Page:United States Statutes at Large Volume 73.djvu/286

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PUBLIC LAW 86-108-JULY 24, 1959

[73 S T A T.

for furnisliing military assistance to American Republics shall not exceed the aggregate amount of funds obligated or reserved for such purpose during the fiscal year 1959." (2) Add the following new paragraph: "(5) To the extent feasible and consistent with the other purposes of this chapter, administrators of the military assistance program shall encourage the use of foreign military forces in underdeveloped countries in the construction of public works and other activities helpful to economic development." CHAPTER II — E C O N O M I C ASSISTANCE DEFENSE SUPPORT

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^^^- 2^1- Section 131(b) of the Mutual Security Act of 1954, as amended, which relates to defense support, is amended by striking out "1959" and "$810,000,000" and substituting "1960" and "$751,000,000", respectively. UTILIZATION OF COUNTERPART F U N D S

22 USC 1852.

SEC. 202. Clause (iii) of section 142(b) of the Mutual Security Act of 1954, as amended, which relates to utilization of funds in Special Accounts, is amended by inserting immediately before the period at the end thereof the following: ": Provided further, That whenever funds from such Special Account are used by a country to make loans, all funds received in repayment of such loans prior to termination of assistance to such country shall be reused only for such purposes as shall have been agreed to between the country and the Government of the United States". DEVELOPMENT LOAN

FUND

SEC. 203. Title II of chapter II of the Mutual Security Act of 1954, as amended, which relates to the Development Loan Fund, is amended as follows: 7rStat. 357; 72 (a) Amend section 202(b), which relates to general authority, as 22* u s e 1872.

22 xjsciif3.

follows:

(1) Insert the following sentence immediately after the second sentence: "The F u n d in its operations shall recognize that development loan assistance will be most effective in those countries which show a responsiveness to the vital long-term economic, political, and social concerns of their people, demonstrate a clear willingness to take effective self-help measures, and effectively demonstrate that such assistance is consistent with, and makes a contribution to, workable long-term economic development objectives." (2) I n the next to last sentence, immediately before the period at the end thereof, insert the following: "nor shall the fractional reserve maintained by the Development L<oan Fund for any guaranty made pursuant to this section be less in any case than 50 per centum of the contractual liability of the Development Loan Fund under such guaranty, and the total contractual liability of the Development Loan F u n d under all of such guaranties shall not, at any one time, exceed $100,000,000". (b) Amend section 203, which relates to capitalization, to read as follows: "SEC. 203. CAPITALIZATION.—There is hereby authorized to be approriated to the President at any time after enactment of the Miitual ecurity Act of 1959 without fiscal year limitation for advances to the Fund after June 30, 1959, not to exceed $1,800,000,000 of which not to

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