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President has Signed S. 3394, the Foreign Assistance Act of 1974 [Fact Sheet]
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7337531
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President has Signed S. 3394, the Foreign Assistance Act of 1974 [Fact Sheet]
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White House Press Releases (Ford Administration)
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U.S. Senate. (03/04/1789 - )
Legislation
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1974-12-30
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1974
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December 30, 1974
Office of the White House Press Secret ary
(Vail, Colorado)
NOTICE TO THE PRESS
The President has signed S. 3394 -- The Foreign Assistance Act of 1974,
which (a) authorizes foreign assistance appropriations for fiscal year 1975
of $2, 697 million, of which $288 million is for development assistance,
$1, 277 million for security-related economic assistance, and $1, 005 million
for military assistance; (b) authorizes a $100 million Special Requirements
Fund for the Middle East; (c) provides authority to drawdown $150 million
in Defense Department stocks in 1975 to meet emergency military assist-
ance requirements; and (d) contains policy provisions and regional and
country limitations that are noted below.
The total authorization provided in S. 3394 is $555 million less than
requested.
The major reductions in the request are:
- $46 million in food and nutrition assistance from the $546 million
requested;
-- $323 million in Indochina postwar reconstruction from the $940
million requested;
- $25 million in the President's contingency fund from the $30
million previously authorized for 1975 (the bill, however, pro-
vides an unrequested $40 million authorization for famine and
disaster relief, $25 million of which is earmarked for Cyprus
refugees);
- $385 million in grant military assistance from the $985 million
requested;
- $150 million in foreign military sales credits from the $555
million requested.
The bill increases the amounts requested for:
(MORE)
Digitized from Box 6 of the White House Press Releases at the Gerald R. Ford Presidential Library
-2-
- supporting assistance from $385 million to $660 million with
the additional $275 million earmarked for Israel in addition
to the $50 million requested for that country;
- population and health by $20 million to $165 million, earmarking
$150 million for population activities;
- international organizations by $11 million to $165 million car-
marking the increase for the International Atomic Energy
Agency ($0. 5 million), UNICEF ($3 million) and the United Nations
Development Program ($7. 6 million).
As requested, the bill authorizes $100 million for a Middle East Special
Requirements Fund but with a concurrent resolution override provision
discussed below.
The bill also provides an unrequested authorization of $25 million for
economic assistance to Portugal and its former African colonies.
The bill reduces from $250 million to $150 million the ceiling on the
President's authority to draw down defense articles from Defense stocks
for use in the military assistance program, and limits use of this
authority for Cambodia to $75 million.
Military Assistance
Significant provisions in the bill pertaining to military assistance are the
following:
- prohibits military assistance and sales to Turkey until and
unless the President certifies to the Congress that Turkey is in
compliance with applicable laws and agreements on the use of
U.S. -furnished assistance and is making substantial progress
regarding military forces on Cyprus the President can suspend
this prohibition until February 5, 1975, if he determines that the
suspension would further negotiations on a Cyprus settlement
and if Turkey observes the ceasefire and refrains from increasing
its forces on Cyprus and from transferring U.S. supplied imple-
ments of war to Cyprus;
- expresses a sense of Congress that the grant military assistance
program, except for training, should be reduced and terminated
as rapidly as feasible and, accordingly, directs the President
to submit to the first session of the 94th Congress a detailed plan
for the reduction and eventual elimination of the program;
(MORE)
authorizes a total credit sales program (includes the
reduced $555 million appropriation authorization request
discussed above) of $872. 5 million, as requested, earmarking
$300 million for Israel with repayment on $100 million to be
forgiven the forgiveness feature was not requested;
- reduces the reserve requirement on U.S. government guaranteed
loans from 25 percent to 10 percent, as requested:
-- requires the transfer of the authorization for military assistance
to South Vietnam from the Defense Procurement Act to the
Foreign Assistance and Foreign Military Sales Acts
effective July 1, 1976;
- requires that all costs of military advisory missions, including
pay and allowances now included in the Defense Department budget,
be chargeable to the military assistance appropriation effective
July 1, 1976;
- establishes a statutory minimum interest rate linked to that on
U.S. obligations of comparable maturity for military sales credits
unless the President certifies to the Congress that the national
interest requires a lesser rate;
- eliminates the ceiling on the amount of military assistance and
sales to Latin American countries and restores the President's
authority to waive the $40 million ceiling for African countries,
as requested;
- limits the aggregate amount of military assistance, excess de-
fense articles, and military sales credits and guarantees to Korea
in 1975 to $145 million the ceiling may be increased to $165
million if the President reports to the Congress that Korea has
made substantial progress in the observance of international
standards of human rights.
Regional and Country Ceilings and Limitations
The bill establishes numerous regional and country ceilings, with individual
program earmarking within those dellings as follows:
(MORE)
-4-
Indochina
- authorizes $617 million for Indochina Postwar Reconstruction
with specific earmarking of that amount by country and programs;
- prohibits the use of development assistance funds in Indochina;
- prohibits the use of transfer or waiver authority to allocate
non-Indochina funds to Indochina countries.
Vietnam
- establishes a $449.9 million ceiling on economic aid, with
specific earmarking thereof by program and project category;
- establishes a personnel ceiling of 4, 000 U.S. and 800 third
country nationals in Vietnam six months after enactment of the
bill and a ceiling of 3, 000 U.S. and 500 third country nationals
within one year of enactment;
- prohibits the use of funds in 1975 for fertilizer procurement for
Vietnam and in fiscal years thereafter a ceiling for Vietnam of
1/3 of total worldwide fertilizer funds.
The Executive Branch requested $750 million for South Vietnam
with no ceiling or limitations.
Cambodia
- establishes a non-waivable ceiling of $377 million on the total
amount of 1975 aid to Cambodia with an exception to allow the
drawdown of $75 million in Defense Department stocks; limits
military assistance to $200 million (excluding the drawdown),
economic assistance to $100 million, P.L. 480 to $77 million
and further earmarks the economic assistance by major program
category.
The Executive Branch requested $500 million for Cambodia with no
ceiling or limitations, of which $390 million was for military
assistance.
(MORE)
-5-
Laos
- establishes a non-waivable ceiling of $70 million on the total
amount of 1975 aid to Laos; limits military assistance to $30
million, economic assistance to $40 million, and further ear-
marks the economic assistance by major program category.
The Executive Branch requested $145.2 million for Laos with no
ceiling or limitation.
Chile and India
The bill also limits assistance to Chile in 1975 to $25 million, none
of which can be military or supporting assistance, and limits aid
to India to $50 million.
Legislative Veto Provisions
Two sections of the bill provide for legislative override of Executive Branch
actions by concurrent resolution. One prohibits any proposed sales of
defense articles and services in excess of $25 million if the Congress adopts
2. concurrent resolution of disapproval within 20 days. This provision does
not apply if the President certifies that an emergency exists which requires
such sale in the national security interest. The other prohibits the Presiden
from using the Middle East Special Requirements Fund if Congress dis-
approves the President's proposed use of the funds by concurrent reso-
lution within thirty days.
Other Program Restrictions
In addition to the above limitations, the authorization contains other
significant non-country-specific restrictions which:
-- prohibit the expenditure of any appropriated funds by or on
behalf of the Central Intelligence Agency for the conduct of so-
called covert actions in foreign countries unless the President
reports to the appropriate committees of the Congress, including
the House Foreign Affairs and Senate Foreign Relations Committee
that each such operation is important to the national security
(this provision shall not apply during a declared war or an exer-
cise of powers by the President under the War Powers P esolution);
(MORE)
-6-
- express the sense of Congress that the President, except
in extraordinary circumstances, substantially reduce or
terminate security assistance to any government which engages
in a consistent pattern of gross violations of human rights;
- prohibit funding for UNESCO until it takes concrete steps to
correct recent action of a political nature involving Israel;
- limit to 30 percent of the amount of concessional food aid that
can be provided to countries other than those most seriously
affected by world food and fuel shortages, unless the President
demonstrates to the appropriate committees that the use of such
food is solely for humanitarian purposes.
(MORE)
Leign Assistance Act of 1(
4
Analysis of Congressional Changes
(dollars in millions)
Previously
1975
Authorized
Authorization
Enrolled
Economic Assistance
for 1975
Request
Bill
Dif
Functional Accounts:
Food and nutrition
291.0
255.3
209.0
-46
Population and health
145.0
--
20.0
+20
(Population Activities)
(130.0)
--
(150.0)
Education and human resources
90.0
--
2.0
+2
International organizations
150.0
3.9
15.0
+11
(Atomic Energy Agency)
--
--
(.5)
(UNICEF)
--
-
(3.0)
(UNDP)
---
--
(7.6)
Contingency fund
30.0
--
-25.0
-25
Famine and disaster relief
--
---
40.0
+40
Cyprus
--
--
(25.0)
Portugal and Portuguese colonies
--
--
25.0
+25
Loans
--
--
(20.0)
Grants
--
--
(5.0)
Gorgas Memorial Institute
.5
--
1.5
+1
Subtotal, Development
Assistance
706.5
259.2
287.5
+28
Indochina reconstruction
I
939.8
617.0
-322
Vietnamese Children
--
--
(10.0)
-
Supporting assistance
--
385.5
660.0
+274
Middle East
--
(377.5)
(652.0)
of which Israel
--
(50.0)
(325.0)
Middle East special
requirements fund
--
100.0
100.0
Arab Refugees (UNWRA)
--
--
(6.0)
ECONOMIC ASSISTANCE
706.5
1,684.5
1,664.5
-20
International control commission
---
27.7
27.726
+
Military Assistance
Grants
--
985.0
600.0
-385
Foreign military credit sales
Program
---
(872.5)
(872.5)
Funding
--
555.0
405.0
-150
Israel
--
(300.0)
(300.0)
Authority to Draw-down Defense
Department Stocks
---
(250.0)
(150.0)
MILITARY ASSISTANCE
--
1,540.0
1,005.0
-535
TOTAL, FOREIGN ASSISTANCE
706.5
3,252.2
2,697.226 -554