TITLE I-TRADE AND DEVELOPMENT ASSISTANCE SEC. 101.5 TRADE AND DEVELOPMENT ASSISTANCE. (a) IN GENERAL.-The President shall establish a program under this title to provide for the sale of agricultural commodities to developing countries for dollars on credit terms, or for local currencies (including for local currencies on credit terms) for use under this title. Such program shall be implemented by the Secretary. (b) GENERAL AUTHORITY.-To carry out the policies and accomplish the objectives described in section 2, the Secretary may negotiate and execute agreements with developing countries to finance the sale and exportation of agricultural commodities to such countries. SEC. 102.6 ELIGIBLE COUNTRIES. (a) IN GENERAL.-A country shall be considered to be a developing country and eligible for assistance under this title if such country has a shortage of foreign exchange earnings and has difficulty meeting all of its food needs through commercial channels, as determined by the Secretary. (b) PRIORITY.-In determining whether and to what extent agricultural commodities will be made available to developing countries under this title, the Secretary shall give priority to developing countries that (1) demonstrate the greatest need for food; (2) are undertaking measures for economic development purposes to improve food security and agricultural development, alleviate poverty, and promote broad-based equitable and sustainable development; and (3) have the demonstrated potential to become commercial markets for competitively priced United States agricultural commodities. SEC. 103. TERMS AND CONDITIONS OF SALES. (a) PAYMENT.— (1) DOLLARS.-Except as provided in paragraph (2), agreements under this title shall require that payment for agricultural commodities be made in dollars. (2) LOCAL CURRENCIES. (A) IN GENERAL.-The Secretary may permit a recipient country to make payment under an agreement under this title in the local currency of such country in order to use the proceeds from such payments to carry out activities under section 104. (B) RATES OF EXCHANGE.-Payments in local currency shall be at rates of exchange that are no less favorable than the highest exchange rate legally obtainable in the country and that are no less favorable than the highest exchange rate obtainable by any other country. $7 U.S.C. 1701. 67 U.S.C. 1702. 77 U.S.C. 1703. (b) INTEREST.-Such agreements shall provide that interest accrue on the payment deferred under such agreement at a concessional rate as determined appropriate by the Secretary. (c) DURATION.-Payments required under such agreements may be made in reasonable annual amounts over the period (not less than 10 nor more than 30 years from the date of the last delivery of commodities in each year under such agreement) specified in the agreement. (d) DEFERRAL OF PAYMENTS.-The Secretary may defer the date on which the recipient country is required to begin making payment, under such agreements, for a period of not in excess of 7 years after the date of the last delivery of commodities in each year under the agreement, and interest shall be computed from the date of such last delivery. (e) DELIVERY OF COMMODITIES.-Delivery of the commodities shall be made in accordance with the terms of the agreement. NOTE. See Public Law 89-677, use of reserved foreign Section 507 of the Public Works for Water, Pollution "Pursuant to section 1415 of the Act of July 15, 1952 (66 SEC. 104.8 USE OF LOCAL CURRENCY PAYMENT. (a) IN GENERAL.-Agreements under this title may provide that the Secretary shall use payments made in local currencies by the recipient country in accordance with this section. (b) SPECIAL ACCOUNT.-Foreign currencies received by the Secretary under this title shall be deposited in a separate account, that may be interest-bearing, to the credit of the United States and such currencies and interest thereon shall be used as provided for in this section. (c) ACTIVITIES.-The proceeds from the payments referred to in subsection (a) may be used in the recipient country for the following: 87 U.S.C. 1704. (1) TRADE DEVELOPMENT.-To carry out programs to help develop markets for United States agricultural commodities on a mutually beneficial basis in the recipient country. (2) AGRICULTURAL DEVELOPMENT.-To support (A) increased agricultural production, including availability of agricultural inputs, with emphasis on small farms, processing of agricultural commodities, forestry management, and land and water management; (B) credit policies for private-sector agriculture development; (C) establishment and expansion of institutions for basic and applied agricultural research and the use of such research through development of extension services; and (D) programs to control rodents, insects, weeds, and other animal or plant pests. (3) AGRICULTURAL BUSINESS DEVELOPMENT LOANS.-To make loans to United States business entities (including cooperatives) and branches, subsidiaries, or affiliates of such entities for agricultural business development and agricultural trade expansion in such recipient countries. (4) AGRICULTURAL FACILITIES LOANS.-To make loans to domestic or foreign entities (including cooperatives) for the establishment of facilities for aiding in the utilization or distribution of, or otherwise increasing the consumption of and markets for, United States agricultural products. (5) TRADE PROMOTION.-To promote agricultural trade development, under procedures established by the Secretary, by making loans or through other activities (including trade fairs) that the Secretary determines to be appropriate. (6) PRIVATE SECTOR AGRICULTURAL TRADE DEVELOPMENT.-TO conduct private sector agricultural trade development activities in the recipient country, as determined appropriate by the Secretary. (7) RESEARCH.-To conduct research in agriculture, forestry, and aquaculture, including collaborative research which is mutually beneficial to the United States and the recipient country. (8) UNITED STATES OBLIGATIONS. To make payments of United States obligations (including obligations entered into pursuant to other laws). (d) FISCAL REQUIREMENTS REGARDING USE OF LOCAL CURREN CIES. (1) EXEMPTION.-Section 1306 of title 31, United States Code, shall not apply to local currencies used by the President under paragraphs (1) through (7) of subsection (c). (2) USE OF CURRENCIES BY OTHER AGENCIES.-Any department or agency of the Federal Government other than the Department of Agriculture using any such local currencies for a purpose for which funds have been appropriated shall reimburse the Commodity Credit Corporation in an amount equivalent to the dollar value of the currencies used. SEC. 105.9 VALUE-ADDED FOODS. (a) POLICY.-Congress declares it to be the policy of the United States to assist developing countries that are or have been recipients of high protein, blended, or fortified foods under title II to continue to combat hunger and malnutrition among the lower income segments of the population of such countries, especially children, through the continued provision of such foods under this title. (b) PARTIAL WAIVER OF REPAYMENT.-In implementing the policy declared in subsection (a), the Secretary, in entering into agreements for the sale of high protein, blended, or fortified foods under this title with countries that (1) provide assurances that the benefits of any waiver granted under this subsection will be passed on to the individual recipients of such foods; and (2) have a reasonable potential for transferring benefits of such waiver to commercial purchasers of such foods; may make provisions for a waiver of payment of not to exceed an amount equal to the value of that part of the product that is attributable to the costs of processing, enrichment, or fortification of such product. (c) MINIMIZE IMPACT.-In implementing this section, the Secretary shall, to the extent practicable, minimize the impact of this section on other commercial and concessional sales of whole grains. TITLE II-EMERGENCY AND PRIVATE ASSISTANCE PROGRAMS 10 SEC. 201.11 GENERAL AUTHORITY. The President shall establish a program under this title to provide agricultural commodities to foreign countries on behalf of the people of the United States to (1) address famine or other urgent or extraordinary relief requirements; (2) combat malnutrition, especially in children and mothers; (3) carry out activities that attempt to alleviate the causes of hunger, mortality and morbidity; (4) promote economic and community development; Such program shall be implemented by the Administrator. 97 U.S.C. 1705. 10 In a May 31, 1991, memorandum to the Secretary of Agriculture, the President determined the following: "By virtue of the authority vested in me as President by the Food Security Wheat Reserve Act of 1980 (the 'Act') (7 U.S.C. 1736f-1), I hereby authorize the release in fiscal year 1991 of up to 300,000 metric tons of wheat from the reserve established under the Act (the 'reserve') for use under Title II of the Agricultural Trade Development and Assistance Act of 1954, as amended (7 U.S.C. 1691 et seq.), to meet relief needs that exist in developing countries of the Middle East, Africa, and Asia, which I hereby determine are suffering major disasters. The wheat will be used to provide urgent humanitarian relief to the peoples in the Middle East, Africa, and Asia who are suffering widespread hunger and malnutrition. "This action is take because wheat needed for relief in these regions cannot be programmed for such purpose in a timely manner under the normal means of obtaining commodities for food assistance due to circumstances of unanticipated and exceptional need." (Presidential Determination No. 91-38 of May 31, 1991; 56 F.R. 28683; June 24, 1991). 117 U.S.C. 1721. SEC. 202.12 PROVISION OF AGRICULTURAL COMMODITIES. ASSISTANCE.-Notwithstanding (a) EMERGENCY any other provision of law, the Administrator may provide agricultural commodities to meet emergency food needs under this title through governments and public or private agencies, including intergovernmental organizations such as the World Food Program and other multilateral organizations, in such manner and on such terms and conditions as the Administrator determines appropriate to respond to the emergency. (b) NON-EMERGENCY ASSISTANCE.-The Administrator may provide agricultural commodities for non-emergency assistance under this title through eligible organizations (as described in subsection (d)) that have entered into an agreement with the Administrator to use such commodities in accordance with this title. (c) USES OF ASSISTANCE.-Agricultural commodities provided under this title may be made available for direct distribution, sale, barter, or other appropriate disposition. (d) ELIGIBLE ORGANIZATIONS.-To be eligible to receive assistance under subsection (b) an organization shall be (1) a private voluntary organization or cooperative that is, to the extent practicable, registered with the Administrator; or (2) an intergovernmental organization, such as the World Food Program. (e) SUPPORT FOR PRIVATE VOLUNTARY ORGANIZATIONS AND COOP ERATIVES. (1) IN GENERAL.-Of the funds made available in each fiscal year under this title to private voluntary organizations and cooperatives, not less than $10,000,000 and not more than $13,500,000 shall be made available by the Administrator to assist such organizations and cooperatives in— (A) establishing new programs under this title; and (B) meeting specific administrative, management, personnel and internal transportation and distribution costs for carrying out programs in foreign countries under this title. (2) REQUEST FOR FUNDS.-In order to receive funds made available under paragraph (1), a private voluntary organization or cooperative must submit a request for such funds (which must be approved by the Administrator) when submitting a proposal to the Administrator for an agreement under this title. Such request for funds shall include a specific explanation of (A) the program costs to be offset by such funds; (B) the reason why such funds are needed in carrying out the particular assistance program; and (C) the degree to which such funds will improve the provision of food assistance to foreign countries (particularly those in sub-Saharan Africa suffering from acute, longterm food shortages). (3) ASSISTANCE WITH RESPECT TO SALE.-Upon the request of a private voluntary organization or cooperative, the Administra 127 U.S.C. 1722. |