American Foreign Policy, Current Documents

SEC. 104. Special missions and staffs abroad. The maintenance of special missions or staffs abroad, the fixing of the ranks of the chiefs thereof after the chiefs of the United States diplomatic missions, and the authorization of the same compensation and allowances as the chief of mission, class 3 and class 4, within the meaning of the Foreign Service Act of 1946 (60 Stat. 999; 22 U.S.C. 801 et seq.), all under section 631 of the Act, shall be subject to the approval of the Secretary. SEC. 105. Munitions control. In carrying out the functions conferred upon the President by section 414 of the Mutual Security Act of 1954, the Secretary shall consult with appropriate agencies. Designations, including changes in designations, by the Secretary of articles which shall be considered as arms, ammunition, and implements of war, including technical data relating thereto, under that section shall have the concurrence of the Secretary of Defense.

SEC. 106. Office of Small Business. The Office of Small Business provided for in section 602(b) of the Act shall be in the Department of State.

PART II. DEPARTMENT OF DEFENSE

SEC. 201. Delegation of functions. Subject to the provisions of this order, there are hereby delegated to the Secretary of Defense: (a) The functions conferred upon the President by Part II of the Act not otherwise delegated or reserved to the President.

(b) To the extent that they relate to other functions under the Act administered by the Department of Defense, the functions conferred upon the President by sections 602 (a), 605 (a), 625(a), 625 (h), 627, 628, 631 (a), 634 (b), 635 (b),33 and 635(d) 34 of the Act.

(d) The functions conferred upon the President by the fourth and fifth provisos of section 108 of the Mutual Security Appropriation Act, 1956 (69 Stat. 438).

SEC. 202. Reports and information. In carrying out the functions under section 634 (b) of the Act delegated to him by the provisions of

Text in American Foreign Policy: Current Documents, 1959, p. 1627. "I.e., the retention and disposal by the United States Government of "any commodities and defense articles procured to carry out" the Foreign Assistance Act "in lieu of being disposed of to a foreign country or international organization, whenever, in the judgment of the President, the best interests of the United States will be served thereby, or whenever such retention is called for by concurrent resolution."

I.e., the authority to "make loans, advances, and grants to, make and perform agreements and contracts with, or enter into other transactions with any individual, corporation, or other body of persons, friendly government or government agency, whether within or without the United States, and international organizations in furtherance of the purposes and within the limitations of this Act."

I.e., the authority to "accept and use in furtherance of the purposes of this Act, money, funds, property, and services of any kind made available by gift, devise, bequest, grant, or otherwise for such purpose."

* Which reads: "Mobilization reserve' means the quantity of defense articles determined to be required, under regulations prescribed by the President, to support mobilization of the Armed Forces of the United States Government in the event of war or national emergency."

section 201(b) of this order, the Secretary of Defense shall consult with the Secretary of State.

SEC. 203. Exclusions from delegation to Secretary of Defense. The following-described functions conferred upon the President by the Act are excluded from the functions delegated by the provisions of section 201 (a) of this order:

(a) Those under section 506 (a) (introductory clause) of the Act. (b) Those under sections 506(b) (1), (2), and (3) of the Act to the extent that they pertain to countries which agree to the conditions set forth therein.

(c) So much of those under section 511 (b) of the Act as consists of determining that internal security requirements may be the basis for programs of military assistance in the form of defense services and reporting any such determination.

(d) That of making the determination provided for in section 507 (a) of the Act.

(e) Those of negotiating, concluding, and terminating international agreements.

PART III. OTHER AGENCIES

SEC. 301. Department of the Treasury. There is hereby delegated to the Secretary of the Treasury the function conferred upon the President by the second sentence of section 612 of the Act.36

SEC. 302. Department of Commerce. There is hereby delegated to the Secretary of Commerce so much of the functions conferred upon the President by section 601 (b) (1) of the Act as consists of drawing the attention of private enterprise to opportunities for investment and development in less-developed friendly countries and areas.

SEC. 303. Civil Service Commission. There is hereby delegated to the Chairman of the Civil Service Commission the function of prescribing regulations conferred upon the President by the proviso contained in section 625 (b) of the Act.

SEC. 304. United States Information Agency. The United States Information Agency shall perform all public-information functions abroad with respect to the foreign-assistance, aid, and development programs of the United States Government.

SEC. 305. Development Loan Committee. There is hereby established a Development Loan Committee in accordance with section 204 of the Act. The Committee shall consist of the Administrator of the Agency for International Development, who shall be chairman, the Chairman of the Board of Directors of the Export-Import Bank of Washington, the Assistant Secretary of State for Economic Affairs,

"Which reads: "Foreign currencies so received [i.e., from furnishing nonmilitary assistance under the Mutual Security Act or the Foreign Assistance Act] which are in excess of the amounts so reserved [for use in cultural and educational exchange programs] and of the requirements of the United States Government in payment of its obligations outside the United States, as such requirements may be determined from time to time by the President, shall be available for the authorized purposes of Part I in such amounts as may be specified from time to time in appropriation Acts."

Doc. 648

the Assistant Secretary of the Treasury dealing with international finance, and the officer of the Agency for International Development dealing with development financing.

PART IV. RESERVED FUNCTIONS

SEC. 401. Reservation of functions to the President. There are hereby excluded from the functions delegated by the foregoing provisions of this order:

(a) The functions conferred upon the President by sections 504(b), 613(a), 614(a), 620(a), 620 (d), 621(a),38 622(b), 622(c), 633 (a),3 633(b), and 634 (a) of the Act.

(b) The functions conferred upon the President by the Act and section 408 (b) of the Mutual Security Act of 1954 with respect to the appointment of officers required to be appointed by and with the advice and consent of the Senate and with respect to the appointment of officers pursuant to section 624 (c) of the Act and the function so conferred by section 204 of the Act of assigning officers to the Development Loan Committee.

(c) The functions conferred upon the President with respect to determinations, certifications, directives, or transfers of funds, as the case may be, by sections 202(b), 205, 303, 506 (b) (4), 510(a), 604 (a),“ 610, 614 (c), 624 (e) (7), 632 (b),43 634(c), and 643 (d) of the Act. (d) The following-described functions conferred

President:

upon the

(1) Those under section 503 with respect to findings. (2) Those under sections 506(b) (1), (2), and (3) in respect of countries which do not agree to the conditions set forth therein.

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

I.e., the authority for the President to "exercise any functions conferred upon him by this Act through such agency or officer of the United States Government as he shall direct."

I.e., the authority to perform function under the Act "without regard to such provisions of law (other than the Rem gotiation Act of 1951, as amended (50 U.S.C. App. 1211 et seq.)), regulating the making, performance, amendment, or modification of contracts and the expenditure of funds of the United States Government as the President may specify."

40 Which reads: "The functions authorized under part II may be performed without regard to such provisions as the President may specify of the joint resolution of November 4, 1939 (54 Stat. 4), as amended."

"I.e., Presidential determination that purchases outside the United States under the Act do not adversely affect the economy of the United States, the industrial mobilization base, balance of payments, etc.

Which places expenses incurred by the Inspector General, Foreign Assistance, under the same strictures as specified in sec. 634(c).

43 Which reads: "Any officer of the United States Government carrying out functions under this Act may utilize the services (including defense services) and facilities of, or procure commodities and defense articles from any agency of the United States Government as the President shall direct, or with the consent of the head of such agency, and funds allocated pursuant to this subsection to any such agency may be established in separate appropriation accounts on the books of the Treasury."

(3) Those under section 511(b), except the functions of determining that internal security requirements may be the basis for programs of military assistance in the form of defense services and reporting any such determination.

(4) That under section 614(b) with respect to determining any provisions of law to be disregarded to achieve the purpose of that section.

(e) Those with respect to determinations under sections 103(b) (first proviso), 104 and 203 of the Mutual Defense Assistance Control Act of 1951.44

(f) That under section 523 (d) of the Mutual Security Act of 1954.45 (g) Those under section 107 of the Foreign Assistance and Related Agencies Appropriation Act, 1962 (75 Stat. 717),16 and those with respect to determination and certification under sections 1097 and 602, respectively, of that act.

PART V. FUNDS

SEC. 501. Allocation of funds. Funds appropriated or otherwise made available to the President for carrying out the Act shall be deemed to be allocated without any further action of the President, as follows:

(a) There are allocated to the Secretary of State all funds made available for carrying out the Act except those made available for carrying out Part II of the Act.

(b) There are allocated to the Secretary of Defense funds made available for carrying out Part II of the Act.

SEC. 502. Reallocation of funds. The Secretary of State and the Secretary of Defense may allocate or transfer as appropriate any funds received under subsections (a) and (b), respectively, of section 501 of this order, to any agency, or part thereof, for obligation or expenditure thereby consistent with applicable law.

ESTABLISHMENT OF THE AGENCY FOR INTERNATIONAL DEVELOPMENT, EFFECTIVE SEPTEMBER 30, 1961: Department of State Delegation of Authority No. 104, November 3, 1961 49

Text in American Foreign Policy, 1950–1955: Basic Documents, pp. 3101-3105.

Text in American Foreign Policy: Current Documents, 1960, p. 848.

Requesting the President to report to Congress on the implications of any seating of the Chinese Communist regime in the U.N. Security Council or General Assembly.

I.e., Presidential determination of the national interest in furnishing aid to countries which, in turn, supply aid to Cuba under the Castro regime.

48 See footnote 42 above.

26 Fed. Reg. 10608. The Delegation of Authority was deemed to have been effective as of Sept. 30, 1961.

649. OPERATIONS OF THE AGENCY FOR INTERNATIONAL DEVELOPMENT DURING THE PERIOD JULY 1DECEMBER 31, 1961: Report of the National Advisory Council on International Monetary and Financial Problems, February 8, 1963 (Excerpt) 50

LOAN AUTHORIZATIONS

During the half-year period under review, the International Cooperation Administration (ICA) and the corporate Development Loan Fund (DLF) were abolished and the AID was established as a single foreign aid agency. The period therefore covers a time of transition and reorganization in foreign aid program formulation and execution. In order to meet commitments made by the DLF prior to July 1961, a liquidation account in the amount of $307 million was established. A major portion of AID lending activity during the period consisted of reexamining these commitments in the light of new agency criteria and legislative requirements, and in executing loan agreements for those meeting the new standards. This exercise resulted in signed loan agreements totaling $219 million, or approximately 70 percent of the amount of the liquidation account.

In addition, as indicated in table 19, development loans totaling $285 million were authorized by the AID-DLF pursuant to the Foreign Assistance Act of 1961. Of this amount $100 million was anthorized for India, $65 million for Brazil, and $10 million for Israel to finance general commodity imports to these countries, and the remaining loans ranged in amount from $100,000 to assist in financing the importation of machinery and equipment for a pulp and paper plant in the Philippines to $20.9 million for a thermal power plant in Korea and a total of $71.6 million covering two loans for similar power projects in India. During the period, the AID also authorized two Supporting Assistance loans totaling $14 million-an $8 million loan for commodity imports to Ecuador, and a loan of $6 million to Peru for emergency relief.

50 Part IX of the NAC report; H. Doc. 69, 88th Cong., Feb. 14, 1963, pp. 32-36. Text ante, doc. 647.

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