380
PUBLIC LAW 88-205-DEC. 16, 1963
[77 STAT.
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." (6) Immediately after the last paragraph, add the following new paragraph: " I t is the sense of the Congress that assistance authorized by this Act should be extended to or withheld from the government of South Vietnam, in the discretion of the President, to further the objectives of victory in the war again communism and the return to their homeland of Americans involved in that struggle." CHAPTER 2—DEVELOPMENT ASSISTANCE
TITLE I—^DEVELOPMENT LOAN FUND
75 Stat. 426;
22 USC 2165.
22 USC 2162.
22 USC 215 1, 2 16 1, 235 1, 2352.
SEC. 102. Title I of chapter 2 of part I of the Foreign Assistance Act of 1961, as amended, which relates to the development loan fund, is amended as follows: (a) Amend section 201, which relates to general authority, as (1) I n the second sentence of subsection (b), which relates to considerations to be taken into account in making loans from the development loan fund, 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,". (2) Subsection (d), which relates to interest rates on development loans, is amended by inserting immediately after "in no event" the following: "shall such funds (except funds loaned under section 205 and funds which prior to the date of enactment of the Foreign Assistance Act of 1963 were authorized or committed to be loaned upon terms which do not meet the minimum terms set forth herein) be loaned at a rate of interest of less than 2 per centum per annum commencing not later than ten years following the date on which the funds are initially made available under the loan, during which ten-year period the rate of interest shall not be lower than three-fourths of 1 per centum per annum, nor". (3) Add the following new subsection (f): "(f) No assistance shall be furnished under this title for a project unless the President determines that such project will promote the economic development of the requesting country, taking into account the current human and material resource requirements of that country and the relationship between the ultimate objectives of the project and the overall economic development of the country, and that such project specifically provides for appropriate participation by private enterprise." (b) Amend section 202(a), which relates to authorizations for the development loan fund, as follows: (1) Strike out "and $1,500,000,000 for each of the next four succeeding fiscal years," and insert in lieu thereof ", $1,500,000,000 for the fiscal year 1963, $925,000,000 for the fiscal year 1964, and $1,500,000,000 for each of the next two succeeding fiscal years,". (2) Immediately before the.period at the end thereof insert 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 pur-
�
