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ring after the initial allocation shall not constitute a violation of the requirements of this section. Any reallocation of food aid shall be in accordance with this section so far as practicable. The President shall report promptly any such reduction, and the reasons therefor, to the Congress. (7 U.S.C. 1711.)

SEC. 112. (a)39 No agreement may be entered into under this title to finance the sale of agricultural commodities to the government of any country which engages in a consistent pattern of gross violations of internationally recognized human rights, including torture or cruel, inhuman, or degrading treatment or punishment, prolonged detention without charges, or other flagrant denial of the right to life, liberty, and the security of person, unless such agreement will directly benefit the needy people in such country. An agreement will not directly benefit the needy people in the country for purposes of the preceding sentence unless either the commodities themselves or the proceeds from their sale will be used for specific projects or programs which the President determines would directly benefit the needy people of that country. The agreement shall specify how the projects or programs will be used to benefit the needy people and shall require a report to the President on such use within 6 months after the commodities are delivered to the recipient country.

(b) To assist in determining whether the requirements of subsection (a) are being met, the Committee on Agriculture, Nutrition, and Forestry of the Senate or the Committee on International Relations of the House of Representatives may require the President to submit in writing information demonstrating that an agreement will directly benefit the needy people in a country.

(c) In determining whether or not a government falls within the provisions of subsection (a), consideration shall be given to the extent of cooperation of such government in permitting an unimpeded investigation of alleged violations of internationally recognized human rights by appropriate international organizations, including the International Committee of the Red Cross, or groups or persons acting under the authority of the United Nations or of the Organization of American States.

(d) The President shall transmit to the Speaker of the House of Representatives, the President of the Senate, and the Committee on Agriculture, Nutrition, and Forestry of the Senate, in the annual presentation materials on planned programming of assistance under this Act, a full and complete report regarding the steps he has taken to carry out the provisions of this section. (7 U.S.C. 1712.)

SEC. 113.40 In the allocation of funds made available under this title, priority shall be given to financing the sale of food and fiber commodities. (7 U.S.C. 1713.)

SEC. 114. (a)41 The Congress declares it to be the policy of the United States to assist developing countries in the transition from food assistance recipients to economic self-sufficiency and to assist those nations

39 Sec. 112 was added by Sec. 203 of the International Development and Food Assistance Act of 1977, P.L. 95–88, 91 Stat. 545, Aug. 3, 1977.

40 Sec. 113 was added by Sec. 204 of the International Development and Food Assistance Act of 1977, P.L. 95-88, 91 Stat. 546, Aug. 3, 1977.

Sec. 114 was added by Sec. 205 of the International Development and Food Assistance Act of 1977, P.L. 95-88, 91 Stat. 546, Aug. 3, 1977.

which have been recipients of high protein, blended, or fortified foods under title II of this Act to continue to combat hunger and malnutrition among the lower income segments of their population, especially children, through the continued provision of these foods under this title. (b) In implementing the policy declared in subsection (a), the President, in entering into agreements for the sale of high protein, blended, or fortified foods under this title with countries which (1) give assurance that the benefits of any waiver under this section will be passed on to the individual recipients of such foods, and (2) have a reasonable potential for transition to commercial purchasers of such foods, may make provisions for a waiver of repayment of up to that part of the product value which is attributable to the costs of processing, enrichment, or fortification.

(c) In implementing this section, due care shall be taken to minimize its impact on other commercial and concessional sales of whole grains and, where feasible, agreements under this title utilizing the authority contained in this section will provide for sales of such commodities. (7 U.S.C. 1714.)

SEC. 115.42 (a) No purchases of food commodities shall be financed under this title unless they are made on the basis of an invitation for bid publicly advertised in the United States and on the basis of bid offerings which shall conform to such invitation and shall be received and publicly opened in the United States. All awards in the purchase of commodities financed under this title shall be consistent with open, competitive, and responsive bid procedures, as determined by the Secretary of Agriculture. Commissions, fees, or other payments to any selling agent shall-unless waived by the Secretary-be prohibited in any purchase of food commodities financed under this title.

(b) Notwithstanding any other provision of law, any commission, fee, or other compensation of any kind paid or to be paid by any supplier of a commodity or ocean transportation financed by the Commodity Credit Corporation under this title, to any agents, brokers, or other representatives of the importer or importing country, including a corporation owned or controlled by the importer or the government of the importing country, shall be reported to the Secretary of Agriculture by the supplier of the commodity or ocean transportation. The report shall identify the person or entity to whom the payment is made and the transaction in connection with which the payment is made. The Secretary shall maintain such information for public inspection, publish a report thereof annually, and forward a copy of the report to the Commíttee on Agriculture and the Committee on International Relations of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. Any supplier of a commodity or ocean transportation who fails to file such a report or who files a false report shall be ineligible to furnish-directly or indirectly-commodities or ocean transportation financed under this title for a period of five years. (7 U.S.C. 1715.)

42 Sec. 115 was added by Sec. 1202 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 955, Sept. 29, 1977.

TITLE II1

SEC. 201 (a)2 The President is authorized to determine requirements and furnish agricultural commodities, on behalf of the people of the United States of America, to meet famine or other urgent or extraordinary relief requirements; to combat malnutrition, especially in children; to promote economic and community development in friendly developing areas; and for needy persons and nonprofit school lunch and preschool feeding programs outside the United States. The Commodity Credit Corporation shall make available to the President such3 agricultural commodities determined to be available under section 401 as he may request.

(b)2 The minimum quantity of agricultural commodities distributed under this title

(1) for fiscal years 1978 through 1980 shall be 1,600,000 metric tons, of which not less than 1,300,000 metric tons shall be distributed through nonprofit voluntary agencies and the World Food Program;

(2) for fiscal year 1981 shall be 1,650,000 metric tons, of which not less than 1,350,000 metric tons shall be distributed through nonprofit voluntary agencies and the World Food Program; and

(3) for fiscal year 1982 and each fiscal year thereafter shall be 1,700,000 metric tons, of which not less than 1,400,000 metric tons shall be distributed through nonprofit voluntary agencies and the World Food Program;

unless the President determines and reports to the Congress, together with his reasons, that such quantity cannot be used effectively to carry out the purposes of this title: Provided, That such minimum quantity shall not exceed the total quantity of commodities determined to be available for disposition under this Act pursuant to section 401, less the quantity of commodities required to meet famine or other urgent or extraordinary relief requirements. (7 U.S.C. 1721.)

SEC. 202. (a) The President may furnish commodities for the purposes set forth in section 201 through such friendly governments and such agencies, private or public, including intergovernmental organizations such as the World Food Program and other multilateral organizations in such manner and upon such terms and conditions as he deems appropriate. The President shall, to the extent practicable, utilize nonprofit voluntary agencies registered with, and approved by, the Agency for International Development. If no United States nonprofit voluntary agency registered with and approved by the Agency for International

Sec. 604(c) of the Foreign Assistance Act of 1961, P.L. 87-195, 75 Stat. 439, as amended (22 U.S.C. 2354), provides as follows:

"In providing for the procurement of any agricultural commodity or product thereof available for disposition under the Agricultural Trade Development and Assistance Act of 1954, as amended, for transfer by grant under this Act to any recipient country in accordance with its requirements, the President shall, insofar as practicable and when in furtherance of the purposes of this Act, authorize the procurement of such agricultural commodity only within the United States except to the extent that such agricultural commodity is not available in the United States in sufficient quantities to supply emergency requirements of recipients under this Act.'

See also note 13 to Sec. 103.

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2 Sec. 208 of P.L. 94-161, 89 Stat. 853, Dec. 20, 1975, amended Sec. 201 by inserting "(a)" immediately after "Sec. 201" and by adding a new subsec. (b). Subsec. (b) was amended by Sec. 206 of the International Development and Food Assistance Act of 1977, P.L. 95-88, 91 Stat. 547, Aug. 3, 1977, by deleting certain language and inserting clauses (1) 3). As originally enacted by Sec. 2 of the Food for Peace Act of 1966, P.L. 89-808, 80 Stat. 1534, Nov. 11, 1966, the word "as" appeared at this point.

Sec. 207 of the International Development and Food Assistance Act of 1977, P.L. 95-88, 91 Stat. 547, Aug. 3, 1977, amended Sec. 202 by inserting "(a)" immediately after "Sec. 202", deleting the next to the last sentence in subsec. (a), and adding subsec. (b).

Development is available, the President may utilize a foreign nonprofit voluntary agency which is registered with and approved by the Agency for International Development Insofar as practicable, all commodities furnished hereunder shall be clearly identified by appropriate marking on each package or container in the language of the locality where they are distributed as being furnished by the people of the United States of America. Except in the case of emergency, the President shall take reasonable precaution to assure that commodities furnished hereunder will not displace or interfere with sales which might otherwise be made. (b) (1)4 Assistance to needy persons under this title shall be directed, insofar as practicable, toward community and other selfhelp activities designed to alleviate the causes of need for such assistance.

(2)6 In order to assure that food commodities made available under this title are used effectively and in the areas of greatest need, entities through which such commodities are distributed shall be encouraged to work with indigenous institutions and employ indigenous workers, to the extent feasible, to assess nutritional and other needs of beneficiary groups, help these groups design and carry out mutually acceptable projects, recommend ways of making food assistance available that are most appropriate for each local setting, supervise food distribution, and regularly evaluate the effectiveness of each project.

(3) In distributing food commodities under this title, priority shall be given, to the extent feasible, to those who are suffering from malnutrition by using means such as (A) giving priority within food programs for preschool children to malnourished children, and (B) giving priority to the poorest regions of countries. (7 U.S.C. 1722.)

SEC. 203. The Commodity Credit Corporation may, in addition to the cost of acquisition, pay with respect to commodities made available under this title costs for packaging, enrichment, preservation, and fortification; processing, transportation, handling, and other incidental costs up to the time of their delivery free on board vessels in United States ports; ocean freight charges from United States ports to designated ports of entry abroad; transportation from United States ports to designated points of entry abroad in the case (1) of landlocked countries, (2) where ports cannot be used effectively because of natural or other disturbances, (3) where carriers to a specific country are unavailable, or (4) where a substantial savings in costs or time can be effected by the utilization of points of entry other than ports; and charges for general average contributions arising out of the ocean transport of commodities_transferred pursuant thereto. (7 U.S.C. 1723.)

SEC. 204. Programs of assistance shall not be undertaken under this title during any calendar year which call for an appropriation of more than $750,000,0008 to reimburse the Commodity Credit Corporation for

Sec. 208(a) of the International Development and Food Assistance Act of 1977, P.L. 95-88, 91 Stat. 547, Aug. 3, 1977, added the third sentence of Sec. 202(a). "Agency for International Development" substituted for "Advisory Committee on Voluntary Foreign Aid" and "Advisory Committee" by Sec. 121 of P.L. 96-53, 93 Stat. 366, Aug. 14, 1979. Sec. 202 of P.L. 96-53, 93 Stat. 368, Aug. 14, 1979, amended (2) to read as shown in the text.

7 Sec. 203 was amended by Sec. 209 of the International Development and Food Assistance Act of 1977, P.L. 95-88, 91 Stat. 548, Aug. 3, 1977, by deleting "or, in the case of landlocked countries," after "ports of entry abroad" and adding the semicolon and by adding the material beginning with "in the case" through "other than ports". *Sec. 204 was amended by Sec. 1203 of the Food and Agriculture Act of 1977, P.L. 95-113, 91 Stat. 956, Sept. 29, 1977, by changing "$600,000,000" to "$750,000,000".

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