An Act to amend further the Mutual Security Act of 1954, as amended, and for other purposes
PL 86-472 (H.R.11510), enacted 05/14/1960

134 
PUBLIC LAW 86-472-MAY 14, 1960 
[74 STAT. 
Public Law 86-472 
May 14. 1960 
^ ^ ACT 
[H. R. 115 10] 
To amend further the Mutual Security Act of 1954, as amended, and for other 
purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
Ac^t'^f'tgeo^''"^"^ f "mz^efi? States of America in Congress assembled^ That this Act may 
be cited as the "Mutual Security Act of 1960". 
STATEMENT OF POLICY 
22 us^c \nU. 
^^^' ^' ^^^^i^^ 2 of the Mutual Security Act of 1954, as amended, 
which is a statement of policy, is further amended by adding at the 
end thereof the following: 
"(f) It is the sense of the Congress that inasmuch as— 
"(1) the United States favors freedom of navigation in inter-
national waterways and economic cooperation between nations; 
and 
"(2) the purposes of this Act are negated and the peace of the 
world is endangered when nations which receive assistance under 
this Act wage economic warfare against other nations assisted 
under this Act, including such procedures as boycotts, blockades, 
and the restriction of the use of international waterways; 
assistance under this Act and the Agricultural Trade Development 
7^js*c*"i69f• ot 
'^^^ Assistance Act of 1954, as amended, shall be administered to ^ive 
effect to these principles, and, in all negotiations between the United 
States and any foreign state arising as a result of funds appropriated 
under this Act or arising under the Agricultural Trade Development 
and Assistance Act of 1954, as amended, these principles shall be 
applied, as the President may determine, and he shall report on meas-
ures taken by the Administration to insure their application." 
CHAPTER I—MILITARY ASSISTANCE 
MILITARY ASSISTANCE 
22 ^utc^^s 11- 
^^^- ^^^' Chapter I of the Mutual Security Act of 1954, as amended, 
1817. 
which relates to military assistance, is amended as follows: 
22 use 1813. 
^^^ jj^ section 103, which relates to authorizations, insert the fol-
lowing new subsection (d) : 
"(d) The value of programs of equipment and materials for Ameri-
can Republics, pursuant to any authority contained in this chapter 
22 use 1816. 
other than section 106, in any fiscal year beginning with the fiscal year 
1961, shall not exceed $55,000,000. For the purposes of this sub-
section, the value of nonexcess equipment and materials shall be as 
22 use 1751. 
defined in section 545(h) of this Act, and the value of excess equip-
ment and materials (as excess is defined in section 545(e) of this 
Act) shall mean the acquisition cost to the Armed Foi'ces of the United 
Stales of such equipment and materials."' 
22 use 1815. 
(b) ii^ section 105(b)(4), which relates to conditions applicable 
to military assistance, strike out the last sentence. 
CHAPTER II—ECONOMIC ASSISTANCE 
DEFENSE SUPPORT 
SEC. 201. Title I of chapter I I of the Mutual Security Act of 1954, 
as amended, which relates to defense support, is amended as follows: 
22 use 1841. 
(a,) In the first sentence of section 131(a), which relates to the au-
thority of the President to fuiiiish defense support, insert immedi-
22 use 185 1. 
22 use 1852. 
74 S T A T . ] 
PUBLIC LAW 86-472-.MAY U , 1960 
135 
ately before the period at the end thereof the following proviso: 
": Provided^ That either all documents, papers, communications, 
audits, reviews, findings, recommendations, reports, and other ma-
terial which relate to operations or activities under this title are fur-
nished to the General Accounting Office and to any committee of the 
Congress, or any duly authorized subcommittee thereof, charged with 
considering legislation, appropriations, or expenditures under this 
title, upon request of the General Accounting Office or such commit-
tee or subcommittee as the case may be, or the President certifies that 
he has forbidden the information to be furnished pursuant to such 
request and gives his reasons for doing so". 
(b) In section 131(b), which relates to general authority, strike 
22 use 1341. 
out "1960" and "$751,000,000" and substitute "1961" and "$675,000,-
000", respectively. 
(c) In section 141, which relates to conditions of eligibility for as-
sistance, strike out "No such assistance" in the second sentence and 
substitute "No defense support or military equipment and materials". 
(d) In section 142(a), which relates to agreements, strike out "No 
assistance" in the introductory clause and substitute "No defense sup-
port or military equipment and materials". 
DEVELOPMENT LOAN FUND 
SEC. 202. Title I I of chapter I I of the Mutual Security Act of 
1954, as amended, which relates to the Development Loan Fund, is 
amended as follows: 
(a) Amend section 201, which states the purposes of the Develop- 
22 use i87i. 
ment Loan Fund, as follows: 
(1) In the last sentence, after "to develop their economic resources" 
insert "and free economic institutions", and after "to increase their 
productive capabilities" insert "in agriculture as well as in industry". 
(2) At the end of the section, add the following new sentences: 
"The Congress recognizes that the accomplishment of the purposes of 
this title in rapidly developing countries requires the development of 
free economic institutions and the stimulation of private investment, 
local as well as foreign, in the field of housing. It is the sense of the 
Congress that, consistent with the other purposes of this title, special 
consideration should be given to loans and guarantees to stimulate 
activities in this field." 
(b) Amend section 202, w'hich relates to general powers of the 
^^ ^^^ ^*'^2. 
Development Loan Fund, as follows: 
(1) In clause (3) of the first sentence of subsection (b) insert "or 
free economic institutions" after "economic resources". 
(2) At the end of the section, add the following new subsection: 
"(c) The Fund shall not allocate, reserve, earmark, commit, or 
otherwise set aside, funds aggregating in excess of $50,000 for use 
in any country under this title unless (1) an application for such 
funds has been received for use in such country together with sufficient 
information and assurances to indicate reasonably that the funds will 
be used in an economically and technically sound manner, or (2) the 
President determines with respect to each such allocation, reservation, 
earmarking, commitment, or set-aside that it is in the national interest 
to use such funds pursuant to multilateral plans." 
(c) In section 205(a), which relates to management, powers, and 
^^ ^^^ ^^^^• 
authorities, strike out "Under Secretary of State for Economic Af-
fairs" in the first sentence and substitute "Secretary of State". 
22 u s e 1898. 
136 
PUBLIC LAW 86-472-MAY 14, 1960 
[74 STAT< 
TECHNICAL 
COOPERATION 
SEC. 203. Title I I I of chapter I I of the Mutual Security Act of 
1954, as amended, which relates to technical cooperation, is amended 
as follows: 
22 use 1894. 
^g^^ jj^ section 304, which relates to authorization, strike out "$179,-
500,000" and "1960" and substitute "$172,000,000" and "1961", 
respectively. 
22 use 1896. 
^|3^ Amend section 306, which relates to multilateral technical 
cooperation and related programs, as follows: 
(1) In subsection (a), which relates to contributions to the United 
Nations Expanded Program of Technical Assistance and related fund, 
strike'out '^$30,000,000" and "1960" and substitute "$33,000,000" and 
"1961", respectively. 
(2) In subsection (b), which relates to contributions to the tech-
nical cooperation program of the Organization of American States, 
strike out "1960" and substitute "1961". 
22 use 1897. 
^(j^ jj^ section 307, which relates to advances and grants, insert 
" ( a ) " immediately after "SEC. 307. 
ADVANCES AND GRANTS; CON-
TRACTS.—", and at the end thereof add the following: 
"(b) The President shall arrange for a nongovernmental research 
group, university, or foundation to study the advisability and prac-
ticability of a program, to be known as the Point Four Youth Corps, 
under which young United States citizens would be trained and serve 
abroad in programs of technical cooperation. 
Not to exceed $10,000 
from funds made available pursuant to section 304 of this Act may be 
used to help defray the expenses of such a study." 
(d) Repeal section 308, which relates to the International Develop-
ment Advisory Board. 
SPECIAL ASSISTANCE AND OTHER PROGRAMS 
SEC. 204. Title IV of chapter I I of the Mutual Security Act of 1954, 
as amended, which relates to special assistance and other programs, is 
amended as follows: 
(a) In section 400(a), which relates to special assistance, strike out 
"1960" and "$247,500,000" and substitute "1961" and "$256,000,000", 
respectively. 
(b) In section 401, which relates to the United Nations Emergency 
Force, strike out "1960" in the second sentence and substitute "1961". 
(c) In section 402, which relates to earmarking of funds, strike out 
"1960" in the first sentence and substitute "1961". 
22 use 1923. 
^^^ jj^ section 403, which relates to responsibilities in Germany, 
strike out "1960" and "$7,500,000" in the first sentence and substitute 
"1961" and "$6,750,000", respectively. 
(e) Insert after section 403 the following new section 404: 
"SEC. 404. INDUS BASIN DEVELOPMENT.—The Congress of 
the 
United States welcomes the progress made t h r o u ^ the good offices of 
the International Bank for Keconstruction and Development toward 
the development of the Indus Basin through a program of coopera-
tion among south Asian and other nations of the free world in order to 
promote economic growth and political stability in south Asia, and 
affirms the willingness of the United States, pursuant to authorities 
contained in this and other Acts, to participate in this significant 
undertaking. 
In the event that funds appropriated pursuant to this 
Act are made available to be used by or under the supervision of the 
International Bank for Reconstruction and Development in further-
ance of the foregoing purposes, such funds may be used in accordance 
with requirements, standards, or procedures established by the Bank 
22 u s e 1920. 
73 Stat. 249. 
22 u s e 1922. 
74 S T A T . ] 
PUBLIC LAW 86-472-MAY U , 1960 
137 
concerning completion of plans and cost estimates and determination 
of feasibility, rather than with re(juirements, standards, or procedures 
concerning such matters set forth m this or other Acts; and such funds 
may also he used without regard to the provisions of section 901 (b) 
of the Merchant Marine Act of 1936, as amended (46 U.S.C. 1241), 
^8 stat. 332. 
whenever the President determines that such provisions cannot be 
fully satisfied without seriously impeding or preventing accomplish-
ment of such purposes: Provided^ That compensating allowances are 
made in the administration of other programs to the same or other 
areas to which the requirements of saia section 901 (b) are applicable." 
(f) Amend section 405, which relates to migrants, refugees, and 
73 st^^ J
Z
S
C
K 
escapees, as follows: 
(1) In subsection (c), which relates to contributions to the program 
of the United Nations High Commissioner for Kefugees, strike out 
''I960" and "$1,100,000" and substitute "1961" and "$1,300,000", 
respectively. 
(2) In subsection (d), which relates to the continuation of activi-
ties undertaken for selected escapees, strike out "1960" and "$5,200,-
000" and substitute "1961" and ^'$3,500,000", respectively. 
(g) In section 406, which relates to children's welfare, strike out 
22 use 1926. 
"1960" and substitute "1961". 
(h) Amend section 407, which relates to Palestine refugees in the 
^^ "^^ '^27. 
Near East, to read as follows: 
"SEC. 407. PALESTINE REFUGEES IN THE NEAR EAST.—There is here-
by authorized to be appropriated to the President for the fiscal year 
1961 not to exceed $16,500,000 to be used to make contributions to the 
United Nations Relief and "Works Agency for Palestine Refugees in 
the Near East. 
In determining whether or not to continue furnish-
ing assistance for Palestine refugees in the Near East, the President 
shall take into account whether Israel and the Arab host governments 
are taking steps toward the resettlement and repatriation of such 
refugees. 
It is the sense of the Congress that the earliest possible 
rectification should be made of the Palestine refugee rolls in order 
to assure that only bona fide refugees whose need and eligibility for 
relief have been certified shall receive aid from the Agency and that 
the President in determining whether or not to make United States 
contributions to the Agency should take into consideration the extent 
and success of efforts by the Agency and the host governments to 
rectify such relief rolls. The President shall include in his recom-
mendations to the Congress for fiscal year 1962 programs under this 
Act a report concerning the progress made toward the rectification of 
the relief rolls as well as toward the repatriation and resettlement of 
the refugees by the governments directly concerned. 
Whenever the 
President shall determine that it would more effectively contribute 
to the relief, repatriation, and resettlement of Palestine refugees in 
the Near East he may expend any part of the funds made available 
pursuant to this section through any other agency he may designate." 
(i) Section 409, which relates to ocean freight charges, is amended 
^^ use 1929. 
as follows: 
(1) In subsection (a), after "such nations and areas" insert ", or, 
in the case of such nations and areas which are landlocked, trans-
portation charges from the United States ports to designated points of 
entry in such nations and areas,", 
(2) In subsection (c), strike out "1960" and "$2,300,000" and sub-
stitute "1961" and "$2,000,000", respectively. 
(j) Amend section 411, which relates to administrative and other 
22 use 1931. 
expenses, as follows: 
138 
PUBLIC LAW 86-472--MAY 14, 1960 
[74 STAT. 
(1) In subsection (b), which relates to certain expenses of admin-
istering nonmilitary assistance, strike out "1960" and "$39,500,000" 
and substitute "1961" and "$40,000,000", respectively. 
(2) In subsection (c), which relates to administrative and other 
expenses of the Department of State, strike out "to" after "appro-
priated" and substitute "for expenses or". 
22 use 1932. 
(k) Section 412, which relates to the President's special education 
and training fund, is repealed. 
22 use 1939. 
^Y) In section 419(a), which relates to atoms for peace, strike out 
"1960" and "$6,500,000" and substitute "1961" and "$3,400,000", re-
spectively. 
22 use 1940. 
(in) A(i^^ the following new section after section 420: 
"SEC. 421. LOANS TO SMALL FARMERS.—It is the policy of the United 
States and the purpose of this section to strengthen the economies of 
underdeveloped nations, and in nations where the economy is essen-
tially rural or based on small villages, to provide assistance designed 
to improve agricultural methods and techniques, to stimulate and en-
courage the development of local programs of self-help and mutual 
cooperation, particularly through loans of foreign currencies for as-
sociations of operators of small farms, formed for the purpose of joint 
action designed to increase or diversify agricultural productivity. 
The maximum unpaid balance of loans made to any association under 
this section may not exceed $25,000 at any one time; and the aggregate 
unpaid balance of all loans made under this section may not exceed 
$10,000,000 at any one time." 
CHAPTER III—CONTINGENCY FUND 
22 use 1951. 
SEC. 301. Section 451(b) of the Mutual Security Act of 1954, as 
amended, which relates to the President's special authority and con-
tingency fund, is amended by striking out '^1960" and "$155,000,000" 
in the first sentence and substituting "1961" and "$150,000,000", 
respectively. 
CHAPTER IV—GENERAL AND ADMINISTRATIVE PROVISIONS 
SEC. 401. Chapter I V of the Mutual Security Act of 1954, as 
amended, which relates to general and administrative provisions, is 
amended as follows: 
22 use 1754. 
(a) Section 502, which relates to use of foreign currency, is amended 
as follows: 
(1) Subsection (b) is amended as follows: 
(i) Insert after the word "expended" in the proviso the words "and 
the amounts of dollar expenditures made from appropriated funds 
in connection with travel outside the United States". 
(ii) Amend the second sentence to read as follows: "Within the 
first sixty days that Congress is in session in each calendar year, the 
chairman of each such committee shall prepare a consolidated re-
port showing the total itemized expenditures during the preceding 
calendar year of the committee and each subcommittee thereof, in-
curred as a result of the official activities of the members and em-
ployees of such committee or subcommittee, and shall forward such 
consolidated report to the Committee on House Administration of 
the House of Representatives (if the committee be a committee of the 
House of Representatives or a joint committee whose funds are dis-
bursed by the Clerk of the House) or to the Committee on Appro-
priations of the Senate (if the committee be a Senate committee or 
a joint committee whose funds are disbursed by the Secretary of the 
Senate)." 
74 STAT.] 
PUBLIC LAW 86-472-MAY 14, 1960 
139 
(2) At the end of the section, add the following new subsection: 
"(c) It is the sense of the Congress that prompt and careful con-
sideration should be given to participation by the United States in an 
internationally financed program which would utilize foreign cur-
rencies available to the United States to preserve the great cultural 
monuments of the Upper Nile. Accordingly, the President is re-
quested to submit to the Congress on or before March 1, 1961, his 
recommendations concerning such a program." 
(b) Section 504(d), which relates to small machine tools and other 22 use i7i;6. 
industrial equipment, is repealed. 
(c) In section 505(a), which relates to loan assistance and sales, 22 use 1757. 
insert after the first sentence the following new sentence: "Commodi-
ties, equipment, and materials transferred to the United States as re-
payment may be used for assistance authorized by this Act, other 
than title II of chapter II, in accordance with the provisions of this 
Act applicable to the furnishing of such assistance.". 
(d) In section 513, w^hich relates to notice to legislative committees, 22 use i765. 
insert before ", and copies" in the last sentence the following: "and 
under the last clause of the second sentence of section 404". 
(e) Amend section 517, which relates to completion of plans and 22 use i766c. 
cost estimates, as follows: 
(1) Insert " ( a ) " immediately after 
"SEC. 517. COMPLETION OF 
PLANS AND COST ESTIMATES.—". 
(2) Add the following at the end of such section: 
"(b) Plans required under this section for any water or related 
land resource construction project or program shall include a com-
putation of benefits and costs made insofar as practicable in accord-
ance with the procedures set forth in Circular A-47 of the Bureau of 
the Budget with respect to such computations." 
(f) Amend section 523, which relates to coordination w^ith foreign 22 use 1733. 
policy, by adding the following new subsection: 
"(d) Whenever the President determines that the achievement of 
United States foreign policy objectives in a given country requires it, 
he may direct the chief of the United States diplomatic mission there 
to issue regulations applicable to members of the Armed Forces and 
oiRcers and employees of the United States Government, and to con-
tractors with the United States Government and their employees, 
governing the extent to which their pay and allowances received and 
to be used in that country shall be paid in local currency. 
Notwith-
standing any other law^. United States Government agencies are au-
thorized and directed to comply with such regulations." 
(g) Amend section 527, which relates to employment of personnel, 22 use i787. 
as follow^s: 
(1) In subsection (c), w^hich relates to employment of personnel 
outside the United States, strike out "Director" in the introductory 
clause and substitute "President"; and insert before the period at the 
end of paragraph (2) the following new proviso: ": Provided 
fur-
ther^ That Foreign Service Reserve officers appointed or assigned 
pursuant to this paragraph shall receive in-class promotions in ac-
cordance with such regulations as the President may prescribe". 
(2) In subsection (d), which relates to appointment of alien em-
ployees outside the United States, strike out ", at the request of the 
Director". 
(h) Section 531, which relates to security clearance, is amended to 22 use 1791. 
read as follows: 
"SEC. 531. SECURITY CLEARANCE.—The standards and procedures 
set forth in Executive Order Numbered 10450, as amended or supple-
mented, shall apply to the employment under this Act by any agency 
140 
PUBLIC LAW 86-472-MAY U, 1960 
[74 STAT. 
administering nonmilitary assistance of any citizen or resident of the 
United States." 
22 use 1793. 
(i) In subsection (c) of section 533A, relating to the Inspector 
General and Comptroller, strike out paragraph (9) and renumber 
paragraphs (10) and (11) as paragraphs (9) and (10), respectively. 
22 use 1794. 
(j) In section 534(a), which relates to reports, strike out "six 
months" in the first sentence and substitute "fiscal year". 
22 use 1797. 
^^^ j ^ section 537(a), which relates to provisions on uses of funds, 
amend paragraph (3) to read as follows: 
" (3) contracting with individuals for personal services abroad: 
Provided, 
That such individuals shall not be regarded as em-
ployees of the United States for the purpose of any law adminis-
tered by the Civil Service Commission;". 
(1) In section 537(c), which relates to construction or acquisition 
of facilities abroad, strike out "$2,750,000" and substitute "$4,250,000". 
(m) Add the following new section immediately after section 551: 
"SEC. 552. ASSISTANCE TO CUBA.—No assistance shall be furnished 
under this Act to Cuba after the date of enactment of the Mutual 
Security Act of 1960 unless the President determines that such assist-
ance is m the national and hemispheric interest of the United States." 
CHAPTER V—TECHNICAL AMENDMENTS REFLECTING NEW LIMITS OF 
UNITED STATES 
SEC. 501. The Mutual Security Act of 1954, as amended, is amended 
as follows: 
22 use 1875. 
(a) In section 205 (c), strike out "continental" in the twelfth clause 
of the first sentence. 
22 use 1931. 
^\y^ In section 411 (d), strike out "the continental limits of". 
22 use 1787. 
(^Q^j In section 527(c), strike out "the continental limits of" in the 
introductory clause. 
(d) In section 527(d), strike out "the continental limits of". 
22 use 1790. 
/g^ In section 530(a), strike out "the continental limits of". 
22 use 1797. 
^f 
^ IJ^ section 537(a), strike out "continental" in the last proviso of 
paragraph (5) and in paragraphs (13) and (17); and strike out "the 
continental limits of" in paragraph (10). 
CHAPTER VI—AMENDMENTS TO OTHER LAWS 
SEC. 601. Title II of the Agricultural Trade Development and As-
sistance Act of 1954, as amended (7 U.S.C. 1721 and the following), 
which relates to famine relief and other assistance, is amended as 
follows: 
7 use 1722. 
^g^^ ^i^ IJJ section 202, strike out "The" at the beginning thereof and 
substitute the following: "In order to facilitate the utilization of 
surplus agricultural commodities in meeting the requirements of needy 
peoples, and in order to promote economic development in under-
developed areas in addition to that which can be accomplished under 
title I of this Act, the". 
(2) The amendment made by this subsection shall expire June 30, 
1961. 
(b) In section 203, which relates to delivery of relief supplies, in 
the third sentence after the words "designated ports of entry abroad" 
insert ", or, in the case of landlocked countries, transportation from 
United States ports to designated points of entry abroad,", and before 
the period at the end of such sentence insert the following: ", and 
charges for general average contributions arising out of the ocean 
transport of commodities transferred pursuant hereto may be paid 
from such funds". 
7 use 1723. 
74 S T A T . ] 
PUBLIC LAW 86-472-MAY 14, 1960 
141 
SEC. 602. Section 501(b) of the Mutual Security Act of 1959 (73 
Stat. 256), which relates to international cooperation in health, is 
22 use 1941. 
repealed. 
SEC. 603. Section 3(a) of Public Law 403, Eightieth Congress, as 62 stat. 15. 
amended (22 U.S.C. 280b), which relates to United States membership 
in the South Pacific Commission, is amended by striking out "$75,000^' 
and substituting "$100,000". 
SEC. 604. The President shall have a study made of the functions 
of, and the degree of coordination among, agencies engaged in foreign 
economic activities, including the Department of State, the Interna-
tional Cooperation Administration, the Development Loan Fund, the 
Export-Import Bank, and the Department of Agriculture, with a view 
to providing the most effective means for the formulation and imple-
mentation of United States foreign economic policies. The President 
shall include in his presentation to the Congress of the fiscal year 1962 
mutual security program his findings and recommendations resulting 
from such study. 
CHAPTER VII—CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE 
BETWEEN EAST AND WEST 
SEC. 701. This chapter may be cited as the "Center for Cultural and ^ J*^i"^''^ ^"TJ^I 
Technical Interchange Between East and West Act of 1960". 
nicai interchange 
SEC. 702. The purpose of this chapter is to promote better relations gf^Y^^^^o^Yg^g^lV? 
and understanding between the United States and the nations of Asia 
and the Pacific (hereinafter referred to as "the East") through coop-
erative study, training, and research, by establishing in Hawaii a 
Center for Cultural and Technical Interchange Between East and 
West where scholars and students in various fields from the nations 
of the East and West may study, give and receive training, exchange 
ideas and views, and conduct other activities primarily in support of 
the objectives of the United States Information and Educational 
Exchange Act of 1948, as amended, title I I I of chapter I I of the 
Mutual Security Act of 1954, and other Acts promoting the inter- ^^l^. ^g^S^^l^^ ^ ^ 
national, educational, cultural, and related activities of the United 
States. 
SEC. 703. In order to carry out the purpose of this chapter the 
Secretary of State (hereinafter referred to as the "Secretary") shall 
provide for— 
(1) the establishment and operation in Hawaii of an educa-
tional institution to be known as the Center for Cultural and 
Technical Interchange Between East and West, through arrange-
ments with public, educational, or other nonprofit institutions; 
(2) grants, fellowships, and other payments to outstanding 
scholars and authorities from the nations of the East and West 
as may be necessary to attract such scholars and authorities to 
the Center; 
(3) grants, scholarships, and other payments to qualified stu-
dents from the nations of the East and West as may be necessary 
to enable such students to engage in study or training at the 
Center; and 
(4) making the facilities of the Center available for study or 
training to other qualified persons. 
SEC. 704. (a) In carrying out the provisions of this chapter, the 
Secretary may utilize his authoritjr under the provisions of the United 
States Information and Educational Exchange Act of 1948, as 
amended. 
142 
PUBLIC LAW 86-472-MAY 14, 1960 
[74 STAT. 
22 u s e 809. 
Rep o r t to Con-
gress. 
Appropriations. 
(b) The Secretary may, in administering the provisions of this 
chapter, accept from public and private sources money and property 
to be utilized in carrying out the purposes and functions of the Center. 
In utilizing any gifts, bequests, or devises accepted there shall be 
available to the Secretary the same authorities as are available to 
him in accepting and utilizing gifts, bequests, and devises to the For-
eign Service Institute under the provisions of the title X, part C of 
the Foreign Service Act of 1946, as amended. 
For the purposes of 
Federal income, estate, and gift taxes, any gift, devise, or bequest 
accepted by the Secretary under the authority of this chapter shall be 
deemed to be a gift, devise, or bequest to or for the use of the United 
States. 
(c) The Secretary shall make an annual report to the Congress 
with respect to his activities under the provisions of this chapter, and 
such report shall include any recommendations for needed revisions 
in this chapter. 
SEC. 705. There are authorized to be appropriated, to remain avail-
able until expended, such amounts as may be necessary to carry out 
the provisions of this chapter. 
CHAPTER VIII—HEMISPHERIC CENTER FOR CULTURAL AND 
TECHNICAL INTERCHANGE 
22 u s e 
143 1 
note; 1891-1898. 
STATEMENT OF PURPOSE 
SEC. 801. The purpose of this chapter is to promote better relations 
and understanding between the United States and the other nations of 
the Western Hemisphere (hereinafter referred to as "the Hemisphere") 
through cooperative study and research, by establishing in Puerto Rico 
a Hemispheric Center for Cultural and Technical Interchange, either 
as a branch of an existing institution of higher learning or as a separate 
institution, where scholars and students, in various fields from the na-
tions of the Hemisphere may meet, study, exchange ideas and views, 
and conduct other activities primarily in support of the objectives of 
the United States Information and Educational Exchange Act of 1948, 
as amended, and title I I I of chapter I I of the Mutual Security Act of 
1954 and other Acts promoting the international educational, cultural, 
and related activities of the United States. 
ESTABLISHMENT OF CENTER 
SEC. 802. In order to carry out the purposes of this chapter the 
Secretary of State (hereinafter referred to as "Secretary"), after con-
sultation with appropriate public and private authorities, may, on or 
before January 3,1961, prepare and submit to the Congress a plan and 
program for— 
(1) the establishment and operation in Puerto Rico of an educa-
tional institution to be known as the Hemispheric Center for Cul-
tural and Technical Interchange through arrangements to be made 
with public, educational, or other nonprofit institutions; 
(2) grants, fellowships, and other payments to outstanding 
scholars and authorities from the nations of the Hemisphere as 
may be necessary to attract such scholars and authorities to the 
Center; 
(3) grants, scholarships, and other payments to qualified candi-
dates from the nations of the Hemisphere as may be necessary to 
enable such students to engage in study at the Center; and 
(4) making the facilities of the Center available for study to 
other qualified persons on reasonable basis. 
Approved May 14, 1960.