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opment assistance by, or under the sponsorship of the United Nations, multilateral lending institutions, and other multilateral organizations may contribute to the efficiency and effectiveness of that assistance through participation of other donors in the development effort, improved coordination of policies and programs, pooling of knowledge, avoidance of duplication of facilities and manpower, and greater encouragement of self-help performance.

(b) 155 It is further the sense of the Congress (1) that where problems or opportunities are common to two or more countries in a region, in such fields as agriculture, education, transportation, communications, power, watershed development, disease control, and establishment of development banks, these countries often can more effectively resolve such problems and exploit such opportunities by joining together in regional organizations or working together on regional programs, (2) that assistance often can be utilized more efficiently in regional programs than in separate country programs, and (3) that to the maximum extent practicable consistent with the purposes of this Act assistance under this Act should be furnished so as to encourage less developed countries to cooperate with each other in regional development programs.

(c) 156 It is the sense of the Congress that the President should increase, to the extent practicable, the funds provided by the United States to multilateral lending institutions and multilateral organizations in which the United States participates for use by such institutions and organizations in making loans to foreign countries.

(d) 157*** [Repealed-2000]

Sec. 211.158 General Authority. *** [Repealed-1978]
Sec. 212.158 Authorization. *** [Repealed-1978]
Sec. 213.159 Atoms for Peace. * *
** [Repealed-1962]

of that assistance through participation of other donors in the development effort, improved coordination of policies and programs, pooling of knowledge, avoidance of duplication of facilities and manpower, and greater encouragement of self-help performance.".

155 The words "Regional Programs.-," which appeared at this point, were struck out by sec. 101(c)(3) of the FA Act of 1971 (Public Law 92-226; 86 Stat. 21).

156 Subsec. (c), which was added by sec. 101(c)(2) of the FA Act of 1971 (Public Law 92-226; 86 Stat. 21), was amended by sec. 311 of Public Law 94-161 (89 Stat. 849). It formerly read as follows: "Notwithstanding any other provision of law, the President should reduce the amounts and numbers of loans made by the United States directly to individual foreign countries with the objective of reducing the total amount of bilateral loans made under this Act so that, by not later than June 30, 1975, such total amount shall not exceed $100,000,000.".

157 Subsection (d), added by sec. 101(c)2) of the FA Act of 1971, was struck out by sec. 804 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2001 (H.R. 5526, as introduced on October 24, 2000, enacted by reference in sec. 101(a) of Public Law 106-429; 114 Stat. 1900A-67). It had read as follows:

"(d) In furtherance of the provisions of subsection (a) of this section, any funds appropriated under this part I may be transferred by the President to the International Development Association, the International Bank for Reconstruction and Development, the International Finance Corporation, the Asian Development Bank or other multilateral lending institutions and multilateral organizations in which the United States participates for the purpose of providing funds to enable any such institution or organization to make loans to foreign countries.".

158 Secs. 211, 212, 215, 216, 217, 218, 220, and 220A were repealed by sec. 102(g)(1)(A) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 942). 159 Sec. 213 was repealed by sec. 103(c) of the FA Act of 1962 (76 Stat. 256).

Title II-American Schools and Hospitals Abroad; Prototype Desalting Plant 160

Sec. 214.161 American Schools and Hospitals Abroad.—(a) The President is authorized to furnish 162 assistance, on such terms and conditions as he may specify, to schools and libraries outside the United States founded or sponsored by United States citizens and serving as study and demonstration centers for ideas and practices of the United States.

(b) The President is authorized,163 notwithstanding the provisions of the Mutual Defense Assistance Control Act of 1951 (22 U.S.C. 1611 et seq.) 164 to furnish 165 assistance, on such terms and conditions as he may specify, to institutions referred to in subsection (a) of this section, and to hospital centers for medical education and research outside the United States, founded or sponsored by United States citizens.166

(c) 167 (1) To carry out the purposes of this section, there are authorized to be appropriated to the President $35,000,000 for fiscal year 1986 and $35,000,000 for fiscal year 1987.

(2) Amounts appropriated under paragraph (1) are authorized to remain available until expended. 168

(d) 169 Notwithstanding the provisions of subsection (b), funds appropriated under this section may be used for assistance to centers for pediatric plastic and reconstructive surgery established by Children's Medical Relief International, except that assistance may not be furnished for the domestic operations of any such center located in the United States, its territories or possessions.

Sec. 215.168 Loans to Small Farmers. * * * [Repealed-1978]
Sec. 216.168 Voluntary Agencies. * * * [Repealed—1978]
Sec. 217.168 Used Equipment. * *
* * * [Repealed—1978]

Sec. 218.168 Fish and Other Protein Concentrates. * * [Repealed-1978]

160 This new title heading was added by sec. 102(g) 1XD) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 942).

161 22 U.S.C. 2174.

162 Sec. 103(b)(1) of the FA Act of 1963 substituted the word "furnish" for the words "use, in addition to other funds available for such purposes, funds made available for the purposes of sec. 211 for".

163 Sec. 103(b)(2) of the FA Act of 1963 struck out the words "to use" which appeared at this point.

164 Superseded by the Export Administration Act of 1979.

165 Sec. 103(b)(2) of the FA Act of 1963 substituted the words "to furnish" for the words "foreign currencies accruing to the United States Government under any Act, for purposes of subsection (2) of this section, and for".

166 Sec. 103(c)1) of the FA Act of 1966 substituted the words to this point, beginning with "to institutions referred to" in lieu of "to hospitals outside the United States founded or sponsored by United States citizens and serving as centers for medical education and research". 167 Sec. 4(2) of the FA Act of 1973 amended and restated subsec. (c).

168 The authorization figures for fiscal years 1986 and 1987 were added by sec. 401 of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 190). Authorizations under sec. 214 for recent years included the following: fiscal year 1975$19,000,000; fiscal year 1976 $25,000,000; fiscal year 1977-$25.000.000; fiscal year 1978$25.000.000; fiscal year 1979-$25,000,000; fiscal year 1980-$25,000,000; fiscal year 1981$30.000.000; fiscal year 1982-$20,000.000; fiscal year 1983-$20,000,000; fiscal year 1984– $30,000,000; fiscal year 1985-no authorization; fiscal years 1988 through 2003—no authoriza

tion.

169 Sec. 1142) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 950) repealed subsecs. (d) and (e) (which had been added by the FA Act of 1973), and redesignated subsec. (f) (which had been added by Public Law 95-88; 91 Stat. 539) as subsec, (d).

Sec. 219.170 Prototype Desalting Plant. (a) In furtherance of purposes of this part and for the purpose of improving existing, and developing and advancing new technology and experience in the design, construction, and operation of large-scale desalting plants of advanced concepts which will contribute materially to low-cost desalination in all countries, including the United States, the President, if he determines it to be feasible, is authorized to participate in the development of a large-scale water treatment and desalting prototype plant and necessary appurtenances to be constructed in Israel as an integral part of a dual-purpose power generating and desalting project. Such participation shall include financial, technical, and such other assistance as the President deems appropriate to provide for the study, design, construction, and, for a limited demonstration period of not to exceed five years, operation and maintenance of the water treatment and desalting facilities of the dual-purpose project.

(b) Any agreement entered into under subsection (a) of this section shall include such terms and conditions as the President deems appropriate to insure, among other things, that all information, products, uses, processes, patents, and other developments obtained or utilized in the development of this prototype plant will be available without further cost to the United States for the use and benefit of the United States throughout the world, and to insure that the United States, its officers and employees have a permanent right to review data and have access to such plant for the purpose of observing its operations and improving science and technology in the field of desalination.

(c) In carrying out the provisions of this section, the President may enter into contracts with public or private agencies and with any person without regard to sections 3648 and 3709 of the Revised Statutes of the United States (31 U.S.C. 529 and 41 U.S.C. 5).

(d) Nothing in this section shall be construed as intending to deprive the owner of any background patent or any right which such owner may have under that patent.

(e) In carrying out the provisions of this section, the President may utilize the personnel, services, and facilities of any Federal agency.

(f) The United States costs, other than its administrative costs, for the study, design, construction, and operation of a prototype plant under this section shall not exceed either 50 per centum of the total capital costs of the facilities associated with the production of water, and 50 per centum of the operation and maintenance costs for the demonstration period, or $20,000,000, whichever is less. There are authorized to be appropriated, subject to the limitations of this subsection, such sums as may be necessary to carry out the provisions of this section, including administrative costs thereof. Such sums are authorized to remain available until expended.

(g) No funds appropriated for the Office of Saline Water pursuant to the appropriation authorized by the Act of July 11, 1969 (83

17022 U.S.C. 2179. Sec. 219 was added by sec. 104 of the FA Act of 1969 (Public Law 91175; 83 Stat. 806).

Stat. 45, Public Law 91-43), or prior authorization Acts, shall be used to carry out the purposes of this section.

Sec. 220.168 Programs for Peaceful Communication. *** [Repealed-1978]

Sec. 220A.168 Suez Canal. * * * [Repealed-1978]

Title III-Housing and Other Credit Guaranty Programs 171

Sec. 221.172 Housing Guaranties.-The Congress recognizes that shelter, including essential urban development services, is 173 among the most fundamental of human needs. Shelter for most people in the developing countries consists largely of domestic materials assembled by local labor. While recognizing that most financing for such shelter 174 must come from domestic resources, the Congress finds that carefully designed programs involving United States capital and expertise can increase the availability of domestic financing for improved shelter 174 and related services for low-income people by demonstrating to local entrepreneurs and institutions that providing low-cost shelter 174 can be financially viable. The Congress reaffirms, therefore, that the United States should continue to assist developing countries in marshalling resources for low-cost shelter. 174 Particular attention should be given to programs which will support pilot projects for low-cost shelter or which will have a maximum demonstration impact on local institutions and national policy. The Congress declares that the long run goal of all such programs should be to develop domestic construction capabilities and to stimulate local credit institutions to make available domestic capital and other management and technological resources required for effective low-cost shelter programs and policies.

Sec. 222.175 Authorization. (a) To carry out the policy of section 221, the President is authorized to issue guaranties to eligible investors (as defined in section 238(c)) assuring against losses incurred in connection with loans made for projects meeting the criteria set forth in section 221. The total principal amount of guaranties issued under this title or heretofore issued under prior housing guaranty authorities, which are outstanding at any one time, shall not exceed $2,558,000,000.176 The authority of this section shall

171 Title III was added by sec. 105 of the FA Act of 1969. Sec. 8(a)(1) of the FA Act of 1974 substituted the title heading "Housing and Other Credit Guaranty Programs" in lieu of "Housing Guaranties".

172 22 U.S.C. 2181. Sec. 221, which was added by the FA Act of 1969, was amended and restated by sec. 115(a) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 950).

173 The words "including essential urban development services, is" were inserted in lieu of the words "requirements are" by sec. 541(a) of the Foreign Assistance Appropriations Act, 1985, as contained in the Continuing Appropriations Act, 1985 (Public Law 98 473; 98 Stat. 1903). This amendment had been included as sec. 311(a)(1) of H.R. 5119, the International Security and Development Cooperation Act of 1984, as passed by the House on May 10, 1984. Sec. 541(a) enacted sec. 311 of H.R. 5119.

174 The word "shelter" was inserted in lieu of the word "housing" by sec. 541(a) of the Foreign Assistance Appropriations Act, 1985, as contained in the Continuing Appropriations Act, 1985 (Public Law 98-473; 98 Stat. 1903). This amendment had been included as sec. 311(a)(2) of H.R. 5119, the International Security and Development Cooperation Act of 1984, as passed by the House on May 10, 1984. Sec. 541(a) enacted sec. 311 of H.R. 5119.

175 22 U.S.Č. 2182. Sec. 222, which was added by the FA Act of 1969 and had concerned housing projects in Latin American countries, was amended and restated by sec. 115(a) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 950).

176 This figure was increased from $2,158,000,000 by title II, chapter III, of the Dire Emergency Supplemental Appropriations for 1990 (Public Law 101-302; 104 Stat. 224). This figure was previously increased from $1,958,000,000 by sec. 313(a) of the International Security and

continue through September 30, 1992.177 The President may issue regulations from time to time with regard to the terms and conditions upon which such guaranties shall be issued and the eligibility of lenders.

(b) Activities carried out under this section shall emphasize(1) projects which provide improved home sites to poor families on which to build shelter, and related services;

(2) projects comprised of expandable core shelter units on serviced sites;

(3) slum upgrading projects designed to conserve and improve existing shelter;

Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 190); and from $1,718,000,000 by sec. 541(a) of the Foreign Assistance Appropriations Act, 1985, as contained in the Continuing Appropriations Act, 1985 (Public Law 98-473; 98 Stat. 1903). This amendment had been included as sec. 311(b)(1) of H.R. 5119, the International Security and Development Cooperation Act of 1984, as passed by the House on May 10, 1984. Sec. 541(a) enacted sec. 311 of H.R. 5119. Previously, the amount was raised from $1,555,000,000 to $1,718,000,000 by sec. 310(a) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1535) and from $1,180,000,000 to $1,155,000,000 by sec. 112(a)(1) of Public Law 96-53 (93 Stat. 363).

Congress did not enact an authorization for fiscal year 2003. Instead, the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2003 (division E of Public Law 108-7), waived the requirements for authorization and title II of that Act (at 117 Stat. 164) provided the following:

"DEVELOPMENT CREDIT PROGRAM ACCOUNT

"(INCLUDING TRANSFER OF FUNDS)

"For the cost of direct loans and loan guarantees, as authorized by sections 108 and 635 of the Foreign Assistance Act of 1961, funds may be derived by transfer from funds appropriated by this Act to carry out part I of such Act and under the heading 'Assistance for Eastern Europe and the Baltic States': Provided, That such funds when added to the funds transferred pursuant to the authority contained under this heading in Public Law 107-115, shall not exceed $24,500,000, which shall be made available only for micro and small enterprise programs, urban programs, and other programs which further the purposes of part I of the Act: Provided further, That such costs shall be as defined in section 502 of the Congressional Budget Act of 1974: Provided further, That the provisions of section 107A(d) (relating to general provisions applicable to the Development Credit Authority) of the Foreign Assistance Act of 1961, as contained in section 306 of H.R. 1486 as reported by the House Committee on International Relations on May 9, 1997, shall be applicable to direct loans and loan guarantees provided under this heading. In addition, for administrative expenses to carry out credit programs administered by the United States Agency for International Development, $7,591,000, which may be transferred to and merged with the appropriation for Operating Expenses of the United States Agency for International Development: Provided further, That funds made available under this heading shall remain available until September 30, 2007.".

See notes at paragraph on Development Credit Program Account in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2002, this volume, for text of sec. 306 of H.R. 1486.

177 Title II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2000 (H.R. 3422, as introduced on November 17, 1999, enacted by reference in sec. 1000(a)(2) of Public Law 106-113; 113 Stat. 1535), under the heading "Urban and Environmental Credit Program Account", waived the second and third sentences of this subsec. for fiscal year 2000, which in effect lifted the ceiling on the outstanding principal amount of guaranties, and continued the authority contained in the section.

Previously, the authority of this section was extended to September 30, 1992, from Sept. 30, 1991, by title II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101-513; 104 Stat. 1989). Previously the authority was extended from Sept. 30, 1990, by title II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990 (Public Law 101-167; 103 Stat. 1205); from Sept. 30, 1989, by title II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988 (sec. 101(e) of the Continuing Appropriations for 1988, Public Law 100-202; 101 Stat. 1329); from Sept. 30, 1986, by sec. 313(b) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 190).

The authority of this section was previously extended from Sept. 30, 1984, by sec. 541(a) of the Foreign Assistance Appropriations Act, 1985 as contained in the Continuing Appropriations Act, 1985 (Public Law 98-473; 98 Stat. 1903). This amendment had been included as sec. 311(b)(2) of H.R. 5119, the International Security and Development Cooperation Act of 1984, as passed by the House on May 10, 1984. Sec. 541(a) enacted sec. 311 of H.R. 5119. This authority had been extended previously from Sept. 30, 1982, by sec. 310(a) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1535); and from Sept. 30, 1980, by sec. 112(a)(2) of Public Law 96-53 (93 Stat. 364).

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