section may, when determined by the President to be necessary for the purpose of this Act, be transferred to and consolidated with the appropriation authorized by paragraph 302(a). 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.

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.

TITLE V-ORGANIZATION AND GENERAL PROVISIONS

SEC. 504. (a)

APPOINTMENT AND TRANSFER OF PERSONNEL

[(d) On and after January 1, 1952, 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 Economic Cooperation Administration on August 31, 1951: Provided, That 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: Provided further, That, 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: Provided further, That after the Director has determined the reduction to be effected in each agency, the determination as to which individual employees shall be retained shall be made by the head of the agency concerned.]

(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 80 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.

SPECIAL USE OF FUNDS

SEC. 513. (a) Whenever the President determines it to be necessary for the purpose of this Act, [not to exceed 10 per centum of the funds made available under any title of this Act may be transferred to and consolidated with funds made available under any other title of this Act in order to furnish, to a different area, assistance of the kind for which such funds were available before transfer.] 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 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. Whenever the President makes any such determination, he shall forthwith notify the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives. In the case of the transfer of funds available for military purposes, he shall also forthwith notify the Committee on Armed Services of the Senate and House of Representatives.

(b) Not more than $100,000,000 of the funds made available under [the Mutual Security Act of 1952] this Act, of which not more than $20,000,000 may be allocated to any one country, may be used [or supplied without regard to any conditions as to eligibility contained in this Act] 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.

[ENCOURAGEMENT OF FREE ENTERPRISE

[SEC. 516. (a) It is hereby declared to be the policy of the Congress that this Act shall be administered in such a way as (1) to eliminate the barriers to, and provide the incentives for, a steadily increased participation of free private enterprise in developing the resources of foreign countries consistent with the

policies of this Act, (2) to the extent that it is feasible and does not interfere with the achievement of the purposes set forth in this Act, to discourage the cartel and monopolistic business practices prevailing in certain countries receiving aid under this Act which result in restricting production and increasing prices, and to encourage where suitable competition and productivity, and (3) to encourage where suitable the development and strengthening of the free labor union movements as the collective bargaining agencies of labor within such countries.

[(b) To accomplish the purpose of clause (1) of subsection (a) of this section, under the coordination of the Director for Mutual Security, the Mutual Security Agency, cooperating with private business groups and governmental agencies to the fullest extent possible, shall encourage a greater participation by private capital in the guaranty program and shall develop broad criteria to facilitate such participation, including programs consistent with the purposes of the Act for International Development.

[(c) The Department of Commerce shall, in cooperation with such groups and agencies (including the International Bank for Reconstruction and Development), conduct a thorough study of the legal and other impediments, foreign and local, to private investment abroad, and the methods and means whereby those impediments can be removed or decreased and shall make recommendation thereon to the Director for Mutual Security.

[(d) The Department of State, in cooperation with other agencies of the Government concerned with private investment abroad, and taking into account the study and recommendations described in subsection (c) of this section, shall accelerate a program of negotiating treaties of commerce and trade, or other temporary arrangements where more suitable or expeditious, which shall include provisions to encourage and facilitate the flow of private investment to countries participating in programs under this Act.

[(e) The Technical Cooperation Administration, taking into account the study and recommendations described in subsection (c) of this section, shall encourage and facilitate a greater participation by private industrial groups or agencies in private contacts awarded by the Administration, and shall, in cooperation with the Department of Commerce and the Mutual Security Agency, find and draw the attention of private enterprise to opportunities for investment and development in underdeveloped areas.

[(f) The reports required by section 518 of this Act shall include detailed information on the implementation of this section.]

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 [area 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 of this Act.

ADMINISTRATIVE EXPENSES

SEC. 521. Funds made available for carrying out the provisions of title I of this Act shall be available for United States participation in the acquisition or construction of facilities in foreign countries for collective defense: Provided, That no part of such funds shall be expended for rental or purchase of land or for payment of taxes. Such funds shall also be available for the administrative expenses of carrying out the purposes of all of the titles of this Act, including expenses incident to United States participation in international security organizations and expenses in the United States in connection with programs authorized under the Act for International Development. [Any currency of any nation received by the United States for its own use in connection with assistance furnished by the United States may be used by any agency of the Government without reimbursement from any appropriation for the administrative and operating expenses of carrying out the purpose of this Act.] Funds made available for carrying out the purpose of this Act in the Federal Republic

of Germany may, as authorized in subsection 114 (h) of the Economic Cooperation Act of 1948, as amended (22 U.S.C. 1512(h)), be transferred by the President to any department or agency for the expenses necessary to meet the responsibilities and obligations of the United States in the Federal Republic of Germany.

EXPIRATION OF PROGRAM

SEC. 530. (a) After June 30, 1954, or after the date of the passage of a concurrent resolution 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] twenty-four months following such date equipment, materials, commodities, and services 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 funds appropriated under authority of this Act may be obligated during such [twelve-month] twentyfour-month period for the necessary expenses of procurement, shipment, delivery, and other activities essential to such transfer and shall remain available during such period for the necessary expenses of liquidating operations under this Act.

(b) At such time as the President shall find appropriate after such date, and prior to the expiration of the [twelve months] twenty-four months following such date, the powers, duties, and authority conferred by this Act and by the Mutual Defense Assistance Act of 1949, as amended, may be transferred for the purpose of liquidation to such other departments, agencies, or establishments of the Governments as the President shall specify, and the relevant funds, records, property and personnel may be transferred to the departments, agencies, or establishments to which the related functions are transferred.

MOVEMENT OF MIGRANTS

SEC. 534 In order to encourage further the movement of migrants from European countries having surplus population, there is hereby authorized to be appropriated to the President $9,240,500 for use in making contributions for the calendar year 1953 to the Provisional Intergovernmental Committee for the Movement of Migrants from Europe established at Brussels, Belgium, on December 5, 1951. 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.

OCEAN FREIGHT CHARGES ON RELIEF PACKAGES

SEC. 535. The authority to pay ocean freight charges on shipments of relief supplies and packages under section 117 (c) of the Economic Cooperation Act of 1948, as amended (22 U.S.C. 1515(c)), shall be continued and may be exercised after June 30, 1952, by any department or agency of the Government that the President may designate: Provided, That this authority shall hereafter also be applicable to relief shipments by voluntary nonprofit relief agencies registered with and approved by the Advisory Committee on Voluntary Foreign Aid to any country eligible for economic or technical assistance under this Act: And provided further, That not to exceed $2,587,500 are authorized to be appropriated to the President for the fiscal year 1953 for use in paying ocean freight charges under section 117 (c) of the Economic Cooperation Act of 1948, as amended. 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.

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 per centum 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 Pacific); and $15,000,000 to be available under section 401 (relating to military assistance for Latin America).

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 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.

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 sections 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.

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).

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. 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.

UNEXPENDED BALANCE

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 de consolidated with the appropriate fiscal year 1954 appropriation made for the same general purpose under the authority of this Act.

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