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APPENDIX II

COMMITTEE PRINT OF BILL TO FURTHER AMEND THE MUTUAL SECURITY ACT OF 1951; 83D CONGRESS, 1ST SESSION

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Mr.

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introduced the following bill; which was referred to the Committee on Foreign Affairs

[Additions to basic legislation in italic; deletions bracketed]

A BILL

To further amend the Mutual Security Act of 1951, as amended,
and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Mutual Security Act of 1953".

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CHAPTER I-MUTUAL DEfense Materiel and Training SEC. 101. AUTHORIZATION OF APPROPRIATION.—

7 Amend the Mutual Security Act of 1951, as amended, by 8 adding the following new section:

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"SEC. 540. There is hereby authorized to be approPage 2:

1 priated to the President for the fiscal year 1954 not to exceed 2 $3,681,523,000 to carry out the provisions of sections 101 (a) 3 (1) (relating to military assistance for Europe), 201 (re4 lating to military assistance for the Near East and Africa), 5 301 (relating to military and other assistance for Asia and 6 the Pacific), and 401 (relating to military assistance for 7 Latin America) of this Act, of which $2,179,689,870 is to 8 be available under section 101 (a) (1), $405,212,637 is to be available under section 201, $1,081,620,493 is to be 10 available under section 301, and $15,000,000 is to be available under section 401."

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CHAPTER II-MUTUAL DEFENSE FINANCING SEC. 201. AUTHORIZATION OF APPROPRIATIONS.14 Amend the Mutual Security Act of 1951, as amended, by 15 adding the following new sections:

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"SEC. 541. There is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed $984,18 000,000 to carry out the provisions of section 101(a) (2) 19 (relating to defense support and economic assistance for Eu20 rope), 102 (relating to defense production financing for 21 France and the United Kingdom), 302(a) (relating to de22 fense support, economic and technical assistance) (for the 23 National Government of the Republic of China and the As24 sociated States of Cambodia, Laos, and Vietnam), and 304 25 (relating to defense production financing) of this Act."

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"SEC. 102. Of the funds authorized by section 541 of

this Act, the President may make available, on such terms 3 and conditions, including transfer of funds, as he may specify 4 (a) not to exceed $100,000,000 for manufacture in France of artillery, ammunition, and semiautomatic weapons re

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6 quired by French forces for the defense of the North Atlantic area, and (b) not to exceed $100,000,000 for manufacture in the United Kingdom of military aircraft required by United Kingdom forces for the defense of the North Atlantic area."

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"SEC. 304. Of the funds authorized by section 541 of

12 this Act, the President may make available, on such terms and 13 conditions, including transfer of funds, as he may specify, 14 not to exceed $400,000,000 for the procurement of equipment, 15 materials, and services (as defined in section 411 (containing 16 definitions) of the Mutual Defense Assistance Act of 1949, 17 as amended), which are required by and are made available 18 to, or are necessary for the support of, the forces of France and the Associated States of Cambodia, Laos, and Vietnam located in such Associated States."

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CHAPTER III-MUTUAL SPECIAL WEAPONS PLANNING
SEC. 301. AUTHORIZATION OF APPROPRIATION.-

23 Amend the Mutual Security Act of 1951, as amended, by
24 adding the following new section:

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"SEC. 542. There is hereby authorized to be appro

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1 priated to the President for the fiscal year 1954 not exceed2 $250,000,000 for the purpose of furnishing special weapons

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to nations eligible to receive military assistance under this Act or to the international organizations referred to in section

5 2(b)(A) and 2(b) (C) of this Act: Provided, That, prior

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to the obligation of funds for this purpose, the President shall determine that such obligation is in the security interest of the United States and is in furtherance of the policies and purposes of the Mutual Defense Assistance Act of 1949, as 10 amended: And provided further, That, prior to the transfer 11 of such weapons, the President shall determine that (a) the 12 recipient is adequately prepared to safeguard the security of such weapons; (b) that the transfer of such weapons will be in the security interest of the United States; and (c) that such transfer will further the purposes and policies of the Mutual Defense Assistance Act. Nothing contained in this section shall alter, amend, revoke, repeal, or otherwise affect 18 the provisions of any law restricting, limiting, or prohibiting the transfer of any such weapons. Notwithstanding any 20 other provisions of this Act, funds made available pursuant to this section may be used only for the purpose of this section."

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SEC. 401. AUTHORIZATION OF APPROPRIATION— · Amend the Mutual Security Act of 1951, as amended, by 5 adding the following new section:

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"SEC. 543. There is hereby authorized to be appropri7ated to the President for the fiscal wear 1954 not to exceed 8 $140,234,500 to carry out the provisions of sections 203 (relating to economic and technical assistance for the Near East and Africa), 302(a) (relating to defense support, economic and technical assistance) (other than for the Nation alist Government of the Republic of non-Communist China 13 and the Associated States of Cambodia, Laos, and Vietnam), 14 and 402 (relating to technical assistance for Latin America)

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15 of this Act."

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SEC. 402. AUTHORIZATION OF APPROPRIATION FOR

17 BASIC MATERIALS.-At the end of section 514 (relating to
18 basic materials) of the Mutual Security Act of 1951, as
19 amended, add the following sentence: "There is hereby
20 authorized to be appropriated to the President for the fiscal
21 year 1954 not to exceed $25,000,000 to carry out the pro-
22 visions of this section."

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SEC. 403. SPECIAL ECONOMIC ASSISTANCE IN THE

2 NEAR EAST AND AFRICA.-Amend section 206 (relating

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to refugees) of the Mutual Security Act of 1951, as amended,
to read as follows:

"SEC. 206. In order to further the purpose of this Act

in the Near East and Africa, there is hereby authorized to
be appropriated to the President for the fiscal year 1954

8 not to exceed $194,000,000 to be used, on such terms and

9 conditions as he may specify, to furnish special economic

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10 assistance designed to promote the economic development of the area, for relief and rehabilitation of refugees in the area, 12 and for other types of economic assistance to assist in main13 taining economic and political stability in the area. The 14 applicable provisions of the Act for International Develop15 ment (64 Stat. 204; 22 U.S.C. 1557), except the pro

16 visions relating to the purpose for which assistance may be 17 given, or of section 503 (b) (3) of this Act, shall apply to

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the expenditure of funds pursuant to this section to the extent that they are not inconsistent with the purposes of this section." SEC. 404. SPECIAL ECONOMIC ASSISTANCE FOR INDIA AND PAKISTAN.- Amend section 302 (relating to economic 22 and technical assistance for Asia and the Pacific) of the 23 Mutual Security Act of 1951, as amended, by redesignating Page 7:

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subsection (b) as (c) and adding the following new sub-
section (b):

"(b) In order to further the purpose of this Act in India 4 and Pakistan, there is hereby authorized to be appropriated 5 to the President for the fiscal year 1954 not to exceed $94,6 400,000 to be used, on such terms and conditions as he may 7 specify, to furnish special economic assistance designed to 8 promote the economic development of such countries, and to 9 assist in maintaining economic and political stability therein. 10 The applicable provisions of the Act for International De11 velopment, except the provisions relating to the purpose for 12 which assistance may be given, or of section 503 (b) (3) of 13 this Act, shall apply to the expenditure of funds pursuant to 14 this section to the extent that they are not inconsistent with the 15 purposes of this section."

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CHAPTER V-MULTILATERAL ORGANIZATIONS

SEC. 501. MOVEMENT OF MIGRANTS.-Add the follow18 ing new sentence to section 534 (relating to the movement of 19 migrants) of the Mutual Security Act of 1951, as amended: 20 "There is hereby authorized to be appropriated to the Presi21 dent not to exceed $10,000,000 for contributions during the 22 calendar year 1954 to the Intergovernmental committee for 23 European Migration."

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SEC. 502. MULTILATERAL Technical Cooperation AND CHILDREN'S WELFARE.-Amend the Mutual Security 3 Act of 1951, as amended, by adding the following new

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sections:

"SEC. 544. There is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed

7 $13,750,000 for multilateral technical cooperation under section 404 (b) of the Act for International Development. "SEC. 545. There is hereby authorized to be appropriated to the President not to exceed $9,000,000 for contributions during the calendar year 1954 for the support of international children's welfare work in such manner and on such terms and conditions as he may deem to be in the interests of the United States."

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SEC. 503. OCEAN FREIGHT.-Add the following new

16 sentence to section 535 (relating to the payment of ocean 17 freight charges on relief shipments) of the Mutual Security 18 Act of 1951, as amended: "There is hereby authorized to be 19 appropriated to the President for the fiscal year 1954 not to 20 exceed $1,825,000 for use in paying ocean freight charges 21 under section 117 (c) of the Economic Cooperation Act of 22 1948, as amended."

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SEC. 504. UNITED NATIONS KOREAN RECONSTRUC

24 TION AGENCY.-Amend section 303 (a) (relating to Korean

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relief) of the Mutual Security Act of 1951, as amended,
as follows:

(a) Add the following new sentence: "There is hereby 4 authorized to be 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." (b) In the third sentence of section 303 (a) strike out "$67,500,000" and insert "$40,750,000".

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CHAPTER VI-FURTHER CHANGES IN EXISTING MUTUAL
SECURITY LEGISLATION

SEC. 601. Amend the Mutual Security Act of 1951, as 12 amended, by adding the following sections:

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"SEC. 546. Whenever the President determines it to be necessary for the purpose of this Act, (a) not to exceed 10 15 per centum of the aggregate of the appropriations made avail16 able for section 101 (a) (1) and section 541 of this Act, for any fiscal year, may be transferred between appropriations made available for either of such sections: Provided, That such 19 funds after transfer may be used only for the purposes of 20 sections 101 (a) (1) or 101 (a) (2) ; and (b) not to

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exceed 10 per centum of the funds made available pursuant to the authorization contained in any of chapters II, IV, 23 and V of the Mutual Security Act of 1953 for the fiscal

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1 year 1954 may be transferred to and consolidated with funds 2 made available pursuant to the authorization contained in any 3 other of such chapters. Whenever the President makes any

4 such determination, he shall forthwith notify the Committee on

5 Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives.

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"SEC. 547. The unexpended balance under each para8 graph of title III, Mutual Security, of the Supplemental 9 Appropriation Act, 1953, is hereby authorized to be

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June 30, 1954, and may be consolidated with the appropriate 12 fiscal year 1954 appropriation made for the same general purpose under the authority of this Act."

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SEC. 602. ESCAPEES.-Paragraph 101 (a) (1) of title 15 I (relating to Europe) of the Mutual Security Act of 1951, as

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16 amended, is amended by deleting the word "similarly" before 17 the word "determined" and by inserting in paragraph 101 18 (a) (1) "or any Communist-dominated or Communist19 occupied areas of Asia", after "and any other countries 20 absorbed by the Soviet Union", and, at the end of that 21 sentence, strike out "and to the security of the United States" and insert "or to the security of the United States". SEC. 603. MILITARY AID IN THE NEAR EAST AND

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Title II (relating to the Near East and Africa)

of the Mutual Security Act of 1951, as amended, is further
amended as follows:

(a) Amend section 201 (relating to military assistance) 4 by inserting “and by furnishing other military assistance in 5 the area of the Near East and Africa", after "Greece, Turkey, 6 and Iran", and by inserting “and for furnishing other military 7 assistance in the area of the Near East and Africa pursuant to 8 section 202" after "and for furnishing assistance to Iran 9 pursuant to the provisions of the Mutual Defense Assistance 10 Act of 1949, as amended (22 U.S.C. 1571-1604)".

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(b) Amend section 202 (relating to military assistance) to read as follows [section is substantially rewritten, so 13 changes are not shown]:

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"Whenever the President determines that such action

is essential for the purpose of this Act, he may utilize the 16 funds made available pursuant to section 201 in order to 17 provide assistance, pursuant to the provisions of the Mutual 18 Defense Assistance Act of 1949, as amended, in the area of 19 the Near East and Africa. Such assistance may be fur20 nished to any organization created pursuant to a regional 21 defense arrangement in the area to which the United States 22 shall have become a party, to any nation in the general area 23 participating in such an arrangement, or to any other nation 24 in the general area which the President determines to be of Page 12:

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1 direct importance to the defense of the area and whose in2 creased ability to defend itself the President determines to 3 be important to the security of the United States (any such 4 determination to be reported forthwith to the Committee on 5 Foreign Relations of the Senate, the Committee on Foreign 6 Affairs of the House of Representatives, and the Committees 7 on Armed Services of the Senate and of the House of Rep8 resentatives). No assistance shall be furnished under this section unless the recipient nation (1) has agreed (a) that the equipment, materials, or services provided will be used solely to maintain its internal security, its legitimate self12 defense, or to permit it to participate in the defense of the 13 area, or in the United Nations collective-security arrange14 ments and measures, and (b) that it will not undertake any 15 act of aggression against any other nation, and (2) has com16 plied with such of the conditions set forth in section 511(a) 17 of this Act and section 402 of the Mutual Defense Assistance 18 Act of 1949, as amended, as the President shall find to be 19 essential to the accomplishment of the purposes of this 20 section."

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21 SEC. 604. AUTHORITY FOR ASSISTANCE TO KOREA.— 22 Title III (relating to Asia and the Pacific) of the Mutual 23 Security Act of 1951, as amended, is further amended as

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1 follows: In the first sentence of section 302 (a) (relating 2 to economic aid and technical assistance) strike out "but 3 not including the Republic of Korea)".

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