Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
4520428
label
Agency for International Development
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
4520428
sourceUrl
contentType
document
title
Agency for International Development
citationUrl
collections
Philip W. Buchen Files
Philip Buchen's General Subject Files
subjects
U.S. Agency for International Development. (04/01/1999 - )
Foreign aid
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
4520428
coverageEndDate
logicalDate
1976-08-01
month
8
year
1976
coverageStartDate
logicalDate
1976-07-01
month
7
year
1976
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
1f907c5d5816ad4b
ocrText
The original documents are located in Box 1, folder "Agency for International
Development" of the Philip Buchen Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
LEGAL OPINION
Constitutionality of Committee Approval Requirements
The Conference Report accompanying H.R. 12203, the "Foreign
Assistance and Related Programs Appropriation Act, 1976,
and the period ending September 30, 1976" (hereinafter "the
Act"), contains a Senate amendment, reported in technical
disagreement, that requires the "approval" of the Appropriations
Committees of both Houses of the Congress before funds can be
obligated for "activities, programs, projects, type of material
assistance, countries, or other operations not justified or
in excess of the amount justified to the Appropriations
Committees.
1/ H. Rep. No. 94-1006, 94th Cong. 2nd Sess. 8-9 (1976)
The Conference Report states that "any activity, program,
project, type of material assistance, or other operation
shall be deemed to have been justified" if it was included
by country and by amount in the fiscal year 1976 Congressional
Presentation documents.
This requirement would apply to all funds appropriated by
the Act for the following appropriation categories:
'Food and nutrition, Development Assistance, 'Population
planning and health, Development Assistance, 'Education
and human resources development, Development Assistance,'
'Technical assistance, energy, research, reconstruction,
and selected development problems, Development Assistance,'
'International organizations and programs,' 'United Nations
Environment Fund, 'American schools and hospitals abroad,
'Indus Basin Development Fund, 'International narcotics
control, 'African development program,' 'Security supporting
assistance,' 'Operating Expenses of the Agency for Inter-
national Development,' 'Middle East Special requirements
fund, 'Military assistance, 'International military educa-
tion and training, 'Inter-American Foundation,' 'Peace
Corps, 'Migration and refugee assistance,' or 'Assistance
to refugees from the Soviet Union or other Communist countries
in Eastern Europe.
GERALD FORD LIBRARY
- 2 -
In its practical application, this provision means that
funds previously authorized and appropriated for the general
purposes enumerated in the Act, e.g. Food and Nutrition,
Population Planning and Health, cannot be obligated for spe-
cific projects and activities not included or in excess of
the amounts included in the Congressional Presentation
documents without the approval of the appropriations committees.
As a matter of procedure, the Conference Report states
that when such increases are submitted to the committees,
"constructive consent will be implied if no objection is raised
within fifteen days after notification of the proposed repro-
gramming."
Committee approval or veto requirements represent a relatively
recent phenomenon in the legislative process. Nevertheless,
because they attack the very heart of the separation of powers
doctrine, a considerable body of constitutional law has evolved
regarding their validity.
In a 1966 memorandum requested by the Senate Committee on
Foreign Relations, which was considering the constitutional
questions which might arise with respect to a proposed amend-
ment to the Foreign Assistance Act of 1961 which would have
provided that development loans not be made in more than 10
countries, and that technical assistance and development grants
not be made in more than 40 countries, unless such action was
approved by the authorizing committees within a special period
of time, the Office of the Legislative Counsel of the Senate
summarized the constitutional objections to such committee
approval provisions:
" (1) These provisions vest an executive function
upon a legislative body in violation of the
principle of separation of powers described in
Articles I and II of the Constitution. They involve
participation by congressional committees in the
administration and implementation of laws, which
is a purely executive function.
(2) The Congress may not legally delegate to its
committees or members the capacity to pass legis-
lation, a function which the Constitution contemplates
the Congress itself, as an entity, should exercise.
FORD & LIBRARY GERALD
- 3 -
(3) These provision exclude the President from
his constitutional role in the legislative
process as required by Article I, section 7 of
the Constitution under which all legislation must
be presented to the President for his specific
approval or disapproval." Memorandum for Committee
on Foreign Relations, United States Senate, Office
of the Legislative Counsel (June 1, 1966).
Although the memorandum of the Legal Counsel did not draw a
conclusion regarding the constitutionality of the provision
in question, other than to observe that Presidents had relied
on each of the above reasons in vetoing acts containing
similar provisions, the weight of evidence indicating that such
provisions are unconstitutional is far from inconclusive.
Constitutional commentators have concluded with near unanimity
that efforts to bestow governmental control to Congressional
Committees by providing statutory authority for a "committee
veto", which conditions powers created in the Executive Branch
with a requirement that an administrator gain the approval of
one or more committees before that power is exercised, "present
the clearest case of a device which is constitutionally
invalid." 4/ Similarly, Attorneys General of the United States
have consistently held that statutes of this type violate the
fundamental doctrine of separation of powers enunciated in
Articles I and II of the Constitution.2 For example, in 1965
President Johnson vetoed the Military Construction Authorization
Act of 1966 because it contained a provision which would have
required the President to report any proposed closing of a
military base and delay the proposed action for a period of 120
days following such report. Although President Johnson acknow-
ledged the distinction between a notification requirement and a
statutory committee approval provision, he recognized that even
the less offensive "notification and wait" requirement was
4/ Watson, Congress Steps Out: A Look at Congressional
Control of the Executive, 63 Calif. L. Rev. 983, 1053
(July 1975). See also Ginnane, The Control of Federal
Administration by Congressional Resolutions and Committees,
66 Harv. L. Rev. 569, 605 (1953) ; Small, The Committee Veto;
Its Current Use and Appraisals of Its Validity, Library of
Congressional Research Service. Document JK 1015 C (January 16,
1967). But see Cooper and Cooper, The Legislative Veto and the
Constitution, 30 Geo. Wash. L. Rev. 417 (1962).
37 Op. Att'y Gen. 56 (1933) ; 39 Op. Att'y Gen. 61 (1937)
41 Op. Att'y Gen. 230 (1955) ; Id. at 300 (1957). But see
6 Op. Att'y Gen. 680 (1854)
FORD
GERALD
LIBRARY
- 4 -
constitutionally repugnant, and noted that:
"
Attorneys General in unbroken succession since
at least the time of President Wilson have advised
their Chief Executives that so-called "come into
agreement" clauses, requiring approval of executive
action by legislative committees, are unconstitutional."
Public Papers of the Presidents: Lyndon B. Johnson,
1965, at 908.
The Constitutional doctrine of separation of powers upon
which these provisions have been held invalid is founded in
Articles I, II and III of the Constitution. Article I, Section 1
provides that "All legislative Powers herein granted shall be
vested in a Congress of the United States, which shall consist of
a Senate and House of Representatives". Article II, Sections 1
and 3 provide that "The executive power shall be vested in a
President of the United States of America.
...
he shall take
care that the laws be faithfully executed." These provisions,
together with Article III, which vests the judicial power in an
independent judiciary, prevent the concentration of all govern-
mental power in a single organ of the national government.
The fundamental nature of the separation of powers doctrine
to our system of government, which is clearly contradicted
by a requirement that Congressional Committees approve executive
actions, was plainly stated by Chief Justice Taft writing for
the Court in Myers V. United States:
"The general doctrine of our Constitution then is,
that the executive power of the nation is vested
in the President; subject only to
the
participation
of the Senate in the appointment of officers, and in
the making. of treaties.
and7 the right of the
legislature to declare war and grant letters of
marque and reprisal.
With these exceptions, the executive power of the
United States is completely lodged in the President."
272 U.S. 52, 139 (1926).
Similarly, in Kilbourn V. Thompson, a case involving the
authority of the legislative branch to exercise certain judicial
functions, the Supreme Court emphasized the fundamental importance
of the separation of powers doctrine to our constitutional form
of government.
GERALD FDRD VIBRARY
- 5 -
"It is believed to be one of the chief merits
of the American system of written constitutional
law, that all the powers intrusted to government,
whether State or national, are divided into the
three grand departments, the executive, the legis-
lative, and the judicial. That the functions appro-
priate to each of these branches of government shall
be vested in a separate body of public servants, and
that the perfection of the system requires that the
lines which separate and divide these departments
shall be broadly and clearly defined.
It is also essential to the successful working of
this system that the persons intrusted with power
in any one of these branches shall not be permitted
to encroach upon the powers confided to the others,
but that each shall by the law of its creation be
limited to the exercise of the powers appropriate
to its own department and no other.
In the main, however, that instrument (the
Constitution) the model on which are constructed the
fundamental laws of the States, has blocked out
with singular precision, and in bold lines, in its
three primary articles, the allotment of power to
the executive, the legislative, and the judicial
departments of the government. It also remains true,
as a general rule, that the powers confided by the
Constitution to one of these departments cannot be
exercised by another.
It may be said that these are truisms which need no
repetition here to give them force. But while the
experience of almost a century has in general shown
a wise and commendable forbearance in each of these
branches from encroachments upon the others, it is not
to be denied that such attempts have been made, and it is
believed not always without success." 103 U.S. 168, 190-
191 (1880).
The precise question of the constitutionality of a committee
"approval" or "veto" requirement, however, has not been directly
considered by the Federal Courts. One commentator suggests
that this may result "from the fact that the principal effect
of these procedures is not identifiable injury to individuals as
such, but rather a general shift in the focus of governmental
power and the operation of the governmental system
the
STHERS FORD LIBRARY
- 6 -
political question doctrine may prompt the judiciary to shy
away from these questions of distribution of power between the
executive and legislative branches. Thus, this may be an area
where any restraint must come from Congress itself. 6
Nevertheless, case law involving questions relating to the
separation of powers doctrine leaves no doubt that the propo-
sition that statutory provisions subjecting executive action
to the approval or disapproval of congressional committees is
unconstitutional. The principal case upon which this conclusion
is based, and which has been relied on by several Attorneys General
in opinions dealing with statutory committee approval require-
ments, is Springer V. Philippine Islands, 277 U.S. 189 (1927)
In declaring invalid certain acts of the Philippine legislature
vesting executive power in the legislature, the Court said:
"It may be stated then, as a general rule inherent
in the American constitutional system, that, unless
otherwise expressly provided or incidental to the
powers conferred, the legislature cannot exercise
either executive or judicial power; the executive
cannot exercise either legislative or judicial power;
the judiciary cannot exercise either executive or
legislative power.
...
Legislative power, as distinguished from executive
power, is the authority to make laws, but not to
enforce them or appoint the agents charged with the
duty of such enforcement. The latter are executive
functions. It is unnecessary to enlarge further upon
the general subject, since it has so recently received
the full consideration of this Court. Meyers V. United
States.
Not having the power of appointment, unless expressly
granted or incidental to its powers, the legislative
cannot engraft executive duties upon a legislative
office " Supra at 202.
6/ Watson, supra note 4, at 989 - 990.
Ginnane, supra note 4, at 605.
37 Op. Att'y Gen. 56 (1933), 39 Op Att'y Gen. 61 (1937);
41 Op. Att'y Gen. 230 (1955)
FORD
LIBRARY
- 7 -
The decision in Springer has not been qualified by the
Supreme Court or lower Federal Courts, and, indeed, was
recently relied on in the case of Buckley et al V. Valeo,
Secretary of the United States Senate, et al, 44 U.S. L.W. 4127 (U.S.
Jan. 30, 1976). In Buckley, the Supreme Court cited Springer
in holding unconstitutional that portion of the Federal
Election Campaign Act of 1971, as amended, that permitted the
Congress to appoint four of the six voting members of the
Commission as a violation of the Appointments Clause of Article
II, section 2 of the Constitution. The Court in Buckley cited
Chief Justice Taft's opinion in Hampton and Co. V. United States,
276 U.S. 394 (1928), wherein the Court observed:
"The rule is that in the actual administration
of the government Congress or the Legislature
should exercise the legislative power, the
President or the State executive, the Governor,
the executive power, and the Courts or the
judiciary, the judicial power,
...
it
is
a
breach of the national fundamental law if Congress
gives up its legislative power and transfers it to
the President, or to the judicial branch, or if by
law it attempts to invest itself or its members with
either executive power or judicial power."
Id. at 406.
The Court in Buckley also referred to James Madison, writing
in the Federalist No. 47, who quoted Montesquieu to dramatically
defend the work of the Constitutional Convention in creating
separate and distinct branches of government:
"When the legislative and executive powers are
united in the same person or body there can be no
liberty, because apprehensions may arise lest the
same monarch or senate should enact tyrannical
laws to execute them in a tyrannical manner."
Supra at 4163.
Citing, inter alia, Springer V. Philippine Islands, four
Attorneys General have held that attempts to give to a Congres-
sional Committee the power to approve or disprove executive
acts is unconstitutional.
In 1932 President Hoover requested Attorney General Mitchell's
opinion on whether he should sign the Urgent Deficiency Bill,
H.R. 13975 (1933), which contained the following provision:
- 8 -
"Provided, That no refund or credit of any
income or profits, estate, or gift tax in excess
of $20,000 shall be made after the enactment of
this Act until a report thereof
and the facts
in connection therewith are submitted by the
Commissioner of Internal Revenue to the Joint Com-
mittee on Internal Revenue Taxation and action
thereon taken by said committee
and no refund or
credit in excess of $20,000 shall be made without
the approval of said committee."
The Attorney General concluded that the provision was obnoxious
to the Constitution because "It attempts to entrust to members
of the legislative branch, acting ex officio, executive
functions in the execution of the law, and It attempts to
give to a committee of the legislative branch power to approve
or disapprove executive acts". 37 Op. Att'y Gen. 56, 58 (1933).
Attorney General Mitchell further stated:
"This proviso cannot be sustained on the theory
that it is a proper condition attached to an
appropriation. Congress holds the purse strings,
and it may grant or withhold appropriations as it
chooses, and when making an appropriation may direct
the purposes to which the appropriation shall be
devoted and impose conditions in respect to its
use, provided always that the conditions do not
require operation of the Government in a way for-
bidden by the Constitution. Congress may not, by
conditions attached to appropriations, provide for
a discharge of the functions of Government in a
manner not authorized by the Constitution. If such a
practice were permissible, Congress could subvert
the Constitution. Id. 61.
and he explained that:
"Attempting to have committees of Congress approve
executive acts, or execute administrative functions,
or participate in the execution of laws is not a new
idea. Carried to its logical conclusion, it would
enable Congress, through committees or persons selected
by it, gradually to take over all executive functions
or at least exercise a veto power upon executive
action, not by legislation withdrawing authority, but
by the action of committees
Id. at 62.
is
FORD
GERALD
LIBRARY
- 9 -
In recommending that President Hoover veto the Urgent
Deficiency Bill because of this proviso, the Attorney
General stressed that "the proviso in this deficiency bill
may not be important in itself, but the principle at stake
is vital. Encroachments on the executive authority are not
likely to be deliberate but that very fact makes them all
the more insidious." Id. at 65.
In 1937, when President Roosevelt received for signature a
Joint Resolution establishing a World's Fair Commission
composed largely of members of Congress, who would have the
authority to expend the appropriation made by the resolution,
Attorney General Cummings cited Springer V. Philippine
Islands and Attorney General Mitchell's 1933 opinion in
recommending that the President veto the Resolution on
constitutional grounds. 39 Op. Att'y Gen. 61 (1937)
Similarly, in 1955 President Eisenhower was asked to sign
the Department of Defense Appropriation Act, 1956, which
contained the following provision:
"Section 638. No part of the funds appropriated
in this act may be used for the disposal or transfer
by contract or otherwise of work that has been for
a period of three years or more performed by
civilian personnel of the Department of Defense
unless justified to the Appropriations Committees
of the Senate and the House of Representatives,
Provided, That nc such disposal or transfer
shall be made if disapproved by either committee
within the ninety-day period
"
Attorney General Brownell, Jr. advised the President that this
provision was unconstitutional under the separation of powers
doctrine, and noted that his conclusions were "fully supported
by and are consistent with the Constitution of the United States,
views long espoused by past Presidents of the United States,
and by opinions of the judicial branch of our Government."
41 Op. Att'y Gen. 230, 231-232 (1955)
In explaining his conclusion, Attorney General Brownell noted
that:
"The practical effect of these provisions is to
vest the power to administer the particular
program jointly in the Secretary of Defense and
the members of the Appropriations Committees, with
the overriding right to forbid action reserved to
the two Committees. This, I believe, engrafts
executive functions upon legislative members and
thus overreaches the permitted sweep of legislative
authority. At the same time, it serves to usurp
- 10 -
power confided to the executive branch. The result,
therefore, is violative of the fundamental constitu-
tional principle of separation of powers prescribed
in Articles I and II of the Constitution which places
the legislative power in the Congress and the executive
power in the executive branch." Id. at 231.
The Attorney General also noted that it was not necessary to
veto the entire act in order to nullify the offending provision.
He pointed out that "whenever a provision in a statute is found
invalid, question arises whether the whole act falls or only
the objectionable section. This depends on whether the uncon-
stitutional provision is separable from the rest of the act
i.e. 7 whether Congress would have intended the balance
of the act to stand without the obnoxious provision."
Id at 234-235. In this instance the Attorney General concluded:
"It is my opinion that the proviso which purports
to vest disapproval authority on either of the two
Appropriations Committees is separable from the
remainder of the act and, if viewed as imposing an
invalid condition, does not affect the validity
of the remaining provisions". Id. at 235.
Finally, in 1957, Acting Attorney General Rogers considered
a provision of Public Law 155, which provided that no
accessions, leases, transfers, or declarations of surplus,
of any real property, could be made by any designated officer
of the military departments, where the amount involved
exceeded $25,000, unless the designated officer of the military
department first came into agreement with the Committee on
Armed Services of the Senate and of the House of Representatives.
The Attorney General stated:
"Legislative proposals and enactments in recent years
have reflected a growing trend whereby authority
is sought to be vested in congressional committees
to approve OF disapprove actions of the executive
branch. Of the several legislative devices employed,
that which subjects executive department action to the
prior approval or disapproval of congressional committees
may well be the most inimical to responsible government.
It not only permits organs of the legislative branch
to take binding actions having the effect of law without
opportunity for the President to participate in the
legislative process, but it also permits mere handfuls
of members to speak for a Congress which is given no
opportunity to participate as a whole."
41 Op. Att'y Gen. 300, 301 (1957).
i
FORD
GERALD
LIBRARY
- 11 -
In concluding that the proviso in question was unconstitutional,
Attorney General Rogers also referred to Attorney General
Brownell's 1955 opinion on the fiscal year 1956 Defense Appro-
priation Act, and noted that if the provision in question were
deemed "separable" from the rest of the act, "the offending
section was not to be regarded as a legally binding limitation
which the Congress could constitutionally impose". Id. at 306.
Relying on judicial precedents and opinions of various
Attorneys General, statutes portending to authorize committee
approval for executive functions have been vetoed by Presi-
dents Buchanan, Wilson, Hoover, Roosevelt, Truman, Eisenhower
and Johnson.
In 1920, President Wilson vetoed an appropriation act that
contained a proviso that certain documents should not be
printed by any executive branch or officer except with the
approval of the Joint Committee on Printing. President Wilson
stated:
"The Congress and the Executive should function
within their respective spheres. Otherwise efficient
and responsible management will be impossible and
progress impeded by wasteful forces of disorganization
and destruction. The Congress has the power and the
right to grant or deny an appropriation, or to enact
or refuse to enact a law; but once an appropriation
is made or a law is passed, the appropriation should
be administered or the law executed by the executive
branch of the Government. In no other way can the
Government be efficiently managed and responsibility
definitely fixed. The Congress has the right to
confer upon its committees full authority for purposes
of investigation and the accumulation of information
for its guidance, but I do not concede the right, and
certainly not the wisdom, of the Congress endowing
a committee of either House or a joint committee of
both Houses with power to prescribe "regulations"
under which executive departments may operate."
59 Cong. Rec. 7026 (1920)
Despite the weight of judicial precedent, and numerous vetoes
of acts with committee approval provisions, Congress has con-
tinued to include approval as well as "notify and wait" pro-
visions with increasing frequency, 10 and a number of acts with
such provisions have been enacted into law. It does not follow,
9/ See Memorandum of the Senate Legislative Counsel, supra at
2,4,6,7,8; Watson, supra note 4, at 1.017-1029
10/ Watson, supra note 4 at 1017-1029, footnote 407 at 1060
GERALD
LIBRARY
- 12 -
however, that such provisions have become constitutionally
acceptable through usage. In Γ. April 1, 1974 letter to
Mr. Arthur Z. Gardiner, General Counsel, A.I.D., the Assistant
Attorney General, Office of Legal Counsel, Department of
Justice, pointed out that adoption of a provision giving
Congress the right to terminate foreign assistance programs by
concurrent resolution (section 617 of the Foreign Assistance
Act of 1961, as amended) did not resolve the constitutionality
of that provision even though it was not vetoed by the President.
The Assistant Attorney General pointed out that "if any deference
is to be given to practice and precedent, we believe that the
practice begun with the adoption of the Constitution and continued
uniformly for approximately 150 years is entitled to far greater
weight than the more recent, sporadic and often debated examples
of lawmaking by concurrent resolution."
There can be many reasons why a President would sign into law
an act that contains an objectionable provision. For example,
Supreme Court Justice Jackson revealed that while he was
Attorney General, President Roosevelt approved a defense appro-
priation bill that contained a committee approval provision
which he believed to be unconstitutional. I1 At the time he
signed the bill, however, President Roosevelt also submitted a
memorandum to the Attorney General notifying him that he believed
the offending provision to be unconstitutional, and that he had
signed the bill due to the "existing exigencies of the world
situation." The President submitted the memorandum because
"I should not wish my action in approving the bill which includes
this invalid clause, to be used as a precedent for any future
legislation comprising provisions of a similar nature."
Id. at 1358.
In a like manner, Presidents have signed laws containing
committee approval requirement while at the same time directing
the affected agencies not to comply with the constitutionally
objectionable provisions. President Eisenhower, in signing the
fiscal year 1956 Defense Appropriation Act, advised that the
committee approval requirement contained in section 638 of the
act would be "regarded as invalid by the Executive Branch of the
Government in the administration of H.R. 6042, unless otherwise
determined by a Court of competent jurisdiction." 100 Cong. Rec.
Pt. 6, 7135 (July 12, 1955).
11/ Jackson, A Presidential Legal Opinion, 66 Harv. L. Rev. 1353
(June 1953)
- 13 -
In 1963, the foreign assistance appropriation act contained
a provision which stated that program changes involving funds
for economic assistance carried forward from prior years could
be made only if the appropriations committees of the Congress
were notified prior to such changes and no objection was
entered by either Committee within 60 days. In a memorandum
to the Administrator of A.I.D., President Kennedy noted that:
"I have been advised by the Attorney General that
this provision is unconstitutional either as a
delegation to Congressional Committees of powers
which reside only in the Congress as a whole or as
an attempt to confer executive powers on the committee
in violation of the principle of separation of powers
prescribed in Articles I and II of the Constitution,
Previous Presidents and Attorneys General have objected
to similar provisions permitting a Committee to veto
executive action authorized by law." Public Papers of the
Presidents: John F. Kennedy, 1963, at 6.
President Kennedy directed the Administrator to treat this
provision as a request for information, giving no effect to
the requirement that A.I.D. wait 60 days before reprogramming
affected funds. Id.
More recently, the Department of Defense Appropriation Act,
1976 (P.L. 94-212, February 10, 1976) was signed by President
Ford with a provision which requires:
"That none of the funds provided in this Act may
be obligated for construction or modernization of
government-owned contractor-operator Army Ammunition
Plants for the production of 105mm artillery
projectile metal parts until a new study is made
of such requirements by the Department of the Army;
the Secretary of the Army certifies to Congress
that such obligations are essential to the national
defense; and until approval is received from the
Appropriations and Armed Services Committees of
the House and the Senate
90 Stat. 162 (emphasis
added)
In his signing statement, President Ford objected to this
provision because it "violates the fundamental doctrine of
separation of powers. Presidential Documents: Gerald R.
Ford, Vol. 12, No. 7, 172 (1976). The President commented
that:
FORD i LIBRARY CERRAL
- 14 -
"The exercise of an otherwise valid Executive
power cannot be limited by a discretionary act
of a Committee of Congress nor can a Committee
give the Executive a power which it otherwise
would not have. The legislative branch cannot
inject itself into the Executive functions, and
opposition to attempts of the kind embodied in
this bill has been expressed by Presidents for
more than fifty years." Id.
Although the President signed the bill because of other
problems that would have resulted from a delay caused by a
veto, he stated that: "I intend to treat the unconstitutional
provision in the appropriation "Procurement of Ammunition,
Army," to the extent it requires further congressional
committee approval, as a complete nullity. I cannot concur in
this legislative encroachment upon the constitutional powers
of the Executive Branch." Id.
Conclusion:
As Ginnane concluded in his article more than twenty years ago:
"The arguments against the validity of statutory provisions
vesting in legislative committees the power to approve or dis-
approve proposed actions of executive officers thus seem to be
overwhelming. Not only Springer V. Philippine Islands, but
most of the State decisions are opposed. Likewise, Presidents
Wilson, Hoover, Roosevelt and Truman have opposed, sometimes
successfully, such statutes and proposals as encroachments upon
the executive branch." supra at 608. This conclusion has been
strengthened in the intervening years 127 President Ford's
recent statement when he signed into law the Department of Defense
Appropriation Act, 1976, makes it clear that the executive branch
will not accept the constitutionality of committee approval
requirements such as that contained in H.R. 12203.
If the committee approval requirement is retained in the act sent
to the President, and the act is not vetoed, we recommend that the
Attorney General be asked to render an advisory opinion regarding
its constitutionality.
Charles L. Gladson
General Counsel
22 APR 1976
Agency for International Development
12/ Watson, in his 1975 Comment on the use of
the Committee veto, supra at 1060, concluded that
any statute containing such provisions "should DeFORD
per se. invalid."
1
LIBRARY GERALD
Public Law 94-330
94th Congress, H. R. 12203
June 30, 1976
An Act
Making appropriations for Foreign Assistance and related programs for the
fiscal year ending June 30, 1976, and the period ending September 30, 1976,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That the following
Foreign
sums are appropriated, out of any money in the Treasury not otherwise
Assistance
appropriated, for Foreign Assistance and related programs for the
and Related
fiscal year ending June 30, 1976, and the period ending September 30,
Programs
1976, and for other purposes, namely:
Appropriations
Act, 1976.
TITLE I-FOREIGN ASSISTANCE ACT ACTIVITIES
FUNDS APPROPRIATED TO THE PRESIDENT
For expenses necessary to enable the President to carry out the
provisions of the Foreign Assistance Act of 1961, as amended, and
22 USC 2151
for other purposes, to remain available until June 30, 1976, and the
note.
period ending September 30, 1976, unless otherwise specified herein,
as follows:
ECONOMIC ASSISTANCE
Food and nutrition, Development Assistance: For necessary
expenses to carry out the provisions of section 103, $426,600,000: 22 USC 2151a.
Provided, That the amounts provided for loans to carry out the pur-
poses of these paragraphs shall remain available until expended.
For "Food and nutrition, Development Assistance" for the period
July 1, 1976, through September 30, 1976, $112,500,000.
Population planning and health, Development Assistance: For
necessary expenses to carry out the provisions of section 104, 22 USC 2151b.
$146,400,000 : Provided, That not less than $103,000,000 of such amount
shall be available only for population planning: Provided further,
That the amounts provided for loans to carry out the purposes of these
paragraphs shall remain available until expended.
For "Population planning and health, Development Assistance"
for the period July 1, 1976, through September 30, 1976, $33,450,000.
Education and human resources development, Development Assist-
ance: For necessary expenses to carry out the provisions of section
105, $60,800,000: Provided, That the amounts provided for loans to
22 USC 2151c.
carry out the purposes of these paragraphs shall remain available
until expended.
For "Education and human resources development, Development
Assistance" for the period July 1, 1976, through September 30, 1976,
$8,800,000.
Technical assistance, energy, research, reconstruction, and selected
development problems, Development Assistance: For necessary
expenses to carry out the provisions of section 106, $57,400,000 : Pro-
22 USC 2151d.
vided, That the amounts provided for loans to carry out the purposes
of these paragraphs shall remain available until expended.
73-975 O 76
90 STAT. 771
Pub. Law 94-330
- 2 -
June 30, 1976
June 30, 1976
- 3 -
Pub. Law 94-330
For "Technical assistance, energy, research, reconstruction, and
Contingency fund For necessary expenses $5,000,000, to be used
selected development problems, Development Assistance" for the
for the purposes set forth in section 451.
22 USC 2261.
period July 1, 1976, through September 30, 1976, $11,100,000.
For "Contingency fund" for the period July 1, 1976, through
Loan allocation, Development Assistance: Of the new obligational
September 30, 1976, $1,250,000.
authority appropriated under this Act to carry out the provisions of
International disaster assistance: For necessary expenses to carry
22 USC 2151a-
sections 103-106, not less than $300,000,000 shall be available for loans
out the provisions of section 495A, $45,000,000 Provided, That of this
Ante, p. 397.
2151d.
for fiscal year 1976 and not less than $75,000,000 shall be available for
amount $25,000,000 shall be available only for Guatemala disaster
22 USC 2292a-1.
loans for the period July 1, 1976, through September 30, 1976.
relief assistance: Provided further, That the President shall submit
Presidential
International organizations and programs: For necessary expenses
quarterly reports to the Committee on Appropriations of the United
report to
22 USC 2221.
to carry out the provisions of section 301, $175,250,000 Provided, That
States Senate and to the Committee on Appropriations of the House
congressional
not more than $20,000,000 shall be available for the United Nations
of Representatives on the programing and obligation of funds
committees.
Children's Fund: Provided further, That not less than $1,000,000 shall
appropriated for International Disaster Assistance.
be available until expended only for the International Atomic Energy
For "International disaster assistance" for the period July 1, 1976,
Agency to be used for the purpose of strengthening safeguards and
through September 30, 1976, $5,000,000.
inspections relating to nuclear fissile facilities and materials: Provided
African development program: For necessary expenses to carry out
further, That none of the funds appropriated or made available
the provisions of section 494B, $5,000,000.
22 USC 2292e.
pursuant to this Act shall be used to supplement the funds provided
Cyprus relief and rehabilitation: For necessary expenses to carry
to the United Nations Development Program in fiscal year 1975.
out the provisions of section 495, $25,000,000.
22 USC 2292f.
For "International organizations and programs" for the period
For "Cyprus relief and rehabilitation" for the period July 1, 1976,
July 1, 1976, through September 30, 1976, $16,300,000.
through September 30, 1976, $5,000,000.
United Nations Environment Fund: For necessary expenses to
International narcotics control: For necessary expenses to carry
carry out the provisions of section 2 of the United Nations Environ-
out the provisions of section 481, $37,500,000.
22 USC 2291.
22 USC 287
ment Program Participation Act of 1973, $7,500,000.
For "International narcotics control" for the period July 1, 1976,
note.
American schools and hospitals abroad For necessary expenses to
through September 30, 1976, $9,375,000.
22 USC 2174.
carry out the provisions of section 214, $19,800,000.
Payment to the Foreign Service Retirement and Disability Fund:
For "American schools and hospitals abroad" for the period July 1,
For payment to the "Foreign Service retirement and disability fund,"
1976, through September 30, 1976, $2,400,000.
as authorized by the Foreign Service Act of 1946, as amended (22
American schools and hospitals abroad (special foreign currency
U.S.C. 1105-1106), $16,680,000.
program) For necessary expenses to carry out the provisions of sec-
Overseas training (Special foreign currency program) For neces-
tion 214, $7,000,000 in foreign currencies which the Treasury Depart-
sary expenses to carry out the provisions of Section 612, $200,000 in 22 USC 2362.
ment determines to be excess to the normal requirements of the United
foreign currencies which the Treasury declares to be excess to the nor-
States, to remain available until expended.
mal requirements of the United States.
For "American schools and hospitals abroad (special foreign cur-
Except for the Contingency Fund, unobligated balances as of
rency program)" for the period July 1, 1976, through September 30,
June 30, 1975, and June 30, 1976, of funds heretofore made available
1976, $1,750,000, in foreign currencies which the Treasury Depart-
under the authority of the Foreign Assistance Act of 1961, as amended,
22 USC 2151
ment determines to be excess to the normal requirements of the United
except as otherwise provided by law, are hereby continued available
note.
States, to remain available until expended.
through September 30, 1976, for the same general purposes for which
John McCormack Center, St. John's Medical College (special for-
appropriated and amounts certified pursuant to section 1311 of the
eign currency program) For necessary expenses to carry out the
Supplemental Appropriation Act, 1955, as having been obligated
31 USC 200.
22 USC 2362.
purposes of Part I, as authorized by section 612(a), $13,650,000 in
against appropriations heretofore made under the authority of the
foreign currencies which the Treasury Department determines to be
Foreign Assistance Act of 1961, as amended, for the same general
excess to the normal requirements of the United States: Provided,
purpose as any of the subparagraphs under "Economic Assistance,"
That such amount shall be available solely for the John W. McCormack
"Middle East Special Requirements Fund," "Security Supporting
Center, the Hospital of St. John's Medical College, Bangalore, India,
Assistance," "Operating Expenses of the Agency for International
and that of such amount not more than $9,000,000 shall be available
Development," "International Military Education and Training," and
for an endowment to assist needy patients at the Center.
"Indochina Postwar Reconstruction Assistance," are hereby continued
Indus Basin Development Fund, grants: For necessary expenses to
available for the same period as the respective appropriations in such
22 USC 2222.
carry out the provisions of section 302(b) (2) with respect to Indus
subparagraphs for the same general purpose: Provided, That such
Basin Development Fund, grants, $9,000,000 Provided, That no other
purpose relates to a project or program previously justified to Con-
funds appropriated or made available under this Act shall be used for
gress, and the Committees on Appropriations of the House of Rep-
the purposes of such section during the current fiscal year.
resentatives and the Senate are notified prior to the reobligation of
For "Indus Basin Development Fund, grants" for the period July 1,
funds for such projects or programs.
1976, through September 30, 1976. $2,250,000.
None of the funds made available under this Act for "Food and
Indus Basin Development Fund, loans: For expenses authorized by
nutrition, Development Assistance," Population planning and health,
section 302(b) (1) $10,000,000, to remain available until expended:
Development Assistance," "Education and human resources develop-
Provided. That no other funds appropriated or made available under
ment, Development Assistance," "Technical assistance, energy,
this Act shall be used for the purposes of such section during the
research, reconstruction, and selected development problems, Develop-
current fiscal year.
ment Assistance," "International organizations and programs,
1986
90 STAT. 772
90 STAT. 773
LIBRARY
Pub. Law 94-330
- 4 -
June 30, 1976
June 30, 1976
- 5
Pub. Law 94-330
"United Nations Environment Fund," "American schools and hos-
INTERNATIONAL MILITARY EDUCATION AND TRAINING
pitals abroad," "Indus Basin Development Fund," "International nar-
cotics control," "African development program, "Security supporting
International military education and training: For necessary
assistance," "Operating Expenses of the Agency for International
expenses to carry out the provisions of section 541 of the Foreign
Development," "Middle East Special requirements fund," "Military
Assistance Act of 1961, as amended, $23,000,000.
Ante, p. 732.
assistance," "International military education and training," "Inter-
For "International military education and training" for the period
American Foundation," "Peace Corps," "Migration and refugee assist-
July 1, 1976, through September 30, 1976, $5,750,000.
ance," or "Assistance to refugees from the Soviet Union or other
Communist countries in Eastern Europe," shall be available for obli-
OVERSEAS PRIVATE INVESTMENT CORPORATION
gation for activities, programs, projects, type of materiel assistance,
countries, or other operations not justified or in excess of the amount
The Overseas Private Investment Corporation is authorized to make
justified to the Appropriations Committees for obligation under any
such expenditures within the limits of funds available to it and in
of these specific headings for the current fiscal year without the
accordance with law (including not to exceed $10,000 for entertain-
approval of the Appropriations Committees of both Houses of the
ment allowances), and to make such contracts and commitments with-
Congress.
out regard to fiscal year limitations as provided by section 104 of the
MIDDLE EAST SPECIAL REQUIREMENTS FUND
Government Corporation Control Act, as amended (31 U.S.C. 849),
as may be necessary in carrying out the program set forth in the budget
Middle East special requirements fund For necessary expenses to
for the current fiscal year and for the period July 1, 1976, through
carry out the provisions of section 901 and section 903 of the Foreign
September 30, 1976.
22 USC 2441,
Assistance Act of 1961, as amended, $50,000,000 : Provided, That none
2443.
of the funds appropriated under this heading may be used to provide a
INTER-AMERICAN FOUNDATION
United States contribution to the United Nations Relief and Works
Agency.
The Inter-American Foundation is authorized to make such expendi-
For "Middle East special requirements fund" for the period July 1,
tures within the limits of funds available to it and in accordance with
1976, through September 30, 1976, $10,000,000.
the law, and to make such contracts and commitments without regard
to fiscal year limitations as provided by section 104 of the Government
SECURITY SUPPORTING ASSISTANCE
Corporation Control Act, as amended (31 U.S.C. 849), as may be nec-
essary in carrying out its authorized programs during the current
Security supporting assistance: For necessary expenses to carry
fiscal year and for the period July 1, 1976, through September 30, 1976:
out the provisions of section 531 of the Foreign Assistance Act of
Provided, That not to exceed $7,500,000 shall be available to carry out
22 USC 2346.
1961, as amended, $1,689,900,000: Provided, That of the funds appro-
the authorized programs during the current fiscal year.
Israel, Egypt,
priated under this paragraph, $700,000,000 shall be allocated to Israel,
For "Inter-American Foundation" for the period July 1, 1976,
Jordan, Syria,
$695,000,000 shall be allocated to Egypt, $72,500,000 shall be allocated
through September 30, 1976, not to exceed $1,875,000 shall be available
and Greece,
allocation of
to Jordan, $80,000,000 shall be allocated to Syria, and $65,000,000 shall
to carry out the authorized programs.
funds.
be allocated to Greece.
For "Security Supporting Assistance" for the period July 1, 1976,
GENERAL PROVISIONS
through September 30, 1976, $269,700,000 Provided, That of the funds
appropriated under this paragraph, $75,000,000 shall be allocated to
SEC. 101. None of the funds herein appropriated (other than funds Flood control
Israel, $100,000,000 shall be allocated to Egypt, $60,000,000 shall be
appropriated for "International organizations and programs" and
and related
allocated to Jordan, and $15,000,000 shall be allocated to Syria.
"Indus Basin Development Fund") shall be used to finance the con-
projects.
struction of any new flood control, reclamation, or other water or
OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL DEVELOPMENT
related land resource project or program which has not met the
standards and criteria used in determining the feasibility of flood
For "Operating Expenses of the Agency for International Develop-
control, reclamation, and other water and related land resource pro-
ment", $194,600,000.
grams and projects proposed for construction within the United
For "Operating Expenses of the Agency for International Develop-
States of America as per memorandum of the President dated
ment" for the period July 1, 1976, through September 30, 1976,
May 15, 1962.
$55,500,000.
Sec. 102. Except for the appropriations entitled "Contingency
MILITARY ASSISTANCE
fund", "International disaster assistance", and appropriations of
funds to be used for loans, not more than 20 per centum of any appro-
Military assistance: For necessary expenses to carry out the provi-
priation item made available by this title for fiscal year 1976 shall be
22 USC 2311.
sions of section 503 of the Foreign Assistance Act of 1961, as amended,
obligated and/or reserved during the last month of availability.
including administrative expenses and purchase of passenger motor
SEC. 103. None of the funds herein appropriated nor any of the
vehicles for replacement only for use outside of the United States,
counterpart funds generated as a result of assistance hereunder or any
$225,000,000; and, for liquidation of obligations incurred pursuant
prior Act shall be used to pay pensions, annuities, retirement pay, or
to the authority of section 506 of the Foreign Assistance Act of 1961,
adjusted service compensation for any persons heretofore or hereafter
22 USC 2318.
as amended, $275,000,000: Provided, That none of the funds con-
serving in the armed forces of any recipient country.
tained in this paragraph shall be available for the purchase of new
SEC. 104. None of the funds appropriated or made available pursuant
Procurement
automotive vehicles outside of the United States.
to this Act for carrying out the Foreign Assistance Act of 1961, as
contracts, re-
For "Military Assistance" for the period July 1, 1976, through
striction.
September 30, 1976, $27,200,000.
90 STAT. 775
90 STAT. 774
Pub. Law 94-330
- 6 -
June 30, 1976
June 30, 1976
- 7
Pub. Law 94-330
22 USC 2151
amended, may be used for making payments on any contract for pro-
resentation Allowances of the Agency for International Development
note.
curement to which the United States is a party entered into after the
for the period July 1, 1976 through September 30, 1976.
date of enactment of this Act which does not contain a provision
authorizing the termination of such contract for the convenience of
TITLE II-FOREIGN MILITARY CREDIT SALES
the United States.
SEC. 105. Of the funds appropriated or made available pursuant to
FOREIGN MILITARY CREDIT SALES
this Act, not more than $15,000,000 may be used during the current
fiscal year and the period July 1, 1976, through September 30, 1976, in
For expenses not otherwise provided for, necessary to enable the
carrying out research under section 106(a) (3) of the Foreign Assist-
President to carry out the provisions of the Foreign Military Sales
22 USC 2151d.
ance Act of 1961, as amended.
Act, $1,065,000,000 : Provided, That of the amount provided for the
22 USC 2751
United Nations
SEC. 106. None of the funds appropriated or made available pursuant
total aggregate credit sale ceiling during the current fiscal year, not
note.
members, as-
to this Act for carrying out the Foreign Assistance Act of 1961, as
less than $1,500,000,000 shall be allocated to Israel.
sessments, dues.
amended, may be used to pay in whole or in part any assessments,
For "Foreign Military Credit Sales" for the period July 1, 1976,
arrearages, or dues of any member of the United Nations.
through September 30, 1976, $140,000,000 : Provided, That of the
SEC. 107. None of the funds contained in title I of this Act may be
amount provided for the total aggregate credit sale ceiling during the
used to carry out the provisions of sections 209 (d) and 251 (h) of the
period July 1, 1976 through September 30, 1976, not less than
22 USC 2169,
Foreign Assistance Act of 1961, as amended.
$200,000,000 shall be allocated to Israel.
2211.
SEC. 108. None of the funds appropriated or made available pursuant
North and South
to this Act shall be used to provide assistance to the Democratic
TITLE III-FOREIGN ASSISTANCE (OTHER)
Vietnam, Cam-
Republic of Vietnam (North Vietnam), South Vietnam, Cambodia or
bodia, or Laos,
Laos.
INDEPENDENT AGENCY
assistance.
Angola, mili-
SEC. 109. None of the funds appropriated or made available pur-
suant to this Act shall be obligated or expended to finance directly or
ACTION-INTERNATIONAL PROGRAMS
tary assistance.
indirectly any type of military assistance to Angola.
SEC. 110. None of the funds appropriated or made available pursuant
PEACE CORPS
to this Act shall be obligated or expended to finance directly or
indirectly, (A) the planning or carrying out of any assassination, or
For expenses necessary for Action to carry out the provisions of
(B) the financing directly or indirectly any foreign political activity
the Peace Corps Act (75 Stat. 612), as amended, $80,826,000 : Pro-
22 USC 2501
or to otherwise influence any foreign election in peace time.
vided, That of this amount $7,599,000 shall be for Peace Corps
note.
Loans, waiver.
SEC. 111. All amounts due and owing on loans made for the benefit of
volunteer readjustment allowances, as authorized by Public Law
the Weizmann Institute, Hebrew University, Tel Aviv University,
94-130.
Israel Institute of Technology, American-Israeli Cultural Foundation,
For "Action-International Programs (Peace Corps)" for the
Bar Ilan University, Israel Program for Scientific Translations, Keren
period July 1, 1976, through September 30, 1976, $24,000,000: Pro-
Hanegev and Misrachi Women's Organization of America from funds
vided, That of this amount not less than $2,684,000 shall be used to
available under title I of the Agricultural Trade Development and
fund Peace Corps volunteer readjustment allowances, as authorized
7 USC 1701
Assistance Act of 1954, as amended (Public Law 480), are hereby
by Public Law 94-130.
89 Stat. 684.
et seq.
waived and forgiven.
SEC. 112. The Act of May 23, 1975 (making appropriations for
3
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE
special assistance to refugees from Cambodia and Vietnam, Public
ASSISTANCE TO REFUGEES IN THE UNITED STATES
89 Stat. 89.
Law 94-24) is hereby amended by striking out "Cambodia and Viet-
nam" each place it appears therein and inserting in lieu thereof
(CUBAN PROGRAM)
"Cambodia, Vietnam, and Laos".
SEC. 113. Of the funds appropriated or made available pursuant
For expenses necessary to carry out the provisions of the Migration
to this Act not to exceed $103,000 shall be for Official Residence
and Refugee Assistance Act of 1962 (Public Law 87-510), relating to
22 USC 2601
Expenses of the Agency for International Development during the
aid to refugees within the United States (Cuban program) including
note.
fiscal year ending June 30, 1976; and not to exceed $28,500 shall be
hire of passenger motor vehicles, and services as authorized by 5
for Official Residence Expenses of the Agency for International
U.S.C. 3109, $85,000,000.
Development for the period July 1, 1976 through September 30, 1976.
For "Assistance to refugees in the United States (Cuban program)"
SEC. 114. Of the funds appropriated or made available pursuant
for the period July 1, 1976, through September 30, 1976, $19,000,000.
to this Act not to exceed $19,000 shall be for Entertainment Expenses
of the Agency for International Development during the fiscal year
DEPARTMENT OF STATE
ending June 30, 1976; and not to exceed $4,750 shall be for Enter-
tainment Expenses of the Agency for International Development for
MIGRATION AND REFUGEE ASSISTANCE
the period July 1, 1976 through September 30, 1976.
SEC. 115. Of the funds appropriated or made available pursuant to
For expenses, not otherwise provided for, necessary to enable the
this Act not to exceed $91,000 shall be for Representation Allowances
Secretary of State to provide, as authorized by law, a contribution to
of the Agency for International Development during the fiscal year
the International Committee of the Red Cross and assistance to refu-
ending June 30, 1976; and not to exceed $23,000 shall be for Rep-
gees, including contributions to the Intergovernmental Committee for
European Migration and the United Nations High Commissioner for
Refugees; salaries and expenses of personnel and dependents as author-
90 STAT. 776
ized by the Foreign Service Act of 1946, as amended (22 U.S.C. 801-
90 STAT. 777
Pub. Law 94-330
- 8
June 30, 1976
June 30, 1976
- 9 -
Pub. Law 94-330
1158) ; allowances as authorized by 5 U.S.C. 5921-5925; hire of
TITLE IV-EXPORT-IMPORT BANK OF THE UNITED
passenger motor vehicles; and services as authorized by 5 U.S.C. 3109;
STATES
$9,000,000: Provided, That of this amount not more than $3,054,390
shall be available for the United States Refugee Program, and, of
The Export-Import Bank of the United States is hereby authorized
which not to exceed $8,171,000 shall remain available until December
to make such expenditures within the limits of funds and borrowing
31, 1976: Provided, That no funds herein appropriated shall be used
authority available to such corporation, and in accord with law, and
to assist directly in the migration to any nation in the Western Hemi-
to make such contracts and commitments without regard to fiscal year
sphere of any person not having a security clearance based on reason-
limitations as provided by section 104 of the Government Corporation
able standards to insure against Communist infiltration in the Western
Control Act, as amended, as may be necessary in carrying out the
31 USC 849.
Hemisphere.
program set forth in the budget for the current fiscal year and for the
For "Migration and refugee assistance" for the period July 1, 1976,
period July 1, 1976, through September 30, 1976, for such corporation,
through September 30, 1976, $700,000.
except as hereinafter provided.
EMERGENCY MIGRATION AND REFUGEE ASSISTANCE FUND
LIMITATION ON PROGRAM ACTIVITY
For necessary expenses to carry out the provisions of section 2(c) of
Not to exceed $5,619,945,000 (of which not to exceed $3,000,000,000
the Migration and Refugee Assistance Authorization Act of 1962, as
shall be for equipment and service loans) shall be authorized during
amended (22 U.S.C. 2601), $5,000,000.
the current fiscal year for other than administrative expenses.
For "Limitation on program activity" for the period July 1, 1976,
ASSISTANCE TO REFUGEES FROM THE SOVIET UNION AND OTHER
through September 30, 1976, not to exceed $1,436,813,000 (of which
COMMUNIST COUNTRIES IN EASTERN EUROPE
not to exceed $737,500,000 shall be for equipment and service loans).
For necessary expenses to carry out the provisions of section 101 (b)
LIMITATION ON ADMINISTRATIVE EXPENSES
of the Foreign Relations Authorization Act of 1972 and the provisions
of section 501 (c) of the Foreign Relations Authorization Act, Fiscal
Not to exceed $11,412,000 (to be computed on an accrual basis) shall
Year 1976, $15,000,000.
be available during the current fiscal year for administrative expenses,
including hire of passenger motor vehicles, services as authorized by
FUNDS APPROPRIATED TO THE PRESIDENT
5 U.S.C. 3109, and not to exceed $20,000 for entertainment allowances
for members of the Board of Directors: Provided, That (1) fees or
INTERNATIONAL FINANCIAL INSTITUTIONS
dues to international organizations of credit institutions engaged in
financing foreign trade, (2) necessary expenses (including special
INVESTMENT IN ASIAN DEVELOPMENT BANK
services performed on a contract or a fee basis, but not including other
personal services) in connection with the acquisition, operation, main-
For payment by the Secretary of the Treasury of the second install-
tenance, improvement, or disposition of any real or personal property
ment of the United States subscription to the (1) paid-in capital stock;
belonging to the Bank or in which it has an interest, including expenses
(2) callable capital stock; and (3) for the United States contribution
of collections of pledged collateral, or the investigation or appraisal of
to the special funds of the Asian Development Bank, as authorized
any property in respect to which an application for a loan has been
by the Asian Development Bank Act of December 22, 1974 (Public
made, and (3) expenses (other than internal expenses of the Bank)
22 USC 285q,
Law 93-537) $145,634,909, to remain available until expended.
incurred in connection with the issuance and servicing of guarantees,
285r.
insurance, and reinsurance, shall be considered as nonadministrative
INVESTMENT IN INTER-AMERICAN DEVELOPMENT BANK
expenses for the purposes hereof.
For payment to the Inter-American Development Bank by the Secre-
For "Limitation on administrative expenses" for the period July 1,
tary of the Treasury for the United States share of the increase in the
1976, through September 30, 1976, $2,948,000, of which not to exceed
$5,000 shall be for entertainment allowances for members of the Board
resources of the Fund for Special Operations authorized by the Acts
of Directors.
84 Stat. 1657.
of December 30, 1970 (Public Law 91-599), and March 10, 1972 (Pub-
86 Stat. 59.
lic Law 92-246), $225,000,000 to remain available until expended
TITLE V-GENERAL PROVISIONS
22 USC 283p-
Provided, That the amounts made available under this head in the
283s.
"Foreign Assistance and Related Programs Appropriations Act, 1975"
SEC. 501. No part of any appropriation contained in this Act shall
Publicity or
shall be available without limitation, notwithstanding the three pro-
be used for publicity or propaganda purposes within the United States
propaganda.
visos contained therein.
not heretofore authorized by the Congress.
SEC. 502. No part of any appropriation contained in this Act shall
Inspector
INVESTMENT IN INTERNATIONAL DEVELOPMENT ASSOCIATION
be used for expenses of the Inspector General, Foreign Assistance,
General,
For payment by the Secretary of the Treasury of the first installment
after the expiration of the thirty-five day period which begins on the
Foreign
date the General Accounting Office or any committee of the Congress,
Assistance.
of the United States contribution to the fourth replenishment of the
resources of the International Development Association as authorized
or any duly authorized subcommittee thereof, charged with con-
by the International Development Association Act of August 14, 1974
sidering foreign assistance legislation, appropriations, or expenditures,
(Public Law 93-373), $320,000,000, to remain available until expended.
has delivered to the Office of the Inspector General, Foreign Assistance,
22 USC 2841,
284m.
a written request that it be furnished any document, paper, communica-
90 STAT. 778
90 STAT. 779
Pub. Law 94-330
- 10 -
June 30, 1976
tion, audit, review, finding, recommendation, report, or other material
in the custody or control of the Inspector General, Foreign Assistance,
relating to any review, inspection or audit arranged for, directed, or
conducted by him, unless and until there has been furnished to the
General Accounting Office or to such committee or subcommittee, as
the case may be, (A) the document, paper, communication, audit,
review, finding, recommendation, report, or other material SO requested
or (B) a certification by the President, personally, that he has for-
bidden the furnishing thereof pursuant to such request and his reason
for SO doing.
Fiscal year
SEC. 503. No part of any appropriation contained in this Act shall
limitation.
remain available for obligation beyond the current fiscal year unless
expressly SO provided herein, except as provided by section 204 of
88 Stat. 1784.
Public Law 93-554.
Space and
SEC. 504. No part of any appropriation, funds, or other authority
services.
contained in this Act shall be available for paying to the Administrator
of the General Services Administration in excess of 90 per centum of
the standard level user charge established pursuant to section 210(j)
of the Federal Property and Administrative Services Act of 1949, as
40 USC 490.
amended, for space and services.
SEC. 505. Not to exceed $1,550,000 of the funds appropriated or made
available pursuant to this Act for fiscal year 1976 shall be made avail-
able to the Office of the Inspector General of Foreign Assistance:
Provided, That not to exceed $375,000 of the funds appropriated or
made available pursuant to this Act for the period July 1, 1976 through
September 30, 1976 shall be made available to the Office of the Inspector
General of Foreign Assistance.
Default
SEC. 506. Beginning three months from the date of enactment of this
countries.
Act, no part of any appropriation contained in this Act shall be used
to furnish assistance to any country which is in default during a period
in excess of one calendar year in payment to the United States of prin-
cipal or interest on any loan made to such country by the United States
pursuant to a program for which funds are appropriated under this
Act unless (1) such debt has been disputed by such country prior to the
enactment of this Act or (2) such country has either arranged to make
payment of the amount in arrears or otherwise taken appropriate steps,
which may include renegotiation, to cure the existing default.
SEC. 507. The amounts appropriated in this Act shall be available
only upon the enactment of authorizing legislation.
Short title.
This Act may be cited as the "Foreign Assistance and Related Pro-
grams Appropriations Act, 1976, and the period ending September 30,
1976".
Approved June 30, 1976.
LEGISLATIVE HISTORY:
HOUSE REPORT: No. 94-857 (Comm. on Appropriations) and No. 94-1006
(Comm. of Conference).
SENATE REPORT No. 94-704 (Comm. on Appropriations).
CONGRESSIONAL RECORD, Vol. 122 (1976):
Mar. 4, considered and passed House.
Mar. 23, considered and passed Senate, amended.
June 28, House agreed to conference report; receded and
concurred in Senate amendments with amendments.
June 29, Senate agreed to House amendments.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 12, No. 27:
July 1, Presidential statement.
90 STAT. 780
FOR INMEDIATE RELEASE
JULY 1, 1976
Office of the White House Press Secretary
THE WHITE HOUSE
STATEMENT BY THE PRESIDENT
I have signed H.R. 12203, the Foreign Assistance and
Related Programs Appropriation Act, 1976, and the period
ending September 30, 1976. The bill appropriates funds
for a variety of programs in support of U.S. foreign policy
objectives, most importantly our pursuit of a peaceful
solution to the problems of the Middle East.
Nevertheless, I have serious reservations regarding one
element of the bill, and believe it is necessary to comment
on why I have signed the bill notwithstanding my objections
to 1t.
Title I of the bill contains a provision which conditions
the availability of appropriated funds, in certain instances,
upon the acquiescence of the Appropriations Committees of each
House of Congress. This requirement violates the fundamental
constitutional doctrine of separation of powers. While simi-
lar provisions have been included in congressional enactments,
and have been found objectionable on these grounds, this
particular requirement 15 especially onerous in that it in--
trudes upon the execution of programs in nineteen different
appropriation categories.
Since I view this provision as severable from what 1s an
otherwise valid exercise of legislative authority, and because
it is presented for my signature in the last week of the fiscal
year, I am not withholding my approval. We shall continue to
work with the Appropriations Committees, as with all Committees
of the Congress, in a spirit of cooperation. He shall continue
to keep the Congress fully informed on a current basis on the
execution of the laws. However, we shall not concur in a
delegation of the powers of appropriation to two Committees
of Congress.
11 #
FORD
GERALD
LIBRARY
[Ang. 1976
DEPARTMENT OF STATE
AGENCY FOR INTERNATIONAL DEVELOPMENT
WASHINGTON. D.C. 20523
The Honorable Philip W. Buchen
Counsel to the President
The White House
Washington, D.C.
Dear Mr. Buchen:
Enclosed are the materials you requested during our
August 19 meeting relating to the committee approval
requirement contained in the foreign aid Appropriation
Act for fiscal year 1976.
Enclosure A is a copy of the guidelines which were developed
pursuant to section 113 of the fiscal year 1975 Appropriation
Act, which required prior notification to the Appropriations
Committees instead of prior approval. Enclosure B is a copy
of the first advice of a program change that we submitted
to Congress following the enactment of the fiscal year 1976
Appropriation Act. This format was prepared in response to
the President's signing statement, in which he stated that
the Executive Branch would cooperate fully with the Congress
in providing necessary information on program changes, but
could not concur in a delegation of the powers of appropria-
tion to two Committees of Congress. Enclosure C is a copy
of our current guidelines on this subject with a sample of
an advice of program change which we recently submitted to
the Appropriations Committees.
I have also enclosed a copy of a recent advice of a program
change regarding a project in Liberia which has been objected
to by a member of the staff of the Senate Appropriations
Committee (Enclosure D). It is unclear at this time whether
this objection will result in a formal disapproval by the
Committee. We will, of course, advise you immediately should
we receive a formal notice of disapproval.
GERALD
-2-
If I can provide you with any further information please
let me know.
Sincerely,
reald D.
Gerald D. Morgan, Jr.
General Counsel
GERALD FORD LIBRARY
ENCLOSURE A
APR 3 1975
MEMORANDUM FOR: AA/AFR, Mr. Adams
AA/SER, Mr. Parks
AA/EA, Mr. Gardiner
AA/PHA, Ms. Crowley
AA/LA, Mr. Kleine
AA/TA, Mr. Farrar
AA/NESA, Mr. Nooter
OLAB, Mr. Good
AA/LEG, Mr. Harvey
Ashal
FROM
: AA/PPC, Alexander Shakow
SUBJECT
: Prior Notification Requirements: Section 113
of the Foreign Assistance and Related Programs
Appropriation Act, 1975
The prior notification requirements set forth in Section 114
of the 1974 Appropriations Act have been replaced and
substantially altered by Section 113 of the 1975 Appropriations
Act. (The language of both sections together with an extract
from the Conference Report are attached.)
The principal aspects of the new Section 113 notification
requirements are:
- Notification is required for any activity not contained
in the 1975 Congressional Presentation--as was the case
under Section 114.
- Notification is required for any increase in the level
of funding for an activity above the amount shown in
the 1975 Congressional Presentation. (Under Section 114
this was not a legal requirement although we had an
agreement with the appropriations committees to "informally"
notify in the case of major increases.)
- Notification is required 15 calendar days prior to the
obligation of funds. (Section 114 required notification
5 days prior to the obligation of funds.)
- The notification requirement is expanded to include:
the UN Environment Fund, Indus Basin, Narcotics, Portugal
and Portuguese territories, Administrative Expenses-A.I.D.,
a number of non-A.I.D. activities (Peace Corps, Inter-
American Foundation, assistance to Palestine and Soviet
refugees).
The new Section 113 notification requirements are effective as of
March 26.
BERALD LIBRARY FORD
-2-
In order to comply with the new notification requirements, the
following procedures are effective immediately:
1. Coverage
a. Notification is required for activities proposed for
funding in the current fiscal year which differ from
the 1975 Congressional Presentation in the following
ways:
- The activity was not included in the 1975 CP.
- The scope or purpose of the activity is
substantially different from that described
in the CP so that it constitutes a new activity.
This applies to amendments as well as initial
authorizations or obligations.
- The funding source is different from that shown
in the CP, i.e., a shift between appropriation
categories.
- The activity was presented in the CP as a "shelf"
item.
- The proposed funding is in excess of the amount
contained in the current CP.
2. Screening responsibilities
The Bureau/Office within whose jurisdiction the particular
activity falls is responsible for determining whether
notification is necessary and for initiating the notification
process.
3. Format and Contents
Two documents will be required: a brief covering statement
per Attachment A and a new or revised grant or loan activity
data sheet in the same format used for the FY 1975 Congressional
Presentation. Letters for the Chairman and Ranking Minority
Member of the Appropriations Committees in each House are
not required.
GERALD FORD LIBRARY
-3-
Notifications should anticipate and respond to known or
potential Congressional concerns and questions. for
example
- Does the new activity mean an increase in the
country total? If so, are there any actual or
planned reductions to offset the increase and
what are they?
- Is the proposed increase in funding level under-
standable and justifiable based on altered cost
assumptions or a change in the nature of the
activity?
- Is there possible disagreement over the source of
funding (appropriation account) to which the
activity is to be charged?
4. Clearance procedures
Notification must be cleared by: (1) the responsible AA
or DAA, (2) GC/LPC, Denis Neill, (3) PPC/RB, Glenn Cauvin.
The Bureau/Office proposing the notification is responsible
for obtaining these clearances:
One clean original (with clearances on the back) together
with three xerox copies should be provided to LEG/LPCS,
Attention: Andrew Westwood. LEG/LPCS will promptly
transmit each notification to Congress.
5. Reporting procedures
Bureaus/Offices are asked to submit to LEG/LPCS, by memorandum
with copy to PPC/RB, any change in their designated prior
notification coordinating officer and alternates (Attachment C)
LEG/LPCS is responsible for informing the Bureaus/Offices
of the date of delivery of the notification and of any
Congressional inquiries, comments or objections. Obligations
may take place 15 days after date of delivery unless
otherwise informed.
LIBRARY GERALD R. FORD
Attachment A
Notification to the Congress
COUNTRY
: (Or other geographic identification)
PROJECT TITLE
: (Per CP if applicable)
PROJECT NUMBER
: (Per CP if applicable)
APPROPRIATION CATEGORY
INTENDED OBLIGATION : (Indicate amount)
Open the narrative with one of the following paragraphs:
In accordance with Section 113 of the Foreign Assistance
and Related Programs Appropriation Act, 1975, we are
providing notification that we (either (a) intend to
obligate funds or (b) intend to obligate funds in excess
of the amounts included in the Congressional Presentation)
for the following grant activity.
In accordance with Section 113 of the Foreign Assistance
and Related Programs Appropriation Act, 1975, we are
providng notification that we (either (a) intend to
authorize the use of funds on a loan basis or (b) intend
to authorize the use of funds on a loan basis in excess
of the amounts included in the Congressional Presentation)
for the following activity.
Then proceed with a brief explanation outlining the reason why the
activity was not included in or is different from the Congressional
Presentation and is being forwarded for financing at this time.
While there is no prescribed formula for the content of the
notification, it must be sufficiently detailed to define the nature
of the activity for which funds are appropriated, its purpose,
country location and cost.
NOTE: Do not attempt to justify the activity in this space. A
current grant or loan data sheet must be attached and should
address that subject.
Attachment
Activity data sheet
FORD : GERALD LIBRARY
Attachment B
Section 114 Notification Requirement
Sec. 114. None of the funds made available under this Act for
"Food and Nutrition, Development Assistance," "Population Planning
and Health, Development Assistance," "Education and Human Resources
Development, Development Assistance," "Selected Development
Problems, Development Assistance," "Selected Countries and
Organizations, Development Assistance," "International Organiza-
tions and Programs," "American Schools and Hospitals Abroad,"
"International Narcotics Control," "Indochina postwar reconstruction
assistance," "Security supporting assistance," "Military assistance,"
or "Migration and refugee assistance" shall be available for
obligation for activities, programs, projects, countries, or
other operations unless the Committees on Appropriations of the
Senate and House of Representatives are previously notified five
days in advance.
BERALD FURD LIBRARY
Attachment B
Section 113 Notification Requirement
Sec. 113. None of the funds made available under
this Act for "Food and Nutrition, Development Assistance,"
"Population Planning and Health, Development Assistance,"
"Education and Human Resources Development, Development
Assistance," "Selected Development Problems, Development
Assistance," "Selected Countries and Organizations,
Development Assistance," International Organizations
and Programs," "United Nations Environment Fund,"
"American Schools and Hospitals Abroad," "Indus Basin
Development Fund," "International Narcotics Control,"
Assistance to Portugal and Portuguese colonies in Africa
gaining independence," "Administrative expenses,
Agency for International Development," "Indochina postwar
reconstruction assistance," "Middle East special requirements
fund," "Security supporting assistance," "Military assistance,"
"Inter-American Foundation," "Peace Corps," "Migration and
refugee assistance," "Assistance to Refugees From the Soviet
Union," or "Assistance to Palestinian Refugees" shall be
available for obligation for activities, programs, projects,
countries, or other operations unless the Committees on
Appropriations of the Senate and House of Representatives
are previously notified 15 days in advance.
FORDO & GERALD LIBRARY
Attachment B
FY 1975
CONFERENCE REPORT
The conferees agree that any activity, project, or other
operation specifically set forth by amount to be obligated in
fiscal year 1975 and by country in the fiscal year 1975
Congressional Presentation Document shall be deemed to have
been justified and the Committees on Appropriations informed.
Similarly, amounts not in excess of the amounts proposed therein
for obligation in fiscal year 1975 shall be deemed to have
been justified and the Committees on Appropriations informed.
Any activity, project or other operation not specifically set
forth by amount to be obligated in fiscal year 1975 and by country
in the fiscal year 1975 Congressional Presentation Document shall
be deemed not to have been justified and the Committees on
Appropriations not informed. Similarly, amounts in excess of the
amounts proposed therein for obligation in fiscal year 1975 shall
be deemed not to have been justified and the Committees on
Appropriations not informed.
FORD i OERALD LIBRARY
ENCLOSURE B
DEPARTMENT OF STATE
AGENCY FOR INTERNATIONAL DEVELOPMENT
WASHINGTON
DEPUTY ADMINISTRATOR
Honorable Otto E. Passman
JUL 7 1976
Chairman, Subcommittee on
Foreign Operations
Committee on Appropriations
House of Representatives
Washington, D. C.
Dear Mr. Chairman:
In our continuing desire to cooperate with the Congress
and your Committee, I want to inform you of several changes
in the Agency's program during the Transition Quarter.
These changes do not represent new programs but are simply
FY 1976 programs which we now plan to undertake during the
Transition Quarter. As the FY 1976 Appropriations legislation
did not become law until the last day of the fiscal year,
it has not been possible to complete our FY 1976 program as
planned. All of the the projects and programs on the attached
list were included in the A.I.D. FY 1976 Congressional Presen-
tation or were notified during FY 1976. These are ready
and we plan to obligate them during the Transition Quarter.
The FY 1976 descriptions of these projects provided Congress
remain valid. Copies of these project descriptions are attached
for your information.
Sincerely yours,
John E. Murphy
Attachment: a/s
BERALD june LIBRARY
DEPARTMENT OF STATE
AGENCY FOR INTERNATIONAL DEVELOPMENT
WASHINGTON
DEPUTY ADMINISTRATOR
JUL 7 1976
Honorable Garner Shriver
Subcommittee on Foreign Operations
Committee on Appropriations
House of Representatives
Washington, D. C.
Dear Congressman Shriver:
In our continuing desire to cooperate with the Congress
and your Committee, I want to inform you of several changes
in the Agency's program during the Transition Quarter.
These changes do not represent new programs but are simply
FY 1976 programs which we now plan to undertake during the
Transition Quarter. As the FY 1976 Appropriations legislation
did not become law until the last day of the fiscal year,
it has not been possible to complete our FY 1976 program as
planned. All of the the projects and programs on the attached
list were included in the A.I.D. FY 1976 Congressional Presen-
tation or were notified during FY 1976. These are ready
ánd we plan to obligate them during the Transition Quarter.
The FY 1976 descriptions of these projects provided Congress
remain valid. Copies of these project descriptions are attached
for your information.
Sincerely yours,
Murphy
Attachment: a/s
GERALD FORD LIBRARY
DEPARTMENT OF STATE
AGENCY FOR INTERNATIONAL DEVELOPMENT
WASHINGTON
DEPUTY ADMINISTRATOR
JUL 7 1976
Honorable Daniel Inouye
Chairman, Subcommittee on
Foreign Operations
Committee on Appropriations
United States Senate
Washington, D. C.
Dear Mr. Chairman:
In our continuing desire to cooperate with the Congress
and your Committee, I want to inform you of several changes
in the Agency's program during the Transition Quarter.
These changes do not represent new programs but are simply
FY 1976 programs which we now plan to undertake during the
Transition Quarter. As the FY 1976 Appropriations legislation
did not become law until the last day of the fiscal year, it
has not been possible to complete our FY 1976 program as plan-
ned. All of the projects and programs on the attached list
were included in the A.I.D. FY 1976 Congressional Presentation
or were notified during FY 1976. These are ready and we plan
to obligate them during the Transition Quarter.
The FY 1976 descriptions of these projects provided Congress
remain valid. Copies of these descriptions are attached for
your information.
Sincerely yours,
Murphy
Attachment: a/s
GERALD FORD LIBRARY
DEPARTMENT OF STATE
AGENCY FOR INTERNATIONAL DEVELOPMENT
WASHINGTON
JUL 7 1976
DEPUTY ADMINISTRATOR
Honorable Edward Brooke
Subcommittee on Foreign Operations
Committee on Appropriations
United States Senate
Washington, D. C.
Dear Senator Brooke:
In our continuing desire to cooperate with the Congress
and your Committee, I want to inform you of several changes
in the Agency's program during the Transition Quarter.
These changes do not represent new programs but are simply
FY 1976 programs which we now plan to undertake during the
Transition Quarter. As the FY 1976 Appropriations legislation
did not become law until the last day of the fiscal year,
it has not been possible to complete our FY 1976 program as
planned. All of the the projects and programs on the attached
list were included in the A.I.D. FY 1976 Congressional Presen-
tation or were notified during FY 1976. These are ready
and we plan to obligate them during the Transition Quarter.
The FY 1976 descriptions of these projects provided Congress
remain valid. Copies of these project descriptions are attached
for your information.
Sincerely yours,
John E. Marry Murphy
E
Attachment: a/s
FORD
GERALD
LIBRARY
PROJECT TITLE
ACCOUNT
FY 76 CP PAGE OR NOTIFICATION
Number
Number
Egypt-Electric Power
Plant
Supporting Asst.
57
Egypt-Cement Plant
Supporting Asst.
58
Egypt-Technical and
Feasibility Studies
Supporting Asst.
60
Egypt-Cargo Handling
Equipment
Supporting Asst.
61
Egypt-Mahalla Textile
Plant
Supporting Asst.
62
Jordan-Technical Servs.
and Feasibility
Supporting Asst.
Studies
64
Jordan-Road Improve-
ment
Supporting Asst.
65
Jordan-School Con-
struction
Supporting Asst.
66
Portugal-School Con-
struction
Supporting Asst.
88
Syria-
(a) Damascus-Dera'a
Highway
(b) Euphrates Basin
Irrigation
Supporting Asst.
90
Egypt-PVC Pipe
Drainage
Supporting Asst.
106
Egypt-Bank of
Alexandria
Supporting Asst.
107
Egypt-Rural Health
Service
Supporting Asst.
109
Egypt-Commodity
Import Program
Supporting Asst.
7
BERRAD FORD LIBRARY
- 2 -
PROJECT TITLE
ACCOUNT
FY 76 CP PAGE OR NOTIFICATION
Number
Number
Egypt-Gas Turbine
Generators
Supporting Asst.
28
Jordan-Budgetary
Support
Supporting Asst.
49
Portugal-Technical
Consultants
Supporting Asst.
85
Greece-Commodity
Imports
Supporting Asst.
82
Bahrain-Development
Administration
Supporting Asst.
108
Cyprus-Disaster Relief
& Rehabilitation
Activities
Disaster Relief
78
FORD : LIBRARY GERALD
LIBRARY
FORD
GERALD
Country: BAHRAIN
GRANT ACTIVITY DATA
TABLE III
TITLE
FUNDS
PROPOSED OBLIGATION ($000)
FY 76
Development Administration
Security Supporting Assistance
600
51h Q. 100
PRIOR REFERENCE
INITIAL OBLIGATION
SCHEDULED FINAL OBLIGATION
NUMBER
Page 209, NESA FY 76 Budget Submission
FY: 1976
FY: 1977
Project Target and Course of Action: This project is
5th Quarter: For the interim quarter, $100,000 is re-
designed to provide to the Covernment of Bahrain (GOB)
quested to continue ongoing programs.
a variety of U.S. technical expertise to develop and
improve current systems of administration and manage-
ment, to research and develop new management systems,
and to train GOB counterparts in the techniques of
modern administration and management. Specific organi-
zations within the COB will become responsive to
development needs and operate programs adapted to the
requirements of their constituencies. Key leaders will
understand modern concepts of administration and manage-
ment and will be able to assist their organizations in
the development and implementation of effective
administrative and managerial practices.
Background: A list of requirements for technical
services is being prepared by the GOB for discussion
with A.I.D. From that list specific areas will be
selected and targeted for U.S. assistance.
FY 1976 Program: For FY 1976 a total of $600,000 is
being requested to finance the services of up to ten
U.S. technicians for assistance to the targeted areas
agreed to by the GOB and A.I.D. These funds will
provide for approximately 144 man-months of services.
U.S. DOLLAR COST (In Thousands)
PRINCIPAL CONTRACTORS/
AGENCIES
Obligations
Expenditures
Unliquidated
OBLIGATIONS
Through 6/30/74
-0-
-0-
Actual FY 1975
Proposed FY 76
-0-
Proposed 5th Q.
Contract/
Direct
Contract/
Direct
Contract/
Actual FY 75
-0-
-0-
Cost Components
Other
Total
Other
Direct
Total
Other
Total
AID
Agency
AID
Agency
AID
Agency
Actual
U.S. Technicians
-
-
-
-
-0-
-0-
600
600
-
-
-0-
100
through 6/30/75
Participants
-
-
I
I
I
I
I
I
-
Not yet selected.
-
-
I
I
-
-
Commodities
-
I
I
Future Year
Estimated
Proposed FY 76
600
Obligations
Total Cost
Other Costs
I
I
I
-
-
-
I
-
I
Proposed 5th
I
Total Obligations
-
-
-
I
Quarter
600
600
I
100
100
400
1100
108
niry
'VI''
GRANT ACTIVITY DATA
PROPOST u OBLIGATION 110001
FUNDS
Security Supporting Assistance
490,000
in Q.
Suez Reconstruction Cement Plant
PRICE REFERENCE
INITIAL OBLIGATION
SCHEDULE DINAL OBLIGATION
63-12-230
MY 1976 ME Pence and Security upport
FY:
175
FY:
'76
Project Turget and Course of Action: This project'
In order 1 reduce cement imports, to support the
will finance the foreign exchange costs required for
economic owth of Egypt, and especially to relieve the
construction of a cement plant with the capacity to
strain 0:1 arrent plant capacity, which is unable to
produce one million metric tons annually. This
supply t':- Buez Canal Area Peconstruction Program's
added capacity will provide a significant amount of
large req rement for cement, the Government of Ecypt
U.e additional cement needed for the reconstruction
has reque ed that the United States finance a new
effort in the WE! damaged Suez Canal area.
cement plant with the capacity to produce one million
tons of coment annually. The myriad cement- consuming
Background: As an important adjunct to its moves
activities in the total Suez Area Reconstruction effort
toward Leace with Israel, the Egyptian Government has
include the needs for housing, culverts, pipes, poles,
developed a program of rapid reconstruction of the
roads, bridges, construction of industries and public
Suez Canal area and a complementary, long-range
utilities, and improvement of the infrastructure
national economic development program.
supporting the agricultural sector.
The planned government construction alone will require
BY 1976 Program: The $90 million will provide foreign
massive quantities of cement, and there will be a
exchange costs for construction of a new cement plant,
similar increase in demand by the private sector,
including electric power offsites. The Covernment of
which has had virtually no real growth since 1967.
Egypt will finance the local costs requiring Egyptian
Even with little investment capital available during
pounds, currently estimated at ЬЕ 23 million (equivalen
the past eight years due to military expenditures,
to #54 million at the official rate of exchange).
reports indicate that available cement supply barely
Dollar financing would fund equipment and services of
satisfied domestic demand for that period. The
U.S. origin required in the construction.
Government of Egypt has outlined a program to more
than double by 1981 the current level of cement
production. Projections show there will be a need
FORD
LIBRARY
for new production fucilities capable or producing
an added 3.5 million tons per year to satisfy even
the most conservative estimate of domestic demand
your cement expected by 1978.
unity: EGYPT
LOAN ACTIVITY DATA
ILL
runos
PHONOSED OBLIGATION 1300'01
Security Supporting Assistance
31,000
Cargo Handling Equipment
KII,U or LOAN
INITIAL OBLIGATION
(Port, of, Alexandria)
Project Loan
76
FY:
Project Target and Course of Action: This program
improvement were requested. The need for equipment was
is to provide basic cargo handling equipment which
identifie as the major and primary constraint; notably,
is required to improve the efficiency of operation
there is serious shortage of mobile cranes, forklift
oi the Port of Alexandria. The increased off-
crucks, nsport equipment, bulk cargo handling
loading capacity of the port will result in consider-
coulpment and marine equipment, among others.
able financial savings by decreasing demurrage
charges for vessels, which often must wait a consider-
T'ie IBRD and the Government of Japan have agreed with
able time prior to unloading.
the Egyp: an Government to fund different but complement
arv segments of the Port of. Alexandria improvement
Background: Since 1967, the Port of Alexandria
program, and have coordinated their involvement with
has been the only Egyptian port capable of handling
AD.
major international freight, and, therefore, has
over-extended its facilities to the current point
FY 1976 Program: ^ loan of $31 million will finance
01 incipient breakdown. Even after Port Said, Sucz
purchase (rom U. S. sources of cargo handling equip-
City and other ports are put into operation,
ment to support the Egyptian Covernment's program. of
Alexandria will remain Egypt's major port.
improving the operation of the Port of Alexandria, and
other equipment identified as necessary for effective
Port congestion at Alexandria has increased consider-
port operations.
ably over the past year largely due to the need for
commodities in the massive effort of reconstructing
the war-damaged areas and for basic items, including
Coodstuffs, required by Egypt's large population.
with the anticipated growth of the Egyptian economy,
FORD LIBRARY
current facilities at the Port of Alexandria would
a.
continue to be inadequate even with other ports
operating.
In. April, 1975, the Covernment of EGYPE requested the
11. S. to provide advisory assistance in an effort to
bring some immediate relief to the port congestion
nt Alexandria. Alchough the focus was on the day-by-
abily operation of the port, including organization,
traffic control and scheduling, as part of the
assistance, recommendations for required longer term
Country: Egypt
LOAN ACTIVITY DATA
TABLE IV
TITLE
FUNDS
PROPOSED OBLIGATION 130001
Mahalba Textile Plant Rehabilitation
Security Supporting Ausistance
$96,000,000
KIND or LOAN
INITIAL OBLICATION
Project Loan
FY: 175
Project Target and Course of Action: This project loan
To better assess the Company's needs in equipment and
will finance a major rehabilitation and expansion of
Egypt's largest textile manufacturing company. This
their planning, productive and maintenance capacities
AID financed = major U.S. textile consultant team of
important facility is faced with rapidly deteriorating
equipment and machinery on a large scale. This loan
seven men to evaluate expected needs at the plant sit
Egypt. The results of their detailed examination of
will finance textile machinery and other plant support
plant and its operations have provided the basis for
equipment such as electric power generators from U.S.
project proposed here.
sources. Improvement of the existing plant will bring
about the increased productivity that will help to
meet Egypt's growing needs for textiles.
FY 1976 Program: A loan of $96 million is requested
provide sufficient resources to finance new equipment
related technical assistance from U.S. sources to
Background: Over the past fifty years, Egypt has
rehabilitate Egypt's major textile plant.
attempted to construct textile manufacturing
facilities to supply its own population and a
small export market. In doing so, it constructed a
large textile facility at Mahalla in the Nile delta
area where it produces a wide varicty of cotton,
woolen and blended natural and synthetic fiber
textiles and some finished garments. With periodic
expansion since 1927, it has grown to be one of the
world's largest facilities of its kind, on one site.
a. FORD LIBRARY
However, in recent years it has been increasingly
difficult to maintain productivity. With limited
investment resources available, Mahalla has not
replaced a large amount of machinery that is old and
of decreasing productivity. Although the plant's
maintenance capacity is good and equipment repair
and rehabilitation is performed at a high level,
increasing equipment age has resulted in unreasonably
high machinery breakdown rates and longer repair
times, with an increasing danger of productivity
owniry: Frypt
LOAN ACTIVITY DATA
FUNDS
PHOPOSED OULIGATION 110001
Security Supporting Assistance
$31,000,000
PVC Pipe Drainage
KIND OF LUAN
INITIAL OULIGATION
Project Loan
FY: 1976
rolect Target and Course of Action: This project will
FY 1976 Program: A loan of $31 million is requested to
inance in-country production of polyvinyl chloride
purchase from U.S. sources (a). three plants to produce
PVC) drainage pipe. The pipe is an essential component
plastic drainage pipe, (b) sufficent raw materials for
of a drainage program for about 500,000 acres of land in
production or the amount of pipe required to install a
Upper Egypt aimed at increasing the agriculture
drainage system in about 500,000 acres of agricultural
productivity of that area.
land, and technicians to ensure effective operation
and mainter. ce of the plants.
Background: Over recent years, major agricultural areas
in Ecypt have been suffering from declining productivity
due to poor drainuge.. In an attempt to restore these
areas, the Government of Egypt has requested AID and
World Bank assistance to finance a drainage program
utilizing PVC pipe to drain planted areas and sectional
open drains for system drainage. In all, some 500,000
acres of traditionally productive land' will be
reconstituted, some 01' which has had significant drops
in productivity and some of. which has been removed from
production because of high levels of salinity.
This project will finance three plants to manufacture PVC
pipe in the general geographic locations of the irrigated
arous that will utilize it. In addition, it will finance
a rive-year requirement of polyvinyl chloride resin for
pipe production and a technical assistance team for plant
erection, start-up and operation. The World Bank will
GERALD FORD LIBRARY
finance the installation of the drainage system and a
small Bilharzia control program to control that canal-
related disease.
Country: Bypt
LOAN ACTIVITY DATA
1.1.2
FUNDS
PHOPOSED COLICATION 110001
Bank or Alexandria
Security Supporting Assistance
$ 32,000
KIND OF LOAN
INITIAL OULIGATION
Project Loan
FY: 1976
Project Target and Course of Action: The purpose of this
BOA has a competently staffed lending unit which carefully
project is to provide the means by which private as well
evaluates all investments in relation to their technical,
as public sector enterprises in Egypt can obtain the
economic and financial soundness.
foreign exchange credits they need to make productive
investments. The proceeds of the proposed loan to the
FY 1976 Program: A $32 million loan will be made to the
Government of Egypt would be re-loaned to the Bank of
Government of Egypt for utilization by the Bank of
Alexandria to be in turn loaned to Egyptian enterprises
Alexandria for sub-loans to private sector and public sec
in need of U.S. source equipment and services to achieve
industries. These sub-loans will follow banking criteria
investment objectives.
established by the loan agreement and will be at the term
15 years maturity with a 3-year grace period and 10% annu
Background: The Bank of Alexandria is the Government
interest.
of Egypt's designated source of term lending to the
private industrial sector. The Industrial Development
It is anticipated that from 75 to 100 individual private
Association (IDA) has provided two separate credits to
sector enterprises will be recipients of these sub-loans.
the Bank or Alexandria (ВОЛ) for purposes similar to
Only U.S. source goods and services will be eligible for
those of this loan. The latest credit for $25 million
fin ancing with these funds and all procurement will adhe
was provided in July 1975 and represents the sole
to AID regulations.
source or foreign exchange available to ВОЛ at this
time. The requirements for foreign exchange for term
investment, however, far outweigh these existing
resources. As of March 31, 1975, 121 industrial
projects with proposed investments of approximately $138
R.
million had been approved by BOA and were awaiting
GERALD
FORD
implementation pending availability of financing.
The proceeds of this loan together with the aforementioned
LIBRARY
credit from IDA will constitute the only source of foreign
exchange available for private sector industrial invest-
ment purposes from institutional sources in Egypt. We
therefore expect these loans to make a major contribution
to implementation of the Government of Egypt's policy of
expansion and diversification of private industry, which
in turn supports its economic liberalization policy.
BOA's historical record demonstrates the professional
capacity to assume additional financing responsibility.
Commin
EGYPT
GRANT ACTIVITY DATA
1.1.1
FUNDS
PROPOSED OBLIGATION ($800)
Security Supporting Assi nance
FY 10 8,000
15111 C.
Technical and Feasibility Studies
PHIOR REFERENCE REP PP 24, FY 1976 M.C.
INITIAL OBLIGATION SCHECULED FINAL OULIC.
NUMBER
Peace and Security S. A. rain
FY: 76
FY: 76
Project Target and Course of Action: This project will
country assistance in a way that will produce bal:
finance the cost of the services of U.S. firms, agencies
expansion of infrastructure and income producing
or individuals to perform technical, analytical, pre-
proj CS. The U. S. expertise employed for chese
Ceasibility and feasibility studies for prospective
studies will be drawn largely from the U. S. priva
development projects and programs in Egypt.
sector. However, U. S. Government agencies also W
be attlized in those cases where the best source
Progress to Date: One of the most serious constraints
expermise l!cs within the Government.
)
on Egyptian economic development at this point is the
shortage of thoroughly planned, financeable projects
FY 1976 Program: This request for $8 million will
and programs to abşorb widespread offers of assistance
finance U. S. expertise to conduct an expanded num
and interested private investment capital. While
of studies which includes among others: (1) Power
many prospective donors have made offers of financial
Demand, (2) Environmental Studies, (3) Grain Dist
assistance for projects in Egypt, much of this
tion, (4) Water Systems for Cairo and Alexandria,
assistance has not yet been committed due to a paucity
(5) Agriculture Equipment, (6) Investment Guide,
of projects that have been professionally researched,
(7) Electrical Distribution System, (8) Paraxylene
analyzed and found to be economically feasible.
dimethylterephthalate production for textiles,
(9) National Electrical Energy Control System,
Egypt lacks the internal resources to conduct the
(10) Water and Sewage Systems for Sucz City,
studies needed to effectively utilize the economic
(11) Telecommunications, and (12) Improved operatic
development assistance potentially available from
textile plants. In addition, the grant will Clual
donors and investors, and has requested our assistance
services of U. S. technicians that may he requir
in conducting such studies. American expertise utilized
ensure effective start-up of ATD financed project
in chis way will improve the speed and effectiveness of
the services of two longer term advisors who will
Crypt's economic development program, identify specific
under the auspices of the newly created U.S. -Egyp
projects and programs towards which current offers of
Business Council in the development of technical
assistance can he applied, and,as sound activities are
feasibility information on projects in Egypt of
developed, help attract and put to use additional third
potential interest to private investors.
U.S. DOLLAR COST IIn Thousands)
PRINCIPAL
AGENCIES
Obligations
Expenditures
Unliquidated
OBLIGATIONS
Extimated FY 1075
Proposed FY 76
FORD
wough 01/10/11
Proposed 5in O.
various
Contract/
Contract
Contract/
Direct
Direct
Other
Direct
Cost Components
Oiner
To "
Total
winer
T
timated FY 75
AID
Agency
A10
Agency
AID
Agency
07V839
sector
immund
U.S. Technicians
8,000 8,000
"Augh amoris
Participants
Future Year
Entimated
Commodities
FY 70
8,000
Obligations
Total Ciril
Other Colls
R 000 R
country.
GRANT ACTIVITY DATA
TABI
PROPOSED OBLIGATION (1000)
TITLE
FUNDS
FY IC
3111 Q.
I
Improvement of Rural Health Services
Security Supporting Assistance
1,800,000
INITIAL OBLIGATION
SCHEDULED FINAL OBLIGA
PRIOR REFERENCE P 26 in FY 1976 C.P. for
NUMBER 263-11-590
Middle East Peace and Security S.A.
FY: 1976
FY:
1980
Project Target and Course of Action: To improve existing
through in-country as well as participant training,
government rural health services in Egypt through the
through the provision of a series of short-term U.S.
provision of advisory services, training, and equipment
advisors, and by making available supplies and
which will be needed to upgrade the productive capacity
educational materials as means of better reaching
of the system, particularly in preventive health,
villagers with health information.
environmental sanitation and family planning.
FY 1976 Program: With $1,800,000 of FY 1976 funds
Progress to Date: The Government of Egypt maintains and
A.I.D. intends to provide a contract team to work wit
operates approximately 2,800 health clinics located at
Egyptian Ministry of Health personnel in the training
village centers throughout the rural areas of the
medical personnel and the establishment of public
country. Through this chain of facilities, the
health programs through rural clinics ($600,000); lor
Government is able to reach an estimated 85% of its non-
term and short-term training and observation tours
urban population with minimum medical services. For the
($200,000); and equipment and material such as simple
most part, however, these services have been limited to
filtration devices, communication equipment, vehicles
treatment of disease; little has been accomplished in
medical equipment and supplies ($1,000,000).
developing a preventive medicine program. There is
virtually no outreach capacity in this system and little
cognizance of its need. Yet, a large share of the
disease caseloads of these clinics - e.g., diarrheal
FORD
diseases -- are directly attributable to poor environ-
mental health conditions and to a lack of basic information
GERALD
on nutrition and health by the general populace. A major
LIBRARY
effort in this project will be directed toward training
of rural health workers and toward increasing among the
rural population the general level of environmental
health awareness and familiarity with family planning
principles and activities. This will be accomplished
PRINCIPAL CON
U.S. DOLLAR COST (In Thousands)
AGENCIES
Obligations
Unhquidated
OBLIGATIONS
Expenditures
Department
I
I
-
Estimated FY 1075
Proposed FY 70
Proposed 5111 0.
Health, Edi
ough 6/10/74
Contract/
Contract
Contract/
Direct
Direct
tion and We
Direct
Cost Companents
Other
Total
Other
Total
Other
Total
imaint FY 75
-
-
AID
Rijency
AID
AID
-
Agency
Aguncy
and various
U.S. Technicians
600
600
other contì
-
imaled
-
-
-
sugh 6/30/75
Participants
200
200
I
Future Year
Estimoted
Commodities
1,000
-
1,000
noial FY 76
1,800
Obligations
Total Cost
Other Cosss
-
-
-
Insural 5111
1,200
600
1,800
-
6,050
7,850
Total Obligations
Arter
Country: ECYPT
LOAN ACTIVITY DATA
TABLE IV
TITLE
FUNDS
PROPOSED OBLIGATION ($000)
Commodity Import Program II
Security Supporting Assistance
FY 1976 250,000
KIND OF Activity
INITIAL OBLIGATION
Program Loan
FY: 1976
Project Target and Course of Action: The Commodity
Import Program provides the Covernment of Egypt with
loan financing to import, primarily from U.S. sources,
machinery and equipment, spare parts and raw and semi-
finished goods needed by its agricultural and industrial
sectors to increase domestic production.
Progress to Date: Despite sizeable amounts of
assistance from other donor countries over the past
two years, Egypt continues to face extremely difficult
balance of payments problems and has requested support
in the form of commodity financing. Without this kind
of assistance, Egypt, under its current financial
circumstances, would be unable to continue to import
the goods it badly needs in its program of recon-
struction and economic revitalization.
During FY 1975, IBRD and A.I.D. loans helped sub-
2
FORD
stantially to alleviate Egypt's current difficulties;
additional commodity financing loans are expected in
FY 1976 from IBRD and also from other countries such
GERALD
as Iran, Japan and the European nations. With a
LIBRARY
projected foreign account deficit for 1976 well in
excess of $2 billion, Egypt will continue to need
substantial additional concessional financing from
other sources as well.
FY 1976 Program: $250 million is requested to con-
tinue broad scale support to the Egyptian economy which
was begun in FY 1975. As was true of the FY 1975
loans for this program, these funds will be utilized
to procure, from U.S. sources, a wide range of
commodities needed by the agriculture and industrial
sectors of Egypt, which continue to suffer the effects
of pervasive under-investment and foreign exchange
shortage over the past several years.
Country: EGYPT
LOAN ACTIVITY DATA
TABLE IV
TITLE
FUNDS
PROPOSED OBLIGATION ($000)
Security Supporting Assistance
FY 76 60,000
Gas Turbine Generators
Kind of Activity
INITIAL OBLICATION
Project Loan
FY,1976
Project Target and Course of Action: The purpose of
FY 1976 Program: A loan of $60 million is required
this project is to provide turbine generators capable
to provide gas turbine generators of U.S. manu-
of producing 360 MW of electric power. These gener-
facture which will be used by the Government of
ators would provide reliable power to an expanding
Egypt in their national electrification plan.
industrial area 25 kilometers south of Cairo, and, at
the same time, relieve the strain on the regional power
facilities.
Background: The Ministry of Electricity of the Govern-
ment of Egypt has projected the increases in power
demands for Egypt for the next ten years and has also
outlined the plan to install additional power-gener-
ating capacity to meet these increases in a time-phased
manner. This comprehensive national energy plan under-
lines some periods of deficiencies in the generation of
power, one of which is the present shortage in the major
industrial area of Helwan. The use of turbine gener-
ators is quite appropriate at Helwan because they can
be put into operation very quickly to supply the
immediate need brought about by the increased indus-
trial activity in the area.
In the future, when sufficient power from other
facilities comes on line to serve Helwan, the turbine
generators could be moved to other deficit areas.
As the planned national electric grid network takes
BERALD FORD LIBRARY
shape and the turbine generation no longer is needed
as a primary power source, the turbines then would be
utilized only during peak times or as a standby power
source.
28
Country: CREECE
LOAN ACTIVITY DATA
TITLE
rynnis
PROPOILD OBLIG A TION 150001
Commodity Import Program
Security Supporting Assistance
65,000
KIND OF LOAN
INITIAL OULICA TION
1
Commodity Import
FY:
1976
This commodity import loan will provide a wide range
of commodities required for improved production in
the agricultural and industrial Bectors. The loan will
provide short-run assistance to finance machinery, spare
parts, equipment and essential materials and durable goods
needed to assist the Creck Covernment's efforts to modern-
ize and restructure agriculture and industry with a great-
er emphasis on export-oriented investment and the develop-
ment of local energy resources. Loan terms will be 25
years at 5 percent with a 5 year grace period.
LIBRARY GERALD FORD
82
Country: JORDAN
SECURITY SUPPORTING ASSISTANCE LOAN ACTIVITY DATA
TABLE
TITLE
FUNDS
PROPOSED OBLIGATION ($000)
Road Improvement
Security Supporting Assistance
4,000
KIND OF LOAN
INITIAL OBLIGATION
Project Loan
FY, 1976
Goal: A Government of Jordan goal is to induce struc-
loan will be used to finance design, supervision of con
tural changes in the Jordan economy through improvement
struction, and construction of selected rural roads. I
of basic infrastructure, thereby achieving a more eq-
criterion used for selection of roads to be constructed
uitable distribution of national income.
or improved is the impact that the road improvements wi
have on the movement of commodities to market areas.
Purpose: To provide improved access to commercial mar-
kets for the rural population.
A.I.D. Financed Inputs
Background: The Government of Jordan long has recog-
MPW Force Account Contribution
$3,000,000
nized the necessity to integrate its rural population
into the mainstream of the Jordanian economy. Govern-
Private Construction Contractor
1,000,000
ment programs are being designed to improve the qual-
ity of life of the rural population. A major obstacle
$4,000,000
to development in many rural areas is the absence of
adequàte roads over which produce can be brought to
market without excessive spoilage. Under the "Five
Year Plan for Economic and Social Development, 1976-
1980" the Government of Jordan plans to extend and im-
prove its road system, and will expend about $112 mil-
lion equivalent for this purpose during the Plan period.
Improvements proposed include the construction of new
FORD
highways, resurfacing of primary and secondary roads,
and construction of village roads.
GERALD
LIURARY
Major Outputs: Improvement of approximately 105 miles
of roads.
Host Country and Other Donors: $1.5 million equivalent
for local currency costs associated with supervision of
construction and construction to be provided by the
Government of Jordan, Ministry of Public Works (MPW).
1076
T.D.
Country: JORDAN
GRANT ACTIVITY DATA
TABLE IV
TITLE
FUNDS
PROPOSED OBLIGATION ($000)
Security Supporting Assistance
FY 1976 57,000
Budgetary Support
Kind of activity
INITIAL OBLICATION
Cash Crant
FY: 1971
Project Target and Course of Action: The purpose of
this activity is to provide budget support to the
As a result of the November 1974 Rabat Summit Conference,
Arab oil-producing states pledged up to $300 million a
Jordan Covernment to enable the government to maintain
year to Jordan in economic and military assistance.
the essential level of domestic outlays, thereby
However, it is believed that actual annual payments will
enhancing economic and political stability.
be considerably less than the amount pledged, and that the
bulk of these fends will go for military equipment pur-
Background: Prior to the 1967 Arab-Israeli War, Jordan
had achieved an annual economic growth rate of about
chases. Thus, there will continue to be a need for budget
support from the United States until Jordan's narrow
10% with the help of development assistance from the
economic base 15 expanded and developed to the point where
United States and other donors. Following the war much
it can yield adequate revenues to cover Jordan's national
of Jordan's more productive territory was occupied by
Israel, and most of Jordan's traditional sources of
budgetary requirements.
foreign exchange, such as tourism, were lost. Loss of
revenue and other economic disruptions initially were
FY 1976 Program: A total of $57 million in security
offset to a large extent by budget support payments
supporting assistance funding is requested to continue
from Jordan's Arab neighbors under the so-called
this program during FY 1976.
"Khartoum Agreement
However, the growing military strength of the Arab
guerrillas led them to challenge the Jordan Government
and in September 1970 King Hussein successfully
pressed a campaign against the fedayeen which resulted
in a cessation of firing along the Israeli-Jordanian
border and re-established King Hussein's control over
the East Bank.
This was a very favorable development in the Middle
East situation from the U.S. point of view, but was
attained at a considerable economic cost to Jordan, as
it prompted several Arab donors to halt their sub-
stantial cash subsidies. In the wake of this fighting,
the United States undertook a supporting assistance
LIBRARY GERALD ? FORD
program to bolster Jordan's economy and enable the
Covernment of Jordan to maintain a certain measure of
economic independence. Budgetary support is an essen-
tial element of this program.
49
Country:
SECURITY SUPPORTING ASSISTANCE LOAN ACTIVITY DATA
TABLE
TITLE
FUNDS
PROPOSED OBLIGATION 180001
School Construction
Supporting Assistance
$7,000
KIND OF LOAN
INITIAL OBLIGATION
Project Loan
FY: 1976
Goal: The goal of this project is to eliminate the use
Major Outputs: Three major outputs arise from this
of inadequate rented facilities for instructional
project:
purposes by constructing new schools at the elementary
and preparatory levels. This will result in an im-
1. 642 new classrooms for approximately 40,440 boy
proved instructional process and economies in the use
and girls in rural and urban locations.
of educational resources.
2. Approximately 38 laboratories and/or workshops
Purpose: To construct 23 modern cost-effective primary
in addition to classrooms for agricultural, vocational
and preparatory schools for the 6-14 age group to in-
and science education and training.
crease their participation in agricultural, vocational
and science education.
3. Sixty-one percent of new classrooms are for
females.
Background: At present 83 percent of primary and prep-
aratory classrooms are in former dwelling houses rented
Host Government and Other Donors: The Government of
by the MOE. Ventilation, sanitation and lighting in
Jordan will provide approximately $6.2 million equivaler
most facilities is deficient to the extent that over
in local currency for land, furniture and equipment and
the past five years increased rates of repeaters and
construction costs.
drop-outs can be partially traced to the inadequacy of
rented facilities in meeting educational objectives. To
FY 76 Programs: A.I.D. proposes to provide a loan of
alleviate these conditions, the Government of Jordan
$7,000,000 to finance construction of 23 schools under
developed a modular, standard school design in 1971 which
local contracts in rural and urban Jordan.
has been modified each year to coincide with official
changes in curriculum. The MOE plans to construct
A.I.D. Financed Inputs: Construction loan $7,000,000.
enough schools each year to absorb new enrollments and
approximately 15 percent of those pupils overcrowded in
rented facilities. During the Five Year Plan period
(1976-1980), the Government has programmed approximately
$18.5 million equivalent to construct 50 schools; in
1976-1977 the MOE capital budget provides $4.0. million
LIBRARY GERALD ? FORD
equivalent.
Country:
PORTUGAL
GRANT ACTIVITY DATA
TITLE
FUNDS
PROPOSED OBLIGATION ($000)
Technical Consultants and Training
Security Supporting Assistance
FY 76
5th Q.
1.000
PRIOR REFERENCE
INITIAL OBLIGATION
SCHEDULED FINAL OBLIGATION
NUMBER 150-15-995-001
Section 496 Funds
FY: 1975
FY: 1976
Project Target and Course of Action: The purpose of
Studies at Syracuse University may assist with the
the project is to help Portugal through a difficult
proposed public service training programs. Plans for
period of political and economic transition by providing
carrying out these and other training and consultant
financing of short-term U.S. consultants and training
activities are being discussed now with the Portuguese.
of Portuguese in fields critical to the success of
Portugal's development program.
FY 1976 Program: A total of $1,000,000 is requested
in FY 1976 to continue this technical assistance pro-
Progress to Date: A grant agreement of $750,000 was
gram by providing additional grant financing for
signed by the Governments of Portugal and the United
technical consultants and training. $750,000 of this
States on February 28, 1975 in Lisbon. This agreement
request will provide up to 15 man-years of long and
provides grant financing to cover the costs of: a)
short-term assistance at an average cost of $50,000 per
contracts with United States private firms, universities,
man year. Such assistance will consist primarily of
individuals or other organizations to conduct studies,
consultants drawn from other federal agencies, U.S.
to provide advisory services, or to prepare projects
universities and private contractors. $250,000 will
for implementation; and b) training programs in devel-
fund training costs of up to 25 Portuguese participants.
opment fields of high priority to the Portuguese
Government.
The Portuguese Government has proposed that one-third
of the grant ($250,000) be used for training managers
of public sector development programs in various
ministries; a third for training specialists at various
levels in agriculture; and a third for agricultural
consultants to participate in regional agricultural
development studies in areas of Portugal programmed for
agrarian reförm. The Harvard Institute for Internation-
al Development and the Maxwell School for International
U.S. DOLLAR COST (In Thousands)
PRINCIPAL CONTRACTORS/
AGENCIES
Obligations
Expenditures
Unliquidated
OBLIGATIONS
Estimated FY 1975
Proposed FY 76
Proposed 5th Q.
Through 6/30/74
-
-
-
Contract/
Contract/
Contract/
Direct
Other
Direct
Direct
Estimated FY 75
750
Cost Components
Total
Other
Total
Other
Total
-
-
AID
Agency
AID
Agency
AID
Agency
Estimated
U.S. Technicians
50
450
500
50
700
750
-
-
-
750
50
700
through 6/30/75
Participants
100
150
250
100
150
250
I
-
-
Future Year
Estimated
Commodities
-
-
-
-
-
-
-
-
-
....
Proposed FY 76
1,000
Obligations
Total Cost
Other Costs
-
-
-
-
-
-
-
-
-
Proposed 5th
1,750
150
600
750
150
850
1000
-
-
-
-
-
Quorter
Total Obligations
2
FORD
85
GERALD
LIBRARY
of
10
Bahrain. Malta Snain
Country: Portugal
LOAN ACTIVITY DATA
FUNDS
PROPOSED OBLIGA
($000)
School Construction
Security Supporti E Assistance
11,000
A.I.D. Loan No. 150-K-006
INITIAL OBLICATION
LIBERTY
KIND OF LOAN
Project
FY: 1976
Coal: To provide better education in secondary
stru
tion
program.
The
education
facilitie
and preparatory schools in Portugal.
bein built under this loan will complement
variety of other GOP activities including
Purpose: To provide improved educational fa-
mode, ization of school curricula and teach
cilities. and stimulate the economy through
training. An important side effect of the
public sector investment.
ject will be to generate employment in the
fiells of construction and education, both
Background: Prior to the April 1974 revolution
which are currently experiencing high unemp
in Portugal the attention given to the school
ment rates. The basic building designs and
system, in particular the construction and
struction methods proposed will be largely
maintenance of school facilities was minimal.
intensive and provide employment opportunit
Illiteracy for children over 14 years is
for both skilled and unskilled labor.
approximately 30% in Portugal. Under the pre-
sent government, the Ministry of Education has
Major Outputs: Nineteen schools will be CO
decided that secondary and preparatory schools
structed under the project providing classr
will be built on a crash basis. Over the next
facilities for approximately 11,600 student
5 years some 215 schools at the preparatory and
The project will also allow for the procure
secondary level are programmed for construction.
of $100,000 worth of U.S. equipment to be u
Many communities have no educational facilities
in the first phase of an educational televi
and overcrowding is often a rule when the
program to train teachers.
facilities do exist. The average class size is
75 students in preparatory schools (ages 10 to
Financing Procedures: Proceeds of the A.I.
12 years) and 59 in the secondary schools
loan will be made available to the GOP acco
(ages 13-15).
to a modification of the Fixed Amount Reim-
bursement (FAR) method. A.I.D. and the GOP
The problems of overcrowding have been aggrava-
agree upon a fixed amount, stated in local
ted by three factors: 1) a government decision
rency, to be reimbursed for each school, sa
to increase compulsory education from six to
amount to be computed as 80% of the net con
eight years of schooling; 2) the return of
struction cost. Then, because of the GOP's
600,000 returnees from the former Portuguese
critimal need for quick-disbursing assistan
colonies of which about 50% are estimated to be
reim! irsements will be made quarterly, base
under 15 years old; and 3) the Portuguese popu-
actual construction in place as evidenced b
lation's increased interest in education as a
contractor invoices and GOP certification,
means of achieving a higher standard of living.
veri"!ed by periodic inspection.
This project will provide funds for the Min-
Host Country and Other Donors: The Portugu
istry of Education to expand its school. con-
Gove nment is financing about one-third of
1976-77 secondary school construction progr
Country: Portugal
from its own resources. In 1976 the government
has budgeted operating expenditures for prepara-
tory and secondary school at $219.7 million
R.
(teacher and staff salaries account for 79% of
GERALD
FORD
the budget). GOP overall capital expenditures
for education (schools, construction and equip-.
THERE
ment) were $62.9 in 1975. Other donors have not
indicated an interest in financing school con-
struction but are considering programs which
would be complementary to the U.S. funding. The
World Bank is exploring a plan for construction
of facilities such as teacher/student residences,
a teacher training facility, and expansion of the
polytechnic schools. Sweden, OECD and the
Council of Europe are assisting with a variety of
training and technical assistance programs
(e.g., teacher training, curriculum design and
open university planning).
FY 76 Program: $11 million is requested in FY
1976. Some schools to be constructed under this
loan are expected to be completed by December
1976. The COP estimates that all nineteen
schools should be finished by the late summer of
1977.
TITUNAL PROGRAM HEDUIREMENT
TONDS
PHOPOSED OULIGA TION ($000)
Basic Sanitation
Security Supporting Assistance
8,000
R.
A.I.D. Loan No. 150-K-007
KIND OF LOAN
INITIAL OULIGATION
FY: 1976
GERALD
FORD
Project
Goal: To assist the GOP in its efforts to extend the
construction methods thereby providing employment oppor-
social benefits, to include improved health, of basic
tunities for both skilled and unskilled labor.
sanitary services to a greater percentage of the popu-
lation, particularly in remote areas of the country.
Major Outputs: Approximately 48 localities will be pro-
Purpose: To provide operational water and sewerage
vided with water supply and/or sewerage handling systems,
service to primarily small towns in remote areas of
benefitting 75,000 to 80,000 people.
Portugal.
Background: Until very recently, the provision of
Financing Procedures: Proceeds of the A. .I.D. loan will
basic sanitation facilities (i.e. water supply and
be made available to the GOP according to a modification
sewerage handling systems) to localities other than
of the Fixed Amount Reimbursement (FAR) method. A.I.D.
the major cities and tourist areas has been sadly ne-
and the GOP will agree upon a fixed amount stated in
glected. Many municipalities, particularly in the
local currency, to be reimbursed for each system, said
more remote areas, have grown with little regard for
amount to be computed as 75% of the eligible construc-
necessary sanitation infrastructure. Recent (and re-
tion costs. Then, because of the GOP's critical need for
peated ) outbreaks of cholera (especially in the highly-
quick-disbursing assistance, reimbursements will be made
populated regions of Oporto and Algrave), the highest
quarterly, based on actual construction in place as
infant mortality rate in Europe and the high number of
evidenced by contractor invoices and GOP certification,
deaths attributable to endemic water-borne diseases all
and verified by periodic inspection.
reveal the country's serious deficiency in basic sani-
tation facilities. On a country-wide basis, it is
Host Country and Other Donors: For 1976 the GOP has
estimated that roughly 40% of the homes lack toilets,
budgeted 1.5 billion escudos ($50 million equivalent) for
either connected to sewerage systems or not. In the
construction of basic sanitation facilities throughout
more remote areas, e.g. Beja in south-central Portugal
the country. The proposed $8.0 million A.I.D. loan will
and Braganca in the north-east, 80% to 85% of the homes
increase the total resources available for the program by
are without toilet facilities.
16%. No other donors have evidenced an interest in par-
ticipating in this program of basic sanitation.
This project will provide funds for the Ministry of
Public Works (through the General Directorate of Basic
FY '76 Program: $8.0 million is requested in FY '76. It
Sanitation) to expand its program of furnishing water
is estimated that all sub-projects (i.e. water supply and
supply and sewerage systems to municipalities presently
sewerage handling systems will be completed by the Spring
lacking such facilities. An important side effect of
of 1978, and ali loan disbursements completed by mid-1978.
the project will be the generation of employment in the
construction industry which is currently experiencing
high unemployment. The water and sewerage systems are,
for the most part, designed according to standard (for
Portugal) criteria and will permit labor-intensive
Country: Syria
LOAN ACTIVITY DATA
TITLE
FUNDS
PROPOSED OBLICATION ($000)
Damascus-Dera'a Road
Security Supporting Assistance
$45.9 Million
KIND OF LOAN
INITIAL OBLIGATION
Project Loan
FY: FY-1976
Goal: To improve the road network in Syria to assure
French consulting firms (SCET-I & BCEOM) were retai
adequate highways, primary and secondary roads to link
SARG's Ministry of Communications to make an econom
urban centers, ports, agricultural regions, industrial
technical feasibility study of the present road all
areas, sites of natural resources and international road
between Damascus and Dera'a and on to the Jordan bo
links in the export and import of commodities.
and to do an economic and technical comparison of (
cost of rehabilitating and widening the present ali
Purpose: Construction of a 104 km, four-lane
with (2) the cost of constructing a new road over a
highway from the outskirts of the capital city of
alignment, and (3) designing a road to meet present
Damascus to Dera'a near the Syrian/Jordanian border,
projected traffic needs, taking (1) and (2) into CC
where it will connect with a similar Jordanian road
eration as well as (4) operating costs of vehicles
currently under study/design. The proposed road will
terms of the existing and the proposed road. The
provide adequate capacity to meet present and projected
of the study demonstrated conclusively that it wou
traffic volumes and vehicular loadings, generated domes-
more economical from all points of view to build a
tically in southcentral and southeastern Syria, and will
road.
provide for international transport to Jordan and other
eastern and southern states. The proposed alignment
The Executing Agency for the proposed project woul
will replace the existing two-lane road designed to
Directorate of Highways and Bridges that has a dem
lesser standards. Studies indicate that the proposed
ted ability to manage construction of roads under
road over the new and more favorable alignment is less
tracts with foreign companies. Tender documents 4
costly than rehabilitation of the existing road, and
completed by a U.S. engineering firm who will also
that traffic safety and efficiency would be improved.
vise the construction by a U.S. contractor.
Background: The present highway from the Turkish bor-
Major Outputs: Major project outputs are:
der, the Syrian ports of Lattakia and Tartous, to
Damascus and through to Amman, is the principal inter-
- Support increased domestic and internationa
national surface route serving Damascus and Jordan where
- Lower maintenance costs;
it connects with the highways to Saudi Arabia, and the
- Lower operating costs of vehicles;
Trucial States.
- Lower transportation charges to shippers do
ly and internationally; and
Using as base years 1967-1971, the rate of increase of
- Encourage development of secondary and farm
traffic on the Damascus-Dera'a road has averaged 11.5
market roads connecting with the highway
per cent a year. The rate of increase in automobile and
sulting in better distribution of agricul
truck registrations average 6.4 per cent per year for
produce.
the period 1970-1974. The Economic Internal Rate of
Return for the entire stretch of the proposed road is
Host Country and Other Donors: SARG will finance
about 12.7 per cent.
loca costs of the project estimated at $33.5 mi
a portion ($11.8 Mil) of the foreign exchange CO'
Country: Syria
LOAN ACTIVITY DATA
LITLE
FUNDS
PHOPOSED OBLIGATION 180001
Security Supporting Assistance
$45.9 Million
Damascus-Dera'a Road
KIND OF LOAN
INITIAL OBLIGATION
Project Loan
FY 1976
Continuation:
and above the amount of the AID loan. No other donors
LIBRARY GERALD F.
are participating in the proposed project.
FY 1976 Program: A loan for engineering and construc-
tion services is planned totaling $45.9 million as
follows:
Millions
Engineering Services (Tender
$ 4.1
documents, engineering, and
supervision of construction)
Construction Contracts
41.8
TOTAL
$45.9
Security Supporting Assistance
$17.6 Million
Euphrates Basin Irrigation
KIND OF LOAN
INITIAL OBLIGATION
Maintenance Project
Project Loan
FY 1976
Goal: To ensure continued operation of completed irri-
Major Outputs: Maintenance and repair BERNIS of:
FORD
gation and drainage works and related structures in the
Euphrates-Balikh River Basins.
- Main Supply and Branch Canals - 800 kms;
- Secondary Canals and Flumes - 900 kms;
Purpose: To give the General Administration for the
- Main Surface Drains - 500 kms;
Development of the Euphrates Basin (GADEB) the re-
- Roads, Secondary and Tertiary - 800 kms;
sources to maintain and repair, in the Balikh River
- Pump Stations - 10 each;
Basin, irrigation, drainage, and reclamation works cov-
- U.S. trained participants; and
ering 95,000 hectares of agricultural land by the end of
- Syrian trained supervisors, training pers
the year 1981.
operators and equipment maintenance spe
and mechanics.
Background: For development of irrigation the Syrian
Government, through GADEB has given priority to the
Host Country and Other Donors: The Government 0
Balikh River Basin of the Euphrates River Basin where
will finance all local costs in support of the C
good soils can be utilized through gravity flow irriga-
development portion of the project estimated at
tion systems or by relatively low pump lifts. A number
lion equivalent from its development budget; SAR
of projects in the Balikh River Basin are in various
also meet all casts of personnel, transportation
stages of development, totaling 95,000 ha, which will
istrative overhead associated with the project f
come on stream by the end of 1980/early 1981.
annual onerating budget. No other donors are pa
ing in the proposed A.I.D. project.
The project proposed is concerned with the maintenance
needs of the irrigation and drainage works included in
FY 1976 Program: A loan for engineering and cor
the 95,000 ha involving some 800 km of main supply and
services is planned totaling $17.6 million, a.s fol
branch canals, 900 kms of secondary canals and flumes,
Milli
500 km of main surface drains, 800 km of roads and 10
Consulting Services
.2$
major pumping stations. The project will include
Equipment & Machinery (including
12.
equipment necessary for repair and maintenance of
tools, shop machinery and
canals, drains, associated roads and pumping stations,
installation)
establish maintenance and repair shop facilities includ-
Participant Training (in U.S.)
ing training of personnel at all levels.
Contingencies & Escalation
2
The Executing Agency would be GADEB, an organization
TOTAL
$17
that has demonstrated ability to plan and implement
projects. GADEB is headed and staffed by qualified
engineers who are experienced in carrying out large
capital projects.
Country: CYPRUS
GRANT ACTIVITY DATA
R.
TITLE
Relief and Rehabilitation Activities
Security Supporting Assistance
5th Q.
ERALD
FORD
FUNDS
PROPOSED OBLIGATION ($000)
FY 76
25,000
5,000
E
PRIOR REFERENCE
INITIAL OBLIGATION
SCHEDULED FINAL OBLIGATION
NUMBER
*
FY: 1975
FY: 1977
LIBRARY
Project Target and Course of Action: To contribute to
distributing in both the northern and southern parts of
the relief of displaced persons in Cyprus.
the island camp beds, blankets, food, and medical
supplies in cooperation with the local authorities, the
Progressto Date: Since July 1974 the U.S. has contribu-
ICRC and the UN Forces in Cyprus.
ted $25 million--about half of all foreign donations--
for the relief of displaced persons in Cyprus. U.S.
The United States responded to UNHCR appeals beginning
assistance through the International Committee of the Red
in September 1974 and by the end of FY 1975 had contri-
Cross (ICRC) and the United Nations High Commission for
buted $20.8 million emergency relief efforts as well as
Refugees (UNHCR) has helped meet emergency needs for
continued feeding programs, a housing program, assist-
tents, blankets, medicines and food for displaced persons
ance to schools, hospitals and old-age homes caring for
and has supported continuing feeding and relief operations
displaced persons, and other relief and rehabilitation
in northern and southern Cyprus.
activities directly benefiting refugees in the north
and the south.
The International Committee of the Red Cross has concern-
ed itself with treatment of detainees, protection of
FY 1976 Program: $25 million is requested in FY 1976
civilians, missing persons and humanitarian matters such
to provide continued U.S. support of displaced Cypriots.
as providing food, shelter and medical assistance to
Of this amount, about $15 million would cover continued
displaced persons and returnees. In FY 1975 the United
U.S. contribution to feeding programs for displaced
States gave the ICRC $4.2 million in cash and in the
persons through CY 1976. Total costs of feeding
form of relief supplies.
displaced persons in both zones of Cyprus are currently
estimated at about $2 million per month, and we expect
The UN High Commission for Refugees, designated as
it to decline as persons are settled into permanent
coordinator for international relief on Cyprus, has
homes and reemployed. U.S. contributions cover more
played a key role in channelling international contribu-
than half the costs of this program. Contributions to
tions, estimating relief needs in Cyprus, arranging for
the UNHCR from more than 46 governments and private
the purchase and shipment of food and relief items, and
organizations make up the rest of the feeding costs.
U.S. DOLLAR COST (In Thousands)
PRINCIPAL CONTRACTORS/
AGENCIES
Obligations
Expenditures
Unliquidated
OBLIGATIONS
Estimated FY 1975 *
Proposed FY 76
Proposed 5th Q.
Through 6/30/74
-
-
-
* Famine and
Contract/
Contract/
Contract/
Direct
Cost Components
Other
Direct
Total
Other
Direct
Total
Other
Total
Disaster Relief
Estimated FY 75
25,000
25,000
AID
Agency
AID
Agency
AID
Agency
Funds
Estimated
U.S. Technicians
-
-
-
-
-
-
-
-
-
through 6/30/75
25,000
25,000
-
Participants
-
-
-
-
-
-
-
-
I
Future Year
Estimated
Commodities
....
20000
-
20000
15000
I
15000
3000
-
3000
Proposed FY 76
25,000
Obligations
Total Cost
Other Costs
.....
5000
-
5000
10000
-
10000
2000
-
2000
Proposed 5th
Quarter
5,000
15,000
70,000
Total Obligations
25000
-
25000
25000
-
25000
5000
-
5000
78
GRANT ACTIVITY DATA
CYPRUS
Continuation Sheet
TITLE
NUMBER
Relief and Rehabilitation Activities
The remaining $10 million in U.S. assistance would help
support efforts to improve housing and living conditions
R.
of displaced persons, cash subsistence allowances, and
food-for-work and other projects designated to provide
employment and make displaced persons more self-sufficient.
GERALD
FORD
The U.S. contribution 18 expected to amount to roughly
1848817
half of total costs of the programs carried out by the
two international agencies.
5th Quarter Program: For continuation of these programs
beyond FY 1976, we are requesting $5 million during the
5th Quarter.
79
ENCLOSURE C
JUL 16 1976
MEMO FOR: AA/AFR, Mr. Scott
AA/A, Mr. Gardiner
AA/LA, Mr. Kleine
AA/NE, Mr. Nooter
AA/PHA, Mr. Pinkham
AA/SER, Mr. Mann
AA/TA, Mr. Farrar
FROM:
AA/PPC, Philip AShil Birnbaum
SUBJECT: Revised Guidelines for Congressional Consultation for
New Projects and Activities
The prior notification requirement of Section 113 of the FY 1975
appropriation act has been replaced in the FY 1976/TQ act by the
following provision:
"None of the funds made available under this Act for 'Food
and nutrition, Development Assistance,' 'Population planning
and health, Development Assistance,' 'Education and human
resources development, Development Assistance,' 'Technical
assistance, energy, research, reconstruction, and selected
development problems, Development Assistance,' 'International
organizations and programs, 'United Nations Enviroment Fund,'
'American schools and hospitals abroad, 'Indus Basin Devel-
opment Fund,' 'International narcotics control,' African devel-
opment program, 'Security supporting system,' 'Operating
Expenses of the Agency for International Development,' 'Middle
East Special requirements fund,' 'Military assistance,' 'Inter-
national military education and training, 'Inter-American
Foundation,' 'Peace Corps,' 'Migration and refugee assistance,'
or 'Assistance to refugees from the Soviet Union or other
Communist countries in Eastern Europe,' shall be available for
obligation for activities, programs, projects, type of material
assistance, countries, or other operations not justified or in
excess of the amount justified to the Appropriations Committees
for obligation under any of these specific headings for the
current fiscal year without the approval of the Appropriations
Committees of both Houses of the Congress."
The Conference Report contains the following explanation of the
types of projects or activities that are included within this provision:
The managers agree that any activity, program. project, type of
material assistance, or other operation specifically set forth
by recipient or country and by amount to be obligated in fiscal
year 1976, or the Transition Quarter, in the fiscal year 1976
Congressional Presentation Document shall be deemed to have been
GERALD
?
FORD
AHRUGHT
-2-
justified and the Committees informed. Similarly, amounts
not in excess of the amounts proposed therein for obligation
in fiscal year 1976, or the Transition Quarter, shall be
deemed to have been justified and the Committees informed.
Any activity, program, project, type of material assistance,
or other operation not specifically set forth by recipient
or country and by amount to be obligated in fiscal year 1976,
or the Transition Quarter, in the fiscal year 1976 Congressional
Presentation Document shall be deemed not to have been justified
and the Committees not informed. Similarly, amounts in-excess
of the amounts proposed therein for obligation in fiscal year
1976, or the Transition Quarter, shall be deemed to not have
been justified and the Committees not informed.
Constructive consent will be implied if no objection is raised
within fifteen days after notification of the proposed repro-
gramming.
In signing the appropriation act into law, the President stated in
regard to this provision that "This requirement violates the fundamental
constitutional doctrine of separation of powers We shall continue
to work with the Appropriations Committees, as with all Committees
of the Congress, in a spirit of cooperation. We shall continue
to keep the Congress fully informed on a current basis on the
execution of the laws. However, we shall not concur in a delegation
of the powers of appropriation to two Committees of Congress."
(See attachment for full quote).
Consistent with the President's instructions, effective immediately
AID will fully advise the Congress of all relevant program changes
15 calendar days prior to the obligation of funds. In advising the
Congress of these changes the following procedures should be followed.
1. Coverage (as applied to the Transition Quarter)
a. Advice to the Congress is required for activities proposed for
funding in the TQ when:
- The activity was not included in the Interim Quarter section
of the 1976 CP.
- The scope or purpose of the activity is substantially
different from that described in the 1976 CP so that it
constitutes a new activity. This applies to amendments
as well as initial authorizations or obligations.
FORD i LIBRARY
- 3 -
- The funding source is different from that shown in
the 1976 CP, i.e., a shift between appropriation
categories.
- The activity was presented in the 1976 CP as a "shelf"
item.
- The proposed funding is in excess of the amount contained
in the 1976 CP.
2. Screening responsibilities
The Bureau/Office within whose jurisdiction the particular activity
falls is responsible for determining whether advice to the Congress
is necessary and for initiating the process.
3. Format and Contents
Two documents will be required: a brief statement per Attachment B
and a new or revised grant or loan activity data sheet in the
same format used for the FY 1976 Congressional Presentation.
Letters for the Chairman and Ranking Minority Member of the
Appropriations Committees in each House are not required.
4. Clearance Procedures
Advice to the Congress must be cleared by: (1) the responsible
AA or DAA, (2) GC/LPC, Kelly Kammerer, (3) PPC/DPRE, and (4) DA,
Mr. Murphy. The Bureau/Office proposing the notification is
responsible for obtaining the clearances through PPC/DPRE.
PPC/DPRE will then forward cleared projects to Mr. Murphy through
DAA/PPC, Mr. Shakow. Once Mr. Murphy's clearance has been obtained,
the relevant documents will be returned by PPC/DPRE to the originating
Bureau/Office for transmittal to LEG/PPD, Attention: Sheridan Brinley.
One clean original and three xerox copies should be provided to
LEG/PPD. LEG/PPD will prepare cover notes/letters and transmit
each advice to the Congress. No other clearances are required and
bureaus are encouraged to minimize the number of clearances in
order to expedite processing.
5. Reporting procedures
Bureaus/Offices are asked to submit to LEG/PPD, by memorandum
with copy to PPC/DPRE, any change in their designated coordinating
officer and alternates.
FORD
LIBRARY
- 4 -
LEG/PPD is responsible for informing the Bureaus/Offices of the
date of delivery of the revised data sheets and of any Congressional
inquiries, comments or objections. Obligations may take place 15
days after date of delivery unless otherwise informed.
Attachments:
A. President's Statement
B. Format for statement describing changes or new projects.
C. Statement to be used by LEG/PPD in preparing cover letter to
chairmen and ranking minority members.
FORD is STRUET LIBRARY
Attachment A
THE WHITE HOUSE
STATEMENT BY THE PRESIDENT
I have signed H.R. 12203, the Foreign Assistance and Related Programs
Appropriation Act, 1976, and the period ending September 30, 1976.
The bill appropriates funds for a variety of programs in support
of U.S. foreign policy objectives, most importantly our pursuit of
a peaceful solution the the problems of the Middle East.
Nevertheless, I have serious reservations regarding one element
of the bill, and believe it is necessary to comment on why L have
signed the bill notwithstanding my objections to it.
Title I of the bill contains a provision which conditions the avail-
ability of appropriated funds, in certain instances, upon the acquiescence
of the Appropriations Committees of each House of Congress. This
requirement violates the fundamental constitutional doctrine of
separation of powers. While similar provisions have been included
in congressional enactments, and have been found objectionable on
these grounds, this particular requirement is especially onerous
in that it intrudes upon the execution of programs in nineteen
different appropriation categories.
Since I view this provision as severable from what is an otherwise
valid exercise of legislative authority, and because it is presented
for my signature in the last week of the fiscal year, I am not with-
holding my approval. We shall continue to work with the Appropriations
Committees, as with all Committees of the Congress, in a spirit of
cooperation. We shall continue to keep the Congress fully informed
on a current basis on the execution of the laws. However, we shall
not concur in a delegation of the powers of appropriation to two
Committees of Congress.
&
FORD
GERALD
LIBRARY
Attachment B
AGENCY FOR INTERNATIONAL DEVELOPMENT
Country:
Project Title:
Project Number:
Appropriation Category:
Intended Obligation:
Provide a concise description of a changes from the Con-
gressional Presentation for existing projects, or the reasons
for a new project.
The description of changes must detail those elements in
the existing project as presented in the Congressional Presentation
that have changed and why they have changed. If a table is appro-
priate, it can be included in the narrative or included separately
as an addendum to the activity data sheet.
LIBRARY GERALD R. FORD
Attachment C
TRANSMITTAL STATEMENT
FOR CHANGES
(Prepared by LEG/PPD)
We wish to inform you of the following changes
in the Agency's program during (the Transition Quarter)
(FY )
1. Country and Title of Project
2.
3.
4.
etc.
Andrew F. Westwood
Chief, Program Presentation
Division
Office of Legislative Affairs
FGRA 2 STYSED LIBRARY TYSED
AGENCY FOR INTERNATIONAL DEVELOPMENT
ADVICE OF PROGRAM CHANGE
Country
: Cameroon
Project Title
:
North Cameroon Seed Multiplication
Project Number
: 631-11-130-001
Appropriation Category : Food and Nutrition
Intended Obligation
: $ 20,000
We are advising that we intend to obligate funds in the Transtion
Quarter in excess of the amounts included in the FY 1976 Congressional
Presentation for the North Cameroon Seed Multiplication project in
Cameroon.
The amount to be obligated is greated than that contained in the
Congressional Presentation because it has been decided to implement
the project with project funded direct hire staff, rather than rely
totally on contractor personnel. The direct hire staff must be paid
from obligated funds on a monthly basis, so the planned rate of
obligating funds for the project will be increased by the $20,000
required to fund them during the Transition Quarter, although the
total cost of the project will not increase.
Attachment: Grant Activity Data
FORD : LIBRAKI CERALD
Country: Sahel & Central & West Africa Programs GRANT ACTIVITY DATA
TABLE III
TITLE
FUNDS
PROPOSED OBLIGATION ($000)
Food and Nutrition
FY
76
500
5th Q.
20
North Cameroon Seed Multiplication
PRIOR REFERENCE
INITIAL OBLIGATION
SCHEDULED FINAL OBLIGATION
NUMBER 631-11-130-0001
FY 1976 Africa Programs, p. 146
FY:
1976
FY:
1981
Project Target and Course of Action: To improve and in-
of seeds and also protect seeds that have been planted.
crease the production of cereals in the northern Cameroon
The widespread distribution of improved seed and seed
region through the multiplication and dissemination of
dressings will exploit existing channels such as A.I.D.
improved seed varieties. The project is intended to
or other donor supported agricultural projects, the para-
assist the Government of Cameroon in achieving two of its
statal cotton production organization, and Ministry of
priority objectives - the expansion of agricultural pro-
Agriculture extension service personnel. The latter will
duction and the reduction of income disparities between
receive training under the project in the use of the new
regions of the country. Northern Cameroon is a relative-
input package. A.I.D. assistance under this project will
ly less advantaged area in which subsistence agriculture
assist in the development of a capability for the produc-
still plays a prominent role.
tion, processing and control of foundation seed stocks,
Under a separate A.I.D. regional project, high yield-
in the organization of large scale seed multiplication
ing varieties of seeds have been identified or developed
programs, and in the establishment of systems of distri-
and field trails of selected varieties of sorghum and
bution to and guidance for the farmers in the use of
millet have been conducted in northern Cameroon. Using
improved seed and seed dressings.
the results of that work, this new project will select
FY 1976 Program: FY 1976 funds ($500,000) are for 2 man-
and multiply elite seed for these food crops at the
years of direct hire technicians ($110,000); 6 man-months
Government's research stations at Maroua. Such seed will
of contract services for consultants ($24,000); 15 man-
be disseminated for large seed multiplication through
months of long term training in the U.S. for 1 participant
other projects in the area such as the European Develop-
($12,000), 1 man-month of training in Nigeria for 10 par-
ment Fund-financed rural development project in northeast
ticipants, and 2 weeks of executive level participant
Benue province or an International Union for Child
travel in Nigeria ($12,000); purchasing of seed laboratory
Welfare-sponsored project for training of young farm
and processing equipment, agricultural equipment, chemi-
families, where multiplication can be carried out under
cals and seed ($168,000); and project support costs
reasonably well controlled conditions. In addition to
($32,000) and a contract to construct 3 seed warehouses
improved seed, the project will introduce the use of seed
$143,000).
dressings, which have already been successfully tried
5th Quarter Program: Funds ($20,000) are required to fund
under similar circumstances in other areas of francophone
6 man-months of direct hire technician services.
Africa. These chemical dressings foster the germination
U.S. DOLLAR COST (In Thousands)
PRINCIPAL CONTRACT
AGENCIES
Obligations
Expenditures
Unliquidated
OBLIGATIONS
Estimated FY 1975
Proposed FY 76
Through 6/30/74
-
-
-
Proposed 5th Q.
Contract/
Contract/
Contract/
Direct
Other
Direct
Direct
Estimated FY 75
-
-
Cost Components
Total
Other
Total
Other
Total
FORD
AID
Agency
AID
Agency
AID
Agency
LIBRARY
Estimated
U.S. Technicians
-
-
-
110
24
134
20
-
20
-
-
-
through 6/30/75
Participants
-
-
-
23
-
23
-
-
-
Future Year
Estimated
Commodities
-
-
-
168
-
168
-
-
-
Proposed FY 76
500
Obligations
Total Cost
Other Costs
-
-
-
32
143
175
-
-
-
Proposed 5th
Quarter
20
1,750
2,270
Total Obligations
-
-
-
333
167
500
20
-
20
ENCLOSURE D
FORD LIBRARY
:
GERALD
# 159
AUG 13
AGENCY FOR INTERNATIONAL DEVELOPMENT
ADVICE OF PROGRAM CHANGE
COUNTRY:
Liberia
PROJECT TITLE:
Institute of Public Administration
PROJECT NUMBER:
669-11-770-122
APPROPRIATION CATEGORY:
Education and Human Resources Development
INTENDED OBLIGATION:
$149,000
At the time the FY 1976 Congressional Presentation was executed, the
Institute of Public Administration project had been programmed for ten
years, 1972-1981, and its revenue component had not yet been included.
No provision was made in the FY 1976 Congressional Presentation for
Transition Quarter funding.
Consequent to the Congressional Presentation, an evaluation concluded
that the project could meet its objectives by FY 1978 by accelerating
its inputs and expenditures, and that foreshortening the project by
three years would result in savings in life-of-project costs. As a
result of this reprogramming, accelerated financing for the U.S. con-
tractor, Institute of Public Administration, is required. In addition,
a Participating Agency Service Agreement with the Internal Revenue
Service (IRS) was added in March 1975 to implement the project's new
revenue activity. Such agreements are funded at the beginning of each
fiscal period.
Of the $149,000 Transition Quarter funding now required, $133,000 will
fund the IPA contract and $16,000 will fund the IRS tax specialist.
Attachment: Grant Activity Data
CERALO FORD LIBRARY
Country: LIBERIA
GRANT ACTIVITY DATA
TABLE 11
TITLE
FUNDS
PROPOSED OBLIGATION ($000)
Institute of Public Administration
Education and Human Resources Development
FY 76
550
5th Q.
149
PRIOR REFERENCE
INITIAL OBLIGATION
SCHEDULED FINAL OBLIGATION
NUMBER 669-11-770-122
FY 1976 Africa Programs, P. 75
FY: 1972
FY:
1978
Project Target and Course of Action: To develop the Liber
gram and returned to LIPA. Such efforts have enabled
ian Institute of Public Administration (LIPA) into a self-
the Liberian staff members to progressively assume com-
sustaining Liberian in-service training institution with
mand of the continuing LIPA training programs. The 1200
the capacity for: carrying out middle and executive level
book library is used by LIPA professional staff and
training, seminars and special courses; initiating re-
students. Government of Liberia budget support has in-
search projects; providing consultancy service to key
creased significantly. The Tax Advisor to the Ministry
Ministries to improve organization, management, and admin-
of Finance has strengthened collection and reporting
istrative procedures. In addition, services are provided
systems, with a consequent rise in taxes collected.
to the Ministry of Finance on fiscal management.
FY 1976 Program: FY 1976 funds are requested to fund 12
Progress to Date: In the two years of its active existence
MM of services each for four Public Administration spe-
LIPA has mounted a program of training, consultancy,
cialists ($280,000) and one Tax Administration special-
research and library development conducted within the
ist ($70,000) 10 MM of services for short-term consul-
framework of the Institutional Development Plan that set
tants ($50,000) 18 short-term participants in budget,
forth the 1974-76 work parameters of LIPA. Thirty train-
personnel, and methods and procedures ($90,000) teach-
ing programs have been conducted throughout Liberia for
ing and library testing program materials ($45,000) and
over 800 participants in rural development, project man-
other costs ($15,000).
agement, supervision, financial management, personnel
administration, statistics, systems and procedures. LIPA
5th Quarter Program: Transition Quarter funds are re-
has provided consultancy services to the Ministries of
quested to fund three MM of services each for four
Finance, Health and Social Welfare, the Liberian Broad-
Public Administration specialists and one Tax Admini-
casting Corp., the Public Utilities Authority, and the
stration specialist plus two MM of short-term consul-
Bureau of the Budget.
tants ($89,000); training for five participants
($60,000).
The research program has designed, monitored, and evalu-
FORD
LIBRARY
ated work projects for LIPA's staff development program.
x.
Sixteen participant trainees have entered Masters programs
in the U.S. and Nigeria, eight having completed their pro-
U.S. DOI.LAR COST (In Thousands)
PRINCIPAL CONTRA(
AGENCIES
Obligations
Expenditures
Unliquidated
OBLIGATIONS
869
400
469
Estimated FY 1975
Proposed FY 76
Proposed 5th Q.
Through 6/30/74
Contract/
Direct
Contract/
Contract/
Institute of :
Other
Direct
Direct
Cost Components
Total
Other
Total
Other
Total
Estimated FY 75
270
478
AID
Agency
AID
Agency
AID
Agency
lic Administ
Estimated
U.S. Technicians
-
225
225
-
400
400
-
89
89
tion, New Yo:
through 6/30/75
1,139
878
261
Participants
I
25
25
1
90
90
-
60
60
Future Year
Estimated
Commodities
-
15
15
-
45
45
-
-
I
Internal Rever
Proposed FY 76
550
Obligations
Total Cost
Other Costs
-
5
5
I
15
15
-
I
-
Service
Proposed 5
Quarter
149
2,849
4,538
Total Obligations
-
270
270
-
550
550
I
149
149
THE WHITE HOUSE
WASHINGTON
August 10, 1976
MEMORANDUM FOR
ANTONIN SCALIA
ASSISTANT ATTORNEY GENERAL
OFFICE OF LEGAL COUNSEL
DEPARTMENT OF JUSTICE
Attached is a copy of a memorandum sent to
me by John E. Murphy, Deputy Administrator
of the Agency for International Development.
Inasmuch as the issues raised relate closely
to the work we have done together in trying
to resist legislative encroachment on the
executive function, I think it would be
appropriate if you or someone else you
designate could meet with Mr. Murphy and
me, along with others whom he has suggested.
Please call me, and I will set up the meeting.
P.W.B.
Philip W. Buchen
Counsel to the President
Attachment
cc: John E. Murphy
LIBRARY GERALD = IOWA
DEPARTMENT OF STATE
AGENCY FOR INTERNATIONAL DEVELOPMENT
WASHINGTON
DEPUTY ADMINISTRATOR
AUG 9 1976
MEMORANDUM FOR HONORABLE PHILIP BUCHEN
Counsel to the President
The White House
SUBJECT:
Requirements for Appropriation Committee Approval
of Foreign Assistance Activities
HR 12203, the Foreign Assistance and Related Programs Appropriation
Act, 1976, and the Transition Quarter, contains a provision requiring
the approval of the Appropriations Committees before obligations
may be made for certain foreign assistance activities funded under the
Act. In signing this bill into law, the President stated that he
viewed this provision as being a violation of the constitutional
doctrine of separation of powers. The President also stated that
the Executive Branch would continue to keep the Congress fully in-
formed regarding programs under the Act, but that he could not
concur in the delegation of the powers of appropriation to two
committees of Congress (full statement attached). AID concludes
from the President's signing statement that pertinent departments
and agencies of the Executive Branch are not to regard disapproval
of a specific activity by an appropriations committee as a legal
prohibition to the obligation of funds for the activity.
We are, of course, always willing to consult with the Appropriations
Committees regarding specific objections they may have to a
particular program or project. Further, pursuant to the President's
directive, we have continued to advise the Appropriations Committees
of program or project changes during the Transition Quarter. We
have done this with the understanding that we are submitting these
changes in an effort to keep the Congress fully informed, and not
pursuant to that portion of HR 12203 that requires the approval of
changes by the Appropriations Committees.
Thus far, we have not encountered any difficulty in this procedure.
The Appropriations Committees have not formally objected to any of
the changes we have submitted. We expect, however, that there will
be programs and projects funded during the Transition Quarter that
will meet with a formal disapproval by one or both of the
Appropriations Committees.
FORD
GERALD
LIBRARY
- 2 -
A specific example of a program which we anticipate may be
subject of such objection is the proposed $10 million supporting
assistance program for Mozambique. This program is currently ready
for funding. We have every expectation that the House or Senate
Appropriations Committee, or both, will interpose a formal dis-
approval pursuant to the committee approval provision in this year's
appropriation act. I am alerting you to this possibility at the
present time because informing the Committees of this project has
the potential of resulting in a constitutional confrontation between
the Executive Branch and the Congress. We believe it is extremely
important that we closely coordinate this matter with you so that
you will be aware of the timing of any submissions to the Congress
regarding program changes which may be of a controversial nature.
We are particularly anxious that our understanding regarding the
intent of the President's signing statement is correct, and that
we may assume that we can obligate funds for specific projects
notwithstanding a formal disapproval of such projects by one or
both of the Appropriations Committees.
I propose a meeting at your earliest convenience between you or
your staff and Denis M. Neill, Assistant Administrator for
Legislative Affairs and Walter E. Warren, Acting General Counsel,
to discuss this matter and arrive at a conclusion as to the
application of the President's signing statement.
John
John E. Murphy
Attachment
Statement by the President
LIBRARY GERALD ? FORD
THE WHITE HOUSE
STATEMENT BY THE PRESIDENT
I have signed H.R. 12203, the Foreign Assistance and Related Programs
Appropriation Act, 1976, and the period ending September 30, 1976.
The bill appropriates funds for a variety of programs in support
of U.S. foreign policy objectives, most importantly our pursuit of
a peaceful solution the the problems of the Middle East.
Nevertheless, I have serious reservations regarding one element
of the bill, and believe it is necessary to comment on why I have
signed the bill notwithstanding my objections to it.
Title I of the bill contains a provision which conditions the avail-
ability of appropriated funds, in certain instances, upon the acquiescence
of the Appropriations Committees of each House of Congress. This
requirement violates the fundamental constitutional doctrine of
separation of powers. While similar provisions have been included
in congressional enactments, and have been found objectionable on
these grounds, this particular requirement is especially onerous
in that it intrudes upon the execution of programs in nineteen
different appropriation categories.
Since I view this provision as severable from what is an otherwise
valid exercise of legislative authority, and because it is presented
for my signature in the last week of the fiscal year, I am not with-
holding my approval. We shall continue to work with the Appropriations
Committees, as with all Committees of the Congress, in a spirit of
cooperation. We shall continue to keep the Congress fully informed
on a current basis on the execution of the laws. However, we shall
not concur in a delegation of the powers of appropriation to two
Committees of Congress.
R.
FORD
GERALD
LIBRARY
meeting
THE WHITE HOUSE
WASHINGTON
August 11, 1976
MEMORANDUM FOR:
DON OGILVIE
FROM:
PHIL BUCHEN P.
Attached is a copy of a memorandum sent to
me by John E. Murphy, Deputy Administrator
of the Agency for International Development.
I would like to arrange a meeting next week
on this subject and would appreciate your
being able to attend. I have also sent a
copy of this to Assistant Attorney General
Scalia and will ask him to participate also.
Attachment
Sept 8 77 bill on floor with 3
days of dobato
Scpt. 13 deadline for passage
House bill predudes aid to Mozambiquo
or Angola; but want to obligate be foro Sept. 30
LIBRARY GERALD R. FORD
THE WHITE HOUSE
WASHINGTON
August 10, 1976
MEMORANDUM FOR
ANTONIN SCALIA
ASSISTANT ATTORNEY GENERAL
OFFICE OF LEGAL COUNSEL
DEPARTMENT OF JUSTICE
Attached is a copy of a memorandum sent to
me by John E. Murphy, Deputy Administrator
of the Agency for International Development.
Inasmuch as the issues raised relate closely
to the work we have done together in trying
to resist legislative encroachment on the
executive function, I think it would be
appropriate if you or someone else you
designate could meet with Mr. Murphy and
me, along with others whom he has suggested.
Please call me, and I will set up the meeting.
P.W.B.
Philip W. Buchen
Counsel to the President
Attachment
cc: John E. Murphy
FORD & QERALD LIBRARY
DEPARTMENT OF STATE
AGENCY FOR INTERNATIONAL DEVELOPMENT
WASHINGTON
DEPUTY ADMINISTRATOR
AUG 9 1976
MEMORANDUM FOR HONORABLE PHILIP BUCHEN
Counsel to the President
The White House
SUBJECT:
Requirements for Appropriation Committee Approval
of Foreign Assistance Activities
HR 12203, the Foreign Assistance and Related Programs Appropriation
Act, 1976, and the Transition Quarter, contains a provision requiring
the approval of the Appropriations Committees before obligations
may be made for certain foreign assistance activities funded under the
Act. In signing this bill into law, the President stated that he
viewed this provision as being a violation of the constitutional
doctrine of separation of powers. The President also stated that
the Executive Branch would continue to keep the Congress fully in-
formed regarding programs under the Act, but that he could not
concur in the delegation of the powers of appropriation to two
committees of Congress (full statement attached). AID concludes
from the President's signing statement that pertinent departments
and agencies of the Executive Branch are not to regard disapproval
of a specific activity by an appropriations committee as a legal
prohibition to the obligation of funds for the activity.
We are, of course, always willing to consult with the Appropriations
Committees regarding specific objections they may have to a
particular program or project. Further, pursuant to the President's
directive, we have continued to advise the Appropriations Committees
of program or project changes during the Transition Quarter. We
have done this with the understanding that we are submitting these
changes in an effort to keep the Congress fully informed, and not
pursuant to that portion of HR 12203 that requires the approval of
changes by the Appropriations Committees.
Thus far, we have not encountered any difficulty in this procedure.
The Appropriations Committees have not formally objected to any of
the changes we have submitted. We expect, however, that there will
be programs and projects funded during the Transition Quarter that
will meet with a formal disapproval by one or both of the
Appropriations Committees.
is
FORD
BERALD
LIBRARY
- 2 -
A specific example of a program which we anticipate may be
subject of such objection is the proposed $10 million supporting
assistance program for Mozambique. This program is currently ready
for funding. We have every expectation that the House or Senate
Appropriations Committee, or both, will interpose a formal dis-
approval pursuant to the committee approval provision in this year's
appropriation act. I am alerting you to this possibility at the
present time because informing the Committees of this project has
the potential of resulting in a constitutional confrontation between
the Executive Branch and the Congress. We believe it is extremely
important that we closely coordinate this matter with you so that
you will be aware of the timing of any submissions to the Congress
regarding program changes which may be of a controversial nature.
We are particularly anxious that our understanding regarding the
intent of the President's signing statement is correct, and that
we may assume that we can obligate funds for specific projects
notwithstanding a formal disapproval of such projects by one or
both of the Appropriations Committees.
I propose a meeting at your earliest convenience between you or
your staff and Denis M. Neill, Assistant Administrator for
Legislative Affairs and Walter E. Warren, Acting General Counsel,
to discuss this matter and arrive at a conclusion as to the
application of the President's signing statement.
John E.Marphy
John E. Murphy
Attachment
Statement by the President
FORD i 0ERALD LIBRARY
THE WHITE HOUSE
STATEMENT BY THE PRESIDENT
I have signed H.R. 12203, the Foreign Assistance and Related Programs
Appropriation Act, 1976, and the period ending September 30, 1976.
The bill appropriates funds for a variety of programs in support
of U.S. foreign policy objectives, most importantly our pursuit of
a peaceful solution the the problems of the Middle East,
Nevertheless, I have serious reservations regarding one element
of the bill, and believe it is necessary to comment on why I have
signed the bill notwithstanding my objections to it.
Title I of the bill contains a provision which conditions the avail-
ability of appropriated funds, in certain instances, upon the acquiescence
of the Appropriations Committees of each House of Congress. This
requirement violates the fundamental constitutional doctrine of
separation of powers. While similar provisions have been included
in congressional enactments, and have been found objectionable on
these grounds, this particular requirement is especially onerous
in that it intrudes upon the execution of programs in nineteen
different appropriation categories.
Since I view this provision as severable from what is an otherwise
valid exercise of legislative authority, and because it is presented
for my signature in the last week of the fiscal year, I am not with-
holding my approval. We shall continue to work with the Appropriations
Committees, as with all Committees of the Congress, in a spirit of
cooperation. We shall continue to keep the Congress fully informed
on a current basis on the execution of the laws. However, we shall
not concur in a delegation of the powers of appropriation to two
Committees of Congress.
&
FORD
GERALD
LIBRARY
Wednesday 8/18/76
Meeting
8/19/76
6:00 Jim Michel, Assistant Legal Adviser for
3 p.m.
Political Military Affairs at State, will also
attend your 3 o'clock meeting tomorrow
(Thursday 8/19).
R. FORD LIBRARY
BERALD
Wednesday 8/18/76
Meeting
8/19/76
3 p.m.
1:20 I have checked with Walter Warren concerning
the meeting tomorrow (Wednesday 8/19) at 3 p.m.
As of Monday, he is no longer Acting General
Counsel -- but is Deputy General Counsel.
Gerald D. Morgan, Jr. is the new General Counsel.
Mr. Warren suggests the following people come
from AID:
Gerald D. Morgan, Jr., General Counsel
Denis Neill, Asst. Administrator for Legis. Affairs
Kelley Kamerer, Asst. Gen. Counsel for Legislation
Walter Warren, Deputy General Counsel
We have also invited Don Ogilvie.
I will confirm with Mr. Scalia's office.
Mr. Scalia will bring Herman Marcuse with him.
FORD is LIBRARY