International. Development and Security Assistance Letter to the Speaker of the House and the President of the Senate Transmitting Proposed Legislation.

Dear Mr. Speaker: (Dear Mr. President:)

I herewith transmit a bill to authorize international development and security assistance programs for the fiscal years 1981 and 1982. The programs authorized by this bill are essential for an effective United States contribution to the reduction of hunger, poverty, and other developmental problems of the peoples of the less-developed countries. The United States economy and our political and economic leadership will be enhanced by the bill's programs. The bill will also provide for the achievement of a secure international environment, and for the attainment of our own foreign policy and security goals in a greatly troubled world. Through these programs, the United States assists friendly and allied nations in fostering their economic development and progress, in acquiring and maintaining the capability for their own defense, and in addressing political, military, and economic crises.

This year I am transmitting a single bill, incorporating authorizations for both development and security assistance. Title I of the bill consists of amendments to the Foreign Assistance Act of 1961 and to the International Development Cooperation Act of 1979. It includes all the fiscal year 1981 authorizations for the development assistance programs and related activities provided for in those statutes. Title I also includes fiscal year 1981 authorizations for the economic support fund. In addition, this title provides fiscal year 1981 authorization for peacekeeping operations, disaster assistance, international narcotics control, military assistance and grant military training programs carried out under the Foreign Assistance Act of 1961. Title II consists of fiscal year 1981 authorizations for programs and related activities under the Arms Export Control Act. Title III comprises provisions applicable to the bill as a whole, including the fiscal year 1982 authorizations required by the Congressional Budget Act of 1974.

In addition to authorizations of appropriations, the bill makes certain substantive changes to the statutory authorities under which development and security assistance programs are carried out. With respect to development assistance programs, these changes include a clarification of the applicability to United States support for private and voluntary organizations of statutory limitations on assistance programs, and a provision giving powers of subpoena to the Auditor General of the Agency for International Development. Insofar .as security assistance is concerned, the bill amends the Arms Export Control Act to establish a separate authority for the sale of military design and construction services to foreign countries and international organizations, reflecting the essential difference in nature between such sales and other sales of defense articles and services under the Foreign Military Sales (FMS) program.

Developments over the past year, and in particular in recent months, have underscored perhaps more than ever before the importance of affording the President the ability to employ, promptly and effectively, foreign assistance to meet unforeseen foreign policy and security emergencies. As a consequence, the bill contains a number of provisions to this end. The authorization of fiscal year 1981 appropriations for the economic support fund includes $50,000,000 unallocated to any particular program and activity, and which would be available to meet currently unexpected situations where the provision of economic support fund assistance would be appropriate in furtherance of the national interests of the United States. The difficulties and delays occasioned by the need to reprogram such assistance from planned country programs over the past year indicates the importance and usefulness of such an unallocated amount under the economic support fund. The bill would also make available a comparable amount for military contingencies by increasing from $10 million to $50 million the scope of the President's emergency authority to draw upon the Department of Defense for military assistance in a fiscal year.

In addition, the bill makes the special authority of section 614(a) of the Foreign Assistance Act of 1961, as amended, applicable to programs under the Arms Export Control Act, and to "free-standing" provisions of law contained in annual development and security assistance authorization acts. This change restores the scope of the President's authority under section 614(a) as it existed prior to 1968, when the military sales provisions of the Foreign Assistance Act of 1961 were removed from that act and included in the Foreign Military Sales Act (now the Arms Export Control Act). As a consequence, this change removes an anomaly from present law, whereby the President may use his authority under section 614(a) to authorize grants under the Foreign Assistance Act of 1961, but not sales or financing under the Arms Export Control Act.

The bill also amends the Arms Export Control Act to eliminate the requirements for advance certification to the Congress of all major FMS sales, and proposed third-party transfers, to NATO, any NATO member, Japan, Australia, and New Zealand. This change would facilitate vital military supply cooperation with important allies, and would render third-party transfer procedures less cumbersome by conforming those requirements to those applicable to major direct transfers under FMS. In addition, the bill amends the Arms Export Control Act to clarify the limitations upon the performance of defense services for a country in the event such country becomes engaged in self-defense or other military operations.

The Programs authorized by this bill are essential components of our foreign and national security policies, and of our commitment to the advancement in freedom, dignity and development of peoples in nations far less fortunate than our own. These programs have been formulated to achieve these ends in as effective and efficient a manner as possible in light of the resources available to us. They will serve our interests in the stability and economic prosperity of the developing countries, already important markets for U.S. exports, and whose participation in the world economy is steadily increasing.

With particular regard for the authorizations requested in this bill for security assistance programs for Greece and for Turkey, I hereby certify, in accordance with section 620C (d) of the Foreign Assistance Act of 1961, as' amended, that the furnishing of such assistance to Greece and to Turkey will be consistent with the principles set forth in section 620C(b) of that Act. The explanation of the reasons for this certification in each case is contained in the congressional presentation materials for the fiscal year 1981 security assistance program.

The difficult world situation facing the United States at this moment in history underscores the need to address, with renewed vigor, the human problems arising in the less-developed countries, our economic ties with them, and the security needs of our friends and allies. This bill will help us to do so, and I urge its early passage.

Sincerely,

JIMMY CARTER