CHAPTER 3-MISCELLANEOUS PROVISIONS SEC. 641. EFFECTIVE DATE.-This Act shall take effect on the date of its enactment. SEC. 642. STATUTES REPEALED.-(a) There are hereby repealed (1) Reorganization Plan Numbered 7 of 1953; (2) the Mutual Security Act of 1954, as amended (except sections 402, 405 (a), 405 (c), 405(d), 408, 414, 417, 502, and 523 (d)); (3) section 12 of the Mutual Security Act of 1955; (4) sections 12, 13, and 14 of the Mutual Security Act of 1956; (5) section 503 of the Mutual Security Act of 1958; (6) section 108 of the Mutual Security Appropriation Act, 1959; (7) section 501 (a), chapter VI, and sections 702 and 703 of the Mutual Security Act of 1959, as amended; (8) section 604 and chapter VIII of the Mutual Security Act of 1960; and (9) Section 7307 (b) of title 10 of the United States Code. (b) References in law to the Acts, or provisions of such Acts, repealed by subsection (a) of this section shall hereafter be deemed to be references to this Act or appropriate provisions of this Act. (c) The repeal of the Acts listed in subsection (a) of this section shall not be deemed to affect amendments contained in such Acts to Acts not named in that subsection. SEC. 643. SAVING PROVISIONS.-(a) Except as may be expressly provided to the contrary in this Act, all determinations, authorizations, regulations, orders, contracts, agreements and other actions issued, undertaken, or entered into under authority of any provision of law repealed by section 642 (a) shall continue in full force and effect until modified by appropriate authority. (b) Wherever provisions of this Act establish conditions which must be complied with before use may be made of authority contained in, or funds authorized by, this Act, compliance with, or satisfaction of, substantially similar conditions under Acts listed in section 642 (a) or Acts repealed by those Acts shall be deemed to constitute compliance with the conditions established by this Act. (c) Funds made available pursuant to provisions of law repealed by section 642 (a) (2) shall, unless otherwise authorized or provided by law, remain available for their original purposes in accordance with the provisions of law originally applicable thereto, or in accordance with the provisions of law currently applicable to those purposes. (d) No provision of this Act shall affect, or be deemed to affect, except as the President may determine, the agency within the Department of State known as the Peace Corps, nor any of the functions, offices, personnel, property, records, and funds available thereto on the date prior to the effective date of this Act, pending the enactment of legislation for the Peace Corps or the adjournment of the first session of the Eighty-Seventh Congress, whichever is earlier. SEC. 644. DEFINITIONS.-As used in this Act (a) "Agency of the United States Government" includes any agency, department, board, wholly or partly owned corporation, instrumentality, commission, or establishment of the United States Government. (b) "Armed Forces" of the United States means the Army, Navy, Air Force, Marine Corps, and Coast Guard. (e) "Commodity" includes any material, article, supply, goods, or equipment used for the purposes of furnishing nonmilitary assistance. (d) "Defense article" includes (1) any weapon, weapons system, munition, aircraft, vessel, boat, or other implement of war; (2) any property, installation, commodity, material, equipment, supply, or goods used for the purposes of furnishing military assistance; (3) any machinery, facility, tool, material, supply, or other item necessary for the manufacture, production, processing, repair, servicing, storage, construction, transportation, operation, or use of any article listed in this subsection; or (4) any component or part of any article listed in this subsection; but shall not include merchant vessels or, as defined by the Atomic Energy Act of 1954, as amended (42 U.S.C. 2011), source material, byproduct material, special nuclear material, or atomic weapons. (e) "Defense information" includes any document, writing, sketch, photograph, plan, model, specification, design, prototype, or other recorded or oral informa tion relating to any defense article or defense service, but shall not includ Restricted Data and formerly Restricted Data as defined by the Atomic Energ Act of 1954, as amended. (f) "Defense service" includes any service, test, inspection, repair, training training aid, publication, or technical or other assistance, including the transfe of limited quantities of defense articles for test, evaluation, or standardization purposes, or defensé information used for the purposes of furnishing military assistance. (g) "Excess defense articles" means the quantity of defense articles owned by the United States Government which is in excess of the mobilization reserve (h) "Function" includes any duty, obligation, power, authority, responsibility right, privilege, discretion, or activity. (i) "Mobilization reserve" means the quantity of defense articles determined to be required, under regulations prescribed by the President, to support mobiliza tion of the Armed Forces of the United States Government in the event of war or national emergency. (j) "Officer or employee" means civilian personnel and members of the Armed Forces of the United States Government. (k) "Services" include any service, repair, training of personnel, or technical or other assistance or information used for the purpose of furnishing nonmilitary assistance.. (1) "Surplus agricultural commodity" means any agricultural commodity or product thereof, class, kind, type, or other specification thereof, produced in the United States, either publicly or privately owned, which is in excess of domestic requirements, adequate carryover, and anticipated exports for United States dollars, as determined by the Secretary of Agriculture. (m) "Value" means (1) with respect to excess defense articles, the gross cost incurred by the United States Government in repairing, rehabilitating, or modifying such articles; and (2) with respect to nonexcess defense articles the price obtaining for transfers of such articles between the Armed Forces of the United States Government, or, where such articles are not transferred between the Armed Forces of the United States, the gross cost to the United States Government adjusted as appropriate for condition and market value. SEC. 645. UNEXPENDED BALANCES.-Unexpended balances of funds made available pursuant to the Mutual Security Act of 1954, as amended, are hereby authorized to be continued available for the general purposes for which appro priated, and may at any time be consolidated, and, in addition, may be consolidated with appropriations made available for the same general purposes under the authority of this Act. SEC. 646. CONSTRUCTION.-If any provision of this Act or the application of any provision to any circumstances or persons shall be held invalid, the validity of the remainder of this Act and of the applicability of such provision to other circumstances or persons shall not be affected thereby. PART IV SEC. 701. Section 203 of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 484), is amended by adding a new subsection (p) reading as follows: "(p) In disposing of surplus property, the Administrator is authorized to accept payments in foreign currency, under regulations prescribed by the Administrator." SEC. 702. Section 1 of the Defense Base Act, as amended (42 U.S.C. 1651), is further amended as follows: (1) In paragraph (5) of subsection (a), strike out "(other than title II of chapter II thereof)" and substitute "or any successor Act (other than a contract financed by loan repayable in United States dollars, unless the Secretary of Labor, upon the recommendation of the head of any department or other agency of the United States, determines such contract should be covered by this section)." (2) In subsection (e) strike out “June 30, 1958, but not completed on July 24, 1959" and substitute therefor "but not completed on the date of enactment of any successor Act to the Mutual Security Act of 1954, as amended." SEC. 703. In paragraph (4) of section 101 (a) of the War Hazards Compensation Act, as amended (42 U.S.C. 1701), strike out "(other than title II of chapter II thereof)" and substitute therefor "or any successor Act (other than a contract financed by loan repayable in United States dollars unless the Secretary, upon the recommendation of the head of any department or agency of the United States, determines such contract should be covered by this section)". SEC. 704. (a) Section 305 of the Mutual Defense Assistance Control Act of 1951 (22 U.S.C. 1611 et seq.) is amended to read as follows: "SEC. 305. There is hereby authorized to be appropriated to the Department of State such sums as may be necessary from time to time to carry out the objectives of this Act." (b) The amendment to section 305 of the Mutual Defense Assistant Control Act of 1951 affected by subsection (a) of this section shall not be be deemed to affect the repeal of laws effected by that section prior to such amendment. SEC. 705. Section 104(e) of the Agricultural Trade Development and Assistance Act of 1954, as amended (7 U.S.C. 1704(e)), is amended by substituting "such agency as the President shall direct" and "agency" for "the Export-Import Bank" and "bank”, respectively. SEC. 706. Section 5 of the joint resolution to promote peace and stability in the Middle East (22 U.S.C. 1964) is amended by substituting "whenever appropriate" for "within the months of January and July of each year". SEC. 707. Section 5(f) of the International Health Research Act of 1960 (22 U.S.C. 2103 (f)) is amended by adding a new final sentence "The President may delegate any authority vested in him by this section to such other officer or head of agency of the United States Government as he deems appropriate." SEC. 708. The Act to provide for assistance in the development of Latin America and in the reconstruction of Chile, and for other purposes (22 U.S.C. 1942 et seq.), is amended by adding a new section 4 reading as follows: "GENERAL PROVISION "SEC. 4. Funds appropriated under sections 2 and 3 of this Act may be used for assistance under this Act pursuant to such provisions applicable to the furnishing of such assistance contained in any successor Act to the Mutual Security Act of 1954, as amended, as the President determines to be necessary to carry out the purposes for which such funds are appropriated." THE WHITE HOUSE, Washington, May 26, 1961. Hon. LYNDON B. JOHNSON, Washington, D.C. DEAR MR. PRESIDENT: Transmitted herewith for consideration by the Congress is a draft of a bill which would carry out the principal recommendations set forth in my message on foreign aid of March 22, 1961. The legislation is drafted to provide for aid to social and economic development under an act for international development and to provide for military assistance under an International Peace and Security Act. It is designed to provide the concepts, the means, and the organization for programs of foreign aid attuned to the needs of the decade ahead. The act for international development seeks authorization for appropriations of $1.690 billion for four major purposes: (a) To assist and support nations whose independence or stability depends upon such help and is important to our own security; (b) To provide for our share in certain programs under multilateral auspices; (c) To provide grant assistance to less-developed countries primarily to assist in the development of their human resources; and (d) To establish a presidential contingency fund to meet the unpredictable exigencies with which we will doubtless be confronted during the forthcoming year. The act for international development also seeks authorization by the Congress to make loans, repayable in U.S. dollars, to promote the economic development of less-developed countries and areas with emphasis upon long-term plans and programs designed to develop economic resources and increase productive capacities. For this purpose I am asking the Congress for long-term authority in the form of public debt transactions which would make available for this purpose $200 million in fiscal year 1962 and $1.6 billion in each of the following 4 years. Additionally, repayments of previous foreign loans of about $300 million annually would be made available for development lending. Authority to make firm longterm commitments is of paramount importance. Real progress in economic development cannot be achieved by annual, short-term dispensations of aid and uncertainty as to future intentions. To make investments in economic development more effective, the terms and conditions of the investment should be related to the establishment of sound long-term development plans and the achievement of specific targets. While the methods proposed represent a departure from previous patterns in economic aid programs, they conform to the traditional techniques of numerous other governmental operations. These methods are essential to our new approach to development assistance and to the effectiveness of that approach. The International Peace and Security Act will continue the program of military assistance which constitutes an integral part of our whole security and defense posture. It is essential that this program be maintained and continued in the present international climate. Appropriations will be sought to provide for the U.S. share of maintaining forces that already exist, to complete undertakings initiated in earlier years, to give increased emphasis to internal security, and to provide for a limited and selected modernization of forces in areas under particular duress. I envisage a continuous review and assessment of the needs for military assistance around the world and continuing discussions with our allies and associated nations to determine the extent to which expenditures for defense can safely be lessened. Such adjustments necessarily may not be accomplished overnight, and, in any case, neither we nor our allies can afford a relaxation in the maintenance of an effective collective deterrent to armed aggression. The increasing problems of internal security with which we are confronted reflect an expanded utilization of the technique of indirect subversion which demands new and more vigorous counter measures if the spread of international communism is to be prevented. Assisting developing countries to create and maintain an environment of security and stability is essential to their more rapid social, economic, and political progress. The achievement of our goals requires effective organizational arrangements to execute these programs. In this regard, section 604 of the Mutual Security Act of 1960 placed two requirements upon the President: (1) To have a study made of the functions of, and the degree of coordination among, agencies engaged in foreign economic activities, with a view to providing the most effective means for the formulation and implementation of U.S. foreign economic policies and (2) to include in his presentation of the fiscal year 1962 mutual security program to the Congress his findings and recommendations resulting from that study. To fulfill the first requirement, at the request of the President, the Bureau of the Budget conducted a study of the existing situation and prepared a descriptive and analytical staff report. That report and the results of studies initiated by this administration have been available to executive branch officials concerned with foreign economic affairs. The recommendations which follow constitute my response to the second requirement. My decisions on foreign affairs organization are predicated on the following principles: First, authority for the conduct of activities which advance our foreign policy objectives should be vested in the President or other officials primarily concerned with foreign affairs. Second, international activities of domestic agencies should be clearly either (i) necessary extensions of their normal domestic missions or (ii) undertaken on behalf of and in support of programs and objectives of the appropriate foreign affairs agencies. These guidelines are particularly important for our foreign development assistance program. Domestic agencies can and should make a substantial contribution to the success of this program, and I will expect the foreign affairs agencies to make maximum use of their resources, skills, and experience. My proposals for the organization and coordination of foreign aid are based also on the concepts and principles set forth in my March 22 message to the Congress specifically, the critical necessity for unified administration and operation of foreign development assistance activities carried out in accordance with integrated country plans. These proposals will be put into effect by appropriate Executive action. FOREIGN ASSISTANCE PROGRAMS Responsibility and authority for the formulation and execution of the foreign development aid programs will be assigned to a single agency—the Agency for International Development-within the Department of State. It will replace the International Cooperation Administration and the Development Loan Fund, which will be abolished. The new agency-AID-will be headed by an administrator of under-secretary rank reporting directly to the Secretary of State and the President. The internal organization of AID will be geographically focused to give operational meaning to the country plan concept. Thus, the line authority will run from the Administrator to the Assistant Administrators heading four regional bureaus and, through the ambassadors, to the chiefs of AID missions overseas. The four Assistant Administrators will be equal in rank to the geographical Assistant Secretaries of State and will work closely with them. The proposed rank of the AID Administrator and the relationship between AID and other elements of the Department of State highlight a fundamental fact: Economic development assistance can no longer be subordinated to, or viewed simply as a convenient tool for meeting, short-run political objectives. This is a situation we can ill afford when long-range, self-sustained economic growth of less-developed nations is our goal. Development assistance, therefore, must-and shall-take its place as a full partner in the complex of foreign policy. The new agency will develop the full potential of the use of agricultural commodities as an instrument of development assistance. The Department of Agriculture will continue its active role in respect to commodity availability, the disposal of surplus stocks, international marketing, and the relationship of domestic agricultural production to world food needs. In view of the interrelationship of domestic agricultural products and their use for foreign policy purposes, I shall rely on the director of the food-for-peace program, Mr. George McGovern, to advise me in the formulation of policies for the constructive use of our agricultural abundance as well as to assist in the overall coordination of the program. The Peace Corps, too, has a special significance in our international development efforts. It will continue as an agency within the Department of State, and its Director will have the rank of Assistant Secretary of State. The Secretary of State will establish arrangements to assure that Peace Corps activities are consistent and compatible with the country development assistance plans. These arrangements will assure that the Peace Corps activities and AID programs are brought into close relation and at the same time preserve the separate identity and the unique role and mission of the Peace Corps. The principal assignments of authority for the administration of military assistance are satisfactory and will remain unchanged. The Department of Defense has operational responsibility for approved programs. In recognition of the fact that military assistance should clearly serve the foreign policy objectives and commitments of the United States, the Secretary of State provided continuous supervision and general direction of the program, including the determination as to whether there should be a program for a country and the value of that program. TRADE, AID, AND FOREIGN ECONOMIC POLICY The self-help efforts of less-developed nations, together with coordinated external assistance from economically advanced nations, must be coupled with a constructive approach in dealing with international commodity problems and barriers to international trade. Each of these approaches is needed if the goals of economic growth and stability are to be reached. The relationship of trade, aid, and other aspects of foreign economic policies involve the interests of many agencies of Government, particularly when both foreign and domestic economic considerations are an issue. It is, therefore, essential that interagency consultation and coordination be as meaningful and productive as possible and that the Secretary of State become the focal point of responsibility for the coordination of foreign economic policies. With these requirements in mind, I abolished the Council on Foreign Economic Policy, which bad been chaired by a special assistant to the President. I have assigned the functions of the Council to the Secretary of State. I shall expect him-in facilitating executive branch coordination-to choose whatever mechanisms he finds 70569-61-pt. 1- 3 |