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fiscal year. The results of such review shall be included in the annual report to the Congress required under section 408 (a) of this Act.

(b) If the President finds that the provisions of an agreement are not being substantially met, he shall not extend financing for sales under this title until the end of the following fiscal year or until the situation is remedied, whichever occurs first, unless the failure to meet the provisions is due to unusual circumstances beyond the control of the recipient government.

SEC. 308.37

SEC. 309.38

39

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SEC. 310. The Secretary shall, whenever he determines that such action is in the best interest of the United States, and to the maximum extent practicable, barter or exchange agricultural commodities owned by the Commodity Credit Corporation for (a) such strategic or other materials of which the United States does not domestically produce its requirements and which entail less risk of loss through deterioration of substantially less storage charges as the President may designate, or (b) materials, goods, or equipment required in connection with foreign economic and military aid and assistance programs, or (c) materials or equipment required in substantial quantities for offshore construction programs. He is hereby directed to use every practicable means, in cooperation with other Government agencies, to arrange and make, through private channels, such barters or exchanges or to utilize the authority conferred on him by section 4(h) of the Commodity Credit Corporation Charter Act, as amended, to make such barters or exchanges. In carrying out barters or exchanges authorized by this section, no restrictions shall be placed on the countries of the free world into which surplus agricultural commodities may be sold, except to the extent that the Secretary shall find necessary in order to take reasonable precautions to safeguard usual marketings of the United States and to assure that barters or exchanges under this Act will not unduly disrupt world prices of agricultural commodities or replace cash sales for dollars. The Secretary may permit the domestic processing of raw materials of foreign origin. The Secretary shall endeavor to cooperate with other exporting countries in preserving normal patterns of commercial trade with respect to commodities covered by formal multilateral international marketing agreements to which the United States is a party. Agencies of the United States Government procuring such materials, goods, or equipment are hereby directed to cooperate with the Secretary in the disposal of surplus agricultural commodities by means of barter or exchange. The Secretary is also directed to assist, through such means as are available to him, farmers' cooperatives in effecting exchange of agricultural commodities in their possession for strategic materials. Barter or exchange of agricultural commodities under clause (a) of this section shall be limited to exchange for materials which originate in the country to which the surplus agricultural commodities are exported and to arrangements which will prevent resale or transshipment of the agricultural commodities to other countries."1

37 This section contained an amendment to section 407 of the Agricultural Act of 1949. 38 This section contained an amendment to section 416 of the Agricultural Act of 1949. 307 U.S.C. 1692.

40 15 U.S.C. 714b.

41 The last sentence as added by section 7 of Public Law 90-436, 82 Stat. 451.

TITLE IV 42

SEC. 403.43 (a) There are hereby authorized to be appropriated such sums as may be necessary to carry out this Act including such amounts as may be required to make payments to the Commodity Credit Corporation, to the extent the Commodity Credit Corporation is not reimbursed under section 104 (j) and 105, for its actual cost incurred or to be incurred. In presenting his budget, the President shall classify expenditures under this Act as expenditures for international affairs and finance rather than for agriculture and agricultural

resources.

(b) Notwithstanding any other provision of law, in determining the reimbursement due the Commodity Credit Corporation for all costs incurred under this Act, commodities from the Commodity Credit Corporation inventory, which were acquired under a domestic price support program, shall be valued at the export market price therefor, as determined by the Secretary of Agriculture, as of the time the commodity is made available under this Act.

(c) Notwithstanding any other provision of this Act or any other Act, if the President determines it to be necessary for the purposes of this Act, he may direct that not to exceed 15 percent of the funds available in any fiscal year for carrying out any title of this Act be used to carry out any other title of this Act.

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SEC. 406. (a) In order to further assist friendly developing countries to become self-sufficient in food production, the President is authorized, notwithstanding any other provision of law—

(1) 45 To establish and administer a program of farmer-tofarmer assistance between the United States and such countries to help farmers in such countries in the practical aspects of increasing food production and distribution and improving the effectiveness of their farming operations;

(2) To enter into contracts or other cooperative agreements with, or make grants to, land-grant colleges and universities and other institutions of higher learning in the United States to recruit persons who by reason of training, education, or practical experience are knowledgeable in the practical arts and sciences of agriculture and home economics, and to train such persons in the practical techniques of transmitting to farmers in such countries improved practices in agriculture, and to participate in carrying out the program in such countries including, where desirable, additional courses for training or retraining in such countries;

4 Added by the Act of September 21, 1959, Public Law 86-341, 73 Stat. 610.

43 7 U.S.C. 1733. Amended on numerous occasions, most recently by the International Security and Development Cooperation Act of 1980, Public Law 96-533, section 407, Stat. which added subsection (c).

447 U.S.C. 1736. Act of November 11, 1966, Public Law 89-808, section 2(E), 80 Stat. 1536, substituted food production assistance provisions for provision respecting applicability of other laws.

45 The Act of September 20, 1975, Public Law 94-161, section 214, 89 Stat. 855, substituted "the President" for "the Secretary of Agriculture" and struck the words "through existing agencies of the Department of Agriculture" following the words "establish and administer".

(3) To consult and cooperate with private non-profit farm organizations in the exchange of farm youth and farm leaders with developing countries and in the training of farmers of such developing countries within the United States or abroad;

(4) To conduct research in tropical and subtropical agriculture for the improvement and development of tropical and subtropical food products for dissemination and cultivation in friendly countries;

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(5) 48 To coordinate the program authorized in this section with other foreign assistance activities of the United States;

(6) To establish by such rules and regulations as he deems necessary the conditions for eligibility and retention in and dismissal from the program established in this section, together with the terms, length and nature of service, compensation, employee status, oaths of office, and security clearances, and such persons shall be entitled to the benefits and subject to the responsibilities applicable to persons serving in the Peace Corps pursuant to the provisions of section 612, volume 75 of the Statutes at Large, as amended; and

(7) To the maximum extent practicable, to pay the costs of such program through the use of foreign currencies accruing from the sale of agricultural commodities under this Act, as provided in section 104 (i).

(b) There are hereby authorized to be appropriated not to exceed $33,000,000 during any fiscal year for the purpose of carrying out the provisions of this section.

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SEC. 409. No agreement to finance sales under title I and no programs of assistance under title II shall be entered into after December 31, 1981. New spending authority provided for title I of this Act by the amendment to this section made by the Food and Agriculture Act of 1977 shall be effective for any fiscal year only to such extent or in such amounts as are provided in appropriation Acts.

Amended by the Act of December 20, 1975, Public Law 94-161, 39 Stat. 855. 477 U.S.C. 1736c. Added by Public Law 89-808, section 2(E), 80 Stat. 1537.

FOREIGN ASSISTANCE ACT OF 1961

Act of September 4, 1961, Public Law 87-195, 75 Stat. 426, 22 U.S.C.
2151 et seq.

AN ACT To promote the foreign policy, security, and general welfare of the
United States by assisting peoples of the world in their efforts toward economic
development and internal and external security, and for other purposes

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SEC. 103.1 AGRICULTURE, RURAL DEVELOPMENT, AND NUTRITION.-
(a) (1) In recognition of the fact that the great majority of the peo-
ple of developing countries live in rural areas and are dependent on
agriculture and agricultural-related pursuits for their livelihood, the
President is authorized to furnish assistance, on such terms and condi-
tions as he may determine, for agriculture, rural development, and
nutrition-

(A) to alleviate starvation, hunger, and malnutrition;

(B) to expand significantly the provision of basic services to
rural poor people to enhance their capacity for self-help; and

(C) to help create productive farm and off-farm employment
in rural areas to provide a more viable economic base and enhance
opportunities for improved incomes, living standards, and con-
tributions by rural poor people to the economic and social devel-
opment of their countries.

(2) There are authorized to be appropriated to the President for
purposes of this section, in addition to funds otherwise available for
such purposes, $659,000,000 for the fiscal year 1980. Amounts appro-
priated under this section are authorized to remain available until
expended.

(b) (1) Assistance provided under this section shall be used pri-
marily for activities which are specifically designed to increase the
productivity and income of the rural poor, through such means as
creation and strengthening of local institutions linked to the regional
and national levels; organization of a system of financial institutions
which provide both savings and credit services to the poor; stimulation
of small, labor-intensive enterprises in rural towns; improvement of
marketing facilities and systems; expansion of rural infrastructure
and utilities such as farm-to-market roads, water management sys-
tems, land improvement, energy, and storage facilities; establishment
of more equitable and more secure land tenure arrangements; and cre-
ation and strengthening of systems to provide other services and sup-
plies needed by farmers, such as extension, research, training, fertil-
izer, water, forestry, soil conservation, and improved seed, in ways
which assure access to them by small farmers.

122 U.S.C. 2151a. Amended in its entirety by the Act of October 6, 1978, Public Law
95-424, 92 Stat. 943.

(2) In circumstances where development of major infrastructure is necessary to achieve the objectives set forth in this section, assistance for that purpose should be furnished under this chapter in association with significant contributions from other countries working together in a multilateral framework. Infrastructure projects so assisted should be complemented by other measures to ensure that the benefits of the infrastructure reach the poor.

(3) The Congress recognizes that the accelerating loss of forests and tree cover in developing countries undermines and offsets efforts to improve agricultural production and nutrition and otherwise to meet the basic human needs of the poor. Deforestation results in increased flooding, reduction in water supply for agricultural capacity, loss of firewood and needed wood products, and loss of valuable plants and animals. In order to maintain and increase forest resources, the President is authorized to provide assistance under this section for forestry projects which are essential to fulfill the fundamental purposes of this section. Emphasis shall be given to community woodlots, agroforestry, reforestation, protection of watershed forests, and more effective forest management.

(c) The Congress finds that the greatest potential for significantly expanding availability of food for people in rural areas and augmenting world food production at relatively low cost lies in increasing the productivity of small farmers who constitute a majority of the agricultural producers in developing countries. Increasing the emphasis on rural development and expanded food production in the poorest nations of the developing world is a matter of social justice and a principal element contributing to broadly based economic growth, as well as an important factor in alleviating inflation in the industrialized countries. In the allocation of funds under this section, special attention shall be given to increasing agricultural production in countries which have been designated as "least developed" by the United Nations General Assembly.

(d) Assistance provided under this section shall also be used in coordination with programs carried out under section 104 to help improve nutrition of the people of developing countries through encouragement of increased production of crops with greater nutritional value; improvement of planning, research, and education with respect to nutrition, particularly with reference to improvement and expanded use of indigenously produced foodstuffs; and the undertaking of pilot or demonstration programs explicitly addressing the problem of malnutrition of poor and vulnerable people. In particular, the President is encouraged—

(1) to devise and carry out in partnership with developing countries a strategy for programs of nutrition and health improvement for mothers and children, including breast feeding; and

(2) to provide technical, financial, and material support to individuals or groups at the local level for such programs. (e) Local currency proceeds from sales of commodities provided under the Agricultural Trade Development and Assistance Act of 1954 which are owned by foreign governments shall be used whenever practicable to carry out the provisions of this section.

2 Added by the International Development Cooperation Act of 1979, Public Law 96-53, 93 Stat. 359.

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