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Text of Letters from the President to the Speaker of the House of Representatives and the President of the Senate
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Text of Letters from the President to the Speaker of the House of Representatives and the President of the Senate
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Digitized from Box 11 of the White House Press Releases at the Gerald R. Ford Presidential Library
FOR IMMEDIATE RELEASE
MAY 15, 1975
Office of the White House Press Secretary
THE WHITE HOUSE
TEXT OF LETTERS FROM THE PRESIDENT TO THE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
AND THE PRESIDENT OF THE SENATE
May 15, 1975
Dear Mr. Speaker: (Dear Mr. President:)
I am transmitting today a bill to authorize Foreign
Assistance programs for fiscal years 1976 and 1977
and for the transition period July 1, 1976 through
September 30, 1976.
This proposal reflects both current realities and
continuing uncertainties.
One reality is that we live in an interdependent
world -- a world in which the actions or inactions
of any one great nation can affect the interests
of all. By its actions, this nation will play its
proper role in influencing the course of world
events to make a better world for all. Foreign
assistance is an essential element in the U.S.
commitment to this objective.
A second reality, however, is that the recent events
in Indochina have had a profound impact on the
assumptions underlying the assistance requirements
in my 1976 Budget, transmitted in February. There
has not been sufficient time to fully assess the
implications of these changes on foreign assistance
requirements. What is abundantly clear, however,
is the urgent need to assist those people who have
been forced to flee from Indochina. I have already
requested legislation to permit us to meet this need
and I urge speedy congressional action.
A third reality is the continuing tension in the
Middle East -- an area which has been wracked by war
and even now knows only an uneasy peace. The United
States has made every effort to assist in finding a
solution to the problems in this part of the world
and is now undertaking a thorough reassessment of
every aspect of our relations with the countries of
the Middle East.
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These current realities are also the source of continuing
uncertainties about the 1976 foreign assistance program.
In order to permit the fullest possible consideration
of foreign aid requirements by the Congress, the legis-
lation I am transmitting today contains specific funding
proposals for development assistance and related programs.
However, because of the uncertainties caused by changing
events, this request does not include specific amounts for
grant military assistance, foreign military credit sales
and some economic supporting assistance programs at this
time. For these accounts, I am requesting an authorization
for such sums as may be necessary and will return to the
Congress with specific funding proposals as soon as
possible.
The review of our policies in the Middle East, which I
initiated last month, will not be completed until later
this summer. I have, therefore, also omitted specific
requests for assistance to the four major Middle Eastern
aid recipients until this review is completed.
With this bill, the Congress is now in a position to begin
consideration of those elements of our foreign aid programs
on which I have made firm recommendations. The other
specifics will be transmitted as soon as our reviews permit.
I urge that the Congress consider and enact this legislation.
Sincerely,
GERALD R. FORD
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A BILL
To amend the Foreign Assistance Act of 1961, and
for other purposes.
Be it enacted by the Senate and House of
Representatives of the United States of America
in Congress assembled, That this Act may be cited
as the "Foreign Assistance Act of 1975".
DEVELOPMENT ASSISTANCE
SECTION 2. (a) Chapter 1 of part 1 of the
Foreign Assistance Act of 1961 is amended as follows:
(1) In section 103(a), relating to food and
nutrition, immediately after "1975," insert
"$534,500,000 for the fiscal year 1976, and
$635,000,000 for the fiscal year 1977,"
(2) In section 104, relating to population
planning and health, immediately after "1975," insert
$180,500,000 for the fiscal year 1976, and $210,000,000
for the fiscal year 1977,".
(3) In section 105, relating to education and
human resources development, immediately after "1975,"
insert "$71,000,000 for the fiscal year 1976, and
$85,000,000 for the fiscal year 1977,".
(4) In section 106, relating to selected develop-
ment accounts, immediately after "1975," insert "and
$45,300,000 for the fiscal year 1976, and $40,000,000
for the fiscal year 1977".
(5) In section 107, relating to selected countries
and organizations, immediately after "1975," insert
"and $32,000,000 for the fiscal year 1976, and $40,000,000
for the fiscal year 1977".
(b) Section 209 (c) of the Foreign Assistance Act
of 1961 is repealed.
AMERICAN SCHOOLS AND HOSPITALS ABROAD
SEC. 3. Section 214 of the Foreign Assistance
Act of 1961, relating to American schools and hospi-
tals abroad, is amended as follows:
(1) In subsection (c), immediately after
"$19,000,000," insert "and for the fiscal year 1976,
$9,800,000 and for the fiscal year 1977, $9,800,000".
(2) In subsection (d), immediately after
$6,500,000," insert "and for the fiscal year 1976,
$7,000,000 and for the fiscal year 1977, $7,000,000".
HOUSING GUARANTIES
SEC. 4. Title III of Chapter 2 of part I of the
Foreign Assistance Act of 1961 is amended as follows:
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(1) In section 221, relating to worldwide housing
guaranties, strike out "$355,000,000" and insert in
lieu thereof "$505,000,000".
(2) In section 222(c), relating to housing
projects in Latin American countries, strike out
"$550,000,000" and insert in lieu thereof "$650,000,000".
(3) In section 223(1), relating to general
provisions, strike out "June 30, 1976" and insert
in lieu thereof "September 30, 1978".
INTERNATIONAL AGRICULTURAL RESEARCH
SEC. 5. Chapter 2 of part I of the Foreign
Assistance Act of 1961 is further amended by adding
at the end thereof of the following new titles:
"TITLE XII - INTERNATIONAL AGRICULTURAL RESEARCH
SEC. 296. General Authority. -- (a) The Congress
recognizes that in a world of growing population with
growing expectations, increased food production and
improved distribution, storage and marketing in the
developing countries is necessary not only to prevent
hunger but to lay the economic base for growth. Cur--
rent levels of nutrition and food supply are not now
adequate; just to maintain them will require that
current production be doubled by the end of the century.
Moreover, in an interdependent world economy, the
increased availability of food, of higher nutritional
quality, in any sector of the world, can benefit all.
The greatest potential for increasing world supplies is
in the developing countries in which the gap between
food demand and food supply is greatest, and current
average yields are low.
"(b) The Congress further recognizes that sustained
agricultural research is necessary if the quantity,
quality, and availability of food are to be increased,
in both developed and developing countries. Key roles
in this effort are played by international agricultural
centers, universities and research institutions, in
the United States and elsewhere, through their agri-
cultural research work and in the dissemination of
increased agricultural knowledge to the farmer.
'(c) It is the sense of the Congress that
research bearing on agricultural production, distri-
bution, storage and marketing in the developing countries
conducted in a growing network of internationally
oriented agricultural research institutions must be
expended substantially and rapidly 1f the steadily
growing demand for food is to be met. Such research
should receive continued, increased, and where possible,
longer-range support from national, international,
and private sources. In adopting this title, Congress
expresses the commitment of the United States to the
expansion of such research in order to hasten and
encourage the long-term planning and institutional
growth needed to secure the most beneficial research
results.
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"SEC. 297. Authorization. -- To carry out the
intent of Congress as expressed in section 296, the
President is authorized to use any of the funds made
available under section 103 of the Act to provide
assistance on such terms and conditions as he may
determine in support of programs of food research for
the benefit of developing countries and areas. Such
funds may be made available without regard to the
provisions of section 110(b) and 211(d) of this Act."
INTERNATIONAL ORGANIZATIONS AND PROGRAMS
SEC. 6. (a) Section 302 of the Foreign Assistance
Act of 1961 is amended as follows:
(1) In subsection (a), immediately after
"$165,000,000" insert "and for the fiscal year 1976,
$189,500,000 and for the fiscal year 1977, $214,900,000."
(2) In subsection (b) (2), immediately after
"$14,500,000" insert "and for use beginning in the
fiscal year 1976, $27,000,000."
"(b) In section 54 of the Foreign Assistance
Act of 1974, strike out 'part III' and insert in lieu
thereof 'part I'."
CONTINGENCY FUND
SEC. 7. Chapter 5 of part I of the Foreign
Assistance Act of 1961 is amended as follows:
(1) In the chapter heading, strike out "Disaster
Relief" and insert in lieu thereof "Contingency Fund.'
(2) Section 451(a) is amended to read as follows:
"(a) In addition to amounts otherwise available
for such purposes, there are authorized to be appro-
priated to the President from time to time such amounts
as may be necessary to provide availabilities for
obligations to provide assistance authorized by this
part for any emergency purpose, in accordance with the
provisions applicable to the furnishing of such assis-
tance: Provided, however, That availabilities of funds
which have not been previously obligated shall at no
time exceed $10,000,000. Amounts appropriated here-
under shall remain available until expended."
INTERNATIONAL NARCOTICS CONTROL
SEC. 8. Section 482 of the Foreign Assistance
Act of 1961 is amended by inserting "and $42,500,000
for the fiscal year 1976 and $42,500,000 for the
fiscal year 1977" immediately after "1975."
INTERNATIONAL DISASTER ASSISTANCE
SEC. 9. Part I of the Foreign Assistance Act
of 1961 is further amended as follows:
(1) Chapter 9 of Part I is retitled "Chapter 9 -
International Disaster Assistance."
(2) Section 491 is renumbered "Section 495."
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(3) Immediately after the heading "Chapter 9 -
International Disaster Assistance" insert the following
new sections:
"Section 491 - International Disaster Assistance.
(a) The Congress, recognizing that prompt United States
assistance to alleviate human suffering caused by
natural and man-made disasters abroad is an important
expression of the humanitarian concern and tradition
of the American people, affirms the willingness of the
United States to provide assistance for the humani-
tarian relief and rehabilitation of peoples and
countries affected by such disasters. Such humani-
tarian assistance both symbolizes the concern of the
United States for the welfare of people in need
throughout the world, and also constitutes an important
element in the foreign relations of the United States
in its efforts to contribute to a stable international
peace.
"(b) Notwithstanding any other provision of this
or any other Act, the President is authorized to fur-
nish assistance to any foreign country or international
organization on such terms and conditions as he may
determine, for disaster relief and rehabilitation,
including assistance relating to disaster prepared-
ness, and to the prediction of an contingency planning
for natural disasters abroad.
"Section 492. Authorization. (a) In addition to
amounts otherwise available for such purposes, there
is authorized to be appropriated to the President from
time to time such amounts as may be necessary to pro-
vide availabilities for obligations for disaster
relief and rehabilitation assistance authorized by
this section: Provided, however, that availabilities
of funds which have not been previously obligated shall
at no time exceed $20,000,000. Amounts appropriated
hereunder shall remain available until expended.
"(b) The President shall submit quarterly reports
to the Committee on Foreign Relations and the Committee
on Appropriations of the Senate and to the Speaker of
the House of Representatives on the programming and
obligation of funds authorized by this section."
(4) Section 639 is repealed.
(5) Sections 639A and 639B are renumbered sections
493 and 494, respectively, and inserted after section
492.
(6) Section 452 is renumbered section 495A and
inserted after section 495.
MILITARY ASSISTANCE
SEC. 10. Chapter 2 of part II of the Foreign
Assistance Act of 1961 is amended as follows:
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(1) Section 504 (a), relating to authorization,
is amended by striking out "$600,000,000 for the
fiscal year 1975' and inserting in lieu thereof "such
amounts as may be necessary for the fiscal year 1976
and for the fiscal year 1977;
(2) Section 506(a), relating to special authority,
is amended by striking out 'the fiscal year 1975" in
each place it appears and inserting in lieu thereof
'the fiscal year 1976" in each such place.
(3) Section 514, relating to the stockpiling of
defense articles for foreign countries, is amended to
read as follows:
"SEC. 514. Stockpiling of Defense Articles for
Foreign Countries. -- No defense article in the in-
ventory of the Department of Defense which is set aside,
reserved, or in any way earmarked or intended for
future use by any foreign country may be made avail-
able to or for use by any foreign country unless such
transfer is authorized under this Act or the Foreign
Military Sales Act, or any subsequent corresponding
legislation, and such transfer is charged against funds
authorized under such legislation or against the limita-
tions specified in such legislation, as appropriate,
for the fiscal period in which such defense article is
transferred.
"
SECURITY SUPPORTING ASSISTANCE
SEC. 11. Section 532 of the Foreign Assistance
Act of 1961 is amended by inserting immediately after
$660,000,000" a comma and "for the fiscal year 1976
and for the fiscal year 1977, such amounts as may be
necessary.
INTERNATIONAL MILITARY EDUCATION AND TRAINING
SEC. 12. (a) Part II of the Foreign Assistance
Act of 1961 is amended by adding at the end thereof
the following new chapter:
CHAPTER 5 -- INTERNATIONAL MILITARY
EDUCATION AND TRAINING
"SEC. 542. General Authority. -- The President
is authorized to provide education and training for
military and related civilian personnel of foreign
countries on such terms and conditions as he shall
determine, including --
(1) attendance at military educational and
training facilities in the United States (other than
the Service Academies) and abroad;
(2) attendance in special courses of instruction
at schools and institutions of learning or research
in the United States or abroad; and
(3) observation and orientation visits to military
facilities and related activities in the United States
and abroad.
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"SEC. 543. Authorization. -- There are authorized
to be appropriated to the President to carry out the
purposes of this chapter such amounts as may be necessary
for the fiscal year 1976 and for the fiscal year 1977.
"SEC. 544. Purposes. - Education and training
activities conducted under this chapter shall be
designed:
(1) to encourage effective and mutually beneficial
relationships and increased understanding between the
United States and foreign countries, in furtherance of
the goals of international peace and security; and
(2) to improve the ability of participating foreign
countries to utilize their resources, including defense
articles and defense services obtained by them from the
United States, with maximum effectiveness, thereby
contributing to greater self reliance by such countries."
(b) The Foreign Assistance Act of 1961 is amended
as follows:
(1) Section 502B(d), relating to
human rights, is amended by inserting "or
chapter 5 (international military education
and training) immediately after "(supporting
assistance)"
(2) Section 504 (a) (1), relating to
authorization, is amended by striking out
" (other than (1) training in the United States,
or (2) for Western Hemisphere countries,
training in the United States or in the
Canal Zone)".
(3) Section 510, relating to restrictions on
training foreign military students, is repealed.
(4) Section 622, relating to coordination with
foreign policy, is amended as follows:
(A) In subsection (b) immediately after
the phrase "(including civic action) insert
the words "and military education and training".
(B) Subsection (c) is amended to read
as follows:
"(c) Under the direction of the President,
the Secretary of State shall be responsible for
the continuous supervision and general direction
of economic assistance, military assistance and
military education and training programs,
including but not limited to determining
whether there shall be a military assis--
tance (including civic action) or a military
education and training program for a country
and the value thereof, to the end that such
programs are effectively integrated both at
home and abroad and the foreign policy of
the United States is best served thereby."
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(5) Section 623, relating to the Secretary of
Defense, is amended as follows:
(A) In subsection (a) (4), immediately
after the word "military", insert the words
"and related civilian".
(B) In subsection (a) (6), immediately after
the word "assistance", insert a comma and the
words "education and training".
(6) Section 632, relating to allocation and
reimbursement among agencies, is amended as follows:
(A) by inserting in subsections (a) and (e)
immediately after the word "articles", wherever
it appears, a comma and the words "military
education and training"; and
(B) by striking out in subsection (b) the
words and defense articles" and inserting in
lieu thereof a comma and the words "defense
articles, or military education and training".
(7) Section 636, relating to provisions on
uses of funds, is amended as follows:
(A) In subsection (g)(1), immediately after
the word "articles", insert a comma and the words
"military education and training".
(B) In subsection (g) (2) and in subsection
(g) (3), strike out the word "personnel" and insert
in lieu thereof the words "and related civilian
personnel".
(8) Section 644, relating to definitions, is
amended as follows:
(A) Subsection (f) is amended to read as
follows:
"(f) 'Defense service' includes any service,
test, inspection, repair, publication, or technical
or other assistance or defense information used
for the purposes of furnishing military assistance,
but shall not include military educational and
training activities under chapter 5 of Part II."
(B) There is added at the end thereof the
following new subsection:
"(n) 'Military education and training' includes
formal or informal instruction of foreign students
in the United States or overseas by officers or
employees of the United States, contract technicians,
contractors (including instruction at civilian
institutions), or by correspondence courses,
technical, educational, or information publications
and media of all kinds, training aids, orientation,
and military advice to foreign military units and
forces.
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(c) Except as may be expressly provided to the
contrary in this Act, all determinations, authorizations,
regulations, orders, contracts, agreements, and other
actions issued, undertaken or entered into under authority
of any provision of law amended or repealed by this section
shall continue in full force and effect until modified
by appropriate authority.
(d) Funds made available pursuant to other provisions
of law for foreign military educational and training
activities shall remain available for obligation and
expenditure for their original purposes in accordance
with the provisions of law originally applicable thereto,
or in accordance with the provisions of law currently
applicable to those purposes.
OPERATING EXPENSES
SEC. 13. Part III of the Foreign Assistance Act
of 1961 is amended by adding at the end thereof the
following new section:
"Sec. 665. Operating Expenses. There is hereby
authorized to be appropriated to the President for
the fiscal year 1976 $205,200,000, and for the fiscal
year 1977 such amounts as may be necessary for operating
expenses of the agency primarily responsible for
administering part I. These amounts may be increased
by transfer of other funds made available under this
Act, but the total amount available to carry out this
section shall not be increased by more than 10 per centum
of the amount initially made available."
REIMBURSABLE DEVELOPMENT PROGRAMS
SEC. 14. Section 661 of the Foreign Assistance
Act of 1961 is amended by striking out "in each of the
fiscal years 1975 and 1976" and inserting in lieu thereof
"in the fiscal year 1975, $2,000,000 in the fiscal year
1976, and $2,000,000 in the fiscal year 1977,".
INDOCHINA ASSISTANCE
SEC. 15. Part V of the Foreign Assistance Act of
1961 and sections 34, 35, 36, 37, 38, 39 and 40 of the
Foreign Assistance Act of 1974 are repealed. All deter-
minations, authorizations, regulations, orders, contracts,
agreements and other actions issued, undertaken or entered
into under authority of any provision of law repealed by
this section shall continue in full force and effect until
modified, revoked or superseded by appropriate authority.
MIDDLE EAST SPECIAL REQUIREMENTS FUND
SEC. 16. Section 903(a) of the Foreign Assistance
Act of 1961 is amended by inserting a comma and "for
the fiscal year 1976 and for the fiscal year 1977,
such amounts as may be necessary" immediately following
"$100,000,000".
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FOREIGN MILITARY SALES
SEC. 17. The Foreign Military Sales Act is amended
as follows:
(1) In section 31(a), relating to authorization,
strike out "$405,000,000 for the fiscal year 1975" and
insert in lieu thereof "such amounts as may be necessary
for the fiscal year 1976 and for the fiscal year 1977".
(2) Section 33, relating to regional ceilings,
is repealed.
TRANSITION PROVISIONS
SEC. 18. (a) There are authorized to be appro-
priated for the period July 1, 1976, through September 30,
1976, such sums as may be necessary to conduct programs
and activities for which funding was authorized for fiscal
year 1976 by this Act in accordance with the authorities
applicable to such programs and activities for such fiscal
year.
(b) Effective October 1, 1976 --
(1) Subsection 506(a) of the Foreign Assistance
Act of 1961 relating to special authority, is amended
to read as follows:
"The President may, if he determines it to be
in the security interests of the United States,
order defense articles from the stocks of the
Department of Defense and defense services for the
purposes of part II, in addition to military assis-
tance otherwise authorized to be furnished under
this chapter, only in such amounts as are provided
in appropriations acts for military assistance.
The value of such orders under this section in
any fiscal year shall not exceed $150,000,000.";
(2) Subsection 506(b) of the Foreign Assistance
Act of 1961, 1s repealed, and appropriations to the
President of such sums as may be necessary to
reimburse the applicable appropriation, fund, or
account for orders issued prior to October 1, 1976,
under subsection 506(a) of that Act are hereby
authorized; and
(3) Subsection 632(d) of the Foreign Assistance
Act of 1961, is amended by striking out the words
"Except as otherwise provided in section 506,".
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SECTION-BY-SECTION ANALYSIS OF THE
PROPOSED FOREIGN ASSISTANCE ACT OF 1975
I. INTRODUCTION
The proposed Foreign Assistance Act of 1975 (here...
inafter referred to as "the Bill") is an amendment to
the Foreign Assistance Act of 1961, as amended (hereinafter
referred to as "the Act"). The Bill also amends the Foreign
Military Sales Act, as amended (hereinafter referred to
as "the FMSA"). The major purpose of the Bill is to
provide authorization for appropriations for activities
under the Act and the FMSA for fiscal year 1976. In
accordance with section 607 of the Congressional Budget
Act of 1974, authorizations for fiscal year 1977 are
also included.
The fiscal year 1976 authorization levels requested
for programs under part I of the Act are those set forth
in the President's budget. Specific levels are not
included for programs under part II of the Act or the
FMSA because of ongoing reassessments within the Executive
Branch with respect to the Middle East and Indochina.
Information regarding the requested levels for these
programs will be submitted as soon as possible. The
principal substantive amendments in part I of the Act
are the creation of a new International Disaster
Assistance chapter, and a new International Agricultural
Research program; and in part II of the Act a new
International Military Education and Training chapter
is established.
II. PROVISIONS OF THE BILL
Section 2(a). Development Assistance Authorizations.
This subsection, consisting of five paragraphs
provides development assistance authorizations which
will permit the Executive Branch to conduct the overall
bilateral development assistance programs at budget
request levels. The specific authorizations provided
are as follows:
(1) This paragraph amends section 103(a) of the
Act, which authorizes funds to alleviate starvation
hunger and malnutrition and to provide basic services
to poor people by increasing their capacity for self-help
by extending the existing authorization through fiscal
year 1976 at a level of $534,500,000 and through fiscal
year 1977 at a level of $635,000,000. The overall
development assistance program reflects a continuation
of the policy to increase emphasis on the food and
nutrition sector which was initiated during fiscal year
1974 and has gained further impetus in the aftermath
of the World Food Conference.
(2) This paragraph amends section 104 of the Act,
which authorizes funds to reduce population growth to
increase family planning, and to prevent and combat
disease by extending the existing authorization through
fiscal year 1976 at a level of $180,500,000 and through
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fiscal year 1977 at a level of $210,000,000.
(3) This paragraph amends section 105 of the Act
which authorizes funds to reduce illiteracy, to extend
basic education and to increase manpower training in
skills related to development by extending the existing
authorization through fiscal year 1976 at a level of
$71,000,000 and through fiscal year 1977 at a level of
$85,000,000.
(4) This paragraph amends section 106 of the Act
which authorizes funds to help solve economic and social
development problems in fields such as transportation,
power, industry, urban development and export development
by extending the existing authorization through fiscal
year 1976 at a level of $45,300,000 and through fiscal
year 1977 at a level of $40,000,000.
(5) This paragraph amends section 107 of the Act
which authorizes funds to support the general economies
of recipient countries or for development programs
conducted by private or international organizations by
extending the existing authorization through fiscal year
1976 at a level of $32,000,000 and through fiscal year
1977 at a level of $40,000,000.
Section 2(b). Repeal of Section 209(c).
This subsection repeals section 209(c), which was
added by the Foreign Assistance Act of 1971. Section
209(c) states that the President should reduce bilateral
loans under the Act, with the objective that the total
amount of such loans not exceed $100,000,000 not later
than June 30, 1975. Amendments to the Act since 1971
and those proposed to the development assistance chapter
establish authorization levels that project a loan
program in excess of $100,000,000, as of June 30, 1975.
Section 3. American Schools and Hospitals Abroad.
This section, consisting of two paragraphs amends
section 214 of the Act, which authorizes assistance to
institutions located outside the United States that are
sponsored or founded by U.S. citizens. The eligible
institutions are schools and libraries, and hospital
centers that conduct medical education and research
programs. The amounts authorized will permit the
Executive Branch to conduct this program at budget
request levels.
(1) This paragraph amends section 214 (c) by
extending the dollar authorizations through fiscal
years 1976 and 1977 at annual levels of $9,800,000.
(2) This paragraph amends section 214(d) by
extending the foreign currency authorizations through
fiscal years 1976 and 1977 at annual levels of $7,000,000.
Section 4. Housing Guarantees.
This section, consisting of three paragraphs amends
title III of chapter 2 of part I of the Act as follows:
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(1) This paragraph amends section 221 to increase
worldwide housing investment guaranty ceiling from
$355,000,000 to $505,000,000 through fiscal year 1978.
(2) This paragraph amends section 222(c) to increase
the Latin America housing investment guaranty ceiling
from $550,000,000 to $650,000,000 through fiscal year
1978.
(3) This paragraph amends section 223(1) to extend
the duration of the housing investment guaranty program
through the end of fiscal year 1978.
Section 5. International Agricultural Research.
This section creates a new title XII in chapter 2
of part I of the Act, the purpose of which is to authorize
and fund an expanded and sustained international agricultural
research program to meet the food needs of the world and
to lay an economic base for growth.
New section 296 recognizes the need for increased
food production, distribution, storage and marketing
in the developing countries, both to prevent hunger
and for growth, and the interdependence of the world
food economy. It recognizes the great potential for
increased production in developing countries.
Particularly, it emphasizes the need for sustained
agricultural research and its dissemination by inter-
national agricultural centers, universities and research
institutions in the United States and elsewhere.
It states the sense of Congress that agricultural
research bearing on developing country food production,
distribution, storage and marketing, in the network of
internationally oriented research institutions must be
substantially and rapidly expanded, on a continued and
longer-range basis. It expresses the commitment of the
U.S. to the expansion of such research, in order to
promote the necessary long-term planning and
institutional growth.
Section 297 authorizes the use of any funds authorized
to be available for food and nutrition assistance under
section 103 of the Act to support programs of agricultural
research benefitting developing countries. Funds used
under this authority would not be subject to the limitation
on research activities in section 211(d) of the Act.
The agricultural research program would not be subject
to the three-year restriction on project funding con-
tained in section 110(b) of the Act, since in many
cases a long-term commitment will be essential to the
achievement of research goals. The section indicates
that funds should be made available on a long-term
basis where to do so would help sustain and build such
efforts, or encourage support by others. It is contem-
plated that in administering the program, AID will use
fully its existing authorities, such as section 635(h),
permitting commitments of assistance for not more than
five years, subject to any future action of the Congress.
Where there may be a present need to obligate funds on
a long-term basis, e.g., for up to five years, for
research costs, it is contemplated that this may be
done.
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Section 6. International Organization and Programs.
This section, consisting of two paragraphs amends
section 302 of the Act as follows:
(1) This paragraph extends the authorization
for International Organizations and Programs under
section 302 (a) through fiscal year 1976 at a level of
$189,500,000 and through fiscal year 1977 at a level
of $214,900,000. This authorization will enable the
Executive Branch to make its voluntary contributions
to international organizations whose programs are
focused on the developing world at budget request
levels.
(2) This paragraph extends the authorization for
the Indus Basin Development grants under section 302(b)
at a level of $27,000,000 to enable the Executive Branch
to make voluntary contributions to the Indus Basin
Development Fund at the budget request level for fiscal
year 1976 and to make an additional contribution of
$4,500,000 in the interim quarter or In fiscal year 1977.
Section 7. Contingency Fund.
This section, consisting of two paragraphs, amends
chapter 5 of part I of the Act as follows:
(1) This paragraph changes the chapter heading
from "Disaster Relief" to "Contingency Fund." This
change will avoid confusion with chapter 9 of the Act
as added by section 9 of the Bill.
(2) This paragraph amends section 451(a) of the Act,
which authorizes the President to provide assistance
authorized by part I for any emergency purpose. This
amendment would create a permanent authorization for
this purpose. Appropriations, however, would be
limited by proviso that at no time could availabilities
of funds which had not previously been obligated exceed
$10,000,000. It is the intent of this section to make
available sufficient funds to meet emergency requirements
other than those arising from disasters. By making the
authorization a permanent one, the Executive Branch will
have to seek appropriations (but not new authorizing
legislation) to replenish the Contingency Fund as it is
drawn down.
Quarterly reporting requirements and the prohibition
on gifts of existing law would be retained. This authoriza-
tion is less than the President's budget request of $30,000,000
but is consistent with it. The President's budget request
was finalized prior to the division of the Contingency
Fund into the existing Contingency Fund and a separate
Famine and Disaster Assistance Fund.
Section 8. International Narcotics Control.
This section amends section 482 of the Act, which
authorizes appropriations for assistance to control the
illicit production and trafficking in dangerous drugs.
The amendment extends the authorization through fiscal
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year 1976 at a level of $42,500,000 and through fiscal
year 1977 at the same level. This authorization will
enable the Executive Branch to conduct its international
narcotics control program at budget request levels.
Section 9. International Disaster Assistance.
This section consists of six paragraphs which
consolidate existing disaster assistance authorities
into a single chapter in the Act and authorize funds
for disaster assistance purposes.
(1) This paragraph retitles chapter 9 of part I
to read "International Disaster Assistance."
(2) This paragraph relocates within the chapter
the existing authority for assistance to refugees in
Bangladesh.
(3) This paragraph adds sections 491 and 492 to
the Act, containing new authority for International
Disaster Assistance.
Section 491(a) is a statement of policy that reiterates
the humanitarian and political importance which the United
States attaches to efforts aimed at alleviating human
suffering caused by natural and man-made disasters abroad.
Section 491 (b) authorizes the President to furnish
assistance to any foreign country or international
organization for disaster relief and rehabilitation,
which assistance is defined to include assistance
relating to disaster preparedness and to the prediction
of and contingency planning for natural disasters. The
subsection also provides that such assistance may be
furnished without regard to the restrictions and prohi-
bitions contained in other provisions of law.
Section 492(a) is a permanent authorization for
appropriations to provide assistance authorized by
section 491. The appropriations are limited by a
proviso that imposes a ceiling of $20,000,000 on availa-
bilities of funds which have not been obligated previously.
It is the intent of this section to permit AID to have
sufficient funds available at all times to meet the
relief and rehabilitation needs that may arise from
disasters which cannot be foreseen. By making the
authorization a permanent one, the Executive Branch will
have to seek appropriations (but not new authorizing
legislation) to replenish the fund as it is drawn down.
This new funding mechanism should assure that the U.S.
Government will always have funds available to respond
to disasters abroad.
Section 492(b) retains the quarterly reports on uses
of funds required by present law in the context of
section 639. This request is consistent with the
President's budget request of $30 million for the
Contingency Fund. As indicated previously, the budget
request was prepared prior to the enactment of the famine
and disaster authority of section 639.
(4) This paragraph repeals section 639, which is
replaced by sections 491 and 492.
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(5) This paragraph renumbers sections 639A and
639B, which deal with assistance to the drought-stricken
nations of Africa, and places them in the new International
Disaster Assistance chapter.
(6) This paragraph renumbers section 452, which
deals with assistance to Pakistan and Nicaragua and
places it within the new International Disaster
Assistance chapter.
Section 10. Military Assistance.
This section, consisting of three paragraphs, amends
chapter 2 of part II of the Act, which contains authority
for military assistance.
(1) This paragraph amends section 504(a) to authorize
appropriations for fiscal years 1976 and 1977 of such
amounts as may be necessary for military assistance.
(2) This paragraph extends for fiscal year 1976
the President's special authority under section 506(a)
of the Act to draw down Department of Defense stocks and
services to meet unforeseen emergency needs for military
assistance.
(3) This paragraph amends section 514 of the Act
by prohibiting the transfer to or for the use of any
foreign country, whether by grant or sale or otherwise,
of defense articles in the stocks of the Department of
Defense which are set aside, reserved, or in any way
earmarked or intended for future use by any foreign
country, unless: (1) the transfer is authorized
by and subject to all the restrictions of the Act or
the FMSA, and (2) the transfer is charged against MAP
funds, section 506 drawdown limitations, FMS credit
funds, FMS credit and guaranty program ceiling, or other
appropriate statutory limitations in effect at the time
transferred.
Under the funding restrictions of section 514, as
it now reads, the war reserve and the contingency
requirements of our own armed forces and of our allies
would have to be separately computed, financed by
different appropriations, and would seemingly have
to be earmarked for separate uses. Under an amended
section 514, our armed forces would have full title and
control of all such stocks and could utilize any part of
such stocks for our own requirements, should circumstances
so require, even though acquired in whole or in part
based on possible use by allies. Unless so amended,
further MAP materiel grants might have to be limited
to new procurement, with the delays this often entails,
or by removing the equipment from the very hands of our
own active armed forces.
Section 11. Security Supporting Assistance.
This section amends section 532 of the Act which
authorizes assistance to friendly countries and organiza-
tions to support or promote economic or political
stability. The amendment authorizes the appropriation
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of such amounts as may be necessary for these purposes
for fiscal years 1976 and 1977.
Section 12(a). International Military Education and Training.
This subsection adds to part II of the Act a new chapter
5, establishing a program of international military educa-
tion and training. Under this new chapter, the education
and training of foreign military and related personnel
will be conducted in a program separate and distinct
from the military assistance. Military assistance, as
authorized by chapter 2 of part II of the Act will
henceforth be concentrated on materiel assistance.
The new chapter consists of three sections, as described
below:
General Authority. Section 542 authorizes the
President to provide military education on such terms
and conditions as he shall determine and describes
the kind of activities that can be engaged in under
this chapter. These activities include attendance
by foreign military personnel and related civilians
at U.S. and foreign military facilities for education
or training purposes. This includes international
military educational facilities such as those under
NATO auspices. Also permitted is attendance by such
foreign personnel at pertinent courses of instruction
at non-military public and private educational and
research institutions. In addition, observation and
orientation visits by foreign military and related
civilian personnel would be provided under this chapter.
Authorization. Section 543 authorizes the appro-
priation of funds to the President to carry out the
purposes of the chapter.
Purposes. Section 544 describes the purposes of the
new chapter as encouraging mutually beneficial relation-
ships and increased understanding, while improving the
ability of participating foreign countries to manage
their resources and thereby to increase their self-
reliance. These specific purposes distinguish the new
education and training chapter from the more general
military assistance program.
Section 12(b). Conforming Amendments to the Foreign
Assistance Act.
This subsection amends the Act to eliminate all
references to training from chapter 2 of part II, which
deals with military assistance, because military education
and training programs will no longer be conducted as
military assistance. Thus, statutory provisions applicable
to "military assistance" would not be applicable to
military education and training programs under chapter 5.
The subsection also amends part III of the Act, containing
general, administrative, and miscellaneous provisions,
to clarify the application of those provisions to the
new chapter on international military education and
training. The specific amendments made by this subsection
are:
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(1) This provision adds international military
education to the definition of security assistance
contained in section 502B(d) of the Act, concerning
human rights.
(2) This provision deletes the exclusion of "training
only" countries from the thirty-one country limitation on
the number of countries that can receive military assistance
contained in section 504(a) of the Act.
(3) This provision repeals the restriction on the
number of foreign military students to be trained in
the United States. According to section 510 of the Act,
this number cannot exceed in any fiscal year the number
of civilians brought to the United States in the previous
fiscal year under the Mutual Educational and Cultural
Exchange Act of 1961.
(4) This provision makes clear that the roles of
the Chief of the United States Diplomatic Mission and
of the Secretary of State with respect to international
military education and training will be the same as they
are for military materiel assistance programs. This is
achieved by inserting a reference to military assistance
in subsections (b) and (c) of section 622 of the Act.
(5) This provision extends the supervisory responsi-
bilities of the Secretary of Defense under section 623(a)
(4) of the Act to military-related civilian personnel,
consistent with the scope of the new chapter on international
military education and training. It also makes the super-
visory responsibility of the Secretary of Defense over
Department of Defense functions relating to military
assistance expressly applicable to military education
and training as well.
(6) This provision makes the provisions of section
632 of the Act, concerning reimbursement among agencies,
expressly applicable to military education and training
in the same manner as that section applies to military
materi el assistance.
(7) This provision amends section 636(g) of the
Act to ensure that part II funds are available for
administrative, extraordinary and operating expenses
incurred in furnishing military education and training.
It also makes part II funds available for reimbursement
of certain expenses incurred in connection with training
and orientation visits of military-related civilian
personnel, consistent with the scope of the new chapter
on international military education and training.
(8) This provision modifies the definition of
defense service in section 644(f) of the Act so as to
exclude references to training. By this change, the
authority to furnish training as military assistance
under chapter 2 of part II of the Act will be terminated.
In addition, the definition of training is made a separate
subsection, subsection 644(n), which will apply to the
new chapter on international military education and
training. The changes made by this provision are not
intended to affect the sale of training as a defense
service under the FMSA.
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Section 12(c). Preservation of Existing Actions.
This technical subsection makes clear that the
amendments to the Act affected by this section will not
call into question the continuing validity of actions taken
under authority of any provision amended or repealed by
this section, such as regulations and contracts.
Section 12(d). Interim Funding.
This technical subsection authorizes funds here-
tofore made available for activities which will be
funded in the future under the new international
military education and training chapter to be obligated
and expended either in accordance with the originally
applicable authority or under the new authority.
Section 13. Operating Expenses
This section creates a new category of funding
designed to cover all AID operating, administrative and
personnel expenses. An authorization is provided for
fiscal year 1976 at a level of $205,200,000 and for
fiscal year 1977 at whatever level may be necessary.
Because the Agency cannot project with absolute precision
the travel requirements and operating costs connected
with new programs, some funding flexibility is required.
This is provided by the authority to augment the new
account by no more than 10% with other funds made
available under the Foreign Assistance Act.
Section 14. Reimbursable Development Programs.
This section amends section 661 of the Act, to
authorize the use of up to $2,000,000 rather than
$1,000,000 in funds made available under part I to
facilitate access to raw materials and stimulate
reimbursable aid programs, and to extend the authority
through fiscal year 1977.
Section 15. Indochina Assistance.
This section repeals part V of the Act, which
authorized funds for the relief and reconstruction of
South Vietnam, Cambodia and Laos, and also repeals sections
34 through 40 of the Foreign Assistance Act of 1974, which
set forth certain policies and principles regarding aid
to Indochina and authorized funds for Indochina during
fiscal year 1975 subject to certain allocations and
restrictions. These separate and detailed provisions
are no longer necessary. The validity of actions taken
under the authorities repealed by this section are
preserved by a' standard saving clause.
Section 16. Middle East Special Requirements Fund.
This section authorizes the appropriation of such
amounts as may be necessary for the Middle East Special
Requirements Fund for fiscal years 1976 and 1977.
Section 17. Foreign Military Sales Act Amendments.
This section, consisting of two paragraphs, amends
the FMSA as follows:
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(1) This paragraph amends section 31 of the FMSA
to authorize such amounts as may be necessary to carry
out a program in fiscal years 1976 and 1977. An
aggregate ceiling on credits and the principal amount
of guaranteed loans for these fiscal years is not
included, pending the completion of the pending reassess-
ment within the Executive Branch.
(2) This paragraph repeals section 33 of the FMSA,
which imposes an aggregate annual ceiling of $40,000,000
on military assistance, credits and guarantees to African
countries. Section 33 has not limited arms purchases
by African countries, but has inhibited the United
States' ability to be responsive to reasonable requests
for credit in connection with such purchases. In the
absence of this limitation, arms sales to African countries
would continue to be governed by the criteria which are
generally applicable under the FMSA, including considera-
tions of foreign policy, arms proliferation, degree of
weapons sophistication, and human rights implications.
Section 18. Transition Amendments.
This section responds to requirements created by
the enactment of the Congressional Budget Act of 1974
(P.L. 93-344). Title V of that Act changes the commence-
ment of the fiscal year from July 1 to October 1 beginning
with FY 1977. The transition period, July 1, 1976,
through September 30, 1976, is legally neither a fiscal
year nor any fraction of a fiscal year. The section
authorizes the appropriation of such sums as may be
necessary to carry out the programs and activities,
for which other provisions of this Act authorize
funding for fiscal year 1976, during this transition
period. The section also makes clear that the
authorities that will be available to conduct these
programs and activities during fiscal year 1976 will
also be available during the interim months, including
a limited grant program of overseas excess defense
articles.
Section 401 of the Congressional Budget Act of 1974
provides that proposed legislation to authorize new
spending authority shall not be in order after the
adjournment of the first session of the 94th Congress
for consideration by either House of Congress, unless
such proposed legislation also provides that such new
spending authority is to be effective for any fiscal
year only to such extent or in such amounts as are
provided in appropriation Acts. Consequently, subsection
(b) of this section modifies the President's special
drawdown authority under section 506 of the Act, effective
with fiscal year 1977, to authorize military assistance
appropriations to be made from time to time for purposes
of reimbursing the military departments for assistance
they provide, in addition to that otherwise authorized,
when and if the President determines it to be in the
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security interests of the United States. This authority
is not to be used routinely to supplement MAP funds,
but is necessary to meet unforeseen, emergency
requirements for military assistance which might arise
in the course of any fiscal year.
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