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(c) REPEAL.-(1) Subsection (a) of section 516 is repealed.

(2) Amend subsection (b) of such section by striking out the words "to accomplish the purpose of clause (1) of subsection (a) of this section, under" and inserting in lieu thereof the word "Under".

(3) Section 115(k) of the Economic Cooperation Act of 1948, as amended, is repealed. Nothing in this subsection shall be construed to prevent the carrying out of any commitment or agreement entered into pursuant to said section 115(k) prior to the date of enactment of this Act.

(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 430(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"] [Type in bold bracket is canceled type.]

"That this Act may be cited as the “Mutual Security Act of 1953".

CHAPTER I-MUTUAL Defense Material and Training

SEC. 101. AUTHORIZATION OF APPROPRIATION.—Amend the Mutual Security Act of 1951, as amended, by adding the following new section:

SEC. 540. (a) There is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed $3,681,523,000 to carry out the provisions of sections 101(a)(1) (relating to military assistance for Europe), 201 (relating to military assistance for the Near East and Africa), 301, (relating to military and other assistance for Asia and the Pacific), and 401, (relating to military assistance for Latin America) of this Act, of which $2,179,689,870 is authorized to be appropriated under section 101(a)(1), $405,212,637 is authorized to be appropriated under section 201, $1,081,620,493 is authorized to be appropriated under section 301, $15,000,000 is authorized to be appropriated under section 401: Provided, however, That the President may in his discretion, withhold not to exceed $1,000,000,000 of the assistance authorized to be made available for fiscal year 1954 under section 101(a)(1) until such time as the treaty establishing the European Defense Community, referred to in clause (C) of section 2(b), comes into effect.

"(b) Such amounts of the funds authorized to be appropriated by subsection (a) of this section as may be specified in the Act appropriating such funds shall be used by the President, under such rules and regulations as he may prescribe, to provide military assistance to countries eligible to receive such assistance under this Act through currency conversion agreements entered into in accordance with this subsection. The President is authorized to enter into an agreement with any such country which shall provide—

"(1) for the conversion into currency of the United States of such amounts of the currency of such country as may be specified in such agreement, and for the use of such United States currency for the purchase of agricultural commodities, livestock, meat and meat products, produced in the United States which are determined by the Secretary of Agriculture to be in surplus supply;

"(2) for the use of the currency of such country received by the United States under such agreement to procure military equipment, materials, and services in such country for the purpose of carrying out the provisions of this Act;

"(3) satisfactory assurance that an amount of dollar exchange, equivalent to the dollar exchange used by such country during the fiscal year beginning July 1, 1952, for the importation from the United States of each commodity covered by the agreement, will be made available by such country during the fiscal year beginning July 1, 1953, from sources other than dollar exchange made available under this section of the Act for the purchase of each such commodity; and

"(4) that the purchase of agricultural commodities produced in the United States with dollar exchange provided under such agreement shall be conducted through private trade channels."

CHAPTER II-MUTUAL DEFENSE FINANCING

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.-Amend the Mutual Security Act of 1951, as amended, by adding the following new sections:

SEC. 541. There is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed $984,000,000 to carry out the provisions of sections 101(a)(2) (relating to defense support and economic assistance for Europe), 102 (relating to defense production financing for France and the United Kingdom), 302(a) (relating to defense support, economic and technical assistance, including the exploration and development of mineral and petroleum resources) for the National Government of the Republic of China and the Associated States of Cambodia, Laos, and Vietnam, and 304 (relating to defense production financing) of this Act."

SEC. 102. Of the funds authorized by section 541 of this Act, the President may make available, on such terms and conditions, including transfer of funds, as he may specify (a) not to exceed $100,000,000 for manufacture in France of artil lery, ammunition, and semiautomatic weapons required by French forces for the defense of the North Atlantic area, and (b) not to exceed $100,000,000 for manu

facture in the United Kingdom of military aircraft required by United Kingdom forces for the defense of the North Atlantic area."

"SEC. 304. Of the funds authorized by section 541 of this Act, the President may expend, 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 (containing definitions) of the Mutual Defense Assistance Act of 1949, as amended), which are required by and are to be made available 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."

CHAPTER III—MUTUAL Special WEAPONS PLANNING

SEC. 301. AUTHORIZATION OF APPROPRIATION.—Amend the Mutual Security Act of 1951, as amended, by adding 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 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 amended: And provided further, That prior to the transfer of such weapons, the President shall determine that (a) the 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 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-Mutual Development AND TECHNICAL PROGRESS

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

"SEC. 543. There is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed $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 National Government of the Republic of China and the Associated States of Cambodia, Laos, and Vietnam, and 402 (relating to technical assistance for Latin America) of this Act."

SEC. 402. AUTHORIZATION OF APPROPRIAtion for Basic Materials. At the end of section 514 (relating to basic materials) of the Mutual Security Act of 1951, as amended, add the following sentence: "There is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed $15,000,000 to carry out the provisions of this section."

SEC. 403. SPECIAL ECONOMIC ASSISTANCE IN THE NEAR EAST AND AFRICA.— Amend section 206 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 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 setction to the extent that they are not inconsistent with the purposes of this section."

SEC. 404. SPECIAL ECONOMIC ASSISTANCE FOR INDIA AND PAKISTAN.—Amend seotion 302 (relating to economic and technical assistance for Asia and the Pacific) of the Mutual Security Act of 1951, as amended, by redesignating subsection (b) as (c) and adding 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, 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 V-Multilateral OrganizatIONS

SEC. 501. Movement of Migrants.—Add the following new sentence to section 534 (relating to the movement of migrants) of the Mutual Security Act of 1951, as amended: "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. 502. MUltilateral TECHNICAL Cooperation and ChildrEN'S WELFARE.— Amend the Mutual Security Act of 1951, as amended, by adding the following new sections:

"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 $13,000,000 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. 503. Ocean Freight ON RELIEF Shipments.-Add the following new sentence to section 535 (relating to the payment of ocean freight charges on voluntary relief shipments) of the Mutual Security Act of 1951, as amended: “There is hereby authorized to be appropriated to the President for the fiscal year 1954 not to exceed $1,825,000 for use in paying ocean freight charges under section 117 (c) of the Economic Cooperation Act of 1948, as amended."

SEC. 504. United Nations KOREAN RECONSTRUCTION AGENCY.-Amend section 303 (a) (relating to Korean relief) of the Mutual Security Act of 1951, as amended, as follows:

(a) Add 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, or such other agency as the President may direct."

(b) In the third sentence of section 303 (a) strike out “$67,500,000" and insert "$40,750,000".

CHAPTER VI-Further CHANGES IN EXISTING MUTUAL Security LegislaTION SEC. 601. Amend the Mutual Security Act of 1951, as amended, by adding the following new sections:

"SEC. 546. Whenever the President determines it to be necessary for the purpose of this Act, (a) not to exceed 15 percentum of the aggregate of the appropriations made available 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 funds after transfer may be used only for the purposes of sections 101(a) (1) or 101 (a) (2); and (b) not to exceed 15 per centum of the funds made available pursuant to the authorization contained in any of chapters II, IV, and V of the Mutual Security Act of 1953 for the fiscal year 1954 may be transferred to and consolidated with funds made available pursuant to the authorization contained in any other of such chapters. 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.

"SEC. 547. The unexpected 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."