SUBCHAPTER II—ECONOMIC ASSISTANCE AND FOOD SECURITY
§1701. Economic assistance and food security
(a) In general
The President shall establish a program under this subchapter to provide for the sale of agricultural commodities to developing countries and private entities for dollars on credit terms, or for local currencies (including for local currencies on credit terms) for use under this subchapter. Such program shall be implemented by the Secretary.
(b) General authority
To carry out the policies and accomplish the objectives described in section 1691 of this title, the Secretary may negotiate and execute agreements with developing countries and private entities to finance the sale and exportation of agricultural commodities to such countries and entities.
(July 10, 1954, ch. 469, title I, §101, 68 Stat. 455; Pub. L. 85–931, §1, Sept. 6, 1958, 72 Stat. 1790; Pub. L. 87–128, title II, §201(1), Aug. 8, 1961, 75 Stat. 306; Pub. L. 88–205, pt. IV, §403(a), Dec. 16, 1963, 77 Stat. 390; Pub. L. 88–638, §1(1), (2), Oct. 8, 1964, 78 Stat. 1035; Pub. L. 89–808, §2(B), Nov. 11, 1966, 80 Stat. 1526; Pub. L. 97–113, title IV, §401(1), Dec. 29, 1981, 95 Stat. 1537; Pub. L. 99–198, title XI, §1111(c), Dec. 23, 1985, 99 Stat. 1474; Pub. L. 100–202, §8, Dec. 22, 1987, 101 Stat. 1329–447; Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3633; Pub. L. 104–127, title II, §202, Apr. 4, 1996, 110 Stat. 951; Pub. L. 110–246, title III, §3004(b), June 18, 2008, 122 Stat. 1822.)
Editorial Notes
Amendments
2008—Pub. L. 110–246 substituted "Economic assistance and food security" for "Trade and development assistance" in section catchline.
1996—Subsec. (a). Pub. L. 104–127, §202(1), inserted "and private entities" after "developing countries".
Subsec. (b). Pub. L. 104–127 inserted "and private entities" after "developing countries" and "and entities" after "such countries".
1990—Pub. L. 101–624 amended section generally, substituting present provisions for provisions authorizing President to negotiate agreements with friendly countries for sales of commodities for dollars on credit terms, or for foreign currencies, on credit or on terms permitting conversion to dollars, setting minimum level for sales in foreign currencies, limiting extent of sales for foreign currency to amounts that can be productively used in private sector of foreign country, and requiring that sales for foreign currency through financial intermediaries be on terms and conditions specified in agreements.
1987—Subsec. (b)(1). Pub. L. 100–202, §8(1), inserted provisions which required for each of fiscal years 1988 through 1990 that each agreement provide for some sale of foreign currencies for use under section 1708 of this title unless the President determines that the level of agricultural commodities furnished under this subchapter will be significantly reduced as a result of this sentence.
Subsec. (b)(2). Pub. L. 100–202, §8(2), inserted ", or enter into sales agreements not providing for sales for foreign currencies for use under section 1708 of this title," after "currencies".
1985—Pub. L. 99–198 in amending section generally, incorporated existing text in provisions designated subsec. (a) and added subsecs. (b) to (d).
1981—Pub. L. 97–113 substituted ", to the extent that sales for dollars under the terms applicable to such sales are not possible, for foreign currencies on credit terms and on terms which permit conversion to dollars at the exchange rate applicable to the sales agreement" for "for foreign currencies".
1966—Pub. L. 89–808 substituted "agreements with friendly countries to provide for the sale of agricultural commodities for dollars on credit terms or for foreign currencies" for "agreements with friendly nations or organizations of friendly nations to provide for the sale of surplus agricultural commodities for foreign currencies" and struck out subsecs. (a) to (d), (f), and (g), relating to safeguarding usual marketings and disruption of world prices and normal patterns of commercial trade with friendly countries, use of private channels to maximum extent practicable, development and expansion of foreign markets, restrictive commitments from participating countries, exchange rates, and currency conversion, now covered by section 1703(c), (e) to (h), and (m)(1) of this title, respectively, and subsec. (e), relating to maximum opportunity for friendly nation to purchase surplus agricultural commodities.
1964—Subsec. (f). Pub. L. 88–638, §1(1), inserted ", and which are not less favorable than the highest of exchange rates obtainable by any other nation", and struck out "from the government or agencies thereof" before "in the respective countries".
Subsec. (g). Pub. L. 88–638, §1(2), added subsec. (g).
1963—Subsec. (f). Pub. L. 88–205 substituted "the highest of exchange rates legally obtainable from the Government or agencies thereof" for "the rates at which United States Government agencies can buy currencies from the United States disbursing officers".
1961—Subsec. (f). Pub. L. 87–128 added subsec. (f).
1958—Subsec. (a). Pub. L. 85–931 required President to take reasonable precautions to assure that sales of surplus commodities would not disrupt normal patterns of commercial trade with friendly countries.
Statutory Notes and Related Subsidiaries
Effective Date of 2008 Amendment
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.
Effective Date of 1990 Amendment
Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.
Effective Date of 1966 Amendment
Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title.
Emergency Food Assistance to India
Pub. L. 90–7, Apr. 1, 1967, 81 Stat. 7, provided: "That the Congress approves the participation of the United States in cooperation with other countries and with multilateral organizations, including the International Bank for Reconstruction and Development, the Organization for Economic Cooperation and Development, the Food and Agriculture Organization, and others, in urgent international efforts designed to—
"(a) develop a comprehensive self-help approach to the war on hunger based on a fair sharing of the burden among the nations of the world;
"(b) encourage and assist the Government of India in achieving food self-sufficiency; and
"(c) help meet India's critical food and nutritional needs by making available agricultural commodities or other resources needed for food procurement or production.
"Because uncertainty in connection with Public Law 480 transactions tends to depress market prices, it is the sense of Congress that, in carrying out this Aid to India program, the Administration should, subject to the requirement of section 401 of Public Law 480 [section 1731 of this title] with respect to the availability of the commodity at the time of exportation, make announcements of intention, purchases and shipments of commodities on schedules and under circumstances which will protect and strengthen farm market prices to the maximum extent possible.
"The Congress endorses the President's policy of equal participation on the part of the United States with all other nations, under terms and conditions set forth in Public Law 480, as amended [this chapter], in assisting the Government of India to meet these needs.
"Further, the Congress recommends, on the basis of estimates now available, that the United States provide an additional amount of food grain not to exceed three million tons at an estimated cost of $190,000,000 as the United States share toward meeting the India food deficit, provided it is appropriately matched, and specifically extends its support to the allocation of approximately $190,000,000 of funds available to the Commodity Credit Corporation in calendar year 1967 which will be required to accomplish this purpose.
"The Congress further recommends that the President provide an additional $25,000,000 of emergency food relief for distribution by CARE and other American voluntary agencies."
Cotton and Cotton Products
Pub. L. 85–931, §8, Sept. 6, 1958, 72 Stat. 1792, as amended by Pub. L. 89–808, §3(d), Nov. 11, 1966, 80 Stat. 1538; Pub. L. 110–246, title III, §3001(c), June 18, 2008, 122 Stat. 1821, provided that: "In carrying out the provisions of the Food for Peace Act, as amended [this chapter], extra long staple cotton shall be made available for sale pursuant to the provisions of title I of the Act [this subchapter] in the same manner as upland cotton or any other surplus agricultural commodity is made available, and products manufactured entirely from upland or long staple cotton shall be made available for sale pursuant to the provisions of title I of the Act [this subchapter] as long as cotton is in surplus supply in the same manner as any other agricultural commodity or product is made available, and no discriminatory or other conditions shall be imposed which will prevent or tend to interfere with their sale or availability for sale under the Act [this chapter]."
[Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title.]
Cargo Preference Law Exemption
Act Aug. 3, 1956, ch. 933, §3, 70 Stat. 988, provided that: "Sales of fresh fruit and the products thereof under title I of the Act [sections 1701 to 1704, 1705 to 1707, 1708 to 1711 of this title] shall be exempt from the requirements of the cargo preference laws (Public Resolution 17, Seventy-third Congress (15 U.S.C. 616a) [now 46 U.S.C. 55304] and section 901(b) of the Merchant Marine Act, 1936 (46 U.S.C. 1241(b)) [now 46 U.S.C. 55305])."
Executive Documents
Implementation of Program
Program under this subchapter to provide for sale of agricultural commodities to developing countries to be implemented by Secretary of Agriculture, see Ex. Ord. No. 12752, §1(a), Feb. 25, 1991, 56 F.R. 8255, set out as a note under section 1691 of this title.
§1702. Agreements regarding eligible countries and private entities
(a) Priority
In selecting agreements to be entered into under this subchapter, the Secretary shall give priority to agreements providing for the export of agricultural commodities to developing countries that—
(1) 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
(2) demonstrate the greatest need for food.
(b) Private entities
An agreement entered into under this subchapter 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.
(July 10, 1954, ch. 469, title I, §102, 68 Stat. 455; Apr. 25, 1955, ch. 27, 69 Stat. 44; Pub. L. 88–638, §1(3), Oct. 8, 1964, 78 Stat. 1035; Pub. L. 89–808, §2(B), Nov. 11, 1966, 80 Stat. 1526; Pub. L. 90–436, §9, July 29, 1968, 82 Stat. 451; Pub. L. 95–88, title II, §201(a), Aug. 3, 1977, 91 Stat. 545; Pub. L. 95–113, title XII, §1201, Sept. 29, 1977, 91 Stat. 955; Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3634; Pub. L. 104–127, title II, §203, Apr. 4, 1996, 110 Stat. 951; Pub. L. 110–246, title III, §3005, June 18, 2008, 122 Stat. 1822.)
Editorial Notes
Amendments
2008—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;".
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).
1996—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.
1990—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.
1977—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.
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.
1968—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.
1966—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.
1964—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.
1955—Subsec. (a). Act Apr. 25, 1955, struck out requirement that exporters of privately owned stocks acquire an equivalent quantity of Commodity Credit Corporation stocks.
Statutory Notes and Related Subsidiaries
Effective Date of 2008 Amendment
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.
Effective Date of 1990 Amendment
Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.
Effective Date of 1977 Amendments
Amendment by Pub. L. 95–113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title.
Pub. L. 95–88, title II, §215, Aug. 3, 1977, 91 Stat. 552, provided that: "The provisions of this title [enacting sections 1712 to 1714 and 1727 to 1727f of this title, amending this section and sections 1427, 1431, 1692, 1703, 1706, 1711, 1721, 1722, 1723, 1726, 1731, and 1736b of this title, and enacting provisions set out as notes under sections 1708 and 1722 of this title] shall become effective October 1, 1977."
Effective Date of 1966 Amendment
Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title.
§1703. Terms and conditions of sales
(a) Payment
(1) Dollars
Except as provided in paragraph (2), agreements under this subchapter shall require that payment for agricultural commodities be made in dollars.
(2) Local currencies
(A) In general
The Secretary may permit payment under an agreement under this subchapter in the local currency of the appropriate country in order to use the proceeds from such payments to carry out activities under section 1704 of this title.
(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 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 developing country or private entity is required to begin making payment, under such agreements, for a period of not in excess of 5 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.
(July 10, 1954, ch. 469, title I, §103, 68 Stat. 456; Aug. 12, 1955, ch. 873, §1, 69 Stat. 721; May 28, 1956, ch. 327, title II, §208(a), 70 Stat. 201; Aug. 3, 1956, ch. 933, §1, 70 Stat. 988; Pub. L. 85–128, §1(2), Aug. 13, 1957, 71 Stat. 345; Pub. L. 85–931, §2, Sept. 6, 1958, 72 Stat. 1790; Pub. L. 86–341, title I, §2, Sept. 21, 1959, 73 Stat. 606; Pub. L. 87–28, May 4, 1961, 75 Stat. 64; Pub. L. 87–128, title II, §201(2), Aug. 8, 1961, 75 Stat. 306; Pub. L. 88–638, §1(4), (5), Oct. 8, 1964, 78 Stat. 1035; Pub. L. 89–808, §2(B), Nov. 11, 1966, 80 Stat. 1526; Pub. L. 90–436, §§4, 5, July 29, 1968, 82 Stat. 450; Pub. L. 91–524, title VII, §703, Nov. 30, 1970, as added Pub. L. 93–86, §1(26), Aug. 10, 1973, 87 Stat. 237; Pub. L. 93–125, §1(e), Oct. 18, 1973, 87 Stat. 450; Pub. L. 94–161, title II, §203, Dec. 20, 1975, 89 Stat. 851; Pub. L. 95–88, title II, §§201(b), 211(b)(1), Aug. 3, 1977, 91 Stat. 545, 551; Pub. L. 95–424, title I, §102(b)(2)(B), Oct. 6, 1978, 92 Stat. 941; Pub. L. 96–53, title II, §201, Aug. 14, 1979, 93 Stat. 368; Pub. L. 97–113, title IV, §401(2)–(4), Dec. 29, 1981, 95 Stat. 1537; Pub. L. 99–198, title XI, §1111(d), Dec. 23, 1985, 99 Stat. 1475; Pub. L. 100–202, §9, Dec. 22, 1987, 101 Stat. 1329–448; Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3634; Pub. L. 104–127, title II, §204, Apr. 4, 1996, 110 Stat. 953.)
Editorial Notes
Amendments
1996—Subsec. (a)(2)(A). Pub. L. 104–127, §204(1), struck out "a recipient country to make" after "may permit" and substituted "the appropriate country" for "such country".
Subsec. (c). Pub. L. 104–127, §204(2), struck out "less than 10 nor" before "more than 30".
Subsec. (d). Pub. L. 104–127, §204(3), substituted "developing country or private entity" for "recipient country" and "5 years" for "7 years".
1990—Pub. L. 101–624 amended section generally, substituting present provisions for provisions requiring President to consider efforts of recipients to increase agricultural production, determine amount needed in foreign currencies, protect other markets for United States commodities, make sales only to friendly countries, use private trade channels whenever practicable, consider expansion of markets, prevent resale by recipients, obtain favorable exchange rates, emphasize production of food crops, assist friendly countries in avoiding Communist domination, require payment of at least 5 per centum of purchase price upon delivery in dollars or convertible currency, obtain commitments from recipients to publicize source of food, require convertibility of foreign currencies, avoid displacement of sales that would otherwise have been made, assure United States obtains fair share in increase of commercial purchases by recipients, assure convertibility of foreign currencies at uniform exchange rates, and favor countries promoting private sector in allocation of commodities.
1987—Subsec. (r). Pub. L. 100–202 added subsec. (r).
1985—Subsec. (b). Pub. L. 99–198, §1111(d)(1), inserted ", in section 1708 of this title," after "section 1704 of this title".
Subsec. (d). Pub. L. 99–198, §1111(d)(2), struck out "for dollars on credit terms" after "agricultural commodities".
Subsec. (m). Pub. L. 99–198, §1111(d)(3), inserted introductory text "except as provided in section 1708 of this title," substituted a period for the semicolon at end of cl. (2), and inserted provisions respecting period for convertibility of foreign currencies into dollars and establishment in the agreement for sale of a schedule for conversion without specifying the exchange rate.
Subsec. (n). Pub. L. 99–198, §1111(d)(4), struck out "for dollars on credit terms" after "sales" and "for cash dollars" after "made".
Subsec. (o). Pub. L. 99–198, §1111(d)(5), substituted "take" for "Take".
Subsecs. (p), (q). Pub. L. 99–198, §1111(d)(6), (7), substituted "except as provided in section 1708 of this title, assure convertibility" for "Assure convertibility".
1981—Subsec. (b). Pub. L. 97–113, §401(2), struck out requirement that President 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 2151t of title 22, 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 Dec. 31, 1971; and struck out reference to subsec. (c) of section 1704 of this title.
Subsec. (d). Pub. L. 97–113, §401(3), in defining "friendly country", struck out provision excluding from term "for the purpose only of sales of agricultural commodities for foreign currencies under this subchapter, any country or area dominated by a Communist government".
Subsec. (l). Pub. L. 97–113, §401(4), struck out requirement that President obtain commitments from friendly purchasing countries that will insure, insofar as practicable, that food commodities sold for foreign currencies under this subchapter 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.
1979—Subsec. (f). Pub. L. 96–53 substituted provisions requiring Presidential consideration to the development and expansion of markets for United States agricultural commodities and local foodstuffs, for provisions requiring special Presidential consideration to the development and expansion of foreign markets for United States agricultural commodities.
1978—Subsec. (b). Pub. L. 95–424 substituted "section 2151t of title 22" for "section 2161 of title 22".
1977—Subsec. (b). Pub. L. 95–88, §211(b)(1), substituted "and in subchapters I and III–A of this chapter" for "and in section 1706(b)(2) of this title" after "uses specified in subsections (a), (b), (c), (e), and (h) of section 1704".
Subsec. (d). Pub. L. 95–88, §201(b), struck out provisions that "friendly country" not include, for the purpose only of sales of agricultural commodities under this subchapter, any nation which sold or furnished or permitted 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 were governed by a Communist regime: Provided, That this exclusion from the definition of "friendly country" could be waived by the President if he determined that such waiver was in the national interest and reported such determination to the Congress within 10 days of the date of such determination, and struck out provisions that "friendly country" also not include, for the purposes only of sales under this subchapter, the United Arab Republic, unless the President determined that such sale was in the national interest of the United States, that no sales to the United Arab Republic be based upon the requirements of that nation for more than one fiscal year, and that the President 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 this subchapter.
1975—Subsec. (a). Pub. L. 94–161, §203(1), substituted "efforts to increase their own agricultural production, especially through small, family farm agriculture, to improve their facilities for transportation, storage, and distribution of food commodities, and to reduce their rate of population growth" for "efforts to meet their problems of food production and population growth".
Subsec. (b). Pub. L. 94–161, §203(2), substituted "section 1704 and in section 1706(b)(2) of this title" for "section 1704 of this title".
Subsec. (d). Pub. L. 94–161, §203(3), substituted second proviso "Provided, That this exclusion from the definition of 'friendly country' may be waived by the President if he determines that such waiver is in the national interest and reports such determination to the Congress within 10 days of the date of such determination" for "Provided, That with respect to furnishing, selling, or selling and transporting to Cuba medical supplies, non-strategic raw materials for agriculture, and non-strategic 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".
1973—Subsec. (o). Pub. L. 93–125 made technical correction to Pub. L. 93–86, see 1973 Amendment note below.
Pub. L. 91–524, §703, as added by Pub. L. 93–86 as amended by Pub. L. 93–125, inserted "and that commercial supplies are available to meet demands developed through programs carried out under this chapter." before the semicolon at end.
1968—Subsec. (b). Pub. L. 90–436, §4, made mandatory, except when determined by President to be inconsistent with objectives of this chapter, proviso that President, in agreements for credit sales, require immediate payment in dollars or in foreign currencies upon delivery of agricultural commodities, such payment to be considered as an advance payment of earliest obligations.
Subsecs. (o) to (q). Pub. L. 90–436, §5, added subsecs. (o) to (q).
1966—Subsec. (a). Pub. L. 89–808 substituted provisions respecting self-help measures for meeting problems of food production and population growth for former provisions for appropriations for reimbursement of Commodity Credit Corporation, advance use of other funds, and classification of expenditures, now provided for in part by section 1733 of this title.
Subsec. (b). Pub. L. 89–808 substituted provisions respecting taking steps to assure a progressive transition from sales for foreign currencies to sales for dollars (such transition to be completed by December 31, 1971) but authorizing payment in foreign currencies for purposes of section 1704(a) to (c), (e), and (h) of this title for former limitation on transactions, now provided for by section 1710 of this title.
Subsec. (c). Pub. L. 89–808 redesignated provisions of former section 1701(a) of this title as subsec. (c), substituting "subchapter" for "chapter".
Subsec. (d). Pub. L. 89–808 redesignated provisions of former section 1707 of this title as subsec. (d), provided for sales agreements only with friendly countries and for periodic reports to Congress of status of such countries, deleted from definition of "friendly country" (formerly "friendly nation") clause "(1) the U.S.S.R.", redesignated cls. (2) to (4) as (1) to (3), substituted "country" for "nation", struck out "or controlled" after "dominated" in cl. (2), amended cl. (3) to include North Vietnam, insert selling or furnishing ships or aircraft, substitute "so long as they are governed by a Communist regime" for ", so long as Cuba is governed by the Castro regime", and provided for entry into sales agreements when in the national interest for furnishing, selling, or selling and transporting to Cuba medical supplies, etc., upon information to Congress and publication in Federal Register, designated existing provisions as cl. (4), and substituted requirement of information to the President of the Senate of sales to United Arab Republic rather than the Foreign Relations Committee and Appropriations Committee of the Senate.
Subsec. (e). Pub. L. 89–808 redesignated provisions of former section 1701(b) of this title as subsec. (e), inserting provision for the taking of steps to assure that small business has adequate and fair opportunity to participate in sales made under authority of this chapter.
Subsec. (f). Pub. L. 89–808 redesignated provisions of former section 1701(c) of this title as subsec. (f), substituting "the development and expansion of foreign markets for United States agricultural commodities" for "utilizing the authority and funds provided by this chapter, in order to develop and expand continuous market demand abroad for agricultural commodities" and "emphasis on more adequate storage, handling, and food distribution facilities as well as long-term development of new and expanding markets by encouraging economic growth" for "emphasis on underdeveloped and new market areas".
Subsec. (g). Pub. L. 89–808 redesignated provisions of former section 1701(d) of this title as subsec. (g), substituted "obtain", "purchasing countries", and "subchapter" for "seek and secure", "participating countries", and "chapter" and struck out "surplus" before "agricultural commodities".
Subsec. (h). Pub. L. 89–808 redesignated provisions of former section 1701(f) of this title as subsec. (h).
Subsec. (i). Pub. L. 89–808 added subsec. (i).
Subsec. (j). Pub. L. 89–808 incorporated in provisions added as subsec. (j) former section 1693 of this title, substituting "to be independent of domination or control by any world Communist movement" for "to be independent of trade with the Union of Soviet Socialist Republics or the Communist regime in China and with nations dominated or controlled by the Union of Soviet Socialist Republics" and "sales agreements under this subchapter with any government or organization controlling a world Communist movement or with any country with which the United States does not have diplomatic relations" for "transactions under this subchapter or subchapter I of this title with the Union of Soviet Socialist Republics or any of the areas dominated or controlled by the Communist regime in China" and struck out provision for prevention of increased availability of commodities to unfriendly nations.
Subsec. (k). Pub. L. 89–808 added subsec. (k).
Subsec. (l). Pub. L. 89–808 added subsec. (l).
Subsec. (m). Pub. L. 89–808 redesignated provisions of former section 1701(g) of this title as par. (1) and added par. (2).
Subsec. (n). Pub. L. 89–808 incorporated in provisions added as subsec. (n) part of former section 1734 of this title requiring the Secretary to take such reasonable precautions as he determines necessary to avoid replacing any sales which the Secretary found and determined would otherwise be made for cash dollars.
1964—Subsec. (a). Pub. L. 88–638, §1(4), directed the President to classify expenditures under this chapter as for international affairs and finance rather than for agriculture and agricultural resources.
Subsec. (b). Pub. L. 88–638, §1(5), substituted "1965" for "1962", "1966" for "1964", and "$2,700,000,000 plus any amount by which agreements entered into 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 by this chapter as in effect during such years" for "$4,500,000,000".
1961—Subsec. (b). Pub. L. 87–128 substituted authorization provision of $4,500,000,000 for period beginning January 1, 1962, and ending December 31, 1964, with a limitation of $2,500,000,000 for any one calendar year, for authorization provision of $1,500,000,000 plus any amount by which agreements entered into in the preceding calendar year called for appropriations in amount less than authorized for such preceding year by this chapter as in effect during the preceding year for period beginning January 1, 1960, and ending December 31, 1961.
Pub. L. 87–28 authorized agreements during the calendar year 1961 calling for appropriations of not more than $3,500,000,000 plus any unused authority carried over from 1960.
1959—Subsec. (b). Pub. L. 86–341 substituted "in any calendar year during the period beginning January 1, 1960, and ending December 31, 1961" for "during the period beginning July 1, 1958, and ending December 31, 1959", "$1,500,000,000" for "$2,250,000,000", "in the preceding calendar year" for "in prior fiscal years", "for such preceding year" for "for such prior fiscal years", and "during such preceding year" for "during such fiscal years".
1958—Subsec. (b). Pub. L. 85–931 amended subsec. (b) generally, substituting "Agreements entered into" for "Transactions carried out", providing for $2,250,000,000 for sales between July 1, 1958, and Dec. 31, 1959, and for carrying over unused authorizations from one fiscal to succeeding fiscal years, and striking out clause that limitation on sales shall not be apportioned by year or by country and shall be considered as an objective to be reached as rapidly as possible within the safeguards of this chapter.
1957—Subsec. (b). Pub. L. 85–128 substituted "$4,000,000,000" for "$3,000,000,000".
1956—Subsec. (a). Act May 28, 1956, authorized appropriations equal to all Commodity Credit Corporation funds expended for ocean freight costs.
Subsec. (b). Act Aug. 3, 1956, increased from $1,500,000,000 to $3,000,000,000 the limitation on sales.
1955—Subsec. (b). Act Aug. 12, 1955, increased from $700,000,000 to $1,500,000,000 the limitation on sales, and provided that this limitation shall not be apportioned by year or by country.
Statutory Notes and Related Subsidiaries
Effective Date of 1990 Amendment
Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.
Effective Date of 1979 Amendment
Amendment by Pub. L. 96–53 effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as a note under section 2151 of Title 22, Foreign Relations and Intercourse.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95–424 effective Oct. 1, 1978, see section 605 of Pub. L. 95–424, set out as a note under section 2151 of Title 22, Foreign Relations and Intercourse.
Effective Date of 1977 Amendment
Amendment by Pub. L. 95–88 effective Oct. 1, 1977, see section 215 of Pub. L. 95–88, set out as a note under section 1702 of this title.
Effective Date of 1966 Amendment
Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title.
Effective Date of 1964 Amendment
Pub. L. 88–638, §1(5), Oct. 8, 1964, 78 Stat. 1035, provided that the amendment made by section 1(5) is effective Jan. 1, 1965.
Effective Date of 1961 Amendment
Pub. L. 87–128, title II, §201(2), Aug. 8, 1961, 75 Stat. 306, provided that the amendment made by section 201(2) is effective Jan. 1, 1962.
Effective Date of 1959 Amendment
Pub. L. 86–341, title I, §2, Sept. 21, 1959, 73 Stat. 606, provided that the amendment made by section 2 is effective Jan. 1, 1960.
§1704. Use of local currency payment
(a) In general
Agreements under this subchapter may provide that the Secretary shall use payments made in local currencies by the developing country or private entity in accordance with this section.
(b) Special account
Foreign currencies received by the Secretary under this subchapter 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 appropriate developing country, through agreements with recipient governments, private voluntary organizations, and cooperatives, for the following:
(1) 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;
(D) programs to control rodents, insects, weeds, and other animal or plant pests; and
(E) the improvement of the trade capacity of the recipient country.
(2) Agricultural business development loans
To make loans to United States business entities (including cooperatives) and branches, subsidiaries, or affiliates of such entities for development of agricultural businesses and agricultural trade capacity in such appropriate developing countries.
(3) 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 agricultural products.
(4) Trade promotion
To promote agricultural trade development, under procedures established by the Secretary, by making loans or through other activities (including trade fairs to promote agricultural products produced in appropriate developing countries) that the Secretary determines to be appropriate.
(5) Private sector agricultural trade development
To conduct private sector agricultural trade development activities in the appropriate developing country, as determined appropriate by the Secretary.
(6) Research
To conduct research in agriculture, forestry, and aquaculture, including collaborative research which is mutually beneficial to the United States and the appropriate developing country.
(7) United States obligations
To make payments of United States obligations (including obligations entered into pursuant to other laws).
(8) Safe water and sanitation
To provide assistance under section 2152h 1 of title 22 to promote good health, economic development, poverty reduction, women's empowerment, conflict prevention, and environmental sustainability by increasing affordable and equitable access to safe water and sanitation.
(d) Fiscal requirements regarding use of local currencies
(1) Exemption
Section 1306 of title 31 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.
(July 10, 1954, ch. 469, title I, §104, 68 Stat. 456; Aug. 26, 1954, ch. 937, title V, §544(h), (i), as added July 18, 1956, ch. 627, §11(a), 70 Stat. 564, 565; amended Aug. 3, 1956, ch. 933, §2, 70 Stat. 988; Pub. L. 85–128, §1(4), Aug. 13, 1957, 71 Stat. 345; Aug. 26, 1954, ch. 937, title V, §544(c), as added Pub. L. 85–141, §11(b)(2), Aug. 14, 1957, 71 Stat. 365; Pub. L. 85–477, ch. V, §502(l), June 30, 1958, 72 Stat. 275; Pub. L. 85–931, §3, Sept. 6, 1958, 72 Stat. 1790; Pub. L. 86–108, ch. VII, §701(d), July 24, 1959, 73 Stat. 258; Pub. L. 86–341, title I, §§4–9, Sept. 21, 1959, 73 Stat. 606, 607; Pub. L. 87–128, title II, §201(3), Aug. 8, 1961, 75 Stat. 306; Pub. L. 87–195, pt. III, §612(b), pt. IV, §704, Sept. 4, 1961, 75 Stat. 443, 463; Pub. L. 87–839, §2, Oct. 18, 1962, 76 Stat. 1074; Pub. L. 88–205, pt. III, §301(d)(2), Dec. 16, 1963, 77 Stat. 386; Pub. L. 88–638, §§1(6)–(10), 2, Oct. 8, 1964, 78 Stat. 1035–1038; Pub. L. 89–106, §5, Aug. 4, 1965, 79 Stat. 432; Pub. L. 89–808, §2(B), Nov. 11, 1966, 80 Stat. 1528; Pub. L. 90–436, §§2(a), 3, 6, July 29, 1968, 82 Stat. 450, 451; Pub. L. 91–524, title VII, §702, Nov. 30, 1970, 84 Stat. 1379; Pub. L. 94–161, title II, §204, Dec. 20, 1975, 89 Stat. 852; Pub. L. 96–53, title I, §121, Aug. 14, 1979, 93 Stat. 366; Pub. L. 97–113, title IV, §§401(5), 402, Dec. 29, 1981, 95 Stat. 1537; Pub. L. 100–418, title IV, §4401, Aug. 23, 1988, 102 Stat. 1400; Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3635; Pub. L. 104–127, title II, §205, Apr. 4, 1996, 110 Stat. 953; Pub. L. 109–121, §5(b), Dec. 1, 2005, 119 Stat. 2537; Pub. L. 110–246, title III, §3006, June 18, 2008, 122 Stat. 1822.)
Editorial Notes
References in Text
Section 2152h of title 22, referred to in subsec. (c)(8), was in the original "section 135 of the Foreign Assistance Act of 1961" which was translated as meaning the section 135 of the Act which is classified to section 2152h of Title 22, Foreign Relations and Intercourse, rather than to the section 135 of the Act which is classified to section 2152f of Title 22, to reflect the probable intent of Congress.
Amendments
2008—Subsec. (c). Pub. L. 110–246, §3006(7), redesignated pars. (2) to (9) as (1) to (8), respectively.
Pub. L. 110–246, §3006(1), inserted ", through agreements with recipient governments, private voluntary organizations, and cooperatives," after "developing country" in introductory provisions.
Subsec. (c)(1). Pub. L. 110–246, §3006(2), struck out par. (1). Prior to amendment, text read as follows: "To carry out programs to help develop markets for United States agricultural commodities on a mutually beneficial basis in the appropriate developing country."
Subsec. (c)(2)(E). Pub. L. 110–246, §3006(3), added subpar. (E).
Subsec. (c)(3). Pub. L. 110–246, §3006(4), substituted "development of agricultural businesses and agricultural trade capacity" for "agricultural business development and agricultural trade expansion".
Subsec. (c)(4). Pub. L. 110–246, §3006(5), struck out ", or otherwise increasing the consumption of and markets for, United States" before "agricultural products".
Subsec. (c)(5). Pub. L. 110–246, §3006(6), inserted "to promote agricultural products produced in appropriate developing countries" after "trade fairs".
2005—Subsec. (c)(9). Pub. L. 109–121 added par. (9).
1996—Subsec. (a). Pub. L. 104–127, §205(1), substituted "developing country or private entity" for "recipient country".
Subsec. (c). Pub. L. 104–127, §205(2), substituted "appropriate developing country" for "recipient country" in introductory provisions and pars. (1), (6), and (7), and "appropriate developing countries" for "recipient countries" in par. (3).
1990—Pub. L. 101–624 amended section generally, substituting present provisions for provisions authorizing President to use local currencies received as payments to pay United States obligations, for agricultural market development, for educational and cultural exchange, for scientific activities, for purchase of real property abroad, for purchase of foreign books, periodicals, etc., for United States libraries, to meet emergency relief requirements, for loans to United States businesses for trade expansion and to firms for development of facilities increasing market for commodities, for loans to recipients to improve food production and marketing, to purchase goods and services for other friendly countries, to pay for food production assistance programs, for sale for dollars to United States citizens, to pay for animal and plant pest control, and provisions relating to application of section 1306 of title 31, and to use of currencies of which United States has amounts in excess of needs for next two fiscal years.
1988—Subsec. (b)(1). Pub. L. 100–418 inserted "(including wood and processed wood products of the United States)" after first reference to "agricultural commodities".
1981—Pub. L. 97–113, §401(5)(A), (B), substituted in introductory text "agreements for such sales entered into prior to January 1, 1972," for "this subchapter" and struck out from penultimate proviso, par. (3), "except as provided in subsection (c) of this section)," after "foreign currencies".
Subsec. (d). Pub. L. 97–113, §402, increased fiscal year limitation to $10,000,000 from $5,000,000.
1979—Subsec. (f). Pub. L. 96–53 substituted "Agency for International Development" for "Advisory Committee on Voluntary Foreign Aid".
1975—Pub. L. 94–161 inserted references to the House Committee on International Relations and the Senate Committee on Foreign Relations in first proviso of subsec. (b)(1), in par. (3) of penultimate proviso following subsec. (k), and in last sentence of section and repealed subsec. (c) which read: "To procure equipment, materials, facilities, and services for the common defense including internal security;", respectively.
1970—Pub. L. 91–524 inserted provision allowing appropriation acts to specifically authorize the use of foreign currencies in the educational and cultural exchange program without requiring the appropriation of dollars for the purchase of those same foreign currencies.
1968—Subsec. (b)(2). Pub. L. 90–436, §3, authorized the financing with at least 2 percent of the total sales proceeds each year in each country of additional activities to strengthen the resources of American schools, colleges, universities, and other public and nonprofit private educational agencies for international studies and research pursuant to programs authorized by title VI of the National Defense Education Act, the Mutual Educational and Cultural Exchange Act of 1961, the International Education Act of 1966, the Higher Education Act of 1965, the Elementary and Secondary Education Act of 1965, the National Foundation on the Arts and the Humanities Act of 1965, and the Public Broadcasting Act of 1967.
Subsec. (h). Pub. L. 90–436, §2(a), inserted provision that not less than 5 percent of the total sales proceeds, if requested by the foreign country, be used for voluntary programs to control population growth.
Subsec. (k). Pub. L. 90–436, §6, added subsec. (k).
1966—Pub. L. 89–808, in introductory text, struck out "section 724 of title 31, or" after "Notwithstanding", substituted "foreign countries or international organizations" for "friendly nations, or organizations of nations", and inserted "in connection with sales for foreign currencies" after "accrue".
Subsec. (a). Pub. L. 89–808 redesignated subsec. (f) as (a), struck out "abroad" after "obligations" and inserted "(including obligations entered into pursuant to other legislation)". Former subsec. (a) redesignated (b)(1).
Subsec. (b). Pub. L. 89–808 struck out subsec. (b) which provided for purchase, in such amounts as may be specified from time to time in appropriation acts, strategic or other materials for a supplemental stockpile of such materials as the president may determine from time to time.
Subsec. (b)(1). Pub. L. 89–808 redesignated former subsec. (a) as (b)(1), inserted "For carrying out programs of United States Government agencies to—" preceding par. (1) and restriction against making a release until expiration of requisite number of days following transmittal to congressional committees, struck out "after September 21, 1959," before "shall be set aside" and "Provided further, That no such funds shall be allocated under this subsection after June 30, 1960, except as may be specified from time to time, in appropriation acts" before convertibility of proceeds provision, substituted "as he determines cannot be effectively used for agricultural market development purposes under this section" for "as he determines not to be needed, within a reasonable period of time, for such purpose:" and "sale of agricultural commodities" for "sale of surplus agricultural commodities" and inserted provisions of utilization of nonprofit agricultural trade organizations to maximum extent possible in carrying out agricultural market development activities and inclusion as a purpose of subsec. (b) such representation of agricultural industries as may be required during course of discussions on trade programs relating either to individual commodities or groups of commodities.
Subsec. (b)(2). Pub. L. 89–808 incorporated in provisions designated as par. (2) provisions of subsec. (h) which provided for financing of international exchange activities under programs authorized by section 1641(b)(2) of Appendix to title 50 and for financing in such amounts as may be specified from time to time in appropriation acts of programs for interchange of persons under section 1446 of title with a particular effort for allocation of funds with regard to countries where adequate funds are not available from other sources for such purposes and countries where agreements can be negotiated to establish a fund to be available over a period of years for such purposes, including setting aside of such amounts from sale proceeds and loan repayments not in excess of $1,000,000 a year in any one country for not more than 5 years in advance, as determined to be required for such purposes by the Secretary of State.
Subsec. (b)(3). Pub. L. 89–808 redesignated subsec. (k) as par. (3), included use of foreign currencies for family planning programs, and struck out proviso for availability of foreign currencies for subsec. (k) purposes (in addition to funds otherwise made available for such purposes) only in such amounts as may be specified from time to time in appropriation Acts.
Subsec. (b)(4). Pub. L. 89–808 redesignated subsec. (l) as par. (4), striking out subsec. (l) proviso for availability of foreign currencies for subsec. (l) purposes (in addition to funds otherwise made available for such purposes) in such amounts as may be specified from time to time in appropriation acts.
Subsec. (b)(5). Pub. L. 89–808 redesignated subsec. (n)(1) to (3) as par. (5)(A) to (C), striking out provision for use of foreign currencies "in such amounts as may be specified from time to time in appropriation acts".
Subsec. (c). Pub. L. 89–808 reenacted existing provisions.
Subsec. (d). Pub. L. 89–808 redesignated subsec. (q) as (d). Former subsec. (d) redesignated (g).
Subsec. (e). Pub. L. 89–808 substituted provisions for use of foreign currencies to maximum extent and for due consideration to be given to the continued expansion of markets for United States agricultural commodities or products thereof in proviso for former provisions for availability of such currencies to maximum usable extent and for manufacture or production of any commodity to be marketed in competition with United States agricultural commodities or products thereof in the proviso, authorized loans to cooperatives and for private home construction in foreign countries, struck out introductory phrase for uses of such currencies "For promoting balanced economic development and trade among nations", and that loans be mutually agreeable to the agency and the country making the agreement, and inserted "intended" in proviso.
Subsec. (f). Pub. L. 89–808 redesignated subsec. (g) as (f), provided for promotion of agricultural development, establishment of procedures by the President, use of funds in any other manner than loans as determined by the President to be in the national interest, assistance to 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, and utilization for such purpose to extent practicable the services of registered and approved nonprofit voluntary agencies, prohibited use of funds to promote religious activities, and struck out provisions for loans made through established banking facilities of the friendly nation from which the foreign currency was obtained or in any other manner which the President may deem to be appropriate and authorization for acceptance of strategic materials, services, or foreign currencies in payment of such loans. Former subsec. (f) redesignated (a).
Subsec. (g). Pub. L. 89–808 redesignated former subsec. (d) as (g), struck out "financing" before "the purchase". Former subsec. (g) redesignated (f).
Subsec. (h). Pub. L. 89–808 added subsec. (h) Former subsec. (h) redesignated (b)(2).
Subsec. (i). Pub. L. 89–808 substituted provisions respecting use of foreign currencies for paying costs outside the United States of carrying out food production assistance programs for former provisions for financing ($5,000,000 fiscal year limitation) translation, publication, and distribution of books and periodicals, including Government publications, abroad.
Subsec. (j). Pub. L. 89–808 redesignated subsec. (t) as (j), authorized sale of foreign currencies to nonprofit organizations, and struck out provisions making the currencies available for sale at United States embassies or other convenient locations, describing such currencies as acquired through operations under Foreign Assistance Act of 1961, as amended, Mutual Security Act of 1954, as amended, or any Act repealed thereby, or Agricultural Trade Development and Assistance Act of 1954, as amended, prohibiting such sales for travel purposes under agreement entered into with another country or when so committed by agreement to other uses, depositing dollars from such sales into United States Treasury as miscellaneous receipts, and treating dollars deposited into the CCC account as a reimbursement under section 1705 of this title. Former subsec. (j) provided for assistance to schools, libraries, and community centers abroad founded or sponsored by United States citizens and serving as demonstration centers, and is now covered by subsec. (b)(2) of this section.
Subsecs. (k), (l). Pub. L. 89–808 redesignated subsecs. (k) and (l) as (b)(3) and (4).
Subsec. (m). Pub. L. 89–808 struck out subsec. (m) which provided for financing in such amounts as may be specified from time to time in appropriation acts trade fair participation and related activities and agricultural and horticultural fair participation and related activities.
Subsec. (n). Pub. L. 89–808 redesignated subsec. (n) as (b)(5).
Subsecs. (o), (p). Pub. L. 89–808 struck out subsec. (o) which provided for assistance, in such amounts as may be specified from time to time in appropriation acts, in expansions or operation in foreign countries of schools, colleges, or universities founded or sponsored by United States citizens for carrying out programs of vocational, professional, scientific, technological, or general education, and subsec. (p) which provided for supporting workshops in American studies or American educational techniques, and supporting chairs in American studies.
Subsec. (q). Pub. L. 89–808 redesignated subsec. (q) as (d).
Subsec. (r). Pub. L. 89–808 struck out subsec. (r) which provided for financing ($2,500,000 fiscal year limitation) preparation, distribution, and exhibition of audio-visual informational and educational materials abroad without limiting or affecting use of foreign currencies for such materials in connection with trade fairs and other market development activities under subsec. (a) of this section.
Subsecs. (s), (t). Pub. L. 89–808 incorporated subsecs. (s) and (t) in subsec. (j), and struck out from former subsec. (s) "under such terms and conditions as the President may prescribe".
Penultimate proviso. Pub. L. 89–808 incorporated part of existing proviso following subsec. (t) in provisions designated as par. (1) and inserted reference to subsec. (b).
Pub. L. 89–808 incorporated part of existing initial proviso and second proviso following subsec. (t) in provisions designated as par. (2), substituted references to subsecs. (f) and (g) for (d) and (e), and struck out a third proviso restricting the availability of foreign currencies pursuant to subsecs. (k), (p), and (r) to such amounts as may be specified from time to time in appropriation Acts.
Pub. L. 89–808 redesignated penultimate par. as par. (3) and struck out "and then only if, between the date of transmittal and the expiration of such period there has not been passed by either of the two Committees a resolution stating in substance that that Committee does not favor such agreement or proposal" after "sessions.".
Pub. L. 89–808 redesignated last par. as par. (4) and substituted "after consultation with the advisory committee established under section 1736a of this title" for "upon the recommendation of the advisory committee herein established".
Ultimate proviso. Pub. L. 89–808 inserted ultimate proviso making pars. (2) to (4) of penultimate proviso inapplicable 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 Federal departments and agencies for expenditures in such nations for two fiscal years following fiscal year in which such determination is made.
Concluding text. Pub. L. 89–808 inserted provisions for devotion of excess foreign currencies to acquisition of sites, buildings, and grounds under subsec. (b)(4) of this section, for assistance in self-help measures, and for reports to congressional committees of determinations of existence of excess foreign currencies with respect to any nation, uses for such excess, and effects of such use.
Pub. L. 89–808 struck out pars. for establishment of an advisory committee and for consultations with such committee respecting loan, currency convertibility, and currency reservations (in sales agreements) policies and for establishment of higher than minimum interest rate for dollar sales. Advisory committee provisions are now covered in section 1736a of this title.
1965—Subsec. (a). Pub. L. 89–106 authorized the Secretary of Agriculture to release such amounts of the foreign currencies set aside for the market development program as he determined not to be needed, within a reasonable period of time, for that purpose.
1964—Subsec. (c). Pub. L. 88–638, §1(6), inserted "including internal security" and struck out "military" before "equipment".
Subsec. (e). Pub. L. 88–638, §1(7), substituted "currencies shall also be available to the maximum usable extent" for "not more than 25 per centum of the currencies received pursuant to each such agreement shall be available".
Subsec. (t). Pub. L. 88–638, §2, redesignated subsec. (b) of section 612 of Pub. L. 87–195, as subsec. (t) of this section, inserted "For sale to United States citizens as provided herein", substituted "the Foreign Assistance Act of 1961, as amended" for "this chapter", and provided that except in the case of foreign currencies acquired under this subchapter, dollars received from the sale of foreign currencies shall be deposited to the account of the Commodity Credit Corporation and shall be treated as a reimbursement to such Corporation.
Pub. L. 88–638, §1(8)–(10), established an advisory committee, specified its composition, directed it to review the status and usage of foreign currencies accruing under this subchapter and to make various recommendations, provided that the committee be consulted with respect to various matters, for the transmittal of certain proposals to congressional committees, and that any loan under this section shall bear interest as the President shall determine, within certain limits and taking various matters into consideration, and inserted "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" in first proviso.
1963—Subsec. (t). Pub. L. 88–205 added subsec. (b) to section 612 of Pub. L. 87–195, which was designated as subsec. (t) of this section by Pub. L. 88–638.
1962—Subsec. (m). Pub. L. 87–839 inserted "or section 1122b of title 46".
1961—Pub. L. 87–128, §201(3)(a), inserted ", including principal and interest from loan repayments," after "foreign currencies", in opening provisions.
Subsec. (a). Pub. L. 87–128, §201(3)(d), inserted, in second sentence, "each year" after "made" and "set aside in the amounts and kinds of foreign currencies specified by the Secretary of Agriculture and" after "be", where "made" and "be" first appear; substituted, in third sentence, "Provision shall be made" for "Particular regard shall be given to provide" and "the Secretary of Agriculture determines to" for "may" and inserted "(not less than 2 per centum)" after "thereof"; inserted sentence concerning conversion of monies into foreign currencies and deposit in special Treasury account; and substituted, in last sentence, "the Secretary of Agriculture is authorized and directed to enter into agreements" for "agreements may be entered into".
Subsec. (e). Pub. L. 87–195 substituted "procedures established by such agency as the President shall direct for loans mutually agreeable to said agency" for "procedures established by the Export-Import Bank for loans mutually agreeable to said bank".
Subsec. (s). Pub. L. 87–128, §201(3)(c), added subsec. (s).
Pub. L. 87–128, §201(3)(b), substituted in final proviso "pursuant to" for "for the purpose of subsection (p) of this section, except in such amounts as may be specified from time to time in appropriation Acts, and no foreign currencies shall be allocated under any provision of this chapter after June 30, 1960, for the purposes specified in".
1959—Subsec. (a). Pub. L. 86–341, §4, provided that from sale proceeds and loan repayments under this subchapter not less than the equivalent of 5 per centum of the total sales made under this subchapter after September 21, 1959, shall be made available in advance for use as provided by this subsection over such period of years as the Secretary of Agriculture determines will most effectively carry out the purposes of this subsection, prohibited the allocation of such funds after June 30, 1960, except as may be specified in appropriation acts, required particular regard to be given for provisions in sale and loan agreements for the convertibility of such amount of the proceeds thereof as may be needed to carry out the purpose of this subsection in those countries which are or offer reasonable potential of becoming dollar markets for United States agricultural commodities, and permitted the entering into agreements for the sale of surplus 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 subsection in cases where sufficient foreign currencies for carrying out the purpose of this subsection in such countries are not otherwise available.
Subsec. (b). Pub. L. 86–341, §5, among other changes, substituted "strategic or other materials" for "strategic and critical materials" in two places, limited purchases or contracts to purchase to such amounts as may be specified from time to time in appropriation acts, and eliminated provisions which authorized contracts, including advance payment contracts, for supply extending over periods up to ten years, and which permitted the strategic and critical materials acquired under authority of this subchapter to be additional to the amounts acquired under authority of the Strategic and Critical Materials Stockpile Act.
Subsec. (k). Pub. L. 86–341, §6, authorized the use of foreign currencies to promote and support programs of medical and scientific research, cultural and educational development, health, nutrition, and sanitation.
Pub. L. 86–108 substituted "conduct research and support" for "conduct and support", and ": Provided, That foreign currencies shall be available for the purposes of this subsection (in addition to funds otherwise made available for such purposes) only in such amounts as may be specified from time to time in appropriation Acts;" for ", but no foreign currencies shall be used for the purposes of this subsection unless specific appropriations be made therefor;".
Subsec. (o). Pub. L. 86–341, §7, struck out provisions which permitted the use of foreign currencies in the supporting of workshops in American studies or American educational techniques, and supporting chairs in American studies. See subsec. (p) of this section.
Subsecs. (p) to (r). Pub. L. 86–341, §8, added subsecs. (p) to (r).
Pub. L. 86–341, §9, inserted proviso in closing provisions limiting availability of foreign currencies for the purpose of subsec. (p) of this section to such amounts as may be specified from time to time in appropriation Acts, and prohibiting allocation of foreign currencies after June 30, 1960, for the purposes specified in subsections (k), (p), and (r) of this section to such amounts as may be specified from time to time in appropriation Acts.
1958—Subsec. (h). Pub. L. 85–931, §3(a), authorized use of foreign currencies to finance programs for interchange of persons between United States and foreign countries.
Subsec. (k). Pub. L. 85–477 added subsec. (k).
Subsecs. (l) to (o). Pub. L. 85–931, §3(b), added subsecs. (l) to (o).
1957—Subsec. (e). Pub. L. 85–128 provided that not more than 25 percent of the currencies received pursuant to each agreement be available through the Export-Import Bank for loans mutually agreeable to said bank and the country with which the agreement is made for business development in such countries and for loans to domestic or foreign firms for facilities to aid markets for United States agricultural products, provided no such loans be made for the manufacture of products to be exported to United States in competition with United States products or for manufacture or production of any commodity to be marketed in competition with United States agricultural commodities or products thereof, and that foreign currencies may be accepted in repayment of such loans.
Subsec. (h). Pub. L. 85–141, §11(b)(2), added section 544(c) to act Aug. 26, 1954, which section inserted provisions in this subsection authorizing the setting aside of amounts from sale proceeds and loan repayments.
1956—Subsec. (h). Act July 18, 1956, added section 544(h) to act Aug. 26, 1954, which section inserted provisions in this section relating to allocation of funds and to the special and particular effort to be made to provide for the purposes of this subsection.
Subsec. (i). Act Aug. 26, 1954, §544(i), as added by act July 18, 1956, added subsec. (i).
Subsec. (j). Act Aug. 3, 1956, added subsec. (j).
Statutory Notes and Related Subsidiaries
Effective Date of 2008 Amendment
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.
Effective Date of 1990 Amendment
Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.
Effective Date of 1979 Amendment
Amendment by Pub. L. 96–53 effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as a note under section 2151 of Title 22, Foreign Relations and Intercourse.
Effective Date of 1966 Amendment
Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title.
Repeals
Section 704 of Pub. L. 87–195, cited as a credit to this section, was repealed by section 401 of Pub. L. 87–565, pt. IV, Aug. 1, 1962, 76 Stat. 263, except insofar as section 704 affected this section.
Pub. L. 85–477, ch. IV, §401(h), June 30, 1958, 72 Stat. 270, repealed section 544(c) of act Aug. 26, 1954, cited as a credit to this section, except insofar as such section 544(c) affected this section.
Pub. L. 85–141, §11(b)(1), repealed section 544(h), (i) of act Aug. 26, 1954, cited as a credit to this section, except insofar as such section 544(h), (i) affected this section.
Payment From Foreign Currencies for Family Housing Projects or Community Facilities Constructed or Acquired by Department of Defense
Pub. L. 86–500, title V, §509, June 8, 1960, 74 Stat. 186, as amended by Pub. L. 110–246, title III, §3001(c), June 18, 2008, 122 Stat. 1821, provided that: "Notwithstanding the provisions of any other law, at least 75 per centum of the total cost of any family housing project or community facility hereafter constructed or acquired in any foreign country by the Department of Defense or any military department shall be paid for from foreign currencies acquired by the Commodity Credit Corporation pursuant to the provisions of the Food for Peace Act [this chapter]; except that the following projects authorized pursuant to this Act shall not be subject to this requirement:
"Air Force activities, Japan, one hundred fifty units;
"Cigli Air Base, Turkey, community facilities;
"Clark Air Force Base, Philippine Islands, one hundred units;
"Iraklion Air Station, Crete, community facilities;
"Kirknewton RAF, United Kingdom, fifty units;
"Naval Air Station, Naha, Okinawa, two hundred; and
"Site I–5, Italy, one hundred units and community facilities."
Limitation on Use of Foreign Currencies for Participation in Trade, Agricultural and Horticultural Fairs
Pub. L. 86–30, title I, §101, May 20, 1959, 73 Stat. 35, as amended by Pub. L. 110–246, title III, §3001(c), June 18, 2008, 122 Stat. 1821, provided that: "Subject to allocation in such manner as may now or hereafter be prescribed by the President, foreign currencies which have accrued under title I of the Food for Peace Act, as amended (7 U.S.C. 1704) [this section] may be used without fiscal year limitation for the purposes of section 104(m) of that Act [former subsec. (m) of this section], including administrative expenses directly related thereto, in an amount not to exceed the equivalent of $1,275,000."
International Cooperation in Health Research, Research Training, and Research Planning
Use of foreign currencies accruing under this subchapter to carry out purposes of International Health Research Act of 1960, see section 2103 of Title 22, Foreign Relations and Intercourse.
Use of Foreign Currencies
Foreign currencies accruing to United States under this subchapter may be used for purposes set forth in this section, see Ex. Ord. No. 12752, §2(b)(1), (2), Feb. 25, 1991, 56 F.R. 8255, set out as a note under section 1691 of this title.
§1704a. Agreements for use of foreign currencies; reports to Congress
Within sixty days after any agreement is entered into for the use of any foreign currencies, a full report thereon shall be made to the Senate and the House of Representatives of the United States and to the Committees on Agriculture and Appropriations thereof.
(Pub. L. 85–128, §1(5), Aug. 13, 1957, 71 Stat. 345.)
Editorial Notes
Codification
Section was not enacted as part of the Food for Peace Act which comprises this chapter.
Executive Documents
Transmission of Reports
For provisions requiring Secretary of Agriculture and Administrator of Agency for International Development to transmit reports required by this section as related to use of foreign currencies accruing under subchapters II and III–A of this chapter, see section 2(b)(3) of Ex. Ord. No. 12752, Feb. 25, 1991, 56 F.R. 8255, set out as a note under section 1691 of this title.
Section, Pub. L. 86–149, title IV, §420, Aug. 10, 1959, 73 Stat. 324, related to utilization of foreign currencies for construction of military projects and reimbursement of Commodity Credit Corporation.
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective Oct. 1, 1982, and applicable to military construction projects, and to construction and acquisition of military family housing before, on, or after such date, see section 12(a) of Pub. L. 97–214, set out as an Effective Date note under section 2801 of Title 10, Armed Forces.
§1704c. Payments by Secretary of Defense in liquidation of amount due for foreign currencies
The Secretary of Defense shall pay to the Commodity Credit Corporation an amount not to exceed $6,000,000 per year until the amount due for foreign currencies used for housing constructed or acquired under title II of the Food for Peace Act (7 U.S.C. 1721–1726) has been liquidated.
(Pub. L. 97–214, §9(a), July 12, 1982, 96 Stat. 174; Pub. L. 110–246, title III, §3001(b)(1)(A), (2)(C), June 18, 2008, 122 Stat. 1820.)
Editorial Notes
References in Text
The Food for Peace Act (7 U.S.C. 1721–1726), referred to in text, is act July 10, 1954, ch. 469, 68 Stat. 457. Title II of the Act is classified generally to subchapter III (§1721 et seq.) of chapter 41 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1691 of this title and Tables.
Codification
Section consists of section 9(a) of Pub. L. 97–214. Section 9(b) of Pub. L. 97–214 is classified as a note set out under section 1594k of Title 42, The Public Health and Welfare.
Section was enacted as part of the Military Construction Codification Act, and not as part of the Food for Peace Act which comprises this chapter.
Amendments
2008—Pub. L. 110–246 substituted "Food for Peace Act" for "Agricultural Trade Development and Assistance Act of 1954".
Statutory Notes and Related Subsidiaries
Effective Date of 2008 Amendment
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.
Effective Date
Section effective Oct. 1, 1982, and applicable to military construction projects, and to construction and acquisition of military family housing before, on or after such date, see section 12(a) of Pub. L. 97–214, set out as a note under section 2801 of Title 10, Armed Forces.
Section 1705, acts July 10, 1954, ch. 469, title I, §105, 68 Stat. 457; Dec. 16, 1963, Pub. L. 88–205, pt. IV, §403(b), 77 Stat. 390; Nov. 11, 1966, Pub. L. 89–808, §2(B), 80 Stat. 1532; Dec. 23, 1985, Pub. L. 99–198, title XI, §1111(e), 99 Stat. 1475; Nov. 28, 1990, Pub. L. 101–624, title XV, §1512, 104 Stat. 3636, set out congressional declaration of policy with regard to value-added foods.
Section 1706, Pub. L. 101–624, title XV, §1517, Nov. 28, 1990, 104 Stat. 3664, related to debt-for-health-and-protection swap.
A prior section 1706, acts July 10, 1954, ch. 469, title I, §106, 68 Stat. 457; Aug. 12, 1955, ch. 873, §2, 69 Stat. 721; Aug. 8, 1961, Pub. L. 87–128, title II, §201(4), 75 Stat. 307; Dec. 16, 1963, Pub. L. 88–205, pt. IV, §403 (c)(1), 77 Stat. 390; Nov. 11, 1966, Pub. L. 89–808, §2(B), 80 Stat. 1532; Dec. 20, 1975, Pub. L. 94–161, title II, §205, 89 Stat. 852; Aug. 3, 1977, Pub. L. 95–88, title II, §211(b)(2), 91 Stat. 551; Oct. 6, 1978, Pub. L. 95–424, title I, §102(b)(2)(C), 92 Stat. 941; Dec. 29, 1981, Pub. L. 97–113, title IV, §401(6), 95 Stat. 1537; Dec. 23, 1985, Pub. L. 99–198, title XI, §1111(f), (g), 99 Stat. 1475, related to payments for commodities and use of proceeds prior to the general revision of this chapter by Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3633.
§1707. Omitted
Editorial Notes
Codification
Section, acts July 10, 1954, ch. 469, title I, §107, 68 Stat. 457; Oct. 8, 1964, Pub. L. 88–638, §1(11), 78 Stat. 1036; Sept. 6, 1965, Pub. L. 89–171, pt. III, §401, 79 Stat. 662; Nov. 11, 1966, Pub. L. 89–808, §2(B), 80 Stat. 1532, relating to policy of encouraging overseas sales of commodities, was omitted in the general revision of this chapter by Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3633.
Section, Pub. L. 89–808, §4, Nov. 11, 1966, 80 Stat. 1538; Pub. L. 95–501, title I, §101, Oct. 21, 1978, 92 Stat. 1685; Pub. L. 97–98, title XII, §1201, Dec. 22, 1981, 95 Stat. 1274; Pub. L. 98–623, title IV, §405(c), Nov. 8, 1984, 98 Stat. 3409; Pub. L. 99–198, title XI, §§1130, 1131, Dec. 23, 1985, 99 Stat. 1486; Pub. L. 100–418, title IV, §4402(b), Aug. 23, 1988, 102 Stat. 1400, provided for an export credit sales program. See section 5621 et seq. of this title.
§§1707b to 1707d. Omitted
Editorial Notes
Codification
Sections were omitted as part of the complete revision of the Agricultural Trade Act of 1978 (Pub. L. 95–501) by Pub. L. 101–624, title XV, §1531, Nov. 28, 1990, 104 Stat. 3668. See chapter 87 (§5601 et seq.) of this title.
Section 1707b, Pub. L. 95–501, title II, §201, Oct. 21, 1978, 92 Stat. 1686, provided for a program of deferred payment sales of agricultural commodities.
Section 1707c, Pub. L. 95–501, title II, §202, Oct. 21, 1978, 92 Stat. 1687, provided for a program of credit sales to People's Republic of China.
Section 1707d, Pub. L. 95–501, title II, §203, Oct. 21, 1978, 92 Stat. 1687, defined "agricultural commodity".
§§1708 to 1715. Omitted
Editorial Notes
Codification
Sections were omitted in the general revision of this chapter by Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3633.
Section 1708, act July 10, 1954, ch. 469, title I, §108, as added Dec. 23, 1985, Pub. L. 99–198, title XI, §1111(h), 99 Stat. 1476; amended Aug. 23, 1988, Pub. L. 100–418, title II, §2309, 102 Stat. 1346, related to agreements with financial intermediaries in developing countries for purchase of commodities.
A prior section 1708, acts July 10, 1954, ch. 469, title I, §108, 68 Stat. 457; Oct. 8, 1964, Pub. L. 88–638, §1(12), 78 Stat. 1037; Nov. 11, 1966, Pub. L. 89–808, §2(B), 80 Stat. 1533, which authorized Commodity Credit Corporation to finance ocean freight charges pursuant to agreements for sales of agricultural commodities for foreign currencies, was repealed by Pub. L. 97–113, title IV, §401(7), Dec. 29, 1981, 95 Stat. 1537.
Section 1709, acts July 10, 1954, ch. 469, title I, §109, 68 Stat. 457; Aug. 13, 1957, Pub. L. 85–128, §1(1), 71 Stat. 345; Sept. 6, 1958, Pub. L. 85–931, §4, 72 Stat. 1791; Sept. 21, 1959, Pub. L. 86–341, title I, §1, 73 Stat. 606; Aug. 8, 1961, Pub. L. 87–128, title II, §201(5), 75 Stat. 307; Oct. 8, 1964, Pub. L. 88–638, §1(15), 78 Stat. 1037; Nov. 11, 1966, Pub. L. 89–808, §2(B), 80 Stat. 1533; July 29, 1968, Pub. L. 90–436, §2(b), 82 Stat. 450; Dec. 20, 1975, Pub. L. 94–161, title II, §206, 89 Stat. 853; Dec. 22, 1981, Pub. L. 97–98, title XII, §1210, 95 Stat. 1281; Dec. 29, 1981, Pub. L. 97–113, title IV, §401(8), 95 Stat. 1537; Dec. 23, 1985, Pub. L. 99–198, title XI, §1112(a)(1), 99 Stat. 1478; Dec. 22, 1987, Pub. L. 100–202, §10, 101 Stat. 1329–448, related to self-help measures developing countries should take before entering into agreements for purchases of commodities.
Section 1710, act July 10, 1954, ch. 469, title I, §110, as added Nov. 11, 1966, Pub. L. 89–808, §2(B), 80 Stat. 1534, limited agreements under this subchapter so that they would not call for appropriations of more than $1,900,000,000 for any calendar year.
Section 1711, act July 10, 1954, ch. 469, title I, §111, as added Dec. 20, 1975, Pub. L. 94–161, title II, §207, 89 Stat. 853; amended Aug. 3, 1977, Pub. L. 95–88, title II, §202, 91 Stat. 545, restricted 75% of food aid under this subchapter to countries meeting International Development Association poverty criterion.
Section 1712, act July 10, 1954, ch. 469, title I, §112, as added Aug. 3, 1977, Pub. L. 95–88, title II, §203, 91 Stat. 545; amended H. Res. 89, Feb. 5, 1979; Dec. 16, 1980, Pub. L. 96–533, title VII, §701(c), 94 Stat. 3156, prohibited financing of commodity sales to foreign governments engaging in gross violations of human rights.
Section 1713, act July 10, 1954, ch. 469, title I, §113, as added Aug. 3, 1977, Pub. L. 95–88, title II, §204, 91 Stat. 546, required priority to be given to financing sales of food and fiber commodities.
Section 1714, act July 10, 1954, ch. 469, title I, §114, as added Aug. 3, 1977, Pub. L. 95–88, title II, §205, 91 Stat. 546, related to provision of high protein, blended and fortified foods to developing countries, and waiver of repayments.
Section 1715, act July 10, 1954, ch. 469, title I, §115, as added Sept. 29, 1977, Pub. L. 95–113, title XII, §1202, 91 Stat. 955; amended H. Res. 89, Feb. 5, 1979; Dec. 22, 1981, Pub. L. 97–98, title XII, §1211, 95 Stat. 1281, related to commodity sale procedures.