or through enforcement of liens or pledges or otherwise to satisfy a previously incurred indebtedness), and guarantee payment against any such instrument;

(4) may determine the character of, and necessity for, obligations and expenditures of funds used in making such loans and the manner in which they shall be incurred, allowed, and paid, subject to provisions of law specifically applicable to corporations of the United States Government; and

(5) shall cause to be maintained an integral set of accounts which shall be audited by the General Accounting Office in accordance with principles and procedures applicable to commercial corporate transactions as provided by the Government Corporation Control Act, as amended (31 U.S.C. 841 et seq.).

(h) A contract or agreement which entails commitments for the expenditure of funds 557 available under chapter 1 (except development loans) 558 and title II 559 of chapter 2 of part I and under part II may, subject to any future action of the Congress, extend at any time for not more than five years.

(i) Claims arising as a result of investment guaranty operations may be settled, and disputes arising as the result thereof may be arbitrated with the consent of the parties, on such terms and conditions as the President may direct. Payment made pursuant to any such settlement, or as a result of an arbitration award, shall be final and conclusive notwithstanding any other provision of law.

(j) The provisions of section 955 of title 18 of the United States Code shall not apply to prevent any person, including any individual, partnership, corporation, or association, from acting for, or participating in, any operation or transaction arising under this Act, or from acquiring any obligation issued in connection with any operation or transaction arising under this Act.

(k) 560 Any cost-type contract or agreement (including grants) entered into with a university, college, or other educational institution for the purpose of carrying out programs authorized by part I may provide for the payment of the reimbursable indirect costs of said university, college, or other educational institution on the basis of predetermined fixed-percentage rates applied to the total or an element thereof, of the reimbursable direct costs incurred.

Sec. 636,561 Provisions on Uses of Funds.-(a) Appropriations for the purposes of or pursuant to this Act (except for Part II), allocations to any agency of the United States Government, from other appropriations, for functions directly related to the purposes of this Act, and funds made available for other purposes to the agency primarily responsible for administering part I, shall be available for:

(1) rent of buildings and space in buildings in the United States, and for repair, alteration, and improvements of such leased properties;

557 Sec. 302(g) of the FAAct of 1962 deleted the word "made" which appeared after the word "funds".

558 The words "(except development loans)" were added by Sec. 302(d) of the FAAct of 1966.

559 The reference to chapter 1 was substituted in lieu of a reference to titles V and VI by Sec. 102(g) (2) (G) of the International Development and Food Assistance Act of 1978 (92 Stat. 943).

560 Subsection (k) was added by Sec. 302 (e) of the FAAct of 1963.

561 22 USC § 2396.

(2) expenses of attendance at meetings concerned with the purposes of such appropriations of this Act, including (notwithstanding the provisions of section 9 of Public Law 60-328 (31 U.S.C. 673)) expenses in connection with meetings and persons whose employment is authorized by section 626;

(3) contracting with individuals for personal service abroad: Provided, That such individuals shall not be regarded as employees of the United States Government for the purpose of any law administered by the Civil Service Commission;

(4) purchase, maintenance, operation, and hire of aircraft: Provided, That aircraft for administrative purposes may be purchased only as specifically provided for in an appropriation or other Act;

(5) purchase and hire of passenger motor vehicle: Provided, That, except as may otherwise be provided in an appropriation or other Act, passenger motor vehicles for administratíve purposes outside the United States may be purchased for replacement only, and such vehicles may be exchanged or sold and replaced by an equal number of such vehicles and the cost, including exchange allowance, of each such replacement shall not exceed the current market price in the United States of a mid-sized sedan or station wagon meeting the requirements established by the General Services Administration for a Class III vehicle of United States manufacture (or, if the replacement vehicle is a right-hand drive vehicle, 120 percent of that price562 in the case of an automobile for the chief of any special mission or staff outside the United States established under section 631: Provided further, That passenger motor vehicles other than one for the official use (without regard to the limitations contained in section 5 of Public Law 63-127, as amended (31 U.S.C. 638a (c) (2)),563 and section 201 of Public Law 85-468 (31 U.S.C. 638 (c)) 564 of the head of the agency primarily responsible for administering part I, may be purchased for use in the United States only as may be specifically provided in an appropriation or other Act;

(6) entertainment (not to exceed $25,000 in any fiscal year except as may otherwise be provided in an appropriation or other Act);

(7) exchange of funds without regard to section 3651 of the Revised Statutes (31 U.S.C. 543) and loss by exchange;

(8) expenditures (not to exceed $50,000 in any fiscal year except as may otherwise be provided in an appropriation or other Act) of a confidential character other than entertainment: Provided, That a certificate of the amount of such expenditure, the nature of which it is considered inadvisable to specify, shall be made by the head of the agency primarily responsible for administering part I or such person as he may designate, and every such certificate shall be deemed a sufficient voucher for the amount therein specified; 565

662 The words to this point beginning with "the current market price. *" were substituted in lieu of $3,500" by Sec. 505 of the International Development and Food Assistance Act of 1978 (92 Stat. 960).

583 Sec. 302 (j) (1) of the FAAct of 1967 substituted "31 U.S.C. 638a (2))," for “(5 U.S.C. 78 (c) (2)".

504 Sec. 302 (j) (2) of the FAAct of 1967 substituted "(31 U.S.C. 638c)" for "(5 U.S.C. 78a-1)".

See also Sec. 614(a) of this Act.

(9) insurance of official motor vehicles or aircraft acquired for use in foreign countries;

(10) rent or lease outside the United States for not to exceed ten years of offices, buildings, grounds, and quarters, including living quarters to house personnel, and payments therefor in advance; maintenance, furnishings, necessary repairs, improvements, and alterations to properties owned or rented by the United States Government or made available for use to the United States Government outside the United States; and costs of fuel, water, and utilities for such properties;

(11) expenses of preparing and transporting to their former homes, or, with respect to foreign participants engaged in any program under part I, to their former homes or places of burial, and of care and disposition of, the remains of persons or members of the families of persons who may die while such persons are away from their homes participating in activities carried out with funds covered by this subsection;

(12) purchase of uniforms;

(13) payment of per diem in lieu of subsistence to foreign participants engaged in any program under part I while such participants are away from their homes in countries other than the United States, at rates not in excess of those prescribed by the standardized Government travel regulations, notwithstanding any other provision of law;

(14) use in accordance with authorities of the Foreign Service Act of 1946, as amended 566 (22 U.S.C. 801 et seq.), not otherwise provided for;

(15) ice and drinking water for use outside the United States; (16) services of commissioned officers of the Environmental Science Services Administration 593 and for the purposes of providing such services the Environmental Science Services Administration 567 may appoint not to exceed twenty commissioned officers in addition to those otherwise authorized;

(17) expenses in connection with travel of personnel outside the United States, including travel expenses of dependents (including expenses during necessary stopovers while engaged in such travel), and transportation of personal effects, household goods, and automobiles of such personnel when any part of such travel or transportation begins in one fiscal year pursuant to travel orders issued in that fiscal year, notwithstanding the fact that such travel or transportation may not be completed during the same fiscal year, and cost of transporting automobiles to and from a place of storage, and the cost of storing automobiles of such personnel when it is in the public interest or more economical to authorize storage.

(b) Funds made available for the purposes of this Act may be used for compensation, allowances, and travel of personnel including Foreign Service personnel whose services are utilized primarily for the purposes of this Act, for printing and binding without regard to the provisions of any other law, and for expenditures outside the United

500 For text, see page 525.

507 Sec. 302 (k) of the FAAct of 1967 substituted "Environmental Science Service Ad ministration" in lieu of "Coast and Geodetic Survey."

States for the procurement of supplies and services and for other administrative and operating purposes (other than compensation of personnel) without regard to such laws and regulations governing the obligation and expenditure of funds of the United States Government as may be necessary to accomplish the purposes of this Act.

(c) Notwithstanding any other law, not to exceed $3,000,000 of the funds available for assistance under this Act 568 may be used in any fiscal year (in addition to funds available for such use under other authorities in this Act) to construct or otherwise acquire outside the United States (1) essential living quarters, office space, and necessary supporting facilities for use of personnel carrying out activities authorized by this Act, and (2) schools (including dormitories and boarding facilities) and hospitals for use of personnel carrying out activities authorized by this Act, United States Government personnel, and their dependents. In addition, funds made available for assistance under this Act 568 may be used, notwithstanding any other law, to equip, staff, operate, and maintain such schools and hospitals.

(d) Not to exceed $2,500,000 569 of funds available for assistance under this Act 568 may be used in any fiscal year to provide assistance, on such terms and conditions as are deemed appropriate, to schools established, or to be established, outside the United States whenever it is determined that such action would be more economical or would best serve the interests of the United States in providing for the education of dependents of personnel carrying out activities authorized by this Act and dependents of United States Government personnel, in lieu of acquisition or construction pursuant to subsection (c) of this

section.

(e) Funds available under this Act 568 may be used to pay costs of training United States citizen personnel employed or assigned pursuant to section 625 (d) (2) (through interchange or otherwise) at any State or local unit of government, public or private nonprofit institution, trade, labor, agricultural, or scientific association or organization, or commercial firm; and the povisions of Public Law 84-918 (7 U.S.C. 1881 et seq.) may be used to carry out the foregoing authority notwithstanding that interchange of personnel may not be involved or that the training may not take place at the institutions specified in that Act. Such training shall not be considered employment or holding of office under section 5533 of title 5 of the United States Code,570 and any payments or contributions in connection therewith may, as deemed appropriate by the head of the agency of the United States Government authorizing such training, be made by private or public sources and be accepted by any trainee, or may be accepted by and credited to the current applicable appropriation of such agency: Provided, however, That any such payments to any employee in the nature of compensation shall be in lieu, or in reduction, of compensation received from the United States Government.

(f) Funds made available under chapter 1 of part I 571 may be used

The words "(other than title I of chapter 2 of part I)", which previously appeared at this point, were struck by Sec. 102(g) (2) of the International Development and Food Assistance Act of 1978 (92 Stat. 943). sen Sec. 302 (1) of the FAAct of 1967 substituted "$2.500,000" in lieu of "$1,500.000". 570 Sec. 302 (m) of the FAAct of 1967 substituted "5533 of title 5 of the United States Code" in lieu of "301 of the Dual Compensation Act (5 U.S.C. 3105)".

The reference to chapter 1 of part I was substituted in lieu of a reference to section 212 by Sec. 102(g) (2) (J) of the International Development and Food Assistance Act of 1978 (92 Stat. 943).

for expenses (other than those provided for under section 637 (a)) to assist in carrying out functions under chapter 1572 of part I, under the Agricultural Trade Development and Assistance Act of 1954, as amended 573 (7 U.S.C. 1691 et seq.), and under the Latin American Development Act, as amended 574 (22 U.S.C. 1942 et seq.), performed by the agency primarily responsible for administering part I or by the Corporation established under title IV of chapter 2 of part I with respect to loan activities which it carries out under the provisions of the Agricultural Trade Development and Assistance Act of 1954, as amended.575 576

(g) Funds made available for the purposes of part II shall be available for

(1) administrative, extraordinary (not to exceed $300,000 in any fiscal year), and operating expenses incurred in furnishing defense articles, military education and training 577 and defense services on a grant or sales basis by the agency primarily responsible for administering part II; 578

(2) reimbursement of actual expenses of military officers detailed or assigned as tour directors in connection with orientation visits of foreign military and related civilian personnel,579 in accordance with the provisions of section 5702(c) of title 5 of the United States Code,580 applicable to civilian officers and employees; and

(3) maintenance, repair, alteration, and furnishing of United States-owned facilities in the District of Columbia or elsewhere for the training of foreign military and related civilian personnel 579 without regard to the provisions of section 3733 of the Revised Statutes (41 U.S.C. 12) or other provision of law requiring a specific authorization or specific appropriation for such public contracts.

(h) 581 In carrying out programs under this Act, the President shall take all appropriate steps to assure that, to the maximum extent possible, (1) countries receiving assistance under this Act contribute local currencies to meet the cost of contractual and other services rendered in conjunction with such programs, and (2) foreign currencies owned by the United States are utilized to meet the costs of such contractual and other services.

(i) 582 Notwithstanding section 640 or any other provision of this Act, none of the funds made available to carry out this Act shall be

572 The reference to chapter 1 was substituted in lieu of a reference to title I of chapter 2 by Sec. 102(g) (2) (J) of the International Development and Food Assistance Act of 1978 (92 Stat. 943).

573 For text, see page 327.

574 Sec. 302(h) (2) of the FAAct of 1965 substituted the words "Latin American Development Act, as amended” for “Act to provide for assistance in the development of Latin America and in the reconstruction of Chile, and for other purposes". See page 203.

575 For text, see page 327.

576 The words to this point, beginning with "or by the Corporation", were added by Sec. 306 of the FAAct of 1969.

577 The words ", military education and training" were added by Sec. 106(b) of the International Security Assistance and Arms Export Control Act of 1976.

578 The words to this point, beginning with "incurred in furnishing" (except as noted in footnote 577) were added by Sec. 302 (d) of the FAAct of 1968.

570 The words "and related civilian personnel" were substituted in lieu of "personnel" by Sec. 106(b) of the International Security Assistance and Arms Export Control Act of 1976.

580 Sec. 302 (n) of the FAAct of 1967 substituted "5702(c) of title 5 of the United States Code" in lieu of "3 of the Travel Expense Act of 1949, as amended (5 U.S.C. 836),". 581 Subsection (h) was added by Sec. 302 (f) of the FAAct of 1963. 582 Subsection (1) was added by Sec. 302 (o) of the FAAct of 1967.