Section 45. Collections This section is taken from section 635(g) (2) and (3) of the Foreign Assistance Act of 1961, as amended. It authorizes the President, when making sales or issuing guaranties, to acquire and dispose of evidences of indebtedness. It also authorizes him to collect or compromise any indebtedness owed the Department of Defense by foreign countries or international organizations. Title III. Barter transactions Section 51. General authority This section is taken from sections 503 (a) and 509 of the Foreign Assistance Act of 1961, as amended, which authorized barter arrangements and exchanges. Subsection (a), which is new, authorizes the barter with friendly countries or international organizations of (1) defense articles which are in the stocks of the Department of Defense; (2) defense articles which the Department of Defense may, from time to time, be authorized to procure under statutory provisions other than this bill; and (3) defense services. The defense articles and defense services received in exchange are to be used only to carry out the regular military functions of the Department of Defense. The authority contained in this subsection does not involve the use of appropriations made under the authority of this bill. Subsection (b) provides that defense articles and defense services acquired with funds available under this bill may be bartered with friendly foreign countries and international organizations in exchange for other defense articles and services. The disposition of the defense articles and services received in exchange under this subsection is covered by section 52. Section 52. Disposition of defense articles and defense services received in exchange under section 51(b) This section, which is taken from section 509(a) of the Foreign Assistance Act of 1961, as amended, deals solely with defense articles and services received in barter transactions which have been financed with funds available under this bill. Defense articles and defense services received by the U.S. Government in such transactions may be used: (1) for grant aid purposes; (2) may be sold to any friendly country or international organization; or (3) may be transferred to any U.S. Government agency for stockpiling or other purposes. If any such disposal or transfer is made on a reimbursable basis, the reimbursements are to be credited to the current applicable account. Title IV. Leases Section 61. Leases This section, which is taken from section 503 (a) of the Foreign Assistance Act of 1961, as amended, authorizes the lease to friendly countries and international organizations of defense articles acquired with funds made available under the authority of this bill. A lease under this section may be made only upon payment of rentals in U.S. dollars or upon receipt of other valuable consideration. Any rentals received under this section are to be credited to the current applicable account. Title V. General provisions Section 71. Purposes This section provides that defense articles may be sold, bartered or leased under this Title solely for the purposes specified in section 12. CHAPTER 4. FISCAL PROVISIONS Section 81. Allocations This section is taken from section 632 (a) of the Foreign Assistance Act of 1961, as amended (and its predecessor section 522(a) of the Mutual Security Act of 1954, as amended), authorizing the President to allocate or transfer to any agency any part of any funds available for carrying out the purposes of this bill. Section 82. Reimbursements This section provides that, except as otherwise provided in this bill, Department of Defense activities and other agencies furnishing defense articles and defense services to foreign countries and international organizations shall be reimbursed for their expenses and for the value of what they furnish. Reimbursement is made from funds appropriated to carry out this bill. The reimbursement received is available for use by such activity or agency on the same basis as the funds originally used. Subsection (a) is taken from section 632(d) of the Foreign Assistance Act of 1961, as amended. Subsection (b) is taken from the second paragraph of section 644(m) of that Act. Section 83. Authorization for appropriations This section authorizes appropriations of specified amounts to be made for the fiscal years 1967, 1968, 1969, 1970, and 1971 to carry out the activities authorized by this bill, excluding the support of Vietnamese and other free world forces in Vietnam which is provided for in other legislation. Section 84. Special authority Subsection (a) authorizes the President when he determines it to be vital to the security of the United States, to order defense articles from Department of Defense stocks and defense services to carry out activities under this bill, subject to subsequent reimbursement therefor from military assistance funds. This authorization is limited to $300,000,000 in each of the fiscal years 1967 through 1971, and prompt notice of action taken under the subsection is required to be given to the Congress. Subsection (b) provides that, in anticipation of subsequent appropriations made to the President for military assistance, the Department of Defense is authorized to incur, in applicable appropriations, obligations in amounts equivalent to the value of the orders. This special authority was first enacted as section 510 of the Foreign Assistance Act of 1961, to enable prompt action to be taken in emergency situations that cannot be anticipated situations where such action is, in fact, vital to the security of the United States. It was enacted in the expectation that it would provide a means for meeting military emergencies, with less likelihood that the authorization would be drawn upon than would be the case if additional appropriations were provided in the form of a contingency fund. It has been used twice during the past five years. Section 85. Letters of commitment This subsection is taken from section 632(e) of the Foreign Assistance Act of 1961, as amended (and its predecessor-section 522(e) of the Mutual Security Act of 1954, as amended). It provides that accounts may be established on the books of the Department of Defense against which letters of commitment may be issued and from which disbursements may be made to recipient countries or agencies, organizations, or persons upon the presentation of appropriate documentation. Funds thus expended are to be accounted for on standard documentation required for government expenditures, but the Comptroller General is authorized to approve other documentation for accounting for funds spent overseas. Section 86. Transfer between accounts This section is taken from section 610 of the Foreign Assistance Act of 1961, as amended, and duplicates the authority contained in that section to transfer funds, within certain prescribed limitations. between the programs authorized by the Foreign Assistance Act and this bill. It also duplicates the existing restriction on the use of the transfer authority and other designated authorities to augment appropriations for administrative expenses. Minor conforming changes in language were made resulting from the legislative separation of the economic and military programs. CHAPTER 5. GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS Title I. General provisions Section 91. General authorities Subsection (a) is taken from section 635(b) of the Foreign Assistance Act of 1961, as amended. It provides that, in furtherance of the purposes, and within the limitations of this bill, the President may make and perform agreements and contracts with any individual, corporation, other body of persons, friendly government or government agency, whether within or without the United States. Subsection (b) is taken from section 365 (h) of the Foreign Assistance Act of 1961, as amended. It provides that contracts under chapter 2 may extend for not more than five years at any time. Subsection (c) is taken from section 635(d) of the Foreign Assistance Act of 1961, as amended, and authorizes the President to accept and use donations in furtherance of the purposes of this bill. Subsection (d) is taken from section 632(b) of the Foreign Assistance Act of 1961, as amended (and its predecessor-section 522(b) of the Mutual Security Act of 1954, as amended), authorizing the services or facilities of any United States Government agency to be used in carrying out the functions under this bill. Section 92. Waiver authorities Subsection (a) is taken from section 614(a) of the Foreign Assistance Act of 1961, as amended. It permits the President to authorize defense articles and defense services of the value of not to exceed a specified amount in each fiscal year to be furnished under this bill without regard to the requirements of certain laws when the President determines that such authorization is important to the security of the United States. The statutory requirements which may be waived under this subsection are the requirements of (1) this bill and amendments thereto; (2) any law relating to receipts and credits accruing to the United States; (3) any future act appropriating funds for use under this bill, including, but not limited to, acts providing temporary appropriations for use under this bill during the interim between the end of a fiscal year and the enactment of the regular appropriation act for the succeeding year; and (4) the Battle Act, as amended from time to time. Except for a victim of communist aggression, no one country may be allocated more than a specified amount of defense articles and defense services in each fiscal year under this subsection. Finally, the subsection requires that each determination be promptly reported to the Congress. Subsection (b) is taken from section 633 (a) of the Foreign Assistance Act of 1961, as amended (and its predecessor-section 533 of the Mutual Security Act of 1954, as amended). It permits the performance of functions under the bill without regard to such provisions of law (other than the Renegotiation Act of 1951, as amended) relating to U.S. Government contracting and the expenditure of funds as the President may specify, whenever he determines it to be in furtherance of the purposes of this bill. The current specification of laws is contained in Executive Order 11233. Subsection (c) is taken from section 614 (c) of the Foreign Assistance Act of 1961, as amended (and its predecessor-the penultimate sentence of section 451(a) of the Mutual Security Act of 1954, as amended). It authorizes the President to use a cumulative specified amount of the funds available for use under this bill pursuant to his certification that it is inadvisable to specify the nature of the use of such funds. Subsection (d) is taken from section 633 (b) of the Foreign Assistance Act of 1961, as amended, and authorizes waivers of provisions of the Neutrality Act. Subsection (e) is taken from section 635 (j) of the Foreign Assistance Act of 1961, as amended, which exempts activity under this bill from the provisions of 18 U.S.C. 955. Section 93. Retention and use of defense articles Subsection (a), which is taken from section 605(a) of the Foreign Assistance Act of 1961, as amended, makes provision for cases which may arise when changing circumstances make it inadvisable to furnish defense articles which have already been procured for the purposes of this bill. Whenever the President determines that the best interests of the United States would be served thereby, such articles may be retained by the procuring agency or transferred to another agency, They may either be used or disposed of by the agency in question, and when necessary to prevent spoilage or wastage or to conserve their usefulness, the disposal may be without regard to provisions of law relating to the disposition of government property. Funds realized from such disposals or transfers are to revert to the appropriation account from which the goods were procured in the first instance or to the account currently available for such procurement. Subsection (b), which is taken from section 605(d) of the Foreign. Assistance Act of 1961, as amended, provides that funds realized from defense articles returned to the United States pursuant to agree ments entered into under section 13(a) (4) may be used for the purposes of this bill. Section 94. Orderly termination of assistance This section, which is taken from section 617 of the Foreign Assistance Act of 1961, as amended, provides that funds remain available for up to a year to provide for the orderly winding up of programs which are terminated. Section 95. Patents and technical information This section repeats verbatim the operative language of all b the last sentence of section 606(a) of the Foreign Assistance Act of 1961, as amended, which was originally enacted as section 506 of the Mutual Security Act of 1954, as amended. It is designed to mee those cases in which patents or information protected by proprietary rights are unlawfully used by the U.S. Government in the imple mentation of this bill. In such cases, the aggrieved party may she the United States either in the Federal Court in the district where he resides or in the Court of Claims within a period of six years. The last sentence of section 606(a) of the Foreign Assistance Act of 1961. as amended, incorporated a reference to the last paragraph of section 1498 (a) of Title 28, United States Code; in lieu of this incorporation by reference, the language of that paragraph has been set forth in full. Provision is also made in subsection (b) for out-of-court settlements. Section 96. Shipping on U.S. vessels This section is taken from section 603 of the Foreign Assistance Ac of 1961, as amended, and section 509 of the Mutual Security Act of 1954, as amended. It exempts from the 50-50 shipping requiremen: the transportation between foreign countries of defense articles purchased with foreign currencies acquired under this bill and unde the Agricultural Trade Development and Assistance Act (Public Law 480). Section 97. Procurement outside the United States This section is taken from section 604 (a) of the Foreign Assistance Act of 1961, as amended, relating to restrictions on offshore procurement of defense articles. Title II. Administrative provisions Section 101. Delegation of authority This section is taken from the first two sentences of section 621 of the Foreign Assistance Act of 1961, as amended, and provides authority for the delegation of the functions conferred upon the President by this bill. Section 102. The Secretary of Defense This section is taken from section 623 of the Foreign Assistance Act of 1961, as amended, and outlines the primary responsibilities of the Secretary of Defense under this bill. Section 103. Missions and staffs abroad The President is authorized by subsection (a), which is taken from section 631 (a) of the Foreign Assistance Act of 1961, as amended, to maintain special missions or staffs outside the United States to carry out the purposes of the bill. |