Page:United States Statutes at Large Volume 71.djvu/393

 71 S T A T. ]

PUBLIC LAW 85-141-AUG. 14, 1957

357

(c) Add a new section 144 as follows: "SEC. 144. SOUTHEAST ASIA.—Assistance under this title shall be southeast Asia, made available subject to the provisions of sections 141 and 142, except that (1) in the case of assistance to the Associated States of Cambodia, Laos, and Vietnam, and (2) in the case of assistance (not to exceed in the aggregate 10 per centum of the amount appropriated pursuant to section 121, excluding unexpended balances of prior appropriations) to other nations in the area of southeast Asia, the President may waive specific provisions of section 142 to the extent he may deem necessary in the national interest to carry out the purposes of this Act. The President or such officer as he may designate shall report Report, each instance of such waiver to the Foreign Relations, Appropriations, and Armed Services Committees of the Senate and the Speaker of the House of Representatives within thirty days." e elop SEC. 6. Title II of the Mutual Security Act of 1954, as amended, L oD n vFund. m e n t a which relates to development assistance, is further amended by striking out the heading of the title " DEVELOPMENT A S S I S T A N C E ", and substituting " DEVELOPMENT L O A N F U N D "; by striking out the section number and heading of section 201 and striking out subsections (a) and (b) of section 201; by redesignating subsection (c) 2 2%^sr^i8^^i" of section 201 as subsection (d) of section 537 and striking out therein 1797. "this title" and "411 (c) " and substituting, respectively, "section 400 (a) " and "411 (b) "; and by inserting the following new sections: "SEC. 201. DECLARATION or PURPOSE.—The Congress of the United P^njose. States recognizes that the progress of free peoples in their efforts to further their economic development, and thus to strengthen their freedom, is important to the security and general welfare of the United States. The Congress further recognizes the necessity in some cases of assistance to such peoples if they are to succeed in these efforts. The Congress accordingly reaffirms that it is the policy of the United States, and declares it to be the purpose of this title, to strengthen friendly foreign countries by encouraging the development of their economies through a competitive free enterprise system; to minimize or eliminate barriers to the flow of private investment capital and international trade; to facilitate the creation of a climate favorable to the investment of private capital; and to assist, on a basis of selfhelp and mutual cooperation, the efforts of free peoples to develop their economic resources and to increase their productive capabilities. "SEC. 202. GENERAL AUTHORITY.—(a) There is hereby established Establishment, a fund to be known as the 'Development Loan Fund' (hereinafter referred to in this title as 'the Fund') to be used by the President to finance activities carried out pursuant to authority contained in this title. " (b) To carry out the purposes of this title, the President is hereby authorized to make loans, credits, or guaranties, or to engage in other financing operations or transactions (not to include grants or direct purchases of equity securities), to or with such nations, organizations, persons or other entities, and on such terms and conditions, as he may determine, taking into account (1) whether financing could be obtained in whole or in part from other free world sources on reasonable terms, (2) the economic and technical soundness of the activity to be financed, and (3) whether the activity gives reasonable promise of contributing to the development of economic resources or to the increase of productive capacities in furtherance of the purposes of this title. Loans shall be made from the Fund only on the basis of firm commitments by the borrowers to make repayment and upon a finding that there are reasonable prospects of such repayment. The Fund shall be administered so as to support and encourage private investment and other private participation furthering the purposes of this title, and

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