An Act to maintain the security and promote the foreign policy and provide for the general welfare of the United States by furnishing assistance to friendly nations in the interest of international peace and security
PL 82-165 (H.R.5113), enacted 10/10/1951

65 STAT. 
PUBLIC LAW 165—OCT. 10, 1951 
373 
Society for Metals for its instigation and sponsorship of this first 
world gathering of metal scientists, calling upon oflScials and agencies 
of the Government to assist and cooperate with such Congress as 
occasion may warrant. 
Approved October 10, 1951. 
Public Law 165 
CHAPTER 479 
AN ACT 
To maintain the security and promote the foreign policy and provide for the 
general welfare of the United States by furnishing assistance to friendly 
nations in the interest of international peace and security. 
October 10, 1951 
[H. R. 5113] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of AineHca in Congress assemhled^ That this Act may 
be cited as the "Mutual Security Act of 1951". 
SEC. 2. The Congress declares it to be the purpose of this Act to 
maintain the security and to promote the foreign policy of the United 
States by authorizing military, economic, and technical assistance to 
friendly countries to strengthen the mutual security and individual 
and collective defenses of the free world, to develop their resources 
in the interest of their security and independence and the national 
interest of the United States and to facilitate the effective participa-
tion of those countries in the United Nations system for collective 
security. 
The purposes of the Mutual Defense Assistance Act of 1949, 
as amended (22 U. S. C. 1571-1604), the Economic Cooperation Act 
of 1948, as amended (22 U. S. C. 1501-1522), and the Act for Inter-
national Development (22 U. S. C. 1557) shall hereafter be deemed 
to include this purpose. 
Mutual 
Act of 1951. 
Security 
Purpose of Act. 
63 Stat. 714. 
62 Stat. 137. 
64 Stat. 204. 
TITLE I—EUROPE 
SEC. 101. (a) In order to support the freedom of Europe through 
assistance which will further the carrying out of the plans for defense 
of the North Atlantic area, while at the same time maintaining the 
economic stability of the countries of the area so that they may meet 
their responsibilities for defense, and to further encourage the eco-
nomic unification and the political federation of Europe, there are 
hereby authorized to be appropriated to the President for the fiscal 
year 1952 for carrying out the provisions and accomplishing the 
policies and purpose of this Act— 
(1) not to exceed $5,028,000,000 for assistance pursuant to the 
provisions of the Mutual Defense Assistance Act of 1949, as 
amended (22 U. S. C. 1571-1604), for countries which are parties 
to the North Atlantic Treaty and for any country of Europe 
(other than a country covered by another title of this Act), 
which the President determines to be of direct importance to the 
defense of the North Atlantic area and whose increased ability 
to defend itself the President determines is important to the 
preservation of the peace and security of the North Atlantic area 
and to the security of the United States (any such determination 
to be reported forthwith to the Committee on Foreign Relations 
of the Senate, the Committee on Foreign Affairs of the House 
of Representatives, and the Committees on Armed Services of 
the Senate and of the House of Representatives), and not to 
exceed $100,000,000 of such appropriation for any selected persons 
who are residing in or escapees from the Soviet Union, Poland, 
Czechoslovakia, Hungary, Rumania, Bulgaria, Albania, Lithu-
Appropriatlons au-
thorized. 
Assistance pursviant 
to Mutual Defense 
Assistance Act of 1949. 
63 Stat. 714. 
63 S t a t . , P t . 2, 
p. 2241. 
Maximum amount 
for escapees, etc. 
374 
PUBLIC LAW 165—OCT. 10, 1951 
[65 STAT. 
Assistance pursuant 
to Economic Coopera-
tion Act of 1948. 
62 Stat. 137. 
22 U. S. C. § 1502. 
Utilization of man-
power. 
22 U. S. C. § 1613. 
Transfer of funds. 
Notification of Con-
gress by President. 
ania, Latvia, and Estonia, or the Communist dominated or Com-
munist occupied areas of Germany and Austria, and any other 
countries absorbed by the Soviet Union either to form such per-
sons into elements of the military forces supporting the North 
Atlantic Treaty Organization or for other purposes, when it is 
similarly determined by the President that such assistance will 
contribute to the defense of the North Atlantic area and to the 
security of the United States. 
In addition, unexpended balances 
of appropriations heretofore made for carrying.out the purposes 
of the Mutual Defense Assistance Act of 1949, as amended, 
through assistance to anjr of the countries covered by this para-
graph are hereby authorized to be continued available through 
June 30, 1952, and to be consolidated with the appropriation 
authorized by this paragraph. 
Section 408 (c) of the Mutual 
Defense Assistance Act of 1949, as amended (22 U. S. C. 1579), 
is hereby repealed. 
(2) not to exceed $1,022,000,000 for assistance pursuant to the 
provisions of the Economic Cooperation Act of 1948, as amended 
(22 U. S. C. 1501-1522) (including assistance to further European 
military production), for any country of Europe covered by para-
graph (1) of this subsection and for any other country covered by 
section 103 (a) of the said Economic Cooperation Act of 1948, as 
amended. 
In addition, unexpended balances of appropriations 
heretofore made for carrying out the purposes of the Economic 
Cooperation Act of 1948, as amended, are hereby authorized to be 
continued available through June 30,1952, and to be consolidated 
with the appropriation authorized by this paragraph: Provided^ 
That not to exceed $10,000,000 of the funds made available pursu-
ant to this paragraph may be utilized to effectuate the principles 
set forth in section 115 (e) of the Economic Cooperation Act of 
1948, as amended, 
(b) Not to exceed 10 per centum of the total of the appropriations 
granted pursuant to this section may be transferred, when determined 
y the President to be necessary for the purpose of this Act, between 
appropriations granted pursuant to either paragraph of subsection 
( a ) : Provided, That the amount herein authorized to be transferred 
shall be determined without reference to any balances of prior appro-
priations continued available pursuant to this section: Provided 
fur-
ther, That, whenever the President makes any such determination, 
he shall forthwith notify the Committee on Foreign Relations of the 
Senate, the Committee on Foreign Affairs of the House of Representa-
tives, and the Committees on Armed Services of the Senate and of the 
House of Representatives. 
T I T L E II—NEAR EAST AND AFRICA 
Military assistance. 
Appropriations au-
thorized. 
61 Stat. 103. 
63 Stat. 714. 
SEC. 201. In order to further the purpose of this Act by continuing to 
provide military assistance to Greece, Turkey, and Iran, there are 
hereby authorized to be appropriated to the President for the fiscal 
year 1952, not to exceed $396,250,000 for furnishing assistance to 
Greece and Turkey pursuant to the provisions of the Act of May 22, 
1947, as amended (22 U. S. C. 1401-1410), and for furnishing assist-
ance to Iran pursuant to the provisions of the Mutual Defense Assist-
ance Act of 1949, as amended (22 U. S. C. 1571-1604). In addition, 
unexpended balances of appropriations heretofore made for assistance 
to Greece and Turkey, available for the fiscal year 1951, pursuant to 
the Act of May 22, 1947, as amended, and for assistance to Iran pur-
suant to the Mutual Defense Assistance Act of 1949, as amended, are 
hereby authorized to be continued available through June 30, 1952, 
65 STAT,] 
PUBLIC LAW 165—OCT. 10, 1951 
375 
and to be consolidated with the appropriation authorized by this 
section. 
SEC. 202. Whenever the President determines that such action is 
essential for the purpose of this Act, he may provide assistance, pur-
suant to the provisions of the Mutual Defense Assistance Act of 1949, 
as amended, to any country of the Near East area (other than those 
covered by section 201) and may utilize not to exceed 10 per centum 
of the amount made available (excluding balances of prior appropria-
tions continued available) pursuant to section 201 of this Act: Pro-
vided^ That any such assistance may be furnished only upon deter-
mination by the President that (1) the strategic location of the 
recipient country makes it of direct importance to the defense of the 
Near East area, (2) such assistance is of critical importance to the 
defense of the free nations, and (3) the immediately increased ability 
of the recipient country to defend itself is important to the preserva-
tion of the peace and security of the area and to the security of the 
United States. 
SEO. 203. In order to further the purpose of this Act in Africa and 
the Near East, there are hereby authorized to be appropriated to the 
President, for the fiscal year 1952, not to exceed $160,000,000 for eco-
nomic and technical assistance in Africa and the Near East in areas 
other than those covered by section 103 (a) of the Economic Coopera-
tion Act of 1948, as amended (22 U. S. C. 1502), Funds appropriated 
pursuant to this section shall be available under the applicable pro-
visions of the Economic Cooperation Act of 1948, as amended (22 
U. S. C. 1501-1522), and of the Act for International Development 
(22U. S. C. 1557). 
SEC. 204. Not to exceed $50,000,000 of the funds authorized under 
section 203 hereof may be contributed to the United Nations during 
the fiscal year 1952, for the purposes, and under the provisions, of the 
United Nations Palestine Eefugee Aid Act of 1950 (22 U. S. C. 1556) : 
Provided^ That, whenever the President shall determine that it would 
more effectively contribute to the purposes of the said United Nations 
Palestine Refugee Aid Act of 1950, he may allocate any part of such 
funds to any agency of the United States Government to be utilized 
in furtherance of the purposes of said Act and any amount so allocated 
shall be a part of the United States contribution to the United Nations 
Relief and Works Agency for Palestine Refugees in the Near East 
and shall be so credited by said Agency. 
SEC. 205. In order to assist in the relief of refugees coming into 
Israel, not to exceed $50,000,000 of the funds authorized under section 
203 hereof may be utilized during the fiscal year 1952, under such 
terms and conditions as the President may prescribe, for specific 
refugee relief and resettlement projects in Israel. 
Near East area,, 
Economic and tech-
nical assistance. 
Appropriation au-
thorized. 
62 Stat. 138. 
64 Stat. 204. 
Contributions to 
U.N. 
64 Stat. 203. 
Israel. 
Relief and resettle-
ment. 
TITLE III—ASIA AND PACIFIC 
SEC. 301. In order to carry out in the general area of China (includ-
ing the Republic of the Philippines and the Republic of Korea) the 
provisions of subsection (a) of section 303 of the Mutual Defense 
Assistance Act of 1949, as amended (22 U. S. C. 1604 (a)), there are 
hereby authorized to be appropriated to the President for the fiscal 
year 1952, not to exceed $535,250,000. In addition, unexpended bal-
ances of appropriations heretofore made for carrying out the provi-
sions of title I I I of the Mutual Defense Assistance Act of 1949, as 
amended (22 U. S. C. 1602-1604), are hereby authorized to be con-
tinued available through June 30, 1952, and to be consolidated with 
the appropriation authorized by this section. 
Not to exceed $50,000,000 
of funds appropriated pursuant to this section (excluding balances 
Area of China. 
Appropriations au-
thorized. 
64 Stat. 375. 
63 Stat. 716. 
376 
PUBLIC LAW 165—OCT. 10, 1951 
[65 STAT. 
Portions of area 
deemed not under 
Communist control. 
62 
Stat. 137. 
64 
Stat. 
204. 
64 
Stat. 202. 
United Nations 
Korean Reconstruc-
tion Agency. 
Appropriation a u -
thorized. 
64 Stat. 5. 
64 Stat. 203. 
of appropriations continued available) may be accounted for as 
provided in subsection (a) of said section 303. 
SEC. 302. (a) In order to further the purpose of this Act through the 
strengthening of the area covered in section 301 of this Act (but not in-
cluding the Republic of Korea), there are hereby authorized to be ap-
propriated to the President, for the fiscal year 1952, not to exceed 
$237,500,000 for economic and technical assistance in those portions 
of such area which the President deems to be not under Communist 
control. 
Funds appropriated j>ursuant to authority of this section 
shall be available under the applicable provisions of the Economic Co-
operation Act of 1948, as amended (22 U. S. C. 1501-1522), and of the 
Act for International Development (22 U. S. C. 1557). In addition, 
unexpended balances of funds heretofore made available for carrying 
out the purposes of the China Area Aid Act of 1950 (22 U. S. C. 1547), 
are hereby authorized to be continued available through June 30,1952, 
and to be consolidated with the appropriation authorized by this 
section. 
(b) The third proviso of section 202 of the China Area Aid Act of 
1950 is amended by inserting "and of Korea" after "selected citizens of 
China" the first time it appears therein. 
SEC. 303. (a) In order to provide for a United States contribution 
to the United Nations Korean Reconstruction Agency, established by 
the resolution of the General Assembly of the United Nations of De-
cember 1, 1950, there are hereby authorized to be appropriated to the 
President not to exceed $45,000,000. In addition, unobligated balances 
of the appropriations heretofore made, and available during the 
fiscal year 1951, for assistance to Korea under authority of the Far 
Eastern Economic Assistance Act of 1950, as amended (22 U. S. C. 
1543, 1551, 1552), are hereby authorized to be continued available 
through June 30,1952, and to be consolidated with the appropriation 
authorized by this section. Not to exceed 50 per centum of the total 
of the appropriations authorized by this section may, when determined 
by the President to be necessary for the purpose of this Act, be trans-
ferred to and consolidated with the appropriation authorized by para-
graph 302 (a). 
(b) The sums made available pursuant to subsection (a) may be 
contributed from time to time on behalf of the United States in such 
amounts as the President determines to be appropriate to support those 
functions of the United Nations Korean Reconstruction Agency which 
the military situation in Korea permits the Agency to undertake pur-
suant to arrangements between the Agency and the United Nations 
Unified Command. The aggregate amount which may be contributed 
on behalf of the United States pursuant to the preceding sentence 
shall be reduced by the value of goods and services made available to 
Korea by any department or agency of the United States for relief and 
economic assistance after the assumption of responsibility for relief 
and rehabilitation operations in Korea by the United Nations Korean 
Reconstruction Agency. 
(c) The provisions of subsections 304 (a) and (b) of the United 
Nations Palestine Refugee Aid Act of 1950 (22 U. S. C. 1556 (b)) are 
hereby made applicable with respect to Korean assistance furnished 
under this section. 
(d) Unencumbered balances of sums heretofore or 
hereafter 
deposited in the special account established pursuant to paragraph 
(2) of article V of the agreement of December 10, 1948, between the 
United States of America and the Republic of Korea (62 Stat., part 3, 
3788) shall be used in Korea for such purposes as the President deter-
mines to be consistent with United Nations programs for assistance to 
Korea and as may be agreed to between the Government of the United 
States and the Republic of Korea. 
65 STAT.] 
PUBLIC LAW 165—OCT. 10, 1951 
377 
(e) The functions of the Administrator for Economic Cooperation 
under the provisions of section 3 of the Far Eastern Economic Assist-
ance Act of 1950, as amended (22 U. S. C. 1551), shall hereafter be 
64stat.5. 
performed by such departments or agencies of the Government as the 
President shall direct. 
TITLE IV—AMEEICAN EEPUBLICS 
SEC. 401. In order to further the purpose of this Act through the 
Military assistance. 
furnishing of military assistance to the other American Republics, thodfed.^"^*'"^ ^"' 
there are hereby authorized to be appropriated to the President, for 
the fiscal year 1952, not to exceed $38,150,000 for carrying out the 
purposes of this section under the provisions of the Mutual Defense 
Assistance Act of 1949, as amended: Provided^ That such assistance 
^ stat.^714. ^
^
^
^ 
may be furnished only in accordance with defense plans which are note. 
found by the President to require the recipient country to participate 
in missions important to the defense of the Western Hemisphere. Any 
such assistance shall be subject to agreements, as provided herein and 
as required by section 402 of the Mutual Defense Assistance Act of 
1949, as amended (22 U. S. C. 1573), designed to assure that the 
assistance will be used to promote the defense of the Western Hemi-
sphere ; and after agreement by the Government of the United States 
and the country concerned with respect to such missions, military 
assistance hereunder shall be furnished only in accordance with such 
agreement. 
SEC. 402. In order to further the purpose of this Act among the ^Technical assist-
peoples of the American Republics through the furnishing of tech- 
Appropriation au-
nical assistance, there are hereby authorized to be appropriated to *
^
°
"
2
^
<
^
-
the President, for the fiscal year 1952, not to exceed $21,250,000 for 
assistance under the provisions of the Act for International Develop- 
^ ^t^*- 2
0
4
. 
ment (22 U. S. C. 1557) and of the Institute of Inter-American Affairs 
^i stat. 7
8
0
. 
Act, as amended (22 U. S. C. 281). 
TITLE V—ORGANIZATION AND GENERAL PROVISIONS 
UNIFIED DiREcmoN or PROGRAM 
SEC. 501. (a) In order that the programs of military, economic, seoirft'y!'"^^"'^^"*"'^' 
and technical assistance authorized by this Act may be administered 
as parts of a unified program in accordance with the intent of Congress 
and to fix responsibility for the coordination and supervision of these 
programs in a single person, the President is authorized to appoint in 
the Executive Office of the President a Director for Mutual Security. 
The Director, on behalf of the President and subject to his direction, 
shall have primary responsibility for— 
(1) continuous supervision and general direction of the assist-
ance programs under this Act to the end that such programs shall 
be (A) effectively integrated both at home and abroad, and (B) 
administered so as to assure that the defensive strength of the 
free nations of the world shall be built as quickly as possible on 
the basis of continuous and effective self-help and mutual aid; 
(2) preparation and presentation to the Congress of such pro-
grams of foreign military, economic, and technical assistance as 
may be required in the interest of the security of the United States; 
(3) preparation for the President of the report to the Congress 
required by section 518 of this Act. 
Pmt,^.%^. 
(b) Except as otherwise provided by this Act, the Director shall not 
hold any other office or employment under the United States and shall 
not have any other responsibilities except those directly related to the 
coordination, supervision, and direction, of the programs covered by 
this Act or otherwise conferred upon him by law. 
378 
PUBLIC LAW 165—OCT. 10, 1951 
[65 STAT. 
Appointment; sal-
ary. 
63 Stat. 719. 
22 U. S. C. § 1577. 
63 Stat. 579. 
22 U. S. C. § 286b. 
Abolition of EGA. 
Establishment of 
Agency. 
62 Stat. 137. 
22 U. S. C. § 1501 
note. 
22 U. S. C. § 1520. 
(c) The Director shall be appointed by the President, by and with 
the advice and consent of the Senate, and shall receive compensation at 
the rate of $22,500 per annum. 
(d) For the purpose of carrying out the provisions of this section, 
the President is authorized to utilize the positions created in subsection 
406 (e) of the Mutual Defense Assistance Act of 1949, as amended. 
No person may serve in any such position under this subsection while 
at the same time he is an officer or employee of any other department or 
agency of the Government. 
(e) (1) The fourth paragraph of section 101 (a) of the National 
Security Act of 1947, as amended (50 U. S. C. 402 (a)), is amended by 
inserting after clause (4) the following: 
"(5) the Director for Mutual Security;" 
and by renumbering clauses (5) and (6) thereof as clauses (6) and (7), 
respectively. 
(2) Section 4 (a) of Public Law 171, Seventy-ninth Congress, as 
amended (59 Stat. 512), is amended by striking out "Economic Cooper-
ation Administration" and inserting in lieu thereof "Mutual Security 
Agency" and by striking out "Administrator for Economic Coopera-
tion" and inserting in lieu thereof "Director for Mutual Security". 
MUTUAL SECURITY AGENCY 
SEC. 502. (a) The Economic Cooperation Administration and the 
offices of Administrator for Economic Cooperation, Deputy Admin-
istrator, United States Special Representative in Europe, and Deputy 
Special Representative are hereby abolished. 
(b) To assist in carrying out the purpose of this Act— 
(1) there is hereby established, with its principal office at the 
seat of the government, a Mutual Security Agency, hereinafter 
referred to as the Agency, which shall be headed by the Director 
for Mutual Security; and 
(2) there shall be transferred to the Director the powers, func-
tions, and responsibilities conferred upon the Administrator for 
Economic Cooperation by the Economic Cooperation Act of 1948, 
as amended, and by any other law, but no such powers, functions, 
and responsibilities shall be exercised after June 30, 1952, except 
as provided in subsection (c) of this section. 
(c) Not later than April 1, 1952, the President shall inform 
the Committee on Foreign Relations of the Senate and the Com-
mittee on Foreign Affairs of the House of Representatives which 
of the powers, functions, and responsibilities transferred to the 
Director by subsection (b) (2) are found by the President to 
be necessary to enable the Director after June 30, 1952, to carry 
out the duties conferred upon him by section 503. The termina-
tion provisions of section 122 of the Economic Cooperation Act 
of 1948, as amended, shall come into effect on June 30, 1952, and 
none of the powers, functions, and responsibilities conferred by 
that Act shall be exercised after that date, except those powers, 
functions, and responsibilities found necessary to enable the 
Director to carry out the duties conferred on him by section 503 
of this Act, which powers, functions, and responsibilities unless 
otherwise provided by law shall continue in effect until June 30, 
1954. 
ADDITIONAL DUTIES or DIRECTOR FOR MUTUAL SECURITY 
SEC. 503. After June 30, 1952, the Director, on behalf of the Presi-
dent and subject to his direction, shall, in consultation with the Secre-
taries of State and Defense, continue to have primary responsibility 
for— 
65 STAT.] 
PUBLIC LAW 165—OCT. 10, 1951 
379 
(a) the development and administration of programs of assist-
ance designed to sustain and increase military effort, including 
production, construction, equipment and materiel in each country 
or in groups of countries which receive United States military 
assistance; 
(b) the provision of such equipment, materials, commodities, 
services, financial, or other assistance as he finds to be necessary 
for carrying out mutual defense programs; and 
(c) the provision of limited economic assistance to foreign 
nations for which the United States has responsibility as a result 
of participation in joint control arrangements when the President 
finds that the provision of such economic assistance is in the 
interest of the security of the United States. 
APPOINTMENT AND TRANSFER OF PERSONNEL 
SEC. 504. (a) To carry out the functions conferred by sections 
502 and 503 of this Act, there shall be in the Agency a Deputy 
Director, a Special Kepresentative in Europe, and a Deputy Special 
Representative in Europe, who shall be appointed by the President by 
and with the advice and consent of the Senate, and shall have status 
and receive compensation comparable to the equivalent positions under 
the Economic Cooperation Act of 1948, as amended. 
(b) Any personnel of the Economic Cooperation Administration, 
upon the certification of the Director for Mutual Security and with 
the approval of the Director of the Bureau of the Budget that such 
personnel are necessary to carry out the functions of the Director 
for Mutual Security, and all records and property of such Adminis-
tration which the Director of the Bureau of the Budget determines 
are used primarily in the administration of the powers and functions 
transferred to the Director for Mutual Security by this Act, shall be 
transferred to the Mutual Security Agency. 
(c) Of the personnel transferred to or employed by the Mutual 
Security Agency, not to exceed fifty may be compensated at rates 
higher than those provided for grade 15 of the general schedule estab-
lished by the Classification Act of 1949, as amended, and of these, 
not to exceed fifteen may be compensated at a rate in excess of the note. 
highest rate provided for grades of such general schedule but not in 
excess of $15,000 per annum. 
Such positions shall be in addition to 
the number authorized by section 505 of the Classification Act of 
1949, as amended. 
(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 Coopera-
tion 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 per-
sonnel are feasible and consistent with the accomplishment of the 
purposes of this Act. 
T H E SECRETARY OF STATE 
SEC. 505. Nothing contained in this Act shall be construed to infringe 
upon the powers or functions of the Secretary of State. 
T H E SECRETARY OF DEFENSE 
SEC. 506. (a) In the case of aid under this Act for military end items 
and related technical assistance and advice, the Secretary of Defense 
shall have primary responsibility and authority for— 
(1) the determination of military end-item requirements; 
Deputy Director, 
etc. 
62 Stat. 137. 
22 U. S. C. § 1601 
note. 
63 Stat. 954. 
5 U. S. 0. § 1071 
Reductions in per-
sonnel. 
380 
PUBLIC LAW 165—OCT. 10, 1951 
[65 STAT. 
(2) the procurement of military equipment in a manner which 
permits its integration with service programs; 
(3) the supervision of end-item use by the recipient countries; 
(4) the supervision of the training of foreign; military per-
sonnel ; and 
(5) the movement and delivery of military end items. 
(b) The establishment of priorities in the procurement, delivery, and 
allocation of military equipment shall be determined by the Secretary 
of Defense. The apportionment of funds between countries shall be 
determined by the President. 
tafTtems^'e^tc"^ °^'" 
(^) Notwithstanding any other provision of law, during the fiscal 
year 1952 the Secretary of Defense may furnish (subject to reim-
bursement from funds appropriated pursuant to this Act) military 
assistance out of the materials of war whose production in the United 
States shall have been authorized for, and appropriated to, the Depart-
ment of Defense: Provided^ however^ That nothing in this Act shall 
authorize the furnishing of military items under this subsection in 
excess of $1,000,000,000 in value. For the purposes of this subsection 
(1) "value" shall be determined in accordance with section 402 (c) 
2
2 u^^s 0^1573 
^^ ^^^ Mutual Defeusc Assistance Act of 1949, as amended, and (2) 
the term "materials of war" means those goods, commonly known as 
military items, which are required for the performance of their mis-
sions by armed forces of a nation, including weapons, military vehicles, 
ships of war under fifteen hundred tons, aircraft, military communi-
cations equipment, ammunition, maintenance parts and spares, and 
military hardware. 
OVERSEAS COORDINATION 
SEC. 507. The President shall prescribe appropriate procedures to 
assure coordination among representatives of the United States Gov-
ernment in each country, under the leadership of the Chief of the 
United States Diplomatic Mission. 
RELATIONSHIP 
TO 
TECHNICAL 
COOPERATION 
ADMINISTRATION 
AND 
INSTITUTE OF INTER-AMERICAN AFEAIRS 
SEC. 508. Nothing in this Act shall be construed to modify the pro-
7
8
0
^ Stat. 2
0
7
; 6
1 Stat, visions of sectiou 412 of the Act for International Development or the 
2
2 u. s. c. §
§ 1
5
5
7
J
, provisions of the Institute of Inter-American Affairs Act. 
281 note. 
^ 
DETAIL OF PERSONNEL TO FOREIGN GOVERNMENTS AND INTERNATIONAL 
ORGANIZATIONS 
SEC. 509. Whenever the President determines it to be consistent with 
and in furtherance of the purpose of this Act, the head of any Govern-
ment agency is authorized to— 
(a) detail or assign any officer or employee of his agency to any 
office or position to which no compensation is attached with any 
foreign government or foreign government agency: Provided^ 
That such acceptance of office shall in no case involve the taking 
of an oath of allegiance to another government; and 
(b) detail, assign, or otherwise make available to any inter-
national organization in which the United States participates, any 
officer or employee of his agency to serve with or as a member of 
the international staff of such organizations. 
Any such officer or employee, while so assigned or detailed, shall be 
considered, for the purpose of preserving his privileges, rights, 
seniority, or other benefits as such, an officer or employee of the Gov-
ernment of the United States and of the Government agency from 
which assigned or detailed, and he shall continue to receive compensa-
65 STAT.] 
PUBLIC LAW 165—OCT. 10, 1951 
381 
tion, allowances, and benefits from funds made available to that 
agency out of funds authorized under this Act. 
SECURITY CLEARANCE 
SEC. 510. No citizen or resident of the United States may be 
employed, or if already employed, may be assigned to duties by the 
Director or the Secretary of State under this Act or the Act for Inter-
national Development for a period to exceed three months unless 
(a) such individual has been investigated as to loyalty and security 
by the Federal Bureau of Investigation and a report thereon has been 
made to the Director or the Secretary of State, as the case may be, 
and until the Director or the Secretary of State has certified in writ-
ing (and filed copies thereof with the Senate Committee on Foreign 
Relations and the House Committee on Foreign Affairs) that, after 
full consideration of such report, he believes such individual is loyal 
to the United States, its Constitution, and form of government, and 
is not now and has never been a member of any organization advocat-
ing contrary views; or (b) such individual has been investigated by 
a military intelligence agency and the Secretary of Defense has 
certified in writing that he believes such individual is loyal to the 
United States and filed copies thereof with the Senate Committee on 
Foreign Relations and the House Committee on Foreign Affairs. 
This section shall not apply in the case of any officer appointed by the 
President by and with the advice and consent of the Senate, nor shall 
it apply in the case of any person already employed under programs 
covered by this Act who has been previously investigated in connection 
with such employment. 
ELIGIBILITY FOR ASSISTANCE 
SEC. 511. (a) No military, economic, or technical assistance author-
ized pursuant to this Act (other than assistance provided under section 
408 (e) of the Mutual Defense Assistance Act of 1949, as amended) 
22u.^s.a*'5i58o. 
shall be supplied to any nation in order to further military effort unless 
the President finds that the supplying of such assistance will 
strengthen the security of the United States and unless the recipient 
country has agreed to— 
(1) join in promoting international understanding and good 
will, and maintaining world peace; 
(2) take such action as may be mutually agreed upon to elimi-
nate causes of international tension; 
(3) fulfill the military obligations which it has assumed under 
multilateral or bilateral agreements or treaties to which the 
United States is a party; 
(4) make, consistent with its political and economic stability, 
the full contribution permitted by its manpower, resources, facil-
ities, and general economic condition to the development and 
maintenance of its own defensive strength and the defensive 
strength of the free world; 
(5) take all reasonable measures which may be needed to develop 
its defense capacities; and 
(6) take appropriate steps to insure the effective utilization of 
the economic and military assistance provided by the United 
States. 
(b) No economic or technical assistance shall be supplied to any 
other nation unless the President finds that the supplying of such 
assistance will strengthen the security of the United States and pro-
mote world peace, and unless the recipient country has agreed to join 
in promoting international understanding and good will, and in main-
taining world peace, and to take such action as may be mutually 
agreed upon to eliminate causes of international tension. 
382 
PUBLIC LAW 165—OCT. 10, 1951 
[65 STAT. 
FUTURE AUTHORIZATIONS 
SEC. 512. In order to carry out the purpose of this Act, with respect 
to those countries eligible to receive assistance as provided herein, funds 
shall be available as authorized and appropriated to the President each 
fiscal year. 
TRANSFERABILITY BETWEEN TITLES 
SEC. 513. 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 con-
solidated 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. 
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 Committees on Armed Services of the Senate and House of 
Representatives. 
STRATEGIC MATERIALS 
SEC. 514. In order to promote the increased production, in areas 
covered by this Act, of materials in which the United States is deficient, 
not to exceed $55,000,000 of the funds authorized to be appropriated 
pursuant to section 101 (a) (2) of this Act may be used pursuant to the 
62 Stat. 137. 
authority contained in the Economic Cooperation Act of 1948, as 
amended (22 U. S. C. 1501-1522). 
PROTECTION AGAINST ATTACHMENT 
SEC. 515. All countries participating in any United States aid pro-
gram or in any international organization receiving United States aid 
shall be required to so deposit, segregate, or assure title to all funds 
allocated to or derived from any program so that the same shall not be 
subject to garnishment, attachment, seizure, or other legal process by 
any person, firm, agency, corporation, organization, or government 
when in the opinion of the Director any such action would interfere 
with the attainment of the objectives of this Act. 
ENCOURAGEMENT OF FREE ENTERPRISE 
SEC. 516. 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 partici-
pation 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 pur-
poses 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. 
PATENTS AND TECHNICAL INFORMATION 
Definitions. 
SEC. 517. (a) As used in this section— 
(1) the term "invention" means an invention or discovery cov-
ered by a patent issued by the United States, and 
65 STAT.] 
PUBLIC LAW 165—OCT. 10, 1951 
383 
(2) the term "information" means information originated by 
or peculiarly within the knowledge of the owner thereof and those 
in privity with him, which is not available to the public and is 
subject to protection as property under recognized legal principles. 
(b) Whenever, in connection with the furnishing of any assistance 
in furtherance of the purpose of this Act— 
(1) use within the United States, without authorization by the 
owner, shall be made of an invention, or 
(2) damage to the owner' shall result from the disclosure of 
information by reason of acts of the United States or its officers 
or employees, 
the exclusive remedy of the owner of such invention or information 
^"**s-
shall be by suit against the United States in the Court of Claims or in 
the District Court of the United States for the district in which such 
owner is a resident for reasonable and entire compensation for unau-
thorized use or disclosure. 
In any such suit the United States may 
avail itself of any and all defenses, general or special, that might be 
pleaded by any defendant in a like action. 
(c) Before such suit against the United States has been instituted, 
the head of the appropriate department or agency of the Government, 
which has furnished any assistance in furtherance of the purpose of 
this Act, is authorized and empowered to enter into an agreement with 
the claimant, in full settlement and compromise of any claim against 
the United States hereunder. 
(d) The provisions of the last sentence of section 1498 of Title 28 
of the United States Code shall apply to inventions and information 
*
2 stat. 941. 
covered by this section. 
(e) Except as otherwise provided by law, no recovery shall be had 
for any infringement of a patent committed more than six years prior 
to the filing of the complaint or counterclaim for infringement in the 
action, except that the period between the date of receipt by the 
Government of a written claim under subsection (c) above for com-
pensation for infringement of a patent and the date of mailing by the 
Government of a notice to the claimant that his claim has been denied 
shall not be counted as part of the six years, unless suit is brought 
before the last-mentioned date. 
KEPORTS 
SEC. 518. The President, from time to time while funds appro-
priated for the purpose of this Act continue to be available for obliga-
tion, shall transmit to the Congress, in lieu of any reports otherwise 
required by laws continued in effect by this Act, reports covering 
each six months of operations in furtherance of the purpose of this 
Act, except information the disclosure of which he deems incom-
patible with the security of the United States. The first such report 
shall cover the six-month period commencing on the date this Act 
becomes effective. 
Reports provided for under this section shall be 
transmitted to the Secretary of the Senate or the Clerk of the House 
of Representatives, as the case may be, if the Senate or the House 
of Representatives, as the case may be, is not in session. 
LOCAL CURRENCY 
SEC. 519. (a) Upon a determination by the Director that it will 
further the purpose of this Act, not to exceed $10,000,000 of the funds 
made available pursuant to section 203 of this Act and not to exceed 
"
^
"
'
*
> P- ^
^
^
• 
$25,000,000 of funds made available pursuant to section 302 of this 
^'^«' P- ^76. 
Act may be advanced to countries covered by said sections in return 
for equivalent amounts of the currency of such countries being made 
76100 O - 52 (PT. I) - 27 
384 
PUBLIC LAW 166—OCT. 10, 1951 
[65 STAT. 
available to meet local currency needs of the aid programs in such 
countries pursuant to agreements made in advance with the United 
States: Provided^ That except when otherwise prescribed by the 
Director as necessary to the effective accomplishment of the aid pro-
grams in such countries, all funds so advanced shall be held under 
procedures set out in such agreements until used to pay for goods 
and services approved by the United States or until repaid to the 
United States for reimbursement to the appropriation from which 
drawn. 
(b) In order to assist in carrying out the provisions of the Economic 
Cooperation Act of 1948, as amended, not to exceed $50,000,000 of 
funds made available under the authority of this Act for assistance 
pursuant to the provisions of the Economic Cooperation Act of 1948, 
62 Stat. 137. 
^s amended (22 U. S. C. 1501-1522), may be used to acquire local 
currency for the purpose of increasing the production of materials 
in which the United States is deficient. 
GUARANTIES 
22 U. 8. C. § 1509. 
SEC. 520. Funds realized from the sales of notes pursuant to sec-
^Stat. 143.^^^ 
tion 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, as amended, in any 
area in which assistance is authorized by 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 Develop-
ment. 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 reim-
bursement from any appropriation for the administrative and operat-
ing 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 am^ded (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. 
LOANS 
SEC. 522. Section 111 (c) of the Economic Cooperation Act of 1948, 
22u^s c%i509 
^^ amended (22 U. S. C. 1501-1522), is hereby amended by adding a 
new paragraph as follows: 
"(3) Of the assistance provided under the applicable provisions of 
this Act with funds made available under the authority of the Mutual 
Security Act of 1951, as great an amount (in no event less than 10 per 
centum) as possible shall be provided on credit terms." 
64 Stat. 200. 
65 STAT.] 
PUBLIC LAW 165—OCT. 10, 1951 
385 
USE OF COUNTERPART 
SEC. 523. Section 115 (b) (6) of the Economic Cooperation Act of 
1948, as amended (22 U. S. C. 1513 (b) (6)), is hereby amended by— 
^^stat. isi. 
(a) inserting in the second proviso thereof after "wealth" the 
following: "for the encouragement of emigration pursuant to 
subsection (e) of this section"; 
(b) adding in the last clause of the second proviso "and operat-
ing" after "administrative"; 
(c) striking from the last clause of the second proviso "within 
such country"; 
(d) substituting in the fourth proviso the words "upon termina-
tion of assistance to such country under this Act" in place of the 
words "on June 30,1952"; and 
(e) adding at the end thereof the following new sentences: "The 
Administrator shall exercise the power granted to him by this 
paragraph to make agreements with respect to the usa of the funds 
deposited in the special accounts of 'participating countries' (as 
defined in section 103 (a) hereof) and any other countries receiv-
ing assistance under the Mutual Defense Assistance Act of 1949, 
^ TJ**S^^C 1
5
7
1 
as amended, in such a manner that the equivalent of not less than note. 
$500,000,000 of such funds shall be used exclusively for military 
production, construction, equipment, and materiel in such coun-
tries. The amount to be devoted from each such special account 
for such use shall be agreed upon by the Administrator and the 
country or countries concerned.". 
RETURN OF EQUIPMENT 
SEC. 524. The President shall make appropriate arrangements with 
each nation receiving equipment or material under the Mutual Defense 
Assistance Act of 1949, as amended (other than equipment or material 
^ u**s^^c § 1
5
7
1 
furnished under terms requiring the nation to reimburse the United note. 
States in full therefor), for the return to the United States (1) for 
salvage or scrap, or (2) for such other disposition as the President 
shall deem to be in the interest of mutual security, of any of such 
equipment or material as is no longer required for the purposes for 
which originally made available. 
REIMBURSABLE AID 
SEC. 525. Section 408 (e) of the Mutual Defense Assistance Act of 
1949, as amended (22 U. S. C. 1580), is hereby amended by adding in 
^ stat.720. 
the first proviso thereof, after the words "of which it is a part", the 
words "or in United Nations collective security arrangements and 
measures", and by changing the figure at the end of such section 408 
(e) to "$500,000,000". 
EXCESS EQUIPMENT 
SEC. 526. The proviso in the first sentence of section 403 (d) of the 
Mutual Defense Assistance Act of 1949, as amended (22 U. S. C. 1574 
^astat. 717. 
(d)), is hereby amended to read as follows: '''"Provided^ That after 
June 30, 1950, such limitation shall be increased by $250,000,000 and 
after June 30,1951, by an additional $300,000,000". 
CONGRESSIONAL COMMITTEE EXPENSES 
SEC. 527. Section 115 (h) of the Economic Cooperation Act of 1948, 
as amended (22 U. S. C. 1513 (h)) is amended by inserting before the 
^ ^
*
*
*
- ^• 
period at the end thereof a comma and the following: "including local 
386 
PUBLIC LAW 165—OCT. 10, 1951 
[65 STAT. 
etc. 
currency requirements of appropriate committees of the Congress 
engaged in carrying out their duties under section 136 of the Legisla-
tive Reorganization Act of 1946". 
UNITED NATIONS TECHNICAL ASSISTANCE 
SEO. 528. The Act for International Development is amended— 
^ u*8.^.'J 1
5
6
7
b
. 
(^) -^y adding before the period at the end of section 404 (b) the 
following: ": Provided^ That for the fiscal year ending June 30,1952, 
such contributions from funds made available under authority of 
sections 101 (a) (2), 203, 302, and 402 of the Mutual Security Act 
of 1951 shall not exceed in the aggregate $13,000,000, and the use of 
such contributions shall not be limited to the area covered by the 
section of the Act from which the funds are drawn". 
2
2 u. 8. c. § i557e. (^\^^ gy adding at the end of section 407 a new paragraph: 
"(d) Participating countries shall be encouraged to establish fair 
labor standards of wages and working conditions and management-
labor relations." 
2
2 u. s. c. s 1
5
5
7
1
. 
(c) By repealing section 414. 
TERMINATION OF ASSISTANCE BY PRESIDENT 
SEO. 529. If the President determines that the furnishing of assist-
ance to any nation— 
(a) is no longer consistent with the national interest or security 
of the United States or the policies and purpose of this Act; or 
(b) would contravene a decision of the Security Council of the 
United Nations; or 
(c) would be inconsistent with the principle that members of the 
United Nations should refrain from giving assistance to any 
nation against which the Security Council or the General 
Assembly has recommended measures in case of a threat to, or 
breach of, the peace, or act of aggression, 
he shall terminate all or part of any assistance furnished pursuant 
to this Act. The function conferred herein shall be in addition to all 
other functions heretofore conferred with respect to the termination 
of military, economic, or technical assistance. 
EXPIRATION or 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 
63 Stat. 714. 
Defense Assistance Act of 1949, as amended (22 U. S. C. 1571-1604) 
may be exercised; except that during the twelve 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 period for the necessary 
expenses of procurement, shipment, delivery, and other activities essen-
tial to such transfer and shall remain available during such period for 
the necessary expenses of liquidating operations under this Act. 
Transfer o
f powers, 
^j^^ ^^ g^^^.]^ ^-j^g j^g ^j^g President shall find appropriate after such 
date, and prior to the expiration of the twelve 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 trans-
ferred for the purpose of liquidation to such other departments, agen-
cies, or establishments of the Government as the President shall 
specify, and the relevant funds, records, property and personnel may 
65 STAT.] 
PUBLIC LAW 168—OCT. 11, 1951 
be transferred to the departments, agencies, or establishments to which 
the related functions are transferred. 
387 
EFFECTIVE DATE 
SEC. 531. Sections 502 (a), (b) (2), and section 504 (b) of this Act 
shall take effect on such date or dates as the President shall specify, 
but in no event later than sixty days after the date the Director first 
appointed takes office. Section 511 shall take effect ninety days after 
enactment of this Act. All other provisions of this Act shall take 
effect upon the date of its enactment. 
Approved October 10, 1951. 
Ante, pp. 378, 379. 
Public Law 166 
CHAPTER 480 
AN ACT 
Amending section 437 (c) of the Internal Revenue Code. 
October 10, 1951 
[H. R. 2562] 
Be it enacted hy tJie Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 437 
(c) of the Internal Revenue Code is amended by striking out "(other 
than mutual and other than life or marine)" and inserting in lieu 
thereof "taxable under the provisions of section 204". 
SEC. 2. The amendment made by section 1 shall have the same effect 
as if it had been a part of the said section 437 (c) on January 3,1951. 
Approved October 10, 1951. 
64 Stat. 1157. 
26U.S.C. § 437(c). 
Public Law 167 
CHAPTER 484 
AN ACT 
To authorize officers designated by the Secretary of the Air Force to take action 
on reports of survey and vouchers pertaining to Government property. 
October 11,1951 
[H. R. 1203] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That, under regu- 
R
e
p
^
r
t
s
*
*
o
f survey 
lations prescribed by the Secretary of the Air Force, designated officers etc. 
may take action upon reports oi survey and all other vouchers per-
taining to the loss, damage, spoilage, unserviceability, unsuitability, 
or destruction of property of the United States under the control of 
the Department of the Air Force, and the action taken by any such 
officer on those surveys or vouchers shall be final: Provided, That in 
any such case where a person or concern is held pecuniarily liable, the 
findings shall not be final until approved by the Secretary of the Air 
Force or by such officers as the Secretary may designate. 
Approved October 11, 1951. 
Public L a w 168 
CHAPTER 485 
AN ACT 
Making appropriations for the Legislative Branch for the fiscal year ending 
June 30, 1952, and for other purposes. 
October 11,1051 
[H. R. 4496] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America, in Congress assembled. That the following , Legislative Branch 
' • , 3 
. j t 
^ 
- i i m 
, , 1 
• " 
Appropriation Act, 
sums are appropriated, out of any money in the Treasury not otherwise 1
9
5
2
.