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B-196401 1 (1979-12-13)

handle is hein.gao/gaobabjga0001 and id is 1 raw text is: I .' - L - I L ' B-196401 December M3, 1509 The IHonorablet rank Church, Charmn Committee on Foreign Relat/ons United States Senate Dear Mr. CDbairmann You have requsted our opinion concerning the legality of continued United States contributions to the International Fund for Agricultural Development (Fund>,. Contributions to the Fund were authorized by section 301 of the Internacional Development and Food Assistance Act of 1975, Pub. L. No, 94-161, 89 Scat. 849, 856. The act conditioned United States partici- pation on total donor commitments to the Fund of $1 billion, and equitable I sharing of the burden among the different categories of donors. You indicate that Iran is in default in fulfilling its commitment to the Fund, You ask whether the United States can make further contributions to the Fund If Iran's default lowers total donor contributions below $1 billion, in view of a condition on contributions contained in subscction (f) of section 103 of the Foreign Assistance Act of 1961, au amended. You further ask whether Iran's default, if not made up for by other donors in the same category as Iran, (OPEC members), would violate another condition of subsection (f) re- quiring eqt'.itable burden sharing among the categories of donors. ,, V For the reasonc indicated below, fe conclude that the United States may compluite its full contribution to the Fund despite the default by Iran, 4 and tihat the default does not violate the equitable burden sharing provision of the act. Section 302 of the International Development and Food Assistance Act of 1975, supra, amended section 103 of the Foreign Assistance Act of 1961 to authorize the President to participate in and contribute up to $200 million to the International Fund for Agricultural Development. The act authorized an aprropriation of up to $200 million for the contribution. Subsection (f) of se..tion 103 provided, in pertinent part: (f) No funds may be obligated to carry out sub-- section (e) unless.- 7. - , N~

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