(1) that there is a need for such property in the quantity requested and that such property is suitable for the purpose requested;

(2) as to the status and responsibility of the designated enduser and his ability effectively to use and maintain such property; and

(3) that the residual value, serviceability, and appearance of such property would not reflect unfavorably on the image of the United States and would justify the costs of packing, crating, handling, transportation, and other accessorial costs, and that the residual value at least equals the total of these costs. Sec. 608.891 Advance Acquisition of Property.—(a) It is the sense of the Congress that in furnishing assistance under part I excess personal property, or (if a substantial savings would occur) other property already owned by an agency of the United States Government, should be utilized wherever practicable in lieu of or supplementary to the procurement of new items for United Statesassisted projects and programs.892 The President is authorized to maintain in a separate account, which shall, notwithstanding section 1210 of the General Appropriation Act, 1951 (64 Stat. 765), be free from fiscal year limitations, $5,000,000 of funds made available under chapter 1 of part 1,893 which may be used to pay costs (including personnel costs) 894 of acquisition, storage, renovation and rehabilitation, packing, crating, handling transportation, and related costs of property classified as domestic or foreign excess property pursuant to the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 471 et seq.), any property available from an agency of the United States Government 895 or other property, in advance of known requirements therefor for use in furtherance of the purposes of part I: Provided, That the amount of property classified as domestic excess property pursuant to the Federal Property and Administrative Services Act of 1949, as amended, held at any one time pursuant to this section shall not

89122 U.S.C. 2358. Title II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005 (division Ď of Public Law 108-447; 118 Stat. 2809), provided the following:

"DEPARTMENT OF STATE

"INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

"For necessary expenses to carry out section 481 of the Foreign Assistance Act of 1961, $328,820,000, to remain available until September 30, 2007: Provided, That during fiscal year 2005, the Department of State may also use the authority of section 608 of the Foreign Assistance Act of 1961, without regard to its restrictions, to receive excess property from an agency of the United States Government for the purpose of providing it to a foreign country under chapter 8 of part I of that Act subject to the regular notification procedures of the Committees on Appropriations: *

*

Sec. 301(b) of the FA Act of 1967 (Public Law 90-137) added this sentence. The phrases within the sentence of "or (if substantial savings would occur) other property already owned by an agency of the United States Government," and "or supplementary to" were added by sec. 701(1) of the International Security and Development Cooperation Act of 1981 (Public Law 97113; 95 Stat. 1544).

Sec. 102(g)2XC) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 942) struck out "section 212" and inserted in lieu thereof "chapter 1 of part I". Sec. 301(c) of the FA Act of 1966 (Public Law 89-583) inserted "(including personnel costs),". *95 Sec. 701(2) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1544) inserted "any property available from an agency of the United States Government,".

exceed $15,000,000 in total original acquisition cost. Property acquired pursuant to the preceding sentence may be furnished (1) pursuant to any provision of part I for which funds are authorized for the furnishing of assistance, in which case the separate account established pursuant to this section shall be repaid from funds made available for such provision for all costs incurred, or (2) pursuant to section 607, in which case such separate account shall be repaid in accordance with the provisions of that section for all costs incurred.

(b) Property classified as domestic excess property under the Federal Property and Administrative Services Act of 1949, as amended, shall not be transferred to the agency primarily responsible for administering part I for use pursuant to the provisions of part I or section 607 unless (1) such property is transferred for use exclusively by an agency of the United States Government, or (2) it has been determined in the same manner as provided for surplus property in section 203(j) of the Federal Property and Administrative Services Act of 1949, as amended, that such property is not needed for donation pursuant to that subsection. The foregoing restrictions shall not apply to the transfer in any fiscal year for use pursuant to the provisions of part I of amounts of such property with a total original acquisition cost to the United States Government not exceeding $45,000,000.

Sec. 609,896 *** [Repealed-1998]

Sec. 610.897 Transfer Between Accounts.-(a) Whenever the President determines it to be necessary for the purposes of this Act,

896 Formerly at 22 U.S.C. 2359. Sec. 533(a)(5) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1999 (division A, sec. 101(d) of Public Law 105-277; 112 Stat. 2681) repealed sec. 609, which had read as follows. See also footnote at sec. 531(d) of this Act.

"Sec. 609. Special Account.-(a) In cases where any commodity is to be furnished on a grant basis under chapter 4 of part I under arrangements which will result in the accrual of proceeds to the recipient country from the sale thereof, the President shall require the recipient country to establish a Special Account, and

"(1) deposit in the Special Account, under terms and conditions as may be agreed upon, currency of the recipient country in amounts equal to such proceeds;

"(2) make available to the United States Government such portion of the Special Account as may be determined by the President to be necessary for the requirements of the United States Government: Provided, That such portion shall not be less than 10 per centum in the case of any country to which such minimum requirement has been applicable under any Act repealed by this Act; and

"(3) utilize the remainder of the Special Account for programs agreed to by the United States Government to carry out the purposes for which new funds authorized by this Act would themselves be available: Provided, That whenever funds from such Special Account are used by a country to make loans, all funds received in repayment of such loans prior to termination of assistance to such country shall be reused only for such purposes as shall have been agreed to between the country and the United States Government. "(b) Any unencumbered balances of funds which remain in the Account upon termination of assistance to such country under this Act shall be disposed of for such purposes as may, subject to approval by Act of the Congress, be agreed to between such country and the United States Government.'

897 22 U.S.C. 2360. Sec. 301(a) of the FA Act of 1962 added subsec. designation “(a)" and subsec. (b).

On September 30, 2004, the President determined "it necessary for the purposes of the act that $24,852,500 made available under Chapter 3 of Part I of the Act for Fiscal Year 2004 be transferred to, and consolidated with, funds made available under Chapter 4 of Part II of the Act, and such funds are hereby transferred and consolidated." (Presidential Determination No. 2004-54; 69 F.R. 60945).

Title V of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005 (division D of Public Law 108-447; 118 Stat. 2809), provided the following:

"TRANSFERS

"SEC. 509. (a)(1) LIMITATION ON TRANSFERS BETWEEN AGENCIES.-None of the funds made available by this Act may be transferred to any department, agency, or instrumentality of the

not to exceed 10 per centum of the funds made available for any provision of this Act (except funds made available pursuant to title IV of chapter 2 of part I or for section 23 of the Arms Export Control Act) 898 may be transferred to, and consolidated with, the funds made available for any 898 provision of this Act, (except funds made available under chapter 2 of part II of this Act) 899 and may be used for any of the purposes for which such funds may be used, except that the total in the provision for the benefit of which the transfer is made shall not be increased by more than 20 per centum of the amount of funds made available for such provision.

(b) 897 The authority contained in this section and in sections 451, 506,900 and 614 shall not be used to augment appropriations made available pursuant to sections 636(g)(1) and 637 or used otherwise to finance activities which normally would be financed from appropriations for administrative expenses. 901

(c) 902 Any funds which the President has notified Congress pursuant to section 653 that he intends to provide in military assistance to any country may be transferred to, and consolidated with, any other funds he has notified Congress pursuant to such section that he intends to provide to that country for development assistance purposes.

Sec. 611.903 Completion of Plans and Cost Estimates.-(a) No agreement or grant which constitutes an obligation of the

United States Government, except pursuant to a transfer made by, or transfer authority provided in, this Act or any other appropriation Act.

"(2) Notwithstanding paragraph (1), in addition to transfers made by, or authorized elsewhere in, this Act, funds appropriated by this Act to carry out the purposes of the Foreign Assistance Act of 1961 may be allocated or transferred to agencies of the United States Government pursuant to the provisions of sections 109, 610, and 632 of the Foreign Assistance Act of 1961.

(b) TRANSFERS BETWEEN ACCOUNTS.-None of the funds made available by this Act may be obligated under an appropriation account to which they were not appropriated, except for transfers specifically provided for in this Act, unless the President, not less than 5 days prior to the exercise of any authority contained in the Foreign Assistance Act of 1961 to transfer funds, consults with and provides a written policy justification to the Committees on Appropriations of the House of Representatives and the Senate.

(c) AUDIT OF INTER-AGENCY TRANSFERS.-Any agreement for the transfer or allocation of funds appropriated by this Act, or prior Acts, entered into between the United States Agency for International Development and another agency of the United States Government under the authority of section 632(a) of the Foreign Assistance Act of 1961 or any comparable provision of law, shall expressly provide that the Office of the Inspector General for the agency receiving the transfer or allocation of such funds shall perform periodic program and financial audits of the use of such funds: Provided, That funds transferred under such authority may be made available for the cost of such audits.".

89Sec. 301 of the FA Act of 1969 (Public Law 91-175) added the parenthetical phrase. Sec. 10(a) of the International Narcotics Control Act of 1990 (Public Law 101-623; 104 Stat. 3356) inserted reference to sec. 23 of the Arms Export Control Act, but, in an enrolling error, this text was inserted inside the parenthesis. Should probably read “* ** for any provision of this Act (except funds made available pursuant to title IV of chapter 2 of part I) or for section 23 of the Arms Export Control Act may be transferred to Sec. 10 of that Act also struck out "other" at the place noted and provided that "(b) The amendments made by subsection (a) apply with respect to funds made available for fiscal year 1991 or any fiscal year thereafter.". 599 Sec. 19(a)(1) of the FA Act of 1974 (Public Law 93-559) added the parenthetical phrase. 900 Sec. 301(c) of the FA Act of 1967 (Public Law 90-137) struck out "510" and inserted in lieu thereof “506".

901 Sec. 10(b)(2) of the International Security Assistance Act of 1978 (Public Law 95-424; 92 Stat. 735) repealed the final sentence of subsec. (b). It formerly read, as amended by the FA Act of 1966, as follows:

"Not to exceed $9,000,000 of the funds appropriated under section 402 of this Act for any fiscal year may be transferred to and consolidated with appropriations made under section 637(a) of this Act for the same fiscal year, subject to the further limitation that funds so transferred shall be available solely for additional administrative expenses incurred in connection with programs in Vietnam.”.

902 Sec. 19(a)(2) of the FA Act of 1974 (Public Law 93-559) added subsec. (c).

903 22 U.S.C. 2361.

United States Government in excess of $500,000 904 under section 1501 of title 31, United States Code,905 shall be made for any assistance authorized under chapter I of part I, title II of chapter 2 of part I, or chapter 4 of part II-906

(1) if such agreement or grant requires substantive technical or financial planning, until engineering, financial, and other plans necessary to carry out such assistance, and a reasonably firm estimate of the cost to the United States Government of providing such assistance, have been completed; and

(2) if such agreement or grant requires legislative action within the recipient country, unless such legislative action may reasonably be anticipated to be completed in time to permit the orderly accomplishment of the purposes of such agreement or grant.

(b) Plans required under subsection (a) of this section for any water or related land resource construction project or program shall include a computation of benefits and costs made insofar as practicable in accordance with the principles, standards, and procedures established pursuant to the Water Resources Planning Act 907 (42 U.S.C. 1962, et seq.) or acts amendatory or supplementary thereto.

(c) To the maximum extent practicable, all contracts for construction outside the United States made in connection with any agreement or grant subject to subsection (a) of this section shall be made on a competitive basis.

(d) Subsection (a) of this section shall not apply to any assistance furnished for the sole purpose of preparation of engineering, financial, and other plans.

(e) 908 In addition to any other requirements of this section, no assistance authorized under chapter 1 of part I, title II of chapter 2 of part I, or chapter 4 of part II 909 shall be furnished with respect to any capital assistance project estimated to cost in excess of $1,000,000 until the head of the agency primarily responsible for administering part I of the Act has received and taken into consideration a certification from the principal officer of such agency in the country in which the project is located as to the capability of the country (both financial and human resources) to effectively maintain and utilize the project taking into account among other

904 Sec. 1208 of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 278), struck out “$100,000" and inserted in lieu thereof "$500,000”. 905 This reference to 31 U.S.C. 1501 replaced an earlier reference to 31 U.S.C. 200. 906 Sec. 102(g)(2)(D) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 943) struck out "titles I, II, and VI of chapter 2 and chapter 4 of part I" and inserted in lieu thereof "chapter 1 of part I, title II of chapter 2 of part I, or chapter 4 of part II".

907 Sec. 1208(2) of Public Law 99-83 (99 Stat. 278) struck out "Principles and Standards for Planning Water and Related Land Resources, dated October 25, 1973" and inserted in lieu thereof "the Water Resources Planning Act". Previously, reference to the 1973 document was substituted in lieu of a reference of the "Memorandum of the President dated May 15, 1962" by sec. 117 of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 365). Previously, sec. 301(c) of the FA Act of 1963 had substituted the reference to the 1962 memorandum in lieu of a reference to "circular A47 of the Bureau of the Budget.". 908 Sec. 301(d) of the FA Act of 1967 (Public Law 90-137) added subsec. (e).

909 Sec. 102(g)(2)(E) of the International Development and Food Assistance Act of 1978 (Public Law 95-424, 92 Stat. 943) struck out "titles I, II, or VI of chapter 2 or chapter 4 of part I" and inserted in lieu thereof "chapter 1 of part I, title 2 of chapter 2 of part I, or chapter 4 of part II".

things the maintenance and utilization of projects in such country previously financed or assisted by the United States.

Sec. 612.910 Use of Foreign Currencies.-(a) Except as otherwise provided in this Act or other Acts, foreign currencies received either (1) as a result of the furnishing of nonmilitary assistance under the Mutual Security Act of 1954, as amended, or any Act repealed thereby and unobligated on the date prior to the effective date of this Act, or (2) on or after the effective date of this Act, as a result of the furnishing of nonmilitary assistance under the Mutual Security Act of 1954, as amended, or any Act repealed thereby, or (3) as a result of the furnishing of assistance under part I, which are in excess of the amounts reserved under authority of section 105(d) of the Mutual Educational and Cultural Exchange Act of 1961 or any other Act relating to educational and cultural exchanges, may be sold by the Secretary of the Treasury to agencies of the United States Government for payment of their obligations outside the United States, and the United States dollars received as reimbursement shall be deposited into miscellaneous receipts of the Treasury. Foreign currencies so received which are in excess of the amounts so reserved and of the requirements of the United States Government in payment of its obligations outside the United States, as such requirements may be determined from time to time by the President, shall be available for the authorized purposes of part I in such amounts as may be specified from time to time in appropriation Acts.

(b) 911 Any Act of Congress making appropriations to carry out programs under this or any other Act for United States operations abroad is hereby authorized to provide for the utilization of United States-owned excess foreign currencies to carry out any such operations authorized by law.

912 As used in this subsection, the term "excess foreign currencies" means foreign currencies or credits owned by or owed to the United States which are, under applicable agreements with the foreign country concerned, available for the use of the United States Government and are determined by the President to be excess to the normal requirements of departments and agencies of the United States for such currencies or credits and are not prohibited from use under this subsection by an agreement entered into with the foreign country concerned.

The President shall take all appropriate steps to assure that, to the maximum extent possible, United States-owned foreign currencies are utilized in lieu of dollars. Dollar funds made available pursuant to this Act shall not be expended for goods and services when United States-owned foreign currencies are available for such

*122 U.S.C. 2362. sec. 301(d)(1) of the FA Act of 1963 (Public Law 88–205) inserted subsec. designation "(a)". See also sec. 529 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005 (division D of Public Law 108 447; 118 Stat. 2809; 22 U.S.C. 2362 note), relating to separate accounts.

911 Sec. 301(c) of the FA Act of 1963 (Public Law 88-205) added subsec. (b) as subsec. (c). Redesignated as subsec. (b) by Public Law 88-638. Former subsec. (b) was moved to Public Law 480 as sec. 104(t), and has subsequently been transferred in part to sec. 103(m) of Public Law 480.

912 Sec. 301(b) of the FA Act of 1965 (Public Law 89-171) struck out "The President shall take all appropriate steps to assure that, to the maximum extent possible, United States-owned excess foreign currencies are utilized in lieu of dollars." at this point.