7 U.S.C. § 1704 — Use of local currency payment

Page 965 TITLE 7—AGRICULTURE § 1704 1 See References in Text note below. Subsec. (b). Act Aug. 3, 1956, increased from $1,500,000,000 to $3,000,000,000 the limitation on sales. 1955—Subsec. (b). Act Aug. 12, 1955, increased from $700,000,000 to $1,500,000,000 the limitation on sales, and provided that this limitation shall not be apportioned by year or by country. Statutory Notes and Related Subsidiaries 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. EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–53 effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as a note under section 2151 of Title 22, Foreign Relations and Inter- course. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–424 effective Oct. 1, 1978, see section 605 of Pub. L. 95–424, set out as a note under section 2151 of Title 22, Foreign Relations and Inter- course. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95–88 effective Oct. 1, 1977, see section 215 of Pub. L. 95–88, set out as a note under sec- tion 1702 of this title. EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title. EFFECTIVE DATE OF 1964 AMENDMENT Pub. L. 88–638, § 1(5), Oct. 8, 1964, 78 Stat. 1035, pro- vided that the amendment made by section 1(5) is effec- tive Jan. 1, 1965. EFFECTIVE DATE OF 1961 AMENDMENT Pub. L. 87–128, title II, § 201(2), Aug. 8, 1961, 75 Stat. 306, provided that the amendment made by section 201(2) is effective Jan. 1, 1962. EFFECTIVE DATE OF 1959 AMENDMENT Pub. L. 86–341, title I, § 2, Sept. 21, 1959, 73 Stat. 606, provided that the amendment made by section 2 is ef- fective Jan. 1, 1960. § 1704. Use of local currency payment (a) In general Agreements under this subchapter may pro- vide that the Secretary shall use payments made in local currencies by the developing coun- try 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 cur- rencies 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 orga- nizations, and cooperatives, for the following: (1) Agricultural development To support— (A) increased agricultural production, in- cluding availability of agricultural inputs, with emphasis on small farms, processing of agricultural commodities, forestry manage- ment, and land and water management; (B) credit policies for private-sector agri- culture development; (C) establishment and expansion of institu- tions for basic and applied agricultural re- search 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 en- tities (including cooperatives) and branches, subsidiaries, or affiliates of such entities for development of agricultural businesses and ag- ricultural trade capacity in such appropriate developing countries. (3) Agricultural facilities loans To make loans to domestic or foreign enti- ties (including cooperatives) for the establish- ment 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 develop- ment To conduct private sector agricultural trade development activities in the appropriate de- veloping country, as determined appropriate by the Secretary. (6) Research To conduct research in agriculture, forestry, and aquaculture, including collaborative re- search which is mutually beneficial to the United States and the appropriate developing country. (7) United States obligations To make payments of United States obliga- tions (including obligations entered into pur- suant to other laws). (8) Safe water and sanitation To provide assistance under section 2152h 1 of title 22 to promote good health, economic de- velopment, poverty reduction, women’s em- powerment, conflict prevention, and environ- mental sustainability by increasing affordable and equitable access to safe water and sanita- tion. (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). Page 966 TITLE 7—AGRICULTURE § 1704 (2) Use of currencies by other agencies Any department or agency of the Federal Government other than the Department of Ag- riculture using any such local currencies for a purpose for which funds have been appro- priated 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 Assist- ance 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 classi- fied to section 2152f of Title 22, to reflect the probable intent of Congress. AMENDMENTS 2008—Subsec. (c). Pub. L. 110–246, § 3006(7), redesig- nated pars. (2) to (9) as (1) to (8), respectively. Pub. L. 110–246, § 3006(1), inserted ‘‘, through agree- ments 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 bene- ficial basis in the appropriate developing country.’’ Subsec. (c)(2)(E). Pub. L. 110–246, § 3006(3), added sub- par. (E). Subsec. (c)(3). Pub. L. 110–246, § 3006(4), substituted ‘‘development of agricultural businesses and agricul- tural trade capacity’’ for ‘‘agricultural business devel- opment and agricultural trade expansion’’. Subsec. (c)(4). Pub. L. 110–246, § 3006(5), struck out ‘‘, or otherwise increasing the consumption of and mar- kets for, United States’’ before ‘‘agricultural prod- ucts’’. 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 ‘‘ap- propriate 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, sub- stituting present provisions for provisions authorizing President to use local currencies received as payments to pay United States obligations, for agricultural mar- ket development, for educational and cultural ex- change, for scientific activities, for purchase of real property abroad, for purchase of foreign books, periodi- cals, etc., for United States libraries, to meet emer- gency relief requirements, for loans to United States businesses for trade expansion and to firms for develop- ment 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 assist- ance 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 ‘‘(includ- ing wood and processed wood products of the United States)’’ after first reference to ‘‘agricultural commod- ities’’. 1981—Pub. L. 97–113, § 401(5)(A), (B), substituted in in- troductory text ‘‘agreements for such sales entered into prior to January 1, 1972,’’ for ‘‘this subchapter’’ and struck out from penultimate proviso, par. (3), ‘‘ex- cept 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 Com- mittee 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 sub- sec. (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, mate- rials, facilities, and services for the common defense in- cluding internal security;’’, respectively. 1970—Pub. L. 91–524 inserted provision allowing ap- propriation acts to specifically authorize the use of for- eign currencies in the educational and cultural ex- change program without requiring the appropriation of dollars for the purchase of those same foreign cur- rencies. 1968—Subsec. (b)(2). Pub. L. 90–436, § 3, authorized the financing with at least 2 percent of the total sales pro- ceeds each year in each country of additional activities to strengthen the resources of American schools, col- leges, universities, and other public and nonprofit pri- vate educational agencies for international studies and research pursuant to programs authorized by title VI of the National Defense Education Act, the Mutual Edu- cational and Cultural Exchange Act of 1961, the Inter- national 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 Broad- casting 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 vol- untary programs to control population growth. Page 967 TITLE 7—AGRICULTURE § 1704 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 organi- zations’’ for ‘‘friendly nations, or organizations of na- tions’’, and inserted ‘‘in connection with sales for for- eign currencies’’ after ‘‘accrue’’. Subsec. (a). Pub. L. 89–808 redesignated subsec. (f) as (a), struck out ‘‘abroad’’ after ‘‘obligations’’ and in- serted ‘‘(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 stock- pile of such materials as the president may determine from time to time. Subsec. (b)(1). Pub. L. 89–808 redesignated former sub- sec. (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 trans- mittal 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 agri- cultural market development purposes under this sec- tion’’ 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 agri- cultural commodities’’ and inserted provisions of utili- zation of nonprofit agricultural trade organizations to maximum extent possible in carrying out agricultural market development activities and inclusion as a pur- pose of subsec. (b) such representation of agricultural industries as may be required during course of discus- sions on trade programs relating either to individual commodities or groups of commodities. Subsec. (b)(2). Pub. L. 89–808 incorporated in provi- sions 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 per- sons 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 pe- riod of years for such purposes, including setting aside of such amounts from sale proceeds and loan repay- ments not in excess of $1,000,000 a year in any one coun- try 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 avail- ability 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 avail- ability 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. Subsec. (b)(5). Pub. L. 89–808 redesignated subsec. (n)(1) to (3) as par. (5)(A) to (C), striking out provision for use of foreign currencies ‘‘in such amounts as may be specified from time to time in appropriation acts’’. Subsec. (c). Pub. L. 89–808 reenacted existing provi- sions. Subsec. (d). Pub. L. 89–808 redesignated subsec. (q) as (d). Former subsec. (d) redesignated (g). Subsec. (e). Pub. L. 89–808 substituted provisions for use of foreign currencies to maximum extent and for due consideration to be given to the continued expan- sion of markets for United States agricultural com- modities or products thereof in proviso for former pro- visions for availability of such currencies to maximum usable extent and for manufacture or production of any commodity to be marketed in competition with United States agricultural commodities or products thereof in the proviso, authorized loans to cooperatives and for private home construction in foreign countries, struck out introductory phrase for uses of such currencies ‘‘For promoting balanced economic development and trade among nations’’, and that loans be mutually agreeable to the agency and the country making the agreement, and inserted ‘‘intended’’ in proviso. Subsec. (f). Pub. L. 89–808 redesignated subsec. (g) as (f), provided for promotion of agricultural development, establishment of procedures by the President, use of funds in any other manner than loans as determined by the President to be in the national interest, assistance to programs of recipient countries designed to promote, increase, or improve food production, processing, dis- tribution, or marketing in food-deficit countries friend- ly to the United States, and utilization for such pur- pose to extent practicable the services of registered and approved nonprofit voluntary agencies, prohibited use of funds to promote religious activities, and struck out provisions for loans made through established banking facilities of the friendly nation from which the foreign currency was obtained or in any other manner which the President may deem to be appropriate and author- ization for acceptance of strategic materials, services, or foreign currencies in payment of such loans. Former subsec. (f) redesignated (a). Subsec. (g). Pub. L. 89–808 redesignated former subsec. (d) as (g), struck out ‘‘financing’’ before ‘‘the pur- chase’’. Former subsec. (g) redesignated (f). Subsec. (h). Pub. L. 89–808 added subsec. (h) Former subsec. (h) redesignated (b)(2). Subsec. (i). Pub. L. 89–808 substituted provisions re- specting use of foreign currencies for paying costs out- side the United States of carrying out food production assistance programs for former provisions for financing ($5,000,000 fiscal year limitation) translation, publica- tion, and distribution of books and periodicals, includ- ing Government publications, abroad. Subsec. (j). Pub. L. 89–808 redesignated subsec. (t) as (j), authorized sale of foreign currencies to nonprofit organizations, and struck out provisions making the currencies available for sale at United States embassies or other convenient locations, describing such cur- rencies as acquired through operations under Foreign Assistance Act of 1961, as amended, Mutual Security Act of 1954, as amended, or any Act repealed thereby, or Agricultural Trade Development and Assistance Act of 1954, as amended, prohibiting such sales for travel pur- poses under agreement entered into with another coun- try or when so committed by agreement to other uses, depositing dollars from such sales into United States Treasury as miscellaneous receipts, and treating dol- lars deposited into the CCC account as a reimburse- ment under section 1705 of this title. Former subsec. (j) provided for assistance to schools, libraries, and com- munity centers abroad founded or sponsored by United States citizens and serving as demonstration centers, and is now covered by subsec. (b)(2) of this section. Subsecs. (k), (l). Pub. L. 89–808 redesignated subsecs. (k) and (l) as (b)(3) and (4). Subsec. (m). Pub. L. 89–808 struck out subsec. (m) which provided for financing in such amounts as may be specified from time to time in appropriation acts trade fair participation and related activities and agri- cultural and horticultural fair participation and re- lated activities. Subsec. (n). Pub. L. 89–808 redesignated subsec. (n) as (b)(5). Subsecs. (o), (p). Pub. L. 89–808 struck out subsec. (o) which provided for assistance, in such amounts as may be specified from time to time in appropriation acts, in Page 968 TITLE 7—AGRICULTURE § 1704 expansions or operation in foreign countries of schools, colleges, or universities founded or sponsored by United States citizens for carrying out programs of vocational, professional, scientific, technological, or general edu- cation, and subsec. (p) which provided for supporting workshops in American studies or American edu- cational techniques, and supporting chairs in American studies. Subsec. (q). Pub. L. 89–808 redesignated subsec. (q) as (d). Subsec. (r). Pub. L. 89–808 struck out subsec. (r) which provided for financing ($2,500,000 fiscal year limitation) preparation, distribution, and exhibition of audio-vis- ual informational and educational materials abroad without limiting or affecting use of foreign currencies for such materials in connection with trade fairs and other market development activities under subsec. (a) of this section. Subsecs. (s), (t). Pub. L. 89–808 incorporated subsecs. (s) and (t) in subsec. (j), and struck out from former subsec. (s) ‘‘under such terms and conditions as the President may prescribe’’. Penultimate proviso. Pub. L. 89–808 incorporated part of existing proviso following subsec. (t) in provisions designated as par. (1) and inserted reference to subsec. (b). Pub. L. 89–808 incorporated part of existing initial proviso and second proviso following subsec. (t) in pro- visions designated as par. (2), substituted references to subsecs. (f) and (g) for (d) and (e), and struck out a third proviso restricting the availability of foreign cur- rencies pursuant to subsecs. (k), (p), and (r) to such amounts as may be specified from time to time in ap- propriation Acts. Pub. L. 89–808 redesignated penultimate par. as par. (3) and struck out ‘‘and then only if, between the date of transmittal and the expiration of such period there has not been passed by either of the two Committees a resolution stating in substance that that Committee does not favor such agreement or proposal’’ after ‘‘ses- sions.’’. Pub. L. 89–808 redesignated last par. as par. (4) and substituted ‘‘after consultation with the advisory com- mittee established under section 1736a of this title’’ for ‘‘upon the recommendation of the advisory committee herein established’’. Ultimate proviso. Pub. L. 89–808 inserted ultimate proviso making pars. (2) to (4) of penultimate proviso inapplicable in the case of any nation where the foreign currencies or credits owned by the United States and available for use by it in such nation are determined by the Secretary of the Treasury to be in excess of the normal requirements of Federal departments and agen- cies for expenditures in such nations for two fiscal years following fiscal year in which such determination is made. Concluding text. Pub. L. 89–808 inserted provisions for devotion of excess foreign currencies to acquisition of sites, buildings, and grounds under subsec. (b)(4) of this section, for assistance in self-help measures, and for re- ports to congressional committees of determinations of existence of excess foreign currencies with respect to any nation, uses for such excess, and effects of such use. Pub. L. 89–808 struck out pars. for establishment of an advisory committee and for consultations with such committee respecting loan, currency convertibility, and currency reservations (in sales agreements) poli- cies and for establishment of higher than minimum in- terest rate for dollar sales. Advisory committee provi- sions are now covered in section 1736a of this title. 1965—Subsec. (a). Pub. L. 89–106 authorized the Sec- retary of Agriculture to release such amounts of the foreign currencies set aside for the market develop- ment program as he determined not to be needed, with- in a reasonable period of time, for that purpose. 1964—Subsec. (c). Pub. L. 88–638, § 1(6), inserted ‘‘in- cluding internal security’’ and struck out ‘‘military’’ before ‘‘equipment’’. Subsec. (e). Pub. L. 88–638, § 1(7), substituted ‘‘cur- rencies shall also be available to the maximum usable extent’’ for ‘‘not more than 25 per centum of the cur- rencies received pursuant to each such agreement shall be available’’. Subsec. (t). Pub. L. 88–638, § 2, redesignated subsec. (b) of section 612 of Pub. L. 87–195, as subsec. (t) of this sec- tion, inserted ‘‘For sale to United States citizens as provided herein’’, substituted ‘‘the Foreign Assistance Act of 1961, as amended’’ for ‘‘this chapter’’, and pro- vided that except in the case of foreign currencies ac- quired under this subchapter, dollars received from the sale of foreign currencies shall be deposited to the ac- count of the Commodity Credit Corporation and shall be treated as a reimbursement to such Corporation. Pub. L. 88–638, § 1(8)–(10), established an advisory com- mittee, specified its composition, directed it to review the status and usage of foreign currencies accruing under this subchapter and to make various rec- ommendations, provided that the committee be con- sulted with respect to various matters, for the trans- mittal of certain proposals to congressional commit- tees, and that any loan under this section shall bear in- terest as the President shall determine, within certain limits and taking various matters into consideration, and inserted ‘‘pursuant to agreements entered into on or before December 31, 1964 and to not less than 20 per centum in the aggregate of the foreign currencies which accrue pursuant to agreements entered into thereafter’’ in first proviso. 1963—Subsec. (t). Pub. L. 88–205 added subsec. (b) to section 612 of Pub. L. 87–195, which was designated as subsec. (t) of this section by Pub. L. 88–638. 1962—Subsec. (m). Pub. L. 87–839 inserted ‘‘or section 1122b of title 46’’. 1961—Pub. L. 87–128, § 201(3)(a), inserted ‘‘, including principal and interest from loan repayments,’’ after ‘‘foreign currencies’’, in opening provisions. Subsec. (a). Pub. L. 87–128, § 201(3)(d), inserted, in sec- ond sentence, ‘‘each year’’ after ‘‘made’’ and ‘‘set aside in the amounts and kinds of foreign currencies speci- fied by the Secretary of Agriculture and’’ after ‘‘be’’, where ‘‘made’’ and ‘‘be’’ first appear; substituted, in third sentence, ‘‘Provision shall be made’’ for ‘‘Par- ticular regard shall be given to provide’’ and ‘‘the Sec- retary of Agriculture determines to’’ for ‘‘may’’ and in- serted ‘‘(not less than 2 per centum)’’ after ‘‘thereof’’; inserted sentence concerning conversion of monies into foreign currencies and deposit in special Treasury ac- count; and substituted, in last sentence, ‘‘the Secretary of Agriculture is authorized and directed to enter into agreements’’ for ‘‘agreements may be entered into’’. Subsec. (e). Pub. L. 87–195 substituted ‘‘procedures es- tablished by such agency as the President shall direct for loans mutually agreeable to said agency’’ for ‘‘pro- cedures established by the Export-Import Bank for loans mutually agreeable to said bank’’. Subsec. (s). Pub. L. 87–128, § 201(3)(c), added subsec. (s). Pub. L. 87–128, § 201(3)(b), substituted in final proviso ‘‘pursuant to’’ for ‘‘for the purpose of subsection (p) of this section, except in such amounts as may be speci- fied from time to time in appropriation Acts, and no foreign currencies shall be allocated under any provi- sion of this chapter after June 30, 1960, for the purposes specified in’’. 1959—Subsec. (a). Pub. L. 86–341, § 4, provided that from sale proceeds and loan repayments under this sub- chapter not less than the equivalent of 5 per centum of the total sales made under this subchapter after Sep- tember 21, 1959, shall be made available in advance for use as provided by this subsection over such period of years as the Secretary of Agriculture determines will most effectively carry out the purposes of this sub- section, prohibited the allocation of such funds after June 30, 1960, except as may be specified in appropria- tion acts, required particular regard to be given for provisions in sale and loan agreements for the convert- ibility of such amount of the proceeds thereof as may be needed to carry out the purpose of this subsection in those countries which are or offer reasonable potential of becoming dollar markets for United States agricul- tural commodities, and permitted the entering into Page 969 TITLE 7—AGRICULTURE § 1704 agreements for the sale of surplus agricultural com- modities in such amounts as the Secretary of Agri- culture determines to be adequate and for the use of the proceeds to carry out the purpose of this subsection in cases where sufficient foreign currencies for carrying out the purpose of this subsection in such countries are not otherwise available. Subsec. (b). Pub. L. 86–341, § 5, among other changes, substituted ‘‘strategic or other materials’’ for ‘‘stra- tegic and critical materials’’ in two places, limited pur- chases or contracts to purchase to such amounts as may be specified from time to time in appropriation acts, and eliminated provisions which authorized con- tracts, including advance payment contracts, for sup- ply extending over periods up to ten years, and which permitted the strategic and critical materials acquired under authority of this subchapter to be additional to the amounts acquired under authority of the Strategic and Critical Materials Stockpile Act. Subsec. (k). Pub. L. 86–341, § 6, authorized the use of foreign currencies to promote and support programs of medical and scientific research, cultural and edu- cational development, health, nutrition, and sanita- tion. Pub. L. 86–108 substituted ‘‘conduct research and sup- port’’ for ‘‘conduct and support’’, and ‘‘: Provided, That foreign currencies shall be available for the purposes of this subsection (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;’’ for ‘‘, but no foreign currencies shall be used for the purposes of this subsection unless specific appro- priations be made therefor;’’. Subsec. (o). Pub. L. 86–341, § 7, struck out provisions which permitted the use of foreign currencies in the supporting of workshops in American studies or Amer- ican educational techniques, and supporting chairs in American studies. See subsec. (p) of this section. Subsecs. (p) to (r). Pub. L. 86–341, § 8, added subsecs. (p) to (r). Pub. L. 86–341, § 9, inserted proviso in closing provi- sions limiting availability of foreign currencies for the purpose of subsec. (p) of this section to such amounts as may be specified from time to time in appropriation Acts, and prohibiting allocation of foreign currencies after June 30, 1960, for the purposes specified in sub- sections (k), (p), and (r) of this section to such amounts as may be specified from time to time in appropriation Acts. 1958—Subsec. (h). Pub. L. 85–931, § 3(a), authorized use of foreign currencies to finance programs for inter- change of persons between United States and foreign countries. Subsec. (k). Pub. L. 85–477 added subsec. (k). Subsecs. (l) to (o). Pub. L. 85–931, § 3(b), added subsecs. (l) to (o). 1957—Subsec. (e). Pub. L. 85–128 provided that not more than 25 percent of the currencies received pursu- ant to each agreement be available through the Export- Import Bank for loans mutually agreeable to said bank and the country with which the agreement is made for business development in such countries and for loans to domestic or foreign firms for facilities to aid markets for United States agricultural products, provided no such loans be made for the manufacture of products to be exported to United States in competition with United States products or for manufacture or produc- tion of any commodity to be marketed in competition with United States agricultural commodities or prod- ucts thereof, and that foreign currencies may be ac- cepted in repayment of such loans. Subsec. (h). Pub. L. 85–141, § 11(b)(2), added section 544(c) to act Aug. 26, 1954, which section inserted provi- sions in this subsection authorizing the setting aside of amounts from sale proceeds and loan repayments. 1956—Subsec. (h). Act July 18, 1956, added section 544(h) to act Aug. 26, 1954, which section inserted provi- sions in this section relating to allocation of funds and to the special and particular effort to be made to pro- vide for the purposes of this subsection. Subsec. (i). Act Aug. 26, 1954, § 544(i), as added by act July 18, 1956, added subsec. (i). Subsec. (j). Act Aug. 3, 1956, added subsec. (j). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effec- tive Date note under section 8701 of this title. 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. EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–53 effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as a note under section 2151 of Title 22, Foreign Relations and Inter- course. EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title. REPEALS Section 704 of Pub. L. 87–195, cited as a credit to this section, was repealed by section 401 of Pub. L. 87–565, pt. IV, Aug. 1, 1962, 76 Stat. 263, except insofar as sec- tion 704 affected this section. Pub. L. 85–477, ch. IV, § 401(h), June 30, 1958, 72 Stat. 270, repealed section 544(c) of act Aug. 26, 1954, cited as a credit to this section, except insofar as such section 544(c) affected this section. Pub. L. 85–141, § 11(b)(1), repealed section 544(h), (i) of act Aug. 26, 1954, cited as a credit to this section, ex- cept insofar as such section 544(h), (i) affected this sec- tion. PAYMENT FROM FOREIGN CURRENCIES FOR FAMILY HOUSING PROJECTS OR COMMUNITY FACILITIES CON- STRUCTED OR ACQUIRED BY DEPARTMENT OF DEFENSE Pub. L. 86–500, title V, § 509, June 8, 1960, 74 Stat. 186, as amended by Pub. L. 110–246, title III, § 3001(c), June 18, 2008, 122 Stat. 1821, provided that: ‘‘Notwithstanding the provisions of any other law, at least 75 per centum of the total cost of any family housing project or com- munity facility hereafter constructed or acquired in any foreign country by the Department of Defense or any military department shall be paid for from foreign currencies acquired by the Commodity Credit Corpora- tion pursuant to the provisions of the Food for Peace Act [this chapter]; except that the following projects authorized pursuant to this Act shall not be subject to this requirement: ‘‘Air Force activities, Japan, one hundred fifty units; ‘‘Cigli Air Base, Turkey, community facilities; ‘‘Clark Air Force Base, Philippine Islands, one hun- dred units; ‘‘Iraklion Air Station, Crete, community facilities; ‘‘Kirknewton RAF, United Kingdom, fifty units; ‘‘Naval Air Station, Naha, Okinawa, two hundred; and ‘‘Site I–5, Italy, one hundred units and community fa- cilities.’’ LIMITATION ON USE OF FOREIGN CURRENCIES FOR PAR- TICIPATION IN TRADE, AGRICULTURAL AND HORTI- CULTURAL FAIRS Pub. L. 86–30, title I, § 101, May 20, 1959, 73 Stat. 35, as amended by Pub. L. 110–246, title III, § 3001(c), June 18, 2008, 122 Stat. 1821, provided that: ‘‘Subject to alloca- tion in such manner as may now or hereafter be pre- scribed by the President, foreign currencies which have accrued under title I of the Food for Peace Act, as amended (7 U.S.C. 1704) [this section] may be used with- Page 970 TITLE 7—AGRICULTURE § 1704a out fiscal year limitation for the purposes of section 104(m) of that Act [former subsec. (m) of this section], including administrative expenses directly related thereto, in an amount not to exceed the equivalent of $1,275,000.’’ INTERNATIONAL COOPERATION IN HEALTH RESEARCH, RESEARCH TRAINING, AND RESEARCH PLANNING Use of foreign currencies accruing under this sub- chapter to carry out purposes of International Health Research Act of 1960, see section 2103 of Title 22, For- eign Relations and Intercourse. 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. § 1704a. Agreements for use of foreign currencies; reports to Congress Within sixty days after any agreement is en- tered into for the use of any foreign currencies, a full report thereon shall be made to the Senate and the House of Representatives of the United States and to the Committees on Agriculture and Appropriations thereof. (Pub. L. 85–128, § 1(5), Aug. 13, 1957, 71 Stat. 345.) Editorial Notes CODIFICATION Section was not enacted as part of the Food for Peace Act which comprises this chapter. Executive Documents TRANSMISSION OF REPORTS For provisions requiring Secretary of Agriculture and Administrator of Agency for International Develop- ment to transmit reports required by this section as re- lated to use of foreign currencies accruing under sub- chapters 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. § 1704b. Repealed. Pub. L. 97–214, § 7(4), July 12, 1982, 96 Stat. 173 Section, Pub. L. 86–149, title IV, § 420, Aug. 10, 1959, 73 Stat. 324, related to utilization of foreign currencies for construction of military projects and reimbursement of Commodity Credit Corporation. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective Oct. 1, 1982, and applicable to mili- tary construction projects, and to construction and ac- quisition of military family housing before, on, or after such date, see section 12(a) of Pub. L. 97–214, set out as an Effective Date note under section 2801 of Title 10, Armed Forces. § 1704c. Payments by Secretary of Defense in liq- uidation of amount due for foreign cur- rencies The Secretary of Defense shall pay to the Commodity Credit Corporation an amount not to exceed $6,000,000 per year until the amount due for foreign currencies used for housing con- structed or acquired under title II of the Food for Peace Act (7 U.S.C. 1721–1726) has been liq- uidated. (Pub. L. 97–214, § 9(a), July 12, 1982, 96 Stat. 174; Pub. L. 110–246, title III, § 3001(b)(1)(A), (2)(C), June 18, 2008, 122 Stat. 1820.) Editorial Notes REFERENCES IN TEXT The Food for Peace Act (7 U.S.C. 1721–1726), referred to in text, is act July 10, 1954, ch. 469, 68 Stat. 457. Title II of the Act is classified generally to subchapter III (§ 1721 et seq.) of chapter 41 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1691 of this title and Tables. CODIFICATION Section consists of section 9(a) of Pub. L. 97–214. Sec- tion 9(b) of Pub. L. 97–214 is classified as a note set out under section 1594k of Title 42, The Public Health and Welfare. Section was enacted as part of the Military Construc- tion Codification Act, and not as part of the Food for Peace Act which comprises this chapter. AMENDMENTS 2008—Pub. L. 110–246 substituted ‘‘Food for Peace Act’’ for ‘‘Agricultural Trade Development and Assist- ance Act of 1954’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effec- tive Date note under section 8701 of this title. EFFECTIVE DATE Section effective Oct. 1, 1982, and applicable to mili- tary construction projects, and to construction and ac- quisition of military family housing before, on or after such date, see section 12(a) of Pub. L. 97–214, set out as a note under section 2801 of Title 10, Armed Forces. §§ 1705, 1706. Repealed. Pub. L. 104–127, title II, §§ 206, 265(a), Apr. 4, 1996, 110 Stat. 953, 974 Section 1705, acts July 10, 1954, ch. 469, title I, § 105, 68 Stat. 457; Dec. 16, 1963, Pub. L. 88–205, pt. IV, § 403(b), 77 Stat. 390; Nov. 11, 1966, Pub. L. 89–808, § 2(B), 80 Stat. 1532; Dec. 23, 1985, Pub. L. 99–198, title XI, § 1111(e), 99 Stat. 1475; Nov. 28, 1990, Pub. L. 101–624, title XV, § 1512, 104 Stat. 3636, set out congressional declaration of pol- icy with regard to value-added foods. Section 1706, Pub. L. 101–624, title XV, § 1517, Nov. 28, 1990, 104 Stat. 3664, related to debt-for-health-and-pro- tection swap. 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 com- modities and use of proceeds prior to the general revi- sion of this chapter by Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3633. § 1707. Omitted Editorial Notes 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;