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has been in the face of these sad facts of military life? We agree with Secretary of State Dulles in his statement before the committee that "we must not disguise from ourselves that the international situation is critical," and we must not disguise from ourselves and from this House the fact that the international situation is just as critical now, in fact more critical, than it was last year. There has been no progress toward the goal of security-quite the contrary, the progress has been in the opposite direction.

This is not a very happy development, in view of the statement of General Ridgway during his testimony before the committee:

"The assessment of our defensive strength makes it clear that the time has not yet come when the nations of the North Atlantic Treaty Organization can relax their efforts."

We therefore feel in considering this bill that certain questions should and must be asked: What magic formula is there in this program that is going to transform millions of insecure people throughout the world into valiant, invig. orated, and dependable allies? Is it United States money? No. We have tried that one many times-with no success. Is it United States armed might? No. Our forces have been bearing the brunt of the fight in Korea on behalf of the principles of sovereignty, independence, and freedom-and still the peoples of Asia waver. Is it sharing our know-how with less fortunate peoples in the underdeveloped areas? No. Despite the demonstration of our friendship, we cannot be certain how many of them would succumb to Communist influence and persuasion.

It would therefore seem to us particularly essential that we evaluate the present program in the light of what similar programs in the past have failed to accomplish; and from the point of view of whether or not it offers fulfillment of pledges made to the American people.

It becomes particularly important to scrutinize this program on the basis of what Secretary Dulles himself has said. Here are his words in his opening statement before the Senate and House committees:

we

"Our mutual security planning must be and is long-range planning must think in terms of policies and programs that we can afford to live with for what may be a very long time."

We are embarking upon a program for "what may be a very long time." Let us take just a little time to consider what we are doing in this bill, how we are doing it, and last, but not least, at what tremendous cost to an already overburdened American taxpayer.

LAWRENCE H. SMITH.
MARGUERITE STITT CHURCH.
E. ROSS ADAIR.

ALVIN M. BENTLEY.

APPENDIX V

TEXT OF H.R. 5710, MUTUAL SECURITY ACT OF 1953, as PASSED THE SENATE WITH AN AMENDMENT JULY 1, 1953

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

[Deletions bracketed; amendment of the Senate in italics]

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 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)."

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 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 semiautomatic 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. It is the intention of Congress where feasible under this Act, that the Act shall be so administered that surplus foods, grains and commodities now or hereafter held by the United States Government shall be substituted for other forms of economic aid specified in this Act, and shall be paid for out of funds herein authorized."

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 organization referred to in section 2(b)(A) and 2(b) (C) of this Act: Provided, That, prior to the obligations 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)."

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 are 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 charges 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. TRANSFER 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: "Wherever 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 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 (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) 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 appropri ations 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.

"(2) 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 allowance from the administrative expense appropriations authorized by this Act, employed in the United States and overseas by or assigned to the Director for Mutual Security or the Mutual Security Agency or employed by or assigned to the Department of State or the Department of Defense and other participating agencies for carrying out programs the appropriations for which are authorized by this Act shall be in the aggregate at least 10 per centum less than the number so employed or assigned to comparable positions on January 31, 1953, excetpt for such personnel of the Department of Defense engaged in the manufacturing, repair, rehabilitation, packing, handling, crating or delivery of materiel.

"(3) 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.

"(4) 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.

"(5) After July 1, 1953, the following categories of military personnel carrying out programs under the Mutual Defense Assistance Act of 1949, as amended,

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