20. Use of Foreign Currencies

a. Section 6 of the Interest Equalization Tax Extension Act

of 1965

Partial Text of Public Law 89–243, 79 Stat. 954, 966, approved October 9, 1965

*

SEC. 6. USE OF FOREIGN CURRENCIES OWNED BY THE UNITED STATES.(a) Under the direction of the President, the Secretary of the Treasury shall periodically ascertain, by country, the amount of funds required by the United States Government to pay its obligations in foreign countries, including obligations payable in foreign currencies. (b) Every international agreement (other than an agreement entered into pursuant to title I of the Agricultural Trade Development and Assistance Act of 1954, as amended (Public Law 480, 83d Congress)) hereafter entered into, or hereafter amended or extended, between the United States and any foreign country under which currency of such country accrues or will accrue for the use of the United States shall include provisions that such currency may be used for paying United States obligations in such country which may be paid in such currency, and if not needed for such purpose may be used, or converted to other foreign currencies, or to dollars for use, in paying United States obligations in any foreign country, in such amounts as the Secretary of the Treasury considers necessary for the requirements of the United States.

(c) The Secretary of the Treasury shall submit a report annually to the Senate Committee on Finance and the House Committee on Ways and Means which shows, by executive agencies and by countries, (1) the expenditures in dollars and in foreign currencies made during the preceding fiscal year in paying the obligations of the United States in foreign countries, (2) the amounts of foreign currencies available for the use of the United States at the close of such year, and (3) the amounts of foreign currencies convertible to other foreign currencies or to dollars at the close of such year.

(d) This section shall terminate at the time when the tax imposed by section 4911 of the Internal Revenue Code of 1954 terminates.1

126 U.S.C. § 4911. Sec. 2 of P.L. 91-128 substituted "March 31, 1971" for "September 30, 1969".

(189)

b. Public Works for Water, Pollution Control, and Power Development and Atomic Energy Commission Appropriation Act, 1970

Partial Text of Public Law 91-144 [H.R. 14159], 83 Stat. 323, approved December 11, 1969

SEC. 507. Pursuant to section 1415 of the Act of July 15, 1952 (66 Stat. 662), foreign credits (including currencies) owed to or owned by the United States may be used by Federal agencies for any purpose for which appropriations are made for the current fiscal year (including the carrying out of Acts requiring or authorizing the use of such credits), only when reimbursement therefor is made to the Treasury from applicable appropriations of the agency concerned: Provided, That such credits received as exchange allowances or proceeds of sales of personal property may be used in whole or part payment for acquisition of similar items, to the extent and in the manner authorized by law, without reimbursement to the Treasury.

1 For text, see page 191.

(190)

c. Supplemental Appropriation Act, 1953

Partial Text of Public Law 547, 82d Congress [H.R. 8370], 66 Stat. 637, approved July 15, 1952

CHAPTER XIV—GENERAL PROVISIONS

SEC. 1415. Foreign credits owed to or owned by the United States Treasury will not be available for expenditure by agencies of the United States after June 30, 1953, except as may be provided for annually in appropriation Acts and provisions for the utilization of such credits for purposes authorized by law are hereby authorized to be included in general appropriation Acts.

*

NOTE.-Executive Order No. 10488 of September 23, 1953, 18 F.R. 5699, authorizes the Secretary of the Treasury to issue regulations governing the purchase, custody, transfer or sale of foreign exchange by agencies of the United States. See also sec. 519 of the Department of Defense Appropriation Act, 1969, Public Law 90-580, 82 Stat. 1120, 1133.

(191)

d. General Government Matters Appropriation Act, 1962

Partial Text of Public Law 87-125 [H.R. 7577] 75 Stat. 268, 283, approved August 3, 1961

TITLE V-GENERAL PROVISIONS

SEC. 508. Pursuant to section 1415 of the Act of July 15, 1952 (66 Stat. 662), foreign credits (including currencies) owed to or owned by the United States may be used by Federal agencies for any purpose for which appropriations are made for the current fiscal year (including the carrying out of Acts requiring or authorizing the use of such credits), only when reimbursement therefor is made to the Treasury from applicable appropriations of the agency concerned: Provided, That such credits received as exchange allowances or proceeds of sales of personal property may be used in whole or part payment for acquisition of similar items, to the extent and in the manner authorized by law, without reimbursement to the Treasury: Provided further, That nothing in section 1415 of the Act of July 15, 1952, or in this section shall be construed to prevent the making of new or the carrying out of existing contracts, agreements, or executive agreements for periods in excess of one year, in any case where such contracts, agreements, or executive agreements for periods in excess of one year were permitted prior to the enactment of this Act under section 32 (b) (2) of the Surplus Property Act of 1944, as amended (50 U.S.C. App. 1641 (b) (2)), and the performance of all such contracts, agreements, or executive agreements shall be subject to the availability of appropriations for the purchase of credits as provided by law.

*

1 For text, see page 191.

3 The words "and for liquidation of obligations legally incurred against such credits prior to July 1, 1953" appeared at this point in previous General Government Matters Appropriation Acts, 1956-1959, and the Supplemental Appropriations Act, 1955.

(192)

e. Use of Reserved Foreign Currencies

Text of Public Law 89-677, 89th Congress [S. 801], 80 Stat. 955, approved October 15, 1966

AN ACT To improve the balance-of-payments position of the United States by permitting the use of reserved foreign currencies in lieu of dollars for current expenditures.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That any foreign currencies held by the United States which have been or may be reserved or set aside for specified programs or activities of any agency of the Government may be used by Federal agencies for any authorized purpose, except (1) that reimbursement shall be made to the Treasury from applicable appropriations of the agency concerned, and (2) that any foreign currencies so used shall be replaced when needed for the purpose for which originally reserved or set aside.

(193)