(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.

(c) 658*** [Repealed-1981]

(d) 659 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. 614.660 Special Authorities. (a) 661 (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.

(2) 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

658 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 (c), as amended by sec. 46 of Public Law 94-273, was repealed by sec. 734(a)(1) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1560).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.

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

660 22 U.S.C. 2364.

661 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.".

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. 662

(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 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) 663 (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

(iii) the use of more than $100,000,000 of foreign currencies accruing under this Act or any other law.

(B) If the authority of this subsection is used both to authorize a sale under the Arms Export Control Act and to authorize funds to

662 In a January 16, 1991, memorandum to the Secretary of State, the President determined "that it is vital to the national security interests of the United States to finance the sale of defense articles and defense services to Turkey, notwithstanding any provision of law within the scope of section 614(a)(2), including any provision of law that restricts the amount of assistance that can be provided to Turkey to carry out the provisions of section 23 of the Arms Export Control Act. I hereby authorize the making of up to $50,000,000 in such financing." Presidential Determination 91-17 of January 16, 1991; 56 F.R. 4717).

In a March 6, 1991, memorandum to the Secretary of State, the President determined "that it is vital to the national security interests of the United States to finance the sale of up to an aggregate of $3.023 million of defense articles and defense services for Niger and Senegal, notwithstanding any provision of law that earmarked funds appropriated for fiscal year 1982 for the Sudan, and notwithstanding section 515(b) of Public Law 101-513 insofar as that provision would require deobligation to occur in accordance with amendments of applicable grant or loan agreements. Accordingly, I hereby authorize the extension of such financing."(Presidential Determination 91-23 of March 6, 1991; 56 F.R. 12331).

In a February 4, 1992, memorandum to the Secretary of State, the President determined "that it is important to the security interests of the United States to furnish assistance to the Organization of American State (OAS) for its activities in Haiti notwithstanding section 513 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101-513) and any other provision of law within the scope of section 614, and authorize the furnishing of up to $2 million of funds made available to carry out chapter 4 of part II of the Foreign Assistance Act of 1961 for that purpose."(Presidential Determination 92-13 of February 4, 1992; 57 F.R. 5789).

In a February 18, 1992, memorandum to the Secretary of State, the President:

“(1) determine(d) that it is important to the security interests of the United States to furnish assistance described in paragraphs (2) and (3) below notwithstanding section 512 of the Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1991 (Public Law 101-513); section 512 as applied to fiscal year 1992 pursuant to the Joint Resolution making continuing appropriations for fiscal year 1992, and for other purposes (Public Law 102-145); other acts making appropriations for foreign operations, export financing, and related programs for fiscal year 1992; and any other provision of law within the scope of section 614(a)(1);

"(2) authorize(d) the furnishing of up to $1.5 million of Economic Support Funds made available for fiscal year 1991 for support for democratization in Angola; and

“(3) authorize(d) the furnishing of up to $13 million from funds made available for the Development Fund for Africa for fiscal year 1992 for support for democratization in Angola and to address other pressing needs in Angola in the period until elections are completed." (Presidential Determination 92-16 of February 18, 1992; 57 F.R. 7317).

663 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.".

be used under the Arms Export Control Act or under this Act with respect to the financing of that sale, then the use of the funds shall be counted against the limitation in subparagraph (A)(ii) and the portion, if any, of the sale which is not so financed shall be counted against the limitation in subparagraph (A)(i).

(C) Not more than $50,000,000 of the $250,000,000 limitation provided in subparagraph (A)(ii) may be allocated to any one country in any fiscal year unless that country is a victim of active Communist or Communist-supported aggression, and not more than $500,000,000 of the aggregate limitation of $1,000,000,000 provided in subparagraphs (A)(i) and (A)(ii) may be allocated to any one country in any fiscal year.

(5) The authority of this section may not be used to waive the limitations on transfers contained in section 610(a) of this Act.

(b) Whenever the President determines it to be important to the national interest, he may use funds available for the purposes of chapter 4 of part I in order to meet the responsibilities or objectives of the United States in Germany, including West Berlin, and without regard to such provisions of law as he determines should be disregarded to achieve this purpose.

(c) The President is authorized to use amounts not to exceed $50,000,000 of the funds made available under this Act pursuant to his certification that it is inadvisable to specify the nature of the use of such funds, which certification shall be deemed to be a sufficient voucher for such amounts. 664 The President shall fully inform the chairman and ranking minority member of the Committee on Foreign Affairs of the House of Representatives and the chairman and ranking minority member of the Committee on Foreign Relations of the Senate of each use of funds under this subsection prior to the use of such funds. 665

Sec. 615.666 Contract Authority.-Provisions of this Act authorizing the appropriation of funds shall be construed to authorize the granting in any appropriation Act of authority to enter into contracts, within the amounts so authorized to be appropriated, creating obligations in advance of appropriations.

Sec. 616.667 Availability of Funds.-Except as otherwise provided in this Act, funds shall be available to carry out the provisions of this Act as authorized and appropriated to the President each fiscal year.

Sec. 617.668 Termination of Assistance.-Assistance under any provision of this Act may, unless sooner terminated by the President, be terminated by concurrent resolution. Funds made available under this Act shall remain available for a period not to exceed eight 669 months from the date of termination of assistance

664 See also secs. 624(d)(7) [repealed-1978; see note] and 636(a)(8) of this Act.

665 The last sentence was added by sec. 30(g) of the FA Act of 1966. This sentence was amended and restated by sec. 8 of the Anti-Terrorism and Arms Export Amendments Act of 1989 (Public Law 101-222; 103 Stat. 1899). It formerly read as follows: "The President shall promptly and fully inform the Speaker of the House of Representatives and the chairman and ranking minority member of the Committee on Foreign Relations of the Senate of each use of funds under this subsection.".

666 22 U.S.C. 2365.

667 22 U.S.C. 2366.

668 22 U.S.C. 2367.

669 Sec. 14 of the FA Act of 1973 inserted "eight" in lieu of "twelve".

under this Act for the necessary expenses of winding up programs related thereto. In order to ensure the effectiveness of assistance under this Act, such expenses for orderly termination of programs may include the obligation and expenditure of funds to complete the training or studies outside their countries of origin of students whose course of study or training program began before assistance was terminated. 670

*

Sec. 618.671 Use of Settlement Receipts.-** [Repealed-1978] Sec. 619.671 Assistance to Newly Independent Countries.-* [Repealed-1978]

Sec. 620.672 Prohibitions Against Furnishing Assistance. 673. (a)(1) 674 No assistance shall be furnished under this Act to the present government of Cuba.675 As an additional means of implementing and carrying into effect the policy of the preceding sentence, the President is authorized to establish and maintain a total embargo upon all trade between the United States and Cuba.

(2) 676 Except as may be deemed necessary by the President in the interest of the United States, no assistance shall be furnished under this Act to any government of Cuba, nor shall Cuba be entitled to receive any quota authorizing the importation of Cuban sugar into the United States or to receive any other benefit under any law of the United States, until the President determines that such government has taken appropriate steps according to international law standards to return to United States citizens, and to entities not less than 50 per centum beneficially owned by United States citizens, or to provide equitable compensation to such citizens and entities for property taken from such citizens and entities on or after January 1, 1959, by the Government of Cuba.

670 This sentence was added by sec. 310 of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3148).

671 Secs. 618 and 619 were repealed by sec. 604 of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 961).

672 22 U.S.C. 2370.

673 Sec. 301(d)(1) of the FA Act of 1965 inserted "Prohibitions Against Furnishing Assistance.-" for "Prohibitions Against Furnishing Assistance to Cuba and Certain Other Countries." See also secs. 491(b) and 664 of this Act.

674 Sec. 301(e)(1)(A) of the FA Act of 1963 inserted "(1)" after subsec. (a).

675 The phrase, "; nor shall any such assistance be furnished to any country which furnishes assistance to the present government of Cuba unless the President determines that such assistance is in the national interest of the United States", which formerly appeared at this point, was struck out by sec. 123(a)(1) of the International Development and Food Assistance Act of 1977 (Public Law 95-88; 91 Stat. 541).

676 Pars. (2) and (3) were added by sec. 301(e)(1)(B) of the FA Act of 1963. Paragraph (3) was subsequently repealed by sec. 123(a)(2) of the International Development and Food Assistance Act of 1977 (Public Law 95-88; 91 Stat. 541). It formerly read as follows:

"(3) No funds authorized to be made available under this Act (except under section 214) shall be used to furnish assistance to any country which has failed to take appropriate steps, not later than 60 days after the date of enactment of the Foreign Assistance Act of 1963

"(A) to prevent ships or aircraft under its registry from transporting to Cuba (other than to United States installations in Cuba)

"(i) any items of economic assistance,

"(ii) any items which are, for the purposes of title I of the Mutual Defense Assistance Control Act of 1951, as amended, arms, ammunition, and implements of war, atomic energy materials, petroleum, transportation materials of strategic value, or items of primary strategic significance used in the production of arms, ammunition, and implements of war, or

"(iii) any other equipment, materials, or commodities, so long as Cuba is governed by the Castro regime; and

"(B) to prevent ships or aircraft under its registry from transporting any equipment, materials, or commodities from Cuba (other than from United States installations in Cuba) so long as Cuba is governed by the Castro regime.".

[Repealed-1981]

(c) 678 No assistance shall be provided under this Act to the government of any country which is indebted to any United States citizen or person for goods or services furnished or ordered where (i) such citizen or person has exhausted available legal remedies, which shall include arbitration, or (ii) the debt is not denied or contested by such government, or (iii) such indebtedness arises under an unconditional guaranty of payment given by such government, or any predecessor government, directly or indirectly, through any controlled entity: Provided, That the President does not find such action contrary to the national security.

(d) No assistance shall be furnished on a loan basis under chapter 1 of part I 679 of this Act for construction or operation of any productive enterprise in any country where such enterprise will compete with United States enterprise unless such country has agreed that it will establish appropriate procedures to prevent the exportation for use or consumption in the United States of more than 20 per centum of the annual production of such facility during the life of the loan. In case of failure to implement such agreement by the other contracting party, the President is authorized to establish necessary import controls to effectuate the agreement. The restrictions imposed by or pursuant to this subsection may be waived by the President where he determines that such waiver is in the national security interest.

680

(e) (1) 681 The President shall suspend assistance to the government of any country to which assistance is provided under this

677 Subsec. (b) was repealed by sec. 734(a)(1) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1560). It previously read as follows: "(B) No assistance shall be furnished under this Act to the government of any country unless the President determines that such country is not dominated or controlled by the international Communist movement.".

678 Subsec. (c) was amended by sec. 301(d)(2) of the FA Act of 1962. It formerly read as follows: "(c) No assistance shall be provided under this Act to the government of any country which is indebted to any United States citizen for goods or services furnished, where such citizen has exhausted available legal remedies and the debt is not denied or contested by such government.".

679 The words "on a loan basis under chapter 1 of part I" were inserted in lieu of "under section 201" by sec. 102(g)2XF) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 943).

680 Subsec. (e) was added by sec. 301(d)(3) of the FA Act of 1962 and was amended by sec. 301(e)(2) of the FA Act of 1963 and by secs. 301(d)(1) and (2) of the FA Act of 1964. As originally enacted, it read as follows:

"(e) The President shall suspend assistance to the government of any country to which assistance is provided under this Act when the government of such country or any governmental agency or subdivision within such country on or after January 1, 1962

"(1) has nationalized or expropriated or seized ownership or control of property owned by any United States citizen or by any corporation, partnership, or association not less than 50 per centum beneficially owned by United States citizens, or

"(2) has imposed or enforced discriminatory taxes or other exactions, or restrictive maintenance or operational conditions, which have the effect of nationalizing, expropriating, or otherwise seizing ownership or control of property so owned, and such country, government agency or government subdivision fails within a reasonable time (not more than six months after such action or after the date of enactment of this subsection, whichever is later) to take appropriate steps, which may include arbitration, to discharge its obligations under international law toward such citizen or entity, including equitable and speedy compensation for such property in convertible foreign exchange, as required by international law, or fails to take steps designed to provide relief from such taxes, exactions, or conditions, as the case may be, and such suspension shall continue until he is satisfied that appropriate steps are being taken and no other provision of this Act shall be construed to authorize the President to waive the provisions of this subsection.".

681 Paragraph designation “(1)" was added by sec. 301(d)(1) of the FA Act of 1964.

Sec. 5(b) of the Africa Famine Relief and Recovery Act of 1985 (Public Law 99-8; 99 Stat. 22), permitted assistance with funds appropriated by the Act without regard to sec. 620(e)(1) (the "Hickenlooper Amendment"].