Sec.

620.932 Prohibitions Against Furnishing Assistance.933-(a)(1)934 No assistance shall be furnished under this Act to the present government of Cuba.935 As an additional means of implementing and carrying into effect the policy of the preceding

932 22 U.S.C. 2370. Sec. 204 of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 (Public Law 104-114; 110 Stat. 810; 22 U.S.C. 6064) provided the following:

"SEC. 204. TERMINATION OF THE ECONOMIC EMBARGO OF CUBA.

“(a) PRESIDENTIAL ACTIONS.-Upon submitting a determination to the appropriate congressional committees under section 203(c)(1) that a transition government in Cuba is in power, the President, after consultation with the Congress, is authorized to take steps to suspend the economic embargo of Cuba and to suspend the right of action created in section 302 with respect to actions thereafter filed against the Cuban Government, to the extent that such steps contribute to a stable foundation for a democratically elected government in Cuba.

"(b) SUSPENSION OF CERTAIN PROVISIONS OF LAW.-In carrying out subsection (a), the President may suspend the enforcement of

“(1) section 620(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2370(a));

"(2) section 620(f) of the Foreign Assistance Act of 1961 (22 U.S.C. 2370(f)) with respect to the "Republic of Cuba";

"(3) sections 1704, 1705(d), and 1706 of the Cuban Democracy Act of 1992 (22 U.S.C. 6003, 6004(d), and 6005);

"(4) section 902(c) of the Food Security Act of 1985; and

“(5) the prohibitions on transactions described in part 515 of title 31, Code of Federal Regulations.

(c) ADDITIONAL PRESIDENTIAL ACTIONS.-Upon submitting a determination to the appropriate congressional committees under section 203(c)(3) that a democratically elected government in Cuba is in power, the President shall take steps to terminate the economic embargo of Cuba, including the restrictions under part 515 of title 31, Code of Federal Regulations.

"(d) CONFORMING AMENDMENTS.-On the date on which the President submits a determination under section 203(c)(3)—

“(1) section 620(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2370(a)) is repealed; "(2) section 620(f) of the Foreign Assistance Act of 1961 (22 U.S.C. 2370(f)) is amended by striking "Republic of Cuba";

"(3) sections 1704, 1705(d), and 1706 of the Cuban Democracy Act of 1992 (22 U.S.C. 6003, 6004(d), and 6005) are repealed; and

"(4) section 902(c) of the Food Security Act of 1985 is repealed.

e) REVIEW OF SUSPENSION OF ECONOMIC EMBARGO.

"(1) REVIEW.-If the President takes action under subsection (a) to suspend the economic embargo of Cuba, the President shall immediately so notify the Congress. The President shall report to the Congress no less frequently than every 6 months thereafter, until he submits a determination under section 203(c)(3) that a democratically elected government in Cuba is in power, on the progress being made by Cuba toward the establishment of such a democratically elected government. The action of the President under subsection (a) shall cease to be effective upon the enactment of a joint resolution described in paragraph (2). (2) JOINT RESOLUTIONS.-For purposes of this subsection, the term 'joint resolution' means only a joint resolution of the 2 Houses of Congress, the matter after the resolving clause of which is as follows: That the Congress disapproves the action of the President under section 204(a) of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 to suspend the economic embargo of Cuba, notice of which was submitted to the Congress on ., with the blank space being filled with the appropriate date.

*(3) REFERRAL TO COMMITTEES.-Joint resolutions introduced in the House of Representatives shall be referred to the Committee on International Relations and joint resolutions introduced in the Senate shall be referred to the Committee on Foreign Relations.

"(4) PROCEDURES.—(A) Any joint resolution shall be considered in the Senate in accordance with the provisions of section 601(b) of the International Security Assistance and Arms Export Control Act of 1976.

(B) For the purpose of expediting the consideration and enactment of joint resolutions, a motion to proceed to the consideration of any joint resolution after it has been reported by the appropriate committee shall be treated as highly privileged in the House of Representatives.

(C) Not more than 1 joint resolution may be considered in the House of Representatives and the Senate in the 6-month period beginning on the date on which the President notifies the Congress under paragraph (1) of the action taken under subsection (a), and in each 6month period thereafter.".

933 Sec. 301(d)(1) of the FA Act of 1965 (Public Law 89-171) struck out "Prohibitions Against Furnishing Assistance to Cuba and Certain Other Countries.-" and inserted in heu thereof "Prohibitions Against Furnishing Assistance.—”.

34 Sec. 301(e)(1)(A) of the FA Act of 1963 (Public Law 88–205) inserted "(1)" after subsec. (a). 935 Sec. 123(a)(1) of the International Development and Food Assistance Act of 1977 (Public Law 95-88; 91 Stat. 541) struck out "; nor shall any such assistance be furnished to any country which furnishes assistance to the present government of Cuba unless the President determines that such assistance is in the national interest of the United States", at this point.

sentence, the President is authorized to establish and maintain a total embargo upon all trade between the United States and Cuba. (2)936 Except as may be deemed necessary by the President in the interest of the United States, no assistance shall be furnished under this Act to any government of Cuba, nor shall Cuba be entitled to receive any quota authorizing the importation of Cuban sugar into the United States or to receive any other benefit under any law of the United States, until the President determines that such government has taken appropriate steps according to international law standards to return to United States citizens, and to entities not less than 50 per centum beneficially owned by United States citizens, or to provide equitable compensation to such citizens and entities for property taken from such citizens and entities on or after January 1, 1959, by the Government of Cuba. (b) 937*** [Repealed-1981]

(c) 938 No assistance shall be provided under this Act to the government of any country which is indebted to any United States citizen or person for goods or services furnished or ordered where (i) such citizen or person has exhausted available legal remedies, which shall include arbitration, or (ii) the debt is not denied or contested by such government, or (iii) such indebtedness arises under an unconditional guaranty of payment given by such government, or any predecessor government, directly or indirectly, through any controlled entity: Provided, That the President does not find such action contrary to the national security.

(d) No assistance shall be furnished on a loan basis under chapter 1 of part 1939 of this Act for construction or operation of any productive enterprise in any country where such enterprise will compete with United States enterprise unless such country has agreed that it will establish appropriate procedures to prevent the exportation for use or consumption in the United States of more than 20 per centum of the annual production of such facility during the life of the loan. In case of failure to implement such agreement by the other contracting party, the President is authorized to establish necessary import controls to effectuate the agreement. The restrictions imposed by or pursuant to this subsection may be waived by the President where he determines that such waiver is in the national security interest.

936 Sec. 301(e)(1)(B) of the FA Act of 1963 (Public Law 88-205) added paras. (2) and (3). Para. (3), restricting shipments to Cuba, was subsequently repealed by sec. 123(a)(2) of the International Development and Food Assistance Act of 1977 (Public Law 95-88; 91 Stat. 541).

937 Sec. 734(a)(1) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1560) repealed subsec. (b). It previously read as follows:

"(B) No assistance shall be furnished under this Act to the government of any country unless the President determines that such country is not dominated or controlled by the international Communist movement.".

938 Sec. 301(d)(2) of the FA Act of 1962 (Public Law 87-565) amended and restated subsec. (c). It formerly read as follows:

"(c) No assistance shall be provided under this Act to the government of any country which is indebted to any United States citizen for goods or services furnished, where such citizen has exhausted available legal remedies and the debt is not denied or contested by such government.".

939 Sec. 102(g)(2)(F) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 943) struck out "under section 201" and inserted in lieu thereof "on a loan basis under chapter 1 of part I".

(e) 940 (1)941 The President shall suspend assistance to the government of any country to which assistance is provided under this or any other Act when the government of such country or any government agency or subdivision within such country on or after January 1, 1962

(A) 942 has nationalized or expropriated or seized ownership or control of property owned by any United States citizen or by any corporation, partnership, or association not less than 50 per centum beneficially owned by United States citizens, or

(B) 942 has taken steps to repudiate or nullify existing contracts or agreements with any Ünited States citizen or any corporation, partnership, or association not less than 50 per centum beneficially owned by United States citizens, or

(C) 942 has imposed or enforced discriminatory taxes or other exactions, or restrictive maintenance or operational conditions, or has taken other actions, which have the effect of nationalizing, expropriating, or otherwise seizing ownership or control of property so owned,

and such country, government agency, or government subdivision fails within a reasonable time (not more than six months after such action, or, in the event of a referral to the Foreign Claims Settlement Commission of the United States within such period as provided herein, not more than twenty days after the report of the Commission is received) to take appropriate steps, which may include arbitration, to discharge its obligations under international law toward such citizen or entity, including speedy compensation for such property in convertible foreign exchange, equivalent to the full value thereof, as required by international law, or fails to take steps designed to provide relief from such taxes, exactions, or conditions, as the case may be; and such suspension shall continue until the President is satisfied that appropriate steps are being taken, and the provisions of this subsection shall not be waived with respect to any country unless the President determines and certifies that such a waiver is important to the national interests of the United States. Such certification shall be reported immediately to Congress.943

Upon request of the President (within seventy days after such action referred to in subparagraphs (A), (B), or (C) of paragraph (1)944 of this section), the Foreign Claims Settlement Commission of the United States (established pursuant to Reorganization Plan

Sec. 301(d)(3) of the FA Act of 1962 (Public Law 87-565) added subsec. (e). Subsequently amended by sec. 301(e)(2) of the FA Act of 1963 (Public Law 88-205) and by secs. 301(d)1) and (2. of the FA Act of 1964 (Public Law 88-633).

S41 Subsec. (e)1) is popularly referred to as the Hickenlooper amendment. Sec. 301(d)(1) of the FA Act of 1964 (Public Law 88-633) added para. designation “(1)”.

Sec. 5(b) of the Africa Famine Relief and Recovery Act of 1985 (Public Law 99-8; 99 Stat. 22 permitted assistance with funds appropriated by the Act without regard to sec. 620(e)(1). For text, see Legislation on Foreign Relations Through 2004, vol. I-B.

42 Sec. 301(dX2) of the FA Act of 1964 (Public Law 88-633) redesignated subparas. (1), (2), and (3) as subparas. (A), (B), and (C), respectively.

943 Sec. 15 of the FA Act of 1973 (Public Law 93-189) struck out "no other provision of this Act shall be construed to authorize the President to waive the provisions of this subsection" and inserted in lieu thereof "the provisions of this subsection shall not be waived with respect to any country unless the President determines and certifies that such a waiver is important to the national interests of the United States. Such certification shall be reported immediately to Congress".

Sec. 301(dX3) of the FA Act of 1964 (Public Law 88-633) struck out "paragraphs (1), (2), or (3)" and inserted in lieu thereof “subparagraphs (A), (B), or (C) of paragraph (1)”.

No. 1 of 1954, 68 Stat. 1279) is hereby authorized to evaluate expropriated property, determining the full value of any property nationalized, expropriated, or seized, or subject to discriminatory or other actions as aforesaid, for purposes of this subsection and to render an advisory report to the President within ninety days after such request. Unless authorized by the President, the Commission shall not publish its advisory report except to the citizen or entity owning such property. There is hereby authorized to be appropriated such amount, to remain available until expended, as may be necessary from time to time to enable the Commission to carry out expeditiously its functions under this subsection.

(2)945 Notwithstanding any other provision of law, no court in the United States shall decline on the ground of the federal act of state doctrine to make a determination on the merits giving effect to the principles of international law in a case in which claim of title or other right to property 946 is asserted by any party including a foreign state (or a party claiming through such state) based upon (or traced through) a confiscation or other taking after January 1, 1959, by an act of that state in violation of the principles of international law, including the principles of compensation and the other standards set out in this subsection: Provided, That this subparagraph shall not be applicable (1) in any case in which an act of a foreign state is not contrary to international law or with respect to a claim of title or other right to property acquired pursuant to an irrevocable letter of credit of not more than 180 days duration issued in good faith prior to the time of the confiscation or other taking, or (2) in any case with respect to which the President determines that application of the act of state doctrine is required in that particular case by the foreign policy interests of the United States and a suggestion to this effect is filed on his behalf in that case with the court.947

945 Sec. 301(d)4) of the FA Act of 1964 (Public Law 88-633) added para. (2).

946 Sec. 301(d)2) of the FA Act of 1965 (Public Law 89-171) inserted "to property".

947 Sec. 301(d)2) of the FA Act of 1965 (Public Law 89-171) struck out “, or (3) in any case in which the proceedings are commenced after January 1, 1966" at this point.

Sec. 527 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103-236; 22 U.S.C. 2370a), however, provided the following:

“SEC. 527. EXPROPRIATION OF UNITED STATES PROPERTY.

"(a) PROHIBITION. -None of the funds made available to carry out this Act, the Foreign Assistance Act of 1961, or the Arms Export Control Act may be provided to a government or any agency or instrumentality thereof, if the government of such country (other than a country described if subsection (d))

"(1) has on or after January 1, 1956–

“(A) nationalized or expropriated the property of any United States person,
"(B) repudiated or nullified any contract with any United States person, or

"(C) taken any other action (such as the imposition of discriminatory taxes or other exactions) which has the effect of seizing ownership or control of the property of any United States person, and

"(2) has not, within the period specified in subsection (c), either

"(A) returned the property,

"(B) provided adequate and effective compensation for such property in convertible foreign exchange or other mutually acceptable compensation equivalent to the full value thereof, as required by international law,

"(C) offered a domestic procedure providing prompt, adequate and effective compensation in accordance with international law, or

"(D) submitted the dispute to arbitration under the rules of the Convention for the Settlement of Investment Disputes or other mutually agreeable binding international arbitration procedure.

"(b) OTHER ACTIONS.-The President shall instruct the United States Executive Directors of each multilateral development bank and international financial institution to vote against any loan or other utilization of the funds of such bank or institution for the benefit of any country

(f) 948 (1)949 No assistance shall be furnished under this Act, as amended (except section 214(b)), to any Communist country. This restriction may not be waived pursuant to any authority contained in this Act unless the President finds and promptly reports to Congress that: (A) such assistance is vital to the security of the United Štates; (B) the recipient country is not controlled by the international Communist conspiracy; and (C) such assistance will further promote the independence of the recipient country from international communism. For the purposes of this subsection, the phrase "Communist country" includes specifically, but is not limited to, the following countries: 950

to which assistance is prohibited under subsection (a), unless such assistance is directed specifically to programs which serve the basic human needs of the citizens of that country.

c) PERIOD FOR SETTLEMENT OF CLAIMS.-The period of time described in subsection (a)(2) is the latest of the following

"(1) 3 years after the date on which a claim was filed,

"(2) in the case of a country that has a totalitarian or authoritarian government at the time of the action described in subsection (a)(1), 3 years after the date of installation of a democratically elected government, or

"(3) 90 days after the date of enactment of this Act.

(d) EXCEPTED COUNTRIES AND TERRITORIES.-This section shall not apply to any country established by international mandate through the United Nations or to any territory recognized by the United States Government to be in dispute.

"(e) RESUMPTION OF ASSISTANCE.-A prohibition or termination of assistance under subsection (a) and an instruction to vote against loans under subsection (b) shall cease to be effective when the President certifies in writing to the Speaker of the House of Representatives and to the Committee on Foreign Relations of the Senate that such government has taken one of the steps described in subsection (a)(2).

(f) REPORTING REQUIREMENT.-Not later than 90 days after the date of enactment of this Act and at the beginning of each fiscal year thereafter, the Secretary of State shall transmit to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate, a report containing the following:

"(1) A list of every country in which the United States Government is aware that a United States person has an outstanding expropriation claim.

"(2) The total number of such outstanding expropriation claims made by United States persons against each such country.

(3) The period of time in which each such claim has been outstanding.

"(4) The status of each case and efforts made by the United States Government and the government of the country in which such claim has been made, to take one or more of the steps described in subsection (a)(2).

(5) Each project a United States Executive Director voted against as a result of the action described in subsection (b).

g) WAIVER.-The President may waive the prohibitions in subsections (a) and (b) for a country, on an annual basis, if the President determines and so notifies Congress that it is in the national interest to do so.

h) DEFINITIONS. -For the purpose of this section, the term "United States person" means a United States citizen or corporation, partnership, or association at least 50 percent beneficially owned by United States citizens.".

948 Sec. 301(d)(3) of the FA Act of 1962 (Public Law 87-565) added subsec. (f).

Sec. 516 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), amended sec. 307 of this Act to include a reference to sec. 620(f).

949 Sec. 1202 of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 276) redesignated clauses (1), (2), and (3) as (A), (B), and (C); added the text of para. (2); and added the "(1)" designation immediately after subsec. (f).

The Secretary of State determined the following countries to be removed from the application of section 620(f/2) pursuant to national interests of the United States: People's Republic of China and Tibet, removed December 11, 1985 (51 F.R. 1890; January 15, 1986); Yugoslavia, removed August 5, 1986 (51 F.R. 29662; August 19, 1986); Poland and Hungary, removed Sept. 7, 1989 (Department of State memoranda to Chairman, House Committee on Foreign Affairs, Sept. 7, 1989); Czech and Slovak Federal Republic, removed June 14, 1990 (55 F.R. 24335; June 15, 1990); German Democratic Republic, removed July 12, 1990 (55 F.R. 33996; August 20, 1990), Republic of Bulgaria, removed May 3, 1991 (56 F.R. 22747; May 16, 1991); Soviet Union, removed September 10, 1991 (56 F.R. 51734; October 15, 1991); Estonia, Latvia, and Lithuania, removed September 14, 1991 (56 F.R. 48600; September 25, 1991); Romania, removed August 15, 1991 (56 F.R. 63753; December 5, 1991); Laos, removed May 12, 1995 (60 F.R. 30148; June 7, 1995), Vietnam, removed sometime in 2000 (undated unpublished determination).

960 Sec. 573 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1995 (Public Law 103-306; 108 Stat. 1653), struck the Mongolian People's Republic from the list.

Continued