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S. 3394 (93rd): Foreign Assistance Act

The Foreign Assistance Act of 1974 (Public law 93-559) , was an act of the 93rd United States Congress that added several amendments to the Foreign Assistance Act of 1961. Perhaps most famously, the act introduced an amendment that effectively eliminated aid and military funding for South Vietnam. Direct US involvement in Vietnam was already prohibited under the Case–Church Amendment, and the termination of US funding and indirect support for South Vietnam was a significant factor leading up to the Fall of Saigon.

This summary is from Wikipedia.

Last updated Oct 11, 2018. Source: Wikipedia

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress, and was published on Dec 30, 1974.

(LATEST SUMMARY) Foreign Assistance Act - Increases the authorization of appropriations to $500,000,000 for food and nutrition for fiscal year 1975. Directs that special attention be given to increasing agricultural production in countries with a per capita income under $300. Places a ceiling on fertilizers to South Vietnam. Authorizes appropriations for fiscal year 1975 for population planning and education and human resources development. Prohibits the use by the Agency for International Development of scheduled loan receipts after July 1, 1975. Raises the worldwide housing guaranty ceiling from $305,000,000 to $355,000,000. Adds Title III (Housing and Other Credit Guaranty Programs) to the Foreign Assistance Act of 1961, transferring the Agricultural and Productive Credit and Self-Help Community Development Program from the Overseas Private Investment Corporation to the Agency for International Development. Authorizes appropriations for fiscal year 1975 for international organizations and programs, earmarking $500,000 of the funds for the International Atomic Energy Agency and requiring that a reasonable amount of the funds be used to strengthen procedures to prevent unauthorized use of nuclear materials. Provides a $600,000,000 authorization for military assistance programs for fiscal year 1975, earmarking $300,000,000 in military credit sales for Israel and releasing Israel from the liability to repay $100,000,000 worth of defense articles or services so financed. Imposes a ceiling of $150,000,000 for fiscal year 1975 on the President's special drawdown authority with regard to the stocks of the Departments of Defense in security matters. Provides that after June 30, 1976, no military assistance shall be furnished to South Vietnam unless authorized under the Foreign Assistance Act of 1961 or the Foreign Military Sales Act. Sets a ceiling on the use of excess defense articles that can be furnished to foreign countries, requiring that such articles be expressed in terms of acquisition costs. Prohibits the stockpiling of defense articles for war reserves for foreign countries with any funds other than those authorized by the Foreign Assistance Act of 1961 or in the case of Vietnam, the Military Procurement Act of 1966. Requires that all military mission costs presently included in the Department of Defense budget be chargeable to the military assistance appropriation effective July 1, 1976. Provides for a review of specified military assistance programs and directs the President to submit a plan for the reduction and eventual elimination of such programs. Limits the aggregate amount of military assistance, excess defense articles, and sales credits to South Korea to $145,000,000 in fiscal year 1975 unless the President reports to Congress that the Government of South Korea has made substantial progress in the observance of international standards of human rights. Authorizes $660,000,000 for security supporting assistance for fiscal year 1975, allowing $324,500,000 for Israel, $250,000,000 for Egypt, and $77,500,000 for Jordan. Suspends all military assistance and sales to Turkey upon enactment of this Act, allowing the President to lift the suspension until February 5, 1975 if it will further negotiations for solution of the Cyprus conflict and if Turkey will observe the ceasefire and not increase its forces or implements of war. Permits the President to waive the prohibition on assistance to countries trading with North Vietnam. Limits the funds that could be used for assistance to Chile to $25,000,000 in fiscal year 1975, none of which may be used to finance military assistance, credits or guaranties. Authorizes the appropriation of $40,000,000 for famine and disaster relief in fiscal year 1975, earmarking $25,000,000 for Cyprus. Reduces the authorization for the contingency fund from $30,000,000 to $5,000,000 and prohibits its use to pay for gifts to officials of any foreign government. Terminates the authority to conduct police training, effective June 30, 1975, with exceptions relating to international narcotics control. States that no funds may be expended by the Central Intelligence Agency for operations in foreign countries, other than those intended solely for obtaining necessary intelligence, unless the President makes specified findings and reports to specified Congressional committees. Sets forth an Indochina policy statement directing the President to take specified measures in bringing peace to Indochina. Prescribes the principles governing economic aid to Indochina and authorizes appropriations for Indochina postwar reconstruction. Increases the appropriation for assistance programs to South Vietnamese children. Provides for assistance to: (1) South Vietnam; (2) Cambodia; and (3) Laos. Provides for the allocation of Middle East assistance. Places a prohibition on the use of funds for nuclear aid. Requires, under the Foreign Military Sales Act, that the President report on any single sale of defense articles or services which exceeds $25,000,000 30 days prior to the conclusion of any agreement to sell, and permits the disapproval of such transaction by a concurrent resolution. Expresses the sense of Congress that the President should substantially reduce or terminate security assistance to any government which engages in a consistent pattern of gross violations of human rights. Expresses statements of policy on: (1) assistance to Africa; and (2) the independence of Angola, Mozambique, and Guinea-Bissau. Requests the President to instruct each United States representative to an international organization to operate in a manner to encourage and promote the integration of women into national economies. Authorizes the President to furnish assistance in exchange for raw materials where such assistance is in the U.S. national interest.