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Now, therefore, the United States and the Federal Republic have entered into the following agreement:

ARTICLE I

1. The Federal Republic is indebted to the United States in the total amount of one billion United States dollars ($1,000,000,000) for economic assistance to Germany which was authorized under the GARIOA and ECA programs of the United States (as defined in Article VII of the present Agreement) prior to July 1, 1951.

2. The Federal Republic hereby promises to pay to the Export-Import Bank of Washington, an agency of the United States, its successors or assigns, in liquidation of the aforementioned indebtedness, the principal sum of one billion United States dollars ($1,000,000,000) and interest at the rate of 22% per annum on the unpaid principal balance thereof from time to time outstanding from January 1, 1953, such interest to be paid semiannually. The first payment of interest, in the amount of $12,500,000 shall be made on July 1, 1953; thereafter until and including January 1, 1958, $12,500,000 shall be paid on January 1 and July 1 of each year as interest. Beginning July 1, 1958 and semiannually thereafter, fifty-nine installments of $23,790,000 and one final installment of the unpaid balance shall be paid, such installments to be applied first to accrued interest and the remainder to principal.

3. The principal and interest are payable at the office of the Export-Import Bank of Washington, Washington, D. C. in lawful money of the United States.

4. The Federal Republic at any time may anticipate the payment of all or any part of the outstanding principal indebtedness under this Agreement. Any prepayment made to the United States shall be in United States dollars. Such payment shall be credited first to payments of interest or principal that are past due and unpaid if any, otherwise the prepayment shall be credited in equal proportions to all unpaid installments of principal. To the extent that the Federal Republic makes a payment of principal under agreements on postwar

economic assistance entered into contempo

raneously with the United Kingdom of Great Britain and Northern Ireland and and France, which it is not required to make pursuant to the terms of such agreements, it shall, unless the United States agrees otherwise, make prepayments with respect to the principal indebtedness under this Agreement proportionate to the prepayments made by the Federal Republic on the indebtedness under the agreements with the United Kingdom of Great Britain and northern Ireland and France.

5. Upon default in the prompt and full payment of any installment of principal or interest, the entire unpaid principal hereof and interest thereon to the date of payment shall become due and be payable at the option of the United States. The nonexercise of such right with respect to any particular default shall not constitute a waiver of such right with respect to such default or any other default.

ARTICLE II

The Federal Republic on behalf of itself and all persons subject to its jurisdiction hereby waives, and releases and discharges the United States and its nationals from, any and all claims and liabilities arising out of or in any way relating to the furnishing, pursuant to GARIOA and ECA programs, of economic assistance authorized prior to July 1, 1951, and related operations, including but not limited to, claims based upon expenditures of dollars or counterpart funds under such programs not of direct benefit to the German economy. The waiver, release, and discharge in the first sentence of this Article do not include claims against others than

the Government of the United States, or any agency or entity thereof, arising out of or in any way relating to contracts for the export of commodities or services with United States non-governmental suppliers.

ARTICLE III

1. Except as providing in paragraph 2 of this Article, in consideration of the undertakings of the Federal Republic herein provided, and of the conclusion of a satisfactory agreement for the settlement of German external debts, the United States hereby waives all claims of the United States against the Federal Republic arising from the furnishing, pursuant to the GARIOA and ECA programs, of economic assistance authorized prior to July 1, 1951, to the extent that such claims would cause the payment by the Federal Republic of more than the amount specified in Article I of this Agreement or before the times specified therein, provided, however, that this waiver shall not be construed as in any way affecting the obligations of the Federal Republic to make deposits to the ECA and GARIOA counterpart accounts of any sums it may be obligated so to deposit under any existing agreements, or the rights of the United States in respect of the use of funds from such accounts for the benefit of the German economy or people, nor shall this waiver be construed as in any way affecting the right of the United States to use for its own purposes the funds from such accounts for which it gave the Federal Republic credit in determining the total amount of its claim set forth in the preamble to this Agreement.

2. The obligation of the Federal Republic or its predecessors to refund dollars disbursed by the Economic Cooperation Administration or successor agencies under the applicable regulations governing the disbursement of such funds, shall in no way be affected by this Agreement; provided, however, that to the extent that such refunds are attributable to procurement or technical assistance authorizations issued on or before June 30, 1951, which refunds are received after authority under the Mutual Security Act, as amended or supplemented, to provide for assistance to the Federal Republic has ceased, they shall be considered as a reduction of

principal, applied first to payments of principal past due and unpaid if any, otherwise at the option of the United States to the next due unpaid installment of principal or to all unpaid installments of principal in equal proportion.

ARTICLE IV

1. The Federal Republic agrees that it will accord to the indebtedness covered by this Agreement a treatment with respect to security and to priority of payment and of transfer not less favorable than that accorded to any indebtedness of the Federal Republic covered by the Agreement on German External Debts and its Annexes and the agreements mentioned in the last clause of the preamble thereto. The Federal Republic further agrees that it will accord to the indebtedness covered by this Agreement a treatment with respect to priority of transfer not less favorable than that accorded to

any other indebtedness covered by the Agreement on German External Debts and its Annexes.

2. The Federal Republic further agrees that it will not take any action with respect to security and to priority of payment and of transfer accorded to any future loans or credits contracted by it or by persons, organizations or enterprises subject to its jurisdiction which would result in the impairment of the Federal Republic's ability to carry out its obligations regarding the indebtedness covered by this Agreement.

ARTICLE V

All agreements relating to the economic assistance herein mentioned, shall remain in full force and effect, except that provi

sions for security and priority in such agreements are hereby superseded by Article IV of this Agreement.

ARTICLE VI

If at any time or from time to time the parties hereto determine that it would be in their common interests because of adverse economic conditions or for any other reasons to postpone, or provide for the postponement of, any installments of interest or principal, or to alter or provide for the alteration of any of the provisions of this Agreement relating to the payment of interest and principal, or to alter this Agreement in any other respect, they may by mutual agreement in writing provide for any such postponement or alteration or other modification.

ARTICLE VII

For the purpose of this Agreement: 1. The term "GARIOA program" shall mean the program of economic assistance authorized by applicable provisions of the United States Appropriation Acts for the Government and Relief of Occupied Areas, as well as any other economic assistance, other than (a) surplus property and (b) assistance included in the ECA program, furnished by the United States directly or indirectly, to Germany or the German people since the date of the initial entry of the forces of the United States into Germany during World War II.

2. The term "ECA program" shall mean the program under which the United States furnished economic assistance to Germany the pursuant to Economic Cooperation Agreement between the United States and the United States and United Kingdom Occupied Areas in Germany dated July 14, 1948; the Economic Cooperation Agreement between the United States and the French Zone of Occupation of Germany dated July 9, 1948; and the Economic Cooperation Agreement between the United States and the Federal Republic dated December 15, 1949, as amended.

ARTICLE VIII

This Agreement shall enter into force on the date of the coming into force of the Agreement on German External Debts between the Federal Republic on the one hand, and France, the United Kingdom of Great Britain and Northern Ireland, the United States and other nations on the other hand. The contracting parties will exchange instruments confirming that this Agreement has been approved in accordance with their respective constitutional requirements.

In witness whereof, the undersigned representatives duly authorized thereto by their respective governments have signed this Agreement.

Done at London February 27, 1953, in duplicate in the English and German languages, both texts being equally authentic.

For the United States of America: WARREN LEE PIERSON. For the Federal Republic of Germany:

ABS.

The PRESIDING OFFICER. The agreement is open to amendment. If there be no amendment to be proposed, the agreement will be reported to the Senate.

The agreement was reported to the Senate without amendment.

The PRESIDING OFFICER. The resolution of ratification will be read.

The legislative clerk read the resolution of ratification, as follows:

Resolved (two-thirds of the Senators present concurring therein), That the Senate advise and consent to the ratification of Executive E, 83d Congress, 1st session, an agreement between the United States and the Federal Republic of Germany, regarding

the settlement of the claims of the United States for postwar economic assistance (other than surplus property) to Germany, signed at London on February 27, 1953.

The PRESIDING OFFICER. The question is on agreeing to the resolution of ratification. [Putting the question.] Two-thirds of the Senators present concurring therein, the resolution of ratification is agreed to, and the agreement is ratified.

AGREEMENT WITH THE FEDERAL REPUBLIC OF GERMANY RELATING TO AWARDS MADE BY THE MIXED CLAIMS COMMISSION, UNITED STATES AND GERMANY

The Senate, as in Committee of the Whole, proceeded to consider the agreement (Executive F, 83d Cong., 1st sess.), an agreement between the United States and the Federal Republic of Germany, relating to the indebtedness of Germany for awards made by the Mixed Claims Commission, United States and Germany, signed at London on February 27, 1953, which was read the second time, as follows:

AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE FEDERAL REPUBLIC OF GERMANY RELATING TO INDEBTEDNESS OF GERMANY FOR AWARDS MADE BY THE MIXED CLAIMS COMMISSION, UNITED STATES AND GERMANY

Whereas Germany, under the terms of the agreement of June 23, 1930 between the United States of America and Germany, hereinafter referred to as the 1930 Agreement, was indebted to the United States of America (hereinafter called the United States) for awards and interest thereon entered in favor of the United States on its own behalf and on behalf of its nationals by the Mixed Claims Commission, United States and Germany; and

Whereas, the United States is holding, under the terms of the 1930 Agreement, bonds of Germany as evidence of such indebtedness; and

Whereas, in an agreement between the Governments of the French Republic, the United Kingdom of Great Britain, and Northern Ireland, the United States of America and the Federal Republic of Germany in the form of an exchange of letters, on March 6, 1951, the Government of the Federal Republic of Germany confirmed that it is liable for the pre-war external debt of the German Reich; and

Whereas, the United States and the Federal Republic of Germany (hereinafter referred to as the Federal Republic) desire, as part of the general settlement of German debts, to make provision for the settlement of the obligations of the Federal Republic with regard to the remaining indebtedness of Germany for awards made by the Mixed Claims Commission, United States and Germany, on behalf of nationals of the United States, and to defer settlement of all other indebtedness under the 1930 Agreement until the final general settlement envisaged in Paragraph (1) of Article 5 of the Agreement on German External Debts, signed this day in London:

Now, therefore, it is agreed as follows:

1. The Federal Republic shall pay to the United States the total amount of $97,500,000.00, on behalf of those nationals of the United States, or their successors or assignees, on whose behalf awards of the Mixed Claims Commission, United States and Germany have heretofore been entered which awards have not been fully satisfied.

2. The said total amount shall be paid in 26 annual installments, in lawful currency

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Amount

$3,000,000.00 3, 000, 000.00 3, 000, 000, 00 3, 000, 000. 00 3, 000, 000.00 3,700, 000.00 3,700,000.00 3,700, 000. 09 3,700, 000. 00 3,700,000.00 4, 000, 000.00 4, 000, 000. 00 4, 000, 000. 00 4, 000, 000. 00 4, 000, 000. 00 4, 000, 000. 00 4, 000, 000. 00 4, 000, 000. 00 4, 000, 000.00 4,000,000.00 4, 000, 000, 00 4, 000, 000. 00 4, 000, 000. 00 4, 000, 000. 00 4, 000, 000. 00 4,000,000.00

3. In the event the Federal Republic shall fail to pay any installment upon the due date such installment shall bear interest at the rate of 34 per cent per annum from that date until the date when such installment is paid.

4. As evidence of the obligations set forth in the preceding articles of this agreement, the Federal Republic shall issue to the United States bonds in the form attached hereto as Exhibit A.

The bonds shall be numbered consecutively from 1 to 26, shall be dated January 1, 1953, and shall mature and be payable serially as provided for in Article 2 hereof. Each such bond shall be denominated in dollars and be payable to the Government of the United States in lawful currency of the United States. The bonds shall be signed for the Federal Republic by the President and a member of the Bundesschuldenverwaltung and shall be delivered to the Secretary of the Treasury of the United States at the United States Treasury in Washington.

5. Upon receipt by the United States of the bonds issued pursuant to Article 4 hereof, the United States shall cancel and deliver to the Federal Republic those bonds of Germany issued under the 1930 Agreement as evidence of Germany's indebtedness for awards of the Mixed Claims Commission, United States and Germany, which have the following maturity dates:

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6. The United States will apply the payments made by the Federal Republic as provided in this agreement in reduction of the remaining indebtedness of Germany in respect of awards of the Mixed Claims Commission, United States and Germany, made on behalf of nationals of the United States; provided, however, that full performance of this agreement by the Government of the Federal Republic or by it and the government of a re-united Germany and payment of the amounts due under this agreement shall constitute and be accepted by the United States as fulfillment by the Federal

Republic and by a re-united Germany and as full discharge of each of them and of Germany of their respective obligations under the agreement of June 23, 1930, and the bonds issued pursuant thereto, in respect of awards of the Mixed Claims Commission, United States and Germany, made on behalf of nationals of the United States, anything in the exchange of letter of October 23, 1950 and March 6, 1951 between Chancellor Adenauer and the Allied High Commission for Germany or in the memorandum of December 1951 prepared by the Tripartite Commission on German Debts to the contrary notwithstanding.

7. Settlement of the indebtedness of Germany in respect of the awards of the Mixed Claims Commission, United States and Germany, to the United States on its own behalf shall be deferred until the final general settlement envisaged in Paragraph (1) of Article 5 of the Agreement on German External Debts, signed this day in London.

8. The amounts to be paid by the Federal Republic in accordance with this agreement shall be paid without deduction for, and shall be exempt from, any and all taxes or other public dues present or future, imposed by or under authority of the Federal Republic or any political or local taxing authority within the Federal Republic.

public shall be sufficient if delivered to the 9. Any notice from or by the Federal ReAmerican Embassy at Bonn or to the Secretary of the Treasury at the Treasury of the United States in Washington. Any notice, request, or consent under the hand of the Secretary of the Treasury of the United States shall be deemed and taken as the notice, request, or consent of the United States and shall be sufficient if delivered at the Embassy of the Federal Republic at Washington or at the office of the Ministry of Finance of the Federal Republic at Bonn. The United States in its discretion may waive any notice required hereunder, but any such waiver shall be in writing and shall not extend to or affect any subsequent notice or impair any right of the United States to require notice hereunder.

10. The United States and the Federal Republic, each for itself represents and agrees that the execution and delivery of this agreement have in all respects been duly authorized, and that all acts, conditions, and legal formalities which should have been completed prior to the making of this agreement have been completed as required by the laws of the United States and of the Federal Republic respectively and in conformity therewith.

11. Any dispute between the United States and the Federal Republic respecting the interpretation or implementation of this agreement shall be settled through negotiation or by such other method as may then be agreed between the United States and the Federal Republic.

12. This agreement shall be approved by the United States and the Federal Republic in accordance with their respective constitutional procedures.

The agreement shall enter into force(a) upon the exchange of instruments of approval at Washington, and

(b) upon the coming into force of the Agreement on German External Debts between the Federal Republic on the one part and France, the United Kingdom of Great Britain and Northern Ireland, the United States and other countries on the other part. In witness whereof, the undersigned representatives duly authorized thereto by their respective governments have signed this agreement.

Done at London on February 27, 1953, in duplicate in the English and German languages, both texts being equally authentic. For the United States of America:

WARREN LEE PIERSON. For the Federal Republic of Germany:

ABS.

EXHIBIT A

(Form of Bond)

THE FEDERAL REPUBLIC OF GERMANY

Dated January 1, 1953

No.

The Federal Republic of Germany, herein called the Federal Republic, in consideration of the mutual covenants contained in an agreement dated ------, 1953, between it and the United States of America hereby promises to pay to the Government of the United States of America, herein called the United States, on April 1, 19--, for the purposes specified in said agreement the sum of $_____-. This bond is payable at the Federal Reserve Bank of New York in lawful currency of the United States.

If this bond is not paid on the date when it is due, interest on the face amount of this bond shall be paid at the rate of 334 per cent per annum from such date until the date of payment.

This bond is payable without deduction for, and is exempt from, any and all taxes and other public dues, present or future, imposed by or under authority of the Federal Republic or any political or local taxing authority within the Federal Republic. This bond is issued pursuant to the provisions of an agreement dated -- 1953, between the United States and the Federal Republic, to which this bond is subject and to which reference is made.

In witness whereof, the Federal Republic has caused this bond to be executed and delivered on its behalf.

For the Federal Republic of Germany:
THE BUNDESSCHULDENVERWALTUNG,

President

Member

The PRESIDING OFFICER. The agreement is open to amendment. If there be no amendment to be proposed, the agreement will be reported to the Senate.

The agreement was reported to the Senate without amendment.

The PRESIDING OFFICER. The resolution of ratification will be read.

The legislative clerk read the resolution of ratification, as follows:

Resolved (two-thirds of the Senators present concurring therein), That the Senate advise and consent to the ratification of Executive F, 83d Congress, 1st session, an agreement between the United States and the Federal Republic of Germany, relating to the indebtedness of Germany for awards made by the Mixed Claims Commission, United States and Germany, signed at London on February 27, 1953.

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lar bonds, signed at Bonn on April 1, 1953, which was read the second time, as follows:

(Ex. G, 83d Cong., 1st sess, validation of German dollar bonds) AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE FEDERAL REPUBLIC OF GERMANY REGARDING CERTAIN MATTERS ARISING FROM THE VALIDATION OF GERMAN DOLLAR BONDS

ARTICLE III

The members of the Board for the Validation of German Bonds in the United States are authorized and bound to waive all immunity from service of process issuing from courts in the United States in proceedings brought to determine whether the requirements for validation of bonds under the Validation Law have been met. Such proceedings must be brought within three months from receipt of the decision of the Board by the party seeking validation of the It is agreed that such members will comply with any judgments, orders or decrees that such courts may issue in such proceedings. The term "members" as used in this Article includes the chairman and the deputies of the members when acting as members.

Whereas the United States of America (hereinafter referred to as bond. "the United States") and the Federal Republic of Germany (hereinafter referred to as "the Federal Republic") have agreed that it is in their common interest to provide for the determination of the validity of German dollar bonds in view of the possibility that a large number of such bonds may have been unlawfully acquired during hostilities in Germany or soon thereafter;

Whereas they have agreed on procedures for accomplishing this purpose in the Agreement Between the Government of the United States of America and the Government of the Federal Republic of Germany Regarding the Validation of Dollar Bonds of German Issue (hereinafter referred to as "the Agreement on Validation Procedures") signed at Bonn on February 27, 1953;

Whereas the Federal Republic on the one hand and the United States and other countries on the other signed the Agreement on German External Debts at London on February 27, 1953, for the settlement of Germany's external obligations, including German dollar bonds, the benefits of which will apply only to bonds which have been duly validated; and

Whereas the United States and the Federal Republic agree that further measures are required to permit debtors and creditors to proceed to the olderly settlement of the obligations arising from German dollar bonds with confidence in the stability of the procedures regarding validation and with assurance that claims prejudicial to such settlement will not be asserted on the basis of bonds which were unlawfully acquired:

Therefore, the United States and the Federal Republic have agreed as follows:

ARTICLE I

Except as may be agreed between the Federal Republic and the United States, the Federal Republic will not amend, modify, or repeal its Law for the Validation of German Foreign Currency Bonds of August 25, 1952 (Bundesgesetzblatt 1952, Part I, page 553) (hereinafter referred to as "the Validation Law") or the Schedule thereto insofar as they relate to bonds, debentures, or other obligations (hereinafter referred to as bonds) listed in the said Schedule or the First Implementing Ordinance under the said Law of February 21, 1953 (Bundesgesetzblatt 1953, Part I, page 31) and in respect of which the Schedule or the said Ordinance describes the United States as the Country of Offering, or to coupons, dividend warrants, renewal certificates, subscription warrants or other secondary instruments issued in connection with such bonds. Except as may be so agreed, the Federal Republic will not extend the provisions of the said Law to bonds offered in

the United States and not listed in the said Schedule or the said Ordinance.

ARTICLE II

No bond, coupon, dividend warrant, renewal certificate, subscription warrant, or other secondary instrument referred to in the first sentence of Article I above shall be enforceable unless and until it shall be validated either by the Board for the Validation of German Bonds in the United States established by the Agreement on Validation Procedures, or by the authorities competent for that purpose in the Federal Republic.

ARTICLE IV

For the purpose of all proceedings in the United States, the English texts of the Validation Law and of the Second Implementing Ordinance thereunder of March 7, 1953 (Bundesanzeiger 1953, Nr. 50, page 2) which are annexed to the Agreement on Validation Procedures shall be authentic.

ARTICLE V

This Agreement shall be ratified by the Federal Republic and the United States in accordance with their respective constitutional procedures. The Agreement shall enter into force upon (a) the exchange of instruments of ratification at Washington, and (b) the entry into force of the Agreement on German External Debts between the Federal Republic on the one hand, and France, the United Kingdom of Great Britain and Northern Ireland, the United States and other countries on the other hand.

Done in duplicate, in the English and German languages, both authentic, at Bonn, this first day of April, 1953.

For the United States of America
JAMES B. CONANT
For the Federal Republic of Germany
SCHAEFFER

The

The PRESIDING OFFICER. agreement is open to amendment. If there be no amendment to be proposed, the agreement will be reported to the Senate.

The agreement was reported to the Senate without amendment.

The PRESIDING OFFICER. The resolution of ratification will be read.

The legislative clerk read the resolution of ratification, as follows:

Resolved (two-thirds of the Senators present concurring therein), That the Senate advise and consent to the ratification of Executive G, 83d Congress, 1st session, an agreement between the United States and the Federal Republic of Germany, concerning the validation of German dollar bonds, signed at Bonn on April 1, 1953.

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NOMINATIONS

Executive nominations received by the Senate July 13 (legislative day of July 11), 1953:

DEPARTMENT OF JUSTICE

Perry William Morton, of Nebraska, to be Assistant Attorney General to fill an existing vacancy.

FARM CREDIT ADMINISTRATION

Carl Raymond Arnold, of Ohio, to be Governor of the Farm Credit Administration for the remainder of the term of 6 years from June 15, 1952, vice Ivy W. Duggan, resigned.

IN THE MARINE CORPS

Maj. Gen. Oliver P. Smith, United States Marine Corps, to have the grade, rank, pay, and allowances of lieutenant general while serving as commanding general, Fleet Marine Force, Atlantic.

Maj. Gen. John T. Selden, United States Marine Corps, for permanent appointment to the grade of major general.

Brig. Gen. Lewis B. Puller, United States Marine Corps, for permanent appointment to the grade of brigadier general.

HOUSE OF REPRESENTATIVES

MONDAY, JULY 13, 1953

The House met at 12 o'clock noon. The Chaplain, Rev. Bernard Braskamp, D. D., offered the following prayer:

Almighty God, as we begin this new week, may we accept its challenge and opportunity to bring to our torn and

troubled world the confidence and consolation of a great trust in Thee.

We know that the forces of evil, which are arrayed against us and storming the citadel of our freedom and faith, are terrible and terrific but not too mighty for Thy divine strength to withstand and

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MESSAGE FROM THE SENATE

A message from the Senate, by Mr. Ast, one of its clerks, announced that the Senate had passed without amendment bills of the House of the following titles:

H. R. 4072. An act relating to the disposition of certain former recreational demonstration project lands by the Commonwealth of Virginia to the School Board of Mecklenburg County, Va.; and

H. R. 5302. An act to provide for an additional Assistant Postmaster General in the Post Office Department.

The message also announced that the Senate had passed, with amendments in which the concurrence of the House is

requested, a bill of the House of the following title:

H. R. 5451. An act to amend the wheat marketing quota provisions of the Agricultural Adjustment Act of 1938, as amended, and for other purposes.

The message also announced that the Senate had passed, with amendments in which the concurrence of the House is requested, a bill of the House of the following title:

H. R. 5690. An act making appropriations for additional independent executive bureaus, boards, commissions, corporations, agencies, and offices, for the fiscal year ending June 30, 1954, and for other purposes.

The message also announced that the Senate insists upon its amendments to the foregoing bill, requests a conference with the House on the disagreeing votes of the two Houses thereon, and appoints Mr. SALTONSTALL, Mr. BRIDGES, Mr. FERGUSON, Mr. CORDON, Mr. HICKENLOOPER, Mr. MAYBANK, Mr. HILL, and Mr. ELLENDER to be the conferees on the part of the

Senate.

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CONTINUING AVAILABILITY OF APPROPRIATIONS FOR SMALL DEFENSE PLANTS ADMINISTRATION Mr. TABER. Mr. Speaker, I ask unanimous consent for the immediate

consideration of House Joint Resolution

294 continuing the availability of appropriations for the Small Defense Plants Administration for the month of July 1953, and for other purposes.

The Clerk read the title of the joint resolution.

The SPEAKER. Is there objection to the request of the gentleman from New York [Mr. TABER]?

Mr. CANNON. Mr. Speaker, reserving the right to object, may I ask the gentleman this question: The provision for this agency would have been included in the continuing resolution but for the fact that under the law it was due to expire at the end of the fiscal year. The House in the meantime having passed legislation extending the life of the agency until July 31, this merely provides for that extension?

Mr. TABER. That is what it is and that is all it is. It is to carry on and to continue the availability of funds to meet the obligations that were incurred under the revolving fund prior to the 30th of June.

Mr. CANNON. No money will be available beyond the date of July 31, 1953, the date of the legislative extension of the life of the agency?

Mr. TABER. That is correct.

The SPEAKER. Is there objection to the request of the gentleman from New York [Mr. TABER]?

There being no objection, the Clerk read the House joint resolution, as follows:

Resolved, etc., That not to exceed $300,000 of the unobligated balance of the appropriation "Salaries and expenses, Small Defense available through July 31, 1953. The revolvPlants Administration, 1953" shall remain ing fund established under said Administration shall remain available through July 31, 1953, for payment of obligations and direct costs under contracts entered into dur

ing the fiscal year 1953.

SEC. 2. Appropriations and authority granted pursuant to this joint resolution shall be subject to the provisions of sections 2 to 6, inclusive, of the joint resolution approved June 30, 1953 (Public Law 91), making temporary appropriations for the fiscal year 1954.

SEC. 3. Appropriations and authority granted by this joint resolution shall be available on and after July 1, 1953, and all obligations incurred in anticipation of the enactment hereof are ratified and confirmed if otherwise in accordance with the terms hereof.

The joint resolution was ordered to be read the third time, and passed, and a engrossed and read a third time, was motion to reconsider was laid on the table,

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Mr. CLEVENGER. Mr. Speaker, I ask unanimous consent to take from the Speaker's table the bill (H. R. 4974) making appropriations for the Departments of State, Justice, and Commerce, for the fiscal year ending June 30, 1954, and for other purposes, with Senate amendments thereto, disagree to the Senate amendments, and agree to the conference asked by the Senate.

The SPEAKER. Is there objection to the request of the gentleman from Ohio? Mr. CANNON. Mr. Speaker, reserving the right to object, may I ask the gentleman when he expects this bill to go to conference?

Mr. CLEVENGER. o'clock.

Thursday at 4

The SPEAKER. Is there objection to the request of the gentleman from Ohio? [After a pause.] The Chair hears none, and appoints the following conferees: Messrs. CLEVENGER, COUDERT, BOW, COON, TABER, ROONEY, PRESTON, SIKES, and CANNON.

SWEARING IN OF MEMBER

Mr. McCORMACK. Mr. Speaker, I ask unanimous consent that the gentleman from Illinois, Mr. JAMES B. BOWLER, be permitted to take the oath of office. His certificate of election has not arrived, but there is no contest, and there is no question as to his election.

The SPEAKER. Is there objection to the request of the gentleman from Massachusetts?

There was no objection.

Mr. BOWLER appeared at the bar of the House and took the oath of office.

MILITARY UNIFORM EXPENSE

Mr. POFF. Mr. Speaker, I ask unanimous consent to extend my remarks at this point in the RECORD.

The SPEAKER. Is there objection to the request of the gentleman from Virginia?

There was no objection.

Mr. POFF. Mr. Speaker, the great Ways and Means Committee of the House is currently studying several tax-relief measures introduced during this session of Congress. I am today introducing another such measure which, to me, seems deserving of special and preferred attention. My bill is in the following language:

A bill to amend section 23 of the Internal Revenue Code to provide for the exemption of amounts paid by members of the Armed Forces for uniforms they are required to purchase

Be it enacted, etc., That section 23 of the Internal Revenue Code (relating to deductions from gross income) is amended by adding at the end thereof the following new subsection:

"(gg) Amounts paid for uniforms by members of Armed Forces: Amounts paid by a member of the Armed Forces of the United States, whether Regular or Reserve, for the purchase of uniforms which he is required to wear by reason of active duty, active duty for training, or inactive-duty training, reduced by the amount of any uniform reimbursement or allowance received by him from the United States during the taxable year. No deduction under this subsection for any taxable year shall exceed $200."

SEC. 2. The amendment made by this act shall apply with respect to taxable years beginning after December 31, 1953.

Stated another way, this legislation would permit all Regular and Reserve members of the Armed Forces who are required to buy their own uniforms to deduct up to $200 of the expense for every taxable year (less the uniform allowance paid him by the Government, if any). The purpose of the $200 limitation is to prevent the high-salaried brass from writing off the full cost of fancydress uniforms.

In the case of Reserve officers, section 243 of the Armed Forces Reserve Act of 1952-Public Law 476, 82d Congressprovides in part as follows:

SEC. 243. (a) An officer of a Reserve component or of the Army of the United States without component or the Air Force of the United States without component shall be entitled to an initial sum not to exceed $200 as reimbursement for the purchase of required uniforms and equipment, either—

(1) upon first reporting for active duty for a period in excess of 90 days; or

(2) upon completion, as a member of a Reserve component, of not less than 14 days' active duty or active duty for training; or

(3) after the performance of 14 periods of not less than 2 hours' duration each, of inactive-duty training as a member in the Ready Reserve of a Reserve component: Provided, That only duty requiring the wearing of the uniform shall be counted for the purpose of this section.*

* *

(b) An officer of a Reserve component shall be entitled to an additional sum of not to exceed $50 for reimbursement for the purchase of required uniforms and equipment, upon completion of each period * * of 4 years of satisfactory Federal service * performed in an active status in a Reserve component and which shall include at least 28 days of active duty or active duty for training.

**

(c) An officer of a Reserve component entering on active duty or active duty for training ** shall be entitled, for each time of such entry or reentry on active duty

*** to a further sum not to exceed $100 as reimbursement for additional uniforms and equipment required on such duty.

While it would appear that this language affords some relief to Reserve officers, as a practical matter they seldom ever receive any uniform allowance. Unless he is called into active duty for more than 90 days, or completes 14 days of active duty or active duty for training as a member of a Reserve component, or completes 14 two-hour periods of inactive-duty training in the Ready Reserve, he is not entitled to the initial allowance of $200; and even if he gets this initial allowance and the supplemental $100 allowance as well, he can then obtain only $50 for every 4 years of service performed in an active status in a Reserve component, and that 4 years must include at least 28 days of active duty for training.

From this it can be seen that while Reserve personnel are required in the performance of their duties to buy and wear uniforms, it is exceedingly difficult for them to earn any uniform allowance, and, when they do, it is wholly inadequate.

In the case of Regular officers, who are required to buy their own uniforms and who get no governmental allowance at all, I have always felt that the law and the rule laid down in the regulations and the decided cases was broad enough to permit deductions of the full uniform expense. That rule provides in substance that if a taxpayer is engaged in an occupation which requires special apparel for the production of the taxable income, then the costs of such apparel are classified as ordinary and necessary items of expense and as such are fully deductible provided, first, the special apparel is specifically required as a condition of employment; and, second, it is not adaptable to general or continued usage to such an extent that it takes the place of ordinary clothing.

Under this rule, ballplayers, firemen, policemen, aviators, nurses, and so forth, have been permitted to deduct the full cost of their uniforms. Is a military uniform any different?

Applying the tests

First, is the military uniform special apparel? Ask the boys who wear them.

Second, is the military uniform required as a condition to employment? The serviceman could not serve without it.

Third, is it an ordinary and necessary item of expense for the production of taxable income? The military man pays an income tax on his salary and without his uniform he could not earn his salary.

Fourth, is it adaptable to general or continued personal and private usage? Certainly no more so than a nurse's dress or a fireman's shirt or a policeman's trousers.

If, then, the general rule is satisfied, why should not the deduction be made a part of the affirmative law? Assuredly our service men and women are entitled to the same benefits as our civilian income earners and taxpayers.

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BOSTON, MASS., July 10, 1953.

EDITH NOURSE ROGERS,
Ways and Means Committee,

House Office Building:

We strongly urge you endeavor persuade Ways and Means Committee eliminate amendment from customs simplification bill (H. R. 5877) relating to requirement injury test before countervailing duties can be imposed. Our industry had no opportunity express our opposition this clause which was not in original bill. Respectfully request your oppostion to such fundamental change in statutory law without opportunity for industries vitally affected to be heard. KENNETH MARRINER, Marriner & Co., Inc.

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