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4 SEC. 605. Title V (relating to organization and general
5 provisions) of the Mutual Security Act of 1951, as amended, is further amended as follows:
SEC. 605. (a) PERSONNEL CEILING EXEMPTION FOR
NEW MILITARY ASSISTANCE PROGRAMS.-Amend section
9 504(d) (relating to reduction in personnel) by changing
10 the period at the end of the section to a colon and by adding the following proviso: "Provided further, That after July 1, 1953, the following categories of civilian employees and military personnel carrying out programs under the Mutual 14 Defense Assistance Act of 1949, as amended, shall be in 15 addition to the personnel ceiling established under the second 16 and third provisos of this section:
"(1) Civilian employees and military personnel carrying out such programs in the Associated States of Cambodia, Laos and Vietnam, over and above the number so engaged before July 1, 1953,
"(2) Civilian employees and military personnel carrying out such programs for any countries in which no such programs were in operation on July 1, 1953, Page 14:
"(3) Civilian employees and military personnel carrying out such programs for international organizations and headquarters established after July 1, 1953." (b) SPECIAL USE OF FUNDS.-Amend section 513 (b) (relating to special use of funds) to read as follows:
"Not more than $100,000,000 of the funds made avail7 able under [the Mutual Security Act of 1952] this Act, of 8 which not more than $20,000,000 may be allocated to any one country, may be used [in any fiscal year or supplied] 10 by the President, to be expended, without regard to [any 11 conditions as to eligibility contained in] the requirements 12 of this Act, or any other Act for which funds are authorized 13 by this Act, in furtherance of the purposes of such Acts, 14 when the President determines that such use is important to 15 the security of the United States. The President shall notify 16 the Committee on Foreign Relations of the Senate and the 17 Committee on Foreign Affairs of the House of Representa18 tives upon making any such determination."
(c) GUARANTIES.-Amend section 520 (relating to 20 investment guaranties) to read as follows:
"SEC. 520. Funds realized from the sales of notes pursuant to section 111 (c) (2) of the Economic Cooperation Act of 1948, as amended, shall be available for making 24 guaranties of investments in accordance with the applicable 25 provisions of sections 111(b) (3) and 111 (c) (2) of
1 the Economic Cooperation Act, as amended, in any [area 2 in which assistance is authorized by this Act] country with which the United States has agreed to institute the guaranty program, notwithstanding the provisions of section 511." (d) TERMINATION OF PROGRAM.-Amend section
6 530(a) (relating to the expiration of the Mutual Security 7 Program) to read as follows:
"SEC. 530. (a) After June 30  1958, or after the date [specified in of the passage of] a concurrent resolu10 tion by the two Houses of Congress before such date, none of the authority conferred by this Act or by the Mutual Defense Assistance Act of 1949, as amended (22 U.S.C. 1571-1604), may be exercised; except that [during the twelve months] following such date
(1) equipment, materials, commodities, and services
Page 15 Continued
with respect to which procurement for, shipment to, or delivery in a recipient country had been authorized prior to such date may be transferred to such country, and
(2) funds appropriated under this authority of this Act [shall, if obligated before such date, remain available for expenditure for three years following such date, and shall be available during such period for obligation: may be obligated during such twelve-month period] (A) for the necessary expenses of procurement, shipment, delivery, and other activities essential to such
transfers, and (B) [and shall remain available during
(e) UNDERDEVELOPED AREAS.-Add the following new 5 section 548:
"SEC. 548. Whenever funds are made available under
7 this Act for assistance, other than military assistance, to any 8 economically underdeveloped area, such funds may be used under the applicable provisions of section 503(b)(3) or 10 the applicable provisions of the Act for International Develop11 ment. Where administrative arrangements, including pro12 visions relating to compensation and allowances of personnel, 13 authorized under section 503(b)(3) differ from those authorized by the Act for International Development, the Director may make use of arrangements authorized under either 16 statute, in carrying out such programs, except that before extending the provisions of section 109 (a) of the Economic Cooperation Act of 1948, as amended, to countries in which 19 programs authorized under the Act for International De20 velopment are being carried out, the Director will secure the 21 approval of the Secretary of State."
(f) USE OF LOCAL CURRENCY.—
(1) Strike out the next to the last sentence of section
24 521 (relating to administrative expenses).
"SEC. 549. USE OF FOREIGN CURRENCY OR
CREDITS.-(a) The several amounts otherwise authorized by this Act to be appropriated are authorized to be increased by 4 amounts which shall not, in the aggregate, exceed
"(b) Amounts appropriated pursuant to any authorization contained in this Act are authorized to be made available 8 for purchase of foreign currencies (including foreign cur9 rencies or credits owed to or owned by the United States): Provided, That such currencies or credits are authorized to be made available for use, without reimbursement to the 12 Treasury, for liquidation of obligations legally incurred 13 against such currencies prior to July 1, 1953."
14 "SEC. 606. The Mutual Defense Assistance Act of 1949, 15 as amended (22 U.S.C. 1571-1604), is further amended 16 as follows:
(a) ASSISTANCE TO NATO COUNTRIES.-Add the fol18 lowing proviso before the period at the end of section 101 19 (relating to military assistance to NATO countries): “: Pro20 vided, That military assistance may be furnished for pur21 poses not included in such defense plans upon a determination 22 by the President that it will further the purposes and policies 23 of this Act".
(b) EXCESS EQUIPMENT.—Immediately before the
25 period in the next to last sentence of section 403 (d) (re
1 lating to limitation on furnishing of excess equipment), add
4 (c) SALES OF MILITARY EQUIPMENT.—Insert at the
(d) DEPENDABLE UNDERTAKING PROCEdure.— Amend the last sentence of section 408(e) (2) (relating to sales of military equipment) to read as follows: "Before a contract is entered into or rehabilitation work is undertaken, such nation, or international military organization or head14 quarters, shall (A) provide the United States with a de15
pendable undertaking to pay the full amount of such contract 16 which will assure the United States against any loss on the 17 contract, or rehabilitation work, and (B) shall make funds 18 available in such amounts and at such times as may be neces19 sary to meet the payments required by the contract or the 20 rehabilitation work in advance of the time such payments are 21 due, in addition to the estimated amount of any damages and 22 costs that may accrue from the cancellation of such contract 23 or rehabilitation work: Provided, That the total amount of 24 outstanding contracts under this subsection, less the amounts Page 19:
which have been paid to the United States by such nations,
(e) LOANS OF EQUIPMENT.-Amend section 411 (d)
(containing definitions) to read as follows:
"The term 'services' shall include any service, repair,
6 training of personnel, or technical or other assistance or in
7 formation necessary to execute the purposes of this Act,
8 including loans of equipment for test and study purposes.” SEC. 607. The remaining provisions of the Economic
10 Cooperation Act of 1948, as amended (22 U.S.C. 15031519), are further amended as follows:
(a) TERM OF GUARANTIES.-Amend section 111 (b) (3) (relating to guaranties) as follows:
"(3) by making, under rules and regulations to be pre15 scribed by the Administrator, guaranties * ** [which
16 guaranties shall terminate not later than fourteen years from 17 the date of enactment of this Act] which guaranties shall be 18 limited to terms not exceeding twenty years from the date of issuance;".
(b) GUARANTIES.-Amend section 111 (b) (3) (v) (relating to guaranties) as follows:
"(v) the guaranty to any person shall be limited to
23 assuring one or both of the following: *** (2) the com24 pensation in United States dollars for loss of all or any part
of the investment in the approved project which shall be found by the Administrator to have been lost to such person
3 by reason of expropriation or confiscation by action of the
4 government of a participating country or by reason of war, 5 revolution, or civil disorder."
(c) COUNTERPART LOANS.-Amend the last proviso
of section 115(b) (6) (relating to counterpart funds) to
And provided further, That whenever
10 funds from such special account are used by a country to 11 make loans, all funds received in repayment of such loans 12 [shall be redeposited in such special account] prior to termi13 nation of assistance to such country shall be reused only for 14 such purposes as shall have been agreed to between the coun15 try and the Government of the United States."
TEXT OF H.R. 5710, MUTUAL SECURITY ACT OF 1953, AS REPORTED BY THE COMMITTEE ON FOREIGN AFFAIRS TO THE HOUSE OF REPRESENTATIVES, JUNE 16, 1953 1
A BILL To amend further 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, That this Act may be cited as the "Mutual Security Act of 1953".
CHAPTER I-MILITARY ASSISTANCE
SEC. 101. AUTHORIZATION OF APPROPRIATION.-The Mutual Security Act of 1951, as amended, is amended by adding at the end thereof the following new section:
"AUTHORIZATION OF APPROPRIATIONS
"SEC. 540. There is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed $2,079,689,870 to be available under section 101(a)(1) (relating to military assistance for Europe), of which not less than 50 percent shall be made available only for the organization referred to in clause (C) of section 2(b); $305,212,637 to be available under section 201 (relating to military assistance for the Near East and Africa); $1,081,620,493 to be available under section 301 (relating to military and other assistance for Asia and the assistance for Latin America)."
CHAPTER II-MUTUAL DEFENSE FINANCING
SEC. 201 AUTHORIZATION OF APPROPRIATIONS.-(a) The Mutual Security Act of 1951, as amended, is amended by adding after section 540 the following new section:
"SEC. 541. There is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed $200,000,000 to carry out the provisions of
1 Legislative history: H.R. 5710, a bill to amend further the Mutual Security Act of 1951, as amended, and for other purposes, was introduced by Mr. Chiperfield on June 15, 1953. Prior to its introduction by Mr. Chiperfield, formal consideration of the proposed legislation to extend the Mutual Security Act began with a joint meeting of the House Foreign Affairs and Senate Foreign Relations Committees on May 5, 1953. Subsequently, the House Committee on Foreign Affairs continued to hear witnesses on the proposed legislation May 6 through June 6, 1953. Executive session meetings on various aspects of the program had been held by several of the subcommittees as well as the full committee during March and April. On June 9, the committee began marking up a draft bill, which was approved June 11 and introduced by the chairman, Hon. Robert B. Chiperfield, June 15 [H.R. 5710]. On June 15, the committee ordered H.R. 5710 favorably reported, and on June 16, the report was filed [H. Rept. 5691. On June 17, minority views were filed [part 2 of H. Rept. 5691. Thereafter, on June 19, the House passed H.R. 5710, amended, by a vote of 280 yeas to 109 nays. On July 1, the Senate, by voice vote, passed the bill H.R. 5710 after striking all after the enacting clause and inserting in lieu thereof the provisions of its bill, S. 2128, as amended. On July 2, the Senate then requested a conference, to which the House agreed. The conference committee reached agreement after meeting July 7-10 and the managers on the part of the House filed their report July 10, 1953 [H. Rept. 7701. On July 13, the conference report was adopted in the House by a vote of 221 yeas to 109 nays and in the Senate by a voice vote. On July 16, 1953, the bill was approved by the President and became Public Law 118.
section 101(a)(2) (relating to defense support and economic assistance for Europe), and not to exceed $84,000,000 to carry out the provisions of section 302(a) (relating to defense support, economic and technical assistance) for the National Government of the Republic of China and the Associated States of Cambodia, Laos, and Vietnam."
(b) Such Act, as amended, is further amended by inserting after section 101 the following new section:
"SEC. 102. There is hereby authorized to be appropriated to the President for the fiscal year 1954, to be made available on such terms and conditions (including transfer of funds) as he may specify, (1) not to exceed $100,000,000 for manufacture in France of artillery, ammunition, and semjautomatic weapons required by French forces for the defense of the North Atlantic area, and (2) 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."
(c) Such Act, as amended, is further amended by inserting after section 303 the following new section:
"SEC. 304. There is hereby authorized to be appropriated to the President for the fiscal year 1954, to be made available on such terms and conditions (including transfer of funds) as he may specify, not to exceed $400,000,000 for the procurement of equipment, materials, and services (as defined in section 411 of the Mutual Defense Assistance Act of 1949, as amended) which are required by and are made available to, or are necessary for the support of, the forces of the Associated States of Cambodia, Laos, and Vietnam and the forces of France located in such Associated States."
CHAPTER III-MUTUAL SPECIAL WEAPONS PLANNING
SEC. 301. AUTHORIZATION OF APPROPRIATION.-The Mutual Security Act of 1951, as amended, is amended by adding after section 541 the following new section:
"SEC. 542. There is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed $100,000,000 for the purpose of furnishing special weapons to nations eligible to receive military assistance under this Act or to the international organizations referred to in section 2(b)(A) and 2(b) (C) of this Act: Provided, That, prior to the obligation of funds for this purpose, the President shall determine that such obligation is of direct importance to 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 amended: And provided further, That, prior to the transfer of such weapons, the President shall determine (1) that the recipient is adequately prepared to safeguard the security of such weapons; (2) that the transfer of such weapons will be of direct importance to the security interest of the United States; and (3) that such transfer will further the purposes and policies of the Mutual Defense Assistance Act of 1949, as amended. Nothing contained in this section shall alter, amend, revoke, repeal, or otherwise affect the provisions of any law restricting, limiting, or prohibiting the transfer of any such weapons. Notwithstanding any other provisions of this Act, funds made available pursuant to this section may be used only for the purpose of this section."
CHAPTER IV-TECHNICAL ASSISTANCE
SEC. 401. AUTHORIZATION OF APPROPRIATION.-The Mutual Security Act of 1951, as amended, is amended by adding after section 542 the following new section:
"SEC. 543. There is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed $43,792,500 to carry out the provisions of section 203 (relating to economic and technical assistance for the Near East and Africa); $72,100,000 to carry out the provisions of section 302 (a) (relating to defense support, economic and technical assistance) other than for the National Government of the Republic of China and the Associated States of Cambodia, Laos, and Vietnam; and $24,342,000 to carry out the provisions of section 402 (relating to technical assistance for Latin America)."