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27,748 57,748 57,748
30,000

57,748

Total Government equity...

57,748 57,748 57,748
11,766 16,443 24,604
69,514 74,191 82,352

End of year..

Retained earnings.

57,748 33,604

1 Balances of selected resources are identified on the statement of financial condition.

The Agency for International Development has always used excess personal property in its programs. In 1962 a revolving fund was created to provide for more effective use of U.S. Government-owned domestic and foreign excess property by authorizing such property to be 91,352 acquired and rehabilitated in advance of specifically known requirements for country programs. The need for many types of excess property such as tractors, construction and roadbuilding equipment, machinery, and machine tools can be anticipated with a high degree of certainty. Costs include accessorial charges only, i.e., transportation, rehabilitation, storage, and packing, crating, and handling, paid initially from the revolving fund and subsequently charged to the recipient program or government. Proceeds from these charges are deposited to the credit of the 199,072-199,072-199,072-199,072 revolving fund. The law limits the value of domestic excess property which may be held at any one time to $15 million in total original acquisition value. There is no legal limit with respect to the value of foreign excess property which may be held at any one time. No addition to the revolving fund is proposed.

Analysis of Government Equity and Undrawn Authorizations
(in thousands of dollars)

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150,743

117,843 273,263 281,424

290,424 268,586 273,263 281,424 290,424

69,514 74,191

82,352 91,352

Note.-Guarantees outstanding net of those expired, reduced or terminated are as follows: Actual 1963, $883,862 thousand; actual 1964. $1,381,849 thousand; estimate 1965, $2,607,801 thousand; estimate 1966. $4,013,701 thousand.

1 The changes in this item are reflected on the program and financing schedule.

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Continued program expansion is forecast in 1966 as demands for excess property mount and arrangements for rehabilitation and storage of this property become fully operational. The 1966 program totals $31 million. The net operating loss in the fund reflects expenditures for transportation, rehabilitation, and storage of property which at the end of the fiscal year have not yet been offset by reimbursement following disposition of the property. Program operations are summarized as follows (in thousands of dollars):

Identification code

04-10-4590-0-4-152

Program by activities:

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Operating costs, funded:

Foreign program..

Domestic program....

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Dispositions....

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Transfer value of inventory, end of year...

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Changes in selected resources

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1,794 1,683

Adjustment in selected resources (in

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ventory at depots)..

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Revenue....

-1,032

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88

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2.0 2.6

$20,258 $20,268 $18,104 $18,104

ASSISTANCE

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GENERAL PROVISIONS

SEC. 101. None of the funds herein appropriated (other than funds appropriated under the authorization for "International organizations and programs") shall be used to finance the construction of any new flood control, reclamation, or other water or related land resource project or program which has not met the standards and criteria used in determining the feasibility of flood control, reclamation and other water and related land resource programs and projects proposed for construction within the United States of America as per memorandum of the President dated May 15, 1962. SEC. 102. Obligations made from funds herein appropriated for engineering and architectural fees and services to any individual or group of engineering and architectural firms on any one project in excess of $25,000 shall be reported to the Committees on Appropriations of the Senate and House of Representatives at least twice annually.

SEC. 103. Except for the appropriations entitled "Contingency fund", "Alliance for Progress, development loans", and "Development loans", not more than 20 per centum of any appropriation item made available by this title shall be obligated and/or reserved during the last month of availability.

SEC. 104. None of the funds herein appropriated nor any of the counterpart funds generated as a result of assistance hereunder or any prior Act shall be used to pay pensions, annuities, retirement pay or adjusted service compensation for any persons heretofore or hereafter serving in the armed forces of any recipient country.

SEC. 105. The Congress hereby reiterates its opposition to the seating in the United Nations of the Communist China regime as the representative of China, and it is hereby declared to be the continuing sense of the Congress that the Communist regime in China has not demonstrated its willingness to fulfill the obligations contained in the Charter of the United Nations and should not be recognized to represent China in the United Nations. In the event of the seating of representatives of the Chinese Communist regime in the Security Council or General Assembly of the United Nations the President is requested to inform the Congress insofar as is compatible with the requirements of national security, of the implications of this action upon the foreign policy of the United States and our foreign relationships, including that created by membership in the United Nations, together with any recommendations which he may have with respect to the matter.

SEC. 106. It is the sense of Congress that any attempt by foreign nations to create distinctions because of their race or religion among American citizens in the granting of personal or commercial access or any other rights otherwise available to United States citizens generally is repugnant to our principles; and in all negotiations between the United States and any foreign state arising as a result of funds appropriated under this title these principles shall be applied as the President may determine.

SEC. 107. (a) No assistance shall be furnished under the Foreign Assistance Act of 1961, as amended, to any country which sells, furnishes, or permits any ships under its registry to carry to Cuba, so long as it is governed by the Castro regime, in addition to those items contained on the list maintained by the Administrator pursuant to title I of the Mutual Defense Assistance Control Act of 1951, as amended, any arms, ammunition, implements of war, atomic energy materials, or any other articles, materials, or supplies of primary strategic significance used in the production of arms, ammunition, and implements of war or of strategic significance to the conduct of war, including petroleum products.

GENERAL PROVISIONS-Continued

(b) No economic assistance shall be furnished under the Foreign Assistance Act of 1961, as amended, to any country which sells, furnishes, or permits any ships under its registry to carry items of economic assistance to Cuba, so long as it is governed by the Castro regime, unless the President determines that the withholding of such assistance would be contrary to the national interest and reports such determination to the Foreign Relations and Appropriations Committees of the Senate and the Foreign Affairs and Appropriations Committees of the House of Representatives. Reports made pursuant to this subsection shall be published in the Federal Register within seven days of submission to the committees and shall contain a statement by the President of the reasons for such determination. SEC. 108. Any expenditure made from funds provided in this title for procurement outside the United States of any commodity in bulk and in excess of $100,000 shall be reported to the Committees on Appropriations of the Senate and the House of Representatives at least twice annually: Provided, That each such report shall state the reasons for which the President determined, pursuant to criteria set forth in section 604 (a) of the Foreign Assistance Act of 1961, as amended, that foreign procurement will not result in adverse effects upon the economy of the United States or the industrial mobilization base which outweigh the economic or other advantages to United States of less costly procurement outside the United States.

SEC. 109. (a) No assistance shall be furnished to any nation, whose government is based upon that theory of government known as communism under the Foreign Assistance Act of 1961, as amended, for any arms, ammunition, implements of war, atomic energy materials, or any articles, materials, or supplies, such as petroleum, transportation materials of strategic value, and items of primary strategic significance used in the production of arms, ammunition, and implements of war, contained on the list maintained by the Administrator pursuant to title I of the Mutual Defense Assistance Control Act of 1951, as amended.

(b) No economic assistance shall be furnished to any nation whose government is based upon that theory of government known as communism under the Foreign Assistance Act of 1961, as amended (except section 214(b)), unless the President determines that the withholding of such assistance would be contrary to the national interest and reports such determination to the Foreign Affairs and Appropriations Committees of the House of Representatives and Foreign Relations and Appropriations Committees of the Senate. Reports made pursuant to this subsection shall be published in the Federal Register within seven days of submission to the committees and shall contain a statement by the President of the reasons for such determination.

SEC. 110. None of the funds appropriated or made available pursuant to this Act for carrying out the Foreign Assistance Act of 1961, as amended, may be used for making payments on any contract for procurement to which the United States is a party entered into after the date of enactment of this Act which does not contain a provision authorizing the termination of such contract for the convenience of the United States.

SEC. 111. None of the funds appropriated or made available under this Act for carrying out the Foreign Assistance Act of 1961, as amended, may be used to make payments with respect to any contract for the performance of services outside the United States by United States citizens where such citizens have not been investigated for loyalty and security in the same manner and to the same extent as would apply if they were regularly employed by the United States. SEC. 112. None of the funds appropriated or made available under this Act for carrying out the Foreign Assistance Act of 1961, as amended, may be used to make payments with respect to any capital project financed by loans or grants from the United States where the United States has not directly approved the terms of the contracts and the firms to provide engineering, procurement, and construction services on such projects.

SEC. 113. Of the funds appropriated or made available pursuant to this Act not more than $12,000,000 may be used during the fiscal year ending June 30, [1965] 1966, in carrying out section 241 of the Foreign Assistance Act of 1961, as amended.

SEC. 114. None of the funds appropriated or made available pursuant to this Act for carrying out the Foreign Assistance Act of 1961, as amended, may be used to pay in whole or in part any assessments, arrearages or dues of any member of the United Nations.

[SEC. 115. Foreign currencies not to exceed $200,000, made available for loans pursuant to section 104(e) of the Agricultural Trade Development and Assistance Act of 1954, as amended, shall be available during the current fiscal year for expenses incurred incident to such loans.]

[SEC. 116. None of the administrative expense or other funds herein appropriated shall be available in connection with the use of receipts of United States dollars, derived from loan repayments

and interest collections in the Development Loan Fund and Alliance for Progress revolving funds.]

SEC. [117] 115. None of the funds made available by this Act for carrying out the Foreign Assistance Act of 1961, as amended, may be obligated on or after April 30, 1964, for financing, in whole or in part, the direct costs of any contract for the construction of facilities and installations in any underdeveloped country, unless the President shall, on or before such date, have promulgated regulations designed to assure, to the maximum extent consistent with the national interest and the avoidance of excessive costs to the United States, that none of the funds made available by this Act and thereafter obligated shall be used to finance the direct costs under such contracts for construction work performed by persons other than qualified nationals of the recipient country or qualified citizens of the United States: Provided, however, That the President may waive the application of this amendment if it is important to the national interest. (Foreign Assistance and Related Agencies Appropriation Act, 1965.)

OFFICE OF ECONOMIC OPPORTUNITY

ECONOMIC OPPORTUNITY PROGRAM

For expenses necessary to carry out the provisions of the Economic Opportunity Act of 1964 (Public Law 88-452 approved August 20, 1964), [$800,000,000], $1,500,000,000 [of which not more than $412,500,0001, plus reimbursements, shall be available for youth programs under title I; not more than $300,000,000 for community action programs under title II; not more than $35,000,000 for special programs to combat poverty in rural areas under title III, part A (which shall be available for transfer to the economic opportunity fund and shall remain available until expended); not more than $8,800,000 to carry out the purposes of part D of title III; not more than $150,000,000 for work experience programs under title V; and not more than $50,000,000 for (1) adult basic education programs under title II, (2) volunteer programs under section 603, (3) expenses of administration and coordination of antipoverty programs under title VI, and (4) migrant agricultural employees programs under title III, part B (including]: Provided, That this appropriation shall be available for transfers to the economic opportunity loan fund for loans under [section 311] title III, and amounts so transferred shall remain available until expended)]: Provided further, That this appropriation shall be available for the purchase and hire of passenger motor vehicles, and for construction, alteration, and repair of buildings and other facilities, as authorized by section 602 of the Economic Opportunity Act of 1964, and for purchase of real property for training centers: Provided further, That this appropriation shall not be available for contracts under titles I, II, V, and VI extending for more than twenty-four months: Provided further, That this appropriation shall not be available for more than 4,000 permanent Federal positions: Provided further, That none of the funds contained in this Act shall be "sed to make indemnity payments, authorized by part D of title III, to any farmer whose milk was removed from commercial markets as a result of his failure to follow the procedures prescribed by the Federal Government for the use of the offending chemical: Provided further, That not to exceed $2,000,000 of this appropriation may be transferred to "Grants to States for public assistance" to carry out existing projects allthorized by section 1115 of the Social Security Act, as amended]. (78 Stat. 508-534; Supplemental Appropriation Act, 1965; authorizing legislation to be proposed.)

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tions, and private nonprofit agencies, will provide young men and women with more highly specialized vocational training as well as with general educational improvement. Job Corps program levels are estimated as follows:

1964 actual

1965 1966 estimate estimate

-200
760,000 1,465,000

-500

800,000 1,500,000

-5,000

-1,000

--8,800

-25,200 -35,000

760,000 1,465,000

-500

760,200 1,465,500
-200
760,000 1,465,000

430,000

-430,000-585,000

330,000 1,310,000

Reimbursements from employees for quarters and meals furnished (Supplemental Appropriation Act, 1965).

The Economic Opportunity Act of 1964 inaugurated a determined effort to eliminate the causes of poverty in America. Many new programs were authorized by the act, most of which will be carried out by existing Federal agencies. The act also authorized the Director of the Office of Economic Opportunity to coordinate these new programs and all of the existing Federal programs aiding the poor into a comprehensive program designed to extend the opportunities for education and training, a decent job, and a life of self-respect and dignity to every American

citizen.

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(b) Work training.-Under this activity, which is administered by the Neighborhood Youth Corps in the Department of Labor, youths age 16 through 21 will be enrolled in work and training projects which will provide productive full-time or part-time work experience in State and local public service and nonprofit organizations. The in-school and summer parts of the program will provide jobs for youths who would otherwise have to leave school because of financial reasons, while out-of-school youths will receive work experience, remedial education, counseling, and training in order to increase their employability. The funds estimated, which will be matched by a local contribution of 10% of the cost of the projects, will finance the following program levels:

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(c) Work study. The work study program, administered by the Department of Health, Education, and Welfare, provides part-time jobs during the school year Welfare, provides part-time jobs during the school year and full-time summer jobs for youths from low-income families who need such income in order to commence or continue an educational program beyond the high school level. Federal funds are allotted among the States for payment to institutions of higher education to cover the costs of employment on-campus or in public or nonprofit organizations. The payments must be matched at the rate of $1 from institutional or local sources for each $9 of Federal support.

It is estimated that approximately 800 colleges will participate in the 1965 program and about 1,000 in 1966, providing assistance to the following numbers of students:

The initial appropriation for the "war on poverty" was approved less than 4 months ago. While the public response to the programs has been even greater than anticipated, the assumptions on unit costs and proper balance among the several programs are still estimates with little support from operating experience. Therefore, Fall semester. the final allocation of funds in both 1965 and 1966 may vary from that shown above if experience indicates that a different distribution would utilize the available resources more effectively in the fight against poverty.

1. Youth programs-(a) Job Corps.-The Job Corps is a residential work and training program for young people, age 16 through 21, who are not now equipped for the transition to adult responsibility. Both rural and urban training centers will be operated.

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2. Community action program.-The Community Action program provides technical and financial assistance to urban and rural communities to support comprehensive action programs developed by local community action organizations. Community action grants serve to provide for new programs and to augment existing private and public resources by financing up to 90% of the costs of those new programs. Grants may be made to both public and private nonprofit agencies. The programs thus supported will be closely coordinated with other Office of Economic Opportunity programs and with related Federal programs. Remedial reading, literacy courses, job training, employment counseling, housing code improvement and enforcement, homemaker services, workshops, job development, and health services are some of the many activities that can be supported and coordinated within a local antipoverty program. The amounts re

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