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opment Cooperation Act of 1985, S. 960], 99 Stat. 190, approved August 8, 1985; Public Law 99-198 [Food Security Act of 1985, H.R. 2100], 99 Stat. 1354, approved December 23, 1985; Public Law 100-202 [Continuing Appropriations for 1988, H.J. Res. 395], 101 Stat. 1329, approved December 22, 1987; Public Law 100418 [Omnibus Trade and Competitiveness Act of 1988, H.R. 4848] 102 Stat. 1107, approved August 23, 1988; Public Law 100-576 [Bangladesh Disaster Assistance Act of 1988, H.R. 5389], 102 Stat. 2897, approved October 31, 1988; Public Law 101-624 [Food, Agriculture, Conservation, and Trade Act of 1990; S. 2830], 104 Stat. 3359, approved November 28, 1990; Public Law 102-237 [Food, Agriculture, Conservation, and Trade Act Amendments of 1991; H.R. 3029], 105 Stat. 1818, approved December 13, 1991; Public Law 102-532 [Enterprise for the Americas Initiative Act of 1992; H.R. 4059], 106 Stat. 3509, approved October 27, 1992; Public Law 102-549 [Jobs Through Exports Act of 1992; H.R. 4996], 106 Stat. 3651, approved October 28, 1992; and by Public Law 102-583 [International Narcotics Control Act of 1992; H.R. 6187], 106 Stat. 4914, approved November 2, 1992

AN ACT To increase the consumption of United States agricultural commodities in foreign countries, to improve the foreign relations of the United States, 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 "Agricultural Trade Development and Assistance Act of 1954."

SECTION 1. SHORT TITLE.

This Act may be cited as the "Agricultural Trade Development and Assistance Act of 1954".

SEC. 2.3 UNITED STATES POLICY.

It is the policy of the United States to use its abundant agricultural productivity to promote the foreign policy of the United States by enhancing the food security of the developing world through the use of agricultural commodities and local currencies accruing under this Act to

(1) combat world hunger and malnutrition and their causes; (2) promote broad-based, equitable, and sustainable development, including agricultural development;

(3) expand international trade;

(4) develop and expand export markets for United States agricultural commodities; and

(5) foster and encourage the development of private enterprise and democratic participation in developing countries. SEC. 3.

GLOBAL FOOD AID NEEDS.

In view of the principal findings of the National Research Council of the National Academy of Sciences that doubling food aid above 1990 levels of about 10,000,000 metric tons per year would be necessary to meet projected global food needs throughout the decade of the nineties, it is the sense of Congress that the President should

(1) increase the contributions of food aid by the United States, and encourage other donor countries to increase their contributions toward meeting new food aid requirements; and

(2) encourage other advanced nations to make increased food aid contributions to combat world hunger and malnutrition,

37 U.S.C. 1691.

47 U.S.C. 1691a.

particularly through the expansion of international food and agricultural assistance programs.

TITLE I-TRADE AND DEVELOPMENT ASSISTANCE

SEC. 101.5 TRADE AND DEVELOPMENT ASSISTANCE.

(a) IN GENERAL.-The President shall establish a program under this title to provide for the sale of agricultural commodities to developing countries for dollars on credit terms, or for local currencies (including for local currencies on credit terms) for use under this title. Such program shall be implemented by the Secretary.

(b) GENERAL AUTHORITY.-To carry out the policies and accomplish the objectives described in section 2, the Secretary may negotiate and execute agreements with developing countries to finance the sale and exportation of agricultural commodities to such countries.

SEC. 102.6 ELIGIBLE COUNTRIES.

(a) IN GENERAL.-A country shall be considered to be a developing country and eligible for assistance under this title if such country has a shortage of foreign exchange earnings and has difficulty meeting all of its food needs through commercial channels, as determined by the Secretary.

(b) PRIORITY.-In determining whether and to what extent agricultural commodities will be made available to developing countries under this title, the Secretary shall give priority to developing countries that

(1) demonstrate the greatest need for food;

(2) are undertaking measures for economic development purposes to improve food security and agricultural development, alleviate poverty, and promote broad-based equitable and sustainable development; and

(3) have the demonstrated potential to become commercial markets for competitively priced United States agricultural commodities.

SEC. 103. TERMS AND CONDITIONS OF SALES.

(a) PAYMENT.—

(1) DOLLARS.-Except as provided in paragraph (2), agreements under this title shall require that payment for agricultural commodities be made in dollars.

(2) LOCAL CURRENCIES.—

(A) IN GENERAL.-The Secretary may permit a recipient country to make payment under an agreement under this title in the local currency of such country in order to use the proceeds from such payments to carry out activities under section 104.

(B) RATES OF EXCHANGE.-Payments in local currency shall be at rates of exchange that are no less favorable than the highest exchange rate legally obtainable in the

57 U.S.C. 1701. 67 U.S.C. 1702. 77 U.S.C. 1703.

country and that are no less favorable than the highest exchange rate obtainable by any other country.

(b) INTEREST.-Such agreements shall provide that interest accrue on the payment deferred under such agreement at a concessional rate as determined appropriate by the Secretary.

(c) DURATION.-Payments required under such agreements may be made in reasonable annual amounts over the period (not less than 10 nor more than 30 years from the date of the last delivery of commodities in each year under such agreement) specified in the agreement.

(d) DEFERRAL OF PAYMENTS.-The Secretary may defer the date on which the recipient country is required to begin making payment, under such agreements, for a period of not in excess of 7 years after the date of the last delivery of commodities in each year under the agreement, and interest shall be computed from the date of such last delivery.

(e) DELIVERY OF COMMODITIES.-Delivery of the commodities shall be made in accordance with the terms of the agreement.

NOTE. See 31 USC 1306, use of foreign currencies, in
Legislation on Foreign Relations Through 1993, vol. I-A.
Section 507 of the Public Works for Water, Pollution
Control, and Power Development and Atomic Energy Com-
mission Appropriation Act, 1970 (Public Law 91-144; 83
Stat. 338), provided as follows:

"Pursuant to section 1415 of the Act of July 15, 1952 (66
Stat. 662), foreign credits (including currencies) owed to or
owned by the United States may be used by Federal agen-
cies for any purpose for which appropriations are made for
the current fiscal year (including the carrying out of Acts
requiring or authorizing the use of such credits), only
when reimbursement therefor is made to the Treasury
from applicable appropriations of the agency concerned:
Provided, That such credits received as exchange allow-
ances or proceeds of sales of personal property may be
used in whole or part payment for acquisition of similar
items, to the extent and in the manner authorized by law,
without reimbursement to the Treasury.".

SEC. 104.8 USE OF LOCAL CURRENCY PAYMENT.

(a) IN GENERAL.-Agreements under this title may provide that the Secretary shall use payments made in local currencies by the recipient country in accordance with this section.

(b) SPECIAL ACCOUNT.-Foreign currencies received by the Secretary under this title shall be deposited in a separate account, that may be interest-bearing, to the credit of the United States and such currencies and interest thereon shall be used as provided for in this section.

87 U.S.C. 1704.

(c) ACTIVITIES.-The proceeds from the payments referred to in subsection (a) may be used in the recipient country for the following:

(1) TRADE DEVELOPMENT.-To carry out programs to help develop markets for United States agricultural commodities on a mutually beneficial basis in the recipient country.

(2) AGRICULTURAL DEVELOPMENT.-To support—

(A) increased agricultural production, including availability of agricultural inputs, with emphasis on small farms, processing of agricultural commodities, forestry management, and land and water management;

(B) credit policies for private-sector agriculture development;

(C) establishment and expansion of institutions for basic and applied agricultural research and the use of such research through development of extension services; and

(D) programs to control rodents, insects, weeds, and other animal or plant pests.

(3) AGRICULTURAL BUSINESS DEVELOPMENT LOANS.-To make loans to United States business entities (including cooperatives) and branches, subsidiaries, or affiliates of such entities for agricultural business development and agricultural trade expansion in such recipient countries.

(4) AGRICULTURAL FACILITIES LOANS.-To make loans to domestic or foreign entities (including cooperatives) for the establishment of facilities for aiding in the utilization or distribution of, or otherwise increasing the consumption of and markets for, United States agricultural products.

(5) TRADE PROMOTION.-To promote agricultural trade development, under procedures established by the Secretary, by making loans or through other activities (including trade fairs) that the Secretary determines to be appropriate.

(6) PRIVATE SECTOR AGRICULTURAL TRADE DEVELOPMENT.—To conduct private sector agricultural trade development activities in the recipient country, as determined appropriate by the Secretary.

(7) RESEARCH.-To conduct research in agriculture, forestry, and aquaculture, including collaborative research which is mutually beneficial to the United States and the recipient country.

(8) UNITED STATES OBLIGATIONS. To make payments of United States obligations (including obligations entered into pursuant to other laws).

(d) FISCAL REQUIREMENTS REGARDING USE OF LOCAL CURREN

CIES.

(1) EXEMPTION.-Section 1306 of title 31, United States Code, shall not apply to local currencies used by the President under paragraphs (1) through (7) of subsection (c).

(2) Use of curRENCIES BY OTHER agencies.—Any department or agency of the Federal Government other than the Department of Agriculture using any such local currencies for a purpose for which funds have been appropriated shall reimburse

the Commodity Credit Corporation in an amount equivalent to the dollar value of the currencies used.

SEC. 105.9 VALUE-ADDED FOODS.

(a) POLICY.-Congress declares it to be the policy of the United States to assist developing countries that are or have been recipients of high protein, blended, or fortified foods under title II to continue to combat hunger and malnutrition among the lower income segments of the population of such countries, especially children, through the continued provision of such foods under this title.

(b) PARTIAL WAIVER OF REPAYMENT.—In implementing the policy declared in subsection (a), the Secretary, in entering into agreements for the sale of high protein, blended, or fortified foods under this title with countries that

(1) provide assurances that the benefits of any waiver granted under this subsection will be passed on to the individual recipients of such foods; and

(2) have a reasonable potential for transferring benefits of such waiver to commercial purchasers of such foods;

may make provisions for a waiver of payment of not to exceed an amount equal to the value of that part of the product that is attributable to the costs of processing, enrichment, or fortification of such product.

(c) MINIMIZE IMPACT.-In implementing this section, the Secretary shall, to the extent practicable, minimize the impact of this section on other commercial and concessional sales of whole grains. TITLE II-EMERGENCY AND PRIVATE ASSISTANCE PROGRAMS 10

SEC. 201.11 GENERAL AUTHORITY.

The President shall establish a program under this title to provide agricultural commodities to foreign countries on behalf of the people of the United States to

(1) address famine or other urgent or extraordinary relief requirements;

(2) combat malnutrition, especially in children and mothers; (3) carry out activities that attempt to alleviate the causes of hunger, mortality and morbidity;

(4) promote economic and community development;

(5) promote sound environmental practices; and

(6) carry out feeding programs.

Such program shall be implemented by the Administrator.

97 U.S.C. 1705.

10 Sec. 703 of the FREEDOM Support Act (Public Law 102-511; 106 Stat. 3349), provided the following:

"Sec. 703. Assistance for Private Voluntary Organizations.

"The President is encouraged to use funds made available under section 109 of Public Law 102-229 (105 Stat. 1708), and funds made available under chapter 11 of part I of the Foreign Assistance Act of 1961, to assist private voluntary organizations and cooperatives in carrying out food assistance programs for the independent states of the former Soviet Union under"(1) section 1110 of the Food Security Act of 1985 (7 U.S.C. 17360); "(2) section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431); or

"(3) title II of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1721 et seq.).".

117 U.S.C. 1721.

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