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of the Mutual Defense Assistance Control Act of 1951 (22 U.S.C. 1611 et seq.) to furnish 73 assistance, on such terms and conditions as he may specify, to institutions referred to in subsection (a) of this section, and to hospital centers for medical education and research outside the United States, founded or sponsored by United States. citizens."4

(c) 75 To carry out the purposes of this section, there are authorized to be appropriated to the President $25,000,000 for the fiscal year 1979, which amount is to remain available until expended.76

(d)" Notwithstanding the provisions of subsection (b), funds appropriated under this section may be used for assistance to centers for pediatric plastic and reconstructive surgery established by Children's Medical Relief International, except that assistance may not be furnished for the domestic operations of any such center located in the United States, its territories or possessions.

Sec. 215.66 Loans to Small Farmers. *** [Repealed-1978] Sec. 216.66 Voluntary Agencies. * * *** [Repealed-1978] Sec. 217.66 Used Equipment.-* * * [Repealed-1978]

Sec. 218.66 Fish and Other Protein Concentrates.-* * [Repealed-1978]

Sec. 219.78 Prototype Desalting Plant.-(a) In furtherance of the purposes of this part and for the purpose of improving existing, and developing and advancing new technology and experience in the design, construction, and operation of large-scale desalting plants of advanced concepts which will contribute materially to low-cost desalination in all countries, including the United States, the President, if he determines it to be feasible, is authorized to participate in the development of a large-scale water treatment and desalting prototype plant and necessary appurtenances to be constructed in Israel as an integral part of a dual-purpose power generating and desalting project. Such participation shall include financial, technical, and such other assistance as the President deems appropriate to provide for the study, design, construction, and, for a limited demonstration period of not to exceed five years, operation and maintenance of the water treatment and desalting facilities of the dual-purpose project.

(b) Any agreement entered into under subsection (a) of this section shall include such terms and conditions as the President deems appro

72 For text, see page 212.

73 Sec. 103(b) (2) of the FAAct of 1963 substituted the words "to furnish" for the words "foreign currencies accruing to the United States Government under any Act, for purposes of subsection (2) of this section, and for".

74 Sec. 103(c)(1) of the FAAct of 1966 substituted the words to this point, beginning with "to institutions referred to" in lieu of "to hospitals outside the United States founded or sponsored by United States citizens and serving as centers for medical education and research".

75 Sec. 4(2) of the FAAct of 1973 amended and restated subsection (c).

76 The authorization figure for fiscal year 1979 was added by Sec. 114 (1) of the International Development and Food Assistance Act of 1978 (92 Stat. 950). Authorizations under Sec. 214 for recent years included the following: Fiscal year 1975-$19,000.000; fiscal year 1976-$25,000,000; fiscal year 1977-$25,000,000; fiscal year 1978

$25,000,000.

FA Appropriations Act, 1979: For necessary expenses to carry out the provisions of section 214, $25,000,000: Provided, That $1,000,000 shall be available only for support of Israeli students studying in American sponsored centers of learning in the Arab countries and Arab students studying in American sponsored centers of learning in Israel.

77 Sec. 114 (2) of the International Development and Food Assistance Act of 1978 (92 Stat. 950) repealed subsections (d) and (e) (which had been added by the FAAct of 1973), and redesignated subsection (f) (which had been added by Public Law 95-88, 91 Stat. 539) as subsection (d).

78 22 USC § 2179. Sec. 219 was added by Sec. 104 of the FAAct of 1969.

priate to insure, among other things, that all information, products, uses, processes, patents, and other developments obtained or utilized in the development of this prototype plant will be available without further cost to the United States for the use and benefit of the United States throughout the world, and to insure that the United States, its officers and employees have a permanent right to review data and have access to such plant for the purpose of observing its operations and improving science and technology in the field of desalination.

(c) In carrying out the provisions of this section, the President may enter into contracts with public or private agencies and with any person without regard to sections 3648 and 3709 of the Revised Statutes of the United States (31 U.S.C. 529 and 41 U.S.C. 5).

(d) Nothing in this section shall be construed as intending to deprive the owner of any background patent or any right which such owner may have under that patent.

(e) In carrying out the provisions of this section, the President may utilize the personnel, services, and facilities of any Federal agency.

(f) The United States costs, other than its administrative costs, for the study, design, construction, and operation of a prototype plant under this section shall not exceed either 50 per centum of the total capital costs of the facilities associated with the production of water, and 50 per centum of the operation and maintenance costs for the demonstration period, or $20,000,000, whichever is less. There are authorized to be appropriated, subject to the limitations of this subsection, such sums as may be necessary to carry out the provisions of this section, including administrative costs thereof. Such sums are authorized to remain available until expended.

(g) No funds appropriated for the Office of Saline Water pursuant to the appropriation authorized by the Act of July 11, 1969 (83 Stat. 45, Public Law 91-43), or prior authorization Acts, shall be used to carry out the purposes of this section.

Sec. 220.66 Programs for Peaceful Communication.—' [Repealed-1978]

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Sec. 220A. Suez Canal.-*** [Repealed-1978]

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Title III-Housing and Other Credit Guaranty Programs Sec. 221.80 Housing Guaranties.-The Congress recognizes that shelter requirements are among the most fundamental of human needs. Shelter for most people in the developing countries consists largely of domestic materials assembled by local labor. While recognizing that most financing for such housing must come from domestic resources, the Congress finds that carefully designed programs involving United States capital and expertise can increase the availability of domestic financing for improved housing and related services for low-income people by demonstrating to local entrepreneurs and institutions that providing low-cost housing can be financially viable. The Congress reaffirms, therefore, that the United States should continue to assist developing countries in marshalling resources for low-cost housing.

79 Title III was added by Sec. 105 of the FAAct of 1969. Sec. 8(a)(1) of the FAAct of 1974 substituted the title heading "Housing and Other Credit Guaranty Programs" in lieu of "Housing Guaranties".

60 22 USC 2181. Sec. 221, which was added by the FAAct of 1969, was amended and restated by Sec. 115(a) of the International Development and Food Assistance Act of 1978 (92 Stat. 950).

Particular attention should be given to programs which will support pilot projects for low-cost shelter or which will have a maximum demonstration impact on local institutions and national policy. The Congress declares that the long run goal of all such programs should be to develop domestic construction capabilities and to stimulate local credit. institutions to make available domestic capital and other management and technological resources required for effective low-cost shelter programs and policies.

Sec. 222.81 Authorization. (a) To carry out the policy of section 221, the President is authorized to issue guaranties to eligible investors (as defined in section 238 (c)) assuring against losses incurred in connection with loans made for projects meeting the criteria set forth in section 221. The total principal amount of guaranties issued under this title or heretofore issued under prior housing guaranty authorities, which are outstanding at any one time, shall not exceed $1,180,000,000. The authority of this section shall continue until September 30, 1980. The President may issue regulations from time to time with regard to the terms and conditions upon which such guaranties shall be issued and the eligibility of lenders.

(b) Activities carried out under this section shall emphasize

(1) projects which provide improved home sites to poor families on which to build shelter, and related services;

(2) projects comprised of expandable core shelter units on serviced sites;

(3) slum upgrading projects designed to conserve and improve existing shelter;

(4) shelter projects for low income people designed for demonstration or institution building purposes; and

(5) community facilities and services in support of projects authorized under this section to improve the shelter occupied by the poor.

(c) In issuing guaranties under this section with respect to projects in a country which require the use or conservation of energy, the President shall give consideration to the use of solar energy technologies, where such technologies are economically and technically feasible. Technologies which may be used include solar hot water systems, solar heating and cooling, passive solar heating, biomass conversion, photovoltaic and wind applications, and community-scale solar thermal applications.

Sec. 222A.82 Agricultural and Productive Credit and Self-Help Community Development Programs.-(a) It is the sense of the Congress that in order to stimulate the participation of the private sector in the economic development of less-developed countries in Latin America, the authority conferred by this section should be used to establish pilot programs in not more than five Latin American countries to encourage private banks, credit institutions, similar private lending organizations, cooperatives, and private nonprofit development organizations to make loans on reasonable terms to organized groups and individuals residing in a community for the purpose of enabling such groups and individuals to carry out agricultural credit and self-help community development projects for which they are

81 22 USC 2182. Sec. 222, which was added by the FAAct of 1969 and had concerned housing projects in Latin American countries, was amended and restated by Sec. 115(a) of the International Development and Food Assistance Act of 1978 (92 Stat. 950). 62 22 USC 2182a. Sec. 222A was added by Sec. 8(a) (2) of the FAAct of 1974.

unable to obtain financial assistance on reasonable terms. Agricultural credit and assistance for self-help community development projects should include, but not be limited to, material and such projects as wells, pumps, farm machinery, improved seed, fertilizer, pesticides, Vocational training, food industry development, nutrition projects, improved breeding stock for farm animals, santitation facilities, and looms and other handicraft aids.

(b) To carry out the purposes of subsection (a), the agency primarily responsible for administering part I is authorized to issue guaranties, on such terms and conditions as it shall determine, to private lending institutions, cooperatives, and private nonprofit development organizations in not more than five Latin American countries assuring against loss of not to exceed 50 per centum of the portfolio of such loans made by any lender to organized groups or individuals residing in a community to enable such groups or individuals to carry out agricultural credit and self-help community development projects for which they are unable to obtain financial assistance on reasonable terms. In no event shall the liability of the United States exceed

75

per centum of any one loan.

(c) The total face amount of guaranties issued under this section outstanding at any one time shall not exceed $15,000,000. Not more than 10 per centum of such sum shall be provided for any one institution, cooperative, or organization.

(d) The Inter-American Foundation shall be consulted in developing criteria for making loans eligible for guaranty coverage in Latin America under this section.

(e) Not to exceed $3,000,000 of the guaranty reserve established under section 223 (b) shall be available to make such payments as may be necessary to discharge liabilities under guaranties issued under this section or any guaranties previously issued under section 240 of this Act.

(f) Funds held by the Overseas Private Investment Corporation pursuant to section 236 may be available for meeting necessary administrative and operating expenses for carrying out the provisions of this section through June 30, 1976.

(g) The Overseas Private Investment Corporation shall, upon enactment of this subsection, transfer to the agency primarily responsible for administering part I all obligations, assets, and related rights and responsibilities arising out of, or related to the predecessor program provided for in section 240 of this Act.

(h) The authority of this section shall continue until September 30, 1979.83

(i) Notwithstanding the limitations in subsection (c) of this section, foreign currencies owned by the United States and determined by the Secretary of the Treasury to be excess to the needs of the United States may be utilized to carry out the purposes of this section, including the discharge of liabilities under this subsection. The authority conferred by this subsection shall be in addition to authority conferred by any other provision of law to implement guaranty programs utilizing excess local currency.84

83 This authority was extended from September 30, 1978 to September 30, 1979 by Sec. 115(b) of the International Development and Food Assistance Act of 1978 (92 Stat. 951). Such authority had previously been extended from December 31, 1977 by Public Law 95-88 (91 Stat. 540).

84 Subsection (j), which previously appeared at this point and concerned a one-time reporting requirement, was repealed by Sec. 502(d)(1) of the International Development and Food Assistance Act of 1978 (92 Stat. 959).

Sec. 223.85 General Provisions.-(a) A fee shall be charged for each guaranty issued under section 86 222 or 222A 87 in an amount to be determined by the President. In the event the fee to be charged for such type guaranty is reduced, fees to be paid under existing contracts for the same type of guaranty may be similarly reduced.

(b) The amount of $50,000,000 of fees accumulated under prior investment guaranty provisions repealed by the Foreign Assistance Act of 1969, together with all fees collected in connection with guaranties issued under section 86 222 or under prior housing guaranty authorities,88 shall be available for meeting necessary administrative and operating expenses of carrying out the provisions of section 222 and administering housing guaranties heretofore authorized under this title and under 89 prior housing guaranty provisions repealed by the Foreign Assistance Act of 1969 (including, but not limited to expenses pertaining to personnel, supplies, and printing), subject to such limitations as may be imposed in annual appropriation Acts; for meeting management and custodial costs incurred with respect to currencies or other assets acquired under guaranties made pursuant to section 222 86 or heretofore pursuant to this title or prior Latin American and other housing guaranty authorities repealed by the Foreign Assistance Act of 1969; and to pay the cost of investigating and adjusting (including cost of arbitration) claims under such guaranties; and shall be available for expenditure in discharge of liabilities under such guaranties until such time as all such property has been disposed of and all such liabilities have been discharged or have expired, or until all such fees have been expended in accordance with the provisions of this subsection. Fees collected in connection with guaranties issued under section 222A shall likewise be available to meet similar expenses, costs, or liabilities incurred in connection with the programs authorized by that section.91

90

(c) Any payments made to discharge liabilities under guaranties issued under this title or 92 section 222 or heretofore under prior Latin American or other housing guaranty authorities repealed by the Foreign Assistance Act of 1969, shall be paid first out of fees referred to in subsection (b) (excluding amounts required for purposes other than the discharge of liabilities under guaranties) as long as such fees are available, and thereafter shall be paid out of funds, if any, realized from the sale of currencies or other assets acquired in connection with any payment made to discharge liabilities under such guaranties as long as funds are available, and finally out of funds hereafter made available pursuant to subsection (e).

85 22 USC 2183. Sec. 223 was added by Sec. 105 of the FAAct of 1969.

88 A reference to section 221 was struck by Sec. 115 of the International Development and Food Assistance Act of 1978 (92 Stat. 951).

87 Sec. 8(a) (3) of the FAAct of 1974 substituted "section 221, 222, or 222A" in lieu of "section 221 or section 222". See also footnote 86.

88 Sec. 117(b)(2)(A) of the International Development and Food Assistance Act of 1977 (91 Stat. 540) struck out the word "hereunder" and inserted the words "under section 221 or 222 or under prior housing guaranty authorities". See also footnote 86. The words to this point beginning with "222 and administering were substituted in lieu of "221 and section 222 of" by Sec. 115(d) (2) of the International Development and Food Assistance Act of 1978 (92 Stat. 951).

90 The words "this title or" were added by Sec. 115(d) (4) of the International Development and Food Assistance Act of 1978 (92 Stat. 951).

91 This sentence was added by Sec. 117(b)(2) of the International Development and Food Assistance Act of 1977 (91 Stat. 540).

92 The words "under this title or" were substituted in lieu of "section 221 or" by Sec. 115(e) of the International Development and Food Assistance Act of 1978 (92 Stat. 951).