assistance," or "Assistance to refugees from the Soviet Union or other Communist countries in Eastern Europe," shall be available for obligation for activities, programs, projects, type of materiel assistance, countries, or other operations not justified or in excess of the amount justified to the Appropriations Committees for obligation under any of these specific headings for the current fiscal year without the approval of the Appropriations Committees of both Houses of the Congress. The Conference Report on H.R. 12203 states, with respect to the above provision, the agreement of the Senate and House conferees that any activity, program, project, type of materiel assistance or other operation specifically set forth by recipient or country and by amount to be obligated shall be deemed "justified"; and if not so set forth, it shall be deemed not "justified." The Report adds: “Constructive consent will be implied if no objection is raised within fifteen days after notification of the proposed reprogramming." See H. Rept. 94-1006, 94th Cong., 2d Sess.

Postwar Assistance to Indochina

The Foreign Assistance and Related Programs Appropriations Act, 1976 (P.L. 94-330; 90 Stat. 771), approved June 30, 1976, placed the following prohibition on use of funds for assistance to Indochina:

Sec. 108. None of the funds appropriated or made available pursuant to this Act shall be used to provide assistance to the Democratic Republic of Viet-Nam (North Viet-Nam), South VietNam, Cambodia or Laos.

The same prohibition is contained in section 108 of the Foreign Assistance and Related Programs Appropriations Act, 1977 (P.L. 94-441; 90 Stat. 1469), approved October 1, 1976.

Disaster Relief

The Agency for International Development, on October 15, 1976, announced the revision, effective November 1, 1976, of Chapter II, Part 211 (AID Regulation 11) relating to food commodities for use in disaster relief and economic development, and other assistance. The revision incorporates amendments of P.L. 480, Title II, contained in the International Development and Food Assistance Act of 1961 (P.L. 94-161; 89 Stat. 849), approved December 20, 1975. The major revisions relate to the fixing of the minimum quantity of agricultural commodities distributed under P.L. 480, Title II, at 1,300,000 tons in each fiscal year, and provision for the sale of commodities with the use of proceeds for self-help purposes.

Fed. Reg., Vol. 41, No. 211, Nov. 1, 1976, pp. 47919-47927. Guatemala

The Guatemala Relief and Rehabilitation Act of 1976 (P.L. 94-276; 90 Stat. 397; 22 U.S.C. 2292g), was approved April 21, 1976. It amended the Foreign Assistance Act of 1961 "to provide emergency relief, rehabilitation, and humanitarian assistance to the people who have been victimized by the recent earthquakes in Guatemala."

The Agency for International Development (AID) thereafter entered into a series of agreements with Guatemala and its governmental entities: on May 14, 1976, with the Municipal Development Institute of Guatemala, to provide grant assistance up to $1,950,000 to assist in recovering and reinitiating public community services; on June 17, 1976, with the Ministry of Communications and Public Works of Guatemala, to provide grant assistance up to $2,093,992, to assist in implementing various emergency programs; and on September 20, 1976, with the Government of Guatemala, to lend up to $8,000,000 for municipal earthquake recovery. Grant assistance for the emergency programs was provided pursuant to section 491 of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2292), and in accordance with the Agreement for Technical Cooperation between the United States and Guatemala of September 1, 1954 (TIAS 3068; 5 UST 2010).

Dept. of State File L/T.

Italy

Following the earthquake of May 6, 1976, in northern Italy. Congress passed appropriations of $25,000,000 for the Italian disaster relief and rehabilitation effort (P.L. 94-303, Ch. III: 90 Stat. 602). In anticipation of Presidential signature, an AID team was dispatched to Italy on May 23, 1976, to negotiate a general operating agreement as quickly as possible and to identify specific projects for U.S. financing. The agreement for provision of assistance to earthquake victims of Italy was concluded by exchange of notes at Rome on June 9, 1976 (TIAS 8416; 27 UST).

It defined the general terms and conditions under which the United States would furnish assistance, under the authority of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2292), and related legislation. Specifically, it authorized the United States to furnish assistance to various governmental and private entities and to enter into agreements with such entities specifying the terms and conditions of assistance. The U.S. Embassy submitted to the Italian Government the names of the implementing personnel to be accredited in the normal fashion, and to receive the appropriate privileges and immunities. The agreement also accorded to the U.S. assistance effort all the special exemptions from taxation and tariffs created for the earthquake relief effort, as well as any other exemptions that might be applicable. Finally, the agreement called for consultations between the two Governments, at the request of either, and recognized that the U.S. Government required audits and inspections in implementing the assistance program.

U.N. Conference on Trade and Development

The Fourth U.N. Conference on Trade and Development (UNCTAD IV) was held in Nairobi, Kenya, May 5-May 31, 1976. The outcome included some positive achievements, particularly on the outlines of an integrated commodity program designed to help stabilize and increase export earning of developing countries. The Conference, however, was unable to reach agreement on action to alleviate the serious debt burden of the developing countries not exporting oil. The Conference did not accept a U.S. proposal for an International Resources Bank.

Calling upon the nations attending the Conference to build upon the positive accomplishments of the Seventh Special Session, Secretary of State Kissinger in an address to the Conference on May 6, 1976, underscored the desire of the United States to cooperate with other nations. He stated:

We are, this year, in the midst of what may well be the most extensive series of international negotiations on trade, finance, commodities, and development in history-involving more nations, addressing more issues, and affecting more people than ever before. This conference has a major role to play. In particular we can advance our work in four key areas:

First, we must make renewed efforts on commodity issues, including the problems of resource investment and trade . . . Second, we must design a far-reaching long term program to accelerate technology transfer

Third, we must deal with serious balance-of-payments and debt problems which face a number of developing countries

Fourth, we must continue to respond to the special and urgent needs of the poorest countries

At this conference, the United States proposes its own comprehensive approach to commodity issues. It reflects many of the objectives contained in the integrated program and our desire for constructive action on all aspects of the challenge. It contains the following elements:

-Insuring sufficient financing for resource development and for equitable sharing in the benefits by the host nation;

-Improving the conditions of trade and investment in individual commodities and moderating excessive price fluctuations;

-Stabilizing the overall export earnings of developing countries; and

-Improving access to markets for processed products of developing countries while assuring consumers reliability of supply.

[T]he United States proposes the establishment of an International Resources Bank (IRB). This new institution would promote more rational, systematic, and equitable development of resources in developing nations. It would facilitate technological development and management training in the developing countries. It would help insure supplies of raw materials to sustain the expansion of the global economy and would help moderate commodity price fluctuations.

The International Resources Bank would mobilize capital for sound resource development projects by assisting individual resource projects to secure direct financing and issuing bonds which could be secured by a specific commodity. Alternatively, these bonds could be retired through delivery of a specific commodity. "Commodity bonds" of this type could greatly improve conditions of supply and market access and help developing countries to stabilize export earnings.

To enhance confidence for both host governments and investors the International Resources Bank would begin operations with a capital fund of $1 billion. It would participate with foreign investors and the host government in project agreements specifying the conditions of the investment on a basis acceptable to all parties. Such an agreement could include a formula for production sharing and arrangements by investors to help develop the managerial, technological, and marketing capabilities of the host country. The Bank would support guarantees of both investor and host nation performance in accordance with conditions established in the project agreement.

To insure effective coordination with other public institutions, the International Resources Bank could be associated with the World Bank Group, in a form to be worked out by the participating countries . . . .

The United States will . . . continue to seek commitments of reliable supply in the context of specific arrangements negotiated for individual commodities.

This four-point program-a new International Resources Bank, a case-by-case effort to improve conditions of trade and investment in primary products, stabilization of export earnings, and improved market and supply conditions-recognizes that these issues are linked; yet it permits pragmatic and flexible treatment of specific problems. . . .

Let me now turn to another area of major concern: the application of technology for development.

We must pursue a comprehensive approach which provides a broad range of programs and incentives to transfer both technology and the fundamental skills that will give it root and effectiveness. To promote this, the United States proposes a fivepoint approach:

First, to adapt technology to the needs of developing countries, the United States supports the establishment of a network of research and development institutions at the local, regional, and international level. We need to strengthen global research capacities for development and to expand intergovernmental cooperation. Therefore we propose the following:

-An International Industrialization Institute should be established to encourage research and development of industrial technology appropriate to developing countries.

-The Energy Commission of the Conference on International Economic Cooperation should establish an International Energy Institute to facilitate energy research and the application of energy-related technologies to the special needs of developing countries.

-We should extend existing networks for applied research in the fields of agriculture, health, and education.

-Satellite technology offers enormous promise as an instrument for development. Remote-sensing satellites can be applied to survey resources, forecast crops, and improve land use in developing countries. They can help to foresee and evaluate natural disasters. Modern communication technologies, including satellites, have large untapped potential to improve education, training, health services, food production, and other activities essential for development. Therefore, from July through October of this year the United States will make available to interested developing countries demonstrations of the various applications for development of the experimental ATS-6 communications satellite, the Landsat remote sensing satellite, and high resolution photography. We are prepared to cooperate with developing countries in establishing centers, training personnel, and where possible, adapting our civilian satellite programs to their needs. -The United States will play a leading role in applying water resources technology to such objectives as improving the quality and productivity of agriculture and developing new industry....

The technology necessary to mine the deep seabed, to manage fisheries, and to exploit the vast potential of the oceans is rapidly being developed. The United States has made major advances in this field. We plan to invite scientists, managers, and technicians from different countries to participate in our scientific projects. And we strongly support provisions in the law of the sea treaty which will provide incentives for sharing of deep-seabed technology appropriate to developing-country needs.

-Finally, there is a pressing need to develop new ways to use technology to improve the basic condition of the poor. The United States is increasing the technical component of its development programs to provide basic nutrition, health, and education services.

The second element of our program is to improve the amount and quality of technological information available to developing countries and to improve their selection of technology relevant to their needs. . . .

Third, to nurture new generations of technologists and technology managers, the United States proposes a priority effort