
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 22USC2351]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 32--FOREIGN ASSISTANCE
 
          SUBCHAPTER III--GENERAL AND ADMINISTRATIVE PROVISIONS
 
                       Part I--General Provisions
 
Sec. 2351. Encouragement of free enterprise and private 
        participation
        

(a) Policy of United States

    The Congress of the United States recognizes the vital role of free 
enterprise in achieving rising levels of production and standards of 
living essential to economic progress and development. Accordingly, it 
is declared to be the policy of the United States to encourage the 
efforts of other countries to increase the flow of international trade, 
to foster private initiative and competition, to encourage the 
development and use of cooperatives, credit unions, and savings and loan 
associations, to discourage monopolistic practices, to improve the 
technical efficiency of their industry, agriculture, and commerce, and 
to strengthen free labor unions; and to encourage the contribution of 
United States enterprise toward economic strength of less developed 
friendly countries, through private trade and investment abroad, private 
participation in programs carried out under this chapter (including the 
use of private trade channels to the maximum extent practicable in 
carrying out such programs), and exchange of ideas and technical 
information on the matters covered by this subsection.

(b) Action by President to facilitate participation to maximum extent

    In order to encourage and facilitate participation by private 
enterprise to the maximum extent practicable in achieving any of the 
purposes of this chapter, the President shall--
        (1) make arrangements to find, and draw the attention of private 
    enterprise to, opportunities for investment and development in less-
    developed friendly countries and areas;
        (2) establish an effective system for obtaining adequate 
    information with respect to the activities of, and opportunities 
    for, nongovernmental participation in the development process, and 
    for utilizing such information in the planning, direction, and 
    execution of programs carried out under this chapter, and in the 
    coordination of such programs with the ever-increasing developmental 
    activities of nongovernmental United States institutions;
        (3) accelerate a program of negotiating treaties for commerce 
    and trade, including tax treaties, which shall include provisions to 
    encourage and facilitate the flow of private investment to, and its 
    equitable treatment in, friendly countries and areas participating 
    in programs under this chapter;
        (4) seek, consistent with the national interest, compliance by 
    other countries or areas with all treaties for commerce and trade 
    and taxes, and take all reasonable measures under this chapter or 
    other authority to secure compliance therewith and to assist United 
    States citizens in obtaining just compensation for losses sustained 
    by them or payments exacted from them as a result of measures taken 
    or imposed by any country or area thereof in violation of any such 
    treaty;
        (5) to the maximum extent practicable carry out programs of 
    assistance through private channels and to the extent practicable in 
    conjunction with local private or governmental participation, 
    including loans under the authority of section 2151t of this title 
    to any individual, corporation, or other body of persons;
        (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 chapter, which divert available resources essential to create 
    new wealth, employment, and productivity in those countries and 
    otherwise impair the climate for new private investment essential to 
    the stable economic growth and development of those countries;
        (7) 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
        (8) utilize wherever practicable the services of United States 
    private enterprise on a cost-plus incentive fee contract basis to 
    provide the necessary skills to develop and operate a specific 
    project or program of assistance in a less developed friendly 
    country or area in any case in which direct private investment is 
    not readily encouraged, and provide where appropriate for the 
    transfer of equity ownership in such project or program to private 
    investors at the earliest feasible time.

(c) International Private Investment Advisory Council on Foreign Aid; 
        establishment; composition; selection of members by 
        Administrator; duration of service; Chairman; duties of Council; 
        compensation; travel and other expenses; funds for payment of 
        expenses of Council

    (1) There is hereby established an International Private Investment 
Advisory Council on Foreign Aid to be composed of such number of leading 
American business specialists as may be selected, from time to time, by 
the Administrator of the Agency for International Development for the 
purpose of carrying out the provisions of this subsection. The members 
of the Council shall serve at the pleasure of the Administrator, who 
shall designate one member to serve as Chairman.
    (2) It shall be the duty of the Council, at the request of the 
Administrator, to make recommendations to the Administrator with respect 
to particular aspects of programs and activities under this chapter 
where private enterprise can play a contributing role and to act as 
liaison for the Administrator to involve specific private enterprises in 
such programs and activities.
    (3) The members of the Advisory Council shall receive no 
compensation for their services but shall be entitled to reimbursement 
in accordance with section 5703 of title 5 for travel and other expenses 
incurred by them in the performance of their functions under this 
subsection.
    (4) The expenses of the Advisory Council shall be paid by the 
Administrator from funds otherwise available under this chapter.

(d) Engineering and professional services of United States firms

    It is the sense of Congress that the Agency for International 
Development should continue to encourage, to the maximum extent 
consistent with the national interest, the utilization of engineering 
and professional services of United States firms (including, but not 
limited to, any corporation, company, partnership, or other association) 
or by an affiliate of such United States firms in connection with 
capital projects financed by funds authorized under this chapter.

(e) Contracts on basis of competitive selection procedures

    (1) The Congress finds that significantly greater effort must be 
made in carrying out programs under subchapter I of this chapter to 
award contracts on the basis of competitive selection procedures. All 
such contracts should be let on the basis of competitive selection 
procedures except in those limited cases in which the procurement 
regulations governing the agency primarily responsible for administering 
subchapter I of this chapter allow noncompetitive procedures to be used.
    (2) Repealed. Pub. L. 97-113, title VII, Sec. 734(a)(1), Dec. 29, 
1981, 95 Stat. 1560.

(Pub. L. 87-195, pt. III, Sec. 601, Sept. 4, 1961, 75 Stat. 438; Pub. L. 
88-205, pt. III, Sec. 301(a), (b), Dec. 16, 1963, 77 Stat. 385; Pub. L. 
88-633, pt. III, Sec. 301(a), (b), Oct. 7, 1964, 78 Stat. 1012; Pub. L. 
89-583, pt. III, Sec. 301(a), Sept. 19, 1966, 80 Stat. 803; Pub. L. 90-
137, pt. III, Sec. 301(a), Nov. 14, 1967, 81 Stat. 458; Pub. L. 95-424, 
title I, Sec. 102(g)(2)(B), title V, Sec. 501, Oct. 6, 1978, 92 Stat. 
942, 956; Pub. L. 97-113, title VII, Sec. 734(a)(1), Dec. 29, 1981, 95 
Stat. 1560.)

                       References in Text

    This chapter, referred to in subsecs. (b) and (d), was in the 
original ``this Act'', meaning Pub. L. 87-195, Sept. 4, 1961, 75 Stat. 
424, as amended, known as the Foreign Assistance Act of 1961. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 2151 of this title and Tables.


References to Subchapter I Deemed To Include Certain Parts of Subchapter 
                                   II

    References to subchapter I of this chapter are deemed to include 
parts IV (Sec. 2346 et seq.), VI (Sec. 2348 et seq.), and VIII 
(Sec. 2349aa et seq.) of subchapter II of this chapter, and references 
to subchapter II are deemed to exclude such parts. See section 202(b) of 
Pub. L. 92-226, set out as a note under section 2346 of this title, and 
sections 2348c and 2349aa-5 of this title.


                               Amendments

    1981--Subsec. (e)(2). Pub. L. 97-113 struck out par. (2) which 
required reports to Congress on Agency for International Development 
contracts over $100,000 entered into without competitive selection. See 
section 2394(a)(2)(F) of this title.
    1978--Subsec. (b)(5). Pub. L. 95-424 substituted ``section 2151t'' 
for ``section 2161''.
    Subsec. (e). Pub. L. 95-424 added subsec. (e).
    1967--Subsec. (c)(3). Pub. L. 90-137 substituted reference to 
section 5703 for former section 73b-2 of title 5.
    1966--Subsec. (b)(2) to (8). Pub. L. 89-583, Sec. 301(a)(1)-(3), 
added par. (2), redesignated former pars. (2) to (6) as (3) to (7), 
respectively, and added par. (8).
    Subsec. (c). Pub. L. 89-583, Sec. 301(a)(4), substituted provisions 
relating to International Private Investment Advisory Council on Foreign 
Aid for former provisions relating to Advisory Committee on Private 
Enterprise in Foreign Aid.
    1964--Subsec. (c)(4). Pub. L. 88-633, Sec. 301(a), substituted 
``June 30, 1965'' for ``December 31, 1964''.
    Subsec. (d). Pub. L. 88-633, Sec. 301(b), added subsec. (d).
    1963--Subsec. (b). Pub. L. 88-205, Sec. 301(a), substituted ``to the 
maximum extent practicable'' for ``wherever appropriate'' in par. (4), 
and added pars. (5) and (6).
    Subsec. (c). Pub. L. 88-205, Sec. 301(b), added subsec. (c).


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-424 effective Oct. 1, 1978, see section 605 
of Pub. L. 95-424, set out as a note under section 2151 of this title.

                         Delegation of Functions

    For delegation of functions of President under this section, see Ex. 
Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a 
note under section 2381 of this title.


                     Termination of Advisory Council

    Advisory council in existence on Jan. 5, 1973, to terminate not 
later than the expiration of the 2-year period following Jan. 5, 1973, 
unless, in the case of a council established by the President or an 
officer of the Federal Government, such council is renewed by 
appropriate action prior to the expiration of such 2-year period, or in 
the case of a council established by the Congress, its duration is 
otherwise provided by law. See sections 3(2) and 14 of Pub. L. 92-463, 
Oct. 6, 1972, 86 Stat. 770, 776, set out in the Appendix to Title 5, 
Government Organization and Employees.
