§ 1704. Use of local currency payment

(a) In general

Agreements under this subchapter may provide that the Secretary shall use payments made in local currencies by the recipient country in accordance with this section.

(b) Special account

Foreign currencies received by the Secretary under this subchapter shall be deposited in a separate account, that may be interest-bearing, to the credit of the United States and such currencies and interest thereon shall be used as provided for in this section.

(c) Activities

The proceeds from the payments referred to in subsection (a) of this section may be used in the recipient country for the following:

(1) Trade development

To carry out programs to help develop markets for United States agricultural commodities on a mutually beneficial basis in the recipient country.

(2) Agricultural development

To support

(A) increased agricultural production, including availability of agricultural inputs, with emphasis on small farms, processing of agricultural commodities, forestry management, and land and water management;

(B) credit policies for private-sector agriculture development;

(C) establishment and expansion of institutions for basic and applied agricultural research and the use of such research through development of extension services; and

(D) programs to control rodents, insects, weeds, and other animal or plant pests. (3) Agricultural business development loans

To make loans to United States business entities (including cooperatives) and branches, subsidiaries, or affiliates of such entities for agricultural business development and agricultural trade expansion in such recipient countries.

(4) Agricultural facilities loans

To make loans to domestic or foreign entities (including cooperatives) for the establishment of facilities for aiding in the utilization or distribution of, or otherwise increasing the consumption of and markets for, United States agricultural products.

(5) Trade promotion

To promote agricultural trade development, under procedures established by the Secretary, by making loans or through other activities (including trade fairs) that the Secretary determines to be appropriate.

(6) Private sector agricultural trade development

To conduct private sector agricultural trade development activities in the recipient country, as determined appropriate by the Secretary.

(7) Research

To conduct research in agriculture, forestry, and aquaculture, including collaborative research which is mutually beneficial to the United States and the recipient country. (8) United States obligations

To make payments of United States obligations (including obligations entered into pursuant to other laws).

(d) Fiscal requirements regarding use of local currencies

(1) Exemption

Section 1306 of title 31 shall not apply to local currencies used by the President under paragraphs (1) through (7) of subsection (c) of this section.

(2) Use of currencies by other agencies

Any department or agency of the Federal Government other than the Department of Agriculture using any such local currencies for a purpose for which funds have been appropriated shall reimburse the Commodity Credit Corporation in an amount equivalent to the dollar value of the currencies used. (As amended Nov. 28, 1990, Pub. L. 101-624, title XV, § 1512, 104 Stat. 3635.)

AMENDMENTS

1990-Pub. L. 101-624 amended section generally, substituting present provisions for provisions authorizing President to use local currencies received as payments to pay United States obligations, for agricultural market development, for educational and cultural exchange, for scientific activities, for purchase of real property abroad, for purchase of foreign books, periodicals, etc., for United States libraries, to meet emergency relief requirements, for loans to United States businesses for trade expansion and to firms for development of facilities increasing market for commodities, for loans to recipients to improve food production and marketing, to purchase goods and services for other friendly countries, to pay for food production assistance programs, for sale for dollars to United States citizens, to pay for animal and plant pest control, and provisions relating to application of section 1306 of title 31, and to use of currencies of which United States has amounts in excess of needs for next two fiscal years.

EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101-624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101-624, set out as a note under section 1691 of this title.

USE OF FOREIGN CURRENCIES

Foreign currencies accruing to United States under this subchapter may be used for purposes set forth in this section, see Ex. Ord. No. 12752, § 2(b)(1), (2), Feb. 25, 1991, 56 F.R. 8255, set out as a note under section 1691 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1703, 1856 of this title; title 22 section 1922; title 50 section 98c.

§ 1704a. Agreements for use of foreign currencies; reports to Congress

TRANSMISSION OF REPORTS

For provisions requiring Secretary of Agriculture and Administrator of Agency for International Devel

8 1705

opment to transmit reports required by this section as related to use of foreign currencies accruing under subchapters II and III-A of this chapter, see section 2(b)(3) of Ex. Ord. No. 12752, Feb. 25, 1991, 56 F.R. 8255, set out as a note under section 1691 of this title.

§ 1705. Value-added foods

(a) Policy

Congress declares it to be the policy of the United States to assist developing countries that are or have been recipients of high protein, blended, or fortified foods under subchapter III of this chapter to continue to combat hunger and malnutrition among the lower income segments of the population of such countries, especially children, through the continued provision of such foods under this subchapter.

(b) Partial waiver of repayment

In implementing the policy declared in subsection (a) of this section, the Secretary, in entering into agreements for the sale of high protein, blended, or fortified foods under this subchapter with countries that

(1) provide assurances that the benefits of any waiver granted under this subsection will be passed on to the individual recipients of such foods; and

(2) have a reasonable potential for transferring benefits of such waiver to commercial purchasers of such foods;

may make provisions for a waiver of payment of not to exceed an amount equal to the value of that part of the product that is attributable to the costs of processing, enrichment, or fortification of such product.

1990-Pub. L. 101-624 amended section generally, substituting present provisions for provisions establishing a special account for foreign currencies, requiring departments using such funds to reimburse Commodity Credit Corporation, and requiring President to use such funds to reduce any deficit in United States balance of payments.

EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101-624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101-624, set out as a note under section 1691 of this title.

§ 1706. "Debt-for-health-and-protection swap" defined (a) Definition

For purposes of this section, the term "debtfor-health-and-protection swap" means the voluntary cancellation of the foreign debt of the government of a foreign country in exchange for

(1) the making available by such country, to a grantee under subsection (b) of this section, local currencies (including through the issuance of bonds) to be used only for eligible

projects involving the research, study, prevention, or control of animal and plant pests and diseases in that country; or

(2) the financial and policy commitment of such country to research, study, prevent, or control animal and plant pests and diseases in that country.

(b) Assistance for commercial debt swap (1) Grants

The Secretary is authorized to furnish assistance in the form of grants, on such terms and conditions as the Secretary determines to be necessary and appropriate, to United States and foreign nongovernmental organizations, including colleges and universities, for the purchase of discounted external commercial debt of a foreign government (on the secondary market) to be canceled under the terms of an agreement that is entered into by the Secretary with that government as part of a debt-for-health-and-protection swap. (2) Interest on grants

The recipient of a grant under this section (or any subgrantee of such recipient) may retain the interest earned on the proceeds of any resulting debt-for-health-and-protection swap if such recipient (or subgrantee) disburses such funds for approved program purposes, and such interest need not be deposited in the Treasury of the United States and is not subject to further appropriations by Congress.

(3) Reinvestment of interest

Interest accrued in accordance with paragraph (2) shall be reinvested by the recipient of the grant under this section in an approved project in the host country or used for the establishment of an endowment for the purpose for which the grant was provided. (c) Eligible projects

(1) Mutual benefit

(A) that describe the general terms and conditions necessary for any proposed exchange to gain approval under paragraph (2); and

(B) to protect against the use of any assistance provided under subsection (b) of this section that is contrary to the provisions of this section.

(2) Other assistance

Grants made under this section are intended to supplement, and not to be a substitute for, any assistance that is otherwise available to a foreign country from the Department of Agriculture.

(3) Prohibition

The Department of Agriculture is prohibited from accepting any title or interest in any project or program under this section, or any interest accrued on the amount of the grant, as a condition of the debt-for-health-and-protection swap.

(e) Authorization of appropriations

There are authorized to be appropriated such sums as may be necessary to carry out this section.

(Pub. L. 101-624, title XV, § 1517, Nov. 28, 1990, 104 Stat. 3664.)

CODIFICATION

Section was enacted as part of the Mickey Leland Food for Peace Act, and also as part of the Agricultural Development and Trade Act of 1990 and the Food, Agriculture, Conservation, and Trade Act of 1990, and not as part of the Agricultural Trade Development and Assistance Act of 1954 which comprises this chapter.

PRIOR PROVISIONS

A prior section 1706, acts July 10, 1954, ch. 469, title I, § 106, 68 Stat. 457; Aug. 12, 1955, ch. 873, § 2, 69 Stat. 721; Aug. 8, 1961, Pub. L. 87-128, title II, § 201(4), 75 Stat. 307; Dec. 16, 1963, Pub. L. 88-205, pt. IV, § 403 (c)(1), 77 Stat. 390; Nov. 11, 1966, Pub. L. 89-808, § 2(B), 80 Stat. 1532; Dec. 20, 1975, Pub. L. 94-161, title II, § 205, 89 Stat. 852; Aug. 3, 1977, Pub. L. 95-88, title II, § 211(b)(2), 91 Stat. 551; Oct. 6, 1978, Pub. L. 95-424, title I, § 102(b)(2)(C), 92 Stat. 941; Dec. 29, 1981, Pub. L. 97-113, title IV, § 401(6), 95 Stat. 1537; Dec. 23, 1985, Pub. L. 99-198, title XI, § 1111(f), (g), 99 Stat. 1475, related to payments for commodities and use of proceeds prior to the general revision of this chapter by Pub. L. 101-624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3633.

§ 1707. Omitted

CODIFICATION

Section, acts July 10, 1954, ch. 469, title I, § 107, 68 Stat. 457; Oct. 8, 1964, Pub. L. 88-638, § 1(11), 78 Stat. 1036; Sept. 6, 1965, Pub. L. 89-171, pt. III, § 401, 79 Stat. 662; Nov. 11, 1966, Pub. L. 89-808, § 2(B), 80 Stat. 1532, relating to policy of encouraging overseas sales of commodities, was omitted in the general revision of this chapter by Pub. L. 101-624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3633.

§ 1707a. Repealed. Pub. L. 101-624, title XV, § 1574, Nov. 28, 1990, 104 Stat. 3702

Section, Pub. L. 89-808, § 4, Nov. 11, 1966, 80 Stat. 1538; Pub. L. 95-501, title I, § 101, Oct. 21, 1978, 92 Stat. 1685; Pub. L. 97-98, title XII, § 1201, Dec. 22, 1981, 95 Stat. 1274; Pub. L. 98-623, title IV, § 405(c),

Nov. 8, 1984, 98 Stat. 3409; Pub. L. 99-198, title XI, §§ 1130, 1131, Dec. 23, 1985, 99 Stat. 1486; Pub. L. 100-418, title IV, § 4402(b), Aug. 23, 1988, 102 Stat. 1400, provided for an export credit sales program. See section 5621 et seq. of this title.

88 1707b to 1707d. Omitted

CODIFICATION

Sections were omitted as part of the complete revision of the Agricultural Trade Act of 1978 (Pub. L. 95-501) by Pub. L. 101-624, title XV, § 1531, Nov. 28, 1990, 104 Stat. 3668. See chapter 87 (§ 5601 et seq.) of this title.

Section 1707b, Pub. L. 95-501, title II, § 201, Oct. 21, 1978, 92 Stat. 1686, provided for a program of deferred payment sales of agricultural commodities.

Section 1707c, Pub. L. 95-501, title II, § 202, Oct. 21, 1978, 92 Stat. 1687, provided for a program of credit sales to People's Republic of China.

Section 1707d, Pub. L. 95-501, title II, § 203, Oct. 21, 1978, 92 Stat. 1687, defined “agricultural commodity”. §§ 1708 to 1715. Omitted

CODIFICATION

Sections were omitted in the general revision of this chapter by Pub. L. 101-624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3633.

Section 1708, act July 10, 1954, ch. 469, title I, § 108, as added Dec. 23, 1985, Pub. L. 99-198, title XI, § 1111(h), 99 Stat. 1476; amended Aug. 23, 1988, Pub. L. 100-418, title II, § 2309, 102 Stat. 1346, related to agreements with financial intermediaries in developing countries for purchase of commodities. A prior section 1708, acts July 10, 1954, ch. 469, title I, § 108, 68 Stat. 457; Oct. 8, 1964, Pub. L. 88-638, § 1(12), 78 Stat. 1037; Nov. 11, 1966, Pub. L. 89-808, § 2(B), 80 Stat. 1533, which authorized Commodity Credit Corporation to finance ocean freight charges pursuant to agreements for sales of agricultural commodities for foreign currencies, was repealed by Pub. L. 97-113, title IV, § 401(7), Dec. 29, 1981, 95 Stat. 1537.

Section 1709, acts July 10, 1954, ch. 469, title I, § 109, 68 Stat. 457; Aug. 13, 1957, Pub. L. 85-128, § 1(1), 71 Stat. 345; Sept. 6, 1958, Pub. L. 85-931, § 4, 72 Stat. 1791; Sept. 21, 1959, Pub. L. 86-341, title I, § 1, 73 Stat. 606; Aug. 8, 1961, Pub. L. 87-128, title II, § 201(5), 75 Stat. 307; Oct. 8, 1964, Pub. L. 88-638, § 1(15), 78 Stat. 1037; Nov. 11, 1966, Pub. L. 89-808, § 2(B), 80 Stat. 1533; July 29, 1968, Pub. L. 90-436, § 2(b), 82 Stat. 450; Dec. 20, 1975, Pub. L. 94-161, title II, § 206, 89 Stat. 853; Dec. 22, 1981, Pub. L. 97-98, title XII, § 1210, 95 Stat. 1281; Dec. 29, 1981, Pub. L. 97-113, title IV, § 401(8), 95 Stat. 1537; Dec. 23, 1985, Pub. L. 99-198, title XI, § 1112(a)(1), 99 Stat. 1478; Dec. 22, 1987, Pub. L. 100-202, § 10, 101 Stat. 1329-448, related to self-help measures developing countries should take before entering into agreements for purchases of commodities. Section 1710, act July 10, 1954, ch. 469, title I, § 110, as added Nov. 11, 1966, Pub. L. 89-808, § 2(B), 80 Stat. 1534, limited agreements under this subchapter so that they would not call for appropriations of more than $1,900,000,000 for any calendar year.

Section 1711, act July 10, 1954, ch. 469, title I, § 111, as added Dec. 20, 1975, Pub. L. 94-161, title II, § 207, 89 Stat. 853; amended Aug. 3, 1977, Pub. L. 95-88, title II, § 202, 91 Stat. 545, restricted 75% of food aid under this subchapter to countries meeting International Development Association poverty criterion.

Section 1712, act July 10, 1954, ch. 469, title I, § 112, as added Aug. 3, 1977, Pub. L. 95-88, title II, § 203, 91 Stat. 545; amended H. Res. 89, Feb. 5, 1979; Dec. 16, 1980, Pub. L. 96-533, title VII, § 701(c), 94 Stat. 3156, prohibited financing of commodity sales to foreign governments engaging in gross violations of human rights.

§ 1721

Section 1713, act July 10, 1954, ch. 469, title I, § 113, as added Aug. 3, 1977, Pub. L. 95-88, title II, § 204, 91 Stat. 546, required priority to be given to financing sales of food and fiber commodities.

Section 1714, act July 10, 1954, ch. 469, title I, § 114, as added Aug. 3, 1977, Pub. L. 95-88, title II, § 205, 91 Stat. 546, related to provision of high protein, blended and fortified foods to developing countries, and waiver of repayments.

Section 1715, act July 10, 1954, ch. 469, title I, § 115, as added Sept. 29, 1977, Pub. L. 95-113, title XII, § 1202, 91 Stat. 955; amended H. Res. 89, Feb. 5, 1979; Dec. 22, 1981, Pub. L. 97-98, title XII, § 1211, 95 Stat. 1281, related to commodity sale procedures.

SUBCHAPTER III-EMERGENCY AND
PRIVATE ASSISTANCE PROGRAMS

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1431, 1704c, 1705, 1731, 1732, 1736a, 1736d, 1736f, 1736f-1, 1736bb-6, 1743 of this title; title 10 section 2681; title 46 App. sections 1241f, 1241u.

§ 1721. General authority

The President shall establish a program under this subchapter to provide agricultural commodities to foreign countries on behalf of the people of the United States to

(1) address famine or other urgent or extraordinary relief requirements;

(2) combat malnutrition, especially in children and mothers;

(3) carry out activities that attempt to alleviate the causes of hunger, mortality and morbidity;

(4) promote economic and community development;

(5) promote sound environmental practices; and

(6) carry out feeding programs.

Such program shall be implemented by the Administrator.

(As amended Nov. 28, 1990, Pub. L. 101-624, title XV, § 1512, 104 Stat. 3636.)

AMENDMENTS

1990-Pub. L. 101-624 amended section generally, substituting present provisions for provisions requiring President to furnish commodities to meet famine, combat malnutrition, promote economic development in friendly countries, and for needy persons and school lunch and preschool feeding programs, setting minimum quantity for distribution, requiring use of certain distribution networks, requiring President to consider benefits of distributing processed and protein-fortified foods, nutritional needs of recipients, cost effectiveness of particular commodities, and purposes of this subchapter, requiring that 75 percent of commodities distributed be in form of processed or fortified products or bagged commodities, and authorizing waiver of such 75 percent requirement.

EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101-624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101-624, set out as a note under section 1691 of this title.

IMPLEMENTATION OF PROGRAM

Program under this subchapter to provide for donation of agricultural commodities to foreign countries to be implemented by Administrator of the Agency for International Development, see Ex. Ord. No. 12752, § 1(b), Feb. 25, 1991, 56 F.R. 8255, set out as a note under section 1691 of this title.

§ 1722. Provision of agricultural commodities (a) Emergency assistance

Notwithstanding any other provision of law, the Administrator may provide agricultural commodities to meet emergency food needs under this subchapter through governments and public or private agencies, including intergovernmental organizations such as the World Food Program and other multilateral organizations, in such manner and on such terms and conditions as the Administrator determines appropriate to respond to the emergency. (b) Non-emergency assistance

The Administrator may provide agricultural commodities for non-emergency assistance under this subchapter through eligible organizations (as described in subsection (d) of this section) that have entered into an agreement with the Administrator to use such commodities in accordance with this subchapter. (c) Uses of assistance

Agricultural commodities provided under this subchapter may be made available for direct distribution, sale, barter, or other appropriate disposition.

(d) Eligible organizations

To be eligible to receive assistance under subsection (b) of this section an organization shall be

(1) a private voluntary organization or cooperative that is, to the extent practicable, registered with the Administrator; or

(2) an intergovernmental organization, such as the World Food Program.

(e) Support for private voluntary organizations and cooperatives

(1) In general

Of the funds made available in each fiscal year under this subchapter to the Administrator, not less than $10,000,000, and not more than $13,500,000, shall be made available in each fiscal year to private voluntary organizations and cooperatives to assist such organizations and cooperatives in

(A) establishing new programs under this subchapter; and

(B) meeting specific administrative, management, personnel and internal transportation and distribution costs for carrying out programs in foreign countries under this subchapter.

(2) Request for funds

In order to receive funds made available under paragraph (1), a private voluntary organization or cooperative must submit a request for such funds (which must be approved by the Administrator) when submitting a proposal to the Administrator for an agreement under this subchapter. Such request for funds shall include a specific explanation of

(A) the program costs to be offset by such funds;

(B) the reason why such funds are needed in carrying out the particular assistance program; and