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by the United States), complete, administer, remodel and convert, dispose of, lease, and otherwise deal with, such property: Provided, That any such acquisition of real property shall not deprive any State or political subdivision thereof of its civil or criminal jurisdiction in and over such property or impair the civil rights under the State or local laws of the inhabitants on such property; (4) sell or exchange at public or private sale, or lease, real or personal property, and sell or exchange any securities or obligations, upon such terms as he may fix; (5) subject to the specific limitations in this title, consent to the modification, with respect to the rate of interest, time of payment of any installment of principal or interest, security, or any other term of any contract or agreement to which he is a party or which has been transferred to him pursuant to this section; and (6) include in any contract or instrument made pursuant to this title such other covenants, conditions, or provisions (including provisions designed to assure against use of the facility, constructed with the aid of a loan under this title, for purposes described in section 401(a)(2)) as he may deem necessary to assure that the purposes of this title will be achieved. TITLE IV—GENERAL PROVISIONS DEFINITIONS

Ante, p. 169.

SEC. 401. As used in this Act— (a)(1) Except as provided in subparagraph (2) of this paragraph, the term "academic facilities" means structures suitable for use as classrooms, laboratories, libraries, and related facilities necessary or appropriate for instruction of students, or for research, or for administation of the educational or research programs, of an institution of higher education, and maintenance, storage, or utility facilities essential to operation of the foregoing facilities. (2) The term "academic facilities" shall not include (A) any facility intended primarily for events for which admission is to be charged to the general public, or (B) any gymnasium or other facility specially designed for athletic or recreational activities, other than for an academic course in physical education or where the Commissioner finds that the physical integration of such facilities with other academic facilities included under this Act is required to carry out the objectives of this Act, or (C) any facility used or to be used for sectarian instruction or as a place for religious worship, or (D) any facility which (although not a facility described in the preceding clause) is used or to be used primarily in connection with any part of the program of a school or department of divinity, or (E) any facility used or to be used by a "school of medicine", "school of dentistry", "school of osteopathy", "school of pharmacy", "school of optometry", "school of podiatry", "school of nursing", or "school o£ public health", as defined in section 724 of the Public Health Service Act. For the purposes of this subparagraph, the term "school or department of divinity" means an institution, or a department or branch of an institution, whose program is specifically for the education of students to prepare them to become ministers of religion or to enter upon some other religious vocation or to prepare them to teach theological subjects. (b)(1) The term "construction" nieans (A) erection of new or expansion of existing structures, and the acquisition and installation of initial equipment therefor; or (B) acquisition of existing structures not owned by the institution involved; or (C) rehabilitation, altera-

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tion, conversion, or improvement (including the acquisition and installation of initial equipment, or modernization or replacement of built-in equipment) of existing structures; or (D) a combination of any two or more of the foregoing. (2) The term "equipment" includes, in addition to machinery, utilities, and built-in equipment and any necessary enclosures or structures to house them, all other items necessary for the functioning of a particular facility as an academic facility, including necessary furniture, except books, curricular and program materials, and items of current operating expense such as fuel, supplies, and the like; the term "initial equipment" means equipment acquired and installed in connection with construction as defined in paragraph (1)(A) or (B) of this subsection or, in cases referred to in paragraph (1)(C), equipment acquired and installed as part of the rehabilitation, alteration, conversion, or improvement of an existing structure which structure would otherwise not be adequate for use as an academic facility; and the terms "equipment", "initial equipment", and "built-in equipment" shall be more particularly defined by the Commissioner by regulation. (c) The term "development cost", with respect to an academic facility, means the amount found by the Commissioner to be the cost, to the applicant for a grant or loan under this Act, of the construction involved and the cost of necessary acquisition of the land on which the facility is located and of necessary site improvements to permit its use for such facility, but excluding any cost incurred before, or under a contract entered into before, the enactment of this Act. There shall further be excluded from the development cost— (1) in determining the amount of any grant under title I or II of this Act, an amount equal to the sum of (A) any Federal grant which the institution has obtained, or is assured of obtaining, under any law other than this Act, with respect to the construction that is to be financed with the aid of a grant under title I or II of this Act, and (B) the amount of any non-Federal funds required to be expended as a condition of such other Federal grant; and (2) in determining the amount of any loan under title III of this Act, an amount equal to the amount of any Federal financial assistance which the institution has obtained, or is assured of obtaining, under any law other than this Act, with respect to the construction that is to be financed with the aid of a loan under title III of this Act; (d) The term "Federal share" means, in the case of a project for an institution of higher education other than a public community college or public technical institute, a percentage (as determined under the applicable State plan) not in excess of 33i/^ per centum of its development cost; and such term means, in the case of a public community college or public technical institute, 40 per centum of its development cost. (e) The term "higher education building agency" means (1) an agency, public authority, or other instrumentality of a State authorized to provide, or finance the construction of, academic facilities for institutions of higher education (whether or not also authorized to provide or finance other facilities for such or other educational institutions, or for their students or faculty), or (2) any corporation (no part of the net earnings of which inures or may lawfully inure to the benefit of any private shareholder or individual)(A) established by an institution of higher education for the sole purpose of providing academic facilities for the use of such institution, and (B) upon dissolution of which all title to any property purchased or built from the

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proceeds of any loan made under title III of this Act will pass to such institution. (f) The term "institution of higher education" means an educational institution in any State which— (1) admits as regular students only individuals having a certificate of graduation from a high school, or the recognized equivalent of such a certificate; (2) is legally authorized within such State to provide a program of education beyond high school; (3) provides an educational program for which it awards a bachelor's degree, or provides not less than a two-year program which is acceptable for full credit toward such a degree, or offers a two-year program in engineering, mathematics, or the physical or biological sciences which is designed to prepare the student to work as a technician and at a semiprofessional level in engineering, scientific, or other technological fields which require the understanding and application of basic engineering, scientific, or mathematical principles or knowledge; (4) is a public or other nonprofit institution; and (6) is accredited by a nationally recognized accrediting agency or association listed by the Commissioner pursuant to this paragraph or, if not so accredited, is an institution whose credits are accepted, on transfer, by not less than three institutions which are so accredited, for credit on the same basis as if transferred from an institution so accredited: Provided, however, That in the case of an institution offering a two-year program in engineering, mathematics, or the physical or biological sciences which is designed to prepare the student to work as a technician and at a semiprofessional level in engineering, scientific, or technological fields which require the understanding and application of basic engineering, scientific, or mathematical principles or knowledge, if the Commissioner determines there is no nationally recognized accrediting agency or association qualified to accredit such institutions, he shall, under section 402(c), appoint an advisory committee, composed of persons specially qualified to evaluate training provided by such institutions, which shall prescribe the standards of content, scope, and quality which must be met in order to qualify such institutions for assistance under this Act and shall also determine whether particular institutions meet such standards: Provided, however, That the requirements of this clause (5) shall be deemed to be satisfied in the case of an institution applying for assistance under this Act, if the Commissioner determines that there is satisfactory assurance that upon completion of the project for which such assistance is requested, or upon completion of that project and others under construction or planned and to be commenced within a reasonable time, the institution will meet such requirements; and for the purposes of this paragraph the Commissioner shall publish a list of nationally recognized accrediting agencies or associations which he determines to be reliable authority as to the quality of education or training offered. (^) The term "public community college and public technical institute" means an institution of higher education which is under public supervision and control and is organized and administered principally to provide a two-year program which is acceptable for full credit toward a bachelor's degree or a two-year program in engineering, mathematics, or the physical or biological sciences which is designed to prepare the student to work as a technician and at a semiprofessional level in engineering, scientific, or other technological

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fields which require the understanding and application of basic engineering, scientific, or mathematical principles or knowledge, and, if a branch of an institution of higher education offering four or more years of higher education, is located in a community different from that in which its parent institution is located. (h) The term "cooperative graduate center" means an institution or program created by two or more institutions of higher education which will offer to the students of the participating institutions of higher education graduate work which could not be offered with the same proficiency and/or economy at the individual institution of higher education. The center may be located or the program carried out on the campus of any of the participating institutions or at a separate location, (i) The term "cooperative graduate center board" means a duly constituted board established to construct and maintain the cooperative graduate center and coordinate academic programs. The board shall be composed of representatives of each of the higher education institutions participating in the center and of the conmnunity involved. At least one-third of the board's members shall be community representatives. The board shall elect by a majority vote a chairman from among its membership. (j) The term "high school" does not include any grade beyond grade 12. (k) The term "nonprofit educational institution" means an educational institution owned and operated by one or more corporations or associations no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual. (1) The term "public educational institution" does not include a school or institution of any agency of the United States. (m) The term "State" includes, in addition to the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa. FEDERAL ADMINISTRATION

SEC. 402. (a) The Commissioner may delegate any of his functions under this Act, except the making oi regulations, to any officer or employee of the Office of Education. (b) I n administering the provisions of this Act for which he is responsible, the Commissioner is authorized to utilize the services and facilities of any agency of the Federal Government and of any other public or nonprofit agency or institution in accordance with appropriate agreements, and to pay for such services either in advance or by way of reimbursement, as may be agreed upon. (c) The Commissioner, with the approval of the Secretary of Health, Education, and Welfare, may appoint one or more advisory committees to advise and consult with the Commissioner with respect to the administration of any of his functions under title I or III of this Act. Members of any such committee, while attending conferences or meetings of the committee, shall be entitled to receive compensation at a rate to be fixed by the Secretary of Health, Education, and Welfare, but not to exceed $75 per diem, and while away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by law (5 U.S.C. 73b-2) for persons in the Government service employed eo Stat. sos; intermittently. ^s Stat. 34o.

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PUBI.IC LAW 88-2G4-DEC. 16, 1963 LABOR

[77 STAT.

STANDARDS

SEC. 408. (a) The Commissioner shall not approve any application for a grant or loan under this Act except upon adequate assurance that all laborers and mechanics employed by contractors or subcontractors in the performance of work on construction assisted by such ^rant or loan will be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U S.C. 49 Stat. 1011. 276a-276a-5), and will receive overtime compensation in accordance with and subject to the provisions of the Contract Work Hours Stand76 Stat. 357. ards Act (Public Law 87-581); but, in the case of any nonprofit 40 USC 327 An TTcn 1.07 educational institution, the Commissioner may waive the application of note. this subsection in cases or classes of cases where laborers or mechanics, not otherwise employed at any time in the construction of the project, voluntarily donate their services for the purpose of lowering the costs of construction and the Commissioner determines that any amounts saved thereby are fully credited to the educational institution undertaking the construction. (b) The Secretary of I^abor shall have, with respect to the labor standards specified in subsection (a) of this section, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 5 USC 133^ 15 F.R. 3176; 64 Stat. 1267), and section 2 of the Act of June 13, 1934, as note amended (40 U.S.C. 276c). 63 Stat. 108

RECOVERY o r

PAYMENTS

SEC. 404. (a) The Congress hereby finds and declares that, if a facility constructed with the aid of a grant or grants under title I or II of this Act is used as an academic facility for twenty years following completion of such construction, the public benefit accruing to the United States from such use will equal or exceed in value the amount of such grant or grants. The period of twenty years after completion of such construction shall therefore be deemed to be the period of Federal interest in such facility for the purposes of this Act. (b) If, within twenty years after completion of construction of an academic facility which has been constructed in part with a grant or grants under title I or II of this Act— (1) the applicant (or its successor in title or jDossession) ceases or fails to be a public or nonprofit institution, or (2) the facility ceases to oe used as an academic facility, or the facility is used as a facility excluded from the term "academic facility" by section 401(a)(2), the United States shall be entitled to recover from such applicant (or successor) an amount which bears to the then value of the facility (or so much thereof as constituted an approved project or projects) the same ratio as the amount of such Federal ^ a n t or grants bore to the development cost of the facility financed with the aid of such grant or grants. Such value shall be determined by a^eement of the parties or by action brought in the United States district court for the district in which such facility is situated. METHOD OF

PAYMENT

SEC. 405. Payments under this Act to any State or Federal agency, institution of higher education, or any other organization, pursuant to a grant or loan, may be made in installments, and in advance or by way of reimbursement, with necessary adjustments on account of overpayments or underpayments.

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ADMINISTRATIVE APPROPRIATIONS ArTHORIZED

SEC. 406. There are hereby authorized to be appropriated for the fiscal year ending June 30, 1964, and for each fiscal year thereafter, such sums as may be necessary for the cost of administering the provisions of this Act. FEDERAL CONTROL NOT AUTHORIZED

SEC. 407. No department, agency, officer, or employee of the United States shall, under authority of this Act, exercise any direction, supervision, or control over, or impose any requirements or conditions with respect to, the personnel, curriculum, methods of instruction, or administration of any educational institution. Approved December 16, 1963, 11 a.m. Public Law 88-205 AN ACT

December 16, 1963

To amend further the Foreign Assistance Act of 1961, as amended, and for other purposes.

-'

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may Foreign Assistbe cited as the "Foreign Assistance Act of 1963". ^nce Act of 1963.

PAET I CHAPTER 1—POLICY

SEC. 101. Chapter 1 of part I of the Foreign Assistance Act of 1961, as amended, is amended as follows: (a) I n the chapter heading strike out the words "SHORT TITLE AND". (b) Section 101, which relates to short title, is repealed. (c) Section 102, which relates to statement of policy, is amended as follows:

Repeal. 75 Stat. 424. 22 USC 215 1 note. 22 USC 215 1.

(1) Insert between the fourth and fifth paragraphs the follow ing additional paragraph: " I t is the sense of the Congress that the institution of full investment guaranty p r o - a m s under title III of chapter 2 of this part with 75 Stat. 429; all recipient countries would be regarded as a significant measure of ^^ ^^^' 2^^self-help by such countries improving the climate for private invest- 2184. ment both domestic and foreign.". (2) I n the last sentence of the seventh paragraph, strike out "should emphasize long-range development assistance" and insert in lieu thereof "shall emphasize long-range development assistance". (3) Immediately after the tenth paragraph insert the following new paragraph: " I t is the sense of the Congress that, in the administration of programs of assistance under chapter 2 of this part, every possible pre- 75 Stat. 426. caution should be taken to assure that such assistance is not diverted 22II3. „i,l^^*^ ^^^^ to short-term emergency purposes (such as budgetary purposes, balance-of-payments purposes, or military purposes) or any other purpose not essential to the long-range economic development of recipient countries." (4) The first sentence of the last paragraph is amended by striking out "Finally, the" and substituting "The", and by inserting "(including private enterprise within such countries)" immediately after "countries". (5) Immediately after the first sentence of the last paragraph insert the following new sentence: " I n particular, the Congress

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urges that other industrialized free-world countries increase their contributions and improve the forms and terms of their assistance so that the burden of the common undertaking, which is for the benefit of all, shall be equitably borne by all." (6) Immediately after the last paragraph, add the following new paragraph: " I t is the sense of the Congress that assistance authorized by this Act should be extended to or withheld from the government of South Vietnam, in the discretion of the President, to further the objectives of victory in the war again communism and the return to their homeland of Americans involved in that struggle." CHAPTER 2—DEVELOPMENT ASSISTANCE

TITLE I—^DEVELOPMENT LOAN FUND

75 Stat. 426;

22 USC 2165.

22 USC 2162.

22 USC 215 1, 2 16 1, 235 1, 2352.

SEC. 102. Title I of chapter 2 of part I of the Foreign Assistance Act of 1961, as amended, which relates to the development loan fund, is amended as follows: (a) Amend section 201, which relates to general authority, as (1) I n the second sentence of subsection (b), which relates to considerations to be taken into account in making loans from the development loan fund, strike out clauses (1) and (2) and insert in lieu thereof the following: "(1) whether financing could be obtained in whole or in part from other free-world sources on reasonable terms, including private sources within the United States, (2) the economic and technical soundness of the activity to be financed, including the capacity of the recipient country to repay the loan at a reasonable rate of interest,". (2) Subsection (d), which relates to interest rates on development loans, is amended by inserting immediately after "in no event" the following: "shall such funds (except funds loaned under section 205 and funds which prior to the date of enactment of the Foreign Assistance Act of 1963 were authorized or committed to be loaned upon terms which do not meet the minimum terms set forth herein) be loaned at a rate of interest of less than 2 per centum per annum commencing not later than ten years following the date on which the funds are initially made available under the loan, during which ten-year period the rate of interest shall not be lower than three-fourths of 1 per centum per annum, nor". (3) Add the following new subsection (f): "(f) No assistance shall be furnished under this title for a project unless the President determines that such project will promote the economic development of the requesting country, taking into account the current human and material resource requirements of that country and the relationship between the ultimate objectives of the project and the overall economic development of the country, and that such project specifically provides for appropriate participation by private enterprise." (b) Amend section 202(a), which relates to authorizations for the development loan fund, as follows: (1) Strike out "and $1,500,000,000 for each of the next four succeeding fiscal years," and insert in lieu thereof ", $1,500,000,000 for the fiscal year 1963, $925,000,000 for the fiscal year 1964, and $1,500,000,000 for each of the next two succeeding fiscal years,". (2) Immediately before the.period at the end thereof insert the following: ": Provided further, That, in order to effectuate the purposes and provisions of sections 102, 201, 601, and 602 of this Act, not less than 50 per centum of the funds appropriated pur-

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suant to this subsection for the fiscal years ending June 30, 1965, and June 30, 1966, respectively, shall be available for loans made to encourage economic development through private enterprise". TITLE II

DEVELOPMENT GRANTS AND TECHNICAL COOPERATION

SEC. 103. Title II of chapter 2 of part I of the Foreign Assistance Act of 1961, as amended, which relates to development grants and technical cooperation, is amended as follows: (a) I n section 212, which relates to authorization, strike out "1963" and "$300,000,000" and substitute "1964" and "$220,000,000", respectively. (b) Amend section 214, which relates to American schools and hospitals abroad, as follows: (1) I n subsection (a) strike out "use, in addition to other funds available for such purposes, funds made available for the purposes of section 211 for" and substitute the word "furnish". (2) I n subsection (b) strike out "to use" and "foreign currencies accruing to the United States Government under any Act, for purposes of subsection (a) of this section and for" and substitute "to furnish" before the word "assistance". (3) Add the following new subsection: " (c) There is hereby authorized to be appropriated to the President for the purposes of this section, for the fiscal year 1964, $19,000,000, to remam available until expended. Of the sums authorized to be appropriated under this subsection, not to exceed $2,200,000 shall be available for direct dollar costs in carrying out subsection (b) and $4,700,000 shall be available solely for the purchase of foreign currencies accruing to the United States Government under any Act."

75 Stat. 423; ^%f^%c\%2. 22 USC 2174.

TITLE III—INVESTMENT GUARANTIES

SEC. 104. Title III of chapter 2 of part I of the Foreign Assistance Act of 1961, as amended, which relates to investment guaranties, is amended as follows: (a) Amend section 221(b), which relates to general authority, as 75 Stat. 429; follows: '^22'uy2^i8i (1) I n the first sentence after "wholly owned" insert "(determined without regard to any shares, in aggregate less than 5 per centum of the total of issued and subscribed share capital, required by law to be held by persons other than the parent corporation)". (2) I n paragraph (1) strike out "$1,300,000,000" in the proviso and substitute "$2,500,000,000". (3) I n paragraph (2) strike out "1964" in the fourth proviso and substitute "1965". (b) Amend section 222(a), which relates to general provisions, by 22 USC 2u;2. striking out "section 221(b)" and substituting "sections 221(b) and 224".

^

_

22 USC 2184.

(c) Amend section 222(b)j which relates to general provisions, by striking out "section 221(b) " m both places it appears and substituting "sections 221(b) and 224". (d) Amend section 222(d), which relates to general provisions, to read as follows: " (d) Any payments made to discharge liabilities under guaranties issued under sections 221(b) and 224 of this part, sections 202(b) and 413 (b)(4) of the Mutual Security Act of 1954, as amended, and section 71 Stat. 357; 111(b)(3) of the Economic Cooperation Act of 1948, as amended esStat. 846. (exclusive of informational media guaranties), shall be paid first out 1933."^^ ^^^^' of fees referred to in section 222(b) as long as such fees are available, 62 Stat. 143. and thereafter shall be paid out of funds, if any^ realized from the sale of currencies or other assets acquired in connection with any payments

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«8 Stat. 846. 62 a^^ ua^' 22 usV 1509. 22 USC 2182. 71 Stat. 357. 22 USC 1872.

22 USC 2181. 22 USC 2184.

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[77 STAT.

made to discharge liabilities under such guaranties as long as such funds are available, and thereafter shall be paid out of funds heretofore appropriated tor the purpose of discharging liabilities under the aforementioned guaranties, and thereafter out of funds realized from the sale of notes issued under section 413(b)(4)(F) of the Mutual Sccurity Act of 1954, as amended, and section 111(c)(2) of the Economic Cooperation Act of 1948, as amended, and finally out of funds hereafter made available pursuant to section 222(f)." (e) Amend section 222(e), which relates to general provisions, to read as follows: "(e) All guaranties issued prior to July 1, 1956, all guaranties issucd under sections 202(b) and 413(b)(4) of the Mutual Security ^ c t of 1954, as amended, and all guaranties heretofore or hereafter issued pursuant to this title shall be considered contingent obligations backed by the full faith and credit of the Government of the United States of America. Funds heretofore obligated under the aforementioned guaranties (exclusive of informational media guaranties) together with the other funds made available for the purposes of this title shall constitute a single reserve for the payment of claims in accordance with section 222(d) of this part." (f) Amend section 222 by adding at the end thereof the following new subsection: "(g) I n making a determination to issue a guaranty under section 221(b), the President shall consider the possible adverse effect of the dollar investment under such guaranty upon the balance of payments of the United States." (g) Amend section 224, which relates to housing projects in Latin American countries, as follows: (1) I n subsection (b) strike out "$60,000,000" and substitute "$150,000,000". (2) Strike out subsection (c). T r r L E V—DEVELOPMENT RESEARCH

75 Stat. 433. 22 USC 2201.

SEC. 105. Section 241 of the Foreign Assistance Act of 1961, as amended, which relates to development research, is amended by insertjj^g " (a) " after the section heading and by adding at the end thereof the following new subsection: "(b) Funds made available to carry out this section may be used to conduct research into the problems of population growth." TITLE VI

ALLIANCE FOR PROGRESS

SEC. 106. Title VI of chapter 2 of part I of the Foreign Assistance 76 Stat. 257. 22^13^^^^^'^^*"

Act of 1961, as amended, which relates to the A l l i a n c e for P r o g r e s s, is amended as f o l l o w s:

(a) Amend section 251, which relates to generar authority, as follows: (1) I n subsection (h), amend the next to the last sentence thereof by inserting immediately after "reasonable terms" the following: " (including private sources within the United States), the capacity of the recipient country to repay the loan at a reasonable rate of interest,". (2) I n subsection (e) strike out "economical" and substitute "economically". (3) I n subsection (f) strike out "Agency for International Development" and substitute "agency primarily responsible for administering p^rt I". (4) Add the following new subsection (g): " (g) I n order to carry out the policies of this Act, the President shall, when appropriate, assist in promoting the organization, implementation, and growth of the cooperative movement in Latin America

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as a fundamental measure toward the strengthening of democratic institutions and practices and economic and social development under the Alliance for Progress." (b) Amend section 252, which relates to authorization, as follows: 76 Stat. 25«. (1) I n the first sentence, strike out "fiscal years 1963 through 22 USC 2212. 1966, not to exceed $600,000,000 for each such fiscal year" and insert in lieu thereof "fiscal years 1963, 1965, and 1966, not to exceed $600,000,000 for each such fiscal year, and for use beginning in the fiscal year 1964, not to exceed $525,000,000,". (2) Immediately after "1963" the second time it appears therein, insert the following: "and not to exceed $100,000,000 of the funds appropriated pursuant to this section for use beginning in fiscal year 1964". (3) A t the end thereof add the following new sentence: " I n order to effectuate the purposes and provisions of sections 102,251, 601, and 602 of this Act, not less than 50 per centum of the loan 22 USC 2151, funds appropriated pursuant to this section for the fiscal years 2353' ^^^^' ending June 30, 1965, and June 30, 1966, respectively, shall be available for loans made to encourage economic development through private enterprise." (c) Amend section 253, which relates to fiscal provisions, by insert- 22 USC 2213. ing immediately after the first sentence thereof the following new sentence: "All receipts i n foreign currencies from loans made under this title or for nonmilitary assistance purposes under the Mutual Security Act of 1954, as amended, or any Act repealed thereby, shall be es stau 832. 22 available, in addition to other funds available for such purposes, for note. u s e 1751 loans on such terms and conditions as the President may specify to carry out the purposes of subsection (g) of section 251 of this title, and the President may, notwithstanding the provisions of this or any other Act, reserve such currencies in such amounts (not to exceed $25,000,000) as he shall determine to be necessary to provide for the programs authorized by said subsection (g). " TITLE VII—EVALUATION OF PROGRAMS

SEC. 107. Chapter 2 of part I of the Foreign Assistance Act of 1961, as amended, is further amended by adding at the end thereof a 75 Stat. 426. new title as follows: .}•{ ^^^ ^ le 12213.

((i

TITLE VII—^EVALUATION OF PROGRAMS

"SEC. 261. The President may appoint a committee to review and evaluate the economic development program under this Act, and to report to the President and to the Congress its findings." CHAPTER 3—INTERNATIONAL ORGANIZAITONS AND PROGRAMS

SEC. 108. Section 302 of the Foreign Assistance Act of 1961, as 75 Stat. 433; amended, which relates to international organizations and programs, ^^^f^ikr^^ooo is amended by striking out "1963" and "$148,900,000" and substituting "1964" and "$136,050,000", respectively. CHAPTER 4—SUPPORTING ASSISTANCE

SEC. 109. Section 402 of the Foreign Assistance Act of 1961, as amended, which relates to supporting assistance, is amended by strik- 75 Stat. 4345 ing out "1963" and "$415,000,000" and substituting "1964" and ^^f,1" ^?-, "$380,000,000", respectively. ' ' "^"^ ''"'•

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CHAPTER 5—CONTINGENCY F U N D

75 Stat. 434; 76 Stat. 259. - • "" 22 USC 2261.

SEC. 110. Section 451 of the Foreign Assistance Act of 1961, as amended, which relates to the contingency fund, is amended by striking out "1963" and "$300,000,000" and substituting "1964" and "$160,000,000", respectively. PAKT II CHAPTER 1—POLICY

SEC. 201. Chapter 1 of part II of the Foreign Assistance Act of 1961, as amended, is amended as follows: (a) I n the chapter heading strike out the words "SHORT TITLE ANn".

Repeal. 75 Stat. 434. 22 USC 2301 note.

75 Stat. 436. 22 USC 2312. 22 USC 2313.

22 USC 2318. 22 USC 2319.

(b) Section 501, which relates to short title, is repealed. CHAPTER 2—MILITARY ASSISTANCE

SEC. 202. Chapter 2 of part II of the Foreign Assistance Act of 1961, as amended, which relates to military assistance, is amended as follows: (a) l u section 504(a), which relates to authorization, strike out u^he fiscal years 1962 and 1963" and "$1,700,000,000 for each such fiscal year, which sums" and substitute "fiscal year 1964" and "$1,000,000,000, which", respectively. (b) I n section 505(a), which relates to utilization of assistance,change the period at the end thereof to a colon and add the following proviso: Provided, That, except (1) to the extent necessary to fulfill prior commitments or (2) to the extent that the President finds, with respect to any Latin American country, that the furnishing of military assistance under this Act is necessary to safeguard the security of the United States or to safeguard the security of a country associated with the United States in the Alliance for Progress against overthrow of a duly constituted government, and so informs the Congress, no further military assistance under any provision of this Act shall be furnished to any Latin American country." (c) I n section 510(a), which relates to special authority, strike out "1963" in the first and second sentences and substitute "1964". (d) I n section 511, which relates to restrictions on military aid to Latin America, strike out "$57,500,000" and substitute "$55,000,000, of which a part may be used during each fiscal year for assistance in implementing a feasible plan for regional defense". fe) Add the following new section: " SEC. 512. RESTRICTIONS ON MILITARY A I D TO AFRICA.—No military

22 USC 2315.

assistance shall be furnished on a ^ a n t basis to any country in Africa, except for internal security requirements or for programs described in section 505(b) of this chapter, unless the President determines otherwise and promptly reports such determination to the Committee on Foreign Relations of the Senate and the Speaker of the House of Representatives. The value of grant programs of defense articles for African countries in fiscal year 1964, pursuant to any authority contained in this part other than section 507, shall not exceea $25,000,000."

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385

PART III CHAPTER 1—GENERAL PROVISIONS

SEC. 301. Chapter 1 of part III of the For e i ^ Assistance Act of 1961, as amended, which relates to general provisions, is amended as follows: (a) Section 601(b), which relates to encouragement of private enterprise, is amended as follows: (1) A t the end of paragraph (3), strike out "and". (2) I n paragraph (4), strike out "wherever appropriate" and insert in lieu thereof "to the maximum extent practicable", and strike out the period at the end thereof and substitute a semicolon. (3) Add the following new paragraphs at the end thereof: "(5) take appropriate steps to discourage nationalization, expropriation, confiscation, seizure of ownership or control, of private investment and discriminatory or other actions having the effect thereof, undertaken by countries receiving assistance under this Act, which divert available resources essential to create new wealth, employment, and productivity in those countries and otherwise impair the climate for new private investment essential to the stable economic growth and development of those countries; and "(6) utilize wherever practicable the services of United States private enterprise (including, but not limited to, the services of experts and consultants in technical fields such as engineering)." (b) A t the end of section 601 add the following new subsection: " (c)(1) There is hereby established an Advisory Committee on Private Enterprise in Foreign Aid. The Advisory Committee shall carry out studies and make recommendations for achieving the most effective utilization of the private enterprise provisions of this Act to the head of the agency charged with administering the program under part I of this Act, who shall appoint the Committee. " (2) Members of the Advisory Committee shall represent the public interest and shall be selected from the business, labor and professional world, from the universities and foundations, and from among persons with extensive experience in government. The Advisory Committee shall consist of not more than nine members, and one of the members shall be designated as chairman. " (3) Members of the Advisory Committee shall receive no compensation for their services but shall be entitled to reimbursement in accordance with section 5 of the Administrative Expenses Act of 1946 (5 U.S.C. 73b-2) for travel and other expenses incurred in attending meetings of the Advisory Committee. "(4) The Advisory Committee shall, if possible, meet not less frequently than once each month, shall submit such interim reports as the Committee finds advisable, and shall submit a final report not later than December 31, 1964, whereupon the Committee shall cease to exist. Such reports shall be made available to the public and to the Congress. " (5) The expenses of the Committee, which shall not exceed $50,000, shall be paid from funds otherwise available under this Act." (c) Section 611(b), which relates to completion of plans and cost estimates, is amended by striking out "circular A-47 of the Bureau of the Budget" and substituting "the Memorandum of the President dated May 15, 1962,". (d) Section 612, which relates to use of foreign currencies, is amended as follows: (1) Insert " (a) " after the section heading. 93-025 0-64-27

75 Stat. 43:8. ^^ ^^^ ^^^ ^•

Advisory committee on Private po^e^n Aid" Establishment. 22 USC 2151 "°*^-

eo Stat. SOB.

22 USC 2361.

22 USC 23 62.

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 386

68 Stat. 832. 22 USC 1751 "°68*Stat. 454. 7 USC 1691 note. '*^*

75 Stat. 444; '2^2*use^2370.

65 Stat. 645.

22 USC 16111611d.

PUBLIC LAW 88-205-DEC. 16, 1963

[77 STAT.

(2) Add the following new subsection (b): "(b) I n order to provide for the foreign currency needs of United States citizens for travel or other purposes, the Secretary of the Treasury may make available for sale for United States dollars to such citizens, at United States embassies or other convenient locations, foreign currencies acquired by the United States through operations under this Act, the Mutual Security Act of 1954, as amended, or any Qj^ repealed thereby, or the Agricultural Trade Development and Assistance Act of 1954, as amended, which (1) he determines to be in excess of the needs of departments and agencies of the United States for such currencies, and (2) are not prohmited from such use or committed to other uses by agreement heretofore entered into with another country. United States dollars received from the sale of foreign currencies under this subsection shall be deposited in the Treasury as miscellaneous receipts." (e) Section 620, which relates to prohibitions against furnishing assistance to Cuba and certain other countries, is amended as follows: (1) Subsection (a) is amended as follows: (A) Insert " (1) " immediately after " (a) ". (B) A t the end thereof add the following new paragraphs: "(2) 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 lias 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. "(3) No funds authorized to be made available under this Act (except under sectio^n 214) shall be used to furnish assistance to any country which has failed to take appropriate steps, not later than 60 days after the date of enactment of the Foreign Assistance Act of 1963— " (A) to prevent ships or aircraft under its registry from transporting to Cuba (other than to United States installations in Cuba)— "(i) any items of economic assistance, "(ii) any items which are, for the purposes of title I of the MutualDefeuse Assistance Control Act of 1951, as amended, arms, ammunition and implements of war, atomic energy materials, petroleum, transportation materials of strategic value, or items of primary strategic significance used in the production of arms, ammunition, and implements of war, or "(iii) any other equipment, materials, or commodities, so long as Cuba is governed by the Castro regime; and " (B) to prevent ships or aircraft under its registry from transporting any equipment, materials, or commodities from Cuba (other than from United States installations in Cuba) so long as Cuba is governed by the Castro regime." (2) Subsection (e) is amended to read as follows: "(e) The President shall suspend assistance to the government of any country to which assistance is provided under this or any other

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Act when the government of such country or any government agency or subdivision within such country on or after January 1, 1962-— "(1) 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 "(2) has taken steps to repudiate or nullify existing contracts or agreements with any United States citizen or any corporation, partnership, or association not less than 50 per centum beneficially owned by United States citizens, or "(3) 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 entityj 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 no other provision of this Act shall be construed to authorize the President to waive the provisions of this subsection. "Upon request of the President (within seventy days after such action referred to in paragraphs (1), (2), or (3) of this subsection), the Foreign Claims Settlement Commission oi the United States (established pursuant to Eeorganization Plan No. 1 of 1954, 68 Stat. 1279) is hereby authorized to evaluate expropriated property, deter- s use 1332mining the full value of any property nationalized, expropriated, or ^^ note. seized, or subjected 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." (3) Add the following new subsections: " (i) No assistance shall he provided under this or any other Act, and no sales shall be made under the Agricultural Trade Development and Assistance Act of 1954, to any country which the President deter- es Stat. 454. mines is engaging in or preparing for aggressive military efforts nJe"^^ ^^^' directed against— "(iT the United Statesj "(2) any country receiving assistance under this or any other Act, or "(3) any country to which sales are made under the Agricultural Trade Development and Assistance Act of 1954, until the President determines that such military efforts or preparations have ceased and he reports to the Congress that he has received assurances satisfactory to him that such military efforts or preparations will not be renewed. This restriction may not be waived pursuant to any authority contained in this Act.

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75 Stat. 429; ^^22 USC^ 2181

PUBLIC LAW 88-205-DEC. 16, 1963

[77 STAT.

" (j) No assistance under this Act shall be furnished to Indonesia unless the President determines that the furnishing of such assistance is essential to the national interest of the United States. The President shall keep the Foreign Relations Committee and the Appropriations Committee of the Senate and the Speaker of the House of Representatives fully and currently informed of any assistance furnished to Indonesia under this Act. " (k) Until the enactment of the Foreign Assistance Act of 1964 or other general legislation, during the calendar year 1964, authorizing additional appropriations to carry out programs of assistance under this Act, no assistance shall be furnished under this Act to any country for construction of any productive enterprise with respect to which the aggregate value of such assistance to be furnished by the United States will exceed $100,000,000. No other provision of this Act shall be construed to authorize the President to waive the provisions of this subsection. " (1) No assistance shall be provided under this Act after December 31, 1965, to the government of any less developed country which has failed to enter into an agreement with the President to institute the investment guaranty program under section 221(b)(1) of this Act, providing protection against the specific risks of inconvertibility under subparagraph (A), and expropriation or confiscation under subparagraph (B), of such section 221(b)(1). "(m) No assistance shall be furnished on a grant basis under this Act to any economically developed nation capable of sustaining its own defense burden and economic gj-owth, except (1) to fulfill firm commitments made prior to July 1, 1963, or (2) additional orientation and training expenses under part II hereof during fiscal year 1964 in an amount not to exceed $1,000,000." CHAPTER 2—ADMINISTRATIVE PROVISIONS

76^statr26^2!^' 22 USC 2381.

75 Stat. 447; 76 Stat.^262.

SEC. 302. Chapter 2 of part III of the Foreign Assistance Act of 1961, as amended, which relates to administrative provisions, is amended as follows: (a] Amend section 621, which relates to exercise of functions, by Striking out the last sentence thereof and substituting the following: "In providing technical assistance under this Act, uie head of any such agency or such officer shall utilize, to the fullest extent practicable, goods and professional and other services from private enterprise on a contract basis. I n such fields as education, health, housing, or agriculture, the facilities and resources of other Federal agencies shall be utilized when such facilities are particularly or uniquely suitable for technical assistance, are not competitive with private enterprise, and can be made available without interfering unauly with domestic programs." (b) Amend section 624, which relates to statutory officers, as foUoWS:

(1) I n subsection (a)(2) strike out "two shall have the rank of Deputy Under Secretaries" and substitute "one shall have the rank of a Deputy Under Secretary". (2) I n subsection (a)(3) strike out "nine" and substitute "ten". (3) I n subsection (b) strike out "paragraphs (2) and" and substitute "paragraph". (4) I n subsection (d)(1) after the words "Deputy Inspector General, Foreign Assistance," where they first appear insert "who shall be appointed by the President by and with the advice and consent of the Senate,", and strike out "$19,500" and substitute "$20,000".

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(c) Amend section 626(b), which relates to experts, consultants, 75 Stat. 451. and retired officers, as follows: ^^ ^^^ ^•^^^* (1) Strike out the entire first sentence. (2) I n the second- sentence strike out "Nor shall such service" and substitute "Service of an individual as an expert or consultant under subsection (a) of this section shall not". (d) Amend section 631, which relates to missions and staffs abroad, 22 USC 2391. by adding the following new subsection (c): " (c) The President may appoint any United States citizen who is not an employee of the United States Government or may assign any United States citizen who is a United States Government employee to serv^e as Chairman of the Development Assistance Committee or any successor committee thereto of the Organization for Economic Cooperation and Development upon election thereto by members of said Committee, and, in his discretion, may terminate such appointment or assignment, notwithstanding any other provision of law. Such person may receive such compensation and allowances as are authorized by the Foreign Service Act of 1946, as amended, not to exceed those authorized 60 Stat. 999. for a chief of mission, class 2, within the meaning of said Act, as the ^^ ^^^ ^^ ^ President may determine. Such person may also, in the President's discretion, receive any other benefits and perquisites available under this Act to chiefs of special missions or staffs outside the United States established under this section." (e) Amend section 635, which relates to general authorities, by add- 22 USC 2395. ing the following new subsection (k): " (k) Any cost-type contract or agreement (including grants) entered into with a university, college, or other educational institution for the puipose of cariying out programs authorized by part I may provide for the payment of the reimbursable indirect costs of said university, college, or other educational institution on the basis of predetermined fixed-percentage rates applied to the total, or an element thereof, of the reimbursable direct costs incurred." (f) Amend section 636, which relates to provisions on uses of funds, 22 USC 2396. by adding the following new subsection (h): " (h) I n carrying out programs under this Act, the President shall take all appropriate steps to assure that, to the maximum extent possible, (1) countries receiving assistance under this Act contribute local currencies to meet the cost of contractual and other services rendered in conjunction with such programs, and (2) foreign currencies owned by the United States are utilized to meet the costs of such contractual and other services." (g) Amend section 637(a), which relates l o administrative 76 Stat. 2(52. expenses, by striking out "1963" and "$53,000,000" and substituting 22 USC 2397. "1964" and "$54,000,000", respectively. (h) After section 637 add the following new section: " SEC. 638. PEACE CORPS ASSISTANCE.—No provision of this Act shall be construed to prohibit assistance to any country pursuant to the Peace Corps Act, as amended; the Mutual Educational and Cul- 75 Stat. 6:12. tural Exchange Act of 1961, as amended; or the Export-Import Bank ^J^^ ^^^ 2^°^ Act of 1945, as amended: or famine or disaster relief, including such " 75'Stat. 527. relief through voluntary agencies, under title II of the Agricultural 22 USC 2451 Trade Development and Assistance Act of 1954, as amended." '^°i%\. ^

'

CHAITER 3—MISCELLANEOUS PROVISIONS

59 Stat. 5^:6. 12 USC 635

note.

68 s t a t. 45 7.

Six^. 303. Section 644(f) of the Foreign Assistance Act of 1961, as ^/^"^^ ^^^^" amended, which relates to definition of defense services, is amended 75 Stat. 461. by inserting "including orientation" after "training" the first time it 22 USC 2403. appears.

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 390 75 Stat. 462. 22 USC 2404.

68 Stat. 832. 22 USC 1751 note.

PUBLIC LAW 88-205-DEC. 16, 1963

[77 STAT.

SEC. 304. Section 645 of the Foreign Assistance Act of 1961, as amended, which relates to unexpended balances, is amended to read as follows: " SEC. 645. UNEXPENDED BALANCES.—Unexpended balances of funds made available pursuant to this Act, the Mutual Security Act of 1954, as amended, or Public Law 86-735 are hereby authorized to be continued available for the general purposes for which appropriated, and may at any time be consolidatedj and, in addition, may be consolidated with appropriations made available for the same general purposes under the authority of this Act." PAKT IV—AMENDMENTS TO OTHER LAWS

74 Stat. 869.

76 Stat. 876. 19 USC 1861.

75 Stat. 306. 7 USC 170 1.

68 Stat. 457. 7 USC 1705.

7 USC 1706.

Effective date. 7 USC 17011709. 7 USC 1722.

SEC. 401. The Act to provide for assistance in the development of Latin America and in the reconstruction of Chile, and for other purposes (Public Law 86-735, 22 U.S.C. 1942 et seq.), is amended as follows: (a) Insert following the enacting clause "That this Act may be cited as the 'Latin American Development Act' ". (b) I n section 2 strike out "$500,000,000" and substitute "$680,000,000". SEC. 402. Section 231 of the Trade Expansion Act of 1962 (Public Law 87-794, approved October 11, 1962) is amended as follows: (a) I n s e r t " (a) " before the words "The President shall". (b) Add the following new subsection: " (b) The President may extend the benefits of trade agreement concessions made by the United States to products, whether imported directly or indirectly, of a country or area within the purview of subsection (a) which, at the time of enactment of this subsection, was receiving trade concessions, when he determines that such treatment would be important to the national interest and would promote the independence of such country or area from domination or control by international communism, and reports this determination and the reasons therefor to the Congress." SEC. 403. The Agricultural Trade Development and Assistance Act of 1954, as amended (7 U.S.C. 1691 et seq.), is amended as follows: (a) Section 101(f) is amended to read as follows: " (f) obtain rates of exchange applicable to the sale of commodities under such agreements which are not less favorable than the highest of exchange rates legally obtainable from the Government or agencies thereof in the respective countries." (b) Section 105 is amended by adding at the end thereof the following new sentence: "The President shall utilize foreign currencies received pursuant to this title in such manner as will, to the maximum extent possible, reduce any deficit in the balance of payments of the United States." (c)(1) Section 106 is amended by adding at the end thereof a new sentence as follows: "For the purposes of this title and title IV, the term 'surplus agricultural commodity' shall include any domestically produced fishery product (not including fish flour until approved by the Food and Drug Administration) if the Secretary of the Interior has determined that such product is at the time of exportation in excess of domestic requirements, adequate carryover, and anticipated exports for dollars." (2) The amendment made by paragraph (1) of this subsection shall not be effective for purposes of title I of the Agricultural Trade Development and Assistance Act of 1954, as amended, until January 1, 1965. (d) Section 202 is amended by striking out "economic development" and inserting in lieu thereof "economic and community development".

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SEC. 404. (a) Section 571(a) of the Foreign Service Act of 1946, as amended, is amended by changing the final period to a colon and adding the following; '•'•Provided, That in individual cases when personally approved by the Secretary further extension may be made." (b) Section 911(2) of the Foreign Service Act of 1946, as amended, is amended by inserting immediately after "on authorized home leave;" the following: "accompanying him for representational purposes on authorized travel within the country of his assignment or, at the discretion of the Secretary, outside the country of his assignment, but in no case to exceed one member of his family;". (c) Title IX of the Foreign Service Act of 1946, as amended, is amended by striking out section 921(d), relating to use of Government vehicles, and by inserting immediately after section 913 the following new section:

391 74 Stat. 833. 22 USC 9e i. eo stat, 1026. 22 USC 1136.

22 USC 1131^ ^^*70 Stat. 705. 22 USC 1139.

" U S E o r GOVERNMENT OWNED OR LEASED VEHICLES

"SEC. 914. Notwithstanding the provisions of section 5 of the Act of July 16, 1914, as amended (5 U.S.C. 78), the Secretary may author- eo Stat. sio. ize any principal officer to approve the use of Government owned or leased vehicles located at his post for transportation of United States Government employees and their dependents when public transportation is unsafe or not available." (d) Title X of the Foreign Service Act of 1946, as amended, is 22 USC soi amended by adding at the end thereof the following: slo*^' *°^ "PART I—EDUCATIONAL FACILITIES

"SEC. 1081. Whenever the Secretary determines that educational facilities are not available, or that existing educational facilities are inadequate, to meet the needs of children of American citizens stationed outside the United States engaged in carrying out Government activities, he is authorized, in such manner as he deems appropriate and under such regulations as he may prescribe, to establish, operate, and maintain primary schools, and school dormitories and related educational facilities for primary and secondary schools, outside the United States, or to make grants of funds for such purposes, or otherAvise provide for such educational facilities. The provisions of the Foreign Service Buildings Act, 1926, as amended, and of paragraphs (h) and (i) of section 3 of the Act entitled 'An Act to provide certain basic authority for the Department of State', approved August 1, 1956 (5 U.S.C. 170h(h) and I 7 0 h (i)), may be utilized by the Secretary in providing assistance for educational facilities. Assistance may include, but shall not be limited to, hiring, transporting, and payment of teachers and other necessary personnel." SEC. 405. The Act entitled "An Act to provide certain basic authority for the Department of State", approved August 1, 1956 (5 U.S.C. I70f-l70t), is amended by inserting immediately after section 12 the following new section: "SEC. 13. There is hereby established a working capital fund for the Department of State, which shall be available without fiscal year limitation, for expenses (including those authorized by the Foreign Service Act of 1946, as amended) and equipment, necessary for maintenance and operation in the city of Washington and elsewhere of (1) central reproduction, editorial, data processing, audiovisual, library and administrative support services; (2) central supply services for supplies and equipment (including repairs), and (3) such other administrative services as the Secretary, with the approval of the Bureau of the Budget, determines may be performed more advantageously and more economically as central services. The capital of

44 Stat. 403. ^^ "^^ '^^^' 70 Stat. 890.

eo Stat. 999 22 USC 801 note.

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PUBLIC LAW 88-206-DEC. 17, 1963

22 USC 1928a.

[77 STAT.

the fund shall consist of the amount of the fair and reasonable value of such supply inventories, equipment, and other assets and inventories on order, pertaining to the services to be carried on by the fund, as the Secretary may transfer to the fund, less the related liabilities and unpaid obligations, together with any appropriations made for the purpose of providing capital. Not to exceed $750,000 in net assets shall be transferred to the fund for purposes of providing capital. The fund shall be reimbursed, or credited with advance payments, from applicable appropriations and funds of the Department of State, other Federal agencies, and other sources authorized by law, for supplies and services at rates which will approximate the expense of operations, including accrual of annual leave and depreciation of plant and equipment of the fund. The fund shall also be credited with other receipts from sale or exchange of property or in payment for loss or damage to property held by the fund. There shall be transferred into the Treasury as miscellaneous receipts, as of the close of each fiscal year, earnings which the Secretary determines to be excess to the needs of the fund. There is hereby authorized to be appropriated such amounts as may be necessary to provide capital for the fund." SEC. 406. The first sentence of the first section of the Act entitled "An Act to authorize participation by the United States in parliamentary conferences of the North Atlantic Treaty Organization", approvcd July 11, 1956 (70 Stat. 523), is amended to read as follows: "That not to exceed eighteen Members of Congress shall be appointed to meet jointly and annually with representative parliamentary groups from other N A TO (North Atlantic Treaty Organization) members, for discussion of common problems in the interests of the maintenance of pea<;e and security in the North Atlantic area." Approved December 16, 1963.

Public Law 88-206 December 17, 1963

[H. R. 6518]

Clean Air Act. 69 Stat. 322; 73 Stat. 646.

AN ACT

,p^ improve, strengthen, and accelerate programs for the prevention and abatement of air pollution. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act of July 14, 1955, as amended (42 U.S.C. 1857-1857g), is hereby amended to read as follows: "FINDINGS AND PURPOSES

1. (a) The Congress finds— "(1) that the predominant part of the Nation's population is located in its rapidly expanding metropolitan and other urban areas, which generally cross the Doundary lines of local jurisdictions and often extend into two or more States; "(2) that the growth in the amount and complexity of air pollution brought about by urbanization, industrial development,

"SECTION

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PUBLIC LAW 88-206-DEC. 17, 1963

and the increasing use of motor vehicles, has resulted in mounting dangers to the public health and welfare, including injury to agricultural crops and livestock, damage to and the deterioration of property, and hazards to air aftd ground transportation; "(3) that the prevention and control of air pollution at its source is the primary responsibility of States and local governments; and "(4) that Federal financial assistance and leadership is essential for the development of cooperative Federal, State, regional, and local programs to prevent and control air pollution, "(b) The purposes of this Act are— "(1) to protect the Nation's air resources so as to promote the public health and welfare and the productive capacity of its population; " (2) to initiate and accelerate a national research and development program to achieve the prevention and control of air pollution; "(3) to provide technical and financial assistance to State and local governments in connection with the development and execution of their air pollution prevention and control programs; and "(4) to encourage and assist the development and operation of regional air pollution control programs. "COOPERATIVE ACTIVITIES AND UNIFORM LAWS

"SEC. 2. (a) The Secretary shall encourage cooperative activities by the States and local governments for the prevention and control of air pollution; encourage the enactment of improved and, so far as practicable in the li^ht of varying conditions and needs, uniform State and local laws relating to the prevention and control of air pollution; and encourage the making of agreements and compacts between States for the prevention and control of air pollution. " (b) The Secretary shall cooperate with and encourage cooperative activities by all Federal departments and agencies having functions relating to the prevention and control of air pollution, so as to assure the utilization in the Federal air pollution control program of all appropriate and available facilities and resources within the Federal Government. "(c) The consent of the Congress is hereby given to two or more States to negotiate and enter into agreements or compacts, not in conflict with any law or treaty of the United States, for (1) cooperative eJffort and mutual assistance for the prevention and control of air pollution and the enforcement of their respective laws relating thereto, and (2) the establishment of such agencies, joint or otherwise, as they may deem desirable for makiujg effective such agreements or compacts. No such agreement or compact shall be binding or obligatory upon any State a party thereto unless and until it has been approved by Congress.

393

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PUBLIC LAW 88-206-DEC. 17, 1963

[77 STAT,

"RESEARCH, INVESTIGATIONS, T R A I N I N G, AND OTHER ACTIVITIES

"SEC. 3. (a) The Secretary shall establish a national research and development program for the prevention and control of air pollution und as part of such program shall— " (1) conduct, and promote the coordinaticm and acceleration of, research, investigations, experiments, training, demonstrations, surveys, and studies relating to the causes, effects, extent, prevention, and control of air pollution; and "(2) encourage, cooperate with, and render technical services and provide financial assistance to air pollution control agencies and other appropriate public or private agencies, institutions, and organizations, and individuals in the conduct of such activities; and "(3) conduct investigations and research and make surveys concerning any specific problem of air pollution in cooperation with any air pollution control agency with a view to recommending a solution of such problem, if he is requested to do so by such agency or if, in his judgment, such problem may affect any community or communities in a State other than that in which the source of the matter causing or contributing to the pollution is located; and "(4) initiate and conduct a program of research directed toward the development of improved, low-cost techniques for extracting sulfur from fuels. "(b) I n carrying out the provisions of the preceding subsection the Secretary is authorized to— "(1) collect and make available, through publications and other appropriate means, the results of and other information, including appropriate recommendations by him in connection therewith, pertaining to such research and other activities; "(2) cooperate with other Federal departments and agencies, with air pollution control agencies, with other public and private agencies, institutions, and organizations, and with any industries involved, in the preparation and conduct of such research and other activities; " (3) make grants to air pollution control agencies, to other public or nonprofit private agencies, institutions, and organizations, and to individuals, for purposes stated in subsection (a)(1) of this section; "(4) contract with public or private agencies, institutions, and organizations, and with individuals, without regard to sections 3648 and 3T09 of the Revised Statutes (31 U.S.C. 529; 41 U.S.C. 5); "(5) provide training for, and make training grants to, personnel of air pollution control agencies and other persons with suitable qualifications; "(6) establish and maintain research fellowships, in the Department of Health, Education, and Welfare and at public or nonprofit private educational institutions or research organizations; "(7) collect and disseminate, in cooperation with other Federal departments and agencies, and with other public or private agencies, institutions, and organizations having related responsibilities,

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basic data on chemical, physical, and biological effects of varying air quality and other information pertaining to air pollution and the prevention and control thereof; and "(8) develop effective and practical processes, methods, and prototype devices for the prevention or control of air pollution, "(c)(1) I n carrying out the provisions of subsection (a) of this section the Secretary shall conduct research on, and survey the results of other scientific studies on, the harmful effects on the health or welfare of persons by the various known air pollution agents (or combinations of agents). "(2) Whenever he determines that there is a particular air pollution agent (or combination of agents), present in the air in certain quantities, producing effects harmful to the health or welfare of persons, the Secretary shall compile and publish criteria reflecting accurately the latest scientific knowledge useful in indicating the kind and extent of such effects which may be expected from the presence of such air pollution agent (or combination of agents) in the air in varying quantities. Any such criteria shall be published for informational purposes and made available to municipal. State, and interstate air pollution control agencies. He shall revise and add to such criteria whenever necessary to reflect accurately developing scientific knowledge. "(3) The Secretary may recommend to such air pollution control agencies and to other appropriate organizations such criteria of air quality as in his judgment may be necessary to protect the public health and welfare. "GRANTS FOR SUPPORT OF AIR POLLUTION CONTROL PROGRAMS

"SEC. 4. (a) From the sums appropriated annually for the purposes of this Act but not to exceed 20 per centum of any such appropriation, the Secretary is authorized to make grants to air pollution control agencies in an amount up to two-thirds of the cost of developing, establishing, or improving programs for the prevention and control of air pollution: Provided, That the Secretary is authorized to make grants to intermunicipal or interstate air pollution control agencies (described in section 9(b)(2) and (4)) in an amount up to threefourths of the cost of developing, establishing, or improving, regional air pollution programs. As used in this subsection, the term 'regional air pollution control program' means a program for the prevention and control of air pollution in an area that includes the areas of two or more municipalities, whether in the same or different States. " (b) From the sums available mider subsection (a) of this section for any fiscal year, the Secretary shall from time to time make grants to air pollution control agencies upon such terms and conditions as the Secretary may fijid necessary to carry out the purpose of this section. I n establishing regulations for the granting of such funds the Secretary shall, so far as practicable, give due consideration to (1) the population, (2) the extent of the actual or potential air pollution problem, and (8) the financial need of the respective agencies. No agency shall receive any grant under this section during any fiscal year when its expenditures of non-Federal funds for air pollution programs w411 be less than its expenditures were for such programs during the preceding fiscal year. No grant shall be made under this section until the Secretary has consulted with the appropriate official as designated by the Governor or Governors of the State or States affected. "(c) Not more than 12% per centum of the grant funds available under subsection (a) of this section shall be expended in any one State.

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[77 STAT.

a A B A T E M E N T OF AIR P O L L U T I O X

"SEC. 5. (a) The pollution of the air in any State or States which endangers the health or welfare of any persons, shall be subject to abatement as provided in this section. "(b) Consistent with the policy declaration of this Act, municipal, State, and interstate action to abate air pollution shall be encouraged and shall not be displaced by Federal enforcement action except as otherwise provided by or pursuant to a court order under subsection (g). " (c)(1)(A) Whenever requested by the Governor of any State, a State air pollution control agency, or (with the concurrence of the Governor and the State air pollution control agency for the State in which the municipality is situated) the governing body of any municipality, the Secretary shall, if such request refers to air pollution which is alleged to endanger the health or welfare of persons in a State other than that in which the discharge or discharges (causing or contributing to such pollution) originate, give formal notification thereof to the air pollution control agency of the municipality where such discharge or discharges originate, to the air pollution control agency of the State in which such municipality is located, and to the intersvate air pollution control agency, if any, in whose jurisdictional area such municipality is located, and shall call promptly a conference of such agency or agencies and of the air pollution control agencies of the municipalities which may be adversely affected by such pollution, and the air pollution control agency, if any, of each State, or for each area, in which any such municipality is located. " (B) Whenever requested by the Governor of any State, a State air pollution control agency, or (with the concurrence of the Governor and the State air pollution control agency for the State in which the municipality is situated) the governing body of any municipality, the Secretary shall, if such request refers to alleged air pollution which is endangering the health or welfare of persons only in the State in which the discharge or discharges (causing or contributing to such pollution) originate and if a municipality affected by such air pollution, or the municipality in which such pollution originates, has either made or concurred in such request, give formal notification thereof to the State air pollution control agency, to the air pollution control agencies of the municipality where such discharge or discharges originate and of the municipality or municipalities alleged to be adversely affected thereby, and to any interstate air pollution control agency, whose jurisdictional area includes any such municipality and shall promptly call a conference of such agency or agencies, unless, in the judgment of the Secretary, the effect of such pollution is not of such significance as to warrant exercise of Federal jurisdiction under this section. " (C) The Secretary may, after consultation with State officials of all affected States, also call such a conference whenever, on the basis of reports, surveys, or studies, he has reason to believe that any pollution referred to in subsection (a) is occurring and is endangering the health and welfare of persons in a State other than that in which the discharge or discharges originate. The Secretary shall invite the cooperation of any municipal. State, or interstate air pollution control agencies having jurisdiction in the affected area on any surveys or studies forming the basis of conference action. "(2) The agencies called to attend such conference may bring such persons as they desire to the conference. Not less than three weeks' prior notice of the conference date shall be given to such agencies.

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"(3) Followiiijg this conference, the Secretary shall prepare and forward to all air pollution control agencies attending the conference a summary of conference discussions including (A) occurrence of air pollution subject to abatement under this Act; (B) adequacy of measures taken toward abatement of the pollution; and (C) nature of delays, if any, being encountered in abating the pollution. " (d) If the Secretary believes, upon the conclusion of the conference or thereafter, that effective progress toward abatement of such pollution is not being made and that the health or welfare of any ersons is being endangered, he shall recommend to the appropriate tate, interstate, or municipal air pollution control agency (or to all such agencies) that the necessary remedial action be taken. The Secretary shall allow at least six months from the date he makes such recommendations for the taking of such recommended action, " (e)(1) If, at the conclusion of the period so allowed, such remedial action or other action which in the judgment of the Secretary is reasonably calculated to secure abatement of such pollution has not been taken, the Secretary shall call a public hearing, to be held in or near one or more of the places where the discharge or discharges causing or contributing to such pollution originated, before a hearing board of five or more persons appointed by the Secretary. Each State in which any discharge causing or contributing to such pollution originates and each State claiming to be adversely affected by such pollution shall be given an opportunity to select one member of such hearing board and each Federal department, agency, or instrumentality having a substantial interest in the subject matter as determined by the Secretary shall be given an opportunity to select one member of such hearing board, and one member shall be a representative of the appropriate interstate air pollution agency if one exists, and not less than a majority of such hearing board shall be persons other than officers or employees of the Department of Health, Education, and Welfare. At least three weeks' prior notice of such hearing shall be given to the State, interstate, and municipal air pollution control agencies called to attend such hearing and to the alleged polluter or polluters. " (2) On the basis of evidence presented at such hearing, the hearing board shall make findings as to whether pollution referred to in subsection (a) is occurring and whether effective progress toward abatement thereof is being made. If the hearing board finds such pollution is occurring and effective progress toward abatement thereof is not being made it shall make recommendations 4o the Secretary concerning the measures, if any, which it finds to b3 reasonable and suitable to secure abatement of such pollution. "(3) The Secretary ^hall send such findings and recommendations to the person or persons discharging any matter causing or contributing to such pollution; to air pollution control agencies of the State or States and of the municipality or municipalities where such discharge or discharges originate; and to any interstate air pollution control agency whose jurisdictional area includes any such municipality, together with a notice specifying a reasonable time (not less than six months) to secure abatement of such pollution. "(f) If action reasonably calculated to secure abatement of the pollution within the time specified in the notice following the public hearing is not taken, the Secretary— "(1) in the case of pollution of air which is endangering the health or welfare of persons in a State other than that in which the discharge or discharges (causing or contributing to such pollution) originate, may request the Attorney General to bring

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60 Stat. 808.

6 2 Stat. 791.

PUBLIC LAW 88-206-lMl 17, 1963

[77 STAT.

a suit on befhalf of the United States to secure abatement of pollution, and "(2) in the case of pollution of air which is endangering the health or welfare of persons only in the State in which the discharge or discharges (causing or contributing to such pollution) originate, at the request of the Governor of such State, shall provide such technical and other assistance as in his judgment is necessary to assist the State in judicial proceedings to secure abatement of the pollution under State or local law or, at the request of the Governor of such State, shall request the Attorney General to bring suit on behalf of the United States to secure abatement of the pollution. " (g) The court shall receive in evidence in any suit brought in a United States court under subsection (f) of this section a transcript of the proceedings before the board and a copy of the board's recommendations and shall receive such further evidence as the court in its discretion deems proper. The court, giving due consideration to the practicability of complying with such standards as may be applicable and to the physical and economic feasibility of securing abatement of any pollution proved, shall have jurisdiction to enter such judgment, and orders enforcing such judgment, as the public interest and the equities of the case may require. " (h) Members of any hearing board appointed pursuant to subsection (e) who are not regular full-time officers or employees of the United States shall, while participating in the hearing conducted by such board or otherwise engaged on the work of such board, be entitled to receive compensation ait a rate fixed by the Secretary, but not exceeding $50 per diem, including travel time, and while away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by law (5 U.S.C. 73b-2) for persons in the Government service employed intermittently. "(i)(1) I n connection with any conference called under this section, the Secretary is authorized to require any person whose activities result in the emission of air pollutants causing or contributing to air pollution to file with him, in such form as he may prescribe, a report, based on existing data, furnishing to the Secretary such information as may reasonably be required as to the character, kind, and quantity of pollutants discharged and the use of devices or other means to prevent or reduce the emission of pollutants by the person filing such a report. After a conference has been held with respect to any such pollution the Secretary shall require such reports from the person whose activities result in such pollution only to the extent recommended by such conference. Such report shall be made under oath or otherwise, as the Secretary may prescribe, and shall be filed with the Secretary within such reasonable period as the Secretary may prescribe, unless additional time be granted by the Secretary. No person shall be required in such report to divulge^trade secrets or secret processes and all information reported shall be considered confidential for the purposes of section 1905 of title 18 of the United States Code. "(2) If any person required to file any report under this subsection shall fail to do so within the time fixed by the Secretary for filing the same, and such failure shall continue for thirty days after notice of such default, such person shall forfeit to the United States the sum of $100 for each and every day of the continuance of such failure, which forfeiture shall be payable into the Treasury of the United States, and shall be recoverable in a civil suit in the name of the United States brought in the district where such person has his principal office or in any district in which he does business: Provided, That the

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Secretary may upon application therefor remit or mitigate any forfeiture provided for under this subsection and he shall have authority to determine the facts upon all such applications. "(3) I t shall be the duty of the various United States attorneys, under the direction of the Attorney General of the United States, to prosecute for the recovery of such forfeitures. ii

AUTOMOTIVE V E H I C L E A N D F U E L

POLLUTION

"SEC. 6. (a) The Secretary shall encourage the continued efforts on the part of the automotive and fuel industries to develop devices and fuels to prevent pollutants from being discharged from the exhaust of automotive vehicles, and to this end shall maintain liaison with automotive vehicle, exhaust control device, and fuel manufacturers. For this purpose, he shall appoint a teclinical committee, whose membership shall consist of an equal number of representatives of the Department and of automotive vehicle, exhaust control device, and fuel manufacturers. The committee shall meet from time to time at the call of the Secretary to evaluate progress in the development of such devices and fuels and to develop and recommend research programs which could lead to the development of such devices and fuels. "(b) One year after enactment of this section, and semi-annually Report to thereafter, the Secretary shall report to the Congress on measures ^""^ress. taken toward the resolution of the vehicle exhaust pollution problem and efforts to improve fuels including (A) occurrence of pollution as a result of discharge of pollutants from automotive exhaust; (B) progress of research into development of devices and fuels to reduce pollution from exhaust of automotive vehicles; (C) criteria on degree of pollutant matt/er discharged from automotive exhausts; (D) efforts to improve fuels so as to reduce emission of exhaust pollutants; and (E) his recommendations for additional legislation, if necessary, to regulate the discharge of pollutants from automotive exhausts. "COOPERATION BY FEDERAL AGENCIES TO CONTROL AIR POLLL'TION FROM FEDERAL FACILITIES

"SEC. 7. (a) I t is hereby declared to be the int-ent of Congress that any Federal department or agency having jurisdiction over any building, installation, or other property shall, to the extent practicable and consistent with the interests of the United States and within any available appropriations, cooper-ate with the Department of Health, Education, and Welfare and with any air pollution control agency in preventing and controlling the pollution of the air in any area insofar as the discharge of any matter from or by such building, installation, or other property may cause or contribute to pollution of the air in such area. "(b) I n order to control air pollution which may endanger the health or welfare of any persons, the Secretary may establish classes of potential pollution sources for which any Federal department or agency having jurisdiction ov«r any building, installation, or other property shall, before discharging any matter into the air of the United States, obtain a permit from the Secretary for such discharge, such permits to be issued for a specified period of time to be determined by the Secretary and subject to revocation if the Secretary finds pollution is endangering the health and welfare of any persons. I n connection with the issuance of such permits, there shall be submitted to the Secretary such plans, specifications, and other information as he deems relevant thereto and under such conditions as he may prescribe. The Report to Secretary shall report each January to the Congress the status of such Congress. permits and compliance therewith.

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[77 STAT.

a ADMINISTRATION

58 Stat. 690. 60 stat^. 423*.

"SEC. 8. (a) The Secretary is authorized to prescribe such regulations as are necessary to carry out his functions under this Act. The Secretary may delegate to any officer or employee of the Department of Health, Education, and Welfare such of his powers and duties under this Act,' except the making of regulations, as he may deem necessary or expedient. "(b) Upon the request of an air pollution control agency, personnel of the Public Health Service may be detailed to such agency for the purpose of carrying out the provisions of this Act. The provisions of section 214(d) of the Public Health Service Act shall be applicable with respect to any personnel so detailed to the same extent as if such personnel had been detailed under section 214(b) of that Act. "(c) Payments under grants made under this Act may be made in installments, and in advance or by way of reimbursement, as may be determined by the Secretary. "DEFINITIONS

"SEC. 9. When used in this Act— "(a) The term 'Secretary' means the Secretary of Health, Education, and Welfare. "(b) The term 'air pollution control agency' means any of the following: "(1) A single State agency designated by the Governor of that State as the official State air pollution control agency for purposes of this Act; "(2) An agency established by two or more States and having substantial powers or duties pertaining to the prevention and control of air pollution; " (3) A city, county, or other local government health authority, or, in the case of any city, county, or other local government in which there is an agency other than the health authority charged with responsibility for enforcing ordinances or laws relating to the prevention and control of air pollution, such other agency; or "(4) An agency of two or more municipalities located in the same State or in different States and having substantial powers or duties pertaining to the prevention and control of air pollution. "(c) The term 'interstate air pollution control agency' means— " (1) an air pollution control agency established by two or more States, or " (2) an air pollution control agency of two or more municipalities located in different States. " (d) The term 'State' means a State, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa. "(e) The term 'person' includes an individual, corporation, partnership, association. State, municipality, and political subdivision of a State. " (f) The term 'municipality"' means a city, town, borough, county, )arisli, district, or other public body created by or pursuant to State aw. " (g) All language referring to adverse effects on Avelfare shall include but not be limited to injury to agricultural crops and livestock, damage to and the deterioration of property, and hazards to transportation.

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PUBLIC LAW 88-206-DEC. 17, 1963 "OTHER AUTHORITY NOT AFFECTED

"SEC. 10. (a) Except as provided in subsection (b) of this section, this Act shall not be construed as superseding or limiting the authorities and responsibilities, under any other provision of law, of the Secretary or any other Federal officer, department, or agency. "(b) No appropriation shall be authorized or made under section 301, 311, or 314(c) of the Public Health Service Act for any fiscal ^42 USC 241. year after the fiscal year ending June 30, 1964, for any purpose for 243, 246. which appropriations may be made under authority of this Act. "RECORDS AND

AUDrr

"SEC. 11. (a) Each recipient of assistance under this Act shall keep such records as the Secretary shall prescribe, including records which fully disclose the amount and disposition by such recipient of the proceeds of such assistance, the total cost of the project or undertaking in connection with which such assistance is given or used, and the amount of that portion of the cost of the project or undertaking supplied by other sources, and such other records as will facilitate an effective audit. " (b) The Secretary of Health, Education, and Welfare and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and examinations to any books, documents, papers, and records of the recipients that are pertinent to the grants received under this Act. "SEPARABILITY

"SEC. 12. If any provision of this Act, or the application of any provision of this Act to any person or circumstance, is held invalid, the application of such provision to other persons or circumstances, and the remainder of this Act, shall not be affected thereby. "APPROPRIATIONS

"SEC. 13. (a) There is hereby authorized to be appropriated to carry out section 4 of this Act for the fiscal year ending June 30, 1964, not to exceed $5,000,000. "(b) There is hereby authorized to be appropriated to carry out this Act not to exceed $25,000,000 for the fiscal year ending June 30, 1965, not to exceed $30,000,000 for the fiscal year ending June 30, 1966, and not to exceed $35,000,000 for the fiscal year ending June 30, 1967. "SHORT TITLE

"SEC. 14. This Act may be cited as the 'Clean Air Act'." SEC. 2. The title of such Act of July 14, 1955, is amended to read "An Act to provide for air pollution prevention and control activities of the Department of Health, Education, and Welfare, and for other purposes". Approved December 17, 1963. 93-025 0-64-28

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