of such provision in such country or with respect to such project or activity, unless and until there has been furnished to the General Accounting Office, or to such committee, as the case may be, (1) the document, paper, communication, audit, review, finding, recommendation, report, or other material so requested, or (2) a certification by the President that he has forbidden the furnishing thereof pursuant to request and his reason for so doing."

405

(d) When requests are presented to the Congress for appropriations for fiscal year 1969 to carry out programs under this Act, the programs to be carried out with the funds appropriated for that fiscal year shall also be presented to the Committee on Foreign Relations of the Senate, if requested by the chairman of that committee, and to the Committee on Foreign Affairs of the House of Representatives, if requested by the chairman of that committee.406 At the end of each fiscal year,407 the President shall notify the Committee on Foreign Relations and the Committee on Appropriations of the Senate and the Speaker of the House of Representatives of all actions taken during the fiscal year 407 under this Act which resulted in furnishing assistance of a kind, for a purpose, or to an area, substantially different from that included in the presentation to the Congress during its consideration of this Act or any Act appropriating funds pursuant to authorizations contained in this Act, or which resulted in obligations or reservations greater by 50 per centum or more than the proposed obligations or reservations included in such presentation for the program concerned, and in his notification the President shall state the justification for such changes. There shall also be included in the presentation material submitted to the Congress during its consideration of amendments to this Act, or of any Act appropriating funds pursuant to authorizations contained in this Act, a comparison of the current fiscal year programs and activities with those presented to the Congress in the previous year and an explanation of any substantial changes. 408 Any such presentation material shall also include (1) a chart showing on a country-by-country basis the full extent of all United States assistance planned or expected for each such country for the next fiscal year, including economic assistance and military grants and sales under this or any other 109 Act and sales under the Agricultural Trade Development and Assistance Act of 1954, as amended,410 (2) details of proposed contributions by the United States to multilateral financial agencies, for the next fiscal year, and (3) .. statement of projects, on a country-by-country basis for which financing was supplied during the last fiscal year through the Export-Import Bank.411 In addition, the President shall promptly notify the Committee on Foreign Relations and the Committee on Appropriations of the Senate and the Speaker of the House of Representatives of any deter

405 See also Sec. 624 (d) (7) of this Act and Sec. 502 of the FA Appropriation Act, 1970, page 184.

406 The first sentence was added by Sec. 302 (h) (1) (A) of the FAAct of 1967.

407 Sec. 302 (f) (1) of the FAAct of 1962 substituted the words "At the end of each fiscal year" and "fiscal year" for the words "In January of each year" and "preceding twelve months", respectively.

408 This sentence was added by Sec. 302 (f) (2) of the FAAct of 1962.

400 The words "or any other" were added by Sec. 45 (b) (4) of the Foreign Military Sales Act (Public Law 90-629).

410 For text, see page 272.

411 With the exception of the additional words noted in footnote 409, this sentence was added by Sec. 302(h) (1) (B) of the FAAct of 1967.

mination under section 303, 610, 614 (a), or 614(b) and of any finding, including his reasons therefor, under section 503 or 521 (c).*

412

(e) The President shall include in his recommendation to the Congress for programs under this Act for each fiscal year a specific plan for each country receiving bilateral grant economic assistance whereby, wherever practicable, such grant economic assistance shall be progressively reduced and eventually terminated.

(f) 413 The Secretary of the Treasury shall transmit to the Speaker of the House of Representatives and to the Committee on Foreign Relations of the Senate semiannual reports showing as of June 30 and December 31 of each year the repayment status of each loan theretofore made under authority of this Act any part of the principal or interest of which remains unpaid on the date of the report. 414

(g) 415 *** [Repealed-1968]

(h)416 The background documents transmitted to Congress in each fiscal year suporting requests for new authorizations and appropriations to carry out the programs under part II of this Act shall contain information concerning the proposed funding levels for military assistance and sales to South Vietnam, Thailand, and Laos.

Sec. 635.41 General Authorities. (a) Except as otherwise specifically provided in this Act, assistance under this Act may be furnished on a grant basis or on such terms, including cash, credit, or other terms of repayment (including repayment in foreign currencies or by transfer to the United States Government of commodities) as may be determined to be best suited to the achievement of the purposes of this Act, and shall emphasize loans rather than grants wherever possible.

(b) The President may make loans, advances, and grants to, make and perform agreements and contracts with, or enter into other transactions with, any individual, corporation, or other body of persons, friendly government or government agency, whether within or without the United States and international organizations in furtherance of the purposes and within the limitations of this Act.

(c) It is the sense of Congress that the President, in furthering the purposes of this Act, shall use to the maximum extent practicable the services and facilities of voluntary, nonprofit organizations registered with, and approved by, the Advisory Committee on Voluntary Foreign Aid.

(d) The President may accept and use in furtherance of the purposes of this Act, money, funds, property, and services of any kind made available by gift, devise, bequest, grant, or otherwise for such purpose.

(e) (1) 418 Any agency of the United States Government is authorized to pay the cost of health and accident insurance for foreign partici

The words to this point, beginning with "and of any finding," were added by Sec. 302 (h) (1) (C) of the FAAct of 1967. For other reports required to be submitted to Congress, see Reports to Congress, Index to FAAct, page 112. 12 Subsection (f) was added by Sec. 302 (c) of the FAAct of 1966.

For other reports required to be submitted to Congress, see Reports to Congress, Index to FAAct, page 112.

Subsection (g), which related to semiannual reports by the Secretary of State to the Congress of all exports of significant defense articles, was repealed by Sec. 45 (a) of the Foreign Military Sales Act (Public Law 90-629). For text, see Statutes Repealed, page 161. 18 Subsection (h) was added by Sec. 302 (h) (2) of the FAAct of 1967.

4 22 USC § 2395.

418 Sec. 302(1)(1) of the FAAct of 1967 added paragraph designation "(1)" and paragraph (2).

pants in any program of furnishing technical information and assistance administered by such agency while such participants are absent from their homes for the purpose of participation in such program.

(2) 418 Any agency of the United States Government is authorized to pay the cost of health and accident insurance for foreign employees of that agency while those employees are absent from their place of employment abroad for purposes of training or other official duties.

(f) Alien participants in any program of furnishing technical information and assistance under this Act may be admitted to the United States if otherwise qualified as nonimmigrants under section 101(a) (15) of the Immigration and Nationality Act, as amended (8 U.S.C. 1001(a)(15)), for such time and under such conditions as may be prescribed by regulations promulgated by the Secretary of State and the Attorney General.419

(g) In making loans 420 under this Act, the President

(1) may issue letters of credit and letters of commitment;

(2) may collect or compromise any obligations assigned to, or held by, and any legal or equitable rights accruing to him, and, as he may determine, refer any such obligations or rights to the Attorney General for suit or collection;

(3) may acquire and dispose of, upon such terms and conditions as he may determine, any property, including any instrument evidencing indebtedness or ownership (provided that equity securities may not be directly purchased although such securities may be acquired by other means such as by exercise of conversion rights or through enforcement of liens or pledges or otherwise to satisfy a previously incurred indebtedness), and guarantee payment against any such instrument;

(4) may determine the character of, and necessity for, obligations and expenditures of funds used in making such loans and the manner in which they shall be incurred, allowed, and paid, subject to provisions of law specifically applicable to corporations of the United States Government: and

(5) shall cause to be maintained an integral set of accounts which shall be audited by the General Accounting Office in accordance with principles and procedures applicable to commercial corporate transactions as provided by the Government Corporation Control Act, as amended (31 U.S.C. 841 et seq.).

(h) A contract or agreement which entails commitments for the expenditure of funds 421 available under titles II, V, and VI 421 (except development loans) 122 of chapter 2 of part I and under part II may, subject to any future action of the Congress, extend at any time for not more than five years.

(i) Claims arising as a result of investment guaranty operations may be settled, and disputes arising as a result thereof may be arbitrated with the consent of the parties, on such terms and conditions

419 See Sec. 101 (a) (15) (J) of the Immigration and Nationality Act (8 U.SC § 1101). 420 The words "and sales", which appeared at this point, were added by Sec. 302 (g) of the FAAct of 1965. Sec. 302 (1) (2) of the FAAct of 1967 provided that the words "and sales" be deleted from this subsection, effective June 30, 1968.

421 Sec. 302(g) of the FAAct of 1962 deleted the word "made" which appeared after the word "funds" and substituted the words ", V, and VI" for "and V".

422 The words "(except development loans)" were added by Sec. 302(d) of the FAAct of 1966.

as the President may direct. Payment made pursuant to any such settlement, or as a result of an arbitration award, shall be final and conclusive notwithstanding any other provision of law.

(j) The provisions of section 955 of title 18 of the United States Code shall not apply to prevent any person, including any individual, partnership, corporation, or association, from acting for, or participating in, any operation or transaction arising under this Act, or from acquiring any obligation issued in connection with any operation or transaction arising under this Act.

(k) 423 Any cost-type contract or agreement (including grants) entered into with a university, college, or other educational institution for the purpose of carrying out programs authorized by part I may provide for the payment of the reimbursable indirect costs of said university, college, or other educational institution on the basis of predetermined fixed-percentage rates applied to the total, or an element thereof, of the reimbursable direct costs incurred.

Sec. 636.424 Provisions on Uses of Funds.-(a) Appropriations for the purposes of or pursuant to this Act (except for part II), allocations to any agency of the United States Government, from other appropriations, for functions directly related to the purposes of this Act, and funds made available for other purposes to the agency primarily responsible for administering part I, shall be available for: (1) rent of buildings and space in buildings in the United States, and for repair, alteration, and improvement of such leased properties;

(2) expenses of attendance at meetings concerned with the purposes of such appropriations or of this Act, including (notwithstanding the provisions of section 9 of Public Law 60-328 (31 U.S.C. 673)) expenses in connection with meetings of persons whose employment is authorized by section 626;

(3) contracting with individuals for personal services abroad: Provided, That such individuals shall not be regarded as employees of the United States Government for the purpose of any law administered by the Civil Service Commission;

(4) purchase, maintenance, operation, and hire of aircraft: Provided, That aircraft for administrative purposes may be purchased only as specifically provided for in an appropriation or other Act;

(5) purchase and hire of passenger motor vehicles: Provided, That, except as may otherwise be provided in an appropriation or other Act, passenger motor vehicles for administrative purposes outside the United States may be purchased for replacement only, and such vehicles may be exchanged or sold and replaced by an equal number of such vehicles, and the cost, including exchange allowance, of each such replacement shall not exceed $3,500 in the case of an automobile for the chief of any special mission or staff outside the United States established under section 631: Provided further, That passenger motor vehicles, other than one for the official use (without regard to the limitations contained in section 5 of Public Law 63-127, as amended (31 U.S.C. 638a (c) (2)),425

Subsection (k) was added by Sec. 302 (e) of the FAAct of 1963.

424 22 USC § 2296.

Sec. 302(1)(1) of the FAAct of 1967 substituted "(31 U.S.C. 638a (c) (2)," for "(5 U.S.C. 78(c) (2))".

40-611 0-707

and section 201 of Public Law 85-468 (31 U.S.C. 638 (c)) 426 of the head of the agency primarily responsible for administering part I, may be purchased for use in the United States only as may be specifically provided in an appropriation or other Act;

(6) entertainment (not to exceed $25,000 in any fiscal year except as may otherwise be provided in an appropriation or other Act);

(7) exchange of funds without regard to section 3651 of the Revised Statutes (31 U.S.C. 543) and loss by exchange;

(8) expenditures (not to exceed $50,000 in any fiscal year except as may otherwise be provided in an appropriation or other Act) of a confidential character other than entertainment: Provided, That a certificate of the amount of each such expenditure, the nature of which it is considered inadvisable to specify, shall be made by the head of the agency primarily responsible for administering part I or such person as he may designate, and every such certificate shall be deemed a sufficient voucher for the amount therein specified;

427

(9) insurance of official motor vehicles or aircraft acquired for use in foreign countries;

(10) rent or lease outside the United States for not to exceed ten years of offices, buildings, grounds, and quarters, including living quarters to house personnel, and payments therefor in advance; maintenance, furnishings, necessary repairs, improvements, and alterations to properties owned or rented by the United States Government or made available for use to the United States Government outside the United States; and costs of fuel, water, and utilities for such properties;

(11) expenses of preparing and transporting to their former homes, or, with respect to foreign participants engaged in any program under part I, to their former homes or places of burial, and of care and disposition of, the remains of persons or members of the families of persons who may die while such persons are away from their homes participating in activities carried out with funds covered by this subsection;

(12) purchase of uniforms;

(13) payment of per diem in lieu of subsistence to foreign participants engaged in any program under part I while such participants are away from their homes in countries other than the United States, at rates not in excess of those prescribed by the standardized Government travel regulations, notwithstanding any other provision of law;

(14) use in accordance with authorities of the Foreign Service Act of 1946, as amended 428 (22 U.S.C. 801 et seq.), not otherwise provided for;

(15) ice and drinking water for use outside the United States; (16) services of commissioned officers of the Environmental

426 Sec. 302 (j) (2) of the FAAct of 1967 substituted "(31 U.S.C. 638c)" for "(5 U.S.C. 78a-1)".

427 See also Secs. 614 (a) and 624 (d) (7) of this Act.

428 For text, see page 433.