Page:United States Statutes at Large Volume 82.djvu/90

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PUBLIC LAW 90-000—MMMM. DD, 1968

48

Exports to Communist countries, prohibitions. 76 Stat. 261; 78 Stat. 1013. 22 USC 2370.

Presidential determination; report to Congress.

78 Stat. 827. 26 USC 4916. 78 Stat. 809; 81 Stat. 145. Presidential determination; report to Congress.

12 USC 635e.

PUBLIC LAW 90-267-MAR. 13, 1968

[82 STAT.

(c) Section 2(b) of such Act is further amended by adding the following at the end thereof: "(2) The Bank in the exercise of its functions shall not guarantee, insure, or extend credit, or participate in any extension of credit— " (A) in connection with the purchase or lease of any pifo^tret by a Communist country (as defined in section 620(f) of the Foreign Assistance Act of 1961, as amended), or agency or national thereof, or " (B) in connection with the purchase or lease of any product by any other foreign country, or agency, or national thereof, if the product to be purchased or leased by such other country, agency, or national is, to the knowledge of the Bank, principally for use in, or sale or lease to, a Communist country (as so defined), except that the prohibitions contained in this paragraph shall not apply in the case of any transaction which the President determines would be in the national interest if he reports that determination to the Senate and House of Representatives within thirty days after making the same. " (3) The Bank shall not guarantee, insure, or extend credit, or participate in the extension of credit in connection with the purchase of any product, technical data, or other information by a national or agency of any nation— " (A) which engages in armed conflict, declared or otherwise, with armed forces of the United States; or " (B) which furnishes by direct governmental action (not including chartering, licensing or sales by non-wholly-owned business enterprises) ^oods, supplies, military assistance, or advisers to a nation described in subparagraph (A); nor shall the Bank guarantee, insure, or extend credit, or participate in the extension of credit in connection with the purchase by any nation (or national or agency thereof) of any product, technical data, or other information which is to be used principally by or in a nation described in subparagraph (A) or (B). "(4) The Bank snail not guarantee, insure, or extend credit, or participate in an extension o f credit in connection with any credit sale of defense articles and defense services to any country designated under section 4916 of the Internal Revenue Code of 1954 as an economically less developed country for purposes of the tax imposed by section 4911 of that Code. The prohibitions set forth in this paragraph shall not apply with respect to any transaction the consummation of which the President determines would be in the national interest and reports such determination (within thirty days after making the same) to the Senate and House of Representatives. I n making any such determination the President shall take into account, among other considerations, the national interest in avoiding arms races among countries not directly menaced by the Soviet Union or by Communist China; in avoiding arming military dictators who are denying social progress to their own peoples; and in avoiding expenditures by developing countries of scarce foreign exchange needed for peaceful economic progress. "(5) I n no event shall the Bank have outstanding at any time in excess of 7i/2 per centum of the limitation imposed by section 7 of this Act for 9u«h guarantees, insurance, credits or participation in credits with respect to exports of defense articles and services to countries