§ 1704. Use of local currency payment

§ 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 developing country or private entity 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) may be used in the appropriate developing country, through agreements with recipient governments, private voluntary organizations, and cooperatives, for the following:

(1) 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;

(D) programs to control rodents, insects, weeds, and other animal or plant pests; and

(E) the improvement of the trade capacity of the recipient country.

(2) Agricultural business development loans To make loans to United States business entities (including cooperatives) and branches, subsidiaries, or affiliates of such entities for development of agricultural businesses and agricultural trade capacity in such appropriate developing countries.

(3) 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 agricultural products.

(4) Trade promotion To promote agricultural trade development, under procedures established by the Secretary, by making loans or through other activities (including trade fairs to promote agricultural products produced in appropriate developing countries) that the Secretary determines to be appropriate.

(5) Private sector agricultural trade development To conduct private sector agricultural trade development activities in the appropriate developing country, as determined appropriate by the Secretary.

(6) Research To conduct research in agriculture, forestry, and aquaculture, including collaborative research which is mutually beneficial to the United States and the appropriate developing country.

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

(8) Safe water and sanitation To provide assistance under section 2152h 11 See References in Text note below. of title 22 to promote good health, economic development, poverty reduction, women’s empowerment, conflict prevention, and environmental sustainability by increasing affordable and equitable access to safe water and sanitation.

(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).

(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.

(July 10, 1954, ch. 469, title I, § 104, 68 Stat. 456; Aug. 26, 1954, ch. 937, title V, § 544(h), (i), as added July 18, 1956, ch. 627, § 11(a), 70 Stat. 564, 565; amended Aug. 3, 1956, ch. 933, § 2, 70 Stat. 988; Pub. L. 85–128, § 1(4), Aug. 13, 1957, 71 Stat. 345; Aug. 26, 1954, ch. 937, title V, § 544(c), as added Pub. L. 85–141, § 11(b)(2), Aug. 14, 1957, 71 Stat. 365; Pub. L. 85–477, ch. V, § 502(l), June 30, 1958, 72 Stat. 275; Pub. L. 85–931, § 3, Sept. 6, 1958, 72 Stat. 1790; Pub. L. 86–108, ch. VII, § 701(d), July 24, 1959, 73 Stat. 258; Pub. L. 86–341, title I, §§ 4–9, Sept. 21, 1959, 73 Stat. 606, 607; Pub. L. 87–128, title II, § 201(3), Aug. 8, 1961, 75 Stat. 306; Pub. L. 87–195, pt. III, § 612(b), pt. IV, § 704, Sept. 4, 1961, 75 Stat. 443, 463; Pub. L. 87–839, § 2, Oct. 18, 1962, 76 Stat. 1074; Pub. L. 88–205, pt. III, § 301(d)(2), Dec. 16, 1963, 77 Stat. 386; Pub. L. 88–638, §§ 1(6)–(10), 2, Oct. 8, 1964, 78 Stat. 1035–1038; Pub. L. 89–106, § 5, Aug. 4, 1965, 79 Stat. 432; Pub. L. 89–808, § 2(B), Nov. 11, 1966, 80 Stat. 1528; Pub. L. 90–436, §§ 2(a), 3, 6, July 29, 1968, 82 Stat. 450, 451; Pub. L. 91–524, title VII, § 702, Nov. 30, 1970, 84 Stat. 1379; Pub. L. 94–161, title II, § 204, Dec. 20, 1975, 89 Stat. 852; Pub. L. 96–53, title I, § 121, Aug. 14, 1979, 93 Stat. 366; Pub. L. 97–113, title IV, §§ 401(5), 402, Dec. 29, 1981, 95 Stat. 1537; Pub. L. 100–418, title IV, § 4401, Aug. 23, 1988, 102 Stat. 1400; Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3635; Pub. L. 104–127, title II, § 205, Apr. 4, 1996, 110 Stat. 953; Pub. L. 109–121, § 5(b), Dec. 1, 2005, 119 Stat. 2537; Pub. L. 110–246, title III, § 3006, June 18, 2008, 122 Stat. 1822.)

Editorial Notes

References in Text

Section 2152h of title 22, referred to in subsec. (c)(8), was in the original “section 135 of the Foreign Assistance Act of 1961” which was translated as meaning the section 135 of the Act which is classified to section 2152h of Title 22, Foreign Relations and Intercourse, rather than to the section 135 of the Act which is classified to section 2152f of Title 22, to reflect the probable intent of Congress.

Amendments

2008—Subsec. (c). Pub. L. 110–246, § 3006(7), redesignated pars. (2) to (9) as (1) to (8), respectively.

Pub. L. 110–246, § 3006(1), inserted “, through agreements with recipient governments, private voluntary organizations, and cooperatives,” after “developing country” in introductory provisions.

Subsec. (c)(1). Pub. L. 110–246, § 3006(2), struck out par. (1). Prior to amendment, text read as follows: “To carry out programs to help develop markets for United States agricultural commodities on a mutually beneficial basis in the appropriate developing country.”

Subsec. (c)(2)(E). Pub. L. 110–246, § 3006(3), added subpar. (E).

Subsec. (c)(3). Pub. L. 110–246, § 3006(4), substituted “development of agricultural businesses and agricultural trade capacity” for “agricultural business development and agricultural trade expansion”.

Subsec. (c)(4). Pub. L. 110–246, § 3006(5), struck out “, or otherwise increasing the consumption of and markets for, United States” before “agricultural products”.

Subsec. (c)(5). Pub. L. 110–246, § 3006(6), inserted “to promote agricultural products produced in appropriate developing countries” after “trade fairs”.

2005—Subsec. (c)(9). Pub. L. 109–121 added par. (9).

1996—Subsec. (a). Pub. L. 104–127, § 205(1), substituted “developing country or private entity” for “recipient country”.

Subsec. (c). Pub. L. 104–127, § 205(2), substituted “appropriate developing country” for “recipient country” in introductory provisions and pars. (1), (6), and (7), and “appropriate developing countries” for “recipient countries” in par. (3).

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.

1988—Subsec. (b)(1). Pub. L. 100–418 inserted “(including wood and processed wood products of the United States)” after first reference to “agricultural commodities”.

1981—Pub. L. 97–113, § 401(5)(A), (B), substituted in introductory text “agreements for such sales entered into prior to January 1, 1972,” for “this subchapter” and struck out from penultimate proviso, par. (3), “except as provided in subsection (c) of this section),” after “foreign currencies”.

Subsec. (d). Pub. L. 97–113, § 402, increased fiscal year limitation to $10,000,000 from $5,000,000.

1979—Subsec. (f). Pub. L. 96–53 substituted “Agency for International Development” for “Advisory Committee on Voluntary Foreign Aid”.

1975—Pub. L. 94–161 inserted references to the House Committee on International Relations and the Senate Committee on Foreign Relations in first proviso of subsec. (b)(1), in par. (3) of penultimate proviso following subsec. (k), and in last sentence of section and repealed subsec. (c) which read: “To procure equipment, materials, facilities, and services for the common defense including internal security;”, respectively.

1970—Pub. L. 91–524 inserted provision allowing appropriation acts to specifically authorize the use of foreign currencies in the educational and cultural exchange program without requiring the appropriation of dollars for the purchase of those same foreign currencies.

1968—Subsec. (b)(2). Pub. L. 90–436, § 3, authorized the financing with at least 2 percent of the total sales proceeds each year in each country of additional activities to strengthen the resources of American schools, colleges, universities, and other public and nonprofit private educational agencies for international studies and research pursuant to programs authorized by title VI of the National Defense Education Act, the Mutual Educational and Cultural Exchange Act of 1961, the International Education Act of 1966, the Higher Education Act of 1965, the Elementary and Secondary Education Act of 1965, the National Foundation on the Arts and the Humanities Act of 1965, and the Public Broadcasting Act of 1967.

Subsec. (h). Pub. L. 90–436, § 2(a), inserted provision that not less than 5 percent of the total sales proceeds, if requested by the foreign country, be used for voluntary programs to control population growth.

Subsec. (k). Pub. L. 90–436, § 6, added subsec. (k).

1966—Pub. L. 89–808, in introductory text, struck out “section 724 of title 31, or” after “Notwithstanding”, substituted “foreign countries or international organizations” for “friendly nations, or organizations of nations”, and inserted “in connection with sales for foreign currencies” after “accrue”.

Subsec. (a). Pub. L. 89–808 redesignated subsec. (f) as (a), struck out “abroad” after “obligations” and inserted “(including obligations entered into pursuant to other legislation)”. Former subsec. (a) redesignated (b)(1).

Subsec. (b). Pub. L. 89–808 struck out subsec. (b) which provided for purchase, in such amounts as may be specified from time to time in appropriation acts, strategic or other materials for a supplemental stockpile of such materials as the president may determine from time to time.

Subsec. (b)(1). Pub. L. 89–808 redesignated former subsec. (a) as (b)(1), inserted “For carrying out programs of United States Government agencies to—” preceding par. (1) and restriction against making a release until expiration of requisite number of days following transmittal to congressional committees, struck out “after September 21, 1959,” before “shall be set aside” and “Provided further, That no such funds shall be allocated under this subsection after June 30, 1960, except as may be specified from time to time, in appropriation acts” before convertibility of proceeds provision, substituted “as he determines cannot be effectively used for agricultural market development purposes under this section” for “as he determines not to be needed, within a reasonable period of time, for such purpose:” and “sale of agricultural commodities” for “sale of surplus agricultural commodities” and inserted provisions of utilization of nonprofit agricultural trade organizations to maximum extent possible in carrying out agricultural market development activities and inclusion as a purpose of subsec. (b) such representation of agricultural industries as may be required during course of discussions on trade programs relating either to individual commodities or groups of commodities.

Subsec. (b)(2). Pub. L. 89–808 incorporated in provisions designated as par. (2) provisions of subsec. (h) which provided for financing of international exchange activities under programs authorized by section 1641(b)(2) of Appendix to title 50 and for financing in such amounts as may be specified from time to time in appropriation acts of programs for interchange of persons under section 1446 of title with a particular effort for allocation of funds with regard to countries where adequate funds are not available from other sources for such purposes and countries where agreements can be negotiated to establish a fund to be available over a period of years for such purposes, including setting aside of such amounts from sale proceeds and loan repayments not in excess of $1,000,000 a year in any one country for not more than 5 years in advance, as determined to be required for such purposes by the Secretary of State.

Subsec. (b)(3). Pub. L. 89–808 redesignated subsec. (k) as par. (3), included use of foreign currencies for family planning programs, and struck out proviso for availability of foreign currencies for subsec. (k) purposes (in addition to funds otherwise made available for such purposes) only in such amounts as may be specified from time to time in appropriation Acts.

Subsec. (b)(4). Pub. L. 89–808 redesignated subsec. (l) as par. (4), striking out subsec. (l) proviso for availability of foreign currencies for subsec. (l) purposes (in addition to funds otherwise made available for such purposes) in such amounts as may be specified from time to time in appropriation acts.