§ 1702. Agreements regarding eligible countries and private entities

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1954

   Pub. L. 83–469 · 68 Stat. 396

   Enacted · 7 U.S.C. § 1702

   July 10, 1954, ch. 469, title I, § 102, 68 Stat. 455

   Source evidence

   Code source credit
   July 10, 1954, ch. 469, title I, § 102, 68 Stat. 455

2. 1955

   Public Law not identified

   Struck · 7 U.S.C. § 1702(a)

   Subsec. (a). Act Apr. 25, 1955, struck out requirement that exporters of privately owned stocks acquire an equivalent quantity of Commodity Credit Corporation stocks

   Unresolved: No Public Law or Statutes at Large citation in the Code source.

   Source evidence

   Code amendment note
   Subsec. (a). Act Apr. 25, 1955, struck out requirement that exporters of privately owned stocks acquire an equivalent quantity of Commodity Credit Corporation stocks.

3. 1964

   Pub. L. 88–638 § 1(3) · 78 Stat. 1035

   Changed · 7 U.S.C. § 1702(a)

   Pub. L. 88–638 authorized Commodity Credit Corporation to finance ocean freight charges incurred under agreements entered into after Dec. 31, 1964, to extent such charges are higher because of requirement that commodities be shipped in United States flag vessels, and provided that such agreements require balance of such charges to be paid in dollars

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 88–638 authorized Commodity Credit Corporation to finance ocean freight charges incurred under agreements entered into after Dec. 31, 1964, to extent such charges are higher because of requirement that commodities be shipped in United States flag vessels, and provided that such agreements require balance of such charges to be paid in dollars.

   Enacted provision · exact public law section
   (1) Section 101 of such Act is amended by striking out in subsection (f) the words “from the government or agencies thereof” and further by striking the period at the end of subsection (f) and adding the following: “, and which are not less favorable than the highest of exchange rates obtainable by any other nation.”.

4. 1966

   Food for Peace Act of 1966

   Pub. L. 89–808 § 2(B) · 80 Stat. 1526

   Struck · 7 U.S.C. § 1702

   Pub. L. 89–808 incorporated provisions formerly constituting subsec. (a)(2), and struck out other provisions of subsec. (a) and (a)(1) relating to availability of stocks acquired in price support operations and ocean freight charges, such charges now covered by section 1708 of this title, and subsec. (b) for letters of commitment against funds or guaranties and establishment of accounts

   Source evidence

   Code amendment note
   Pub. L. 89–808 incorporated provisions formerly constituting subsec. (a)(2), and struck out other provisions of subsec. (a) and (a)(1) relating to availability of stocks acquired in price support operations and ocean freight charges, such charges now covered by section 1708 of this title, and subsec. (b) for letters of commitment against funds or guaranties and establishment of accounts.

   Enacted provision · exact public law section
   (B) By amending title I to read as follows: “TITLE I “Sec. 101. In order to carry out the policies and accomplish the objectives set forth in section 2 of this Act, the President is authorized to negotiate and carry out agreements with friendly countries to provide for the sale of agricultural commodities for dollars on credit terms or for foreign currencies. “Sec. 102. For the purpose of carrying out agreements concluded under this Act the Commodity Credit Corporation is authorized to finance the sale and exportation of agricultural commodities whether from private stocks or from stocks of the Commodity Credit Corporation. “Sec. 103. In exercising the authorities conferred upon him by this title, the President shall— “(a) take into account efforts of friendly countries to help themselves toward a greater degree of selfreliance, including efforts to meet their problems of food production and population growth; “(b) take steps to assure a progressive transition from sales for foreign currencies to sales for dollars (or to the extent that transition to sales for dollars under the terms applicable to such sales is not possible, transition to sales for foreign currencies on credit terms no less favorable to the United States than those for development loans made under section 201 of the Foreign Assistance 75 Stat. 426; Ante, p. 796. 22 USC 2161. Act of 1961, as amended, and on terms which permit conversion to dollars at the exchange rate applicable to the sales agreement) at a rate whereby the transition can be completed by December 31, 1971: Provided, That provision may be included in any agreement for payment in foreign currencies to the extent that the President determines that such currencies are needed for the purpose of subsections (a), (b), (c), (e), and (h) of section 104; “(c) take reasonable precautions to safeguard usual marketings of the United States and to assure that sales under this title will not unduly disrupt world prices of agricultural commodities or normal patterns of commercial trade with friendly countries; “(d) make sales agreements only with those countries which he Reports to Congress. determines to be friendly to the United States: Provided, That the President shall periodically review the status of those countries which are eligible under this subsection and report the results of such review to the Congress. As used in this Act, “Friendly country,” exclusions. ‘friendly country’ shall not include (1) any country or area dominated or controlled by a foreign government or organization controlling a world Communist movement, or (2) for the purpose only of sales of agricultural commodities for foreign currencies under title I of this Act, any country or area dominated by a Communist government, or (3) for the purpose only of sales of agricultural commodities under title I of this Act, any nation which sells or furnishes or permits ships or aircraft under its registry to transport to or from Cuba or North Vietnam (excluding United States installations in Cuba) any equipment, materials, or commodities so long as they are governed by a Communist regime: Provided, That with respect to furnishing, selling, or Publication in Federal Register. selling and transporting to Cuba medical supplies, nonstrategic raw materials for agriculture, and nonstrategic agricultural or food commodities, sales agreements may be entered into if the President finds with respect to each such country, and so informs the Senate and the House of Representatives of the reasons therefor, that the making of each such agreement would be in the national interest of the United States and all such findings and reasons therefor shall be published in the Federal Register, or (4) for the purposes only of sales under title I of this Act the United Arab Republic, unless the President determines that such sale is in the national interest of the United States. No sales to the United Arab Republic shall be based upon the requirements of that nation for more than one fiscal year. The President shall keep the President of the Senate and the Speaker of the House of Representatives fully and currently informed with respect to sales made to the United Arab Republic under title I of this Act. Notwithstanding any other Act, the President may enter into agreements for the sale of agricultural commodities for dollars on credit terms under title I of this Act with countries which fall within the definition of ‘friendly country’ for the purpose of such sales and no sales under this Act shall be made with any country if the President finds such country is (a) an aggressor, in a military sense, against any country having diplomatic relations with the United States, or (b) using funds, of any sort, from the United States for purposes inimical to the foreign policies of the United States; “(e) take appropriate steps to assure that private trade channels are used to the maximum extent practicable both with respect to sales from privately owned stocks and with respect to sales from stocks owned by the Commodity Credit Corporation and that small business has adequate and fair opportunity to participate in sales made under the authority of this Act; “(f) give special consideration to the development and expansion of foreign markets for United States agricultural commodities, with appropriate emphasis on more adequate storage, handling, and food distribution facilities as well as longterm development of new and expanding markets by encouraging economic growth; “(g) obtain commitments from purchasing countries that will prevent resale or transshipment to other countries, or use for other than domestic purposes, of agricultural commodities purchased under this title, without specific approval of the President; “(h) 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 in the respective countries and which are not less favorable than the highest of exchange rates obtainable by any other nation; “(i) promote progress toward assurance of an adequate food supply by encouraging countries with which agreements are made to give higher emphasis to the production of food crops than to the production of such nonfood crops as are in world surplus; “(j) exercise the authority contained in title I of this Act to assist friendly countries to be independent of domination or control by any world Communist movement. Nothing in this Act shall be construed as authorizing sales agreements under title I with any government or organization controlling a world Communist movement or with any country with which the United States does not have diplomatic relations; “(k) whenever practicable require upon delivery that not less than 5 per centum of the purchase price of any agricultural commodities sold under title I of this Act be payable in dollars or in the types or kinds of currencies which can be converted into dollars; “(l) obtain commitments from friendly purchasing countries that will insure, insofar as practicable, that food commodities sold for foreign currencies under title I of this Act shall be marked or identified at point of distribution or sale as being provided on a concessional basis to the recipient government through the generosity of the people of the United States of America, and obtain commitments from purchasing countries to publicize widely to their people, by public media and other means, that the commodities are being provided on a concessional basis through the friendship of the American people as food for peace; “(m) require foreign currencies to be convertible to dollars to the extent consistent with the effectuation of the purposes of this Act, but in any event to the extent necessary to (1) permit that portion of such currencies made available for payment of United States obligations to be used to meet obligations or charges payable by the United States or any of its agencies to the government of the importing country or any of its agencies, and (2) in the case of excess currency countries, assure convertibility by sale to American tourists, or otherwise, of such additional amount (up to twenty-five per centum of the foreign currencies received pursuant to each agreement entered into after the effective date of the Food for Peace Act of 1966) as may be necessary to cover all normal expenditures of American tourists in the importing country; “(n) take maximum precautions to assure that sales for dollars on credit terms under this Act shall not displace any sales of United States agricultural commodities which would otherwise be made for cash dollars. “Sec. 104. Notwithstanding any other provision of law, the President may use or enter into agreements with foreign countries or international organizations to use the foreign currencies, including principal and interest from loan repayments, which accrue in connection with sales for foreign currencies under this title for one or more of the following purposes: “(a) For payment of United States obligations (including obligations entered into pursuant to other legislation); “(b) For carrying out programs of United States Government agencies to— “(1) help develop new markets for United States agricultural commodities on a mutually benefiting basis. From sale proceeds and loan repayments under this title not less than the equivalent of 5 per centum of the total sales made each year under this title shall be set aside in the amounts and kinds of foreign currencies specified by the Secretary of Agriculture and made available in advance for use as provided by this paragraph over such period of years as the Secretary of Agriculture determines will most effectively carry out the purpose of this paragraph: Provided, That the Notice of release of foreign currencies. Secretary of Agriculture may release such amounts of the foreign currencies so set aside as he determines cannot be effectively used for agricultural market development purposes under this section, except that no release shall be made Transmittal to congressional committees. until the expiration of thirty days following the date on which notice of such proposed release is transmitted by the President to the Senate Committee on Agriculture and Forestry and to the House Committee on Agriculture, if transmitted while Congress is in session, or sixty days following the date of transmittal if transmitted while Congress is not in session. Provision shall be made in sale and loan agreements for the convertibility of such amount of the proceeds thereof (not less than 2 per centum) as the Secretary of Agriculture determines to be needed to carry out the purpose of this paragraph in those countries which are or offer reasonable potential of becoming dollar markets for United States agricultural commodities. Such sums shall be converted into Special Treasury account. the types and kinds of foreign currencies as the Secretary deems necessary to carry out the provisions of this paragraph and such sums shall be deposited to a special Treasury account and shall not be made available or expended except tor carrying out the provisions of this paragraph. Notwithstanding any other provision of law, if sufficient foreign currencies for carrying out the purpose of this paragraph in such countries are not otherwise available, the Secretary of Agriculture is authorized and directed to enter into agreements with such countries for the sale of agricultural commodities in such amounts as the Secretary of Agriculture determines to be adequate and for the use of the proceeds to carry out the purpose of this paragraph. In carrying out agricultural market development activities, nonprofit agricultural trade organizations shall be utilized to the maximum extent practicable. The purpose of this paragraph shall include such representation of agricultural industries as may be required during the course of discussions on trade programs relating either to individual commodities or groups of commodities; “(2) finance international educational and cultural exchange activities under the programs authorized by the Mutual Educational and Cultural Exchange Act of 1961 (22 U.S.C. 2451 et seq.); 75 Stat. 527. “(3) collect, collate, translate, abstract, and disseminate scientific and technological information and conduct research and support scientific activities overseas including programs and projects of scientific cooperation between the United States and other countries such as coordinated research against diseases common to all of mankind or unique to individual regions of the globe, and promote and support, programs of medical and scientific, research, cultural and educational development, family planning, health, nutrition, and sanitation: “(4) acquire by purchase, lease, rental, or otherwise, sites and buildings and grounds abroad, for United States Government use including offices, residence quarters, community and other facilities, and construct, repair, alter, and furnish such buildings and facilities; “(5) finance under the direction of the Librarian of Congress, in consultation with the National Science Foundation and other interested agencies, (A) programs outside the United States for the analysis and evaluation of foreign books, periodicals, and other materials to determine whether they would provide information of technical or scientific, significance in the United States and whether such books, periodicals, and other materials are of cultural or educational significance, (B) the registry, indexing, binding, reproduction, cataloging, abstracting, translating, and dissemination of books, periodicals, and related materials determined to have such significance: and (C) the acquisition of such books, periodicals, and other materials and the deposit thereof in libraries and research centers in the United States specializing in the areas to which they relate; “(c) To procure equipment, materials, facilities, and services for the common defense including internal security; “(d) For assistance to meet emergency or extraordinary relief requirements other than requirements for food commodifies: Provided, Limitation. That not more than a total amount equivalent to $5,000,000 may be made available for this purpose during any fiscal year; “(e) For use to the maximum extent under the procedures established by such agency as the President shall designate for loans to United States business firms (including cooperatives) and branches, subsidiaries, or affiliates of such firms for business development and trade expansion in such countries, including loans for private home construction, and for loans to domestic or foreign firms (including cooperatives) for the establishment of facilities for aiding in the utilization, distribution, or otherwise increasing the consumption of, and markets for, United States agricultural products: Provided, however, That no such loans shall be made for the manufacture of any products intended to be exported to the United States in competition with products produced in the United States and due consideration shall be given to the continued expansion of markets for United States agricultural commodities or the products thereof. Foreign currencies may be accepted in repayment of such loans; “(f) To promote multilateral trade and agricultural and other economic development, under procedures, established by the. President, by loans or by use in any other manner which the President may determine to be in the national interest of the United States, particularly to assist programs of recipient countries designed to promote, increase, or improve food production, processing, distribution, or marketing in food-deficit countries friendly to the United States, for which purpose the President may utilize to the extent practicable the services of nonprofit voluntary agencies registered with and approved by the Advisory Committee on Voluntary Foreign Aid: Provided, That no such funds may be utilized to promote religious activities; “(g) For the purchase of goods or services for other friendly countries; “(h) For financing, at the request of such country, programs emphasizing maternal welfare, child health and nutrition, and activities, where participation is voluntary, related to the problems of population growth, under procedures established by the President through any agency of the United States, or through any local agency which he determines is qualified to administer such activities; “(i) for paying, to the maximum extent practicable, the costs outside the United States of carrying out the program authorized in section 406 of this Act; and Post, p. 1536. “(j) For sale for dollars to United States citizens and non-profit organizations for travel or other purposes of currencies determined to be in excess of the needs of departments and agencies of the United States for such currencies. The United States dollars received from the sale of such foreign currencies shall be deposited to the account of Commodity Credit Corporation: Provided, That— “(1) Section 1415 of the Supplemental Appropriation Act, 1953, 66 Stat. 662. 31 USC 724. shall apply to currencies used for the purposes specified in subsections (a) and (b), “(2) Section 1415 of the Supplemental Appropriation Act, 1953, shall apply to all foreign currencies used for grants under subsections (f) and (g), to not less than 10 per centum of the foreign currencies which accrue pursuant to agreements entered into on or before December 31, 1964, and to not less than 20 per centum in the aggregate of the foreign currencies which accrue pursuant to agreements entered into thereafter: Provided, however, That the President is authorized to waive such applicability of section 1415 in any case where he determines that it would be inappropriate or inconsistent with the purposes of this title, “(3) No agreement or proposal to grant any foreign currencies Transmittal to congressional committees. (except as provided in subsection (c) of this section), or to use (except pursuant to appropriation Act) any principal or interest from loan repayments under this section shall be entered into or carried out until the expiration of thirty days following the date on which such agreement or proposal is transmitted by the President to the Senate Committee on Agriculture and Forestry and to the House Committee on Agriculture, if transmitted while Congress is in session, or sixty days following the date of transmittal if transmitted while Congress is not in session, “(4) Any loan made under the authority of this section shall bear interest at such rate as the President may determine but not less than the cost of funds to the United States Treasury, taking into consideration the current average market yields on outstanding marketable obligations of the United States having maturity comparable to the maturity of such loans, unless the President shall in specific instances after consultation with the advisory committee established under section 407 designate a different rate: Provided, further, That paragraphs (2), (3), and (4) of the foregoing proviso shall not apply in the case of any nation where the foreign currencies or credits owned by the United States and available for use by it in such nation are determined by the Secretary of the Treasury to be in excess of the normal requirements of the departments and agencies of the United States for expenditures in such nations for the two fiscal years following the fiscal year in which such determination is made. The amount of any such excess shall be devoted to the extent practicable and without regard to paragraph (1) of the foregoing proviso, to the acquisition of sites, buildings, and grounds under paragraph (4) of subsection (b) of this section and to assist such nation in undertaking self-help measures to increase its production of agricultural commodities and its facilities for storage and distribution of such commodities. Assistance under the foregoing provision shall be limited to self-help measures additional to those Reports to congressional committees. which would be undertaken without such assistance. Upon the determination by the Secretary of the Treasury that such an excess exists with respect to any nation, the President shall advise the Senate Committee on Agriculture and Forestry and the House Committee on Agriculture of such determination; and shall thereafter report to each such committee as often as may be necessary to keep such Committee advised as to the extent of such excess, the purposes for which it is used or proposed to be used, and the effects of such use. “Sec. 105. Foreign currencies received pursuant to this Act shall be deposited in a special account to the credit of the United States and shall be used only pursuant to section 104, and any department or agency of the Government using any of such currencies for a purpose for which funds have been appropriated shall reimburse the Commodity Credit Corporation in an amount equivalent to the dollar value of the currencies used. The President shall utilize foreign currencies received pursuant to this Act in such manner as will, to the maximum extent possible, reduce any deficit in the balance of payments of the United States. “Sec. 106. (a) Payment by any friendly country for commodities purchased for dollars on credit shall be upon terms as favorable to the United States as the economy of such country will permit. Payment for such commodities shall be in dollars with interest at such rates as rhe Secretary may determine but not less than the minimum rate 75 Stat. 426; Ante, p. 796. 22 USC 2161. required by section 201 of the Foreign Assistance Act of 1961 for loans made under that section. Payment may be made in reasonable annual amounts over periods of not to exceed twenty years from the date of the last delivery of commodities in each calendar year under the agreement, except that the date for beginning such annual payment may be deferred for a period not later than two years after such date of last delivery, and interest shall be computed from the date of such last delivery. Delivery of such commodities shall be made in annual installments for not more than ten years following the date of the sales agreement and subject to the availability of the commodities at the time delivery is to be made. “(b) Agreements hereunder for the sale of agricultural commodities for dollars on credit terms shall include provisions to assure that the proceeds from the sale of the commodities in the recipient country are used for such economic development purposes as are agreed upon in the sales agreement or any amendment thereto. “Sec. 107. (a) It is also the policy of the Congress to stimulate and maximize the sale of United States agricultural commodities for dollars through the private trade and to further the use of private enterprise to the maximum, thereby strengthening the development and expansion of foreign commercial markets for United States agricultural commodities. In furtherance of this policy, the Secretary of Agriculture is authorized, notwithstanding any other provision of law, to enter into agreements with foreign and United States private trade for financing the sale of agricultural commodities for export over such periods of time and on such credit terms as the Secretary determines will accomplish the objectives of this section. Any agreement entered into under this section shall provide for the development and execution of projects which will result in the establishment of facilities designed to improve the storage or marketing of agricultural commodities, or which will otherwise stimulate and expand private economic enterprise in any friendly country. Any agreement entered into under this section shall also provide for the furnishing of such security as the Secretary determines necessary to provide reasonable and adequate assurance of payment of the purchase price in dollars with interest at a rate which will as nearly as practicable be equivalent to the average cost of funds to the United States Treasury, as determined by the Secretary of the Treasury, on outstanding marketable obligations of the United States having maturities comparable to maturities of credits extended under this section. In no event shall the rate of interest be less than the minimum rate, or the delivery period, deferral of first payment, or term of credit be longer than the maximum term, authorized in section 106. In carrying out this Act, the authority provided in this section for making dollar sales shall be used to the maximum extent practicable. “(b) In carrying out the provisions of this section, the Secretary shall take reasonable precautions to safeguard usual marketings of the United States and to avoid displacing any sales of United States agricultural commodities which the Secretary finds and determines would otherwise be made for cash dollars. “(c) The Secretary shall obtain commitments from purchasers that will prevent resale or transshipment to other countries, or use for other than domestic purposes, of agricultural commodities purchased under this sect ion. “(d) In carryingout this Act, the provisions of sections 102, 103(a), 103(d), 103(e), 103(f), 103(j), 103(k), 110, 401, 402, 403, 404, 405, 407, 408, and 409 shall be applicable to sales under this section. “Sec. 108. The Commodity Credit Corporation may finance ocean Ocean transportation costs. freight charges incurred pursuant to agreements for sales for foreign currencies (other than those providing for conversion to dollars as described in section 103(b) of this Act) entered into hereunder only to the extent that such charges are higher (than would otherwise be the case) by reason of a requirement that the commodities be transported in United States-flag vessels. Such agreements shall require the balance of such charges for transportation in United States vessels to be paid in dollars by the nations or organizations with whom such agreements are entered into. “Sec. 109. (a) Before entering into agreements with developing Self-help measures. countries for the sale of United States agricultural commodities on whatever terms, the President shall consider the extent to which the recipient country is undertaking wherever practicable self-help measures to increase per capita production and improve the means for storage and distribution of agricultural commodities, including: “(1) devoting land resources to the production of needed food rather than to the production of nonfood crops—especially non-food crops in world surplus; “(2) development of the agricultural chemical, farm machinery and equipment, transportation and other necessary industries through private enterprise; “(3) training and instructing farmers in agricultural methods and techniques; “(4) constructing adequate storage facilities: “(5) improving marketing and distribution systems; “(6) creating a favorable environment for private enterprise and investment, both domestic and foreign, and utilizing available technical know-how; “(7) establishing and maintaining Government policies to insure adequate incentives to producers; and “(8) establishing and expanding institutions for adaptive agricultural research; and “(9) allocating for these purposes sufficient national budgetary and foreign exchange resources (including those supplied by bilateral, multilateral and consortium aid programs) and local currency resources (resulting from loans or grants to recipient governments of the proceeds of local currency sales). “(b) Notwithstanding any other provisions of this Act, in agreements with nations not engaged in armed conflict against Communist forces or against nations with which the United States has no diplomatic relations, not less than 20 per centum of the foreign currencies set aside for purposes other than those in sections 104(a), (b), (e), and (j) shall be allocated for the self-help measures set forth in this section. “(c) Each agreement entered into under this title shall describe the program which the recipient country is undertaking to improve its production, storage, and distribution of agricultural commodities; and shall provide for termination of such agreement whenever the President finds that such program is not being adequately developed. “Sec. 110. Agreements shall not be entered into under this title during any calendar year which will call for an appropriation to reimburse the Commodity Credit Corporation in an amount in excess of $1, 900,000,000, plus any amount by which agreements entered into under this title in prior years have called or will call for appropriations to reimburse the Commodity Credit Corporation in amounts less than authorized for such prior years.”

5. 1968

   Pub. L. 90–436 § 9 · 82 Stat. 450

   Inserted · 7 U.S.C. § 1702

   Pub. L. 90–436 inserted proviso that the Commodity Credit Corporation should not finance the sale and export of any agricultural commodities where the exporter has engaged in any sales, trade or commerce with North Vietnam, or with any resident thereof, or which owns or controls any company so engaged, or which is owned or controlled by any company or person so engaged either directly or indirectly, and the further proviso that the financing application be accompanied by a statement in which are listed the branches, etc., in which the applicant has a controlling interest and the companies which have a controlling interest in the applicant company

   Source evidence

   Code amendment note
   Pub. L. 90–436 inserted proviso that the Commodity Credit Corporation should not finance the sale and export of any agricultural commodities where the exporter has engaged in any sales, trade or commerce with North Vietnam, or with any resident thereof, or which owns or controls any company so engaged, or which is owned or controlled by any company or person so engaged either directly or indirectly, and the further proviso that the financing application be accompanied by a statement in which are listed the branches, etc., in which the applicant has a controlling interest and the companies which have a controlling interest in the applicant company.

   Enacted provision · exact public law section
   Sec. 9. Section 102 of the Act is amended by striking out the period Financing for persons engaged in North Vietnam commerce. 7 USC 1702. at the end thereof and adding a colon and the following: “Provided, That the Commodity Credit Corporation shall not finance the side and export of agricultural commodities under this Act for any exporter which is engaging in, or in the six months immediately preceding the application for such financing has engaged in, any sales, trade, or commerce with North Vietnam, or with any resident thereof, or which owns or controls any company which is engaging in, or in such period has engaged in, any such sales, trade, or commerce, or which is owned or controlled by any company or person which is engaging in, or which in such period has engaged in, any such sales, trade, or commerce either directly or through any branch, subsidiary, affiliate, or associated company: Provided further, That such application for financing must be accompanied by a statement in which are listed by name, address, and chief executive officers all branches, affiliates, subsidiaries and associated companies, foreign and domestic, in which the applicant has a controlling interest and similar information for all companies which either directly or through subsidiaries or otherwise have a controlling interest in the applicant company.”

6. 1977

   International Development and Food Assistance Act of 1977

   Pub. L. 95–88 title II § 201(a) · 91 Stat. 533

   1. Struck · 7 U.S.C. § 1702

      Pub. L. 95–88 struck out proviso prohibiting the financing by the Commodity Credit Corporation of the sale and export of agricultural commodities where the exporter had engaged in any sales, trade, or commerce with North Vietnam, or with any resident thereof, or which owned or controlled any company so engaged either directly or indirectly

   2. Struck · 7 U.S.C. § 1702

      Pub. L. 95–88 struck out an additional proviso requiring that financing applications be accompanied by statements in which were listed the branches, etc., in which the applicant had a controlling interest and the companies which had a controlling interest in the applicant company

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 95–88 struck out proviso prohibiting the financing by the Commodity Credit Corporation of the sale and export of agricultural commodities where the exporter had engaged in any sales, trade, or commerce with North Vietnam, or with any resident thereof, or which owned or controlled any company so engaged either directly or indirectly, and struck out an additional proviso requiring that financing applications be accompanied by statements in which were listed the branches, etc., in which the applicant had a controlling interest and the companies which had a controlling interest in the applicant company.

   Enacted provision · exact public law section
   (a) Section 102 of the Agricultural Trade Development and Assistance Act of 1954 is amended by striking out “: Provided,” 7 USC 1702. and all that follows through the end of the section and inserting in lieu thereof a period.

7. 1977

   Food and Agriculture Act of 1977

   Pub. L. 95–113 title XII § 1201 · 91 Stat. 913

   Inserted · 7 U.S.C. § 1702

   Pub. L. 95–113 inserted provisions authorizing the Corporation, when requested by the purchaser of commodities, to serve as the purchasing or shipping agent, or both, in arranging the purchasing or shipping of the commodities

   Source evidence

   Code amendment note
   Pub. L. 95–113 inserted provisions authorizing the Corporation, when requested by the purchaser of commodities, to serve as the purchasing or shipping agent, or both, in arranging the purchasing or shipping of the commodities.

   Enacted provision · exact public law section
   Sec. 1201. authority for the commodity credit corporation to act as purchasing or shipping agent under title i Section 102 of the Agricultural Trade Development and Assistance Act of 1954, as amended, is amended by inserting immediately 7 USC 1702. before the period at the end thereof the following: “and. when requested by the purchaser of such commodities, may serve as the purchasing or shipping agent, or both, in arranging the purchasing or shipping of such commodities”.

8. 1990

   Mickey Leland Food for Peace Act

   Pub. L. 101–624 title XV § 1512 · 104 Stat. 3359

   1. Amended · 7 U.S.C. § 1702

      Pub. L. 101–624 amended section generally

   2. Substituted · 7 U.S.C. § 1702

      Pub. L. 101–624 substituting present provisions for provisions authorizing Commodity Credit Corporation to finance sales from its own and private stocks, and allowing it, upon request, to serve as purchasing and/or shipping agent

   Source evidence

   Code amendment note
   Pub. L. 101–624 amended section generally, substituting present provisions for provisions authorizing Commodity Credit Corporation to finance sales from its own and private stocks, and allowing it, upon request, to serve as purchasing and/or shipping agent.

   Enacted provision · exact public law section
   SEC. 1512. AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954. The Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) is amended to read as follows: “SECTION 1. SHORT TITLE. “This Act may be cited as the ‘Agricultural Trade Development and Assistance Act of 1954’. “SEC. 2. UNITED STATES POLICY. “It is the policy of the United States to use its abundant agricultural productivity to promote the foreign policy of the United States by enhancing the food security of the developing world through the use of agricultural commodities and local currencies accruing under this Act to— “(1) combat world hunger and malnutrition and their causes; “(2) promote broad-based, equitable, and sustainable development, including agricultural development; “(3) expand international trade; “(4) develop and expand export markets for United States agricultural commodities; and “(5) foster and encourage the development of private enterprise and democratic participation in developing countries. “SEC. 3. GLOBAL FOOD AID NEEDS. “In view of the principal findings of the National Research Council of the National Academy of Sciences that doubling food aid above 1990 levels of about 10,000,000 metric tons per year would be necessary to meet projected global food needs throughout the decade of the nineties, it is the sense of Congress that the President should— “(1) increase the contributions of food aid by the United States, and encourage other donor countries to increase their contributions toward meeting new food aid requirements; and “(2) encourage other advanced nations to make increased food aid contributions to combat world hunger and malnutrition, particularly through the expansion of international food and agricultural assistance programs. “TITLE I— TRADE AND DEVELOPMENT ASSISTANCE “SEC. 101. TRADE AND DEVELOPMENT ASSISTANCE. “(a) In General— The President shall establish a program under this title to provide for the sale of agricultural commodities to developing countries for dollars on credit terms, or for local cur-rencies (including for local currencies on credit terms) for use under this title. Such program shall be implemented by the Secretary. “(b) General Authority.— To carry out the policies and accomplish the objectives described in section 2, the Secretary may negotiate and execute agreements with developing countries to finance the sale and exportation of agricultural commodities to such countries. “SEC. 102. ELIGIBLE COUNTRIES. “(a) In General.— A country shall be considered to be a developing country and eligible for assistance under this title if such country has a shortage of foreign exchange earnings and has difficulty meeting all of its food needs through commercial channels, as determined by the Secretary. “(b) Priority.— In determining whether and to what extent agricultural commodities will be made available to developing countries under this title, the Secretary shall give priority to developing countries that— “(1) demonstrate the greatest need for food; “(2) are undertaking measures for economic development purposes to improve food security and agricultural development, alleviate poverty, and promote broad-based equitable and sustainable development; and “(3) have the demonstrated potential to become commercial markets for competitively priced United States agricultural commodities. “SEC. 103. TERMS AND CONDITIONS OF SALES. “(a) Payment.— “(1) Dollars.— Except as provided in paragraph (2), agreements under this title shall require that payment for agricultural commodities be made in dollars. “(2) Local currencies.— “(A) In general.— The Secretary may permit a recipient country to make payment under an agreement under this title in the local currency of such country in order to use the proceeds from such payments to carry out activities under section 104. “(B) Rates of exchange.— Payments in local currency shall be at rates of exchange that are no less favorable than the highest exchange rate legally obtainable in the country and that are no less favorable than the highest exchange rate obtainable by any other country. “(b) Interest.— Such agreements shall provide that interest accrue on the payment deferred under such agreement at a concessional rate as determined appropriate by the Secretary. “(c) Duration.— Payments required under such agreements may be made in reasonable annual amounts over the period (not less than 10 nor more than 30 years from the date of the last delivery of commodities in each year under such agreement) specified in the agreement. “(d) Deferral of Payments.— The Secretary may defer the date on which the recipient country is required to begin making payment, under such agreements, for a period of not in excess of 7 years after the date of the last delivery of commodities in each year under the agreement, and interest shall be computed from the date of such last delivery. “(e) Delivery of Commodities.— Delivery of the commodities shall be made in accordance with the terms of the agreement. “SEC. 104. USE OF LOCAL CURRENCY PAYMENT. “(a) In General.— Agreements under this title may provide that the Secretary shall use payments made in local currencies by the recipient country in accordance with this section. “(b) Special Account.— Foreign currencies received by the Secretary under this title shall be deposited in a separate account, that may be interest-bearing, to the credit of the United States and such currencies and interest thereon shall be used as provided for in this section. “(c) Activities.— The proceeds from the payments referred to in subsection (a) may be used in the recipient country for the following: “(1) Trade development.— To carry out programs to help develop markets for United States agricultural commodities on a mutually beneficial basis in the recipient country. “(2) Agricultural development.— To support— “(A) increased agricultural production, including availability of agricultural inputs, with emphasis on small farms, processing of agricultural commodities, forestry management, and land and water management; “(B) credit policies for private-sector agriculture development; “(C) establishment and expansion of institutions for basic and applied agricultural research and the use of such research through development of extension services; and “(D) programs to control rodents, insects, weeds, and other animal or plant pests. “(3) Agricultural business development loans.— To make loans to United States business entities (including cooperatives) and branches, subsidiaries, or affiliates of such entities for agricultural business development and agricultural trade expansion in such recipient countries. “(4) Agricultural facilities loans.— To make loans to domestic or foreign entities (including cooperatives) for the establishment of facilities for aiding in the utilization or distribution of, or otherwise increasing the consumption of and markets for, United States agricultural products. “(5) Trade promotion.— To promote agricultural trade development, under procedures established by the Secretary, by making loans or through other activities (including trade fairs) that the Secretary determines to be appropriate. “(6) Private sector agricultural trade development.— To conduct private sector agricultural trade development activities in the recipient country, as determined appropriate by the Secretary. “(7) Research.— To conduct research in agriculture, forestry, and aquaculture, including collaborative research which is mutually beneficial to the United States and the recipient country. “(8) United States obligations.— To make payments of United States obligations (including obligations entered into pursuant to other laws). “(d) Fiscal Requirements Regarding Use of Local Currencies.— “(1) Exemption.— Section 1306 of title 31, United States Code, shall not apply to local currencies used by the President under paragraphs (1) through (7) of subsection (c). “(2) Use of currencies by other agencies.— Any department or agency of the Federal Government other than the Department of Agriculture using any such local currencies for a purpose for which funds have been appropriated shall reimburse the Commodity Credit Corporation in an amount equivalent to the dollar value of the currencies used. “SEC. 105. VALUE-ADDED FOODS. “(a) Policy.— Congress declares it to be the policy of the United States to assist developing countries that are or have been recipients of high protein, blended, or fortified foods under title II to continue to combat hunger and malnutrition among the lower income segments of the population of such countries, especially children, through the continued provision of such foods under this title. “(b) Partial Waiver of Repayment.— In implementing the policy declared in subsection (a), the Secretary, in entering into agreements for the sale of high protein, blended, or fortified foods under this title with countries that— “(1) provide assurances that the benefits of any waiver granted under this subsection will be passed on to the individual recipients of such foods; and “(2) have a reasonable potential for transferring benefits of such waiver to commercial purchasers of such foods; may make provisions for a waiver of payment of not to exceed an amount equal to the value of that part of the product that is attributable to the costs of processing, enrichment, or fortification of such product. “(c) Minimize Impact.— In implementing this section, the Secretary shall, to the extent practicable, minimize the impact of this section on other commercial and concessional sales of whole grains. “TITLE II— EMERGENCY AND PRIVATE ASSISTANCE PROGRAMS “SEC. 201. GENERAL AUTHORITY. “The President shall establish a program under this title to provide agricultural commodities to foreign countries on behalf of the people of the United States to— “(1) address famine or other urgent or extraordinary relief requirements; “(2) combat malnutrition, especially in children and mothers; “(3) carry out activities that attempt to alleviate the causes of hunger, mortality and morbidity; “(4) promote economic and community development; “(5) promote sound environmental practices; and “(6) carry out feeding programs. Such program shall be implemented by the Administrator. “SEC. 202. PROVISION OF AGRICULTURAL COMMODITIES. “(a) Emergency Assistance.— Notwithstanding any other provision of law, the Administrator may provide agricultural commodities to meet emergency food needs under this title through governments and public or private agencies, including intergovernmental organizations such as the World Food Program and other multilateral organizations, in such manner and on such terms and conditions as the Administrator determines appropriate to respond to the emergency. “(b) Non-Emergency Assistance.— The Administrator may provide agricultural commodities for non-emergency assistance under this title through eligible organizations (as described in subsection (d)) that have entered into an agreement with the Administrator to use such commodities in accordance with this title. “(c) Uses of Assistance.— Agricultural commodities provided under this title may be made available for direct distribution, sale, barter, or other appropriate disposition. “(d) Eligible Organizations.— To be eligible to receive assistance under subsection (b) an organization shall be— “(1) a private voluntary organization or cooperative that is, to the extent practicable, registered with the Administrator; or “(2) an intergovernmental organization, such as the World Food Program. “(e) Support for Private Voluntary Organizations and Cooperatives.— “(1) In general.— Of the funds made available in each fiscal year under this title to private voluntary organizations and cooperatives, not less than $10,000,000 and not more than $13,500,000 shall be made available by the Administrator to assist such organizations and cooperatives in— “(A) establishing new programs under this title; and “(B) meeting specific administrative, management, personnel and internal transportation and distribution costs for carrying out programs in foreign countries under this title. “(2) Request for funds.— In order to receive funds made available under paragraph (1), a private voluntary organization or cooperative must submit a request for such funds (which must be approved by the Administrator) when submitting a proposal to the Administrator for an agreement under this title. Such request for funds shall include a specific explanation of— “(A) the program costs to be offset by such funds; “(B) the reason why such funds are needed in carrying out the particular assistance program; and “(C) the degree to which such funds will improve the provision of food assistance to foreign countries (particularly those in sub-Saharan Africa suffering from acute, long-term food shortages). “(3) Assistance with respect to sale.— Upon the request of a private voluntary organization or cooperative, the Administrator may provide assistance to that organization or cooperative with respect to the sale of agricultural commodities made available to it under this title. “(f) Effective Use of Commodities.— To ensure that agricultural commodities made available under this title are used effectively and in the areas of greatest need, organizations or cooperatives through which such commodities are distributed shall— “(1) to the extent feasible, work with indigenous institutions and employ indigenous workers; “(2) assess and take into account nutritional and other needs of beneficiary groups; “(3) help such beneficiary groups design and carry out mutually acceptable projects; “(4) recommend to the Administrator methods of making assistance available that are the most appropriate for each local setting; “(5) supervise the distribution of commodities provided and the implementation of programs carried out under this title; and “(6) periodically evaluate the effectiveness of projects undertaken under this title. “(g) Labeling.— Commodities provided under this title shall, to the extent practicable, be clearly identified with appropriate markings on the package or container of such commodity in the language of the locality in which such commodities are distributed, as being furnished by the people of the United States of America. “SEC. 203. GENERATION AND USE OF FOREIGN CURRENCIES BY PRIVATE VOLUNTARY ORGANIZATIONS AND COOPERATIVES. “(a) Local Sale and Barter of Commodities.— An agreement entered into between the Administrator and a private voluntary organization or cooperative to provide food assistance through such organization or cooperative under this title may provide for the sale or barter in the recipient country of the commodities to be provided under such agreement. “(b) Minimum Level of Local Sales.— In carrying out agreements of the type referred to in subsection (a), the Administrator shall permit private voluntary organizations and cooperatives to sell, in recipient countries, an amount of commodities equal to not less than 10 percent of the aggregate amounts of all commodities distributed under non-emergency programs under this title for each fiscal year, to generate foreign currency proceeds to be used as provided in this section. “(c) Description of Intended Uses.— A private voluntary organization or cooperative submitting a proposal to enter into a non-emergency food assistance agreement under this title shall include in such proposal a description of the intended uses of any foreign currency proceeds that may be generated through the sale, in the recipient country, of any commodities provided under an agreement entered into between the Administrator and the organization or cooperative. “(d) Use.— Foreign currencies generated from any partial or full sale or barter of commodities by a private voluntary organization or cooperative under a non-emergency food assistance agreement under this title may— “(1) be used to transport, store, distribute, and otherwise enhance the effectiveness of the use of agricultural commodities provided under this title; “(2) be used to implement income generating, community development, health, nutrition, cooperative development, agricultural, and other developmental activities within the recipient country; or “(3) be invested and any interest earned on such investment may be used for the purposes for which the assistance was provided to that organization, without further appropriation by Congress. “SEC. 204. LEVELS OF ASSISTANCE. “(a) Minimum Levels.— “(1) Minimum assistance.— Except as provided in paragraph (3), the Administrator shall make agricultural commodities available for food distribution under this title in an amount that— “(A) for fiscal year 1991, is not less than 1,925,000 metric tons; “(B) for fiscal year 1992, is not less than 1,950,000 metric tons; “(C) for fiscal year 1993, is not less than 1,975,000 metric tons; “(D) for fiscal year 1994, is not less than 2,000,000 metric tons; and “(E) for fiscal year 1995, is not less than 2,025,000 metric tons. “(2) Minimum non-emergency assistance.— Of the amounts specified in paragraph (1), and except as provided in paragraph (3), the Administrator shall make agricultural commodities available for non-emergency food distribution through eligible organizations under section 202 in an amount that— “(A) for fiscal year 1991, is not less than 1,450,000 metric tons; “(B) for fiscal year 1992, is not less than 1,475,000 metric tons; “(C) for fiscal year 1993, is not less than 1,500,000 metric tons; “(D) for fiscal year 1994, is not less than 1,525,000 metric tons; and “(E) for fiscal year 1995, is not less than 1,550,000 metric tons. “(3) Exception.— The Administrator may waive the requirements of paragraphs (1) and (2) for any fiscal year if the Administrator determines that such quantities of commodities cannot be used effectively to carry out this title or in order to meet an emergency. In making a waiver under this paragraph, Reports. the Administrator shall prepare and submit to the Committee on Foreign Affairs and Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report containing the reasons for the waiver. “(b) Use of Value-Added Commodities.— “(1) Minimum levels.— Except as provided in paragraph (2), in making agricultural commodities available under this title, the Administrator shall ensure that not less than 75 percent of the quantity of such commodities required to be distributed during each fiscal year under subsection (a)(2) be in the form of processed, fortified, or bagged commodities. “(2) Waiver of minimum.— The Administrator may waive the requirement of paragraph (1) for any fiscal year in which the Administrator determines that the requirements of the programs established under this title will not be best served by the enforcement of such requirement under such paragraph. “SEC. 205. FOOD AID CONSULTATIVE GROUP. “(a) Establishment.— There is established a Food Aid Consultative Group (hereinafter referred to in this section as the ‘Group’) that shall meet regularly to review and address issues concerning the effectiveness of the regulations and procedures that govern food assistance programs established and implemented under this title, and the implementation of other provisions of this title that may involve private voluntary organizations, cooperatives and indigenous non-governmental organizations. “(b) Membership.— The Group shall be composed of— “(1) the Administrator; “(2) the Under Secretary for International Affairs and Commodity Programs; “(3) the Inspector General of the Agency for International Development; “(4) a representative of each private voluntary organization and cooperative participating in a program under this title, or receiving planning assistance funds from the Agency to establish programs under this title; and “(5) representatives from African, Asian and Latin American indigenous non-governmental organizations determined appropriate by the Administrator. “(c) Chairperson.— The Administrator shall be the chairperson of the Group. “(d) Consultations.— In preparing regulations, handbooks, or guidelines implementing this title, or significant revisions thereto, the Administrator shall provide such proposals to the Group for review and comment. The Administrator shall consult and, when appropriate, meet with the Group regarding such proposed regulations, handbooks, guidelines, or revisions thereto prior to the issuance of such. “(e) Advisory Committee Act.— The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Group. “(f) Termination.— The Group shall terminate on December 31, 1995. “SEC. 206. MAXIMUM LEVEL OF EXPENDITURES. “(a) Maximum Expenditures.— Except as provided in subsection (b), programs of assistance shall not be undertaken under this title during any fiscal year if such programs necessitate an appropriation of more than $1,000,000,000 to reimburse the Commodity Credit Corporation for all costs incurred in connection with such programs (including the Corporation’s investment in commodities made available). “(b) Waiver by President.— The President may waive the limitation contained in subsection (a) if the President determines that such waiver is necessary to undertake programs of assistance to meet urgent humanitarian or emergency needs. “SEC. 207. ADMINISTRATION. “(a) Proposals.— “(1) Time for decision.— Not later than 45 days after the receipt by the Administrator of a proposal submitted— “(A) by a private voluntary organization or cooperative, with the concurrence of the appropriate United States field mission, for commodities; or “(B) by a United States field mission to make commodities available to a private voluntary organization or cooperative; under this title, the Administrator shall make a decision concerning such proposal. “(2) Denial.— If a proposal under paragraph (1) is denied, the response shall specify the reasons for denial and the conditions that must be met for the approval of such proposal. “(b) Notice and Comment.— Not later than 30 days prior to the issuance of a final guideline to carry out this title, the Administrator shall— “(1) provide notice of the existence of a proposed guideline, and that such guideline is available for review and comment, to private voluntary organizations and cooperatives that participate in programs under this title, and to other interested persons; “(2) make the proposed guideline available, on request, to the organizations, cooperatives, and other persons referred to in paragraph (1); and “(3) take any comments received into consideration prior to the issuance of the final guideline. “(c) Regulations.— “(1) In general.— The Administrator shall promptly issue all necessary regulations and make revisions to agency guidelines with respect to changes in the operation or implementation of the program established under this title. “(2) Requirements.— The Administrator shall develop regulations with the intent of— “(A) simplifying procedures for participation in the programs established under this title; “(B) reducing paperwork requirements under such programs; “(C) establishing reasonable and realistic accountability standards to be applied to eligible organizations participating in the programs established under this title, taking into consideration the problems associated with carrying out programs in developing countries; and “(D) providing flexibility for carrying out programs under this title. “(3) Handbooks.— Handbooks developed by the Administrator to assist in carrying out the program under this title shall be designed to foster the development of programs under this title by eligible organizations. “(d) Deadline for Submission of Commodity Orders.— Not later than 15 days after receipt from a United States field mission of a call forward for agricultural commodities for programs that meet the requirements of this title, the order for the purchase or the supply, from inventory, of such commodities or products shall be transmitted to the Commodity Credit Corporation. “TITLE III— FOOD FOR DEVELOPMENT “SEC. 301. BILATERAL GRANT PROGRAM. “(a) In General.— The President shall establish a program under President. which agricultural commodities are donated in accordance with this title to least developed countries. The revenue generated by the sale of such commodities in the recipient country may be utilized for economic development activities. Such program shall be implemented by the Administrator. “(b) General Authority.— To carry out the policies and accomplish the objectives described in section 2, the Administrator may negotiate and execute agreements with least developed countries to provide commodities to such countries on a grant basis. “SEC. 302. ELIGIBLE COUNTRIES. “(a) Least Developed Countries.— A country shall be considered to be a least developed country and eligible for the donation of agricultural commodities under this title if— “(1) such country meets the poverty criteria established by the International Bank for Reconstruction and Development for Civil Works Preference for providing financial assistance; or “(2) such country is a food deficit country and is characterized by high levels of malnutrition among significant numbers of its population, as determined by the Administrator under subsection (b). “(b) Indicators of Food Deficit Countries.— To make a finding under subsection (a)(2) that a country is a food deficit country and is characterized by high levels of malnutrition, the Administrator must determine that the country meets all of the following indicators of national food deficit and malnutrition: “(1) Calorie consumption.— That the daily per capita calorie consumption of the country is less than 2300 calories. “(2) Food security requirements.— That the country cannot meet its food security requirements through domestic production or imports due to a shortage of foreign exchange earnings. “(3) Child mortality rate.— That the mortality rate of children under 5 years of age in the country is in excess of 100 per 1000 births. “(c) Priority.— In determining whether and to what extent agricultural commodities shall be made available to least developed countries under this title, the Administrator shall give priority to countries that— “(1) demonstrate the greatest need for food; “(2) demonstrate the capacity to use food assistance effectively; “(3) have demonstrated a commitment to policies to promote food security, including policies to reduce measurably hunger and malnutrition through efforts such as establishing and institutionalizing supplemental nutrition programs targeted to reach those who are nutritionally at risk; and “(4) have a long-term plan for broad-based, equitable, and sustainable development. “SEC. 303. GRANT PROGRAMS. “To carry out the policies and accomplish the objectives described in section 2, the Administrator may negotiate and execute agreements with least developed countries to provide commodities to such countries on a grant basis either through the Commodity Credit Corporation or through private trade channels. “SEC. 304. DIRECT USES OR SALES OF COMMODITIES. “Agricultural commodities provided to a least developed country under this section— “(1) may be used in such country for— “(A) direct feeding programs, including programs that include activities that deal directly with the special health needs of children and mothers consistent with section 104(c)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 2151b(c)(2)), relating to the Child Survival Fund; or “(B) the development of emergency food reserves; or “(2) may be sold in such country by the government of the country or the Administrator (or their designees) as provided in the agreement, and the proceeds of such sale used in accordance with this title. “SEC. 305. LOCAL CURRENCY ACCOUNTS. “(a) Retention of Proceeds.— To the extent determined to be appropriate by the Administrator, revenues generated from the sale, under section 304(2), of agricultural commodities provided under this title shall be deposited into a separate account (that may be interest bearing) in the recipient country to be disbursed for the benefit of such country in accordance with local currency agreements entered into between the recipient country and the Administrator. The Administrator may determine not to deposit such revenues in a separate account if— “(1) local currencies are to be programmed for specific economic development purposes listed in section 306(a); and “(2) the recipient country programs an equivalent amount of money for such purposes as specified in an agreement entered into by the Administrator and the recipient country. “(b) Ownership and Programming of Accounts.— The proceeds of sales pursuant to section 304(2) shall be the property of the recipient country or the United States, as specified in the applicable agreement. Such proceeds shall be utilized for the benefit of the recipient country, shall be jointly programmed by the Administrator and the government of the recipient country, and shall be disbursed for the benefit of such country in accordance with local currency agreements between the Administrator and that government. “(c) Overall Development Strategy.— The Administrator shall consider the local currency proceeds as an integral part of the overall development strategy of the Agency for International Development and the recipient country. “SEC. 306. USE OF LOCAL CURRENCY PROCEEDS. “(a) In General.— The local currency proceeds of sales pursuant to section 304(2) shall be used in the recipient country for specific economic development purposes, including— “(1) the promotion of specific policy reforms to improve food security and agricultural development within the country and to promote broad-based, equitable, and sustainable development; “(2) the establishment of development programs, projects, and Nutrition. Family planning. Maternal and child health. activities that promote food security, alleviate hunger, improve nutrition, and promote family planning, maternal and child health care, oral rehydration therapy, and other child survival objectives consistent with section 104(c)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 2151b(c)(2)), relating to the Child Survival Fund; “(3) the promotion of increased access to food supplies through the encouragement of specific policies and programs designed to increase employment and incomes within the country; “(4) the promotion of free and open markets through specific policies and programs; “(5) support for United States private voluntary organizations and cooperatives and encouragement of the development and utilization of indigenous nongovernmental organizations; “(6) the purchase of agricultural commodities (including transportation and processing costs) produced in the country— “(A) to meet urgent or extraordinary relief requirements in the country or in neighboring countries; or “(B) to develop emergency food reserves; “(7) the purchase of goods and services (other than agricultural commodities and related services) to meet urgent or extraordinary relief requirements; “(8) the payment, to the extent practicable, of the costs of carrying out the program authorized in title V; “(9) private sector development activities designed to further the policies set forth in section 2, including loans to financial intermediaries for use in making loans to private individuals, cooperatives, corporations, or other entities; “(10) activities of the Peace Corps that relate to agricultural production; “(11) the development of rural infrastructure such as roads, irrigation systems, and electrification to enhance agricultural production; “(12) research on malnutrition and its causes, as well as research relating to the identification and application of policies and strategies for targeting resources made available under this section to address the problem of malnutrition; and “(13) support for research (including collaborative research which is mutually beneficial to the United States and the recipient country), education, and extension activities in agricultural sciences. Section 1306 of title 31, United States Code, shall not apply to the use under this subsection of local currency proceeds that are owned by the United States. “(b) Support of Indigenous Non-Governmental Organizations.— To the extent practicable, not less than 10 percent of the amounts contained in an account established for a recipient country under section 305(a) shall be used by such country to support the development and utilization of indigenous nongovernmental organizations and cooperatives that are active in rural development, agricultural education, sustainable agricultural production, other measures to assist poor people, and environmental protection projects within such country. “(c) Investment of Local Currencies by Nongovernmental Organizations.— A nongovernmental organization may invest local currencies that accrue to that organization as a result of assistance under subsection (a), and any interest earned on such investment may be used for the purpose for which the assistance was provided to that organization without further appropriation by the Congress. “(d) Support for Certain Educational Institutions.— If the Administrator determines that local currencies deposited in a special account pursuant to this title are not needed for any of the activities prescribed in paragraphs (1) through (13) of subsection (a) or for any other specific economic development purpose in the recipient country, the Administrator may use those currencies to provide support for any institution (other than an institution whose primary purpose is to provide religious education) located in the recipient country that provides education in agricultural sciences or other disciplines for a significant number of United States nationals (who may include members of the United States Armed Forces or the Foreign Service or dependents of such members). “TITLE IV— GENERAL AUTHORITIES AND REQUIREMENTS “SEC. 401. COMMODITY DETERMINATIONS. “(a) Available Commodities.— After consulting with other agencies of the Federal Government affected and within policies established by the President for implementing this Act, and after taking into consideration productive capacity, domestic requirements, farm and consumer price levels, commercial exports, and adequate carry-over, the Secretary shall determine, prior to the beginning of each fiscal year, the agricultural commodities and quantities thereof available for disposition under this Act. “(b) Modification.— The Secretary may, during the fiscal year, modify a determination made under subsection (a) if the Secretary provides to the Congress prior notice of that modification (including a statement of the reasons for the modification). “(c) Commodities Not Available.— No commodity shall be available for disposition under this Act if such disposition would reduce the domestic supply of such commodity below that needed to meet domestic requirements, adequate carryover, and anticipated exports for dollars as determined by the Secretary, unless the Secretary determines that some part of the supply should be used to carry out urgent humanitarian purposes under this Act. “(d) Policies for Implementing Act.— The Secretary shall, to the extent practicable, seek to maintain a stable level of available agricultural commodities under this Act of the kind and type needed to provide food assistance to developing countries and should attempt to make such commodities available to the degree necessary to fulfill multi-year agreements entered into under this Act. “(e) Ineligible Commodities.— “(1) Alcoholic beverages.— Alcoholic beverages shall not be made available for disposition under this Act. “(2) Tobacco.— Tobacco or the products thereof shall not be made available under section 303 or title II of this Act. “(f) Market Development Activities.— Subsection (e)(1) shall not be construed to prohibit representatives of the United States wine, beer, distilled spirits, or other alcoholic beverage industry from participating in agricultural market development activities carried out by the Secretary with foreign currencies made available under title I of this Act. “SEC. 402. DEFINITIONS. “As used in this Act: “(1) Administrator.— The term ‘Administrator’ means the Administrator of the Agency for International Development, unless otherwise specified in this Act. “(2) Agricultural commodity.— The term ‘agricultural commodity’, unless otherwise provided for in this Act, includes any agricultural commodity or the products thereof produced in the United States, including wood and processed wood products, fish, and livestock as well as value-added, fortified, or high-value agricultural products. Effective beginning on October 1, 1991, for purposes of title II, a product of an agricultural commodity shall not be considered to be produced in the United States if it contains any ingredient that is not produced in the United States, if that ingredient is produced and is commercially available in the United States at fair and reasonable prices. “(3) Cooperative.— The term ‘cooperative’ means a private sector organization whose members own and control the organization and share in its services and its profits and that provides business services and outreach in cooperative development for its membership. “(4) Developing country.— The term ‘developing country’ means a country that has a shortage of foreign exchange earnings and has difficulty meeting all of its food needs through commercial channels. “(5) Food security.— The term ‘food security’ means access by all people at all times to sufficient food and nutrition for a healthy and productive life. “(6) Indigenous nongovernmental organization.— The term ‘indigenous nongovernmental organization’ means an organization that operates under the laws of the recipient country, or that has its principal place of activity in such country, and that works at the local level to solve development problems in the foreign country in which it is located, except that the term does not include an organization that is primarily an agent or instrumentality of the foreign government. “(7) Private voluntary organization.— The term ‘private voluntary organization’ means a not-for-profit, nongovernmental organization (in the case of a United States organization, an organization that is exempt from Federal income taxes under section 501(c)(3) of the Internal Revenue Code of 1986) that receives funds from private sources, voluntary contributions of money, staff time, or in-kind support from the public, and that is engaged in or is planning to engage in voluntary, charitable, or development assistance activities (other than religious activities). “(8) Secretary.— The term ‘Secretary’ means the Secretary of Agriculture, unless otherwise specified in this Act. “SEC. 403. GENERAL PROVISIONS. “(a) Prohibition.— No agricultural commodity shall be made available under this Act unless it is determined that— “(1) adequate storage facilities will be available in the recipient country at the time of the arrival of the commodity to prevent the spoilage or waste of the commodity; and “(2) the distribution of the commodity in the recipient country will not result in a substantial disincentive to or interference with domestic production or marketing in that country. “(b) Consultations.— The Secretary or the Administrator, as appropriate, shall consult with representatives from the International Monetary Fund, the International Bank for Reconstruction and Development, the World Bank, and other donor organizations to ensure that the importation of United States agricultural commodities and the use of local currencies for development purposes will not have a disruptive impact on the farmers or the local economy of the recipient country. “(c) Transshipment.— The Secretary or the Administrator, as appropriate, shall, under such terms and conditions as are determined to be appropriate, require commitments from countries designed to prevent or restrict the resale or transshipment to other countries, for use for other than domestic purposes, of agricultural commodities donated or purchased under this Act. “(d) Private Trade Channels and Small Business.— Private trade channels shall be used under this Act to the maximum extent practicable in the United States and in the recipient countries with respect to— “(1) sales from privately owned stocks; “(2) sales from stocks owned by the Commodity Credit Corporation; and “(3) donations. Small businesses shall be provided adequate and fair opportunity to participate in such sales. “(e) World Prices.— In carrying out this Act, reasonable precautions shall be taken to assure that sales or donations of agricultural commodities will not unduly disrupt world prices for agricultural commodities or normal patterns of commercial trade with foreign countries. “(f) Publicity.— Commitments shall be obtained from countries receiving commodities under this Act that such countries will widely publicize, to the extent practicable, through the use of the public media and through other means, that such commodities are being provided through the friendship of the American people as food for peace. “(g) Participation of Private Sector.— The Secretary or the Administrator, as appropriate, shall encourage the private sector of the United States and private importers in developing countries to participate in the programs established under this Act. “(h) Safeguard Usual Marketings.— In carrying out this Act, reasonable precautions shall be taken to safeguard the usual marketings of the United States and to avoid displacing any sales of the United States agricultural commodities that the Secretary or Administrator determines would otherwise be made. “(i) Military Distribution of Food Aid.— “(1) In general.— The Secretary or the Administrator, as appropriate, shall attempt to ensure that agricultural commodities made available under this Act will be provided without regard to the political affiliation, geographic location, ethnic, tribal, or religious identity of the recipient or without regard to other extraneous factors. “(2) Prohibition on handling of commodities by the military.— “(A) In general.— Except as provided in subparagraph (B), the Secretary or the Administrator, as appropriate, shall not enter into an agreement under this Act to provide agricultural commodities if such agreement requires or permits the distribution, handling, or allocation of such commodities by the military forces of any government or insurgent group. “(B) Exception.— Notwithstanding subparagraph (A), the Secretary or the Administrator, as appropriate, may authorize the handling or distribution of commodities by the military forces of a country in exceptional circumstances in which— “(i) nonmilitary channels are not available for such handling or distribution; “(ii) such action is consistent with the requirements of paragraph (1); and “(iii) the Secretary or the Administrator, as appropriate, determines that such action is necessary to meet the emergency health, safety, or nutritional requirements of the recipient population. “(C) Report.— Not later than 30 days after an authorization is provided under subparagraph (B), the Secretary or the Administrator, as appropriate, shall prepare and submit to the appropriate Committees of Congress a report concerning such authorization and include in any such report the reason for the authorization, including an explanation of why no alternatives to such handling or distribution were available. “(3) Encouragement of safe passage.— When entering into agreements under this Act that involve areas within recipient countries that are experiencing protracted warfare or civil strife, the Secretary or the Administrator, as appropriate, shall, to the extent practicable, encourage all parties to the conflict to permit safe passage of the commodities and other relief supplies and to establish safe zones for medical and humanitarian treatment and evacuation of injured persons. “(j) Violations of Human Rights.— “(1) Ineligible countries.— The Secretary or the Administrator, as appropriate, shall not enter into any agreement under this Act to provide agricultural commodities, or to finance the sale of agricultural commodities, to the government of any country determined by the President to engage in a consistent pattern of gross violations of internationally recognized human rights, including— “(A) the torture or cruel, inhuman, or degrading treatment or punishment of individuals; “(B) the prolonged detention of individuals without charges; “(C) the responsibility for causing the disappearance of individuals through the abduction and clandestine detention of such individuals; or “(D) other flagrant denials of the right to life, liberty, and the security of persons. “(2) Waiver.— Paragraph (1) shall not prohibit the provision of assistance to such a country if the assistance is targeted to the most needy people in such country and is made available in such country through channels other than the government. “(k) Abortion Prohibition.— Local currencies that are made available for use under this Act may not be used to pay for the performance of abortions as a method of family planning or to motivate or coerce any person to practice abortions. “SEC. 404. AGREEMENTS. “(a) In General.— Before entering into agreements under titles I and III for the provision of commodities, the Secretary or the Administrator, as appropriate, shall consider the extent to which the recipient country is undertaking measures for economic develop-ment purposes in order to improve food security and agricultural development, alleviate poverty, and promote broad-based, equitable, and sustainable development. “(b) Terms of Agreement.— An agreement entered into under this Act shall— “(1) include an estimate of the annual value or volume of agricultural commodities proposed to be made available to the country or eligible organization under the agreement; “(2) with respect to agreements entered into under titles I and III, include a statement of the manner in which the agricultural commodities provided under the agreement or the revenues generated by the sale of such commodities (if such commodities are sold), will be integrated into the overall development plans of the country to improve food security and agricultural development, alleviate poverty, and promote broad-based, equitable, and sustainable agriculture; “(3) with respect to agreements entered into under titles I and III, include a statement of the manner in which competitive private sector participation within the recipient country in the storage, marketing, transportation, and distribution of agricultural commodities made available under this Act will be encouraged; “(4) include a statement that such agreement shall be subject to the availability, during each fiscal year to which the agreement applies, of the necessary appropriations and agricultural commodities; and “(5) contain such other terms and conditions as the Secretary or the Administrator, as appropriate, determines to be necessary. “(c) Multi-year Agreements.— “(1) In general.— Agreements to provide assistance on a multi-year basis under this Act shall be made available to recipient countries or to eligible organizations. “(2) Exception.— The Secretary or the Administrator, as appropriate, may determine not to make assistance available on a multi-year basis with respect to a recipient country or an eligible organization if it is determined that assistance should be provided to such country or through such organization only on an annual basis because— “(A) the past performance of the country or organization in meeting program objectives does not warrant a multi-year agreement; “(B) it is anticipated that the need of the country or organization for food aid does not extend beyond 1 year; or “(C) other circumstances, as determined by the Secretary or the Administrator, as appropriate, indicate there is only a need for a 1 year agreement. “(d) Review of Agreements.— The Secretary or the Administrator, as appropriate, may make a determination to terminate, or refuse to enter into, a multi-year agreement with respect to a recipient country if the Secretary or the Administrator determines that such country is not fulfilling the objectives or requirements of this Act. In making such a determination, the Secretary or the Administrator, as appropriate, may consider the extent to which the country is— “(1) making significant economic development reforms; “(2) promoting free and open markets for food and agricultural producers; and “(3) fostering increased food security. “SEC. 405. CONSULTATION. “The Secretary and the Administrator shall cooperate and consult in the implementation of this Act. “SEC. 406. USE OF COMMODITY CREDIT CORPORATION. “(a) In General.— The Commodity Credit Corporation shall acquire and make available such agricultural commodities (that have been determined to be available under section 401(a)) as necessary to carry out agreements under this Act. “(b) Included Expenses.— With respect to commodities made available under this Act, the Commodity Credit Corporation may pay— “(1) the cost of acquiring such commodities; “(2) the costs associated with packaging, enrichment, preservation, and fortification of such commodities; “(3) the processing, transportation, handling, and other incidental costs up to the time of the delivery of such commodities free on board vessels in United States ports; “(4) the ocean freight charges from United States ports to designated ports of entry abroad; “(5) the costs associated with transporting such commodities from United States ports to designated points of entry abroad in the case— “(A) of landlocked countries; “(B) of ports that cannot be used effectively because of natural or other disturbances; “(C) of the unavailability of carriers to a specific country; or “(D) of substantial savings in costs or items that may be effected by the utilization of points of entry other than ports; “(6) in the case of commodities for urgent and extraordinary relief requirements (including pre-positioned commodities) the transportation costs incurred in moving the commodities from designated points of entry or ports of entry abroad to storage and distribution sites and associated storage and distribution costs; and “(7) the charges for general average contributions arising out of the ocean transport of commodities transferred pursuant thereto. “(c) Commodity Credit Corporation.— The funds, facilities, and authorities of the Commodity Credit Corporation may be used to carry out this Act. “SEC. 407. ADMINISTRATIVE PROVISIONS. “(a) Title I Programs.— “(1) Acquisitions.— The importing country shall acquire the agricultural commodities to be financed under title I. “(2) Invitation for bid.— No purchase of agricultural commodities from private stock or purchase of ocean transportation shall be financed under title I unless such purchases are made on the basis of an invitation for bid that is publicly advertised in the United States, and on the basis of bid offerings that shall conform to such invitation and be received and publicly opened in the United States. All awards in the purchase of commodities or ocean transportation financed under title I shall be consistent with open, competitive, and responsive bid procedures, as determined appropriate by the Secretary. “(b) Reporting of Fees.— “(1) Requirement.— Notwithstanding any other provision of law, any commission, fee, or other compensation of any kind paid, or to be paid, by any supplier of an agricultural commodity, or any ocean transportation financed or agricultural commodity donated by the Commodity Credit Corporation under title I to any agents, brokers, or other representatives of the importer or importing country shall be reported to the Secretary by the supplier of the commodity or ocean transportation. “(2) Content.— A report filed under paragraph (1) shall identify the person or entity to whom the payment is made and the amount of the commission or fees paid. “(3) Publication of information.— The Secretary shall— “(A) maintain all information provided under this section for public inspection; “(B) annually publish a report containing the information referred to in subparagraph (A); and “(C) forward a copy of the annual report referred to in subparagraph (B) to the appropriate committees of Congress. “(4) Failure to file.— A supplier of a commodity or ocean transportation who fails to file a report required under this subsection, or who files a false report, shall be ineligible to furnish, directly or indirectly, commodities or ocean transportation financed under title I for a period of not to exceed 5 years. “(c) Agents.— “(1) Authority of the Secretary or Commodity Credit Corporation.— “(A) General rule.— Except as provided in subparagraph (B), if it is determined appropriate, the Secretary or the Commodity Credit Corporation may serve as the purchasing or shipping agent, or both, for the importing country in arranging the purchase or shipping of commodities financed under this section. “(B) Exception.— Notwithstanding subparagraph (A), the Secretary or the Commodity Credit Corporation may award, under a competitive bidding process, contracts for establishing freight agents who shall act on behalf of the Secretary or the Corporation to handle the shipping of commodities financed under this Act. “(C) Avoidance of conflict of interest of contractors.— Freight agents employed by the Secretary or the Commodity Credit Corporation under title I shall not represent any other foreign government during the period of their contract with the United States Government. “(2) Reasonable fees and commissions.— “(A) Fees.— Notwithstanding any other provision of law, the Secretary or the Commodity Credit Corporation may enter into an agreement with the importing country that contains the terms and conditions that will govern the provision of purchasing or shipping agent services by the Secretary or the Corporation, including the establishment of fees for such services. Any such fees shall be fair and reasonable in relation to the services performed and shall be available as reimbursement for costs incurred in providing such services. “(B) Prohibition on commissions.— Commissions, fees, or other payments to any selling agent or to any agent of a purchaser shall be prohibited in the purchase of agricultural commodities that are financed under this Act. “(3) Limitations.— No commission, fees, or other payments to an agent, broker, consultant, or other representative of the importer or importing country for ocean transportation brokerage services in connection with the carriage of commodities provided under this Act may— “(A) be paid in excess of an amount determined appropriate by the Secretary; and “(B) be shared by such person with the importer or importing country or any agent thereof. “(4) Avoidance of conflict of interest.— A person may not be an agent, broker, consultant, or other representative of the United States Government, an importer, or an importing country in connection with agricultural commodities provided under this Act during a fiscal year in which such person acts as an agent, broker, consultant, or other representative if the person is engaged in providing ocean transportation-related services for such commodities. For the purpose of this paragraph, the term ‘transportation-related services’ means lightening, stevedoring, bagging, or inland transportation to the destination point. “(d) Title II and III Program.— “(1) Acquisition.— The Administrator shall transfer, arrange for the transportation, and take other steps necessary to make available agricultural commodities to be provided under title II and title III. “(2) Full and Open Competition.— No purchase of agricultural commodities from private stocks or purchase of ocean transportation services by the United States Government shall be financed under titles II and III unless such purchases are made on the basis of full and open competition utilizing such procedures as are determined necessary and appropriate by the Administrator. “(3) Avoidance of conflict of interest.— Freight agents employed by the Agency for International Development under titles II and III shall not represent any other foreign government during the period of their contract with the United States Government. “(4) Ocean Transportation Services.— Notwithstanding any provision of the Federal Property Act of 1949, as amended, or other similar provisions relating to the making or performance of Federal Government contracts, the Administrator may procure ocean transportation services under this Act under such full and open competitive procedures as the Administrator determines are necessary and appropriate. “(e) Timing of Shipments.— In determining the timing of the shipment of agricultural commodities to be provided under this Act, the Secretary or the Administrator, as appropriate, shall consider— “(1) the time of harvest of any competing commodities in the recipient country; and “(2) such other concerns determined to be appropriate. “(f) Deadline for Agreements Under Titles I and III.— An agreement under titles I and III shall, to the extent practicable, be entered into not later than— “(1) November 30 of the first fiscal year in which agricultural commodities are to be shipped under the agreement; or “(2) 60 days after the date of enactment of the annual Rural Development, Agriculture, and Related Agencies Appropriations Act for the first fiscal year in which agricultural commodities are to be shipped under the agreement, whichever is later. “(g) Annual Reports.— “(1) In general.— The President shall prepare an annual report concerning the programs and activities implemented under this Act for the preceding fiscal year. “(2) Contents.— Each report shall include— “(A) the countries and organizations receiving food and other assistance provided to each country and organization under this Act; “(B) a general description of the projects or activities implemented under this Act, including local currency funded activities; and “(C) a statement of the amount of agricultural commodities made available to each country pursuant to section 416(b) of the Agricultural Act of 1949 and the Food for Progress Act of 1985. “(3) Submission.— The President shall submit such report not later than January 15 of each year to the Committee on Agriculture and the Committee on Foreign Affairs of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. “(h) World Food Day Report.— On World Food Day, October 16 President. of each year, the President shall submit to the appropriate committees of Congress a report, prepared with the assistance of the Secretary and the Administrator, assessing progress towards food security in each country receiving United States Government food assistance. Special emphasis should be given in such report to the nutritional status of the poorest populations in such countries. “SEC. 408. EXPIRATION DATE. “No agreements to finance sales or to provide other assistance under this Act shall be entered into after December 31, 1995. “SEC. 409. REGULATIONS. “Not later than 180 days after the date of enactment of this Act, regulations shall be issued to implement the provisions of this Act. “SEC. 410. INDEPENDENT EVALUATION OF PROGRAMS. “(a) Title I Program.— Not later than 2 years after the date of enactment of this Act, and 2 years thereafter, the Comptroller General of the United States shall select five countries that receive assistance under title I that are representative of all countries in three geographic regions and evaluate the uses of the funds under title I in such countries with respect to the impact of such uses on agricultural development, agricultural trade development, and the financial management of those funds, with reference to personnel requirements to manage these funds. “(b) Title II Program.— Not later than 2 years after the date of enactment of this Act, and 2 years thereafter, the Comptroller General of the United States shall select five countries that receive assistance under title II that are representative of all countries in three geographic regions and evaluate the uses of the assistance provided under such title, including an evaluation of the impact of such assistance on enhancing food security in such countries and an evaluation of the use of local currencies for economic development, as well as the financial management of those funds, with reference to personnel requirements to manage these funds. “(c) Title III Program.— Not later than 2 years after the date of enactment of this Act, and 2 years thereafter, the Comptroller General of the United States shall select five countries that receive assistance under title III that are representative of all such countries in three geographic regions and evaluate— “(1) the uses of the commodities provided under such title in such countries; and “(2) the uses of the special account funds established in such countries under title III; with respect to the impact of such uses and funds on enhancing food security, including nutrition, in such countries and the financial management of those funds, with reference to personnel requirements to manage such funds. “(d) Report to Congress.— The Comptroller General of the United States shall prepare and submit, to the Committee on Foreign Affairs and the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a report concerning the evaluations made under this section. “SEC. 411. DEBT FORGIVENESS. “(a) Authority.— The President, taking into account the financial resources of a country, may waive payments of principal and interest that such country would otherwise be required to make to the Commodity Credit Corporation under dollar sales agreements under this title if— “(1) that country is a least developed country; and “(2) either— “(A) an International Monetary Fund standby agreement is in effect with respect to that country; “(B) a structural adjustment program of the International Bank for Reconstruction and Development or of the International Development Association is in effect with respect to that country; “(C) a structural adjustment facility, enhanced structural adjustment facility, or similar supervised arrangement with the International Monetary Fund is in effect with respect to that country; or “(D) even though such an agreement, program, facility, or arrangement is not in effect, the country is pursuing national economic policy reforms that would promote democratic, market-oriented, and long term economic development. “(b) Request for Debt Relief by President.— The President may provide debt relief under subsection (a) only if a notification is submitted to Congress. Such a notification shall— “(1) specify the amount of official debt the President proposes to liquidate; and “(2) identify the countries for which debt relief is proposed and the basis for their eligibility for such relief. “(c) Appropriations Action Required.— The aggregate amount of principal and interest waived under this section may not exceed the amount approved for such purpose in an Act appropriating funds to carry out this Act. “(d) Limitation on New Credit Assistance.— If the authority of this section is used to waive payments otherwise required to be made by a country pursuant to this Act, the President may not provide any new credit assistance for that country under this Act during the 2-year period beginning on the date such waiver authority is exercised, unless the President provides to the Congress, before the assistance is provided, a written justification for the provision of such new credit assistance. “(e) Applicability.— The authority of this section applies with respect to credit sales agreements entered into before the date of enactment of this Act. “SEC. 412. AUTHORIZATION OF APPROPRIATIONS. “(a) Reimbursement.— There are authorized to be appropriated such sums as may be necessary to carry out— “(1) the concessional credit sales program established under title I; “(2) the emergency and private assistance program under title II; and “(3) the grant program established under title III, including such amounts as may be required to make payments to the Commodity Credit Corporation to the extent the Commodity Credit Corporation is not reimbursed under the programs under this Act for the actual costs incurred or to be incurred by such Corporation in carrying out such programs. “(b) Limitations.— Of the amounts made available in each fiscal year to carry out titles I and III, not less than— “(1) 40 percent shall be made available to carry out the credit sales program established under title I; and “(2) 40 percent shall be made available to carry out the grant program established under title III. “(c) Transfer of Funds.— Notwithstanding any other provision of law and except as provided in subsection (b), if the President determines it to be necessary for purposes of this Act, the President may direct that not in excess of 15 percent of the funds available in any fiscal year for carrying out any title of this Act be used to carry out any other title of this Act. “(d) Budget.— In presenting the Budget of the United States, the President. President shall classify expenditures under this Act as expenditures for international affairs and finance rather than for agriculture and agricultural resources. “(e) Value of Commodities.— Notwithstanding any other provision of law, in determining the reimbursement due the Commodity Credit Corporation for all expenses incurred under this Act, commodities from the inventory of the Commodity Credit Corporation that were acquired under title I of the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) shall be valued at a price not greater than the export market price for such commodities, as determined by the Secretary, as of the time such commodity is made available under this Act. “SEC. 413. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS. “To the maximum extent practicable, assistance for a foreign country under this Act shall be coordinated and integrated with United States development assistance objectives and programs for that country and with the overall development strategy of that Nutrition. Child welfare. country. Special emphasis should be placed on, and funds devoted to, activities that will increase the nutritional impact of programs of assistance under this Act, and child survival programs and projects, in least developed countries by improving the design and implementation of such programs and projects. “SEC. 414. ASSISTANCE IN FURTHERANCE OF NARCOTICS CONTROL OBJECTIVES OF THE UNITED STATES. (a) Substantial Injury.— Local currencies that are made available for use under this Act may not be used to finance the production for export of agricultural commodities (or products thereof) that would compete in the world market with similar agricultural commodities (or products thereof) produced in the United States, if such competition would cause substantial injury to the United States producers, as determined by the President. (b) Exception for Narcotics Control.— Notwithstanding subsection (a), the President may provide assistance under this Act, including assistance through the use of local currencies generated by the sale of commodities under such Act, for economic development activities undertaken in an eligible country that is a major illicit drug producing country (as defined in section 481(i)(2) of the Foreign Assistance Act of 1961), for the purpose of reducing the dependence of the economy of such country on the production of crops from which narcotic and psychotropic drugs are derived. “TITLE V— FARMER-TO-FARMER PROGRAM “SEC. 501. FARMER-TO-FARMER PROGRAM. “(a) In General.— To further assist developing countries, middle-income countries, and emerging democracies to increase farm production and farmer incomes, the President may, notwithstanding any other provision of law— “(1) establish and administer a program of farmer-to-farmer assistance between the United States and such countries to assist in increasing food production and distribution and improving the effectiveness of the farming and marketing operations of farmers; “(2) utilize United States farmers, agriculturalists, land grant universities, private agribusinesses, and nonprofit farm organizations to work in conjunction with farmers and farm organizations in such countries, on a voluntary basis, to facilitate the improvement of farm and agribusiness operations and agricultural systems in such countries, including animal care and health, field crop cultivation, fruit and vegetable growing, livestock operations, food processing and packaging, farm credit, marketing, inputs, agricultural extension, and the strengthening of cooperatives and other farmer groups; “(3) transfer the knowledge and expertise of United States agricultural producers and businesses, on a people-to-people basis, to such countries while enhancing the democratic process by supporting private and public, agriculturally related organizations that request and support technical assistance activities through cash and in-kind services; “(4) to the extent practicable, enter into contracts or other Government contracts. Grant programs. cooperative agreements with or make grants to private voluntary organizations, cooperatives, land grant universities, private agribusiness, or nonprofit farm organizations to carry out this section (except that any such contract or other agreement may obligate the United States to make outlays only to the extent that the budget authority for such outlays is available pursuant to subsection (c) or has otherwise been provided in advance in appropriation Acts); “(5) coordinate programs established under this section with other foreign assistance activities carried out by the United States; and “(6) to the extent practicable, augment the funds available for programs established under this section through the use of foreign currencies that accrue from the sale of agricultural commodities under this Act, and local currencies generated from other types of foreign assistance activities. “(b) Definitions.— The following definitions apply for purposes of this section: “(1) Emerging democracy.— The term ‘emerging democracy’ means a country that is taking steps toward— “(A) political pluralism, based on progress toward free and fair elections and a multiparty political system; “(B) economic reform, based on progress toward a market-oriented economy; “(C) respect for internationally recognized human rights; and “(D) a willingness to build a friendly relationship with the United States. “(2) Middle income country.— The term ‘middle income country’ means a country that has developed economically to the point where it does not receive bilateral development assistance from the United States. “(c) Minimum Funding.— Notwithstanding any other provision of law, not less than 0.2 percent of the amounts made available for each of the fiscal years 1991 through 1995 to carry out this Act, in addition to any funds that may be specifically appropriated to carry out this section, shall be used to carry out programs under this section, with not less than 0.1 percent to be used for programs in developing countries. “TITLE VI— ENTERPRISE FOR THE AMERICAS INITIATIVE “SEC. 601. ESTABLISHMENT OF THE FACILITY. “There is established in the Department of the Treasury an entity to be known as the ‘Enterprise for the Americas Facility’(hereafter referred to in this title as the ‘Facility’). “SEC. 602. PURPOSE. “The purpose of this title is to encourage and support improvement in the lives of the people of Latin America and the Caribbean through market-oriented reforms and economic growth with interrelated actions to promote debt reduction, investment reforms, and community-based conservation and sustainable use of the environment. The Facility will support such objectives through the administration of debt reduction operations relating to those countries that meet investment reform and other policy conditions provided for in this title. “SEC. 603. ELIGIBILITY FOR BENEFITS UNDER THE FACILITY. “(a) Requirements.— To be eligible for benefits from the Facility under this title, a country shall— “(1) be a Latin American or Caribbean country; “(2) have in effect or have received approval for, or, as appropriate in exceptional circumstances, be making significant progress towards the establishment of— “(A) an International Monetary Fund (hereafter referred to in this title as the ‘IMF’) standby arrangement, extended IMF arrangement, or an arrangement under the structural adjustment facility or enhanced structural adjustment facility, or in exceptional circumstances, an IMF-monitored program or its equivalent; and “(B) as appropriate, structural or sectoral adjustment loans from the International Bank for Reconstruction and Development (hereafter referred to in this title as the ‘World Bank’) or the International Development Association (hereafter referred to in this title as the ‘IDA’); “(3) have placed into effect major investment reforms in conjunction with an Inter-American Development Bank (hereafter referred to as the ‘IDB’) loan or otherwise be implementing, or making significant progress towards an open investment regime; and “(4) if appropriate, have agreed with its commercial bank lenders on a satisfactory financing program, including, as appropriate, debt or debt service reduction. “(b) Eligibility Determination.— The President shall determine whether a country is an eligible country for purposes of subsection (a). “SEC. 604. REDUCTION OF CERTAIN DEBT. “(a) Authority to Reduce Debt.— “(1) In general.— Notwithstanding any other provision of law, the President may reduce the amount owed to the United States or any agency of the United States, and outstanding as of January 1, 1990, as a result of any credits extended under title I to a country eligible for benefits from the Facility. “(2) Availability of appropriations.— The authorities under this section may be exercised only to the extent provided for in advance in appropriation Acts. “(b) Limitation.— A debt reduction authorized under subsection (a) shall be accomplished, at the direction of the Facility, through the exchange of a new obligation under this title for obligations of the type referred to in subsection (a) outstanding as of January 1, 1990. “(c) Exchange of Obligations.— The Facility shall notify the Commodity Credit Corporation of an agreement entered into under subsection (b) with an eligible country to exchange a new obligation for outstanding obligations. At the direction of the Facility, the old obligations that are the subject of the agreement may be canceled and a new debt obligation may be established for the country relating to the agreement. The Commodity Credit Corporation shall make an adjustment in its accounts to reflect a debt reduction under this section. “SEC. 605. REPAYMENT OF PRINCIPAL. “(a) Currency of Payment.— The principal amount owed under each new obligation issued under section 604 shall be repaid in United States dollars. “(b) Deposit of Payments.— Principal repayments on new obligations issued under section 604 shall be deposited in Commodity Credit Corporation accounts. “SEC. 606. INTEREST OF NEW OBLIGATIONS. “(a) Rate of Interest.— New obligations issued to an eligible country under section 604 shall bear interest at a concessional rate. “(b) Currency of Payment, Deposits.— “(1) United states dollars.— An eligible country to which a new obligation has been issued under section 604 that has not entered into an agreement under section 607, shall be required to pay interest on such obligation in United States dollars which shall be deposited in Commodity Credit Corporation accounts. “(2) Local currency.— If an eligible country to which a new obligation has been issued under section 604 has entered into an agreement under section 607, interest under such obligation may be paid in the local currency of the eligible country and deposited into an Environmental Fund as provided for in section 608. Such interest shall be the property of the eligible country until such time as it is disbursed under section 608. Such local currencies shall be used for the purposes specified in the agreement entered into under section 607. “(c) Interest Previously Paid.— If an eligible country to which a new obligation has been issued under section 604 enters into an agreement under section 607 subsequent to the date on which interest first becomes due on such new obligation, any interest paid on such new obligation prior to such agreement being entered into shall not be redeposited into the Fund established for the eligible country under section 608(a) but shall be deposited into Commodity Credit Corporation. “SEC. 607. ENVIRONMENTAL FRAMEWORK AGREEMENTS. “(a) Authority.— The President is authorized to enter into an environmental framework agreement with each country eligible for benefits from the Facility concerning the operation and use of an Enterprise for the Americas Environmental Fund (hereafter referred to in this title as the ‘Environmental’ Fund) established President. under section 608 for that country. The President shall consult with the Board established under section 610 when entering into such agreements. “(b) Requirements.— An environmental framework agreement entered into under this section shall— “(1) require the eligible country to establish an Environmental Fund; “(2) require the eligible country to make interest payments under section 608(a) into the Environmental Fund; “(3) require the eligible country to make prompt disbursements from the Environmental Fund to the body described in subsection (c); “(4) where appropriate, seek to maintain the value of the local currency resources deposited into the appropriate Environmental Fund in terms of United States dollars; “(5) specify, in accordance with section 612, the purposes for which the Environmental Fund may be used; and “(6) contain reasonable provisions for the enforcement of the terms of the agreement. “(c) Administering Body.— Funds disbursed from the Environmental Fund in an eligible country shall be administered by a body constituted under the laws of the country. Such body shall— “(1) be composed of— “(A) one or more representatives appointed by the President; “(B) one or more representatives appointed by the eligible country; and “(C) representatives from a broad range of environmental and local community development nongovernmental organizations of the host country; the majority of which shall be local representatives from non-governmental organizations, and scientific or academic bodies; “(2) receive proposals for grant assistance from local organizations, and make grants to such organizations in accordance with the priorities agreed upon in the framework agreement and consistent with the overall purposes of section 612; “(3) be responsible for the management of the program and oversight of grant activities funded from resources of the Environmental Fund; “(4) be subject to fiscal audits by an independent auditor on an annual basis; “(5) present an annual program for review by the Board established under section 610 each year; “(6) present an annual report on the activities undertaken during the previous year to the Chairman of the Board established under section 610, and the government of the eligible country each year; and “(7) have any grant over $100,000 be subject to veto by the United States and the government of the eligible country. “SEC. 608. ENTERPRISE FOR THE AMERICAS ENVIRONMENTAL FUNDS. “(a) Establishment.— An eligible country shall, under the terms of an environmental framework agreement entered into under section 607, establish an Environmental Fund to receive payments in local currency pursuant to section 607(b)(1). “(b) Investment.— Amounts deposited into an Environmental Fund shall be invested until disbursed. Notwithstanding any other provision of law, any return on such investment may be retained by the Environmental Fund and need not be deposited to the account of the Commodity Credit Corporation and may be retained without further appropriation by Congress. “SEC 609. DISBURSEMENT OF ENVIRONMENTAL FUNDS. “Funds in an Environmental Fund shall be disbursed only pursuant to a framework agreement entered into pursuant to section 607. “SEC. 610. ENVIRONMENT FOR THE AMERICAS BOARD. “(a) Establishment.— There is established a board to be known as the ‘Environment for the Americas Board’ (hereafter referred to in this title as the ‘Board’). “(b) Membership and Chairperson.— “(1) Membership.— The Board shall be composed of— “(A) five representatives from the United States Government; and “(B) four representatives from private nongovernmental environmental, community development, scientific, and academic organizations with experience and expertise in Latin America and the Caribbean; to be appointed by the President. “(2) Chairperson.— The Board shall be headed by a chairperson who shall be appointed by the President from among the representatives appointed under paragraph (1)(A). “(c) Responsibilities.— The Board shall— “(1) advise the President on the negotiations for the environmental framework agreements described in subsections (a) and (b) of section 607; “(2) ensure, in consultation with the government of the appropriate eligible country, with nongovernmental organizations of such eligible country, and if appropriate, of the region, and with environmental, scientific, and academic leaders of such eligible country and, as appropriate, of the region, that a suitable body referred to in section 607(c) is identified; and “(3) review the programs, operations, and fiscal audits of the bodies referred to in section 607(c). “SEC. 611. OVERSIGHT. “The President may designate appropriate United States agencies to review the implementation of programs under this title and the fiscal audits relating to such programs. Such oversight shall not constitute active management of an Environmental Fund. “SEC. 612. ELIGIBLE ACTIVITIES AND GRANTEES. “(a) Eligible Entities.— Activities eligible to receive assistance through the framework agreements entered into under section 607, shall include— “(1) activities of the type described in the Global Environmental Protection Assistance Act of 1989 (22 U.S.C. 462), and— “(2) agriculture-related activities, including those that provide for the biological prevention and control of animal and plant pests and diseases, to benefit the environment; and “(3) local community initiatives that promote conservation and sustainable use of the environment. “(b) Regulation.— All activities of the type referred to in subsection (a) shall, where appropriate, include initiatives that link conservation of natural resources with local community development. “(c) Setting of Priorities.— Appropriate activities and priorities relating to the use of an Environmental Fund shall be set by local nongovernmental organizations within the appropriate eligible country. “(d) Grants.— Grants may be made by the body referred to in section 607(c) from the Environmental Fund for environmental purposes to— “(1) host country nongovernmental environmental, conservation, development, educational, and indigenous peoples organizations; “(2) other appropriate local or regional entities; or “(3) in exceptional circumstances, the government of the eligible country. “(e) Priority.— In providing assistance from an Environmental Fund, the body established under section 607(c) within the eligible country shall give priority to projects that are run by nongovernmental organizations and other private entities, and that involve local communities in their planning and execution. “SEC. 613. ENCOURAGING MULTILATERAL DEBT DONATIONS. “(a) Encouraging Donations From Official Creditors.— The President should actively encourage other official creditors of an eligible country to provide debt reduction to such eligible country. “(b) Encouraging Donations From Other Sources.— The President shall make every effort to insure that programs established through Environmental Funds are able to receive donations from private and public entities, and private creditors of the eligible country. “SEC. 614. ANNUAL REPORT TO CONGRESS. “Not later than December 31 of each fiscal year, the President shall prepare and submit to the Speaker of the House of Representatives and the President Pro Tempore of the Senate an annual report concerning the operation of the Facility for the prior fiscal year.”.

9. 1996

   Federal Agriculture Improvement and Reform Act of 1996

   Pub. L. 104–127 title II § 203 · 110 Stat. 888

   1. Amended · 7 U.S.C. § 1702

      Pub. L. 104–127 amended section generally

   2. Substituted · 7 U.S.C. § 1702

      Pub. L. 104–127 substituting present provisions for provisions outlining eligibility of developing countries for assistance under this subchapter and factors in determining priority for assistance

   Source evidence

   Code amendment note
   Pub. L. 104–127 amended section generally, substituting present provisions for provisions outlining eligibility of developing countries for assistance under this subchapter and factors in determining priority for assistance.

   Enacted provision · exact public law section
   SEC. 203. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE ENTITIES. Section 102 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1702) is amended to read as follows: “SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE ENTITIES. “(a) Priority.— In selecting agreements to be entered into under this title, the Secretary shall give priority to agreements providing for the export of agricultural commodities to developing countries that— “(1) have the demonstrated potential to become commercial markets for competitively priced United States agricultural commodities; “(2) are undertaking measures for economic development purposes to improve food security and agricultural development, alleviate poverty, and promote broad-based equitable and sustainable development; and “(3) demonstrate the greatest need for food. “(b) Private Entities.— An agreement entered into under this title with a private entity shall require such security, or such other provisions as the Secretary determines necessary, to provide reasonable and adequate assurance of repayment of the financing extended to the private entity. “(c) Agricultural Market Development Plan.— “(1) Definition of agricultural trade organization.— In this subsection, the term ‘agricultural trade organization’ means a United States agricultural trade organization that promotes the export and sale of a United States agricultural commodity and that does not stand to profit directly from the specific sale of the commodity. “(2) Plan.— The Secretary shall consider a developing country for which an agricultural market development plan has been approved under this subsection to have the demonstrated potential to become a commercial market for competitively priced United States agricultural commodities for the purpose of granting a priority under subsection (a). “(3) Requirements.— “(A) In general.— To be approved by the Secretary, an agricultural market development plan shall— “(i) be submitted by a developing country or private entity, in conjunction with an agricultural trade organization; “(ii) describe a project or program for the development and expansion of a commercial market for a United States agricultural commodity in a developing country, and the economic development of the country, using funds derived from the sale of agricultural commodities received under an agreement described in section 101; “(iii) provide for any matching funds that are required by the Secretary for the project or program; “(iv) provide for a results-oriented means of measuring the success of the project or program; and “(v) provide for graduation to the use of non-Federal funds to carry out the project or program, consistent with requirements established by the Secretary. “(B) Agricultural trade organization.— The project or program shall be designed and carried out by the agricultural trade organization. “(C) Additional requirements.— An agricultural market development plan shall contain such additional requirements as are determined necessary by the Secretary. “(4) Administrative costs.— “(A) In general.— The Secretary may make funds made available to carry out this title available for the reimbursement of administrative expenses incurred by agricultural trade organizations in developing, implementing, and administering agricultural market development plans, subject to such requirements and in such amounts as the Secretary considers appropriate. “(B) Duration.— The funds may be made available to agricultural trade organizations for the duration of the applicable agricultural market development plan. “(C) Termination.— The Secretary may terminate assistance made available under this subsection if the agricultural trade organization is not carrying out the approved agricultural market development plan.”.

10. 2008

    Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 3005(1) · 122 Stat. 1651

    1. Redesignated · 7 U.S.C. § 1702(a)

       Pub. L. 110–246, § 3005(1), redesignated pars. (2) and (3) as (1) and (2), respectively

    2. Struck · 7 U.S.C. § 1702(a)

       Pub. L. 110–246, § 3005(1), struck out former par. (1) which read as follows: “have the demonstrated potential to become commercial markets for competitively priced United States agricultural commodities;”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 110–246, § 3005(1), redesignated pars. (2) and (3) as (1) and (2), respectively, and struck out former par. (1) which read as follows: “have the demonstrated potential to become commercial markets for competitively priced United States agricultural commodities;”.

    Enacted provision · exact public law section
    (1) in subsection (a)— (A) by striking paragraph (1); and (B) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively; and

    Effective date note
    Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

11. 2008

    Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 3005(2) · 122 Stat. 1651

    Struck · 7 U.S.C. § 1702(c)

    Pub. L. 110–246, § 3005(2), struck out subsec. (c) which related to agricultural market development plan pursuant to which a developing country could demonstrate potential to become a commercial market for competitively priced United States agricultural commodities for the purpose of being granted a priority under former subsec. (a)(1)

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 110–246, § 3005(2), struck out subsec. (c) which related to agricultural market development plan pursuant to which a developing country could demonstrate potential to become a commercial market for competitively priced United States agricultural commodities for the purpose of being granted a priority under former subsec. (a)(1).

    Enacted provision · exact public law section
    (2) by striking subsection (c).

    Effective date note
    Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

13 of 15 references resolved to an enrolled provision · 1 partial · 1 unresolved