congress finds that fundamental political, economic, and technological changes have resulted in the interdependence of nations. The Congress declares that the individual liberties, economic prosperity, and security of the people of the United States are best sustained and enhanced in a community of nations which respect individual civil and economic rights and freedoms and which work together to use wisely the world's limited resources in an open and equitable international economic system. Furthermore, the Congress reaffirms the traditional humanitarian ideals of the American people and renews its commitment to assist people in developing countries to eliminate hunger, poverty, illness, and ignorance.

　　Therefore, the Congress declares that a principal objective of the foreign policy of the United States is the encouragement and sustained support of the people of developing countries in their efforts to acquire the knowledge and resources essential to development and to build the economic, political, and social institutions which will improve the quality of their lives.

　　United States development cooperation policy should emphasize four principal goals:….

*************

Sec. 620. 785 Prohibition Against Furnishing Assistance.---(a)...(b)...

　　(c) 791 No assistance shall be provided under this Act to the government of any country which is indebted 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)….

　　(e) (1) 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-

　　(A) 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

　　(B) 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

　　(C) 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 international 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 the provisions of this subsection shall not be waived with respect to any country unless the President determines and certifies that such a waiver is important to the national interests of the United States. Such certification shall be reported immediately to Congress.

　　Upon request of the President (within seventy days after such action referred to in subparagraphs (A), (B), or (C) of paragraph (1) of this section), 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 subject 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.

　　(2) Notwithstanding any other provision of law, no court in the United States shall decline on the ground of the federal act of state doctrine to make a determination on the merits giving effect to the principles of international law in a case in which claim of title or other right to property 799 is asserted by any party including a foreign state (or a party claiming through such state) based upon (or traced through) a confiscation or other taking after January 1, 1959, by an act of that state in violation of the principles of international law, including the principles of compensation and the other standards set out in this subsection: Provided, That this subparagraph shall not be applicable (1) in any case in which an act of a foreign state is not contrary to international law or with respect to a claim of title or other right to property acquired pursuant to an irrevocable letter of credit of not more than 180 days duration issued in good faith prior to the time of the confiscation or other taking, or (2) in any case with respect to which the President determines that application of the act of state doctrine is required in that particular case by the foreign policy interests of the United States and a suggestion to this effect is filed on his behalf in that case with the court.800

FOOTNOTES:

　　1 The short title was added by sec. 111 of the FA Appropriation Act, 1962.
　　785 22 U.S.C. 2370.
　　791 Subsec. (c) was amended by sec. 301(d)(2) of the FA Act of 1962. It formerly read as follows:
　　''(c) No assistance shall be provided under this Act to the government of any country which is indebted to any United States citizen for goods or services furnished, where such citizen has exhausted available legal remedies and the debt is not denied or contested by such government.''.
　　799 Sec. 301(d)(2) of the FA Act of 1965 inserted the words ''to property''.
　　800 The words '', or (3) in any case in which the proceedings are commenced after January 1, 1966'', which appeared at this point, were struck out by sec. 301(d)(2) of the FA Act of 1965.
　　Sec. 527 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103-236; 22 U.S.C. 2370a), however, provided the following:
　　''SEC. 527. EXPROPRIATION OF UNITED STATES PROPERTY.
　　''(a) PROHIBITION.-None of the funds made available to carry out this Act, the Foreign Assistance Act of 1961, or the Arms Export Control Act may be provided to a government or any agency or instrumentality thereof, if the government of such country (other than a country described if subsection (d))-
　　''(1) has on or after January 1, 1956-
　　''(A) nationalized or expropriated the property of any United States person,
　　''(B) repudiated or nullified any contract with any United States person, or
　　''(C) taken any other action (such as the imposition of discriminatory taxes or other exactions) which has the effect of seizing ownership or control of the property of any United States person, and
　　''(2) has not, within the period specified in subsection (c), either-
　　''(A) returned the property,
　　''(B) provided adequate and effective compensation for such property in convertible foreign exchange or other mutually acceptable compensation equivalent to the full value thereof, as required by international law,
　　''(C) offered a domestic procedure providing prompt, adequate and effective compensation in accordance with international law, or
　　''(D) submitted the dispute to arbitration under the rules of the Convention for the Settlement of Investment Disputes or other mutually agreeable binding international arbitration procedure.
　　''(b) OTHER ACTIONS.-The President shall instruct the United States Executive Directors of each multilateral development bank and international financial institution to vote against any loan or other utilization of the funds of such bank or institution for the benefit of any country to which assistance is prohibited under subsection (a), unless such assistance is directed specifically to programs which serve the basic human needs of the citizens of that country.
　　''(c) PERIOD FOR SETTLEMENT OF CLAIMS.-The period of time described in subsection (a)(2) is the latest of the following-
　　''(1) 3 years after the date on which a claim was filed,
　　''(2) in the case of a country that has a totalitarian or authoritarian government at the time of the action described in subsection (a)(1), 3 years after the date of installation of a democratically elected government, or
　　''(3) 90 days after the date of enactment of this Act.
　　''(d) EXCEPTED COUNTRIES AND TERRITORIES.-This section shall not apply to any country established by international mandate through the United Nations or to any territory recognized by the United States Government to be in dispute.
　　''(e) RESUMPTION OF ASSISTANCE.-A prohibition or termination of assistance under subsection (a) and an instruction to vote against loans under subsection (b) shall cease to be effective when the President certifies in writing to the Speaker of the House of Representatives and to the Committee on Foreign Relations of the Senate that such government has taken one of the steps described in subsection (a)(2).
　　''(f) REPORTING REQUIREMENT.-Not later than 90 days after the date of enactment of this Act and at the beginning of each fiscal year thereafter, the Secretary of State shall transmit to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate, a report containing the following:
　　''(1) A list of every country in which the United States Government is aware that a United States person has an outstanding expropriation claim.
　　''(2) The total number of such outstanding expropriation claims made by United States persons against each such country.
　　''(3) The period of time in which each such claim has been outstanding.
　　''(4) The status of each case and efforts made by the United States Government and the government of the country in which such claim has been made, to take one or more of the steps described in subsection (a)(2).
　　''(5) Each project a United States Executive Director voted against as a result of the action described in subsection (b).
　　''(g) WAIVER.-The President may waive the prohibitions in subsections (a) and (b) for a country, on an annual basis, if the President determines and so notifies Congress that it is in the national interest to do so.
　　''(h) DEFINITIONS.-For the purpose of this section, the term ''United States person'' means a United States citizen or corporation, partnership, or association at least 50 percent beneficially owned by United States citizens.''