The Secretary of State has authority to accept on behalf of the United States unconditional and conditional gifts for the benefit of the Department to carry out the functions of the Department. Any gifts of money are deposited in the Treasury to be held in trust for the benefit of the Department and the Foreign Service and need not be appropriated.

(Authority: Public Law 79-724, sec. 1021.)

Foreign Service Act Retirement Fund Payments

1 Permanent authority.

2 Includes $8,055,000 carried in "Administration of Foreign Affairs," page 7.

COMMITTEE COMMENT

The Foreign Service Act requires the Secretary of the Treasury, beginning in 1971, to make annual payments to the retirement fund on a sliding percentage scale of an amount equal to: (1) interest on the unfunded liability, and (2) annuity disbursements attributable to military service.

(Authority: Public Law 79-724, sec. 866.)

This item represents collection of loans made from the diplomatic and consular emergency fund; collection of loans made to the United Nations; payment by Finland of World War I debt; receipts of sale of real property at the International Center, D.C.; Federal contributions to the Foreign Service fund; and receipts from sale and transmission of electricity at Falcon Dam.

U.S. dollars advanced by foreign governments and/or private organizations for Agency use and contributions from non-Federal sources for the procurement and shipping of books to overseas missions. (Authority: Public Law 80-402; sec. 701; 902; Public Law 87-256, sec. 105(f).)

This item represents income from sale of periodicals, sale of obsolete equipment, scrap and salvage proceeds, library fines, and repayment of loans to binational centers.

1 Of which $6 million represents the unappropriated balance of the $36 million authorized by Public Law 94-118 and $1.4 million represents the estimated Trust Fund interest to be appropriated pursuant to permanent authority contained in that act.

COMMITTEE COMMENT

The Japan-United States Friendship Act (Public Act 94-118), which became law on October 20, 1975, created a Trust Fund for cultural, scholarly and artistic purposes. The Fund consists of the remaining GARIOA funds ($12 million in Japanese yen), as well as 71⁄2 percent of the funds being paid to the United States by Japan in connection with the reversion of Okinawa to Japanese administration. Of the total of $36 million authorized under the Trust Fund, a total of $30 million has actually been appropriated. The remaining $6 million of the authorized capital should be appropriated in fiscal year 1977.

In addition, the interest which accrues to the Commission administering the Trust Fund, and which comprises the bulk of its operating funds, is authorized but also requires appropriation. It is estimated that the accrued interest requiring appropriation in fiscal year 1977 is approximately $1.4 million.

These funds are derived from host country contributions and donations by private groups in the United States and are used to support Peace Corps projects abroad.

The program provides the U.S. Government with economic analyses, policy recommendations and negotiating strategies for the successful implementation of international economic policies. The program's role in the development of U.S. international commercial policy is focused principally on promoting U.S. international commerce to insure commercial interest in the development of trade and investment policies. The 1977 request reflects the elimination of the competitive assessment program.

Encourages and assists U.S. businesses to export by conducting market research and trade promotion events overseas, such as trade fairs, trade center shows, trade missions, seminars, and department store promotions of U.S. consumer goods in both developed and emergent markets; by assisting U.S. companies to compete for foreign capital projects and product purchases; and by providing foreign marketing information and "early warnings" of overseas sales leads. Increased resources will provide for the establishment of a trade center in Sao Paulo, Brazil. The 1977 request reflects the elimination of the commercial presence fairs, the closing of two developed market trade centers which are of lower priority than other export promotion activities, and a reduction in the scope of activities at the Frankfurt Trade Center for which other events in the German market will be substituted.

Implements the national program to expand the U.S. trade with the centrally planned markets of the U.S.S.R., Eastern Europe, and the People's Republic of China, and to maintain and normalize commercial and economic relationships with these countries.