Gross obligations. Revenue.... Net obligations. Inventory at end of year: Program by activities: 48,400 66,600 Inspections (obligations). 739 825 890 38,900 53,200 9,500 Financing: 13,400 Advances and reimbursements from other accounts 739 825 890 Acquisition value.. Cost to revolving fund. End of year Treasury balance.. Under authorities specified in section 624 (d) of the Foreign Assistance Act of 1961, as amended (75 Stat. 424), the Inspector General, Foreign Assistance, has broad responsibilities relating to the review of the effectiveness of U.S. foreign assistance activities, including economic and military assistance programs, and Peace Corps and overseas Public Law 480 activities. The expenses of the Office are funded in this account through expenditure transfers from various Foreign Assistance and Peace Corps appropriations. Requirements from the various appropriations are as follows (in thousands of dollars): 2.3 Foreign Service Reserve officers... 3.4 $14,935 $16,192 $16,491 $13.490 $16,408 GENERAL PROVISIONS [SEC. 101. None of the funds herein appropriated (other than funds appropriated under the authorization for "International organizations and programs") shall be used to finance the construction of any new flood control, reclamation, or other water or related land resource project or program which has not met the standards and criteria used in determining the feasibility of flood control, reclamation and other water and related land resource programs and projects proposed for construction within the United States of America as per memorandum of the President dated May 15, 1962.] [SEC. 102. Obligations made from funds herein appropriated for engineering and architectural fees and services to any individual or group of engineering and architectural firms on any one project in excess of $25,000 shall be reported to the Committees on Appropriations of the Senate and House of Representatives at least twice annually.] [SEC. 103. Except for the appropriations entitled "Contingency fund" and "Development loans", not more than 20 per centum of any appropriation item made available by this title shall be obligated and/or reserved during the last month of availability.] [SEC. 104. None of the funds herein appropriated nor any of the counterpart funds generated as a result of assistance hereunder or any prior Act shall be used to pay pensions, annuities, retirement pay or adjusted service compensation for any persons heretofore or hereafter serving in the armed forces of any recipient country.] [SEC. 105. The Congress hereby reiterates its opposition to the seating in the United Nations of the Communist China regime as the representative of China, and it is hereby declared to be the continuing sense of the Congress that the Communist regime in China has not demonstrated its willingness to fulfill the obligations contained in the Charter of the United Nations and should not be recognized to represent China in the United Nations. In the event of the seating of representatives of the Chinese Communist regime in the Security Council or General Assembly of the United Nations the President is requested to inform the Congress insofar as is compatible with the requirements of national security, of the implications of this action upon the foreign policy of the United States and our foreign relationships, including that created by membership in the United Nations, together with any recommendations which he may have with respect to the matter.] [SEC. 106. It is the sense of Congress that any attempt by foreign nations to create distinctions because of their race or religion among American citizens in the granting of personal or commercial access or any other rights otherwise available to United States citizens generally is repugnant to our principles; and in all negotiations between the United States and any foreign state arising as a result of funds appropriated under this title these principles shall be applied as the President may determine.] [SEC. 107. (a) No assistance shall be furnished to any country which sells, furnishes, or permits any ships under its registry to carry to Cuba, so long as it is governed by the Castro regime, under the Foreign Assistance Act of 1961, as amended, any arms, ammunition, 650100-636 GENERAL PROVISIONS-Continued implements of war, atomic energy materials, or any articles, materials, or supplies, such as petroleum, transportation materials of strategic value, and items of primary strategic significance used in the production of arms, ammunition, and implements of war, contained on the list maintained by the Administrator pursuant to title I of the Mutual Defense Assistance Control Act of 1951, as amended.] [(b) No economic assistance shall be furnished to any country which sells, furnishes, or permits any ships under its registry to carry items of economic assistance to Cuba so long as it is governed by the Castro regime, under the Foreign Assistance Act of 1961, as amended, unless the President determines that the withholding of such assistance would be contrary to the national interest and reports such determination to the Foreign Relations and Appropriations Committees of the Senate and the Foreign Affairs and Appropriations Committees of the House of Representatives. Reports made pursuant to this subsection shall be published in the Federal Register within seven days of submission to the committees and shall contain a statement by the President of the reasons for such determination.] [SEC. 108. Any obligation made from funds provided in this title for procurement outside the United States of any commodity in bulk and in excess of $100,000 shall be reported to the Committees on Appropriations of the Senate and the House of Representatives at least twice annually: Provided, That each such report shall state the reasons for which the President determined, pursuant to criteria set forth in section 604(a) of the Foreign Assistance Act of 1961, as amended, that foreign procurement will not adversely affect the economy of the United States.] [SEC. 109. (a) No assistance shall be furnished to any nation, whose government is based upon that theory of government known as Communism under the Foreign Assistance Act of 1961, as amended, for any arms, ammunition, implements of war, atomic energy materials, or any articles, materials, or supplies, such as petroleum, transportation materials of strategic value, and items of primary strategic significance used in the production of arms, ammunition, and implements of war, contained on the list maintained by the Administrator pursuant to title I of the Mutual Defense Assistance Control Act of 1951, as amended.] [(b) No economic assistance shall be furnished to any nation whose government is based upon that theory of government known as Communism under the Foreign Assistance Act of 1961, as amended (except section 214(b)), unless the President determines that the withholding of such assistance would be contrary to the national interest and reports such determination to the Foreign Affairs and Appropriations Committees of the House of Representatives and Foreign Relations and Appropriations Committees of the Senate. Reports made pursuant to this subsection shall be published in the Federal Register within seven days of submission to the committees and shall contain a statement by the President of the reasons for such determination.] [SEC. 110. None of the funds appropriated or made available pursuant to this Act for carrying out the Foreign Assistance Act of 1961, as amended, may be used for making payments on any contract for procurement to which the United States is a party entered into after the date of enactment of this Act which does not contain a provision authorizing the termination of such contract for the convenience of the United States.] [SEC. 111. None of the funds appropriated or made available under this Act for carrying out the Foreign Assistance Act of 1961, as amended, may be used to make payments with respect to any contract for the performance of services outside the United States by United States citizens where such citizens have not been investigated for loyalty and security in the same manner and to the same extent as would apply if they were regularly employed by the United States.] [SEC. 112. None of the funds appropriated or made available under this Act for carrying out the Foreign Assistance Act of 1961, as amended, may be used to make payments with respect to any capital project financed by loans or grants from the United States where the United States has not directly approved the terms of the contracts and the firms to provide engineering, procurement, and construction services on such project.] [SEC. 113. Of the funds appropriated or made available pursuant SEC. [115] 101. Foreign currencies not to exceed $200,000, made available for loans pursuant to section 104(e) of the Agricultural Trade Development and Assistance Act of 1954, as amended, shall be available during the current fiscal year for expenses incurred incident to such loans. SEC. 102. United States dollars directly paid to the United States under the Agreement between the United States of America and Japan regarding the Settlement of Postwar Economic Assistance to Japan are hereby appropriated, as authorized by section 618 of the Foreign Assistance Act of 1961, as amended, for the same general purposes as are set forth in any of the subparagraphs under "Economic Assistance" in this Act except the subparagraph entitled "Administrative expenses", to the extent such dollars are available: Provided, That the total amount so appropriated for each such general purpose shall not be increased by the provisions of this section. [SEC. 601. No part of any appropriation contained in this Act shall be used for publicity or propaganda purposes within the United States not heretofore authorized by the Congress.] [SEC. 602. None of the funds herein appropriated shall be used for expenses of the Inspector General, Foreign Assistance, after the expiration of the thirty-five day period which begins on the date the General Accounting Office or any committee of the Congress, or any duly authorized subcommittee thereof, charged with considering foreign assistance legislation, appropriations, or expenditures, has delivered to the office of the Inspector General, Foreign Assistance, a written request that it be furnished any document, paper, communication, 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 forbidden the furnishing thereof pursuant to such request and his reason for so doing.] Public Law 86-147 (73 Stat. 299), approved August 7, 1959, provided for membership of the United States in the Inter-American Development Bank, and authorized an appropriation of $450 million as the initial U.S. subscription. The Bank is an institution sponsored by the nations of the Organization of American States and is designed to accelerate the economic development of the American to this Act not more than $6,000,000 may be used during the fiscal republics by providing capital and technical assistance year ending June 30, 1963, in carrying out section 241 of the Foreign Assistance Act of 1961, as amended.] [SEC. 114. None of the funds appropriated or made available pursuant to this Act for carrying out the Foreign Assistance Act of 1961, as amended, may be used to pay in whole or in part any assessments, arrearages or dues of any member of the United Nations.] and by encouraging private investment in development projects. The U.S. subscription consists of three parts. The first is a subscription of $150 million for paid-in shares of The first capital stock, payable in three installments. installment of $30 million was paid in June 1960; the second and third installments of $60 million each were paid in October 1961 and October 1962, respectively. The second part is $200 million of callable capital stock which can be called only to meet obligations of the Bank on securities which it has issued in the private financial market or on loans which it has guaranteed. Funds were appropriated for this purpose in 1960. Third is a subscription of $100 million in the Fund for Special Operations of the Bank. Fifty million dollars of this was paid in June 1960, and the other $50 million in October 1961. The present request is made in conjunction with the proposal of new authorization of a U.S. subscription to expand and restore the liquidity of the Fund for Special Operations. The Bretton Woods Agreements Act of July 31, 1945, authorized the acceptance of membership in the International Bank for Reconstruction and Development and the subscription of $3,175 million to its capital stock. On June 17, 1959 (73 Stat. 80), the Bretton Woods Agreement Act was amended to increase the U.S. subscription to callable capital stock by $3,175 million, in connection with the approximate doubling of the Bank's authorized capital to its present level of $21 billion, of which $20.5 has been subscribed. The United States paid $635 million of the original subscription in cash and non-interest-bearing nonnegotiable notes. The remaining balance of obligational authority ($5,715 million) will not be called unless required to meet the Bank's obligations. Calls on unpaid subscriptions must be a uniform percentage of the amounts subscribed by each member country. By the end of June 1962, the Bank had made net loans totalling $6.5 billion in 60 member countries and terri tories. SUBSCRIPTION TO THE INTERNATIONAL Development AssOCIATION For payment of the [third] fourth installment of the subscription of the United States to the International Development Association, $61,656,000, to remain available until expended. (74 Stat. 298; Foreign Aid and Related Agencies Appropriation Act, 1963.) Program and Financing (in thousands of dollars) Public Law 86-565 (74 Stat. 293), approved June 30, 1960, authorized membership of the United States in the International Development Association and authorized $320.3 million to be appropriated for subscription to the Association. The International Development Association is an affiliate of the International Bank which provides development financing on flexible terms to less developed member countries. Most of its initial resources are being provided by countries other than the United States including $443 million from other economically advanced countries. Total subscriptions, including those of the less developed countries, are scheduled at $1 billion of which the U.S. portion is about 32% of this total. Subscriptions are to be paid by the members in five annual installments, beginning in 1961. The $61.7 million herein requested is for the fourth payment in this series. The first installment of $73.7 million was paid in 1961; the second and third installments of $61.7 million each were paid in 1962 and 1963. Additional installments of $61.7 million each are planned for payment in 1964 and 1965. As of June 30, 1962, the Association had made credit commitments totalling $235 million in 11 countries and territories. Upon completion of negotiations with other countries, authorization for replenishment of the Association's resources will be requested in 1964, though appropriations of newly authorized funds will not be necessary until 1966. LOANS TO THE INTERNATIONAL MONETARY FUND [For loans to the International Monetary Fund, as authorized by the Act of June 19, 1962 (Public Law 87-490), $2,000,000,000, to remain available until expended. The indefinite appropriation for the payment of interest on the public debt (31 U.S.C. 711), shall be available for the payment of charges in connection with any purchases of currencies or gold by the United States from the International Monetary Fund.] (76 Stat. 105; Foreign Aid and Related Agencies Appropriation Act, 1963.) Public Law 87-490 authorized an appropriation of $2 billion to complete action requisite for the United States to adhere to a Decision of the Executive Directors of the International Monetary Fund of January 5, 1962. Public Law 87-872 contained the necessary appropriation, and on October 24, 1962, the United States formally deposited an instrument "setting forth that it has adhered in accordance with its law and has taken all steps necessary to enable it to carry out the terms and conditions" of the Decision. U.S. action brought into effect a ten-nation, $6 billion arrangement providing, under specified conditions, for loans by the participants to the Fund to forestall or cope with an impairment of the international monetary system. The United States is now in a position to lend up to $2 billion to the Fund, but would not be expected to do so in the absence of a substantial improvement in its balance of payments position. No loan is presently con61,656 templated, nor is such a loan likely under present conditions. 1963 1964 estimate estimate 61,656 61,656 61,656 61,656 61,656 For expenses necessary to enable the President to carry out the provisions of the Peace Corps Act (75 Stat. 612), as amended, including purchase of not to exceed [ten] five passenger motor vehicles for use outside the United States, [$59,000,000] $108,000,000, of which not to exceed [$15,500,000] $20,500,000 shall be available for administration and program support costs. (Foreign Aid and Related Agencies Appropriation Act, 1963; additional authorizing legislation to be proposed.) Program and Financing (in thousands of dollars) 1 Estimated net figures after training. 2 Includes 484 replacements in continuing programs of volunteers who will have completed their 2-year term of service by Aug. 31. * Includes 3,094 replacements in continuing programs of volunteers who will have completed their 2-year term of service during the period Aug. 31, 1963, to Aug. 31, 1964. The rate of increase of countries in which the Peace Corps program has been or will be initiated in 1962 and 1963 is not applicable to 1964. It is assumed that during 1963, programs will have been developed for the majority of countries in which the Peace Corps at present has a potential for service. Requests for Peace Corps assistance in new countries and for new activities in countries in which volunteers For 1964 it is are already working continue to mount. 108,000 anticipated that in all countries in which the Peace Corps is operating, there will be a continuing demand for volunteers. Most countries are requesting an increasing number to serve in fields of activity to which volunteers already are contributing their skills as well as in new fields of activity. The proposed 1964 program by region is as follows: 30,000 58,550 108,000 1. Volunteer and project costs.-The purpose of the Peace Corps is to provide skilled Americans to interested countries in need of manpower, and, in the course of meeting this need, to promote understanding between the people of the United States and the people served. Americans serving in the Peace Corps are selected initially to insure that they possess the skills and the personal characteristics and abilities to achieve both these ends. The intensive training they receive is designed to develop these attributes, to provide them with knowledge of the countries to which they go and the languages of those countries, and to allow an opportunity for further careful selection based on day-to-day observation. Peace Corps volunteers engage in activities at the request of the host countries. Their placement is jointly planned by officials of the country and Peace Corps staff. To the maximum extent possible, relatively large numbers of volunteers-40 or more of similar or complementary skills are involved in any one country program. Maximum association with the people of the host country is insured by planning the placement of volunteers in small groups throughout a region or country, and by the fact that, in most cases, they work for an indigenous national organization. For most purposes, volunteers are responsible to host country nationals in their jobs, although Peace Corps staff representatives in each country supervise their progress closely. Peace Corps planning and budgeting are based upon a "program year" which runs from the beginning of September through the end of the following August. On August 31, 1961, 484 volunteers were in training for or serving in eight countries. On August 31, 1962, 3,578 volunteers were in training for or working in 38 countries. A total of approximately 9,000 volunteers in 51 countries is projected for August 31, 1963, and 13,000 for August 31, 1964. Regional totals for these dates are: Africa, 3,750 volunteers.-On August 31, 1962, 1,110 volunteers were training for or working in 13 African countries: Cameroon, Ethiopia, Ghana, Ivory Coast, Liberia, Niger, Nigeria, Senegal, Sierra Leone, Somali Republic, Tanganyika, Togo, and Tunisia. By far the largest number were engaged in teaching. Since that date, volunteers have commenced training for or are working in Morocco, Nyasaland, and Gabon. Continued expansion of these programs will occur throughout 1963. For 1964 it is foreseen that programs will continue in all African countries where the Peace Corps volunteers will be working on August 31, 1963. The increase of 1,000 volunteers anticipated between that date and August 31, 1964, will be largely the result of the initiation of new activities in old countries and of expansion of present activities in those countries. Far East, 1,750 volunteers.-At the end of 1962, 799 volunteers were in training for or at work in projects in Malaya, the Philippines, North Borneo/Sarawak, and Thailand. These programs are in the fields of health, education, and rural community action, but they are distinguished by an emphasis on physical education and English teaching, particularly at the elementary level. The Peace Corps Far East program for 1963 includes the expansion of programs in these countries and the initiation of a program in Indonesia. The 1964 program for the Far East will involve mainly the replacement of volunteers completing their 2-year term of service. Latin America, 6,150 volunteers.-On August 31, 1962, 1,230 volunteers were in training for or working in 13 Latin American countries. The greatest expressed need in terms of manpower in Latin America is for middle-level workers in agriculture and rural and urban community work. Consequently, the majority of volunteers are training for or are engaged in agricultural extension and rural and community action programs. |