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the Associated States of Cambodia, Laos, 1557), except the provisions relating to the and Vietnam and the forces of France located purpose for which assistance may be given, in such Associated States.'

or of section 503 (b) (3) of this Act, shall "CHAPTER III—MUTUAL SPECIAL WEAPONS

apply to the expenditure of funds pursuant

to this section to the extent that they are PLANNING

not inconsistent with the purposes of this "SEC. 301. AUTHORIZATION OF APPROPRIA

section.' TION.—The Mutual Security Act of 1951, as

"SEC. 502. INDIA AND PAKISTAN.-Section amended, is amended by adding after section 302 (relating to economic and technical as541 the following new section:

sistance for Asia and the Pacific) of the “ SEC. 542. There is hereby authorized to Mutual Security Act of 1951, as amended, is be appropriated to the President for the fiscal amended by redesignating subsection (b) as year 1954 not to exceed $100,000,000 for the

subsection (c), and by inserting after subpurpose of furnishing special weapons to na

section (a) the following new subsection tions eligible to receive military assistance

(b): under this Act or to the international organ

'(b) In order to further the purpose of izations referred to in sections 2 (b) (A) and

this Act in India and Pakistan, there is 2 (b) (C) of this Act: Provided, That, prior hereby authorized to be appropriated to the to the obligation of funds for this purpose,

President for the fiscal year 1954 not to exthe President shall determine that such

ceed $94,400,000 to be used, on such terms obligation is of direct importance to the se

and conditions as he may specify, to furnish curity interest of the United States and is in

special economic assistance designed to profurtherance of the policies and purposes of

mote the economic development of such the Mutual Defense Assistance Act of 1949,

countries, to assist in maintaining economic as amended: And provided further, That, prior to the transfer of such weapons, the

and political stability therein, and to enable

the countries designated in this subsection President shall determine (1) that the re

to make greater progress toward solving cipient is adequately prepared to safeguard

their mutual problems in cooperation with the security of such weapons; (2) that the transfer of such weapons will be of direct im

each other. The applicable provisions of

the Act for International Development, exportance to the security interest of the United States; and (3) that such transfer

cept the provisions relating to the purpose will further the purposes and policies of the

for which assistance may be given, or of Mutual Defense Assistance Act of 1949, as

section 503 (b) (3) of this Act, shall apply amended. Nothing contained in this section

to the expenditure of funds pursuant to this shall alter, amend, revoke, repeal, or other

section to the extent that they are not inwise affect the provisions of any law re

consistent with the purposes of this secstricting, limiting, or prohibiting the transfer

tion.' of any such weapons. Notwithstanding any "CHAPTER VI-MULTILATERAL ORGANIZATIONS other provisions of this Act, funds made "SEC. 601. MOVEMENT OF MIGRANTS.-Secavailable pursuant to this section may be

tion 534 (relating to the movement of miused only for the purpose of this section.'

grants) of the Mutual Security Act of 1951, "CHAPTER IV–TECHNICAL ASSISTANCE as amended, is amended by adding at the "SEC. 401. AUTHORIZATION OF APPROPRIA end thereof the following new sentence: TION.-The Mutual Security Act of 1951, as

“There is hereby authorized to be approamended, is amended by adding after section priated to the President not to exceed $10,542 the following new section:

000,000 for contributions during the calen“ 'SEC. 543. There is hereby authorized to

dar year 1954 to the Intergovernmental be appropriated to the President for the

Committee for European Migration.' fiscal year 1954 not to exceed $43,792,500 to

"SEC. 602. MULTILATERAL TECHNICAL COOPcarry out the provisions of section 203 (relat

ERATION.-The Mutual Security Act of 1951, ing to economic and technical assistance for

as amended, is amended by adding after the Near East and Africa); $72,100,000 to

section 543 the following new section: carry out the provisions of section 302 (a)

'SEC. 544. There is hereby authorized to (relating to defense support, economic and

be appropriated to the President for the fistechnical assistance) other than for the Na

cal year 1954 not to exceed $13,750,000 for tional Government of the Republic of China

multilateral technical cooperation under and the Associated States of Cambodia, Laos,

section 404 (b) of the Act for International and Vietnam; and $24,342,000 to carry out

Development.' the provisions of section 402 (relating to

“SEC. 603. CHILDREN'S WELFARE.—The Mutechnical assistance for Latin America).'

tual Security Act of 1951, as amended, is "SEC. 402. AUTHORIZATION OF APPROPRIATION

amended by adding after section 544 the FOR BASIC MATERIALS.-Section 514 (relating

following new section: to basic materials) of the Mutual Security

“ 'SEC. 545. There is hereby authorized to Act of 1951, as amended, is amended by add

be appropriated to the President not to exing at the end thereof the following sen

ceed $9,000,000 for contributions during the tence: "There is hereby authorized to be ap

calendar year 1954 for the support of inter

national children's welfare work in such propriated to the President for the fiscal year 1954 not to exceed $7,500,000 to carry out the

manner and on such terms and conditions provisions of this section.'

as he may deem to be in the interests of

the United States.' "CHAPTER V-SPECIAL REGIONAL ECONOMIC "SEC. 604. OCEAN FREIGHT ON RELIEF SHIPASSISTANCE

MENTS.-Section 535 (relating to the pay"SEC. 501. NEAR EAST AND AFRICA.-Section ment of ocean freight charges on voluntary 206 (relating to refugees) of the Mutual Se relief shipments) of the Mutual Security curity Act of 1951, as amended, is amended Act of 1951, as amended, is amended by addto read as follows:

ing at the end thereof the following new " "SEC. 206. In order to further the purpose sentence: “There is hereby authorized to of this Act in the Near East and Africa, there be appropriated to the President for the fisis hereby authorized to be appropriated to cal year 1954 not to exceed $1,825,000 for use the President for the fiscal year 1954 not to in paying ocean freight charges under secexceed $194,000,000 to be used, on such terms

tion 117 (c) of the Economic Cooperation and conditions as he may specify, to furnish Act of 1948, as amended.' special economic assistance designed to pro "SEC. 605. UNITED NATIONS KOREAN RECONmote the economic development of the area, STRUCTION AGENCY.-Section 303 (a) (relatfor relief and rehabilitation of refugees in ing to Korean relief) of the Mutual Security the area, and for other types of economic Act of 1951, as amended, is amended as assistance to assist in maintaining economic follows: and political stability in the area. The ap “(a) Add at the end the following new plicable provisions of the Act for Interna sentence: "There is hereby authorized to be tional Development (64 Stat. 204; 22 U. S. C. appropriated to the President for the fiscal

year 1954 not to exceed $71,000,000 for making contributions to the United Nations Korean Reconstruction Agency, or such other agency for relief and rehabilitation in Korea, as the President may direct.'

"(b) In the third sentence, strike out $67,500,000' and insert in lieu thereof ($40,750,000.' "CHAPTER VII—FURTHER CHANGES IN EXISTING

MUTUAL SECURITY LEGISLATION "SEC. 701. TRANSFERS OF FUNDS.-(a) Section 101 (b) of the Mutual Security Act of 1951, as amended, is amended to read as follows:

“'(b) Not to exceed 10 per centum of the total of the appropriations made available under this section may be transferred, when determined by the President to be necessary for the purpose of this Act, between appropriations made available under either paragraph of subsection (a): Provided, That whenever the President makes any such determination, he shall forthwith notify the Committee on Foreign Relations of the Senate, the Committee on Foreign Affairs of the House of Representatives, and the Commit. tees on Armed Services of the Senate and of the House of Representatives.'

“() Section 202 of such Act, as amended, is amended by striking out '(excluding bal. ances of prior appropriations continued available) pursuant to section 201' and inserting in lieu thereof 'under section 201'.

"(c) The first sentence of section 513 (a) of such Act, as amended, is amended to read as follows: 'Whenever the President determines it to be necessary for the purpose of this Act, funds made available under sections 101 (a) (1), 201, 301, and 401 may be transferred among such sections, except that not more than 10 per centum of the funds available under any such section may be transferred from that section; and funds made available under sections 101 (a) (2), 203, 302 (a), and 402 may be transferred among such sections, except that not more than 10 per centum of the funds available under any such section may be transferred from that section. Funds so transferred shall be consolidated with the funds ayailable under the section to which they are transferred.

“SEC. 702. UNEXPENDED BALANCES.—The Mutual Security Act of 1951, as amended, is amended by adding after section 545 the following new section:

" 'Unexpended balances " "SEC. 546. The unexpended balance under each paragraph of title III, Mutual Security, of the Supplemental Appropriation Act, 1953, is hereby authorized to be continued available for its original purposes through June 30, 1954, and may be consolidated with the appropriate fiscal year 1954 appropriation made for the same general purpose under the authority of this Act.'

“SEC. 703. ESCAPEES.–Paragraph 101 (a) (1) of title I (relating to Europe) of the Mutual Security Act of 1951, as amended, is amended (1) by deleting the word 'similarly' before the word 'determined', (2) by inserting for any Communist-dominated or communist-occupied areas of Asia' immediately after 'Austria,' and before 'and any other countries absorbed by the Soviet Union', and (3) by striking out 'and to the security of the United States and inserting in lieu thereof 'or to the security of the United States'.

“SEC. 704. MILITARY AID IN THE NEAR EAST AND AFRICA.-Section 202 of the Mutual Security Act of 1951, as amended, is amended by inserting '(a)' after 'Sec. 202.', and by adding at the end thereof the following new subsection:

“'(b) There is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed $50,000,000 to be available, whenever the President determines that such action is essential for the purpose of this Act, in order to provide assistance, pursuant

to the provisions of the Mutual Defense As. "'(4) The Director for Mutual Security military assistance, to any economically unsistance Act of 1949, as amended, in the area shall cause studies to be made from time derdeveloped area, such funds may be used of the Near East and Africa. Such assistance to time for the purpose of determining under the applicable provisions of section may be furnished to any organization created whether further reductions in personnel are 503 (b) (3) or the applicable provisions of pursuant to a regional defense arrangement feasible and consistent with the accomplish-. the Act for International Development. in the area, to any nation in the general area ment of the purposes of this Act.

Where administrative arrangements, includparticipating in such an arrangement, or to “'(5) After July 1, 1953, the following ing provisions relating to compensation and any other nation in the general area which categories of civilian employees and mili allowances of personnel, authorized under the President determines to be of direct im tary personnel carrying out programs under section 503 (b) (3), differ from those authorportance to the defense of the area and the Mutual Defense Assistance Act of 1949, ized by the Act for International Developwhose increased ability to defend itself the as amended, shall be in addition to the per ment, the Director may make use of arrangePresident determines to be important to the sonnel ceiling established under paragraph ments authorized under either statute, in security of the United States (any such de (2) of this subsection:

carrying out such programs, except that betermination to be reported forthwith to the “'(A) Civilian employees and military per fore extending the provisions of section 109 Committee on Foreign Relations of the Sen sonnel carrying out such programs in the (a) of the Economic Cooperation Act of 1948, ate, the Committee on Foreign Affairs of the Associated States of Cambodia, Laos, and as amended, to countries in which programs House of Representatives, and the Commit Vietnam, over and above the number so en authorized under the Act for International tees on Armed Services of the Senate and of gaged before July 1, 1953,

Development are being carried out, the Dithe House of Representatives). No assiste (B) Civilian employees and military per rector will secure the approval of the Secreance shall be furnished under this subsection sonnel carrying out such programs for any tary of State.' unless the recipient nation has agreed (1) countries in which no such programs were "(f) USE OF LOCAL CURRENCY.that the equipment, materials, or services in operation on July 1, 1953,

“(1) Strike out the next to the last senprovided will be used solely to maintain its "(C) Civilian employees and military per tence of section 521 (relating to administrainternal security, its legitimate self-defense, sonnel carrying out such programs for inter tive expenses). or to permit it to participate in the defense national organizations and headquarters es “(2) Add after section 547 the following of the area, or in United Nations collective tablished after July 1, 1953.'

new section: security arrangements and measures, and (2) “(b) SPECIAL USE OF FUNDS.—Amend secthat it will not undertake any act of aggres tion 513 (b) (relating to special use of funds)

'United States use of foreign currency sion against any other nation.' to read as follows:

“ 'SEC. 548. (a) The several amounts other"SEC. 705. AUTHORITY FOR ASSISTANCE TO “'(B) Not more than $100,000,000 of the wise authorized by this Act to be appropri: KOREA.—The first sentence of section 302 (a) funds made available under this Act, of ated are authorized to be increased by (relating to economic aid and technical as which not more than $20,000,000 may be al amounts which shall not, in the aggregate, sistance) of the Mutual Security Act of 1951, located to any one country, may be used in exceed $98,396,000. as amended, is amended by striking out '(but any fiscal year by the President, to be ex “ '(b) Amounts appropriated pursuant to not including the Republic of Korea)'. pended, without regard to the requirements any authorization contained in this Act are

"SEC. 706. Title V (relating to organization of this Act, or any other Act for which funds authorized to be made available for purchase and general provisions) of the Mutual Secu are authorized by this Act, in furtherance of foreign currencies (including foreign currity Act of 1951, as amended, is further of the purposes of such Acts, when the Presi rencies or credits owed to or owned by the amended as follows:

dent determines that such use is important United States): Provided, That such curren“(a) PERSONNEL CEILING EXEMPTION FOR to the security of the United States. The cies or credits are authorized to be made NEW MILITARY ASSISTANCE PROGRAMS.—Amend President shall notify the Committee on available for use, without reimbursement to section 504 (d) (relating to reduction in

Foreign Relations of the Senate and the the Treasury, for liquidation of obligations personnel) to read as follows:

Committee on Foreign Affairs of the House legally incurred against such currencies prior '(d) (1) Ninety days after the enactment of Representatives upon making any such to July 1, 1953.' of the Mutual Security Act of 1952, the numdetermination.'

(g) NEAR EAST REFUGEES.—Add after secber of civilian employees who are United

"(c) GUARANTIES.-Amend section 520 (re tion 548 the following new section: States citizens, receiving compensation or lating to investment guaranties) to read as

Near East refugees allowances from the administrative expense

follows: appropriations authorized by this Act, em

'Guaranties

" "SEC. 549. (a) In order to contribute to ployed in the United States and overseas by “ 'SEC. 520. Funds realized from the sales of

the peace and stability of the Near East in or assigned to the Mutual Security Agency, notes pursuant to section 111 (c) (2) of the

particular and of the world in general, the Economic Cooperation Act of 1948, as amend

Director for Mutual Security shall, in conor employed by or assigned to the Department of State or the Department of Defense ed, shall be available for making guaranties

sultation with the Secretary of State, make of investments in accordance with the ap

a survey of the refugee situation in the Near for carrying out programs the appropriations for which are authorized by this Act, and the

East and report the results of the survey to plicable provisions of sections 111 (b) (3) and 111 (c) (2) of the Economic Cooperation

the Congress within one hundred fifty days military personnel assigned to such programs, shall be in the aggregate at least Act of 1948, as amended, in any country with

after the Mutual Security Act of 1953 is 5 per centum less than the number so em which the United States has agreed to in

enacted, together with recommendations for stitute the guaranty program, notwithstand

seeking a solution. In the making of such ployed or assigned on June 1, 1952, except for ing the provisions of section 511 of this Act.'

report and recommendations, especial consuch personnel of the Department of Defense

“(d) TERMINATION OF PROGRAM.-Amend

sideration shall be given to a program which engaged in the manufacturing, repair, re

would utilize the services and talents of these habilitation, packing, handling, crating, or

section 530 (relating to the expiration of the delivery of materiel.

refugees to develop and expand the resources Mutual Security Program) by striking out “(2) One hundred twenty days after the 'twelv months' and 'twelve-month' wher

of the area, including its water resources. enactment of the Mutual Security Act of ever appearing therein and inserting in lieu

“ '(b) In carrying out his duties under

this section, the Director for Mutual Security 1953, the number of civilian employees who thereof twenty-four months' and 'twentyare United States citizens, receiving com

shall consult with the Committee on Foreign four-month', respectively, and by inserting pensation or allowances from the adminis before the period at the end of subsection

Relations of the Senate and the Committee

on Foreign Affairs of the House of Repretrative expense appropriations authorized by (a) the following: ‘: Provided, That such this Act, employed in the United States and part of the equipment, materials, and serv

sentatives, and shall keep these committees overseas by or assigned to the Director for ices referred to above as is to be transferred

constantly and fully informed of the action Mutual Security or the Mutual Security to recipient countries under the Mutual De

which he takes to carry out the provisions of Agency or employed by or assigned to the fense Assistance Act of 1949, as amended, or

this section'." the Act of May 22, 1947, as amended, may be

“(h) USE OF SURPLUS AGRICULTURAL COMDepartment of State or the Department of Defense and other participating agencies for so transferred until June 30, 1957, and that

MODITIES.-Add after section 549 the followcarrying out programs the appropriations for

part of the funds referred to above which is ing new section: which are authorized by this Act shall be

appropriated to carry out such Acts may be 'Use of surplus agricultural commodities in the aggregate at least 10 per centum less obligated for the purposes set forth above,

“ 'SEC. 550. (a) Not less than $100,000,000 than the number so employed or assigned to and for liquidating operations under this

and not more than $250,000,000 of the funds comparable positions on January 31, 1953, proviso, until June 30, 1957: Provided, That

authorized to be appropriated under this Act except for such personnel of the Depart

guaranties authorized under section 111 (b) ment of Defense engaged in the manufactur(3) of the Economic Cooperation Act of

shall be used, directly or indirectly, to finance

the purchase of surplus agricultural coming, repair, rehabilitation, packing, handling, 1948, as amended, may be issued until June

modities, or products thereof, produced in crating, or delivery of materiel. 30, 1957, out of any funds remaining available

the United States. for that purpose'. “'(3) After the Director has determined

“ (b) The President is authorized to enter the reduction to be effected in each agency

(e) UNDERDEVELOPED AREAS.-Add after sec

into agreements with friendly countries for under paragraph (2), the determination as tion 546 the following new section:

the sale and export of such surplus agriculto which individual employee shall be re

« 'Underdeveloped areas

tural commodities under conditions negotained shall be made by the head of the “ 'SEC. 547. Whenever funds are made avail tiated by him with such countries and to agency concerned.

able under this Act for assistance, other than accept in payment therefor local currency

for the account of the United States. In pendable undertaking to pay the full amount (1) of subsection (a) of this section, under' negotiating agreements for the sale of such of such contract or the cost of such rehabili. and inserting in lieu thereof the word commodities, the President shall

tation which will assure the United States 'Under'. “‘(1) take special precaution to safeguard against any loss on the contract, or rehabili. "(b) Section 115 (k) of the Economic Coagainst the substitution or displacement of tation work, and (B) shall make funds operation Act of 1948, as amended, is reusual marketings of the United States or available in such amounts and at such times pealed. Nothing in this subsection shall be friendly countries, and to assure to the as may be necessary to meet the payments construed to prevent the carrying out of any maximum extent practicable that sales required by the contract or the rehabilita commitment or agreement entered into purprices of such commodities are consistent tion work in advance of the time such pay-. suant to such section 115 (k) prior to the with maximum world market prices of like ments are due, in addition to the estimated date of enactment of this Act." commodities of similar quality, and to ob amount of any damages and costs that may And the Senate agree to the same, tain the recommendations of the Secretary accrue from the cancellation of such con.

R. B. CHIPERFIELD, of Agriculture in carrying out the provisions tract or rehabilitation work: Provided, That

JOHN M. VORYS, of this subsection; the total amount of outstanding contracts

WALTER H. JUDD, “(2) use private trade channels to the under this subsection, less the amounts

JAS. P. RICHARDS, maximum extent practicable; which have been paid to the United States

LAURIE BATTLE, “'(3) give appropriate emphasis to under- by such nations, shall at no time exceed Managers on the Part of the House. developed and new market areas; $700,000,000.'

ALEXANDER WILEY, “'(4) obtain assurance that the purchas “(d) LOANS OF EQUIPMENT.--Amend sec

H. ALEXANDER SMITH, ing countries will not resell or transship to tion 411 (d) (containing definitions) to read

BOURKE B. HICKENLOOPER, other countries or use for other than domes as follows:

WILLIAM F. KNOWLAND, tic consumption commodities purchased “'(d) The term "services” shall include

WALTER F. GEORGE, under this program without specific ap any service, repair, training of personnel, or

THEODORE FRANCIS GREEN, proval by the President. technical or other assistance or information

JOHN SPARKMAN, "(c) Notwithstanding section 1415 of the necessary to effectuate the purposes of this Supplemental Appropriation Act, 1953, or any Act, including loans of limited quantities of

Managers on the Part of the Senate. other provision of law, the President shall equipment for designated periods solely for use the proceeds of such sales for the pur- test and study purposes.'

STATEMENT pose of this Act, giving particular regard to "SEC. 708. The remaining provisions of the

The managers on the part of the House at the following purposesEconomic Cooperation Act 1948, as

the conference on the disagreeing votes of “'(1) for providing military assistance to amended (22 U. s. C. 1503-1519), are further the two Houses on the amendment of the countries or mutual defense organizations amended as follows:

Senate to the bill (H. R. 5710) to amend eligible to receive assistance under this Act; “(a) TERM OF GUARANTIES.-Amend sec further the Mutual Security Act of 1951, as

"'(2) for purchase of goods or services in tion 111 (b) (3) (relating to guaranties) by amended, and for other purposes, submit the friendly countries;

striking out 'which guaranties shall termi- following statement in explanation of the “'(3) for loans, under applicable pro- nate not later than fourteen years from the effect of the action agreed upon by the convisions of this Act, to increase production of date of enactment of this Act', and by insert

ferees and recommended in the accompanygoods or services, including strategic mate- ing in lieu thereof 'which guaranties shall be ing conference report: rials, needed in any country with which an

limited to terms not exceeding twenty years The Senate struck out all of the House agreement was negotiated, or in other from the date of issuance.'

bill after the enacting clause and inserted a friendly countries, with the authority to use “(b) COUNTERPART LOANS.-Amend the last substitute amendment. The committee of currencies received in repayment for the proviso of section 115 (b) (6) (relating to conference has agreed to a substitute for purposes stated in this section or for de counterpart funds) to read as follows: And both the House bill and the Senate amendposit to the general account of the Treasury provided further, That whenever funds from ment. Except for clarifying, clerical, and of the United States;

such special account are used by a country necessary conforming changes, the differ“'(4) for developing new markets on a to make loans, all funds received in repay ences are noted below: mutually beneficial basis; ment of such loans prior to termination of

pa

THE FUND AUTHORIZATIONS “(5) for grants-in-aid to increase pro assistance to such country shall be reused duction for domestic needs in friendly only for such purposes as shall have been

The total amount authorized in the House countries;

agreed to between the country and the Gov. bill was $4,998,732,500. The Senate amend“(6) for purchasing materials for United ernment of the United States.'

ment authorized $5,318,732,500. The differ

ence "(c) USE OF LOCAL CURRENCY.-Amend sec

between the two States stockpiles.

Houses was "'(d) In carrying out the provisions of tion 115 (h) by striking out 'including and $320,000,000. this section, the President shall take special inserting in lieu thereof the following: 'and, The committee of conference has agreed on precaution to safeguard against the dis

without regard to section 1415 of the Supple an authorization of $5,157,232,500. Thus the placement of foreign exchange earnings mental Appropriations Act, 1953, for'.

Senate authorization was reduced by $161,which would otherwise accrue to the United

"SEC. 709. UNITED NATIONS TECHNICAL CO

500,000; the House authorization was inStates or any friendly nations. OPERATION PROGRAMS.-Amend the last proviso

creased by $158,500,000. "'(e) The President is authorized to en in section 404 (b) of the Act for Interna The conference agreement carries $3,581,ter into such agreements with third coun tional Development by striking out the word 523,000 for military assistance for all areas tries receiving goods accruing from the 'fiscal' and inserting in lieu thereof the word and $934,000,000 for mutual defense financproceeds of sales made pursuant to this sec'calendar.'

ing. The military assistance authorization tion as he deems necessary to effectuate the "SEC. 710. AMENDMENT AND REPEAL OF is $100,000,000 more than that carried in the purpose of this Act.' CERTAIN PROVISIONS.—(a) (1) Section 516 (a)

House bill, but represents a $100,000,000 re"SEC. 707. The Mutual Defense Assistance of the Mutual Security Act of 1951, as

duction in the Senate amount. The sum auAct of 1949, as amended (22 U. S. C. 1571 amended, is amended to read as follows: thorized for mutual defense financing is 1604), is further amended as follows:

“'(a) The Congress recognizes the vital $50,000,000 more than that authorized by the (a) EXCESS EQUIPMENT.-Immediately be role of free enterprise in achieving rising House. Likewise, this represents a $50,000,fore the period in the next to last sentence levels of production and standards of living 000 reduction in the Senate amount, of section 403 (d) (relating to limitation on essential to the economic progress and de

The authorization agreed upon for the furnishing of excess equipment), insert a fensive strength of the free world. Accord- basic materials program is $7,500,000, reprecomma and the following: ‘and after June ingly, it is declared to be the policy of the senting an equal adjustment between the 30, 1953, by an additional $200,000,000'. United States, in furtherance of the objec- Senate authorization of $15,000,000 and the

(b) SALES OF MILITARY EQUIPMENT.-Strike tives of this Act, to encourage the efforts of absence of any sum in the House bill. The out the word 'The' where it appears at the other free countries in fostering private

conference agreement retains the House aubeginning of section 408 (e) (1) (relating to initiative and competition, in discouraging thorization of $9,000,000 for the Children's sales of military equipment) and insert in monopolistic practices, in improving the Fund, a reduction of $4,000,000 from the Senlieu thereof the following: 'Notwithstanding technical efficiency of their industry, agri

ate authorization. On the other hand, the the provisions of section 530 (a) of the Mu culture, and commerce, and in the strength. agreement includes the Senate figure of $1,tual Security Act of 1951, as amended, the'. ening of free labor unions; and to encourage 825,000 for ocean freight on relief packages, "(c) DEPENDABLE UNDERTAKING PROCE American enterprise in contributing to the

an increase of $1,000,000 over the House DURE.

Amend the last sentence of section economic strength of other free countries figure. 408 (e) (2) (relating to sales of military through private investment abroad and the

TABLE equipment) to read as follows: 'Before a con exchange of ideas and technical information This table shows the sums carried in the tract is entered into, or rehabilitation work on the matters covered by this subsection.' proposed Mutual Security Act of 1953, as reis undertaken, such nation, or international "(2) Section 516 (b) of such Act, as quested by the executive branch, as altered military organization or headquarters, shall amended, is amended by striking out the by the House of Representatives and by the (A) provide the United States with a de words "To accomplish the purpose of clause Senate, and as agreed to in conference.

[blocks in formation]

I. Military assistance:
A. Europe:

$2,534, 323,000 $2, 216, 923, 000 $317, 400,000 $2, 179, 689, 870 $2,079, 689, 870 $100,000,000 $2, 179, 689, 870 $100,000,000 $2, 129, 689, 870 B. Near East and Africa.

469, 200, 000 448, 600,000 20, 600,000 C. Asia and Pacific..

405, 212, 637 305, 212, 637 100,000,000 1,001,000,000 1,001,000,000

405, 212, 637 100,000,000 355, 212, 637 D. American Republics

1,081, 620, 493 1,081, 620, 493

1,081, 620, 493 20,000,000 15, 000, 000

1,081, 620, 493 5,000,000 15, 000, 000 15, 000, 000

15,000,000

15, 000, 000 Total.

4,024, 523,000 3,681, 523,000 343,000,000 3,681, 523,000 3,481,523, 000 200,000,000 3,681, 523, 000 200,000,000 3,581, 523,000 II. Mutual defense financing: A. Europe. 1300,000,000 1 300,000,000

1 300,000,000 B. Formosa and Indochina.

200,000,000 100,000,000 1 95,000,000

1 300,000,000 100,000,000 184,000,000 11,000,000

250,000,000 C. French NATO military produc

1 84,000,000 84,000,000

1 84,000,000

84,000,000 tion.

100,000,000 100,000,000 D. British NATO aircraft produc

100,000,000 100,000,000

100,000,000

100,000,000 tion.-100,000,000 100,000,000

100,000,000 E. Equipment and support of forces

100,000,000
100,000,000

100,000,000
in Indochina...
400,000,000 400,000,000
400,000,000 400,000,000

400,000,000

400,000,000 Total...

995,000,000 984,000,000 11,000,000 984,000,000 884, 000, 000) 100,000,000 984,000,000 100,000,000 934,000,000 III. Mutual special weapons planning.

250,000,000 250,000,000
250,000,000 100, 000, 000 150,000,000 100, 000, 000

100,000,000 IV. Technical assistance: A. Near East and Africa...

143, 792, 500 1 43, 792, 500 B, Asia and Pacific

43, 792, 500 43, 792, 500

1 43, 792, 500 172, 100, 000 172, 100, 000

43, 792, 500 C. American Republics..

72, 100, 000 72, 100, 000

172, 100, 000 1 24, 342, 000 1 24, 342, 000

72,100,000 24, 342, 000 24, 342, 000

1 24, 342, 000

24, 342, 000 Total..... 140, 234, 500 140, 234, 500 140, 234, 500 140, 234, 500

140, 234, 500

140, 234, 500 V. Basic materials. ...

25, 000, 000 25, 000, 000

25, 000, 000

25, 000, 000 15, 000, 000 15, 000, 000 7,500,000 VI. Special regional assistance: A. Near East and Africa. 194, 000, 000 194, 000, 000

194,000,000 B, India and Pakistan..

194, 000, 000

194,000,000

194, 000, 000 94, 400,000 94, 400,000 94, 400, 000 94, 400,000

94, 400, 000

94, 400, 000 Total... 288, 400,000 288, 400,000 288, 400,000 288, 400,000

288, 400,000

288, 400,000 VII. Multilateral organizations: A. Movement of migrants.

10,000,000 10,000,000 B. Multilateral technical coopera

10,000,000 10,000,000

10,000,000

10,000,000 tion.

13,750,000 13,750,000 C. Children's welfare..

13,750,000 13, 750,000

13,750,000 9,000,000

13,750,000 9,000,000

9,000,000 D, Ocean freight..

9,000,000

13,000,000 $4,000,000 1, 825, 000

9,000,000 1, 825,000 E. U. N. Korean Reconstruction

1, 825, 000 825, 000 $1,000,000 1, 825, 000 1,000,000 1, 825, 000 Agency. 71,000,000 71,000,000 71,000,000 71,000,000

71,000,000

71,000,000 Total....

105, 575,000
105, 575,000

105, 575, 000 104, 575, 000 1,000,000 109, 575,000 5,000,000 105, 575, 000 Total in bill....

5,828, 732, 500 5,474, 732, 500 354,000,000 5, 474, 732, 500 4,998, 732, 500 2 476,000,000 5, 318, 732, 500 3 320,000,000 45, 157, 232, 500

1 Not separately identified.

4 The bill also authorizes the appropriation of $98,396,000 of local currencies. This · House below Executive request-column 2 less column 5.

authorization makes no demand on the U. S. Treasury. 3 House below Senate-column 7 less column 5. EUROPEAN DEFENSE COMMUNITY (SECTION 101) and materials may be procured, but delivery $15,000,000 but carried no provision for local The House bill contained a provision re

of the assistance shall not take place until currency. Thus, the differences between the quiring that not less than 50 percent of the the organization is formed.

two Houses were (1) $15,000,000 and (2), funds authorized for military assistance to MUTUAL DEFENSE FINANCING-EXPLORATION FOR

$25,000,000 equivalent in local currency. Europe in fiscal year 1954 be made avail MINERALS AND PETROLEUM (SECTION 201

The Senate accepted the House language able only for the European Defense Com (A))

on local currency. This makes possible the munity. The Senate amendment contained

The Senate amendment in connection with

use of local currency equal to $25,000,000 for a similar provision, except that it granted defense support, economic and technical as

development purposes. The conferees addiscretion to the President to withhold up to

justed the dollar authorization to $7,500,000 sistance for the National Government of the $1,000,000,000 of such funds.

to cover the purchase of necessary supplies The conference agreement in effect comRepublic of China and the Associated States

and equipment from dollar sources, includof Cambodia, Laos, and Vietnam, contained bines the features of both versions by re

ing the United States. quiring that 50 percent of the fiscal year sion of assistance in the form of exploration a provision explicitly authorizing the inclu

INDIA AND PAKISTAN (SECTION 502) 1954 military assistance funds for Europe and development of mineral and petroleum shall be used for equipment and materials

The House bill required the President, resources. The House bill did not refer to when he specifies the terms and conditions to be transferred to the European Defense

such form of assistance. In view of the im on which special regional economic assistCommunity or to the countries which be

portance attached by the committee of concome members thereof, unless the Congress ference to the development of these resources

ance is to be furnished India and Pakistan,

to include conditions and assurances “to en. upon Presidential recommendation other

in this vital area, the conference agreement able the countries * * to make greater wise provides. Thus, should the organization retains the Senate language. not come into being and should the Presi

progress toward solving their mutual probdent consider that conditions might never

BASIC MATERIALS (SECTION 402)

lems in cooperation with each other.” The

Senate amendment contained no such mantheless in his judgment warrant release of The executive branch had requested $25,

date. The conference agreement retains the the funds, materials, and equipment ear 000,000 and an equal amount in local curmarked for the organization, the Congress rency for basic materials projects. This sum

quoted language, but includes it as one of would reconsider the provision upon the rec

the positive purposes of the assistance rather is for the purpose of initiating projects that ommendation of the President. The con

than as a specific condition. will increase the production of raw mateference agreement expresses the importance rials and food, particularly in Africa and the OCEAN FREIGHT ON RELIEF SHIPMENTS (SECTION which the United States attaches to the Eu Far East, and thereby contribute to the ex

604) ropean Defense Community and gives as- pansion of trade and the economic stability Both the House bill and the Senate amendsurance that the formation of the organiza of large areas of the free world.

ment authorized an appropriation for use in tion will be followed by United States as The House did not authorize the dollar paying ocean freight charges on relief shipsistance in helping the EDC contribute to amount but left undisturbed the use of local ments by voluntary relief agencies. the collective security effort. Equipment currency. The Senate amendment included amount in the House bill was $825,000, while

XCIX-546

that contained in the Senate was $1,825,000.
In view of the fact that evidence presented
subsequent to House action indicates that
some 90 million pounds of dried milk have
been made available by the Department of
Agriculture to these agencies for distribution
abroad, the conference agreement contains
the Senate amount, which should enable the
agencies involved to distribute the milk and
other relief supplies.
UNITED NATIONS KOREAN RECONSTRUCTION

AGENCY (SECTION 605)
Both the House bill and the Senate amend-
ment authorized contributions to the United
Nations Korean Reconstruction Agency
(UNKRA), but the Senate amendment au-
thorized contributions to UNKRA “or such
other agency as the President may direct.”
The conference agreement adopts the Senate
language, thus permitting flexibility to meet
possible changed conditions, adding after the
phrase "such other agency" the words "for
relief and rehabilitation in Korea”.

TRANSFERS OF FUNDS (SECTION 701) The House bill permitted the President to transfer up to 10 percent of the total of the funds provided for the purpose of furnishing military assistance and defense support to Europe from one of these purposes to the other in that area. The House bill also permitted 10 percent of the funds available for assistance to each area to be transferred to other areas to be used for the same purpose. In both types of transfer, in applying the 10-percent figure, unexpended balances of prior appropriations were not included.

The Senate amendment increased the transferability of funds between military and economic assistance within Europe from 10 to 15 percent and provided for a transfer of 15 percent of the funds made available pursuant to the authorizations for Mutual Defense Financing, Technical Assistance, and Multilateral Organizations

among those chapters.

The Senate amendment also made eligible for transfer the special assistance to France, the United Kingdom, for Indochina, to the Near East, and to India and Pakistan, while the House bill excluded such special assistance from transfer.

The conference agreement adopts the provisions of the House bill, except that unexpended balances of prior appropriations are to be included in computing the 10-percent figure. MILITARY AID IN THE NEAR EAST AND AFRICA

(SECTION 704) The committee of conference agreed that the fluid situation in the Near East warranted special consideration. The House bill carried an authorization of $305,212,637 for military assistance; the Senate amendment, $405,212,637-a difference of $100,000,000. The conferees adjusted these sums and agreed upon $355,212,637.

Of this sum, $50,000,000 is earmarked to provide military assistance to a regional defense organization or any members thereof. To grant maximum flexibility he may also draw on the $50,000,000 for additional assistance to any nation in the general area which he “determines to be of direct importance to the defense" of that area and “whose increased ability to defend itself the President determines to be important to the security of the United States." When he has made such a determination, he shall so advise the Senate Committee on Foreign Relations and the House Committee on Foreign Affairs.

It is further provided that such military assistance as is given under this section will be contingent upon adequate safeguards as to its use by the recipient nation. These will include provisions that the equipment "will be used solely to maintain its internal security, its legitimate self-defense, or to permit it to participate in the defense of the area, or in United Nations collective

security arrangement and measures

basis for new legislation. The development It will also be required to give assurances of new legislation will take time. By early “that it will not undertake any act of ag next year we will be prepared, with approgression against any other nation."

priate consultation with the Congress, to This earmarked $50 million is in addition recommend such legislation." to the provisions of existing law for trans

NEAR EAST REFUGEES (SECTION 706 (G)) fer of 10 percent of area military funds to countries other than Greece, Turkey, and

The Senate accepted the House provision Iran.

for a survey of the Near Eastern refugee situ

ation. The House agreed that the results of PERSONNEL CEILINGS (SECTION 706 (A))

the survey should be reported to the ConLast year the Congress enacted a provision, gress within 150 days in lieu of the 90 days proposed by the Committee on Foreign Af required in the House bill. The conferees fairs, requiring a 10 percent reduction of were of the opinion that this additional time United States civilian administrative per was necessary to permit a thorough examsonnel connected with the Mutual Security ination of the complex conditions and probProgram. This year the committee again lems involved in the refugee situation. proposed, and the House accepted, an addi

USE OF SURPLUS AGRICULTURAL COMMODITIES tional 10 percent reduction. The Senate

(SECTION 706 (H)) had no such provision in its amendment

Both the House bill and the Senate amend. and accepted the House provision. It is estimated that a reduction in force of at least

ment included provisions for the use of sur560 will be effected through the inclusion of

plus agricultural commodities in connection this section.

with supplying assistance to foreign counThe House bill stipulated that sạch a re

tries. The language of the House bill stated

the intent of Congress that surplus agriculduction be effected not later than 90 days af

tural commodities should be substituted for ter the enactment into law of this bill. The pending reorganization of the administra

other forms of economic aid to the extent tion of foreign aid raises complex adminis

feasible. The Senate provision authorized trative problems. For this reason the com

an arrangement for converting dollars aumittee of conference agreed to a period of

thorized for military assistance into foreign 120 days in which to effect the reduction.

currencies. The dollars received by the forThe administration anticipates the initia

eign nation were to be spent by agreement tion of military assistance programs in other

for United States farm products and the countries not presently receiving such assist.

local currencies received by the United States ance under the Mutual Security Program;

would be spent for military end items in the the expansion of assistance to Indochina;

purchasing countries. and military assistance to defense organiza

The committee of conference agreed to a

modification of both provisions. The contions such as the European Defense Community. Both Houses permitted the addi

ference agreement requires that of the funds tion of military personnel above existing

authorized not less than $100,000,000 and not ceilings to carry out such new and aug

more than $250,000,000 “shall be used directmented programs. The Senate amendment

ly or indirectly, to finance the purchase of also allowed additional civilian personnel

surplus agricultural commodities.” The proidentified with these programs. The House

vision for "indirect” financing is to permit bill contained no such provision. The De

reimbursement of the Commodity Credit Corpartment of Defense as well as the State

poration for commodities supplied from its Department will be required to administer

stocks. and give support to these programs. For

Sale of agricultural surpluses for local cur. this reason the conference agreement adopts

rencies is authorized. Such currencies are to the Senate language.

be kept in a special United States account

and may be utilized for the purposes set forth TERMINATION OF PROGRAM (SECTION 706 (D)) in the legislation without appropriation by

The Senate amendment extended the date the Congress. for termination of the Mutual Security Pro

Local currencies so acquired may be spent gram from June 30, 1954, to June 30, 1955, only for the purposes of the Mutual Security and provided an additional period of 1 year Act, giving particular regard to the providing for liquidating transactions financed with of military assistance to countries or mutual funds other than those authorized pursuant

defense organizations and to other specified to the Mutual Defense Assistance Act. A purposes. period of 2 years after 1955 was authorized Special precautions are to be taken to prefor liquidating Mutual Defense Assistance vent disposing of surpluses in a manner Act transactions since military equipment,

which would displace normal market arsuch as planes and ships, involves a long rangements and to insure that maximum use lead time.

will be made of private trade channels. The House bill made no change in the date

The conference agreement carries out the of termination of the program but extended

objectives of the provisions of the House bill the period for completing transactions from

and the Senate amendment while providing 12 to 24 months.

more specific and detailed procedures for the The committee of conference agreed to

attainment of these objectives. retain the date June 30, 1954, for termina SALES OF MILITARY EQUIPMENT (SECTION tion of the program as provided in existing

707 (B)) law but extended the time available for

Provision was made in both the House bill completing transactions involving Mutual

and the Senate amendment for authorizing Defense Assistance Act funds until June 30,

the sale of military equipment by the United 1957, and for 2 years in the case of non States Government to other nations beyond Mutual Defense Assistance Act funds. The

June 30, 1954, the date of termination conference agreement also authorizes the is

of the Mutual Security Program provided suance until June 30, 1957, of guaranties. under existing law. This was considered

The June 30, 1954, date was adhered to, especially necessary because of the need of not because the committee of conference

foreign governments to buy parts and combelieved that all forms of assistance to other ponents for weapons and equipment prenations would finally terminate on that date, viously supplied to them by the United but because they felt that a basic overhaul States and obtainable only in the United ing of the legislation dealing with foreign States. The House bill contained language aid is necessary before that date. The new to restrict such sales after the termination administration recognizes this. In his mes of the Mutual Security Program to parts sage submitting Reorganization Plan No. 7

and components required for maintenance to Congress President Eisenhower said:

and repair purposes. The Senate amend. "Our organization for the conduct of for ment did not contain such limiting proeign affairs has been built upon a patchwork visions. The conference agreement retains of statutes which needs careful restudy as a the language of the Senate amendment.

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