(2) 37 programs of research into, and evaluation of, the process of economic development in less developed countries and areas, into the factors affecting the relative success and costs of development activities, and into the means, techniques, and such other aspects of development assistance as the President may determine in order to render such assistance of increasing value and benefit;

(3) programs of reconstruction following natural or manmade disasters and programs of disaster preparedness, including the prediction of and contingency planning for natural disasters abroad; 38

(4) programs designed to help solve special development problems in the poorest countries and to make possible proper utilization of infrastructure and related projects funded with earlier United States assistance; and

(5) programs of urban development, with particular emphasis on small, labor intensive enterprises, marketing systems for small producers, and financial and other institutions which enable the urban poor to participate in the economic and social development of their country.

(e) 36 (1) There are authorized to be appropriated to the President for purposes of this section, in addition to funds otherwise available for such purposes, $207,000,000 for fiscal year 1986 and $207,000,000 for fiscal year 1987.39

(2) Amounts appropriated under this section are authorized to remain available until expended.

(f) 36 Of the amounts authorized to be appropriated to carry out this chapter $5,000,000 for fiscal year 1986 and $5,000,000 for fiscal year 1987 shall be used to finance cooperative projects among the United States, Israel, and developing countries.

37 Sec. 104(b)(1) of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 360) struck out par. (2), which concerned various programs designed to alleviate energy problems experienced by developing countries, and redesignated pars. (3) through (6) as pars. (2) through (5), respectively.

38 The reference to the program of disaster preparedness was added by sec. 304(a) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1533). 39 The authorization figures for fiscal years 1986 and 1987 were added by sec. 309(b) of the International Security and Development Act of 1985 (Public Law 99-83; 99 Stat. 190). Authorizations for recent years included the following: Fiscal year 1976-$99,550,000; fiscal year 1977$104,500,000; fiscal year 1978-$105,000,000; fiscal year 1979-$126,244,000; fiscal year 1980$125,000,000; fiscal year 1981-$140,000,000; fiscal year 1982-$147,200,000; fiscal year 1983$147,200,000; fiscal year 1984-$160,000,000; fiscal year 1985-no authorization.

Congress did not enact an authorization for fiscal year 1988. Instead, the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988 (sec. 101(e) of the Continuing Appropriations for 1988, Public Law 100-202) waived the requirement for authorizations and appropriated the following for "Private Sector, Environment, and Energy, Development Assistance": "For necessary expenses to carry out the provisions of section 106, $120,709,000: Provided, That not less than $5,000,000 shall be made available only for cooperative projects among the United States, Israel and developing countries: Provided further, That not less than $5,000,000 shall be made available only for the Central American Rural Electrification Support project: Provided further, That not less than $1,500,000 shall be made available only for rural electrification activities for the Caribbean. "

The Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988, also provided the following for "Science and Technology, Development Assistance": "For necessary expenses to carry out the provisions of section 106, $8,662,270."

The amount for "Private Sector, Environment, and Energy, Development Assistance" for fiscal year 1988 does not include funds appropriated separately for sub-Saharan Africa. Sec. 105 of Public Law 96-53 struck out language in subsec. (e) which provided $30,000,000 during the period July 1, 1975, to Sept. 3, 1977, for reimbursement to private voluntary agencies of the United States for costs incurred with respect to the shipment of food and nonfood commodities provided through private donations.

Sec. 107.40 Appropriate Technology.—(a) In carrying out activities under this chapter, the President shall place special emphasis on the use of relatively smaller, cost-saving, labor-using technologies that are generally most appropriate for the small farms, small businesses, and small incomes of the poor.

(b) Funds made available to carry out this chapter should be used to the extent practicable for activities in the field of appropriate technology, including support of an expanded and coordinated private effort to promote the development and dissemination of appropriate technology in developing countries.

Sec. 108.41 Application of Existing Provision.-*** [Repealed-1978]

Sec. 108.42 Private Sector Revolving Fund.-(a) The Congress finds that the development of private enterprise, including cooperatives, is a vital factor in the stable growth of developing countries and in the development and stability of a free, open, and equitable international economic system. It is therefore in the best interests of the United States to assist the development of the private sector in developing countries and to engage the United States private sector in that process. In order to promote such private sector development, the President is authorized to establish a revolving fund account in the United States Treasury. All funds deposited in such account shall, notwithstanding any provision in an appropriation Act to the contrary, be free from fiscal year limitations.

(b) of the funds made available under this chapter in each of the fiscal years 1986 and 1987 up to $18,000,000 may be deposited in this account.43 Such funds used in accordance with the policies and authorities of this section shall be in addition to other funds available for private sector activities under other authorities in this Act. Any reflows and income arising from activities carried out pursuant to this section, including loan repayments and fee income (as provided in subsection (e) of this section), shall be deposited into the revolving fund and remain available to carry out the purposes of this section. All funds in such account may be invested in obligations of the United States.

(c)(1) The agency primarily responsible for administering this part is authorized to use the funds maintained in this revolving fund account to furnish assistance in furtherance of the policy of subsection (a) on such terms and conditions as it may determine.

40 22 U.S.C. 2151e. Sec. 107, as added by sec. 306 of Public Law 94-161, was amended and restated by sec. 107 of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 947).

41 Sec. 108, as added by the FA Act of 1973, was repealed by sec. 102(g)(2)(K)(i) of the International Development and Food Assistance Act of 1978 (92 Stat. 943).

42 22 U.S.C. 2151f. Sec. 108 was added by the International Security and Development Assistance Authorizations Act of 1983 (sec. 101(b)(2) of the Further Continuing Appropriations, 1984; Public Law 98-151; 97 Stat. 972). Sec. 101(b)(2) of Public Law 98-151 stipulated that sec. 108 would be enacted as contained in sec. 407 of H.R. 2992, as reported by the House Committee on Foreign Affairs on May 17, 1983.

43 Congress did not enact an authorization for fiscal year 1988. Instead, the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988 (sec. 101(e) of the Continuing Appropriations for 1988, Public Law 100-202) waived the requirement for authorizations and appropriated the following for the "Private Sector Revolving Fund":

"For necessary expenses to carry out the provisions of section 108 of the Foreign Assistance Act of 1961, not to exceed $9,000,000 to be derived by transfer from funds appropriated to carry out the provisions of chapter 1 of part I of such Act, to remain available until expended. During fiscal year 1988, obligations for assistance from amounts in the revolving fund account under section 108 shall not exceed $12,000,000."

Amounts in the revolving fund account shall be available for obligation for assistance under this section only to such extent as may be provided in advance in appropriation Acts. Assistance may be provided under this section without regard to sections 604(a) and 620(r) of this Act.

(2) Assistance under this section may be provided only to support private sector activities which

(A) are consistent with the United States development assistance policies set forth in section 102 of this Act and with the development priorities of the host country;

(B) are the types of activities for which assistance may be provided under sections 103 through 106 of this Act;

(C) will have a demonstration effect;

(D) will be innovative;

(E) are financially viable;

(F) will maximize the development impact appropriate to the host country, particularly in employment and the use of appropriate technology; and

(G) are primarily directed to making available to small business enterprises and cooperatives necessary support and services which are not otherwise generally available.

In determining whether an enterprise is a small business enterprise, the agency primarily responsible for administering this part shall take into consideration the enterprise's total net fixed assets and number of employees, together with the relevant definition utilized by the host country government and the International Bank for Reconstruction and Development and other international organizations.

(3)(A) Not more than $3,000,000 may be made available under this section to support any one project.

(B) Not more than 50 per centum of the financial support for any project may be provided under this section, and a substantial portion of the financial support for a project assisted under this section must be provided by sources within the host country.

(C) Not more than 20 per centum of the assets of the revolving fund account under this section may be used to support projects in any one country.

(D) In order to maximize the impact on institution building, loans under this section shall be made primarily to intermediary entities which provide necessary support and services for private sector activities.

(E) Loans under this section shall be at or near the interest rate otherwise available to the recipient.

(d)(1) If at any time the assets of the revolving fund account exceeds $100,000,000, the President shall remit the amount in excess of $100,000,000 to the United States Treasury.

(2) As used in this section, "assets" includes amounts in the revolving fund account plus the value of investments made with amounts from the fund plus the current value of outstanding obligations under loans under this section.

(3) In addition to the requirement of paragraph (1), at the end of any fiscal year, the agency primarily responsible for administering this part may determine that amounts in the revolving fund are sufficient to permit the remittance to the United States Treasury

of an amount equal to a portion or the total amount of appropriated funds deposited in the revolving fund. Any such remittance shall be deemed to be a decrease in the appropriated funds in the revolving fund. After remittance has been made of an amount equal to the total amount of appropriated funds, the revolving fund shall consist and be deemed to consist entirely of nonappropriated funds.

(e) A fee may be charged, where appropriate, in carrying out activities with funds from the revolving fund authorized in this section. The amount of any such fee shall be determined by the agency primarily responsible for administering this part.

(f) In the event the revolving fund is terminated, all unobligated money in the fund at the time of such termination shall be transferred to and become part of the miscellaneous receipts account of the Treasury.

(g) As part of its annual congressional presentation documents submitted to the Congress, the agency primarily responsible for administering this part shall include a description of projects_proposed to be funded from the revolving fund account for that fiscal year. To the extent that projects are proposed for funding which are not contained in the annual congressional presentation documents, at least fifteen days' advance notification shall be provided to the Congress in accordance with section 634A of this Act.

(h) Not later than December 31 of each year, the President shall submit a comprehensive report which details all projects funded under this section during the previous fiscal year, all reflows to the revolving fund account, a status report on all projects currently contained in the fund's portfolio. Such reports shall include, but not be limited to, information regarding numbers and kinds of beneficiaries reached, amounts and kinds of benefits provided by the funded projects to targeted populations, and a justification for projects within the context of the goals and objectives of the United States development assistance program.

Sec. 109.44 Transfer of Funds.-Whenever 45 the President determines it to be necessary for the purposes of this chapter, not to exceed 15 per centum of the funds made available for any provision of this chapter may be transferred to, and consolidated with, the funds made available for any other provision of this chapter, and may be used for any of the purposes for which such funds may be used, except that the total in the provision for the benefit of which the transfer is made shall not be increased by more than 25 per centum of the amount of funds made available for such provision. The authority of sections 610(a) and 614(a) of this Act may not be used to transfer funds made available under this chapter for use for purposes of any other provision of this Act except that the authority of such sections may be used to transfer for the purposes of section 667 not to exceed five per centum of the amount of funds made available for section 667(a)(1).46

44 22 U.S.C. 2151g. Sec. 109 was added by sec. 2(3) of the FA Act of 1973.

45 The words "Notwithstanding sec. 108 of this Act," which had previously appeared in front of "whenever," were struck by sec. 102(g)(2)(K)(ii) of the International Development and Food Assistance Act of 1978 (92 Stat. 943).

46 The words to this point beginning with "except that the authority of such sections・・ " were added by sec. 129(b) of the International Development and Food Assistance Act of 1977 (91 Stat. 543).

Sec. 110.47 Cost-Sharing and Funding Limits.-No assistance shall be furnished by the United States Government to a country under sections 103 through 106 of this Act until the country provides assurances to the President, and the President is satisfied, that such country provide at least 25 per centum of the costs of the entire program, project, or activity with respect to which such assistance is to be furnished, except that such costs borne by such country may be provided on an "in-kind" basis. 48

Sec. 111.49 Development and Use of Cooperatives.-In order to strengthen the participation of the rural and urban poor in their country's development, high priority shall be given to increasing the use of funds made available under this Act for technical and capital assistance in the development and use 50 of cooperatives in the less developed countries which will enable and encourage greater numbers of the poor to help themselves toward a better life, 51

Sec. 112.52 Prohibiting Police Training.-* * * [Repealed-1974] Sec. 113.53 Integrating Women Into National Economies.—(a) In recognition of the fact that women in developing countries play a

47 22 U.S.C. 2151h. Sec. 110 was added by sec. 2(3) of the FA Act of 1973. Sec. 1211(a)(3) of the International Security and Development Cooperation Act of 1985 deleted par. (b) and removed the "(a)" designation from the preceding paragraph. Par. (b) previously read as follows:

"No grant assistance shall be disbursed by the United States Government under sections 103 through 106 of this Act for a project, for a period exceeding thirty-six consecutive months, without further justification satisfactory to the Congress and efforts being made to obtain sources of financing within that country and from other foreign countries and multilateral organizations.". The initial phrase of subsec. (b), which had been added by Public Law 95-88 (91 Stat. 535), was struck by sec. 112(b)(2) of the International Development and Food Assistance Act of 1978 (92 Stat. 949). It previously read as follows:

"Except for grants to countries determined to be relatively least developed based on the United Nations Conference on Trade and Development list of 'relatively least developed countries',".

48 The following phrase, which had been added by Public Law 94-161 (89 Stat. 849) and previously appeared at this point, was struck by sec. 112(b)(1) of the International Development and Food Assistance Act of 1978 (92 Stat. 949): "and except that the President may waive this costsharing requirement in the case of a project or activity in a country which the agency primarily responsible for administering part I of this Act determines is relatively least developed based on the United Nations Conference on Trade and Development list of 'relatively least developed countries.""

49 22 U.S.C. 2151i. Sec. 111, which was added by sec. 2(3) of the FA Act of 1973, was amended by sec. 308 of Public Law 94-161 (89 Stat. 849). It formerly read as follows: "In order to strengthen the participation of the urban and rural poor in their country's development, not less than $20,000,000 of the funds made available for the purposes of this chapter shall be available during the fiscal years 1974 and 1975 only for assistance in the less developed countries which will enable and encourage greater numbers of the poor to help themselves toward a better life." 50 The words "technical and capital assistance in the development and use" were inserted in lieu of "assistance in the development" by sec. 107(a) of the International Development and Food Assistance Act of 1977 (Public Law 95-88; 91 Stat. 535).

$1 A sentence, which earmarked funds specifically for technical assistance to carry out the purposes of this section and had previously appeared at this point, was repealed by sec. 122 of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 366).

52 Sec. 112, which was added by sec. 2(3) of the FA Act of 1973, was repealed by sec. 30(b) of the FA Act of 1974. (See sec. 660 of this Act, "Prohibiting Police Training," page 230.)

53 22 U.S.C. 2151k. Sec. 113, as added by sec. 2(3) of the FA Act of 1973, was amended and restated by sec. 108 of the International Development and Food Assistance Act of 1977 (Public Law 95-88; 91 Stat. 536). Sec. 113 formerly read as follows:

"SEC. 113. INtegrating WOMEN INTO NATIONAL ECONOMIES.-Part I of this Act shall be administered so as to give particular attention to those programs, projects, and activities which tend to integrate women into the national economies of foreign countries, thus improving their status and assisting the total development effort."

Subsecs. (b) and (c), as added by Public Law 95-88 and which required a report from the President concerning the impact of development programs, projects, and activities on the integration of women into the developing economies of countries receiving assistance under this part, were repealed by sec. 122 of the International Development Cooperation Act of 1979 (Public Law 9653; 93 Stat. 366) (such report was submitted to the Congress on Aug. 3, 1978). This subsec. (b), Continued