United States and would justify the costs of packing, crating, handling, transportation, and other accessorial costs, and that the residual value at least equals the total of these costs.

Sec. 608.377 Advance Acquisition of Property.-(a) It is the sense of the Congress that in furnishing assistance under part I excess personal property should be utilized wherever practicable in lieu of the procurement of new items for United States-assisted projects and programs. The President is authorized to maintain in a separate account, which shall, notwithstanding section 1210 of the General Appropriation Act, 1951 (64 Stat. 765), be free from fiscal year limitations, $5,000,000 of funds made available under chapter 1 of part 1,379 which may be used to pay costs (including personnel costs) 380 of acquisition, storage, renovation and rehabilitation, packing, crating, handling transportation, and related costs of property classified as domestic or foreign excess property pursuant to the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 471 et seq.), or other property, in advance of known requirements therefor for use in furtherance of the purposes of part I: Provided, That the amount of property classified as domestic excess property pursuant to the Federal Property and Administrative Services Act of 1949, as amended, held at any one time pursuant to this section shall not exceed $15,000,000 in total original acquisition cost. Property acquired pursuant to the preceding sentence may be furnished (1) pursuant to any provision of part I for which funds are authorized for the furnishing of assistance, in which case the separate account established pursuant to this section shall be repaid from funds made available for such provision for all costs incurred, or (2) pursuant to section 607, in which case such separate account shall be repaid in accordance with the provisions of that section for all costs incurred.

(b) Property classified as domestic excess property under the Federal Property and Administrative Services Act of 1949, as amended, shall not be transferred to the agency primarily responsible for administering part I for use pursuant to the provisions of part I or section 607 unless (1) such property is transferred for use exclusively by an agency of the United States Government, or (2) it has been determined in the same manner as provided for surplus property in section 203 (j) of the Federal Property and Administrative Services Act of 1949, as amended, that such property is not needed for donation pursuant to that subsection. The foregoing restrictions shall not apply to the transfer in any fiscal year for use pursuant to the provisions of part I of amounts of such property with a total original acquisition cost to the United States Government not exceeding $45,000,000.

Sec. 609.381 Special Account.-(a) In cases where any commodity is to be furnished on a grant basis under chapter 4 of part I under arrangements which will result in the accrual of proceeds to the recipient

377 22 U.S.C. § 2358.

378 This sentence was added by Sec. 301 (b) of the FAAct of 1967.

379 The words "chapter 1 of part I" were substituted in lieu of "section 212" by Sec. 102(g) (2) (C) of the International Development and Food Assistance Act of 1978 (92 Stat. 942).

380 The words "(including personnel costs)," were added by Sec. 301 (c) of the FAAct of 1966. 381 22 U.S.C. § 2359.

country from the sale thereof, the President shall require the recipient country to establish a Special Account, and

(1) deposit in the Special Account, under terms and conditions as may be agreed upon, currency of the recipient country in amounts equal to such proceeds;

(2) make available to the United States Government such portion of the Special Account as may be determined by the President to be necessary for the requirements of the United States Government: Provided, That such portion shall not be less than 10 per centum in the case of any country to which such minimum requirement has been applicable under any Act repealed by this Act; and

(3) utilize the remainder of the Special Account for programs agreed to by the United States Government to carry out the purposes for which new funds authorized by this Act would themselves be available: Provided, That whenever funds from such Special Account are used by a country to make loans, all funds received in repayment of such loans prior to termination of assistance to such country shall be reused only for such purposes as shall have been agreed to between the country and the United States Government.

(b) Any unencumbered balances of funds which remain in the Account upon termination of assistance to such country under this Act shall be disposed of for such purposes as may, subject to approval by Act of the Congress, be agreed to between such country and the United States Government.

Sec. 610.382 Transfer Between Accounts.-(a) 383 Whenever the President determines it to be necessary for the purposes of this Act, not to exceed 10 per centum of the funds made available for any provision of this Act (except funds made available pursuant to title IV of chapter 2 of part I)384 may be transferred to, and consolidated with, the funds made available for any other provision of this Act, (except funds made available under chapter 2 of part II of this Act) 385 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 20 per centum of the amount of funds made available for such provision.

(b) 383 The authority contained in this section and in sections 451, 506,386 and 614 shall not be used to augment appropriations made available pursuant to sections 636 (g) (1) and 637 or used otherwise to finance activities which normally would be financed from appropriations for administrative expenses.387

382 22 USC 2360.

33 Subsection designation "(a)" and subsection (b) were added by Sec. 301(a) of the FAAct of 1962.

384 The parenthetical phrase was added by Sec. 301 of the FAAct of 1969. 385 The parenthetical phrase was added by Sec. 19 (a) (1) of the FAAct of 1974.

386 Sec. 301(c) of the FAAct of 1967 substituted "506" for "510".

387 The final sentence of subsection (b), which had been amended by the FAAct of 1966, was repealed by Sec. 10(b) (2) of the International Security Assistance Act of 1978 (92 Stat. 735). It formerly read as follows:

"Not to exceed $9,000,000 of the funds appropriated under section 402 of this Act for any fiscal year may be transferred to and consolidated with appropriations made under section 637 (a) of this Act for the same fiscal year, subject to the further limitation that funds so transferred shall be available solely for additional administrative expenses incurred in connection with programs in Vietnam."

(c) 388 Any funds which the President has notified Congress pursuant to section 653 that he intends to provide in military assistance to any country may be transferred to, and consolidated with, any other funds he has notified Congress pursuant to such section that he intends to provide to that country for development assistance purposes.

Sec. 611.389 Completion of Plans and Cost Estimates.-(a) No agreement or grant which constitutes an obligation of the United States Government in excess of $100,000 under section 1311 of the Supplemental Appropriation Act, 1955, as amended 390 (31 U.S.C. 200), shall be made for any assistance authorized under chapter I of part I, title II of chapter 2 of part I, or chapter 4 of part II-391

(1) if such agreement or grant requires substantive technical or financial planning, until engineering, financial, and other plans necessary to carry out such assistance, and a reasonably firm estimate of the cost to the United States Government of providing such assistance, have been completed; and

(2) if such agreement or grant requires legislative action within the recipient country, unless such legislative action may reasonably be anticipated to be completed in time to permit the orderly accomplishment of the purposes of such agreement or grant. (b) Plans required under subsection (a) of this section for any water or related land resource construction project or program shall include a computation of benefits and costs made insofar as practicable in accordance with the procedures set forth in the Memorandum of the President dated May 15, 1962,392 with respect to such computations. (c) To the maximum extent practicable, all contracts for construction outside the United States made in connection with any agreement or grant subject to subsection (a) of this section shall be made on a competitive basis.

(d) Subsection (a) of this section shall not apply to any assistance furnished for the sole purpose of preparation of engineering, financial, and other plans.

(e) 393 In addition to any other requirements of this section, no assistance authorized under chapter 1 of part I, title II of chapter 2 of part I, or chapter 4 of part II 394 shall be furnished with respect to any capital assistance project estimated to cost in excess of $1,000,000 until the head of the agency primarily responsible for administering part I of the Act has received and taken into consideration a certification from the principal officer of such agency in the country in which the project is located as to the capability of the country (both financial and human resources) to effectively maintain and utilize the project taking into

388 Subsection (c) was added by Sec. 19 (a) (2) of the FAAct of 1974.

389 22 U.S.C. § 2361.

290 For text, see page 201.

The words "chapter 1 of part I, title II of chapter 2 of part I, or chapter 4 of part II" were substituted in lieu of "titles I, II, and VI of chapter 2 and chapter 4 of part I" by Sec. 102(g) (2) (D) of the International Development and Food Assistance Act of 1978 (92 Stat. 943).

392 Sec. 301 (c) of the FAAct of 1963 substituted the words "the Memorandum of the President dated May 15, 1962," for the words "circular A-47 of the Bureau of the Budget". This Memorandum of the President, together with related papers is contained in Senate Document 97, 87th Congress, 2d Session, and in Annex B of AID M.O. 1221.2, October 1, 1964.

303 Subsection (e) was added by Sec. 301(d) of the FAAct of 1967.

324 The words "chapter 1 of part I, title 2 of chapter 2 of part I, or chapter 4 of part II" were substituted in lieu of "titles I, II, or VI of chapter 2 or chapter 4 of part I" by Sec. 102 (g) (2) (E) of the International Development and Food Assistance Act of 1978 (92 Stat. 943).

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account among other things the maintenance and utilization of projects in such country previously financed or assisted by the United States.

Sec. 612.395 Use of Foreign Currencies.-(a) 396 Except as otherwise provided in this Act or other Acts, foreign currencies received either (1) as a result of the furnishing of nonmilitary assistance under the Mutual Security Act of 1954, as amended, or any Act repealed thereby and unobligated on the date prior to the effective date of this Act, or (2) on or after the effective date of this Act, as a result of the furnishing of nonmilitary assistance under the Mutual Security Act of 1954, as amended, or any Act repealed hereby, or (3) as a result of the furnishing of assistance under part I, which are in excess of the amounts reserved under authority of section 105 (d) of the Mutual Educational and Cultural Exchange Act of 1961 397 or any other Act relating to educational and cultural exchanges, may be sold by the Secretary of the Treasury to agencies of the United States Government for payment of their obligations outside the United States, and the United States dollars received as reimbursement shall bo deposited into miscellaneous receipts of the Treasury. Foreign currencies so received which are in excess of the amounts so reserved and of the requirements of the United States Government in payment of its obligations outside the United States, as such requirements may be determined from time to time by the President, shall be available for the authorized purposes of part I in such amounts as may be specified from time to time in appropriation Acts.398

(b) 399 Any Act of Congress making appropriations to carry out programs under this or any other Act for United States operations abroad is hereby authorized to provide for the utilization of United States-owned excess foreign currencies to carry out any such operations authorized by law.

400 As used in this subsection, the term "excess foreign currencies" means foreign currencies or credits owned by or owed to the United States which are, under applicable agreements with the foreign country concerned, available for the use of the United States Government and are determined by the President to be excess to the normal requirements of departments and agencies of the United States for such currencies or credits and are not prohibited from use under this subsection by an agreement entered into with the foreign country concerned. The President shall take all appropriate steps to assure that, to the maximum extent possible, United States-owned foreign currencies are utilized in lieu of dollars. Dollar funds made available pursuant to

395 22 USC § 2362.

390 Subsection designation "(a)" was added by Sec. 301(d)(1) of the FAAct of 1963. 307 22 USC § 2455. For text see p. 747.

398 FA Appropriations Act, 1979: "For necessary expenses to carry out the provisions of section 612, $400,000, in foreign currencies which the Treasury Department declares to be excess to the normal requirements of the United States."

300 Subsection (c) was added by Sec. 301 (c) of the FAAct of 1964. Sec. 301 (b) of the FAAct of 1925 redesignated subsection (c) as subsection (b). Former subsection (b) was redesignated subsection (t) of Sec. 104 of the Agricultural Trade Development and Assistance Act of 1954, as amended (P.L. 480), and was also amended by Sec. 2 of P.L. 88-638 (1964 Amendments to the Agricultural Trade Development and Assistance Act of 1954). The Agricultural Trade Development and Assistance Act of 1954, as amended, was amended by P.L. 89-808 (Food for Peace Act of 1966) and Sec. 103 (m) is comparable to former Sec. 104(t).

400 The first sentence of this paragraph was struck out by Sec. 301 (b) of the FAAct of 1965. It read as follows: "The President shall take all appropriate steps to assure that, to the maximum extent possible, United States-owned excess foreign currencies are utilized in lieu of dollars."

this Act shall not be expended for goods and services when United States-owned foreign currencies are available for such purposes unless the administrative official approving the voucher certifies as to the reason for the use of dollars in each case." 401

(c) 402 402 In addition to funds otherwise available, excess foreign currencies, as defined in subsection (b), may be made available to friendly foreign governments and to private, nonprofit United States organizations to carry out voluntary family planning programs in countries which request such assistance. No such program shall be assisted unless the President has received assurances that in the administration of such program the recipient will take reasonable precautions to insure that no person receives any family planning assistance or supplies unless he desires such services. The excess foreign currencies made available under this subsection shall not, in any one year, exceed 5 per centum of the aggregate of all excess foreign currencies. As used in this subsection, the term "voluntary family planning program" includes, but is not limited to, demographic studies, medical and psychological research, personnel training, the construction and staffing of clinics and rural health centers, specialized training of doctors and paramedical personnel, the manufacture of medical supplies, and the dissemination of family planning information, medical assistance, and supplies to individuals who desire such assistance.

(d)403 In furnishing assistance under this Act to the government of any country in which the United States owns excess foreign currencies as defined in subsection (b) of this section, except those currencies generated under the Agricultural Trade Development and Assistance Act of 1954, as amended, the President shall endeavor to obtain from the recipient country an agreement for the release, on such terms and conditions as the President shall determine, of an amount of such currencies up to the equivalent of the dollar value of assistance furnished by the United States for programs as may be mutually agreed upon by the recipient country and the United States to carry out the purposes for which new funds authorized by this Act would themselves be available.

Sec. 613.405 Accounting, Valuation, Reporting, and Administration of Foreign Currencies.406-(a) Under the direction of the President, the Secretary of the Treasury shall have responsibility for valuation and central accounting with respect to foreign credits (including currencies) owed to or owned by the United States. In order to carry out such responsibility the Secretary shall issue regulations binding upon all agencies of the Government.

(b) The Secretary of the Treasury shall have sole authority to establish for all foreign currencies or credits the exchange rates at which such currencies are to be reported by all agencies of the Government.

(c) Each agency or department shall report to the Secretary of the Treasury an inventory as of June 30, 1961, showing the amount of all

401 This paragraph was added by Sec. 301(b) of the FAAct of 1965. 40 Subsection (c) was added by Sec. 301 (e) of the FAAct of 1966. 403 Subsection (d) was added by Sec. 302 of the FAAct of 1969.

404 For text, see page 327.

406 22 U.S.C. § 2363.

406 Sec. 301 (c) (1) of the FAAct of 1965 substituted "ACCOUNTING, VALUATION, REPORTING, AND ADMINISTRATION OF FOREIGN CURRENCIES" for "ACCOUNTING, VALUATION, AND REPORTING OF FOREIGN CURRENCIES”.