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(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


(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 Secre tary 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



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 1 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.


EMERGENCY ASSISTANCE.—Notwithstanding any other provision of law, the Administrator may provide agricultural commodities to meet emergency food needs under this title through governments and public or private agencies, including intergovernmental organizations such as the World Food Program and other multilateral organizations, in such manner and on such terms and conditions as the Administrator determines appropriate to respond to the emergency.

(b) NON-EMERGENCY ASSISTANCE.—The Administrator may provide agricultural commodities for non-emergency assistance under this title through eligible organizations (as described in subsection (d)) that have entered into an agreement with the Administrator to use such commodities in accordance with this title.

(c) USES OF ASSISTANCE.—Agricultural commodities provided under this title may be made available for direct distribution, sale, barter, or other appropriate disposition.

(d) ELIGIBLE ORGANIZATIONS.—To be eligible to receive assistance under subsection (b) an organization shall be

(1) a private voluntary organization or cooperative that is, to the extent practicable, registered with the Administrator; or

(2) an intergovernmental organization, such as the World Food Program. (e) SUPPORT FOR PRIVATE VOLUNTARY ORGANIZATIONS AND COOPERATIVES.

(1) IN GENERAL.-Of the funds made available in each fiscal year under this title to private voluntary organizations and cooperatives, not less than $10,000,000 and not more than $13,500,000 shall be made available by the Administrator to assist such organizations and cooperatives in

(A) establishing new programs under this title; and

(B) meeting specific administrative, management, personnel and internal transportation and distribution costs for carrying out programs in foreign countries under this


In order to receive funds made available under paragraph (1), a private voluntary organization or cooperative must submit a request for such funds (which must be approved by the Administrator) when submitting a proposal to the Administrator for an agreement under this title. Such request for funds shall include a specific explanation of

(A) the program costs to be offset by such funds;

(B) the reason why such funds are needed in carrying out the particular assistance program; and

(C) the degree to which such funds will improve the provision of food assistance to foreign countries (particularly those in sub-Saharan Africa suffering from acute, long

term food shortages). (3) ASSISTANCE WITH RESPECT TO SALE.—Upon the request of a private voluntary organization or cooperative, the Administrator may provide assistance to that organization or cooperative with respect to the sale of agricultural commodities made

12 7 U.S.C. 1722

available to it under this title. (f) EFFECTIVE USE OF COMMODITIES.—To ensure that agricultural commodities made available under this title are used effectively and in the areas of greatest need, organizations or cooperatives through which such commodities are distributed shall

(1) to the extent feasible, work with indigenous institutions and employ indigenous workers;

(2) assess and take into account nutritional and other needs of beneficiary groups;

(3) help such beneficiary groups design and carry out mutually acceptable projects;

(4) recommend to the Administrator methods of making assistance available that are the most appropriate for each local setting;

(5) supervise the distribution of commodities provided and the implementation of programs carried out under this title; and

(6) periodically evaluate the effectiveness of projects undertaken under this title. (g) LABELING.-Commodities provided under this title shall, to the extent practicable, be clearly identified with appropriate markings on the package or container of such commodity in the language of the locality in which such commodities are distributed, as being furnished by the people of the United States of America. SEC. 203.13 GENERATION AND USE OF FOREIGN CURRENCIES BY PRI.

VATE VOLUNTARY ORGANIZATIONS AND COOPERATIVES. (a) LOCAL SALE AND BARTER OF COMMODITIES.-An agreement entered into between the Administrator and a private voluntary organization or cooperative to provide food assistance through such organization or cooperative under this title may provide for the sale or barter in the recipient country of the commodities to be provided under such agreement.

(b) MINIMUM LEVEL OF LOCAL SALES.—In carrying out agreements of the type referred to in subsection (a), the Administrator shall permit private voluntary organizations and cooperatives to sell, in recipient countries, an amount of commodities equal to not less than 10 percent of the aggregate amounts of all commodities distributed under non-emergency programs under this title for each fiscal year, to generate foreign currency proceeds to be used as provided in this section.

(C) DESCRIPTION OF INTENDED USES.-A private voluntary organization or cooperative submitting a proposal to enter into a nonemergency food assistance agreement under this title shall include in such proposal a description of the intended uses of any foreign currency proceeds that may be generated through the sale, in the recipient country, of any commodities provided under an agreement entered into between the Administrator and the organization or cooperative.

13 7 U.S.C. 1723.

(d) USE.—Foreign currencies generated from any partial or full sale or barter of commodities by a private voluntary organization or cooperative under a non-emergency food assistance agreement under this title may

(1) be used to transport, store, distribute, and otherwise enhance the effectiveness of the use of agricultural commodities provided under this title;

(2) be used to implement income generating, community development, health, nutrition, cooperative development, agricultural, and other developmental activities within the recipient country; or

(3) be invested and any interest earned on such investment may be used for the purposes for which the assistance was provided to that organization, without further appropriation by


(1) MINIMUM ASSISTANCE.—Except as provided in paragraph (3), the Administrator shall make agricultural commodities available for food distribution under this title in an amount that

(A) for fiscal year 1991, is not less than 1,925,000 metric tons;

(B) for fiscal year 1992, is not less than 1,950,000 metric tons;

(C) for fiscal year 1993, is not less than 1,975,000 metric tons;

(D) for fiscal year 1994, is not less than 2,000,000 metric tons; and

(E) for fiscal year 1995, is not less than 2,025,000 metric tons. (2) MINIMUM NON-EMERGENCY ASSISTANCE.Of the amounts specified in paragraph (1), and except as provided in paragraph (3), the Administrator shall make agricultural commodities available for non-emergency food distribution through eligible organizations under section 202 in an amount that,

(A) for fiscal year 1991, is not less than 1,450,000 metric tons;

(B) for fiscal year 1992, is not less than 1,475,000 metric tons;

(C) for fiscal year 1993, is not less than 1,500,000 metric tons;

(D) for fiscal year 1994, is not less than 1,525,000 metric tons; and

(E) for fiscal year 1995, is not less than 1,550,000 metric tons. (3) EXCEPTION.-The Administrator may waive the requirements of paragraphs (1) and (2) for any fiscal year if the Administrator determines that such quantities of commodities cannot be used effectively to carry out this title or in order to meet an emergency. In making a waiver under this paragraph,

14 7 U.S.C. 1724.

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