take appropriate measures to prevent a recurrence thereof and to provide adequate compensation for such damage or destruction.

(k) 625 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. 626 Except as otherwise provided in section 506,627 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) 628 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 (m) 629 [Repealed-1981]

(n) 630 *

625 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.' 626 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 were added by sec. 203 of Public Law 96-533 (94 Stat. 3145)), was deleted by sec. 702 of the International Security and Development Cooperation Act of 1981 (Public Law 97-113, 95 Stat. 1544).

627 Sec. 301(f)(2) of the FA Act of 1967 substituted "506" for "510".

628 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)."

629 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:

"(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."

30 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, Continued

(0) 631 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)

632 * *

[Repealed-1974]

(q) 633 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) 633 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) 634 (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 Act, and before making sales under the Agricultural Trade Development and Assistance Act of 1954, as amended: 635

(A) the percentage of the recipient or purchasing country's budget which is devoted to military purposes; and

(B) the degree to which the recipient or purchasing country is using its foreign exchange or other 636 resources to acquire military 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."

631 Subsec. (0) was added by sec. 301(d)(4) of the FA Act of 1965.

632 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.

633 Subsecs. (q) and (r) were added by sec. 301(h)(5) of the FA Act of 1966.

634 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."

635 For text, see page 939.

636 Sec. 734(b) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113, 95 Stat. 1560) added the words "or other" in subpar. (B) and repealed subpar. (C). Subpar. (C) formerly read as follows:

"(C) the amount spent by the recipient or purchasing country for the purchase of sophisticated weapons systems, such as missile systems and jet aircraft for military purposes, from any country.

(2) The President shall report annually to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate his actions in carrying out this provision.

(t) 637 No 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, 638 in or to any country which has severed or hereafter severs diplomatic relations with the United States or with which the United States has severed or hereafter severs diplomatic relations, unless (1) diplomatic relations have been resumed with such country and (2) agreements for the furnishing of such assistance or the making of such sales, as the case may be, have been negotiated and entered into after the resumption of diplomatic relations with such country.

(u) 637 In any decision to provide or continue to provide any program of assistance to any country under the Foreign Assistance Act of 1961, as amended, there shall be taken into account the status of the country with respect to its dues, assessments, and other obligations to the United Nations; and where such country is delinquent with respect to any such obligations for the purposes of the first sentence of Article 19 of the United Nations Charter, the President shall furnish the Committee on Foreign Relations of the Senate and the Speaker of the House of Representatives a report setting forth the assurance given by the government of the country concerned of paying all of its arrearages and of placing its payments of such obligations on a current basis, or a full explanation of the unusual or exceptional circumstances which render it economically incapable of giving such assurance. (v) 639

*

* [Repealed-1974]

(W) 640*** [Repealed-1978]

(x) 641, 642 (1) All military assistance, all sales of defense articles and services (whether for cash or by credit, guaranty, or any other means), and all licenses with respect to the transportation of arms, ammunitions, and implements of war (including technical data relating thereto) to the Government of Turkey, shall be suspended on the date of enactment of this subsection unless and until the President determines and certifies to the Congress that the Government of Turkey is in compliance with the Foreign Assistance Act of 1961, the Foreign Military Sales Act, 643 and any agreement entered into under such Acts, and that substantial progress toward agreement has been made regarding military forces in Cyprus: Provided, That

637 Subsecs. (t) and (u) were added by sec. 301(f)(4) of the FA Act of 1967. 638 For text, see page 939.

639 Subsec. (v) which was added by sec. 301 of the FA Act of 1971 was repealed by sec. 24 of the FA Act of 1974. Former subsec. (v) concerned assistance to Greece.

640 Subsec. (w), which had been added by the FA Act of 1971 and had concerned a suspension of aid to Pakistan, was repealed by sec. 502(d)(1) of the International Development and Food Assistance Act of 1978 (Public Law 95-424, 92 Stat. 959).

641 22 U.S.C. 2370. Subsec. (x) was added by sec. 22 of the FA Act of 1974.

642 Sec. 13(a) of the International Security Assistance Act of 1978 (Public Law 95-384, 92 Stat. 737) specified that subsec. (x) would be of no further force and effect once the President had determined and certified to the Congress that resumption of aid to Turkey was in the national interest as well as in the interest of NATO and that Turkey was acting in good faith toward achieving a peaceful settlement of the Cyprus problem. The President made such a determination, dated September 26, 1978. See page 457 for full text of sec. 13(a).

643 Renamed the Arms Export Control Act.

for the fiscal year 1978 644 the President may suspend the provisions of this subsection and of section 3(c) of the Arms Export Control Act 645 with respect to cash sales and extensions of credits and guaranties under such Act for the procurement of such defense articles and defense services as the President determines are necessary to enable Turkey to fulfill her defense responsibilities as a member of the North Atlantic Treaty Organization, except that during the fiscal year 1978 646 the total value of defense articles and defense services sold to Turkey under such Act, either for cash or financed by credits and guaranties, shall and guaranties, shall not exceed $175,000,000.647 Any such suspension shall be effective only so long as Turkey observes the cease-fire on Cyprus, does not increase its military forces or its civilian population on Cyprus, and does not transfer to Cyprus any United States supplied arms, ammunition, or implements of war. The determination required by the proviso in the first sentence of this paragraph shall be made, on a case-bycase basis, with respect to each cash sale, each approval for use of credits, and each approval for use of a guaranty for Turkey. Each such determination shall be reported to the Congress and shall be accompanied by a full and complete statement of the reasons supporting the President's determination and a statement containing the information specified in clauses (A) through (D) of section 2(c)(4) of the Act of October 6, 1975 (Public Law 94-104). 648 In any case involving the sale of significant combat equipment on the United States Munitions List in which the congressional review provisions of section 36(b) of the Arms Export Control Act 649 do not apply, the President may not issue the letter of offer or approve the use of the credits or guaranty, as the case may be, until the end of the thirty-day period beginning on the date on which the report required by the preceding sentence is submitted to the Congress.

650

644 Sec. 22(d)(1) of the International Security Assistance Act of 1977 (Public Law 95-92, 91 Stat. 624) struck out the references to fiscal years 1976 and 1977 and added the references to fiscal year 1978.

645 For text, see page 260.

646 Sec. 22(d)(2) of the International Security Assistance Act of 1977 (Public Law 95-92, 91 Stat. 624) added the words "during the fiscal year 1978", and struck out the following that had previously appeared at this point:

"(A) during the fiscal year 1976 and the period beginning July 1, 1976, and ending September 30, 1976, the total value of defense articles and defense services sold to Turkey under such Act, either for cash or financed by credits and guaranties, shall not exceed $125,000,000, and (B) during the fiscal year 1977."

647 The figure, "$175,000,000", was inserted in lieu of "$125,000,000" by sec. 22(d)(3) of the International Security Assistance Act of 1977 (Public Law 95-92, 91 Stat. 624).

648 For text, see page 613.

649 For text, see page 291.

*

650 Sec. 403 of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329, 90 Stat. 757) amended sec. 620(x)(1) beginning with the words "Provided, That for the fiscal year *". Sec. 620(x)(1) formerly read as follows: Provided, That the President is authorized to suspend the provisions of this section and such acts if he determines that such suspension will further negotiations for a peaceful solution of the Cyprus conflict. Any such suspension shall be effective only until February 5, 1975, and only if, during that time, Turkey shall observe the ceasefire and shall neither increase its forces in Cyprus nor transfer to Cyprus any U.S. supplied implements of war."

Sec. 620(A) had previously been amended also at the point beginning with the word "Provided" by sec. 2(c)(1) of Public Law 94-104. However, pursuant to sec. 2(cX5) of Public Law 94-104, subsec. (c) did not become effective until enactment of foreign assistance legislation authorizing sales, credits, and guaranties under the Foreign Military Sales Act for fiscal year 1976. Such authorization for fiscal year 1976 was not enacted until passage of the International Security Assistance and Arms Export Control Act of 1976. Since sec. 403 of such Act further amended sec. 620(x)(1), the amendments contained in sec. 2(c)(1) of Public Law 94-104 never became effective. See page 613 for complete text of Public Law 94-104.

(2) 651 The President shall submit to the Congress within 60 days after the enactment of this paragraph 652 and at the end of such succeeding sixty-day period, a report on progress made during such period toward the conclusion of a negotiated solution of the Cyprus conflict.

Sec. 620A. 653, 654 Prohibition on Assistance to Countries Supporting International Terrorism.-(a) The United States shall not provide any assistance under this Act, the Agricultural Trade Development and Assistance Act of 1954, the Peace Corps Act, the Export-Import Bank Act of 1945, 655 or the Arms Export Control Act, to any country which the President determines

(1) grants sanctuary from prosecution to any individual or group which has committed an act of international terrorism,

or

(2) otherwise supports international terrorism.

(b) The President may waive the application of subsection (a) to a country if the President determines that national security or hu

651 Par. (2) was added by sec. 2(a)(2) of Public Law 94-104.

652 Par. (2) did not become effective until enactment of the International Security Assistance and Arms Export Control Act of 1976 on June 30, 1976. See sec. 2(c)(5) of Public Law 94-104 (page 615) for explanation of the effective date of par. (2).

653 22 U.S.C. 2371. Sec 620A was added by sec. 303 of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329, 90 Stat. 753).

The Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988 (Public Law 100-202, 101 Stat. 1329-178) provided the following:

"OPPOSITION TO ASSISTANCE TO TERRORIST COUNTRIES BY INTERNATIONAL FINANCIAL INSTITUTIONS "SEC. 575. (a) INSTRUCTIONS FOR UNITED STATES EXECUTIVE DIRECTORS.-The Secretary of the Treasury shall instruct the United States Executive Director of each international financial institution to vote against any loan or other use of the funds of the respective institution to or for a country for which the Secretary of State has made a determination under section 6(j) of the Export Administration Act of 1979.

"(b) DEFINITION.-For purposes of this section, the term "international financial institution" includes

"(1) the International Bank for Reconstruction and Development, the International Development Association, and the International Monetary Fund; and

"(2) wherever applicable, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, and the African Development Fund.

"PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST COUNTRIES

"SEC. 576. Notwithstanding any other provision of law, funds appropriated for bilateral assistance under any heading of this Act and funds appropriated under any such heading in a provision of law enacted prior to fiscal year 1988

"(1) shall not be obligated or expended for assistance to a country listed in section 6(j) of the Export Administration Act of 1979 on the date of enactment of this Act or placed on that list thereafter,

"(2) if obligated before such date as assistance for such country, shall not disbursed, and "(3) if expended before such date for assistance to be delivered to such country from the United States or by United States nationals, then no such delivery shall be made, unless such assistance is for humanitarian purposes.'

654 Sec. 620A was amended and restated by sec. 503(a) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83, 99 Stat. 220). It formerly read:

"Sec. 620A. Prohibition Against Furnishing Assistance to Countries Which Grant Sanctuary to International Terrorists. (a) Except where the President finds national security to require otherwise, the President shall terminate all assistance under this Act to any government which aids or abets, by granting sanctuary from prosecution to, any individual or group which has committed an act of international terrorism and the President may not thereafter furnish assistance to such government until the end of the one year period beginning on the date of such termination, except that if during its period of ineligibility for assistance under this section such government aids or abets, by granting sanctuary from prosecution to, any other individual or group which has committed an act of international terrorism, such government's period of ineligibility shall be extended for an additional year for each such individual or group.

"(b) If the President finds that national security justifies a continuation of assistance to any government described in subsection (a), he shall report such finding to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate."

655 The reference to the Export-Import Bank Act of 1945 was added by sec. 521 of the Further Continuing Appropriations, 1986 (Public Law 99-190, 99 Stat. 1305).