tions shall be transferred from time to time to the general fund of the Treasury. (3)716*** [Repealed-1968] Sec. 525.716 Guaranties. * * * Chapter 4-Economic Support Fund 717 NOTE.-Section 202 of the Foreign Assistance Act of 1971 transferred the former chapter 4 of part I governing supporting assistance to its present location as chapter 4 of part II of the Act. Section 202(b) of the Foreign Assistance Act of 1971 provides as follows: "Chapter 4 of part I of the Foreign Assistance Act of 1961 is hereby repealed. References to such chapter or any sections thereof shall hereafter be deemed to be references to chapter 4 of part II of the Foreign Assistance Act of 1961, as added by subsection (a) of this section, or to appropriate sections thereof. All references to part I of the Foreign Assistance Act of 1961 shall hereafter be deemed to be references also to chapter 4 of part II, and all references to part II of such Act shall be deemed not to include chapter 4 of such part II." In changing the title of chapter 4 from Security Supporting Assistance to Economic Support Fund, sec. 10(b)(6) of the International Security Assistance Act of 1978 (92 Stat. 735) stated that, after September 30, 1978, any reference to security supporting assistance shall be deemed to be a reference to assistance provided under chapter 4 of part II of this Act. 716 Par. (3) of sec. 524, and sec. 525 were repealed by sec. 45(a) of the Foreign Military Sales Act (Public Law 90-629). The subject matter of par. (3), relating to arms sales credits, is now covered in sec. 23 of the Arms Export Control Act. 717 Chapter 4, as added by the FA Act of 1971, was titled "Security Supporting Assistance," was retitled "Economic Support Fund" and comprehensively amended and restated by sec. 10(a) of the International Security Assistance Act of 1978 (Public Law 95-384; 92 Stat. 733). Sec. 10(b)(6) of the same Act stated that, after September 30, 1978, any reference in any act to security supporting assistance shall be considered to be a reference to this chapter. Sec. 201 of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 210), replaced secs. 531 and 532, amended and redesignated secs. 535 as 533, and repealed all other sections regarding earmarking of funds for specific regions or purposes. See Public Law 99-83 (99 Stat. 210), relating to ESF for the Middle East, Cyprus, Portugal, agricultural commodities under commodity import programs, tied aid credit program, and restriction on use of funds for nuclear facilities. See also secs. 644-647 of the Export-Import Bank Act Amendments of 1983 (title VI of Public Law 98-166) that established a tied aid credit program in the U.S. Export-Import Bank in order to promote U.S. exports. This program is carried out in cooperation with AID and permits the AID Administrator to draw on ESF allocated for Commodity Import Programs to finance a tied aid credit activity. See Legislation on Foreign Relations Through 2000, vol. III. See also sec. 206 of the International Security and Development Cooperation Act of 1985, which authorized not less than $50 million in fiscal year 1986 and not less than $100 million in fiscal year 1987 out of the commodity import program portion of the Economic Support Fund for use in a tied aid credit program. Sec. 531.718 Authority. (a) The Congress recognizes that, under special economic, political, or security conditions, the national interests of the United States may require economic support for countries in amounts which could not be justified solely under chapter 1 of part I or, in the case of countries in sub-Saharan Africa, chapter 10 of part 1.719 In such cases, the President is authorized to furnish assistance to countries and organizations, on such terms and conditions as he may determine, in order to promote economic or political stability. To the maximum extent feasible, the President shall provide assistance under this chapter consistent with the policy directions, purposes, and programs of part I of this Act. (b) The Secretary of State shall be responsible for policy decisions and justifications for economic support programs under this chapter, including determinations of whether there will be an economic support program for a country and the amount of the program for each country. The Secretary shall exercise this responsibility in cooperation with the Administrator of the agency primarily responsible for administering part I of this Act.720 (c) As part of the annual presentation materials for foreign assistance submitted to the Congress, the agency primarily responsible for administering this part shall provide a detailed justification for the uses and the purposes of the funds provided under this chapter. Such material shall include, but not be limited to, information concerning the amounts and kinds of cash grant transfers, the amounts and kinds of budgetary and balance-of-payments support provided, and the amounts and kinds of project assistance provided with funds made available under this chapter. (d) 721 *** [Repealed-1998] 718 22 U.S.C. 2346. 719 Sec. 562 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101-513; 104 Stat. 2026), added a new chapter 10 to part I of this Act, providing for long-term development in sub-Saharan Africa, and made a conforming amendment by inserting "or, in the case of countries in sub-Saharan Africa, chapter 10 of part I" here. 720 This responsibility, as it related to the Administrator, was transferred to the Director of IDCA, pursuant to sec. 6 of Reorganization Plan No. 2 of 1979 (establishing IDCA). The Reorganization Plan No. 2 of 1979 ceased to be effective with enactment of the Foreign Affairs Reform and Restructuring Act of 1998, pursuant to sec. 1422(a)(1) (division G of Public Law 105-277; 112 Stat. 2681). 721 Sec. 533(a)(5) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1999 (division A, sec. 101(d) of Public Law 105-277; 112 Stat. 2681), repealed subsec. (d) and sec. 609 of this Act. Subsec. (d) had read as follows: "To the maximum extent feasible, funds made available pursuant to this chapter for commodity import programs or other program assistance shall be used to generate local currencies, not less than 50 percent of which shall be available to support activities consistent with the objectives of sections 103 through 106 of this Act, and administered by the agency primarily responsible for administering part I of this Act.". Sec. 529 of the Kenneth M. Ludden Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2002 (Public Law 107-115; 115 Stat. 2148), provided the following: "SEPARATE ACCOUNTS "SEC. 529. (a) SEPARATE ACCOUNTS FOR LOCAL CURRENCIES. (1) If assistance is furnished to the government of a foreign country under chapters 1 and 10 of part I or chapter 4 of part II of the Foreign Assistance Act of 1961 under agreements which result in the generation of local currencies of that country, the Administrator of the United States Agency for International Development shall “(A) require that local currencies be deposited in a separate account established by that government; "(B) enter into an agreement with that government which sets forth "(i) the amount of the local currencies to be generated; and "(ii) the terms and conditions under which the currencies so deposited may be utilized, consistent with this section; and Continued (e) Amounts appropriated to carry out this chapter shall be available for economic programs and may not be used for military or paramilitary purposes. Sec. 532.722,723 Authorizations of Appropriations. (a) There are authorized to be appropriated to the President to carry out the purposes of this chapter "(C) establish by agreement with that government the responsibilities of the United States Agency for International Development and that government to monitor and account for deposits into and disbursements from the separate account. "(2) USES OF LOCAL CURRENCIES.-As may be agreed upon with the foreign government, local currencies deposited in a separate account pursuant to subsection (a), or an equivalent amount of local currencies, shall be used only "(A) to carry out chapter 1 or 10 of part I or chapter 4 of part II (as the case may be), for such purposes as "(i) project and sector assistance activities; or "(ii) debt and deficit financing; or "(B) for the administrative requirements of the United States Government. "(3) PROGRAMMING ACCOUNTABILITY.-The United States Agency for International Development shall take all necessary steps to ensure that the equivalent of the local currencies disbursed pursuant to subsection (a)(2)(A) from the separate account established pursuant to subsection (a)(1) are used for the purposes agreed upon pursuant to subsection (a)(2). "(4) TERMINATION OF ASSISTANCE PROGRAMS.-Upon termination of assistance to a country under chapter 1 or 10 of part I or chapter 4 of part II (as the case may be), any unencumbered balances of funds which remain in a separate account established pursuant to subsection (a) shall be disposed of for such purposes as may be agreed to by the government of that country and the United States Government. "(5) REPORTING REQUIREMENT.-The Administrator of the United States Agency for International Development shall report on an annual basis as part of the justification documents submitted to the Committees on Appropriations on the use of local currencies for the administrative requirements of the United States Government as authorized in subsection (a)(2)(B), and such report shall include the amount of local currency (and United States dollar equivalent) used and/ or to be used for such purpose in each applicable country. "(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS. (1) If assistance is made available to the government of a foreign country, under chapter 1 or 10 of part I or chapter 4 of part II of the Foreign Assistance Act of 1961, as cash transfer assistance or as nonproject sector assistance, that country shall be required to maintain such funds in a separate account and not commingle them with any other funds. "(2) APPLICABILITY OF OTHER PROVISIONS OF LAW. Such funds may be obligated and expended notwithstanding provisions of law which are inconsistent with the nature of this assistance including provisions which are referenced in the Joint Explanatory Statement of the Committee of Conference accompanying House Joint Resolution 648 (House Report No. 98-1159). “(3) NOTIFICATION.—At least 15 days prior to obligating any such cash transfer or nonproject sector assistance, the President shall submit a notification through the regular notification procedures of the Committees on Appropriations, which shall include a detailed description of how the funds proposed to be made available will be used, with a discussion of the United States interests that will be served by the assistance (including, as appropriate, a description of the economic policy reforms that will be promoted by such assistance). "(4) EXEMPTION.-Nonproject sector assistance funds may be exempt from the requirements of subsection (b)(1) only through the notification procedures of the Committees on Appropriations.". 722 22 U.S.C. 2346a. 723 Title V, subtitle B of the Security Assistance Act of 2000 (Public Law 106-280; 114 Stat. 855) provided the following authorization for assistance: "Subtitle B-Allocations for Certain Countries "SEC. 511. SECURITY ASSISTANCE FOR NEW NATO MEMBERS. "(a) FOREIGN MILITARY FINANCING.-Of the amounts made available for the fiscal years 2001 and 2002 under section 23 of the Arms Export Control Act (22 U.S.C. 2763), $30,300,000 for fiscal year 2001 and $35,000,000 for fiscal year 2002 are authorized to be available on a grant basis for all of the following countries: the Czech Republic, Hungary, and Poland. "(b) MILITARY EDUCATION AND TRAINING.-Of the amounts made available for the fiscal years 2001 and 2002 to carry out chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.), $5,100,000 for fiscal year 2001 and $7,000,000 for fiscal year 2002 are authorized to be available for all of the following countries: the Czech Republic, Hungary, and Poland. "(c) SELECT PRIORITIES.-In providing assistance under this section, the President shall give priority to supporting activities that are consistent with the objectives set forth in the following conditions of the Senate resolution of ratification for the Protocols to the North Atlantic Treaty of 1949 on the Accession of Poland, Hungary, and the Czech Republic: "(1) Condition (1)(A)(v), (vi), and (vii), relating to common threats, the core mission of NATO, and the capacity to respond to common threats. “(2) Condition (1)(B), relating to the fundamental importance of collective defense. "(3) Condition (1)C), relating to defense planning, command structures, and force goals. "(4) Conditions (4)(B)(i) and (4)(B)(ii), relating to intelligence matters. "SEC. 512. INCREASED TRAINING ASSISTANCE FOR GREECE AND TURKEY. "(a) IN GENERAL.-Of the amounts made available for the fiscal years 2001 and 2002 to carry out chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.)— "(1) $1,000,000 for fiscal year 2001 and $1,000,000 for fiscal year 2002 are authorized to be available for Greece; and “(2) $2,500,000 for fiscal year 2001 and $2,500,000 for fiscal year 2002 are authorized to be available for Turkey. "(b) USE FOR PROFESSIONAL MILITARY EDUCATION.-Of the amounts available under paragraphs (1) and (2) of subsection (a) for fiscal year 2002, $500,000 of each such amount should be available for purposes of professional military education. "(c) USE FOR JOINT TRAINING.-It is the sense of the Congress that, to the maximum extent practicable, amounts available under subsection (a) that are used in accordance with subsection (b) should be used for joint training of Greek and Turkish officers. "SEC. 513. ASSISTANCE FOR ISRAEL. "(a) DEFINITIONS.-In this section: “(1) ESF ASSISTANCE.-The term 'ESF assistance' means assistance under chapter 4 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2346 et seq.), relating to the economic support fund. "(2) FOREIGN MILITARY FINANCING PROGRAM.-The term 'Foreign Military Financing Program' means the program authorized by section 23 of the Arms Export Control Act (22 U.S.C. 2763). "(b) ESF ASSISTANCE. “(1) IN GENERAL.-Of the amounts made available for each of the fiscal years 2001 and 2002 for ESF assistance, the amount specified in paragraph (2) for each such fiscal year is authorized to be made available for Israel. “(2) COMPUTATION OF AMOUNT.-Subject to subsection (d), the amount referred to in paragraph (1) is equal to "(A) the amount made available for ESF assistance for Israel for the preceding fiscal year, minus "(B) $120,000,000. "(c) FMF PROGRAMN.— "(1) IN GENERAL.-Of the amount made available for each of the fiscal years 2001 and 2002 for assistance under the Foreign Military Financing Program, the amount specified in paragraph (2) for each such fiscal year is authorized to be made available on a grant basis for Israel. “(2) COMPUTATION OF AMOUNT.-Subject to subsection (d), the amount referred to in paragraph (1) is equal to "(A) the amount made available for assistance under the Foreign Military Financing Program for Israel for the preceding fiscal year, plus "(B) $60,000,000. "(3) DISBURSEMENT OF FUNDS.-Funds authorized to be available for Israel under subsection (b)(1) and paragraph (1) of this subsection for fiscal year 2001 shall be disbursed not later than 30 days after the date of the enactment of an Act making appropriations for foreign operations, export financing, and related programs for fiscal year 2001, or October 31, 2000, whichever date is later. "(4) AVAILABILITY OF FUNDS FOR ADVANCED WEAPONS SYSTEMS.-To the extent the Government of Israel requests that funds be used for such purposes, grants made available for Israel out of funds authorized to be available under paragraph (1) for Israel for fiscal year 2001 shall, as agreed by Israel and the United States, be available for advanced weapons systems, of which not less than $520,000,000 shall be available for the procurement in Israel of defense articles and defense services, including research and development. "(d) EXCLUSION OF RESCISSIONS AND SUPPLEMENTAL APPROPRIATIONS.-For purposes of this section, the computation of amounts made available for a fiscal year shall not take into account any amount rescinded by an Act or any amount appropriated by an Act making supplemental appropriations for a fiscal year. SEC. 514. ASSISTANCE FOR EGYPT. "(a) DEFINITIONS.-In this section: "(1) ESF ASSISTANCE.-The term 'ESF assistance' means assistance under chapter 4 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2346 et seq.), relating to the economic support fund. "(2) FOREIGN MILITARY FINANCING PROGRAM.-The term 'Foreign Military Financing Program' means the program authorized by section 23 of the Arms Export Control Act (22 U.S.C. 2763). "(b) ESF ASSISTANCE.— "(1) IN GENERAL.-Of the amounts made available for each of the fiscal years 2001 and 2002 for ESF assistance, the amount specified in paragraph (2) for each such fiscal year is authorized to be made available for Egypt. “(2) COMPUTATION OF AMOUNT.-Subject to subsection (d), the amount referred to in paragraph (1) is equal to "(A) the amount made available for ESF assistance for Egypt during the preceding fiscal year, minus "(B) $40,000,000. "(c) FMF PROGRAM. Of the amount made available for each of the fiscal years 2001 and 2002 for assistance under the Foreign Military Financing Program, $1,300,000,000 is authorized to be made available on a grant basis for Egypt. 79-664 D-9 Continued (1) $2,015,000,000 for the fiscal year 1986 and $2,015,000,000 for the fiscal year 1987 for the following_countries signing the Camp David agreement: Israel and Egypt; and 724 "(d) EXCLUSION OF RESCISSIONS AND SUPPLEMENTAL APPROPRIATIONS.-For purposes of this section, the computation of amounts made available for a fiscal year shall not take into account any amount rescinded by an Act or any amount appropriated by an Act making supplemental appropriations for a fiscal year. (e) DISBURSEMENT OF FUNDS.-Funds estimated to be outlayed for Egypt under subsection (c) during fiscal year 2001 shall be disbursed to an interest-bearing account for Egypt in the Federal Reserve Bank of New York within 30 days of the date of the enactment of this Act, or by October 31, 2000, whichever is later, provided that "(1) withdrawal of funds from such account shall be made only on authenticated instructions from the Defense Finance and Accounting Service of the Department of Defense; "(2) in the event such account is closed, the balance of the account shall be transferred promptly to the appropriations account for the Foreign Military Financing Program; and "(3) none of the interest accrued by such account should be obligated unless the Committee on Appropriations and the Committee on Foreign Relations of the Senate and the Committee on Appropriations and the Committee on International Relations of the House of Representatives are notified. "SEC. 515. SECURITY ASSISTANCE FOR CERTAIN COUNTRIES. "(a) FOREIGN MILITARY FINANCING.-Of the amounts made available for the fiscal years 2001 and 2002 under section 23 of the Arms Export Control Act (22 U.S.C. 2763)—– "(1) $18,200,000 for fiscal year 2001 and $20,500,000 for fiscal year 2002 are authorized to be available on a grant basis for all of the following countries: Estonia, Latvia, and Lithuania; "(2) $2,000,000 for fiscal year 2001 and $5,000,000 for fiscal year 2002 are authorized to be available on a grant basis for the Philippines; "(3) $4,500,000 for fiscal year 2001 and $5,000,000 for fiscal year 2002 are authorized to be available on a grant basis for Georgia; "(4) $3,000,000 for fiscal year 2001 and $3,500,000 for fiscal year 2002 are authorized to be available on a grant basis for Malta; "(5) $3,500,000 for fiscal year 2001 and $4,000,000 for fiscal year 2002 are authorized to be available on a grant basis for Slovenia; "(6) $8,400,000 for fiscal year 2001 and $8,500,000 for fiscal year 2002 are authorized to be available on a grant basis for Slovakia; "(7) $11,000,000 for fiscal year 2001 and $11,100,000 for fiscal year 2002 are authorized to be available on a grant basis for Romania; "(8) $8,500,000 for fiscal year 2001 and $8,600,000 for fiscal year 2002 are authorized to be available on a grant basis for Bulgaria; and "(9) $100,000,000 for fiscal year 2001 and $105,000,000 for fiscal year 2002 are authorized to be available on a grant basis for Jordan. "(b) IMET. Of the amounts made available for the fiscal years 2001 and 2002 to carry out chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.)— "(1) $2,300,000 for fiscal year 2001 and $4,000,000 for fiscal year 2002 are authorized to be available for all of the following countries: Estonia, Latvia, and Lithuania; "(2) $1,400,000 for fiscal year 2001 and $1,500,000 for fiscal year 2002 are authorized to be available for the Philippines; "(3) $475,000 for fiscal year 2001 and $1,000,000 for fiscal year 2002 are authorized to be available for Georgia; "(4) $200,000 for fiscal year 2001 and $1,000,000 for fiscal year 2002 are authorized to be available for Malta; "(5) $700,000 for fiscal year 2001 and $1,000,000 for fiscal year 2002 are authorized to be available for Slovenia; "(6) $700,000 for fiscal year 2001 and $1,000,000 for fiscal year 2002 are authorized to be available for Slovakia; "(7) $1,300,000 for fiscal year 2001 and $1,500,000 for fiscal year 2002 are authorized to be available for Romania; and "(8) $1,100,000 for fiscal year 2001 and $1,200,000 for fiscal year 2002 are authorized to be available for Bulgaria.". 724 The authorization under this chapter, incorporated into this law during recent years, included the following: fiscal year 1979-$1,902,000,000; fiscal year 1980-$1,935,000,000 (plus an $80,000,000 supplemental authorization for Central American Assistance); fiscal year 1981$2,065,300,000; fiscal year 1982-$2,623,500,000; fiscal year 1983-$2,723,500,000; fiscal year 1984 $3,074,000,000; fiscal year 1985-no authorization; fiscal years 1988 through 2002-no authorization. See, however, recent Security Assistance Acts, in Legislation on Foreign Relations Through 2001, vol. I-B. Title II of the Kenneth M. Ludden Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2002 (Public Law 107-115; 115 Stat. 2124), provided the following: "ECONOMIC SUPPORT FUND "For necessary expenses to carry out the provisions of chapter 4 of part II, $2,199,000,000, to remain available until September 30, 2003: Provided, That of the funds appropriated under this heading, not less than $720,000,000 shall be available only for Israel, which sum shall be |