(e) 574 (1) 575 The President shall suspend assistance to the government of any country to which assistance is provided under this or any other Act when the government of such country or any government agency or subdivision within such country on or after January 1, 1962 (A) 576, 577 has nationalized or expropriated or seized ownership or control of property owned by any United States citizen or by any corporation, partnership, or association not less than 50 per centum beneficially owned by United States citizens, or (B) 576, 577 has taken steps to repudiate or nullify existing contracts or agreements with any United States citizen or any corporation, partnership, or association not less than 50 per centum beneficially owned by United States citizens, or (C) 576, 577 has imposed or enforced discriminatory taxes or other exactions, or restrictive maintenance or operational conditions, or has taken other actions, which have the effect of nationalizing, expropriating, or otherwise seizing ownership or control of property so owned, and such country, government agency, or government subdivision fails within a reasonable time (not more than six months after such action, or, in the event of a referral to the Foreign Claims Settlement Commission of the United States within such period as provided herein, not more than twenty days after the report of the Commission is received) to take appropriate steps, which may include arbitration, to discharge its obligations under international law toward such citizen or entity, including speedy compensation for such property in convertible foreign exchange, equivalent to the full value thereof, as required by international law, or fails to take steps designed to provide relief from such taxes, exactions, or conditions, as the case may be; and such suspension shall continue until the President is satisfied that appropriate steps are being taken, and the provisions of this subsection shall not be waived with respect to any country unless the President determines and certifies that such a waiver is important to the national interests of the United States. Such certification shall be reported immediately to Congress. 578 Upon request of the President (within seventy days after such action referred to in subparagraphs (A), (B), or (C) of paragraph (1) 579 of this section), the Foreign Claims Settlement Commission of the United States (established pursuant to Reorganization Plan No. 1 of 1954, 68 Stat. 1279) is hereby authorized to evaluate expropriated property, determining the full value of any property nationalized, expropriated, or seized, or subject to discriminatory or other actions as aforesaid, for purposes of this subsection and to render an advisory report to the President within ninety days after 575 Paragraph designation "(1)" was added by sec. 301(d)(1) of the FA Act of 1964. 576 Sec. 301(d)(2) of the FA Act of 1964 redesignated subpars. (1), (2), and (3) as subpars. (A), (B), and (C), respectively. 577 Sec. 301(d)(2) of the FA Act of 1964 redesignated subpars. (1), (2), and (3) as subpars. (A), (B), and (C), respectively. 578 The words to this point, beginning with "the provisions of this subsection were sub stituted in lieu of "no other provision of this Act shall be construed to authorize the President to waive the provisions of this subsection," by sec. 15 of the FA Act of 1973. 579 Sec. 301(d)(3) of the FA Act of 1964 substituted the words "subparagraphs (A), (B), or (C) of paragraph (1)" for the words "paragraphs (1), (2), or (3)”. (j) 590 The President shall consider terminating assistance under this or any other Act to any country which permits, or fails to take adequate measures to prevent, the damage or destruction by mob action of United States property within such country, and fails to take appropriate measures to prevent a recurrence thereof and to provide adequate compensation for such damage or destruction. (k) 591 Without the express approval of Congress, no assistance shall be furnished under this Act to any country for construction of any productive enterprise with respect to which the aggregate value of assistance to be furnished by the United States will exceed $100,000,000, except that this sentence does not apply with respect to assistance for construction of any productive enterprise in Egypt which is described in the presentation materials to Congress. 592 Except as otherwise provided in section 506,593 no military assistance to be furnished beginning July 1, 1966, by the United States will exceed $100,000,000 unless such program has been included in the presentation to the Congress during its consideration of authorizations for appropriations under this Act or of appropriations pursuant to authorizations contained in this Act. No provision of this or any other Act shall be construed to authorize the President to waive the provisions of this subsection. (1) 594 The President shall consider denying assistance under this Act to the government of any less developed country which, after December 31, 1966, has failed to enter into an agreement with the President to institute the investment guaranty program under section 234(a)(1) of this Act, providing protection against the specific risks of inconvertibility under subparagraph (A), and expropriation or confiscation under subparagraph (B), of such section 234(a)(1). (m) 595 [Repealed-1981] 590 Subsec. (j), which was added by sec. 301(e)(3) of the FA Act of 1963, was amended by sec. 301(f(1) of the FA Act of 1967. It formerly read as follows: "No assistance under this Act shall be furnished to Indonesia unless the President determines that the furnishing of such assistance is essential to the national interest of the United States. The President shall keep the Foreign Relations Committee and the Appropriations Committee of the Senate and the Speaker of the House of Representatives fully and currently informed of any assistance furnished to Indonesia under this Act." 591 Subsec. (k), which was added by sec. 301(e)(3) of the FA Act of 1963, was amended by sec. 301(h)(2) of the FA Act of 1966. It formerly read as follows: "(k) Until the enactment of the Foreign Assistance Act of the 1965 or other general legislation, during the calendar year 1965, authorizing additional appropriations to carry out programs of assistance under this Act, no assistance shall be furnished under this Act to any country for construction of any productive enterprise with respect to which the aggregate value of such assistance to be furnished by the United States will exceed $100,000,000. No other provision of this Act shall be construed to authorize the President to waive the provisions of this subsection.' 592 The words to this point beginning with ", except that this sentence does not apply" were added by sec. 606 of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 757). A reference to fiscal years 1977, 1980, and 1981 which previously appeared at the end of this sentence (the latter two added by sec. 203 of Public Law 96-533 (94 Stat. 3145)) were deleted by sec. 702 of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1544). 593 Sec. 301(2) of the FA Act of 1967 substituted "506" for "510". 594 Subsec. (1), which was added by sec. 301(e)(3) of the FA Act of 1963, was amended by sec. 301(hX3) of the FA Act of 1936. It formerly read as follows: "(1) No assistance shall be provided under this Act after December 31, 1966, to the government of any less developed country which has failed to enter into an agreement with the President to institute the investment guaranty program under section 221(b)(1) of this Act, providing protection against the specific risks of inconvertibility under subparagraph (A), and expropriation or confiscation under subparagraph (B), of such section 221(b)(1).” 595 Subsec. (m), as added by sec. 301(e)(3) of the FA Act of 1963 and amended by sec. 301(g) of the FA Act of 1964, was repealed by sec. 734(a)(1) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1560). It formerly read as follows: Continued Lithuania. Mongolian People's Republic. Socialist Federal Republic of Yugoslavia. Socialist Republic of Romania. Socialist Republic of Vietnam. Tibet. Union of Soviet Socialist Republics (including its captive constituents republics.) 586 (2) 584 Notwithstanding the provisions of paragraph (1) of this subsection, the President may remove a country, for such period as the President determines, from the application of this subsection, and other provisions which reference this subsection, if the President determines and reports to the Congress that such action is important to the national interest of the United States. It is the sense of the Congress that when consideration is given to authorizing assistance to a country removed from the application of this subsection, one of the factors to be weighed, among others, is whether the country in question is giving evidence of fostering the establishment of a genuinely democratic system, with respect for internationally recognized human rights. (g) 587 Notwithstanding any other provision of law, no monetary assistance shall be made available under this Act to any government or political subdivision or agency of such government which will be used to compensate owners for expropriated or nationalized property and, upon finding by the President that such assistance has been used by any government for such purpose, no further assistance under this Act shall be furnished to such government until appropriate reimbursement is made to the United States for sums so diverted. This prohibition shall not apply to monetary assistance made available for use by a government (or a political subdivision or agency of a government) to compensate nationals of that country in accordance with a land reform program, if the President determines that monetary assistance for such land reform program will further the national interests of the United States.588 (h) 587 The President shall adopt regulations and established procedures to insure that United States foreign aid is not used in a manner which, contrary to the best interests of the United States, promotes or assists the foreign aid projects or activities of the Communist-bloc countries. (i) 589 * * * [Repealed-1981] 586 The parenthetical phrase was added by sec. 301(e) of the FA Act of 1964. 587 Subsecs. (g) and (h) were added by sec. 301(d)(3) of the FA Act of 1962. 588 The last sentence of subsec. (g) was added by sec. 1203 of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 277). 589 Subsec. (i), as added by sec. 301(e)(3) of the FA Act of 1963 and amended by sec. 301(h)(1) of the FA Act of 1966, was repealed by sec. 734(a)(1) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1560). Formerly, subsec. (i) had prohibited any foreign assistance or sales under Public Law 480 to countries engaging in or preparing for aggressive military efforts or participating in an international conference involving the planning of insurrection or subversion directed against the United States or other nations receiving American foreign aid or Public Law 480 sales. (j) 590 The President shall consider terminating assistance under this or any other Act to any country which permits, or fails to take adequate measures to prevent, the damage or destruction by mob action of United States property within such country, and fails to take appropriate measures to prevent a recurrence thereof and to provide adequate compensation for such damage or destruction. (k) 591 Without the express approval of Congress, no assistance shall be furnished under this Act to any country for construction of any productive enterprise with respect to which the aggregate value of assistance to be furnished by the United States will exceed $100,000,000, except that this sentence does not apply with respect to assistance for construction of any productive enterprise in Egypt which is described in the presentation materials to Congress. 592 Except as otherwise provided in section 506,593 no military assistance to be furnished beginning July 1, 1966, by the United States will exceed $100,000,000 unless such program has been included in the presentation to the Congress during its consideration of authorizations for appropriations under this Act or of appropriations pursuant to authorizations contained in this Act. No provision of this or any other Act shall be construed to authorize the President to waive the provisions of this subsection. (1) 594 The President shall consider denying assistance under this Act to the government of any less developed country which, after December 31, 1966, has failed to enter into an agreement with the President to institute the investment guaranty program under section 234(a)(1) of this Act, providing protection against the specific risks of inconvertibility under subparagraph (A), and expropriation or confiscation under subparagraph (B), of such section 234(a)(1). (m) 595 [Repealed-1981] 590 Subsec. (j), which was added by sec. 301(e)(3) of the FA Act of 1963, was amended by sec. 301(f/1) of the FA Act of 1967. It formerly read as follows: "No assistance under this Act shall be furnished to Indonesia unless the President determines that the furnishing of such assistance is essential to the national interest of the United States. The President shall keep the Foreign Relations Committee and the Appropriations Committee of the Senate and the Speaker of the House of Representatives fully and currently informed of any assistance furnished to Indonesia under this Act." 591 Subsec. (k), which was added by sec. 301(e)(3) of the FA Act of 1963, was amended by sec. 301(h) (2) of the FA Act of 1966. It formerly read as follows: "(k) Until the enactment of the Foreign Assistance Act of the 1965 or other general legislation, during the calendar year 1965, authorizing additional appropriations to carry out programs of assistance under this Act, no assistance shall be furnished under this Act to any country for construction of any productive enterprise with respect to which the aggregate value of such assistance to be furnished by the United States will exceed $100,000,000. No other provision of this Act shall be construed to authorize the President to waive the provisions of this subsection." 592 The words to this point beginning with ", except that this sentence does not apply" were added by sec. 606 of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 757). A reference to fiscal years 1977, 1980, and 1981 which previously appeared at the end of this sentence (the latter two added by sec. 203 of Public Law 96-533 (94 Stat. 3145)) were deleted by sec. 702 of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1544). 593 Sec. 301(f)(2) of the FA Act of 1967 substituted "506" for "510". 594 Subsec. (1), which was added by sec. 301(e)(3) of the FA Act of 1963, was amended by sec. 301(h)(3) of the FA Act of 1936. It formerly read as follows: "(1) No assistance shall be provided under this Act after December 31, 1966, to the government of any less developed country which has failed to enter into an agreement with the President to institute the investment guaranty program under section 221(b)(1) of this Act, providing protection against the specific risks of inconvertibility under subparagraph (A), and expropriation or confiscation under subparagraph (B), of such section 221(b)(1)." 595 Subsec. (m), as added by sec. 301(e)(3) of the FA Act of 1963 and amended by sec. 301(g) of the FA Act of 1964, was repealed by sec. 734(a)(1) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1560). It formerly read as follows: Continued (0) 597 In determining whether or not to furnish assistance under this Act, consideration shall be given to excluding from such assistance any country which hereafter seizes, or imposes any penalty or sanction against, any United States fishing vessel on account of its fishing activities in international waters. The provisions of this subsection shall not be applicable in any case governed by international agreement to which the United States is a party. (p) 598 *** [Repealed-1974] (q) 599 No assistance shall be furnished under this Act to any country which is in default, during a period in excess of six calendar months, in payment to the United States of principal or interest on any loan made to such country under this Act, unless such country meets its obligations under the loan or unless the President determines that assistance to such country is in the national interest and notifies the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate of such determination. (r) 599 No recipient of a loan made under the authority of this Act, any part of which is outstanding on or after the date of enactment of this subsection, shall be relieved of liability for the repayment of any part of the principal of or interest on such loan. (s) 600 (1) In order to restrain arms races and proliferation of sophisticated weapons, and to ensure that resources intended for economic development are not diverted to military purposes, the President shall take into account before furnishing development loans, Alliance loans or supporting assistance to any country under this "(m) No assistance shall be furnished on a grant basis under this Act to any economically developed nation capable of sustaining its own defense burden and economic growth, except (1) to fulfill firm commitments made prior to July 1, 1963, or (2) additional orientation and training expenses under part II hereof during each fiscal year in amount not to exceed $500,000." 596 Subsec. (n), as added by sec. 301(d)(4) of the FA Act of 1965 and amended by the FA Act of 1966, 1967, and 1974, was repealed by sec. 123(b) of the International Development and Food Assistance Act of 1977 (Public Law 95-88; 91 Stat. 541). It formerly read as follows: "(n) No loans, credits, guaranties, or grants or other assistance shall be furnished under this or any other Act, and no sales shall be made under the Agricultural Trade Development and Assistance Act of 1954, to any country which sells or furnishes to North Vietnam, or which permits ships or aircraft under its registry to transport to or from North Vietnam, any equipment, materials, or commodities, so long as the regime in North Vietnam gives support to hostilities in South Vietnam, unless the President determines that such loans, credits, guaranties, grants, other assistance, or sales are in the national interest of the United States." 597 Subsec. (o) was added by sec. 301(d)4) of the FA Act of 1965. 598 Subsec. (p), which was added by sec. 301(h)(5) of the FA Act of 1966, and related to assistance to the United Arab Republic, was repealed by Sec. 44 of the FA Act of 1974. 599 Subsecs. (q) and (r) were added by sec. 301(h)(5) of the FA Act of 1966. See Presidential Determination of October 30, 1985 that it is in the national interest to furnish assistance to Costa Rica in fiscal year 1986, 50 F.R. 48271. 600 Subsec. (s), which was added by sec. 301(f) (4) of the FA Act of 1967, was amended by sec. 303(a) of the FA Act of 1969. It formerly read as follows: "(s) In furnishing development assistance under this Act, and in making sales under the Agricultural Trade Development and Assistance Act of 1954, as amended, the President shall take into account (1) the percentage of the recipient or purchasing country's budget which is devoted to military purposes, and (2) the degree to which the recipient or purchasing country is using its foreign exchange resources to acquire military equipment. When the President finds that development assistance under this Act, or sales under the Agricultural Trade Development and Assistance Act of 1954, as amended, are being diverted to military expenditures, or a recipient or purchasing country is diverting its own resources to unnecessary military expenditures, to a degree which materially interferes with its development, the President shall terminate such assistance and sales until he is assured that such diversion will no longer take place. No other provision of this Act shall be construed to authorize the President to waive the provisions of this subsection." |