Section 101. Statement of Policy. Chapter 2. Development assistance.. Title I. Development Loan Fund. Section 102(a). Authorization_ Section 102(b). Encouragement of private Title II. Technical cooperation and development Chapter 3. International organizations and programs.. Section 107(a). Indus Basin development. Section 107(b). United Nations development pro- gram. Chapter 2. Military assistance_- Section 201(a). Authorization___ Section 201(b). Reimbursements. Section 201(c). Special authority.. SECTION-BY-SECTION ANALYSIS OF DRAFT BILL 1. Purposes of the bill I. INTRODUCTION The proposed legislation to amend further the Foreign Assistance Act of 1961, as amended (the "bill"), has two principal purposes. First, it authorizes new appropriations for fiscal years 1967 through 1971 for development loans and the Alliance for Progress and new appropriations for fiscal year 1967 for technical cooperation and development grants, American schools and hospitals abroad, southeast Asia multilateral and regional programs, international organizations and programs, supporting assistance, contingency fund, the military assistance program and AID administrative expenses. Second, it effects certain substantive amendments in the Foreign Assistance Act of 1961, as amended (the "act"). 2. Authorizations Pt. I: Authorization Appropriation request, fiscal year 1967 Ch. 2, Development assistance: Title I: Development Loan Fund: Sec. 202(a), authorization...1$1,250, 000, 000 Technical cooperation, development grants: Sec. 212, author- American schools and hospitals abroad: Sec. 214(c), author- Title VI: Alliance for Progress loans: Sec. 252, authorization.. Title VIII: Southeast Asia multilateral and regional programs: Total appropriation request, ch. 2. Ch. 3, International organizations and programs: Grants: Sec. 302(a), authorization... 231, 310, 000 10,989,000 1750, 000, 000 1 100, 000, 000 $665, 388, 000 231, 310,000 10,989,000 455, 300, 000 87,700,000 1,450, 687, 000 Loans, Indus Basin development: Sec. 302(b), authorization. Authorization is for each of the 5 fiscal years 1967 through 1971. ? Sec. 106 of the bill would amend the act by adding a new title VIII, including a new sec. 273. Authorization is for such amounts as may be necessary. This authorization is for use beginning in fiscal year 1968. 'An authorization of such amounts as may be necessary is now contained in the act. The act now contains a permanent authorization for appropriations for certain administrative expenses of the Department of State relating to functions under the act (sec. 637(b)). The bill provides for increased ceilings on specific risk and extended risk guaranties and extends the termination date for the authority to issue extended risk and Latin American housing project guaranties. II. PROVISIONS OF THE BILL PART I CHAPTER 1. POLICY Section 101. Statement of policy This section amends section 102 of the act by striking the word "surplus" from the phrase "surplus agricultural commodities" in the seventh paragraph. This amendment reflects the change in emphasis in the food aid program from the concept of disposal of surplus agricultural commodities to the concept of using the abundant agricultural productivity of the United States to encourage economic development and improved agricultural production in the developing countries. CHAPTER 2. DEVELOPMENT ASSISTANCE Title I. Development Loan Fund Section 102(a). Authorization This section amends section 202(a) of the act, which relates to the authorization for the Development Loan Fund, by substituting for the obsolete authorization for the fiscal years 1962 through 1966 an authorization of $1.25 billion for each of the 5 fiscal years 1967 through 1971. The previous authorization for the Development Loan Fund also was for a 5-year period. Section 102(b). Encouragement of private enterprise This section amends the second proviso to section 202(a) of the act to make that proviso applicable to the fiscal years 1967 through 1971, respectively. The proviso requires that not less than 50 percent of the funds appropriated for the Development Loan Fund shall be available for loans made to encourage economic development through private enterprise. Title II. Technical cooperation and development grants Section 103(a). American Educational and Research Institutions This section amends section 211 of the act, which relates to the general authority for technical cooperation and development grants, by adding a new subsection (d). The purpose of this amendment is to clarify AID's authority to support longer-range programs undertaken by U.S. colleges, universities, and research institutions in fields related to the economic and social development of less developed countries and areas. Under the authority of section 211 of the act, AID assists educational institutions to develop technical resources in vital fields of development upon which AID can draw, where there is a direct relationship between support of such institutions and known program needs. This amendment would make it clear that this authority |