Page images
PDF
EPUB

(b) (1) 21a Agreements hereunder for the sale of agricultural commodities for dollars on credit terms shall include provisions to assure that the proceeds from the sale of the commodities in the recipient country are used for such economic development purposes as are agreed upon in the sales agreement or any amendment thereto. In negotiating such agreements with recipient countries, the United States shall emphasize the use of such proceeds for purposes which directly improve the lives of the poorest of their people and their capacity to participate in the development of their countries.

(2) 21 Greatest emphasis shall be placed on the use of such proceeds to carry out programs of agricultural development, rural development, nutrition, and population planning, and to carry out the program described in section 406(a)(1) of this Act, in those countries which are undertaking self-help measures to increase agricultural production, improve storage, transportation, and distribution of commodities, and reduce population growth in accordance with section 109 of this Act, and which programs are directed at and likely to achieve the policy objectives of sections 103 and 104 of the Foreign Assistance Act of 1961 and are consistent with the policy objectives of this Act, pursuant to agreements between the United States and foreign governments under which uses of such proceeds shall be made for such purposes. 21b

(3) 21a În entering into agreements for the sale of agricultural commodities for dollars on credit terms under this title, priority shall be given to countries which agree to use the proceeds from the sale of the commodities in accordance with the country's agricultural development plan which

(A) is designed to increase the access of the poor in the recipient country to an adequate, nutritious, and stable food supply; (B) provides for such objectives as

(i) making farm production equipment and facilities available to farmers,

(ii) credit on reasonable terms and conditions for small farmers, and

(iii) farm extension and technical information services designed to improve the marketing, storage, transportation, and distribution system for agricultural commodities and to develop the physical and institutional infrastructure supporting the small farmer;

(C) provides for participation by the poor, insofar as possible, in the foregoing at the regional and local levels; and

(D) is designed to reach the largest practicable number of farmers in the recipient country. (7 U.S.C. 1706.)

66

21 Sec. 205 of P.L. 94-161, 89 Stat. 852, Dec. 10, 1975, amended subsection 106(b) by inserting (1)" after "(b)" and by adding the last sentence of paragraph (b) (1) and all of paragraphs (b) (2) and (3).

2b Sec. 211 of the International Development and Food Assistance Act of 1977, P.L. 95-88, 91 Stat. 551, Aug. 3, 1977, further amended Sec. 106(b) (2) by deleting the following two sentences from the end thereof:

"Such uses shall be deemed payments for the purpose of section 103 (b) of this Act. except that for any fiscal year the total value of such payments may not exceed 15 per centum of the total value of all agreements entered into under title I of this Act for such fiscal year. Such payments shall be described in the reports required by section 408 of this Act and section 657 of the Foreign Assistance Act of 1961." See also footnote 4.

SEC. 107. (a) It is also the policy of the Congress to stimulate and maximize the sale of United States agricultural commodities for dollars through the private trade and to further the use of private enterprise to the maximum, thereby strengthening the development and expansion of foreign commercial markets for United States agricultural commodities. In furtherance of this policy, the Secretary of Agriculture is authorized, notwithstanding any other provision of law, to enter into agreements with foreign and United States private trade for financing the sale of agricultural commodities for export over such periods of time and on such credit terms as the Secretary determines will accomplish the objectives of this section. Any agreement entered into under this section shall provide for the development and execution of projects which will result in the establishment of facilities designed to improve the storage or marketing of agricultural commodities, or which will otherwise stimulate and expand private economic enterprise in any friendly country. Any agreement entered into under this section shall also provide for the furnishing of such security as the Secretary determines necessary to provide reasonable and adequate assurance of payment of the purchase price in dollars with interest at a rate which will as nearly as practicable be equivalent to the average cost of funds to the United States Treasury, as determined by the Secretary of the Treasury, on outstanding marketable obligations of the United States having maturities comparable to maturities of credits extended under this section. In no event shall the rate of interest be less than the minimum rate. or the delivery period, deferral of first payment, or term of credit be longer than the maximum term, authorized in section 106. In carrying out this Act, the authority provided in this section for making dollar sales shall be used to the maximum extent practicable.

(b) In carrying out the provisions of this section, the Secretary shall take reasonable precautions to safeguard usual marketings of the United States and to avoid displacing any sales of United States agricultural commodities which the Secretary finds and determines would otherwise be made for cash dollars.

(c) The Secretary shall obtain commitments from purchasers that will prevent resale or transshipment to other countries, or use for other than domestic purposes, of agricultural commodities purchased under this section.

(d) In carrying out this Act, the provisions of sections 102, 103 (a), 103(d), 103 (e), 103 (f), 103(j), 103 (k), 110, 401, 402, 403, 404. 405, 407, 408, and 409 shall be applicable to sales under this section. (7 U.S.C. 1707.)

SEC. 108. The Commodity Credit Corporation may finance ocean freight charges incurred pursuant to agreements for sales for foreign currencies (other than those providing for conversion to dollars as described in section 103(b) of this Act) entered into hereunder only to the extent that such charges are higher (than would otherwise be the case) by reason of a requirement that the commodities be transported in United States-flag vessels.22 Such agreements shall require the balance of such charges for transportation in United States ves

22 See footnote 2.

sels to be paid in dollars by the nations or organizations with whom such agreements are entered into. (7 U.S.C. 1708.)

[INTERNATIONAL DEVELOPMENT AND FOOD
ASSISTANCE ACT OF 1977

SEC. 214.22 The President shall conduct a comprehensive study of payment of ocean freight differentials between United States-flag rates and foreign-flag rates when United States-flag vessels are required to be used, in accordance with section 901 (b) of the Merchant Marine Act, 1936, for the shipment of agricultural commodities under the Agricultural Trade Development and Assistance Act of 1954 and shall recommend possible changes in the method of reimbursement which is now borne by the Commodity Credit Corporation. Such study shall be completed within 180 days after the date of enactment of this section and submitted to the following committees of the Congress: the Senate Committee on Agriculture, Nutrition, and Foresty; the Senate Committee on Commerce, Science, and Transportation; the House Committee on Agriculture; the House Committee on Merchant Marine and Fisheries; and the House Committee on International Relations. (7 U.S.C. 1708 note.)]

SEC. 109. (a) Before entering into agreements with developing countries for the sale of United States agricultural commodities on whatever terms, the President shall consider the extent to which the recipient county is undertaking wherever practicable self-help measures to increase per capita production and improve the means for storage and distribution of agricultural commodities, including:

(1) devoting land resources to the production of needed food rather than to the production of nonfood crops-especially nonfood crops in world surplus;

(2) development of the agricultural chemical, farm machinery and equipment, transportation and other necessary industries through private enterprise;

(3) training and instructing farmers in agricultural methods and techniques;

(4) constructing adequate storage facilities;

(5) improving marketing and distribution systems;

(6) creating a favorable environment for private enterprise and investment, both domestic and foreign, and utilizing available technical know-how;

(7) establishing and maintaining Government policies to insure adequate incentives to producers;

(8) establishing and expanding institutions for adaptive agricultural research;

(9) allocating for those purposes sufficient national budgetary and foreign exchange resources (including those supplied by bilateral, multilateral and consortium aid programs) and local currency resources (resulting from loans or grants to recipient governments of the proceeds of local currency sales);

22 P.L. 95-88, 91 Stat. 552, Aug. 3, 1977.

(10) carrying out voluntary programs to control populatio growth.23

In taking these self-help measures into consideration the Preside shall take into particular account the extent to which they are bein carried out in ways designed to contribute directly to developme progress in poor rural areas and to enable the poor to participa actively in increasing agricultural production through small far agriculture.23a

(b) Notwithstanding any other provisions of this Act, in agre ments with nations not engaged in armed conflict against Communi forces or against nations with which the United States has no dipl matic relations, not less than 20 per centum of the foreign currenci set aside for purposes other than those in section 104 (a), (b), (e and (j) shall be allocated for the self-help measures set forth in th section.

(c) Each agreement entered into under this title shall describe t program which the recipient country is undertaking to improve i production, storage, and distribution of agricultural commoditie and shall provide for termination of such agreement whenever t President finds that such program is not being adequately deve oped. (7 U.S.C. 1709.)

SEC. 110. Agreements shall not be entered into under this tit during any calendar year which will call for an appropriation reimburse the Commodity Credit Corporation in an amount in exce of $1,900,000,000, plus any amount by which agreements entered in under this title in prior years have called or will call for appropri tions to reimburse the Commodity Credit Corporation in amoun less than authorized for such prior years. (7 U.S.C. 1710.)

SEC. 111.23b Not more than 25 per centum of the food aid commo ities provided under this title in each fiscal year shall be allocat and agreed to be delivered to countries other than those which me the poverty criterion established for International Developme Association financing and which are affected by inability to secu sufficient food for their immediate requirements through their ov production or commercial purchase from abroad, unless the Preside certifies to the Congress that (1) the use of such food assistance required for humanitarian food purposes, or (2) the quantity commodities which would be required to be allocated under this se tion to countries which meet the International Development Asso ation poverty criterion could not be used effectively to carry out t humanitarian or development purposes of this title. A reduction b low 75 per centum in the proportion of food aid allocated and agre to be delivered to countries which meet the International Develo ment Association poverty criterion and which are affected by inab ity to secure sufficient food for their immediate requirements throug their own production or commercial purchase from abroad whi results from significantly changed circumstances occurring after t

23 Clause (10) of Sec. 109 (a) was added by P.L. 90-436, 82 Stat. 450, July 29, 196 23a The last sentence of Sec. 109 (a) was added by Sec. 206 of P.L. 94-161, 89 St 853, Dec. 20, 1975.

23b Sec. 111 was added by Sec. 207 of P.L. 94-161, 80 Stat. 853. Dec. 20, 1975, amended by Sec. 202 of the International Development and Food Assistance Act 1977, P.L. 95-88, 91 Stat. 545, Aug. 3, 1977, which substituted the first two senten for the original first three sentences.

initial allocation shall not constitute a violation of the requirements of this section. Any reallocation of food aid shall be in accordance with this section so far as practicable. The President shall report promptly any such reduction, and the reasons therefor, to the Congress. (7 U.S.C. 1711.)

SEC. 112. (a) 23 No agreement may be entered into under this title to finance the sale of agricultural commodities to the government of any country which engages in a consistent pattern of gross violations of internationally recognized human rights, including torture or cruel, inhuman, or degrading treatment or punishment, prolonged detention without charges, or other flagrant denial of the right to life, liberty, and the security of person, unless such agreement will directly benefit the needy people in such country. An agreement will not directly benefit the needy people in the country for purposes of the preceding sentence unless either the commodities themselves or the proceeds from their sale will be used for specific projects or programs which the President determines would directly benefit the needy people of that country. The agreement shall specify how the projects or programs will be used to benefit the needy people and shall require a report to the President on such use within 6 months after the commodities are delivered to the recipient country.

(b) To assist in determining whether the requirements of subsecion (a) are being met, the Committee on Agriculture, Nutrition, and Forestry of the Senate or the Committee on International Relations of the House of Representatives may require the President to submit n writing information demonstrating that an agreement will directly enefit the needy people in a country.

(c) In determining whether or not a government falls within the provisions of subsection (a), consideration shall be given to the extent of cooperation of such government in permitting an unimpeded inestigation of alleged violations of internationally recognized human ights by appropriate international organizations, including the Inernational Committee of the Red Cross, or groups or persons acting nder the authority of the United Nations or of the Organization of merican States.

(d) The President shall transmit to the Speaker of the House of epresentatives, the President of the Senate, and the Committee on griculture, Nutrition, and Forestry of the Senate, in the annual resentation materials on planned programming of assistance under is Act, a full and complete report regarding the steps he has taken carry out the provisions of this section. (7 U.S.C. 1712.)

SEC. 113.23d In the allocation of funds made available under this tle, priority shall be given to financing the sale of food and fiber mmodities. (7 U.S.C. 1713.)

SEC. 114. (a) 23e The Congress declares it to be the policy of the nited States to assist developing countries in the transition from

Be Sec. 112 was added by Sec. 203 of the International Development and Food Astance Act of 1977, P.L. 95-88, 91 Stat. 545, Aug. 3, 1977. d Sec. 113 was added by Sec. 204 of the International Development and Food Astance Act of 1977, P.L. 95-88, 91 Stat. 546, Aug. 3, 1977. Sec. 114 was added by Sec. 205 of the International tance Act of 1977, P.L. 95-88, 91 Stat. 546, Aug. 3, 1977.

Development and Food As

« PreviousContinue »