any other funds he has notified Congress pursuant to such section that he intends to provide to that country for development assistance purposes.

Sec. 611.720 Completion of Plans and Cost Estimates. (a) No agreement or grant which constitutes an obligation of the United States Government in excess of $500,000 721 under section 1501 of title 31, United States Code,722 shall be made for any assistance authorized under chapter I of part I, title II of chapter 2 of part I, or chapter 4 of part II-723

(1) if such agreement or grant requires substantive technical or financial planning, until engineering, financial, and other plans necessary to carry out such assistance, and a reasonably firm estimate of the cost to the United States Government of providing such assistance, have been completed; and

(2) if such agreement or grant requires legislative action within the recipient country, unless such legislative action may reasonably be anticipated to be completed in time to permit the orderly accomplishment of the purposes of such agreement or grant.

(b) Plans required under subsection (a) of this section for any water or related land resource construction project or program shall include a computation of benefits and costs made insofar as practicable in accordance with the principles, standards, and procedures established pursuant to the Water Resources Planning Act 724 (42 U.S.C. 1962, et seq.) or acts amendatory or supplementary thereto.

(c) To the maximum extent practicable, all contracts for construction outside the United States made in connection with any agreement or grant subject to subsection (a) of this section shall be made on a competitive basis.

(d) Subsection (a) of this section shall not apply to any assistance furnished for the sole purpose of preparation of engineering, financial, and other plans.

(e) 725 In addition to any other requirements of this section, no assistance_authorized under chapter 1 of part I, title II of chapter 2 of part I, or chapter 4 of part II 726 shall be furnished with respect to any capital assistance project estimated to cost in excess of $1,000,000 until the head of the agency primarily responsible for administering part I of the Act has received and taken into consid

720 22 U.S.C. 2361.

721 Sec. 1208 of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 278), raised this amount from $100,000.

722 This reference to 31 U.S.C. 1501 replaced an earlier reference to 31 U.S.C. 200.

723 The words "chapter 1 of part I, title II of chapter 2 of part I, or chapter 4 of part II" were inserted in lieu of "titles I, II, and VI of chapter 2 and chapter 4 of part 1" by sec. 102(g)(2)(D) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 943).

724 The reference to this Act was added by sec. 1208(2) of Public Law 99-83 (99 Stat. 278), and replaced an earlier reference to a document entitled: "Principles and Standards for Planning Water and Related Land Resources, dated October 25, 1973.". The reference to the 1973 document was substituted in lieu of a reference of the "Memorandum of the President dated May 15, 1962" by sec. 117 of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 365). Previously, sec. 301(c) of the FA Act of 1963 had substituted the reference to the 1962 memorandum in lieu of a reference to "circular A47 of the Bureau of the Budget.". 725 Subsec. (e) was added by sec. 301(d) of the FA Act of 1967.

726 The words "chapter 1 of part I, title 2 of chapter 2 of part I, or chapter 4 of part II" were inserted in lieu of "titles I, II, or VI of chapter 2 or chapter 4 of part 1" by sec. 102(g)(2)(E) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat.

eration a certification from the principal officer of such agency in the country in which the project is located as to the capability of the country (both financial and human resources) to effectively maintain and utilize the project taking into account among other things the maintenance and utilization of projects in such country previously financed or assisted by the United States.

Sec. 612.727 Use of Foreign Currencies. (a) Except as otherwise provided in this Act or other Acts, foreign currencies received either (1) as a result of the furnishing of nonmilitary assistance under the Mutual Security Act of 1954, as amended, or any Act repealed thereby and unobligated on the date prior to the effective date of this Act, or (2) on or after the effective date of this Act, as a result of the furnishing of nonmilitary assistance under the Mutual Security Act of 1954, as amended, or any Act repealed thereby, or (3) as a result of the furnishing of assistance under part I, which are in excess of the amounts reserved under authority of section 105(d) of the Mutual Educational and Cultural Exchange Act of 1961 or any other Act relating to educational and cultural exchanges, may be sold by the Secretary of the Treasury to agencies of the United States Government for payment of their obligations outside the United States, and the United States dollars received as reimbursement shall be deposited into miscellaneous receipts of the Treasury. Foreign currencies so received which are in excess of the amounts so reserved 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.

(b) 728 Any Act of Congress making appropriations to carry out programs under this or any other Act for United States operations abroad is hereby authorized to provide for the utilization of United States-owned excess foreign currencies to carry out any such operations authorized by law.

729 As used in this subsection, the term "excess foreign currencies" means foreign currencies or credits owned by or owed to the United States which are, under applicable agreements with the foreign country concerned, available for the use of the United States Government and are determined by the President to be excess to the normal requirements of departments and agencies of the United States for such currencies or credits and are not prohibited from use under this subsection by an agreement entered into with the foreign country concerned.

The President shall take all appropriate steps to assure that, to the maximum extent possible, United States-owned foreign currencies are utilized in lieu of dollars. Dollar funds made available

727 22 U.S.C. 2362. Subsection designation “(a)" in sec. 612 was added by sec. 301(d)(1) of the FA Act of 1963.

728 Subsec. (b) was added by sec. 301(c) of the FA Act of 1964. Originally added as subsec. (c), it was redesignated by sec. 301(c) of the FA Act of 1964 and former subsec. (b) was redesignated as sec. 104(t) of Public Law 480 (the latter has subsequently been transferred in part to sec. 103(m) of Public Law 480).

729 The first sentence of this paragraph was struck out by sec. 301(b) of the FA Act of 1965. It read as follows: "The President shall take all appropriate steps to assure that, to the maximum extent possible, United States-owned excess foreign currencies are utilized in lieu of dollars.".

pursuant to this Act shall not be expended for goods and services when United States-owned foreign currencies are available for such purposes unless the administrative official approving the voucher certifies as to the reason for the use of dollars in each case. 730

(c) 731 In addition to funds otherwise available, excess foreign currencies, as defined in subsection (b), may be made available to friendly foreign governments and to private, nonprofit United States organizations to carry out voluntary family planning programs in countries which request such assistance. No such program shall be assisted unless the President has received assurances that in the administration of such program the recipient will take reasonable precautions to insure that no person receives any family planning assistance or supplies unless he desires such services. The excess foreign currencies made available under this subsection shall not, in any one year, exceed 5 per centum of the aggregate of all excess foreign currencies. As used in this subsection, the term "voluntary family planning program" includes, but is not limited to, demographic studies, medical and psychological research, personnel training, the construction and staffing of clinics and rural health centers, specialized training of doctors and paramedical personnel, the manufacture of medical supplies, and the dissemination of family planning information, medical assistance, and supplies to individuals who desire such assistance.

(d) 732 In furnishing assistance under this Act to the government of any country in which the United States owns excess foreign currencies as defined in subsection (b) of this section, except those currencies generated under the Agricultural Trade Development and Assistance Act of 1954, as amended,733 the President shall endeavor to obtain from the recipient country an agreement for the release, on such terms and conditions as the President shall determine, of an amount of such currencies up to the equivalent of the dollar value of assistance furnished by the United States for programs as may be mutually agreed upon by the recipient country and the United States to carry out the purposes for which new funds authorized by this Act would themselves be available.

Sec. 613.734 Accounting, Valuation, Reporting, and Administration of Foreign Currencies.735 (a) 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.

(b) The Secretary of the Treasury shall have sole authority to establish for all foreign currencies or credits the exchange rates at which such currencies are to be reported by all agencies of the Government.

730 This paragraph was added by sec. 301(b) of the FA Act of 1965.

731 Subsec. (c) was added by sec. 301(e) of the FA Act of 1966.

732 Subsec. (d) was added by sec. 302 of the FA Act of 1969.

733 For text, see Legislation on Foreign Relations Through 1997, vol. I-B.

734 22 U.S.C. 2363.

735 Sec. 301(c)(1) of the FA Act of 1965 inserted "Accounting, Valuation, Reporting, and Administration of Foreign Currencies" for "Accounting, Valuation, and Reporting of Foreign Currencies".

(d) 737 In cases where assistance is to be furnished to any recipient country in furtherance of the purposes of this or any other Act on a basis which will result in the accrual of foreign currency proceeds to the United States, the Secretary of the Treasury shall issue regulations requiring that agreements, in respect of such assistance, include provisions for the receipt of interest income on the foreign currency proceeds deposited in authorized depositories: Provided, That whenever the Secretary of State determines it not to be in the national interest to conclude arrangements for the receipt of interest income he may waive the requirement thereof: Provided further, That the Secretary of State, or his delegate, shall promptly make a complete report to the Congress on each such determination and the reasons therefor.

Sec. 614.738 Special Authorities. (a) 738, 739 (1) The President may authorize the furnishing of assistance under this Act without regard to any provision of this Act, the Arms Export Control Act, any law relating to receipts and credits accruing to the United States, and any Act authorizing or appropriating funds for use under this Act, in furtherance of any of the purposes of this Act, when the President determines, and so notifies in writing the Speaker of the House of Representatives and the chairman of the Committee on Foreign Relations of the Senate, that to do so is important to the security interests of the United States.740

736 Subsec. (c), as amended by sec. 46 of Public Law 94-273, was repealed by sec. 734(a)(1) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1560). Subsec. (c) had required a semiannual report to the Congress on the amount of all foreign currencies acquired without payment of dollars on hand for each foreign country. Such information is now required on an annual basis as part of the report required under sec. 634(a) of this Act.

737 Subsec. (d) was added by sec. 301(c)(2) of the FA Act of 1965.

738 22 U.S.C. 2364.

739 Subsec. (a), as amended by the FA Act of 1966 and the FA Act of 1967, was further amended and restated by sec. 117(a) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3140), and by sec. 128 of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 209). It formerly read as follows:

"(a) The President may authorize in each fiscal year the use of funds made available for use under this Act and the furnishing of assistance under section 506 in a total amount not to exceed $250,000,000 and the use of not to exceed $100,000,000 of foreign currencies accruing under this Act or any other law without regard to the requirements of this Act, any law relating to receipts and credits accruing to the United States, any Act appropriating funds for use under this Act, or the Mutual Defense Assistance Control Act of 1951 (22 U.S.C. 1611 et seq.), in furtherance of any of the purposes of such Acts, when the President determines that such authorization is important to the security of the United States. Not more than $50,000,000 of the funds available under this subsection may be allocated to any one country in any fiscal year. The limitation contained in the preceding sentence shall not apply to any country which is a victim of active Communist or Communist-supported aggression. The authority of this section shall not be used to waive the limitations on transfers contained in section 610(a) of this Act.".

740 In a memorandum of December 11, 1996, for the Secretaries of State and Defense, the President determined, pursuant to secs. 552(c)(2) and 614(a)(1) of this Act, that:

"(1) as a result of an unforeseen emergency, the provision of assistance under Chapter 6 of Part II of the Act in amounts in excess of funds otherwise available for such assistance is important to the national interests of the United States;

"(2) an unforeseen emergency requires the immediate provision of assistance under Chapter 6 of Part II of the Act; and

"(3) it is important to the security interests of the United States to furnish up to $4 million of commodities and services from the inventory of the Department of Defense to support a Peace Monitoring Force in northern Iraq, without regard to any provision of law within the scope of section 614(a)(1) of the Act, including various restrictions on providing assistance to Iraq.

"I therefore direct the drawdown of commodities and services from the inventory and resources of the Department of Defense of an aggregate value not to exceed $4 million to support a Peace Monitoring Force in northern Iraq." (Presidential Determination No. 97-12; 61 F.R. 67685).

(2) 741 The President may make sales, extend credit, and issue guarantees under the Arms Export Control Act, without regard to any provision of this Act, the Arms Export Control Act, any law relating to receipts and credits accruing to the United States, and any Act authorizing or appropriating funds for use under the Arms Export Control Act, in furtherance of any of the purposes of such Act, when the President determines, and so notifies in writing the Speaker of the House of Representatives and the chairman of the Committee on Foreign Relations of the Senate, that to do so is vital to the national security interests of the United States.

(3) Before exercising the authority granted in this subsection, the President shall consult with, and shall provide a written policy justification to, the Committee on Foreign Affairs 742 and the Committee on Appropriations of the House of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate.

(4) 743 (A) The authority of this subsection may not be used in any fiscal year to authorize

(i) more than $750,000,000 in sales to be made under the Arms Export Control Act;

(ii) the use of more than $250,000,000 of funds made available for use under this Act or the Arms Export Control Act; and

In a memorandum of April 24, 1997, for the Secretary of State, the President determined, pursuant to sec. 614(a)(1), that:

"*** that it is important to the security interests of the United States to furnish up to $25 million in funds made available under heading 'Nonproliferation, Anti-Terrorism, Demining and Related Programs' in title II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997 (as enacted in Public Law 104-208) for the United States contribution to the Korean Peninsula Energy Development Organization without regard to any provision of law within the scope of section 614(a)(1). I hereby authorize this contribution." (Presidential Determination No. 97-21; 62 F.R. 23939).

In a memorandum of August 7, 1997, for the Secretary of State, the President determined, pursuant to sec. 614(a)(1), that:

**** that it is important to the security interests of the United States to furnish up to $50 million in current- and prior-years funds to Jordan under chapter 4 of part II of the Act without regard to any provision of the law within the scope of section 614(a)(1). I hereby authorize the furnishing of such assistance." (Presidential Determination No. 97-30; 62 F.R. 44065).

In a memorandum of August 16, 1997, for the Secretary of State, the President determined, pursuant to sec. 614(a)(1), that:

****that it is important to the security interests of the United States to furnish up to $600,000 in Fiscal Year 1997 funds under chapter 5 of part II of the Act for Colombia, without regard to any provision of the law within the scope of section 614(a)(1). I hereby authorize the furnishing of such assistance." (Presidential Determination No. 97-31; 62 F.R. 47907). See also note at sec. 614(a)(2).

741 In a memorandum of August 16, 1997, for the Secretary of State, the President determined, pursuant to sec. 614(a)(2), that:

"

that it is vital to the national security interests of the United States to make sales and extend_credits to Colombia of up to $30 million in Foreign Military Financing under the Arms Export Control Act, without regard to any provision of the law within the scope of section 614. I hereby authorize such making of sales and extensions of credit, including the expenditure of previously obligated Foreign Military Financing funds needed to finance such sales." (Presidential Determination No. 97-31; 62 F.R. 47907). See also note at sec. 614(a)(2).

742 Sec. 1(a)(5) of Public Law 104-14 (109 Stat. 186) provided that references to the Committee on Foreign Affairs of the House of Representatives shall be treated as referring to the Committee on International Relations of the House of Representatives.

743 Subsec. (a)(4) was amended and restated by sec. 128 of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 206). It formerly read as follows: "(4) The authority of this subsection may not be used to authorize the use of more than $250,000,000 of funds made available for use under this Act or the Arms Export Control Act, or the use of more than $100,000,000 of foreign currencies accruing under this Act or any other law, in any fiscal year. Not more than $50,000,000 of the funds available under this subsection may be allocated to any one country in any fiscal year, unless such country is a victim of active Communist or Communist-supported aggression.".