CHAPTER V-SPECIAL REGIONAL ECONOMIC ASSISTANCE

SEC. 501. NEAR EAST AND AFRICA.-Section 206 (relating to refugees) of the Mutual Security Act of 1951, as amended, is 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 not to exceed $194,000,000 to be used, on such terms and conditions as he may specify, to furnish special economic assistance designed to promote the economic development of the area, for relief and rehabilitation of refugees in the area, and for other types of economic assistance to assist in maintaining economic and political stability in the area. The applicable provisions of the Act for International Development (64 Stat. 204; 22 U.S.C. 1557), except the provisions relating to the purpose for which assistance may be given, or of section 503(b)(3) of this Act, shall apply to the expenditure of funds pursuant to this section to the extent that they are not inconsistent with the purposes of this section."

SEC. 502. INDIA AND PAKISTAN.-Section 302 (relating to economic and technical assistance for Asia and the Pacific) of the Mutual Security Act of 1951, as amended, is amended by redesignating subsection (b) as subsection (c), and by inserting after subsection (a) the following new subsection (b): "(b) In order to further the purpose of this Act in India and Pakistan, there is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed $94,400,000 to be used, on such terms and conditions as he may specify (which shall include conditions and assurances to enable the countries designated in this subsection to make greater progress toward solving their mutual problems in cooperation with each other), to furnish special economic assistance designed to promote the economic development of such countries, and to assist in maintaining economic and political stability therein. The applicable provisions of the Act for International Development, except the provisions relating to the purpose for which assistance may be given, or of section 503(b)(3) of this Act, shall apply to the expenditure of funds pursuant to this section to the extent that they are not inconsistent with the purposes of this section."

CHAPTER VI-MULTILATERAL ORGANIZATIONS

SEC. 601. MOVEMENT OF MIGRANTS.-Section 534 (relating to the movement of migrants) of the Mutual Security Act of 1951, as amended, is amended by adding at the end thereof the following new sentence: "There is hereby authorized to be appropriated to the President not to exceed $10,000,000 for contributions during the calendar year 1954 to the Intergovernmental Committee for European Migration."

SEC. 602. MULTILATERAL TECHNICAL COOPERATION.-The Mutual Security Act of 1951, as amended, is amended by adding after section 543 the following new section:

"SEC. 544. There is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed $13,750,000 for multilateral technical cooperation under section 404 (b) of the Act for International Development."

SEC. 603. CHILDREN'S WELFARE.-The Mutual Security Act of 1951, as amended, is amended by adding after section 544 the following new section:

"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."

SEC. 604. OCEAN FREIGHT.-Section 535 (relating to the payment of ocean freight changes on relief shipments) of the Mutual Security Act of 1951, as amended, is amended by adding at the end thereof the following new sentence: "There is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed $825,000 for use in paying ocean freight charges under section 117 (c) of the Economic Cooperation Act of 1948, as amended."

SEC. 605. UNITED NATIONS KOREAN RECONSTRUCTION AGENCY.-Section 303(a) (relating to Korean relief) of the Mutual Security Act of 1951, as amended, is amended as follows:

(a) Add at the end the following new sentence: "There is hereby 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, strike out "$67,500,000" and insert in lieu thereof "$40,750,000".

CHAPTER VII-FURTHER CHANGES IN EXISTING MUTUAL SECURITY LEGISLATION

SEC. 701. PACIFIC PACT.-Section 2(b) of the Mutual Security Act of 1951, as amended, is amended by adding at the end thereof the following new sentence: "The Congress favors the negotiation of a Pacific Pact, consistent with the provisions of the United Nations Charter, for the common defense of the free peoples of the Far East, South Asia, and the Pacific Ocean area, and the participation therein of the United States."

SEC. 702. TRANSFERS OF FUNDS.-(a) Section 101 (b) of the Mutual Security Act of 1951, as amended, is amended (1) by striking out "granted pursuant to" both times it appears therein and inserting in lieu thereof "made available under", and (2) by striking "this section" out of the first proviso and inserting in lieu thereof "section 546 of this Act".

(b) Section 202 of such Act, as amended, is amended by striking out "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 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 available under the section to which they are transferred. The determination of amounts authorized to be transferred under this subsection shall be made without reference to any balances of prior appropriations continued available pursuant to section 546 of this Act."

SEC. 703. 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. 704. 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 "or 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. 705. AUTHORITY FOR ASSISTANCE TO KOREA.-The first sentence of section 302 (a) (relating to economic aid and technical assistance) of the Mutual Security Act of 1951, as amended, is amended by striking out "(but not including the Republic of Korea)".

SEC. 706. Title V (relating to organization and general provisions) of the Mutual Security Act of 1951, as amended, is further amended as follows:

(a) PERSONNEL CEILING EXEMPTION FOR NEW MILITARY ASSISTANCE PROGRAMS.— Amend section 504(d) (relating to reduction in personnel) to read as follows: "(d) (1) On and after January 1, 1954, the number of United States citizens employed by the Mutual Security Agency shall be at least 10 per centum less than the number employed by the Mutual Security Agency on June 30, 1953.

"(2) Ninety days after the enactment of the Mutual Security Act of 1952, the number of civilian employees who are United States citizens, receiving compensation or allowances from the administrative expense appropriations authorized by this Act, employed in the United States and overseas by or assigned to the Mutual Security Agency, or employed by or assigned to the Department of State or the Department of Defense for carrying out programs the appropriations for which are authorized by this Act, and the military personnel assigned to such programs, shall be in the aggregate at least 5 per centum less than the number so employed or assigned on June 1, 1952, except for such personnel of the Department of Defense engaged in the manufacturing, repair, rehabilitation, packing, handling, crating, or delivery of materiel.

"(3) Ninety days after the enactment of the Mutual Security Act of 1953, the number of civilian employees who are United States citizens, receiving compensation or allowances from the administrative expense appropriations authorized by this Act, employed in the United States and overseas by or assigned to the Mutual Security Agency or employed by or assigned to the Department of State or the Department of Defense for carrying out programs the appropriations for which are authorized by this Act shall be in the aggregate at least 5 per centum less than the number so employed or assigned on January 31, 1953, except for such personnel of the Department of Defense engaged in the manufacturing, repair, rehabilitation, packing, handling, crating, or delivery of materiel.

"(4) After the Director has determined the reduction to be effected in each agency under paragraph (3), the determination as to which individual employee shall be retained shall be made by the head of the agency concerned.

"(5) The Director for Mutual Security shall cause studies to be made from time to time for the purpose of determining whether further reductions in personnel are feasible and consistent with the accomplishment of the purposes of this Act.

"(6) After July 1, 1953, the following categories of military personnel carrying out programs under the Mutual Defense Assistance Act of 1949, as amended, shall be in addition to the personnel ceiling established under paragraph (2) of this subsection:

"(A) 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,

"(B) Military personnel carrying out such programs for any countries in which no such programs were in operation on July 1, 1953,

"(C) 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:

"(b) Not more than $100,000,000 of the funds made available under this Act, of which not more than $20,000,000 may be allocated to any one country, may be used in any fiscal year by the President, to be expended, without regard to the requirements of this Act, or any other Act for which funds are authorized by this Act, in furtherance of the purposes of such Acts, when the President determines that such use is important to the security of the United States. The President shall notify the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives upon making any such determination."

(c) REPEAL.-Repeal section 516.

(d) GUARANTIES.-Amend section 520 (relating to investment guaranties) to read as follows:

"GUARANTIES

"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 guaranties of investments in accordance with the applicable provisions of sections 111(b)(3) and 111 (c) (2) of the Economic Cooperation Act of 1948, as amended, in any country with which the United States has agreed to institute the guaranty program, notwithstanding the provisions of section 511 of this Act."

(e) TERMINATION OF PROGRAM.-Amend section 530 (relating to the expiration of the Mutual Security Program) by striking out "twelve months" and "twelve-month" wherever appearing therein, and by inserting in lieu thereof "twenty-four months" and "twenty-four-month", respectively.

(f) UNDERDEVELOPED AREAS.-Add after section 546 the following new section:

"UNDERDEVELOPED AREAS

"SEC. 547. Whenever funds are made available under this Act for assistance, other than military assistance, to any economically underdeveloped area, such funds may be used under the applicable provisions of section 503(b)(3) or the applicable provisions of the Act for International Development. Where administrative arrangements, including provisions relating to compensation and allowances of personnel, 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 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 programs authorized under the Act for International Development are being carried out, the Director will secure the approval of the Secretary of State." (g) USE OF LOCAL CURRENCY.

(1) Strike out the next to the last sentence of section 521 (relating to administrative expenses).

(2) Add after section 547 the following new section:

"UNITED STATES USE OF FOREIGN CURRENCY

"SEC. 548. (a) The several amounts otherwise authorized by this Act to be appropriated are authorized to be increased by amounts which shall not, in the aggregate, exceed $98,396,000.

"(b) Amounts appropriated pursuant to any authorization contained in this Act are authorized to be made available for purchase of foreign currencies (including foreign currencies 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 Treasury, for liquidation of obligations legally incurred against such currencies prior to July 1, 1953."

(h) NEAR EAST REFUGEES.—Add after section 548 the following new section: "SEC. 549. (a) In order to contribute to the peace and stability of the Near East in particular and of the world in general, the Director for Mutual Security shall, in consultation with the Secretary of State, make a survey of the refugee situation in the Near East and report the results of the survey to the Congress within ninety days after the Mutual Security Act of 1953 is enacted, together with recommendations for seeking a solution. In the making of such report and recommendations, especial consideration shall be given to a program which would utilize the services and talents of these refugees to develop and expand the resources of the area, including its water resources.

"(b) In carrying out his duties under this section, the Director for Mutual Security shall consult with the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives, and shall keep these committees constantly and fully informed of the action which he takes to carry out the provisions of this section."

SEC. 707. The Mutual Defense Assistance Act of 1949, as amended (22 U.S.C. 1571-1604), is further amended as follows:

(a) EXCESS EQUIPMENT.-Immediately before the period in the next to last sentence of section 403(d) (relating to limitation on furnishing of excess equipment), insert a comma and the following: "and after June 30, 1953, by an additional $200,000,000”.

(b) SALES OF MILITARY EQUIPMENT.-Amend section 408 (e) by adding at the end thereof the following new paragraph:

"(4) The provisions of section 530(a) of the Mutual Security Act of 1951 (relating to expiration of program) shall not apply in the case of the transfer, or procurement for transfer, under this subsection, of parts, components, and equipment required for the maintenance or repair of military end items (as

referred to in section 506(c) of the Mutual Security Act of 1951) previously supplied under this Act or the Mutual Security Act of 1951."

(c) DEPENDABLE UNDERTAKING PROCEDURE.-Amend the last sentence of section 408(e) (2) (relating to sales of military equipment) by striking out "such nation" and by inserting in lieu thereof "such nation, or international military organization or headquarters,".

(d) LOANS OF EQUIPMENT.-Amend section 411 (d) (containing definitions) to read as follows:

"(d) The term 'services' shall include any service, repair, training of personnel, or technical or other assistance or information necessary to effectuate the purposes of this Act, including loans of limited quantities of equipment for designated periods solely for test and study purposes." SEC. 708. The remaining provisions of the Economic Cooperation Act of 1948, as amended (22 U.S.C. 1503-1519), are further amended as follows:

(a) TERM OF GUARANTIES.-Amend section 111(b) (3) (relating to guaranties) by striking out "which guaranties shall terminate not later than fourteen years from the date of enactment of this Act", and by inserting in lieu thereof "which guaranties shall be limited to terms not exceeding twenty years from the date of issuance".

(b) GUARANTIES.-Amend section 111(b) (3)(v) (relating to guaranties) by inserting immediately after "participating country" the following: "or by reason of war, revolution, or civil disorder".

(c) COUNTERPART LOANS.-Amend the last proviso of section 115(b)(6) (relating to counterpart funds) by striking out "shall be redeposited in such special account", and by inserting in lieu thereof the following: "prior to termination of assistance to such country shall be reused only for such purposes as shall have been agreed to between the country and the Government of the United States".

(d) USE OF LOCAL CURRENCY.-Amend section 115 (h) by striking out "including" and inserting in lieu thereof the following: "and, without regard to section 1415 of the Supplemental Appropriations Act, 1953, for".