An Act to authorize the loan of naval vessels to friendly foreign countries and the extension of certain naval vessel loans now in existence
PL 87-387 (H.R.7726), enacted 10/04/1961

75 S T A T . ] 
PUBLIC LAW 87-387-CX)T. 4, 1961 
815 
Public Law 87-387 
A N A C T 
October 4, 1961 
[H. R. 7726] 
To authorize the loan of naval vessels to friendly foreign countries and the 
extension of certain naval vessel loans now in existence. 
Naval vessels. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That, notwithstand-
ing section 7307 of title 10, United States Code, or any other law, the counfriesV'* ^ ^" 
President may extend the loans of two destroyer escorts to the Govern- 
7OA stat. 452. 
ment of Portugal and two destroyers to the Government of Spain on 
such terms and under such conditions as he deems are appropriate. 
SEC. 2. The extensions of the existing loans authorized under this 
Act are extensions of the loans made under the authority granted by 
the Act of August 5, 1953 (67 Stat. 363), as amended by the Act of 
August 3,1956 (70 Stat. 967). 
SEC. 3. Extensions of existing loans shall be for a period of not to 
fexceed five years and shall be made on the condition that they maj^ be 
terminated at an earlier date if necessitated by the defense require-
ments of the United States. 
SEC. 4. Notwithstanding section 7307 of title 10, United States 
Code, or any other law, the President may, under Conditions which 
he prescribes, lend or otherwise make available to friendly foreign 
nations from the Reserve Fleet, on such terms and under such condi-
tions as he deems appropriate, destroyers, destroyer escorts, and sub-
marines as follows: (1) North Atlantic Treaty Organization and Euro-
pean area, not to exceed six ships; (2) southern Asia, not to exceed 
two ships; (3) Far Eastern area, not to exceed six ships; and (4) a 
pool of not to exceed two such ships to be loaned to friendly nations 
m an emergency as a replacement for a ship, covered under an existing 
loan, lost by enemy action or an act of God. 
SEC. 5. New loans executed under this Act shall be for periods not 
exceeding five years. All loans shall be made on the condition that 
they may be terminated at an earlier date if necessitated by the defense 
requirements of the United States. 
SEC. 6. All expenses involved in the activation, rehabilitation, and 
outfitting, including repairs, alterations, and logistic support of ves-
sels transferred under this Act, shall be charged to funds programed 
for the recipient government under the Mutual Security Act of 1954, 
6 8 stat. 832; 
as amended, or successor legislation, or to funds provided by the ^"2^' us*c°'i7s 1 
recipient government. 
SEC. 7. No loan may be made or extended under this Act unless the 
Secretary of Defense, after consultation with the Joint Chiefs of 
Staff, determines that such loan or extension is in the best interest of 
the United States. The Secretary of Defense shall keep the Congress 
currently advised of all loans or extensions made under authority of 
this Act. 
SEC. 8. The President may promulgate such rules and regulations 
as he deems necessarjr to carry out the provisions of this Act, 
SEC. 9. The authority of the President to transfer naval vessels 
under this Act terminates on December 31,1963. 
Approved October 4, 1961. 
note. 
Rules and Iregu-
lations.