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(e) 98 The President shall establish an interagency Development Loan Committee, consisting of such officers from such agencies of the United States Government as he may determine, which shall, under the direction of the President, establish standards and criteria for lending operations under this chapter in accordance with the foreign and financial policies of the United States. Except in the case of officers serving in positions to which they were appointed by the President by and with the advice and consent of the Senate, officers assigned to the Committee shall be so assigned by the President by and with the advice and consent of the Senate.

Sec. 123.99 Private and Voluntary Organizations and Cooperatives in Overseas Development.a) The Congress finds that the participation of rural and urban poor people in their countries' development can be assisted and accelerated in an effective manner through an increase in activities planned and carried out by private and voluntary organizations and cooperatives. Such organizations and cooperatives, embodying the American spirit of self-help and assistance to others to improve their lives and incomes, constitute an important means of mobilizing private American financial and human resources to benefit poor people in developing countries. The Congress declares that it is in the interest of the United States that such organizations and cooperatives expand their overseas development efforts without compromising their private and independent nature. The Congress further declares that the financial resources of such organizations and cooperatives should be supplemented by the contribution of public funds for the purpose of undertaking development activities in accordance with the principles set forth in section 102 and, if necessary and determined on a case-by-case basis, for the purpose of sharing the cost of developing programs related to such activities.100 The Congress urges the Administrator of the agency primarily responsible for administering this part, in implementing programs authorized under this part, to draw on the resources of private and voluntary organizations and cooperatives to plan and carry out development activities and to establish simplified procedures for the development and approval of programs to be carried out by such private and voluntary organizations and cooperatives as have demonstrated a capacity to undertake effective development activities. 101

98 Subsec. (e) formerly appeared in this Act as sec. 204. Such sec. 204 was redesignated as subsec. (e) of this section by sec. 102(d) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 941).

99 22 U.S.C. 215lu. Sec. 123 was added by sec. 102(e) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 941).

Sec. 502 of the Kenneth M. Ludden Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2002 (Public Law 107–115; 115 Stat. 2139; 22 U.S.C. 215lu note), provided the following:

"PRIVATE AND VOLUNTARY ORGANIZATIONS

“PRIVATE AND VOLUNTARY ORGANIZATIONS "SEC. 502. (a) None of the funds appropriated or otherwise made available by this Act for development assistance may be made available to any United States private and voluntary organization, except any cooperative development organization, which obtains less than 20 percent of its total annual funding for international activities from sources other than the United States Government: Provided, That the Administrator of the United States Agency for International Development, after informing the Committees on Appropriations, may, on a case-by-case basis, waive the restriction contained in this subsection, after taking into account the effectiveness of the overseas development activities of the organization, its level of volunteer support, its financial viability and stability, and the degree of its dependence for its financial support on the agency.

*"b) Funds appropriated or otherwise made available under title II of this Act should be made available to private and voluntary organizations at a level which is at least equivalent to the level provided in fiscal year 1995.".

100 The words to this point beginning with “and, if necessary were added by sec. 307(1) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3147).

(b) In order to further the efficient use of United States voluntary contributions for development, relief, and rehabilitation of friendly peoples, the President is authorized to use funds made available for the purposes of this chapter and chapter 10 of this part 102 to pay transportation charges on shipments by the American National Red Cross and by United States voluntary agencies registered with the Agency for International Development. 103

(c) Reimbursement under this section may be provided for transportation charges on shipments from United States ports, or in the case of excess or surplus property supplied by the United States from foreign ports, to ports of entry abroad or to points of entry abroad in cases (1) of landlocked countries, (2) where ports cannot be used effectively because of natural or other disturbances, (3) where carriers to a specified country are unavailable, or (4) where a substantial savings in costs or time can be effected by the utilization of points of entry other than ports.

(d) Where practicable, the President shall make arrangements with the receiving country for free entry of such shipments and for the making available by the country of local currencies for the purpose of defraying the transportation costs of such shipments from the port or point of entry of the receiving country to the designated shipping point of the consignee.

(e) 104 Prohibitions on assistance to countries contained in this or any other Act shall not be construed to prohibit assistance by the agency primarily responsible for administering this part in support of programs of private and voluntary organizations and cooperatives already being supported prior to the date such prohibition becomes applicable. The President shall take into consideration, in any case in which statutory prohibitions on assistance would be applicable but for this subsection, whether continuation of support for such programs is in the national interest of the United States. If the President continues such support after such date, he shall prepare and transmit, not later than one year 105 after such date, to the Speaker of the House of Representatives and to the chairman (g) 106 * * *

101 The words to this point beginning with “and to establish were added by sec. 307(2) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3147).

102 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 1 of this Act, providing for long-term development in sub-Saharan Africa, and made a conforming amendment by inserting “and chapter 10 of this part” here.

103 This reference to the Agency for International Development was substituted in lieu of a reference to the Advisory Committee on Voluntary Foreign Aid by sec. 121 of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 366).

104 Subsec. (e) was added by sec. 307(3) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3147).

See a similar authority in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2000 (H.R. 3422, as introduced on November 17, 1999, enacted by reference in sec. 1000(a)(2) of Public Law 106-113; 113 Stat. 1535), in section 541.

105 Sec. 309(a) of the International Security and Development Cooperation Act of 1985 (Public Law 99–83; 99 Stat. 190), substituted the words “one year” in lieu of “thirty days”.

of the Committee on Foreign Relations of the Senate a report setting forth the reasons for such continuation.

(f) 106 For each of the fiscal years 1986 through 1989 107 funds in an amount not less than thirteen and one-half percent of the aggregate amount appropriated for that fiscal year to carry out sections 103(a), 104(b), 104(c), 105, 106, 121, and 491 of this Act shall be made available for the activities of private and voluntary organizations, and the President shall seek to channel funds in an amount not less than sixteen percent of such aggregate amount for the activities of private and voluntary organizations. Funds made available under chapter 4 of part II of this Act for the activities of private and voluntary organizations may be considered in determining compliance with the requirements of this subsection. 107

* (Repealed-1998] (h) 108 The Congress recognizes that, in addition to their role in social and economic development, cooperatives provide an opportunity for people to participate directly in democratic decisionmaking. Therefore, assistance under this chapter shall be provided to rural and urban cooperatives which offer large numbers of lowand middle-income people in developing countries an opportunity to participate directly in democratic decisionmaking. Such assistance shall be designed to encourage the adoption of self-help, private sector cooperative techniques and practices which have been successful in the United States.

Sec. 124.109 Relatively Least Developed Countries.(a) Relatively least developed countries (as determined on the basis of criteria comparable to those used for the United Nations General Assembly list of "least developed countries") are characterized by extreme poverty, very limited infrastructure, and limited administrative capacity to implement basic human needs growth strategies. In such countries special measures may be necessary to insure the full effectiveness of assistance furnished under this part.

(b) For the purpose of promoting economic growth in these countries, the President is authorized and encouraged to make assistance under this chapter available on a grant basis to the maximum extent that is consistent with the attainment of United States development objectives.

106 Subsecs. (f) and (g) were added by sec. 309 of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1535). Subsec. (g) was repealed by title II 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). Subsec. (g), as amended, had read as follows:

"(g) After December 31, 1984, funds made available to carry out section 103(a), 104(b), 104(c), 105, 106, 491, or 496 of this Act may not be made available for programs of any United States private and voluntary organization which does not obtain at least 20 percent of its total annual financial support for its international activities from sources other than the United States Government, except that this restriction does not apply with respect to programs which, as of that date, are receiving financial support from the agency primarily responsible for administering this part. The Administrator of the agency primarily responsible for administering this part may, on a case-by-case basis, waive the restriction established by this subsection, after taking into account the effectiveness of the overseas development activities of the organization, its level of volunteer support, its financial viability and stability, and the degree of its dependence for its financial support on the agency primarily responsible for administering this part.".

107 Sec. 309(b) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 190), amended sec. 123(by striking out “1982, 1983 and 1984” and substituting “1986 through 1989”; by striking out “twelve” and by inserting in lieu thereof “thirteen and one half", and by adding the current last sentence.

108 Subsec. (h) was added by sec. 310 of Public Law 99-83 (99 Stat. 190).

109 22 U.S.C. 215lv. Sec. 124 was added by sec. 112(a)(1) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 948).

(c) 110 (1) The Congress recognizes that the relatively least developed countries have virtually no access to private international capital markets. Insofar as possible, prior assistance terms should be consistent with present grant assistance terms for relatively least developed countries. Therefore, notwithstanding section 620(r) of this Act and section 321 of the International Development and Food Assistance Act of 1975 but subject to paragraph (2) of this subsection, the President on a case-by-case basis, taking into account the needs of the country for financial resources and the commitment of the country to the development objectives set forth in sections 101 and 102—

(A) may permit a relatively least developed country to place amounts, which would otherwise be paid to the United States as payments on principal or interest on liability incurred by that country under this part (or any predecessor legislation) into local currency accounts (in equivalent amounts of local currencies as determined by the official exchange rate for United States dollars) for use by the relatively least developed country, with the concurrence of the Administrator of the agency primarily responsible for administering this part, for activities which are consistent with section 102; and

(B) may waive interest payments on liability incurred by a relatively least developed country under this part (or any predecessor legislation) if the President determines that that country would be unable to use for development purposes the equivalent amounts of local currencies which could be made avail

able under subparagraph (A). (2) The aggregate amount of interest waived and interest and principal paid into local currency accounts under this subsection in any fiscal year may not exceed the amount approved for such purpose in an Act appropriating funds to carry out this chapter for that fiscal year, which amount may not exceed the amount authorized to be so approved by the annual authorizing legislation for development assistance programs. Amounts due and payable during fiscal year 1981 to the United States from relatively least developed countries on loans made under this part (or any predecessor legislation) are authorized to be approved for use, in accordance with the provisions of paragraph (1) of this subsection, in an amount not to exceed $10,845,000.111

(3) In exercising the authority granted by this subsection, the President should act in concert with other creditor countries.

(d) The President may on a case-by-case basis waive the requirement of section 110(a) for financial or “in kind” contributions in the case of programs, projects, or activities in relatively least developed countries.

(e) Section 110(b) shall not apply with respect to grants to relatively least developed countries.

110 Sec. 112(a)2) of the International Development and Food Assistance Act of 1978 (92 Stat. 949) stated that the authority granted by subsec. (c) shall not become effective until October 1, 1979.

111 This sentence was added by sec. 109 of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 363). The authorization figure for fiscal year 1981 was substituted in lieu of the fiscal year 1980 authorization ($18,800,000) by sec. 308 of the International Security and Development Cooperation Act of 1980 (Public Law 96–533; 94 Stat. 3147). 112 22 U.S.C. 2151w. Sec. 125 was added by sec. 113 of the International Development and Food Assistance Act of 1978 (Public Law 95–424; 92 Stat. 950). The responsibility of the Administrator mentioned in this section 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).

Sec. 125.112 Project and Program Evaluation.-(a) The Administrator of the agency primarily responsible for administering this part is directed to improve the assessment and evaluation of the programs and projects carried out by that agency under this chapter. The Administrator shall consult with the appropriate committees of the Congress in establishing standards for such evaluations. (b) 113 * * * (Repealed-1981)

Sec. 126.114 Development and Ilicit Narcotics Production.a) The Congress recognizes that illicit narcotics cultivation is related to overall development problems and that the vast majority of all individuals employed in the cultivation of illicit narcotics reside in the developing countries and are among the poorest of the poor in those countries and that therefore the ultimate success of any effort to eliminate illicit narcotics production depends upon the availability of alternative economic opportunities for those individuals, upon other factors which assistance under this chapter could address, as well as upon direct narcotics control efforts.

(b)(1) 115 In planning programs of assistance under this chapter, and chapter 10 of this part, 115 and under chapter 4 of part II 115 for countries in which there is illicit narcotics cultivation, the agency primarily responsible for administering this part should give priority consideration to programs which would help reduce illicit narcotics cultivation by stimulating broader development opportunities.

(2) 115 The agency primarily responsible for administering this part may utilize resources for activities aimed at increasing awareness of the effects of production and trafficking of illicit narcotics on source and transit countries.

(c) In furtherance of the purposes of this section, the agency primarily responsible for administering this part shall cooperate fully with, and share its expertise in development matters with, other agencies of the United States Government involved in narcotics control activities abroad.

Sec. 127.116 Accelerated Loan Repayments.—The Administrator of the agency primarily responsible for administering this

113 Subsec. (b), which required the President to report to Congress on improvements to the evaluation of projects and programs conducted by the international financial institutions and the United Nations Development Program, was repealed by sec. 734(a)(1) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1560). Such report was submitted on March 26, 1979.

114 22 U.S.C. 2151x. Sec. 126 was added by sec. 110 of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 363).

115 Sec. 603 of the International Security and Development Cooperation Act of 1985 (Public Law 99–83; 99 Stat. 190), amended subsec. (b) by inserting the words: “and under chapter 4 of Part II” and by inserting the paragraph designation “(1)", and by adding a new paragraph (2).

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 1 of this Act, providing for long-term development in sub-Saharan Africa, and made a conforming amendment by inserting “, and chapter 10 of this part,".

116 22 U.Š.Č. 215ly. Sec. 127 was added by sec. 508(a) of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 379). Sec. 508(b) called on the administration to describe the efforts made to negotiate accelerated loan repayments in accordance with sec.

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