Mr. MANSFIELD. Mr. President, I ask unanimous consent that my previous unanimous-consent request be vitiated and that the order for the yeas and nays be rescinded. I will offer it later, if a sufficient number of Senators are not then present.

Senator from South Dakota [Mr. [MCGOVERN] would each vote "nay."

Mr. MANSFIELD. Mr. President, I suggest the absence of a quorum.

The PRESIDING OFFICER. The clerk will call the roll.

The legislative clerk proceeded to call the roll.

Mr. MANSFIELD. Mr. President, I ask unanimous consent that the order for the quorum call may be rescinded.

The PRESIDING OFFICER. Without objection, it is so ordered.

Mr. MORSE. Mr. President, I am glad to accommodate the Senator from Iowa [Mr. MILLER]. I believe his proposal is sound.

I modify my amendment by deleting the interest section, lines 24 and 25 on page 2, plus lines 1 and 2 on page 3.

The PRESIDING OFFICER. The Senator from Oregon has a right to modify his amendment.

Mr. DIRKSEN. Mr. President, a parliamentary inquiry.

The PRESIDING OFFICER. The Senator from Illinois will state it.

Mr. DIRKSEN. What is the pending question?

The PRESIDING OFFICER. The question is on agreeing to the amendment of the Senator from Oregon [Mr. MORSE], as modified, to the committee amendment in the nature of a substitute, as amended.

Mr. MORSE. Mr. President, I ask unanimous consent that the yeas and nays be ordered on the Morse amendment.

The yeas and nays were ordered. The PRESIDING OFFICER. The question is on agreeing to the amendment of the Senator from Oregon [Mr. MORSE], as modified, to the committee amendment, in the nature of a substitute, as amended.

On this question the yeas and nays have been ordered, and the clerk will call the roll.

The legislative clerk called the roll. Mr. HUMPHREY. I announce that the Senator from New Mexico [Mr. ANDERSON], the Senator from Louisiana [Mr. ELLENDER], the Senator from Tennessee [Mr. GORE], the Senator from Washington [Mr. JACKSON], the Senator from Louisiana [Mr. LONG], the Senator from Washington [Mr. MAGNUSON], the Senator from South Dakota [Mr. MCGOVERN], the Senator from Florida [Mr. SMATHERS], the Senator from Mississippi [Mr. STENNIS], the Senator from Tennessee [Mr. WALTERS], and the Senator from Ohio [Mr. YOUNG] are absent on official business.

I also announce that the Senator from California [Mr. ENGLE] is absent because of illness.

I further announce that, if present and voting, the Senator from New Mexico [Mr. ANDERSON], the Senator from Tennessee [Mr. GORE], the Senator from Washington [Mr. MAGNUSON], and the

On this vote, the Senator from Louisiana [Mr. LONG] is paired with the Senator from Washington [Mr. JACKSON]. If present and voting, the Senator from Louisiana would vote "yea," and the Senator from Washington would vote "nay."

On this vote, the Senator from Mississippi [Mr. STENNIS] is paired with the Senator from Florida [Mr. SMATHERS]. If present and voting, the Senator from Mississippi would vote "yea," and the Senator from Florida would vote "nay."

Mr. KUCHEL. I announce that the Senators from Nebraska [Mr. CURTIS and Mr. HRUSKA] are absent on official business.

The Senator from Kentucky [Mr. MORTON] is necessarily absent.

If present and voting, the Senator from Nebraska [Mr. HRUSKA] Would vote "yea."

On this vote, the Senator from Nebraska [Mr. CURTIS] is paired with the Senator from Kentucky [Mr. MORTON]. If present and voting, the Senator from Nebraska would vote "yea," and the Senator from Kentucky would vote "nay." The result was announced-yeas 29, nays 56, as follows:

with the chairman. I made an address on this amendment on the 23d of August. It appears in the RECORD. The amendment deals with the claims of certain Yugoslav widows and orphans, who were not citizens of the United States at the time their property was confiscated in Yugoslavia. The chairman has agreed to take the amendment to conference. Therefore, I see no virtue in discussing it further, in view of the fact that it has been considered by the committee and because I addressed myself to it on the floor. The amendment is identified as Amendment No. 236.

The PRESIDING OFFICER. amendment will be stated.

The

The LEGISLATIVE CLERK. On page 48, strike out the quotation marks at the end of line 3, and between lines 3 and 4 insert the following:

(k) No assistance shall be furnished under this Act to the Government of the Federal Peoples Republic of Yugoslavia unless

and until the President determines that such Government has made an acceptable arrangement for the payment of claims arising out of the nationalization or other taking

by such Government of property of persons

who are citizens of the United States on the date of enactment of this Act, in any case in which (1) such persons were not citizens of the United States on the date of such nationalization or other taking, or (2) such nationalization or other taking occurred subsequent to July 19, 1948.

The PRESIDING OFFICER. The question is on agreeing to the amendment offered by the Senator from Illinois to the committee amendment in the nature of a substitute.

The amendment to the amendment was agreed to.

Mr. MORSE. I now offer my last amendment. Following a vote on it, I am perfectly willing to vote on the bill. I cannot imagine anything more that I can say in opposition to the bill than I have already said. Therefore I have no intention of speaking on the bill after third reading. Undoubtedly other Senators will wish to address themselves to the bill, or offer amendments.

This is my last amendment. It is a very important amendment, and Senators ought to have an opportunity to vote on it. The amendment is the original House bill (H.R. 7885), a substitute for the pending committee amendment in the nature of a substitute. Lest Senators think that it is subject to a point of order, I inform them that I have cleared it with the Parliamentarian. I have stricken the administrative provisions in the bill at page 21 and 22. I have also stricken, on page 12, language having to do with the junta resolution.

I send the amendment to the desk. It speaks for itself. It gives Senators an ask for the yeas and nays. opportunity to vote on the House bill. I

The yeas and nays were ordered.

The PRESIDING OFFICER. Without in the RECORD at this point. objection, the amendment will be printed

The amendment, which was ordered to be printed in the RECORD, is to insert the following in lieu of the committee amendment:

That this Act may be cited as the "Foreign Assistance Act of 1963".

PART I

Chapter 1-Policy

SEC. 101. Chapter 1 of part I of the Foreign Assistance Act of 1961, as amended, is hereby redesignated "POLICY" and section 101, which relates to short title, is hereby deleted.

SEC. 102. Section 102 of the Foreign Assistance Act of 1961, as amended, which relates to statement of policy, is amended as follows:

(a) In the last sentence of the seventh paragraph, strike out "should emphasize long-range development assistance" and insert in lieu thereof "shall emphasize longrange development assistance".

(b) Immediately after the seventh paragraph, insert the following:

"The Congress further declares that, in order to assure that each program of assistance under this part is administered in such a manner as will most effectively carry out the policies stated in this section, each request for authorization of funds for such program shall be accompanied by a detailed statement setting forth

"(1) the purposes of such program, "(2) the specific objectives of such program and

"(3) the priorities assigned to such purposes and objectives,

which will be adhered to in the administration of such program."

(c) The eighth paragraph is amended to read as follows:

"It is the sense of the Congress that in the administration of these funds great attention and consideration should be given to those countries which share the view of the United States on the world crisis and which do not, as a result of United States assistance, divert their own economic resources to military or propaganda efforts directed against the United States or against other countries receiving aid under this Act, whether or not such efforts are supported by the Soviet Union or Communist China."

(d) Immediately after the tenth paragraph insert the following:

"It is the sense of the Congress that, in the administration of programs of assistance under chapter 2 of this part, every possible precaution should be taken to assure that such assistance is not diverted to short-term emergency purposes (such as budgetary purposes, balance-of-payments purposes, or military purposes) or any other purpose not essential to the long-range economic development of recipient countries. It is further the sense of the Congress that shortterm emergency purposes such as those referred to in the preceding sentence should be met, to the extent possible, through international institutions (such as the International Monetary Fund) which are equipped to condition assistance on immediate economic and monetary reform."

(e) The first sentence of the last paragraph is amended by inserting "(including private enterprise within such countries)" immediately after "countries".

(f) Immediately after the first sentence of the last paragraph insert the following new sentence: "In particular, the Congress urges that other industrialized free-world countries increase their contributions and improve the forms and terms of their assistance so that the burden of the common undertaking, which is for the benefit of all, shall be equitably borne by all."

Chapter 2-Development assistance Title I-Development Loan Fund SEC. 103. The second sentence of section 201(b) of the Foreign Assistance Act of 1961, as amended, which relates to considerations to be taken into account in making loans from the Development Loan Fund, is amended as follows:

(a) Strike out clauses (1) and (2) and insert in lieu thereof the following: "(1)

whether financing could be obtained in whole or in part from other free-world sources on reasonable terms, including private sources within the United States, (2) the economic and technical soundness of the activity to be financed, including the capacity of the recipient country to repay the loan at a reasonable rate of interest,".

(b) Strike out "and" at the end of clause (5).

(c) Insert immediately before the period at the end of such second sentence the following: ", and (7) the economic developplans should specifically provide for approment plans of the requesting country, which priate participation by private enterprise and include an analysis of current human and material resources, together with a projection of the ultimate objectives of the plans with respect to the overall economic development of such country".

SEC. 104. Section 202 (a) of the Foreign Assistance Act of 1961, as amended, which relates to authorizations for the Development Loan Fund, is amended by inserting immediately before the period at the end thereof the following: ": Provided further, That, in order to effectuate the purposes and provisions of sections 102, 201, 601, and 602 of this Act, not less than 50 per centum of the funds appropriated pursuant to this subsection for the fiscal years ending June 30, 1965, and June 30, 1966, respectively, shall be available only for loans made for purposes of economic development through private enterprise".

SEC. 105. Section 201(d) of the Foreign Assistance Act of 1961, as amended, which relates to interest rates on development loans, is amended by inserting immediately after "in no event" the following: "less than 2 per centum per annum nor".

SEC. 106. Section 202(a), which relates to authorization, is amended by striking out "and $1,500,000,000 for each of the next four succeeding fiscal years," and inserting in lieu thereof ", $1,500,000,000 for the fiscal year 1963, $900,000,000 for the fiscal year 1964, and $1,500,000,000 for each of the next two succeeding fiscal years,”.

Title II-Development Grants and Technical Cooperation

SEC. 107. Title II of chapter 2 of part I of the Foreign Assistance Act of 1961, as amended, which relates to development grants and technical cooperation, is amended as follows:

(a) Section 211(a), which relates to general authority, is amended

(1) by striking out "and" at the end of clause (5) contained in the second sentence thereof; and

(2) by inserting immediately before the period at the end of the second sentence the following: ", and (7) whether such activity could be financed through a development loan available under title I of this chapter".

(b) In section 212, which relates to authorization, strike out "1963" and "$300,000,000" and substitute "1964" and "$217,000,000", respectively.

(c) Amend section 214, which relates to American schools and hospitals abroad, as follows:

(1) In subsection (a) strike out "use, in addition to other funds available for such purposes, funds made available for the purposes of section 211 for" and substitute the word "furnish".

(2) In subsection (b) strike out "to use" and "foreign currencies accruing to the United States Government under any Act, for purposes of subsection (a) of this section and for" and substitute "to furnish" before the word "assistance".

(3) Add the following new subsection: "(c) There is hereby authorized to be appropriated to the President for the purposes of this section, for the fiscal year 1964, $12,000,000, to remain available until expended.

Of the sums authorized to be appropriated under this subsection, not to exceed $2,200,000 shall be available for direct dollar costs in carrying out subsection (b) and $2,000,000 shall be available solely for the purchase of foreign currencies accruing to the United States Government under any Act."

Title III-Investment Guaranties SEC. 108. Title III of chapter 2 of part I of the Foreign Assistance Act of 1961, as amended, which relates to investment guaranties, is amended as follows:

(a) Amend section 221(b), which relates to general authority, as follows:

(1) In the first sentence after "wholly owned" insert "(determined without regard to any shares, in aggregate less than 5 per centum of the total of issued and subscribed share capital, required by law to be held by persons other than the parent corporation)".

(2) In paragraph (1) strike out "$1,300,000,000" in the proviso and substitute "$2,500,000,000".

(3) In paragraph (2) strike out "$180,000,000" in the third proviso and substitute "$300,000,000".

(4) In paragraph (2) strike out "1964" in the fourth proviso and substitute "1965".

(b) Amend section 222(a), which relates to general provisions, by striking out "section 221(b)" and substituting "sections 221(b) and 224".

(c) Amend section 222(b), which relates to general provisions, by striking out "section 221(b)" in both places it appears and substituting "sections 221(b) and 224".

(d) Amend section 222(d), which relates to general provisions, to read as follows:

"(d) Any payments made to discharge liabilities under guaranties issued under sections 221(b) and 224 of this part, sections 202(b) and 413 (b) (4) of the Mutual Security Act of 1954, as amended, and section 111(b) (3) of the Economic Cooperation Act of 1948, as amended (exclusive of informational media guaranties), shall be paid first out of fees referred to in section 222(b) as long as such fees are available, and thereafter shall be paid out of funds, if any, realized from the sale of currencies or other assets acquired in connection with any payments made to discharge liabilities under such guaranties as long as such funds are available, and thereafter shall be paid out of funds heretofore appropriated for the purpose of discharging liabilities under the aforementioned guaranties, and thereafter out of funds realized from the sale of notes issued under section

413(b) (4) (F) of the Mutual Security Act of 1954, as amended, and section 111 (c) (2) of the Economic Cooperation Act of 1948, as amended, and finally out of funds hereafter made available pursuant to section 222 (f)."

(e) Amend section 222(e), which relates to general provisions, to read as follows:

"(e) All guaranties issued prior to July 1, 1956, all guaranties issued under sections 202(b) and 413(b)(4) of the Mutual Security Act of 1954, as amended, and all guaranties heretofore or hereafter issued pursuant to this title shall be considered contingent obligations backed by the full faith and credit of the Government of the United States of America. Funds heretofore obligated under the aforementioned guaranties (exclusive of informational media guaranties) together with the other funds made available for the purposes of this title shall constitute a single reserve for the payment of claims in accordance with section 222(d) of this part."

(f) Amend section 222 by adding at the end thereof the following new subsection:

"(g) In making a determination to issue a guaranty under section 221(b), the President shall consider the possible adverse effect of the dollar investment under such guaranty upon the balance of payments of the United States."

(g) Amend section 224, which relates to housing projects in Latin American countries, as follows:

(1) In subsection (b) strike out "$60,000,000" and substitute "$150,000,000".

(2) Strike out subsection (c).

Title VI-Alliance for Progress

SEC. 109. Title VI of chapter 2 of part I of the Foreign Assistance Act of 1961, as amended, which relates to the Alliance for Progress, is amended as follows:

(a) Amend section 251, which relates to general authority, as follows:

(1) In subsection (b), amend the next to the last sentence thereof by inserting immediately after "reasonable terms" the following: "(including private sources within the United States), the capacity of the recipient country to repay the loan at a reasonable rate of interest,".

(2) In subsection (e) strike out "economical" and substitute "economically".

(3) In subsection (f) strike out "Agency for International Development" and substitute "agency primarily responsible for administering part I".

(b) Section 252, which relates to authorization, is amended as follows:

(1) In the first sentence, strike out "fiscal years 1963 through 1966, not to exceed $600,000,000 for each such fiscal year" and insert in lieu thereof "fiscal years 1963, 1965, and 1966, not to exceed $600,000,000 for each such fiscal year, and for use beginning in the fiscal year 1964, not to exceed $450,000,000,".

(2) Immediately after "1963" the second time it appears therein, insert the following: "and not to exceed $100,000,000 of the funds appropriated pursuant to this section for use beginning in fiscal year 1964.".

(c) Section 252, which relates to authorization, is amended by adding at the end thereof the following new sentence: "In order to effectuate the purposes and provisions of sections 102, 251, 601, and 602 of this Act, not less than 50 per centum of the loan funds appropriated pursuant to this section for the fiscal years ending June 30, 1965, and June 30, 1966, respectively, shall be available only for loans made for purposes of economic development through private enterprise."

Chapter 3-International organizations and

programs

SEC. 110. Section 302 of the Foreign Assistance Act of 1961, as amended, which relates to international organizations and programs, is amended by striking out "1963" and "$148,900,000" and substituting "1964" and "$136.050.000", respectively.

Chapter 4-Supporting assistance SEC. 111. Section 402 of the Foreign Assistance Act of 1961, as amended, which relates to supporting assistance, is amended by striking out "1963" and "$415,000,000" and substituting "1964" and "$380,000,000", respectively.

Chapter 5-Contingency fund

Sec. 112. Section 451 of the Foreign Assistance Act of 1961, as amended, which relates to the contingency fund, is amended by striking out "1963" and "$300,000,000" and inserting in lieu thereof "1964" and "$150,000,000", respectively.

PART II

Chapter 1-Policy

SEC. 201. Chapter 1 of part II of the Foreign Assistance Act of 1961, as amended, is hereby redesignated "POLICY" and section 501, which relates to short title, is hereby deleted.

SEC. 202. Chapter 2 of part II of the Foreign Assistance Act of 1961, as amended, which relates to military assistance, is amended as follows:

(a) In section 504(a), which relates to authorization, strike out "the fiscal years 1962 and 1963" and "$1,700,000,000 for each

such fiscal year, which sums" and substitute "fiscal year 1964" and "$1,000,000,000, which", respectively.

(b) In section 510(a), which relates to special authority, strike out "1963" in the first and second sentences and substitute "1964".

(c) At the end of such chapter, add the following new section:

"SEC. 512. RESTRICTIONS ON MILITARY AID TO AFRICA.-No military assistance shall be furnished on a grant basis to any country in Africa, except for internal security requirements or for programs described in section 505(b) of this chapter."

PART III

Chapter 1-General provisions SEC. 301. Section 601(b) of the Foreign Assistance Act of 1961, as amended, which relates to encouragement of private enterprise, is amended as follows:

(a) Strike out "and" at the end of paragraph (3).

(b) Strike out the period at the end of paragraph (4) and insert in lieu thereof a semicolon.

(c) At the end thereof add the following new paragraphs:

"(5) utilize, wherever practicable, the services of United States private enterprise (including, but not limited to, the services of experts and consultants in technical fields such as engineering); and

"(6) take appropriate steps to discourage nationalization, expropriation, confiscation, seizure of ownership or control of private investment and discriminatory or other actions having the effect thereof, undertaken by countries receiving assistance under this Act, which divert available resources essential to create new wealth, employment, and productivity in those countries and otherwise impair the climate for new private investimpair the climate for new private investment essential to the stable economic growth and development of those countries."

SEC. 302. Section 611(b) of the Foreign Assistance Act of 1961, as amended, which relates to completion of plans and cost estimates, is amended by striking out "circular A-47 of the Bureau of the Budget” and substituting "the Memorandum of the President dated May 15, 1962".

SEC. 303. Section 611, of the Foreign Assistance Act of 1961, as amended, which relates to completion of plans and cost estimates, is amended by adding to the end thereof the following subsection:

"(e) The President shall establish such procedures as he may deem necessary to assure to the maximum extent practicable all contracts for construction outside the United States made in connection with any agreement or grant subject to subsection (a) of this section shall be made in accordance with the same standards applicable to contracts made by the Federal Government for similar construction within the United States."

SEC. 304. Section 620 (a) of the Foreign Assistance Act of 1961, as amended, which relates to prohibitions against furnishing assistance to Cuba, is amended as follows:

(a) Insert “(1)" immediately after "(a)"; (b) Insert immediately after the second sentence thereof the following new sentence: "No funds provided under this Act shall be used to make any voluntary contribution to any international organization or program for financing projects of economic or technical assistance to the present Government of Cuba.".

(c) At the end thereof add the following new paragraphs:

"(2) Except as may be deemed necessary by the President in the interest of the United States, no assistance shall be furnished under this Act to any government of Cuba, nor shall Cuba be entitled to receive any quota authorizing the importation of Cuban sugar into the United States or to receive any other benefit under any law of the United States, until the President determines that such gov

ernment has taken appropriate steps according to international law standards to return to United States citizens, and to entities not less than 50 per centum beneficially owned by United States citizens, or to provide equitable compensation to such citizens and entities for property taken from such citizens and entities on or after January 1, 1959, by the Government of Cuba.

"(3) No funds authorized to be made available under this Act (except under section 214) shall be used to furnish assistance to any country which has failed to take appropriate steps, not later than 60 days after the date of enactment of the Foreign Assistance Act of 1963

"(A) to prevent ships or aircraft under its registry from transporting to Cuba (other

than to United States installations in Cuba) —

"(i) any items of economic assistance,

"(ii) any items which are, for the purposes of title I of the Mutual Defense Assistance Control Act of 1951, as amended, arms, ammunition and implements of war, atomic energy materials, petroleum, transportation materials of strategic value, or items of primary strategic significance used in the production of arms, ammunition, and implements of war, or

"(iii) any other equipment, materials, or commodities,

so long as Cuba is governed by the Castro regime; and

"(B) to prevent ships or aircraft under its registry from transporting any equipment, materials, or commodities from Cuba (other than from United States installations in Cuba) so long as Cuba is governed by the Castro regime."

SEC. 305. Section 620 (e) of the Foreign Assistance Act of 1961, as amended, which relates to suspension of assistance, is amended as follows:

(a) In clause (2), immediately after "operational conditions,", insert "or has taken other actions,”.

(b) Strike out "equitable and speedy compensation for such property in convertible foreign exchange" and insert in lieu thereof "speedy compensation for such property in convertible foreign exchange equivalent to the full value thereof".

SEC. 306. Section 620 (f) of the Foreign Assistance Act of 1961, as amended, which relates to prohibitions against furnishing certain assistance to Communist countries, is amended by inserting immediately before the period after "Union of Soviet Socialist Republics" the following: "(including its captive constituent republics)".

SEC. 307. Section 620 of the Foreign Assistance Act of 1961, as amended, which relates to prohibitions against furnishing assistance to Cuba and certain other countries, is amended by adding at the end thereof the following new subsections:

"(i) No assistance shall be provided under this or any other Act, and no sales shall be made under the Agricultural Trade Developcountry which the President determines is ment and Assistance Act of 1954, to any engaging in or preparing for aggressive military efforts directed against"(1) the United States, "(2) any country receiving receiving assistance under this or any other Act, or

"(3) any country to which sales are made under the Agricultural Trade Development and Assistance Act of 1954,

until the President determines that such

military efforts or preparations have ceased and he reports to the Congress that he has received assurances satisfactory to him that such military efforts or preparations will not be renewed. This restriction may not be waived pursuant to any authority contained in this Act.

"(j) No assistance under this Act shall be furnished to Indonesia unless the President

determines that the furnishing of such assistance is in the national interest of the United States. The President shall keep the Foreign Relations Committee and the Appropriations Committee of the Senate and the Speaker of the House of Representatives fully and currently informed of any assistance furnished to Indonesia under this Act. "(k) Until the enactment of the Foreign Assistance Act of 1964 or other general legislation, during the calendar year 1964, authorizing additional appropriations to carry out programs of assistance under this Act, no assistance shall be furnished under this Act to any country for construction of any productive enterprise with respect to which the aggregate value of such assistance to be furnished by the United States will exceed $100,000,000. No other provision of this Act shall be construed to authorize the President to waive the provisions of this subsection.

"(1) No assistance shall be provided under this Act after December 31, 1964, to the government of any less developed country which has failed to enter into an agreement with the President to institute the investment guaranty program under section 221 (b) (1) of this Act, providing protection against the specific risks of inconvertibility under subparagraph (A), and expropriation or confiscation under subparagraph (B), of such section 221(b)(1).

"(m) No assistance shall be furnished under this Act for the construction or operation of any productive enterprise in any country unless the President determines that similar productive enterprises within the United States are operating at a substantial portion of their capacity and that such assistance will not result in depriving such United States enterprises of their reasonable share of world markets. The President shall keep the Foreign Relations Committee and the Appropriations Committee of the Senate and the Speaker of the House of Representatives fully and currently informed of assistance furnished under this Act for

the construction or operation of productive enterprises in all countries, including specifically the numbers of such enterprises, the types of such enterprises, and the locations of such enterprises.

"(n) No assistance shall be furnished under section 201, 211, or 251 of this Act to the government of any country which does not agree to permit such reviews, inspections, and audits by the United States as the President may require for the purpose of ascertaining whether such assistance is being administered within the recipient country to carry out the purposes for which it was furnished."

Chapter 2-Administrative provisions SEC. 308. Chapter 2 of part III of the Foreign Assistance Act of 1961, as amended, which relates to administrative provisions, is amended as follows:

(a) In section 631, which relates to missions and staffs abroad, add the following new subsection (c):

"(c) The President may appoint any United States citizen who is not an employee of the United States Government or may assign any United States citizen who is a United States Government employee to serve as Chairman of the Development Assistance Committee or any successor committee thereto of the Organization for Economic Cooperation and Development upon election thereto by members of said Committee, and, in his discretion, may terminate such appointment or assignment, notwithstanding any other provision of law. Such person may receive such compensation and allowances as are authorized by the Foreign Service Act of 1946, as amended, not to exceed those authorized for a chief of mission, class 2, within the meaning of said Act, as the President may determine. Such persons may also, in the President's discretion, receive any other benefits and perquisites available under this Act to chiefs of special

missions or staffs outside the United States established under this section."

(b) Amend section 635, which relates to general authorities, by adding the following new subsection (k):

"(k) Any cost-type contract or agreement (including grants) entered into with a university, college, or other educational institution for the purpose of carrying out programs authorized by part I may provide for the payment of the reimbursable indirect costs of said university, college, or other educational institution on the basis of predetermined fixed-percentage rates applied to the total, or an element thereof, of the reimbursable direct costs incurred."

(c) Amend section 636, which relates to provisions on uses of funds, by adding at the end thereof the following new subsection:

"(h) In carrying out programs under this Act, the President shall take all appropriate steps to assure that, to the maximum extent possible, (1) countries receiving assistance under this Act contribute local currencies to meet the cost of contractual and other services rendered in conjunction with such programs, and (2) foreign currencies owned by the United States are utilized to meet the costs of such contractual and other services."

(f) Amend section 637(a), which relates to administrative expenses, by striking out "1963" and "$53,000,000" and substituting "1964" and "$54,000,000", respectively.

Chapter 3-Miscellaneous provisions SEC. 309. Section 644(f) of the Foreign Assistance Act of 1961, as amended, which relates to definition of defense services, is amended by inserting "including orientation" after "training" the first time it appears.

SEC. 310. Section 645 of the Foreign Assistance Act of 1961, as amended, which relates to unexpended balances, is amended to read as follows:

"SEC. 645. UNEXPENDED BALANCES.--Unex

pended balances of funds made available pursuant to this Act, the Mutual Security Act of 1954, as amended, or Public Law 86-736 are hereby authorized to be continued available for the general purposes for which appropriated, and may at any time be consolidated, and, in addition, may be consolidated with appropriations made available for the same general purposes under the authority of this Act."

PART IV-AMENDMENTS TO OTHER LAWS SEC. 401. The Act to provide for assistance in the development of Latin America and in the reconstruction of Chile, and for other purposes (Public Law 86–735, 22 U.S.C. 1942 et seq.), is amended as follows:

(a) In section 2 strike out "$500,000,000" and substitute "$700,000,000.”

(b) Insert following the enacting clause "That this Act may be cited as 'the Latin and Chilean ReAmerican Development construction Act'".

SEC. 402. (a) Section 101 (f) of the Agricultural Trade Development and Assistance Act of 1954, as amended, is amended to read as follows:

"(f) obtain rates of exchange applicable to the sale of commodities under such agreements which are not less favorable than the highest of exchange rates legally obtainable from the Government or agencies thereof in the respective countries."

(b) Section 105 of such Act is amended by adding at the end thereof the following new sentence: "The President shall utilize foreign currencies received pursuant to this title in such manner as will, to the maximum extent possible, reduce any deficit in the balance of payments of the United States."

(c) Section 202 of such Act is amended by striking out "economic development" and inserting in lieu thereof "economic and community development”.

(b) Section 911(2) of the Foreign Service Act of 1946, as amended, is amended by inserting immediately after "on authorized home leave;" the following: "accompanying him for representational purposes on authorized travel within the country of his assignment or, at the discretion of the Secretary, outside the country of his assignment, but in no case to exceed one member of his family;".

(c) Title IX of the Foreign Service Act of 1946, as amended, is amended by striking out section 921(d), relating to use of Government vehicles, and by inserting immediately after section 913 the following new section:

"USE OF GOVERNMENT OWNED OR LEASED

VEHICLES

"SEC. 914. Notwithstanding the provisions of section 5 of the Act of July 16, 1914, as amended (5 U.S.C. 78), the Secretary may authorize any principal officer to approve the use of Government owned or leased vehicles located at his post for transportation of United States Government employees and their dependents when public transportation is unsafe or not available."

(d) Title X of the Foreign Service Act of 1946, as amended, is amended by adding at the end thereof the following:

PART I-EDUCATIONAL FACILITIES "SEC. 1081. Whenever the Secretary determines that educational facilities are not available, or that existing educational facilities are inadequate, to meet the needs of children of American citizens stationed outside the United States engaged in carrying out Government activities, he is authorized, in such manner as he deems appropriate and under such regulations as he may prescribe, to establish, operate, and maintain primary schools, and school dormitories and related educational facilities for primary and secondary schools, outside the United States, or to make grants of funds for such purposes, or otherwise provide for such educational facilities. The provisions of the Foreign Service Buildings Act, 1926, amended, and of paragraphs (h) and (i) of section 3 of the Act entitled 'An Act to provide certain basic authority for the Department of State', approved August 1, 1956 (5 U.S.C. 170h (h) and 170h (i)), may be utilized by the Secretary in providing assistance for educational facilities. Assistance may include, but shall not be limited to, hiring, transporting, and payment of teachers and other necessary personnel."

SEC. 404. The Act entitled "An Act to provide certain basic authority for the Department of State", approved August 1, 1956 (5 U.S.C. 170f-170t), is amended by inserting immediately after section 12 the following new section:

"SEC. 13. There is hereby established a working capital fund for the Department of State, which shall be available without fiscal year limitation, for expenses (including those authorized by the Foreign Service Act of 1946, as amended) and equipment, necessary for maintenance and operation in the city of Washington and elsewhere of (1) central reproduction, editorial, data processing, audiovisual, library and administrative support services; (2) central supply services for supplies and equipment (including repairs), and (3) such other administrative services as the Secretary, with the approval of the Bureau of the Budget, determines may be performed more advantageously and more economically as central services. The capital of the fund shall consist of the amount of the fair and reasonable value of such supply inventories, equipment,

and other assets and inventories on order, pertaining to the services to be carried on by the fund, as the Secretary may transfer to the fund, less the related liabilities and unpaid obligations, together with any appropriations made for the purpose of providing capital. Not to exceed $750,000 in net assets shall be transferred to the fund for purposes of providing capital. The fund shall be reimbursed, or credited with advance payments, from applicable appropriations and funds of the Department of State, other Federal agencies, and other sources authorized by law, for supplies and services at rates which will approximate the expense of operations, including accrual of annual leave and depreciation of plant and equipment of the fund. The fund shall also be credited with other receipts from sale or exchange of property or in payment for loss or damage to property held by the fund. There shall be transferred into the Treasury as miscellaneous receipts, as of the close of each fiscal year, earnings which the Secretary determines to be excess to the needs of the fund. There is hereby authorized to be appropriated such amounts as may be necessary to provide capital for the fund."

SEC. 405. The first sentence of the first section of the Act entitled "An Act to authorize participation by the United States in parliamentary conferences of the North Atlantic Treaty Organization", approved July 11, 1956 (70 Stat. 523), is amended to read as follows: "That not to exceed eighteen Members of Congress shall be appointed to meet jointly and annually with representative parliamentary groups from other NATO (North Atlantic Treaty Organization) members, for discussion of common problems in the interests of the maintenance of peace and security in the North Atlantic area."

The PRESIDING OFFICER. The

question is on agreeing to the amendment, as modified, offered by the Senator from Oregon [Mr. MORSE] to the committee amendment in the nature of a substitute. The yeas and nays have been ordered, and the clerk will call the roll.

The legislative clerk called the roll. Mr. HUMPHREY. I announce that I announce that the Senator from New Mexico [Mr. ANDERSON], the Senator from Pennsylvania [Mr. CLARK], the Senator from Louisiana [Mr. ELLENDER], the Senator from Tennessee [Mr. GORE], the Senator from Alaska [Mr. GRUENING], the Senator from Washington [Mr. JACKSON], the Senator from Louisiana [Mr. LONG], the Senator from Washington [Mr. MAGNUSON], the Senator from South Dakota [Mr. McGOVERN], the Senator from Florida [Mr. SMATHERS], the Senator from Mississippi [Mr. STENNIS], the Senator from Tennessee [Mr. WALTERS], and the Senator from New Jersey [Mr. WILLIAMS] are absent on official business.

I further announce that the Senator from California [Mr. ENGLE] is absent due to illness.

I further announce that, if present and voting, the Senator from New Mexico [Mr. ANDERSON], the Senator from Pennsylvania [Mr. CLARK], the Senator from Tennessee [Mr. GORE], and the Senator from South Dakota [Mr. McGOVERN] would each vote "nay."

On this vote, the Senator from Louisiana [Mr. ELLENDER] is paired with the Senator from California [Mr. ENGLE]. If present and voting, the Senator from Louisiana would vote "yea" and the Senator from California would vote "nay."

On this vote, the Senator from Alaska [Mr. GRUENING] is paired with the Senator from Washington [Mr. JACKSON]. If present and voting, the Senator from Alaska would vote "yea" and the Senator from Washington would vote "nay." On this vote, the Senator from Louisiana [Mr. LONG] is paired with the Senator from Washington [Mr. MAGNUSON]. If present and voting, the Senator from Louisiana would vote "yea" and the Senator from Washington would vote "nay."

On this vote, the Senator from Mississippi [Mr. STENNIS] is paired with the Senator from Florida [Mr. SMATHERS]. If present and voting, the Senator from Mississippi would vote "yea" and the Senator from Florida would vote "nay."

On this vote, the Senator from Tennessee [Mr. WALTERS] is paired with the Senator from New Jersey [Mr. WILLIAMS). If present and voting, the Senator from Tennessee would vote "yea" and the Senator from New Jersey would vote "nay."

Mr. KUCHEL. I announce that the Senators from Nebraska [Mr. CURTIS and Mr. HRUSKA] are absent on official business.

The Senator from Kentucky [Mr. Kentucky [Mr. MORTON] is necessarily absent.

If present and voting, the Senator from Nebraska [Mr. HRUSKA] Would vote "yea."

On this vote, the Senator from Nebraska [Mr. CURTIS] is paired with the Senator from Kentucky [Mr. MORTON]. If present and voting, the Senator from Nebraska would vote "yea" and the Senator from Kentucky would vote "nay."

The result was announced-yeas 15, nays 68, as follows:

The motion to lay on the table was agreed to.

Mr. MILLER. Mr. President, I have an amendment at the desk. I ask that it be read.

The PRESIDING OFFICER. The amendment will be stated.

The legislative clerk read as follows: On page 54, after line 4, it is proposed to insert the following:

"SEC. 404. Section 2 of the Act of July 31,

1945, as amended (22 U.S.C. 279a), is amended by inserting after the words 'such sums' a comma and the following: 'not to

exceed $5 million annually.'”

Mr. MILLER.

Mr. President, 2 years

ago, Congress removed the ceiling limitation of $3 million annually for the U.S._contribution to the operations of the Food and Agriculture Organization. The purpose of my amendment is to add to the bill a new section which would restore a limitation, not of $3 million, but of $5 million. The reason is that if a limitation is not restored, I fear that this item will get out of control. I am speaking particularly about the administrative situation, for that is what my amendment relates to. It has nothing to do with the freedom-from-hunger campaign of the Food and Agriculture Organization, to which we contribute many millions of dollars worth of our surplus commodities.

Since the removal of the dollar limitation of $3 million a year, for the years 1962 and 1963, the amount was increased to $4,591,668. It is now proposed, in the new budget which is being considered, after raising our contribution by $1,500,000 for each of the past 2 years, to raise the contribution another $1,300,000 for the next 2 years. I suggest that this practice will continue unless we do something in the nature of restoring the dollar limitation.

The House Committee on Appropriations has already sent to the Senate a bill proposing an appropriation of $4,591,000 for for the next year. My amendment would place the dollar limitation at $5 million. I suggest that this would provide ample room within which the Senate Committee on Appropriations could work.

Mr. MORSE. Mr. President, will the Senator from Iowa yield?

Mr. MILLER. I yield to the Senator for Oregon.

Mr. MORSE. Would the effect of the Senator's amendment be to increase the amount of authorization in the bill?

Mr. MILLER. No, it would not, because there is no dollar authorization limitation in the present law or in the bill. We removed completely the authorization limitation of $3 million 2 years ago.

Mr. FULBRIGHT. Mr. President, I have conferred with the Senator from Iowa amendment. about the The amendment was not presented to the committee. I am not completely satisfied as to its meaning; but as it has been explained to me by the Senator from Iowa, I am quite content to take the amendment to conference, if nothing serious develops in opposition to it. If it does, as I have explained to the Senator, I could make no promises about it, because I have had no opportunity to