An Act to promote the security and foreign policy of the United States by furnishing assistance to friendly nations, and for other purposes
PL 83-665 (H.R.9678), enacted 08/26/1954

832 
PUBLIC LAW 664-AUG. 26, 1954 
[68 ST A T . 
Ante, p. 448. 
30,1954, and the date of enactment of this Act in anticipation of such 
appropriations, authorizations, and authority are hereby ratified and 
confirmed if in accordance with the terms hereof and the terms of 
Public Law 475, Eighty-third Congress. 
Approved August 26, 1954. 
August 26, 1954 
[S. 3233] 
Public Law 664 
CHAPTER936 
AN ACT 
To amend the Merchant Marine Act, 1936, to provide permanent legislation 
for the transportation of a substantial portion of waterborne cargoes in 
United States-flag vessels. 
U . S. merchant 
vessels. 
C a r g o prefer-
ence. 
49 Stat. 2015. 
46 u s e 1241. 
15 u s e 616a. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That section 901 
of the Merchant Marine Act, 1936, as amended, is hereby amended 
by inserting " ( a ) " after "SEC. 901." and by adding at the end of the 
section the following new subsection: 
"(b) whenever the United States shall procure, contract for, or 
otherwise obtain for its own account, or shall furnish to or for the 
account of any foreign nation without provision for reimbursement, 
any equipment, materials, or commodities, within or without the 
United States, or shall advance funds or credits or guarantee the con-
vertibility of foreign currencies in connection with the furnishing of 
such equipment, materials, or commodities, the appropriate agency 
or agencies shall take such steps as may be necessary and practicable 
to assure that at least 50 per centum of the gross tonnage of such 
equipment, materials, or commodities (computed separately for dry 
bulk carriers, dry cargo liners, and tankers), which may be trans-
ported on ocean vessels shall be transported on privately owned 
United States-flag commercial vessels, to the extent such vessels are 
available at fair and reasonable rates for United States-flag commer-
cial vessels, in such manner as will insure a fair and reasonable par-
ticipation of United States-flag commercial vessels in such cargoes by 
geographic areas: Provided^ That the provisions of this subsection 
may be waived whenever the Congress by concurrent resolution or 
otherwise, or the President of the United States or the Secretary of 
Defense declares that an emergency exists justifying a temporary 
waiver of the provisions of section 901 (b) and so notifies the appro-
priate agency or agencies: And provided further, That the provi-
sions of this subsection shall not apply to cargoes carried in the ves-
sels of the Panama Canal Company. Nothing herein shall repeal or 
otherwise modify the provisions of Public Resolution Numbered 17, 
Seventy-third Congress (48 Stat. 500), as amended." 
Approved August 26, 1954. 
August 26, 1954 
[H. R. 9678] 
Public Law 665 
CHAPTER 937 
AN ACT 
To promote the security and foreign policy of the United States by furnishing 
assistance to friendly nations, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
Mutual Security United Statcs of America in Congress assembled^ That this Act may 
Act o
f 1954. 
^^ ^-^g^ ^g ^j^g "Mutual Security Act of 1954". 
68 S T A T . ] 
PUBLIC LAW 6 6 5 - A U G . 26, 1954 
8321 
TITLE I—MUTUAL DEFENSE ASSISTANCE 
CHAPTER 1. MILITARY ASSISTANCE 
SEC. 101. PURPOSE OF CHAPTER.—The Congress of the United States 
reaffirms the policy of the United States to achieve international 
peace and security through the United Nations so that armed force 
shall not be used except in the common defense. The Congress hereby 
finds that the efforts of the United States and other nations to pro-
mote peace and security require additional measures of support based 
upon the principle of continuous and effective self-help and mutual 
aid. It is the purpose of this chapter to authorize measures in the 
common defense, including the furnishing of military assistance to 
friendly nations and international organizations in order to promote 
the foreign policy, security, and general welfare of the United States 
and to facilitate the effective participation of such nations in arrange-
ments for individual and collective self-defense. 
In furnishing such 
military assistance, it remains the policy of the United States to con-
tinue to exert maximum efforts to achieve universal control of 
weapons of mass destruction and universal regulation and reduction 
of armaments, including armed forces, under adequate safeguards to 
protect complying nations against violation and evasion. 
The Congress reaffirms its previous expressions favoring the creation 
by the free peoples of the Far East and the Pacific of a joint organiza-
tion, consistent with the Charter of the United Nations, to establish 
a program of self-help and mutual cooperation designed to develop 
their economic and social well-being, to safeguard basic rights and 
liberties and to protect their security and independence. 
The Congress hereby reiterates its opposition to the seating in the 
Co m m u n i s t 
United Nations of the Communist China regime as the representative of to w'seaSnl!""" 
China. 
In the event of the seating of representatives of the Chinese 
Communist regime in the Security Council or General Assembly of 
the United Nations, the President is requested to inform the Congress 
insofar as is compatible with the requirements of national security, 
of the implications of this action upon the foreign policy of the United 
States and our foreign relationships, including that created by mem-
bership in the United Nations, together with any recommendations 
which he may have with respect to the matter. 
SEC. 102. GENERAL AUTHORITY.—Military assistance may be fur-
nished under this chapter on a grant or loan basis and upon such other 
appropriate terms as may be agreed upon, by the procurement from 
any source and the transfer to eligible nations and international 
organizations of equipment, materials, and services or by the provision 
of any service, including the assignment or detail of members of the 
; 
Armed Forces and other personnelof the Department of Defense solely 
to assist in an advisory capacity or to perform other duties of a noncom-
batant nature, including military training or advice. 
SEC. 103. AUTHORIZATIONS.—(a) There is hereby authorized to be 
appropriated to the President, in addition to appropriations author-
ized by section 104, not to exceed $1,270,000,000, to carry out the pur-
j)Ose of this chapter; and, in addition, unexpended balances of appro-
priations for military assistance under each paragraph of the Mutual 
Security Appropriation Act, 1954 (including the appropriation for 
mutual special weapons planning), are hereby authorized to be con-
tinued available for the purpose of this chapter and to be consolidated 
with the appropriation authorized by this subsection; all of which is 
hereby authorized to be continued available through June 30, 1955. 
39777 0—55—pt. 1 
55 
834 
PUBLIC LAW 665-AUG. 26, 1954 
[68 S T A T . 
(b) Funds made available pursuant to subsection (a) of this section 
shall be available for the administrative and operating expenses of 
carrying out the purpose of this chapter including expenses incident 
to United States participation in international security organizations. 
(c) Funds made available pursuant to subsection (a) of this section 
may be used for the procurement of equipment or materials outside 
the United States unless the President determines that such procure-
ment will result in one or more of the following conditions: 
(1) Adverse effects upon the economy of the United States, 
with special reference to any areas of labor surplus, or upon the 
industrial mobilization base, which outweigh the strategic and 
logistic advantages to the United States of procurement abroad; 
(2) Production of such equipment or materials outside the 
United States under inadequate safeguards against sabotage or 
the release to potential enemies of information detrimental to 
the security of the United States; 
(3) Unjustifiable cost in comparison with procurement in the 
United States, taking into account transportation costs for 
delivery overseas; and 
(4) Delays in delivery incompatible with United States defense 
objectives. 
SEC. 104. INFRASTBUCTUKE.—(a) The President is authorized to 
make contributions to infrastructure programs of the North Atlantic 
Treaty Organization, in accordance with agreements already made 
between the member nations, out of funds made available pursuant 
to this section, or section 103, or chapter I X of the Supplemental 
66 Stat. 646. 
Appropriation Act, 1953, of amounts totaling not more than $780,-
000,000, less amounts already contributed for such purpose. 
There 
is hereby authorized to be appropriated to the President for such 
purpose, in installments prior to June 30, 1958, not to exceed $321,-
000,000, to remain available until expended. 
Such contributions by 
the United States shall not exceed its proportionate share, as here-
tofore agreed upon, of the expenses of such programs. 
(b) When the President determines that it is in the interest of the 
security of the United States to participate in programs for the 
acquisition or construction of facilities in foreign nations for collective 
defense other than programs of the North Atlantic Treaty Organiza-
tion, he may use for such purpose funds made available under section 
103 or local currencies made available under section 402 in amounts 
totaling not more than $50,000,000. 
(c) Notwithstanding section 501 of this Act, no funds other than 
those referred to in subsections (a) and (b) of this section may be 
expended for the purposes of this section. No funds shall be expended 
under this section for rental or purchase of land or for payment of 
taxes. 
SEC. 
105. CONDITIONS APPLICABLE TO MiLrrARY ASSISTANCE.—(a) 
Military assistance may be furnished under this chapter to any nation 
whose increased ability to defend itself the President shall have deter-
mined to be important to the security of the United States and which 
is otherwise eligible to receive such assistance. Equipment and mate-
rials furnished under this chapter shall be made available solely to 
maintain the internal security and legitimate self-defense of the 
recipient nation, or to permit it to participate in the defense of its area 
or in collective security arrangements and measures consistent with the 
Charter of the United Nations. The President shall be satisfied that 
such equipment and materials will not be used to undertake any act 
of aggression against any nation. 
68 STAT.] 
PUBLIC LAW 665-AUG. 26, 1954 
835 
(b) In addition to the authority and limitations contained in the 
preceding subsection, the following provisions shall apply to particular 
areas: 
(1) In order to promote an integrated defense of the North Atlantic 
area and to support concrete measures for political federation, mili-
tary integration, and economic unification in Europe, equipment and 
materials of the value programed for fiscal years 1954 and 1955 for 
nations signing the treaty constituting the European Defense Com-
munity shall, pending the coming into force of the treaty, be delivered 
only to such of these nations as have ratified the treaty, and have 
joined together in or are developing collective defense programs in 
a manner satisfactory to the United States as determined by the 
President. 
(2) Military assistance furnished to any nation in the Near East, 
Africa, and South Asia to permit it to participate in the defense of 
its area shall be furnished only in accordance with plans and arrange-
ments which shall have been found by the President to require the 
recipient nation to take an important part therein. 
(3) In furnishing military assistance in the Far East and the Pacific 
and in carrying out the provisions of section 121 of this Act, the 
President shall give the fullest assistance, as far as possible directly, 
to the free peoples in that area, including the Associated States of 
Cambodia, Laos, and Vietnam, in their creation of a joint organization, 
consistent with the Charter of the United Nations, to establish a 
program of self-help and mutual cooperation designed to develop 
their economic and social well-being, to safeguard basic rights and 
liberties, and to protect their security and independence. 
(4) Military assistance may be furnished to the other American 
Republics only in accordance with defense plans which shall have 
been found by the President to require the recipient nation to partici-
pate in missions important to the defense of the Western Hemisphere. 
(c) The Secretary of Defense shall insure that the value (as deter-
mined pursuant to section 545) of equipment, materials, and services 
heretofore furnished under military assistance programs authorized 
by Acts repealed by this Act or hereafter furnished pursuant to section 
103 (a) to nations or organizations in each of the four areas named 
in this subsection shall not exceed the total of the funds heretofore 
made available for military assistance in that area pursuant to Acts 
repealed by this Act plus the amount herein specified for that area: 
(1) In the European area 
(excluding Greece and Turkey), 
$617,500,000. 
(2) In the Near East (including Greece and Turkey), Africa, and 
South Asia, $181,200,000. 
(3) In the Far East and the Pacific, $583,600,000. 
(4) In the Western Hemisphere, $13,000,000. 
(d) Whenever the President determines it to be necessary for the 
purpose of this title, equipment, materials, and services of a value 
not to exceed 15 per centum of the sum of (1) that portion of the 
unexpended balances referred to in section 103 (a) which was available 
on June 30, 1954, to furnish assistance in any of the areas named in 
subsection (c) of this section, and (2) the amount specified in the 
applicable paragraph of subsection (c) of this section for additional 
assistance in such area, may be furnished in any other such area or 
areas, notwithstanding the limitations set forth in subsection (c) of 
this section. 
Funds heretofore obligated or programed or hereafter 
made available solely for the purpose of section 104 (pertaining to 
infrastructure) shall not be included in the total fixed for each such 
886 
PUBLIC LAW 665-AUG. 26, 1954 
[68 S T A T . 
area. Funds heretofore appropriated for military assistance in a 
particular geographic area but transferred from such use under section 
stat.^72o! ^^^' ®
^ ^13 of the Mutual Security Act of 1951, as amended, or under section 
1579 "^^ 16 64; 408 (c) of the Mutual Defense Assistance Act, shall be included in 
the total for the area for the benefit of which such transfer was made, 
and not in the total for the area from which the transfer was made. 
SEC. 106. SALE OF MILITARY EQUIPMENT, MATERIALS, AND SERVICES.— 
(a) The President may, in order to carry out the purpose of this 
chapter, sell or enter into contracts (without requirement for charge to 
any appropriation or contract authorization) for the procurement for 
sale of equipment, materials, or services to any nation or international 
oi:ganization: Provided, 
That prior to the transfer of any such 
equipment, materials, or services to any nation which has not signed 
an agreement under section 142 of this Act or joined with the United 
States in a regional collective defense arrangement, the President shall 
have received commitments satisfactory to him that such equipment, 
materials, or services are required for and will be used by such nation 
solely to maintain its internal security, its legitimate self-defense, or 
to permit it to participate in the defense of the area of which it is a 
part, or in collective security arrangements and measures consistent 
with the Charter of the United Nations, and that it will not undertake 
any act of aggression against any other state. 
(b) Whenever equipment or materials are sold from the stocks of 
or services are rendered by any United States Government agency to 
any nation or international organization as provided in subsection (a), 
such nation or international organization shall first make available 
the fair value, as determined by the President, of such equipment, 
materials, or services before delivery or, when the President deter-
mines it to be in the best interests of the United States, within sixty 
days thereafter or, as determined by the President, within a reasonable 
period not to exceed three years. The fair value for the purpose of 
this subsection shall not be less than the value as defined in subsection 
(h) of section 545: Provided, That with respect to excess equipment 
or materials the fair value may not be determined to be less than 
(i) the minimum value specified in that subsection plus the scrap value, 
or (ii) the market value, if ascertainable, whichever is the greater. 
Before a contract for new production is entered into, or rehabilitation 
work is undertaken, such nation or international organization shall 
(A) provide the United States with a dependable undertaking to j)ay 
the full amount of such contract or the cost of such rehabilitation 
which will assure the United States against any loss on the contract or 
rehabilitation work, and (B) shall make funds available in such 
amounts and at such times as may be necessary to meet the payments 
required by the contract or the rehabilitation work in advance of the 
time such payments are due, in addition to the estimated amount of 
any damages and costs that may accrue from the cancellation of such 
contract or rehabilitation work. 
(c) Sections 105,141, and 142 shall not apply with respect to assist-
ance furnished under this section. 
SEC. 107. WAIVERS or LAW.— (a) The President may perform any 
of the functions authorized under this chapter without regard to (1) 
io^ifsc*"262a; the provisious of title 10, United States Code, section 1262 (a), and 
34 use 546e. 
' title 34, United States Code, section 546 (e) ; and (2) such provisions 
as he may specify of the joint resolution of November 4, 1939 (54 
Stat. 4), as amended. 
(b) Notwithstanding the provisions of Revised Statutes 1222 (10 
U. S. C. 576), personnel of the Department of Defense may be assigned 
or detailed to any civil office for the purpose of enabling the President 
to furnish assistance under this Act. 
22 use 441 note. 
68 S T A T . ] 
PUBLIC LAW 665-AUG. 26, 1954 
837 
SEC. 108. TRANSFER OF MILITARY EQUIPMENT TO JAPAN.—^In addition 
to any program of military assistance for which funds may be appro-
priated pursuant to this Act, the President is hereby authorized to 
transfer to the Government of Japan, until June 30, 1955, upon such 
terms and conditions as he may specify, and upon its request. United 
States military equipment and supplies programed for Japan to 
meet its internal security requirements for which Department of 
Defense appropriations were obligated prior to July 1, 1953. No 
appropriation shall be requested to replace the military equipment 
and supplies so transferred, and no funds heretofore or hereafter 
appropriated for the purpose of this chapter shall be available for 
reimbursement to any United States Government agency on account 
of any transfer made pursuant to this section. 
CHAPTER 2—SOUTHEAST ASIA AND THE WESTERN PACIFIC, AND DIRECT 
FORCES SUPPORT 
SEC. 121. SOUTHEAST ASIA AND THE WESTERN PACIFIC.—There is 
hereby authorized i.o be appropriated to the President for the fiscal 
year 1955, to be made available on such terms and conditions, including 
transfer of funds, as he may specify, not to exceed $700,000,000 for 
expenses necessary for the support of the forces of nations in the area 
of Southeast Asia, including the furnishing, as far as possible, of 
direct assistance to the Associated States of Cambodia, Laos, and 
Vietnam as well as to the forces of other free nations in the area includ-
ing those of France located in such Associated States and for other ex-
penditures to accomplish in Southeast Asia and the Western Pacific 
the policies and purposes declared in this Act. In addition, the unex-
pended balances of funds allocated from appropriations made pur-
suant to sections 304 and 540 of the Mutual Security Act of 1951, as 
22^iJsc^i'7\f4', 
amended, for the purpose of support of the forces of the Associated lersi. 
States of Cambodia, Laos, and Vietnam and the forces of France 
located in the Associated States, are hereby authorized to be continued 
available for the purpose of this section through June 30, 1955, and 
to be consolidated with the appropriation authorized by this section. 
Assistance under this section shall be made available subject to the 
provisions of sections 141 and 142, except that (1) in the case of assist-
ance to the Associated States of Cambodia, Laos, and Vietnam, and 
(2) in the case of assistance (not to exceed in the aggregate 10 per 
centum of the amount appropriated pursuant to this section, excluding 
unexpended balances of prior appropriations) to other nations, the 
President may waive specific provisions of section 142 to the extent 
he may deem necessary in the national interest to carry out the pur-
poses of this Act. The President or such officer as he may designate 
^8sio'nai°c'^o°m-
shall report each instance of such waiver to the Foreign Kelations, mittees. 
Appropriations, and Armed Services Committees of the Senate and the 
Foreign Affairs, Appropriations, and Armed Services Committees of 
the House of Representatives within thirty days. 
It is the sense of the Congress that no part of the funds appropri-
ated under th^s section shall be used on behalf of governments which 
are committed by treaty to maintain Communist rule over any defined 
territory of Asia. 
SEC. 122. PRODUCTION FOR FORCES SUPPORT.—^There is hereby author-
ized to be appropriated to the President for the fiscal year 1955, to 
be made available on such terms and conditions, including transfer 
of funds, as he may specify, not to exceed $35,000,000 for manufacture 
in the United Kingdom of military aircraft required by United King-
PUBLIC LAW 665-AUG. 26, 1954 
[68 STAT. 
dom forces for the defense of the North Atlantic area. In addition, 
unexpended balances of appropriations made pursuant to section 102 
22 vie 1682. 
?f the Mutual Security Act of 1951, as amended, are hereby author-
ized to be continued available for their original purposes through 
June 30,1955, and the unexpended balance of the appropriation made 
pursuant to the second clause of that secttion is authorized to be con-
solidated with the appropriation authorized by this section. 
SEC. 123. COMMON USE ITEMS.—There is hereby authorized to be 
appropriated to the President for the fiscal year 1955 not to exceed 
$60,000,000 for the provision of any common-use equipment, materi-
als, commodities, or services which are to be used by military forces 
of nations receiving assistance under chapter 1 of this title. Programs 
authorized by this section shall be administered in accordance with 
the provisions of chapter 1 or chapter 3 of this title. 
CHAPTER 3—DEFENSE SUPPORT 
SEC. 131. GENERAL AuTHORrrr.—(a) The President is hereby 
authorized to furnish, to nations and organizations eligible to receive 
military assistance under chapter 1 of this title, or to nations which 
have joined with the United States in a regional collective defense 
arrangement, commodities, services, and financial and other assistance 
designed to sustain and increase military effort. 
In furnishing such 
assistance, the President may provide for the procurement and trans-
fer from any source of any commodity or service (including process-
ing, storing, transporting, marine insurance, and repairing) or any 
technical information and assistance. 
(b) There is hereby authorized to be appropriated to the President 
for the fiscal year 1955 to carry out the provisions of this sect^ion, not 
to oycoofi 
(1) $46,000,000 for Europe (excluding Greece and Turkey); 
(2) $73,000,000 for the Near East (including Greece and Tur-
key), Africa, and South Asia; and 
(3) $80,098,195 for the Far East and the Pacific. 
In addition, unexpended balances of appropriations heretofore made 
22uscil7%. 
pursuant to section 541 of the Mutual Security Act of 1951, as 
amended, are hereby authorized to be continued available for the 
purpose of this subsection through June 30, 1955, and to be con-
solidated with the appropriation authorized for the same area by 
this subsection: Provided, That portions of such unexpended balances 
which have been allocated to assistance for Greece and Turkey shall 
be consolidated with the appropriation authorized by paragraph (2) 
of this subsection. 
SEC. 132. KOREAN PROGRAM.—(a) There is hereby authorized to be 
appropriated to the President for the fiscal year 1955 not to exceed 
$205,000,000 to be expended, upon terms and conditions specified by 
the President, for defense support, relief and rehabilitation, and other 
necessary assistance (including payment of ocean freight charges on 
shipments for relief and rehabilitation, without regard to section 409 
of this Act) in those parts of Korea which the President shall have 
determined to be not under Communist control. In addition, unex-
pended balances of funds heretofore allocated for the purpose of relief 
and rehabilitation in Korea pursuant to the paragraph entitled "Belief 
and Rehabilitation in Korea", chapter VII, Supplemental Appropri-
67 Stat. 425. 
atiou Act, 1954, and unobligated balances of the appropriation for 
"Civilian Relief in Korea", title III, Department of Defense Appro-
67 Stat. 341. 
priatiou Act, 1954, are hereby authorized to be continued available 
for the purposes of this subsection through June 30, 1955, and to be 
consolidated with the appropriation authorized by this subsection. 
68 S T A T . ] 
PUBLIC LAW 665-AUG. 26, 1954 
839 
(b) (1) Notwithstanding the provisions of any other law, the Presi-
dent is authorized, at any time prior to twenty-four months from the 
date of enactment of this Act, to transfer to the Kepublic of Korea, 
by sale or charter and on such terms and conditions as he may specify, 
not more than eight Cl-M-AVl vessels. Any agency of the United 
States Government owning or operating such vessels is authorized 
to make such vessels available for the purpose of this subsection: 
Provided, That if after investigation it is determined by the President 
that there are privately owned Cl-M-AVl vessels offered and avail-
able for sale by American citizens as defined in section 2 of the Ship-
ping Act, 1916, as amended, at prices equal to or less than those pro- 
39 si^t_. 729. 
vided for in subsection (b) (2) below, such vessels shall be acquired 
by an owning or operating agency designated by the President for 
the purpose of this subsection. 
Funds made available pursuant to 
subsection (a) of this section shall be available for the purpose of this 
subsection. 
(2) Such transfers shall be made at prices determined under section 
3 of the Merchant Ship Sales Act of 1946 (50 U. S. C, App. 1736) : 
60 stat. 4i. 
Provided, That such vessels shall be placed in class in accordance with 
minimum requirements of the American Bureau of Shipping by the 
owning or operating agency, and the expense of placing in class shall 
be reimbursed to such agency. 
(c) There is hereby authorized to be appropriated for the fiscal year 
1955 not to exceed $3,452,615 for making contributions to the United 
Nations Korean Reconstruction Agency or expenditure through such 
other agency for relief and rehabilitation in Korea as the President 
may direct. In addition, the unexpended balance of the appropriation 
made pursuant to the last sentence of section 303 (a) of the Mutual 
Security Act of 1961, as amended, is hereby authorized to be continued 
^s s^t^. 3
7
^
&
^ 
available for the purpose of this subsection through June 30, 1955, 
and to be consolidated with the appropriation authorized by this sub-
section. Sections 141 and 142 of this Act shall not apply with respect 
to assistance furnished under this subsection. 
(d) To the extent necessary to accomplish the purposes of this section 
(1) assistance may be furnished under this section without regard to 
the other provisions of this title and (2) the authority provided in 
section 307 may be exercised in furnishing assistance under subsection 
(a) of this section. 
CHAPTER 4—GENERAL PROVISIONS RELATING TO MUIUAL DEFENSE 
ASSISTANCE 
SEC. 141. CONDITIONS OF ELIGIBILITY FOR ASSISTANCE.—No assistance 
shall be furnished under this title to any nation or organization unless 
the President shall have found that furnishing such assistance will 
strengthen the security of the United States and promote world peace. 
No such assistance shall be furnished to a nation unless it shall have 
agreed to the provisions required by section 142, and such additional 
provisions as the President deems necessary to effectuate the policies 
and provisions of this title and to safeguard the interests of the United 
States. 
SEO. 142. AGREEMENTS.—No assistance shall be furnished to any 
nation under this title unless such nation shall have 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 
eliminate causes of international tension; 
(3) fulfill the military obligations, if any, which it has 
assumed under multilateral or bilateral agreements or treaties 
to which the United States is a party; 
840 
PUBLIC LAW 665-AUG. 26, 1954 
[68 S T A T . 
(4) make, consistent with its political and economic stability, 
the full contribution permitted by its manpower, resources, 
facilities, 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; 
(6) take appropriate steps to insure the effective utilization 
of the assistance furnished under this title in furtherance of 
the policies and purposes of this title; 
(7) impose appropriate restrictions against transfer of title 
to or possession of any equipment and materials, information, 
or services furnished under chapter 1 of this title, without the 
consent of the President; 
(8) maintain the security of any article, service, or information 
furnished under chapter 1 of this title; 
(9) 
furnish equipment and materials, services, or other 
assistance consistent with the Charter of the United Nations, to 
the United States or to and among other nations to further the 
policies and purpose of chapter 1 of this title; 
(10) permit continuous observation and review by United 
States representatives of programs of assistance authorized under 
this title, including the utilization of any such assistance, or 
provide the United States with full and complete information 
with respect to these matters, as the President may require; and 
Special Account. 
( n ) in cases whcrc any commodity is furnished on a grant 
basis under any provision of this Act other than chapter 1 of 
title I under arrangements which will result in the accrual of 
proceeds to the recipient nation from the import or sale thereof, 
establish a Special Account, and— 
(i) deposit in the Special Account, under such terms and 
conditions as may be agreed upon, currency of the recipient 
nation in amounts equal to such proceeds; 
(ii) make available to the United States such portion of 
the Special Account as may be determined by the President 
to be necessary for the requirements of the United States: 
Provided^ That such portion shall not be less than 10 per 
centum in the case of any country to which such minimum 
requirement has been applicable under any Act repealed 
by this Act; and 
(iii) utilize the remainder of the Special Account for 
programs agreed to by the United States to carry out the 
purposes for which new funds authorized by this Act would 
themselves be available. 
Any unencumbered balances of funds which remain in the 
Account upon termination of assistance to such nation under this 
Act shall be disposed of for such purposes as may, subject to 
approval by Act or joint resolution of the Congress, be agreed to 
between such country and the Government of the United States. 
TITLE II—DEVELOPMENT ASSISTANCE 
SEC. 201. AUTHORIZATION.—(a) There is hereby authorized to be 
appropriated to the President for the fiscal year 1955, not to exceed— 
(1) $115,000,000 for assistance designed to promote the eco-
nomic development of the Near East and Africa, and for other 
types of assistance designed to help maintain economic and politi-
cal stability in the area; 
68 S T A T . ] 
PUBLIC LAW 665-AUG. 26, 1964 
841 
(2) $75,000,000 for assistance designed to promote the economic 
development of South Asia and to assist in maintaining economic 
and political stability in the area; and 
(3) $9,000,000 for assistance designed to promote economic 
development in the other American Republics and non-self-gov-
erning territories of the Western Hemisphere. 
Such assistance may be furnished on such terms and conditions as the 
President may specify, except that 30 per centum of the funds appro-
priated pursuant to this subsection shall be available only for furnish-
ing assistance on terms of repayment in accordance with section 505. 
(b) In addition, unexpended balances of appropriations heretofore 
made pursuant to sections 206 and 302 (b) of the Mutual Security 
Act of 1951, as amended, and unexpended balances of funds allocated stau^*76l ^^^' ^^ 
to the emergency economic aid program for Bolivia are hereby author- 
22 use 169e, 
ized to be continued available for the purposes of this section through ^ ^^ * 
June 30,1955, and to be consolidated with the appropriations author-
ized by paragraphs (1), (2), and (3) of subsection (a) of this section, 
respectively. 
SEC. 202. ADMINISTRATION.—Except as necessary to accomplish the 
purposes of section 201, programs of assistance authorized by that 
section shall be administered in accordance with sections 303 and 308 
(relating to technical cooperation). 
T I T L E III—TECHNICAL COOPERATION 
SEC. 301. DECLARATION OF PURPOSE.—^It is the policy of the United 
States and the purpose of this title to aid the efforts of the peoples of 
economically underdeveloped areas to develop their resources and 
improve their working and living conditions by encouraging the 
exchange of technical know^ledge and skills and the flow of investment 
capital to countries which provide conditions under which such tech-
nical assistance and capital can effectively and constructively con-
tribute to raising standards of living, creating new sources of wealth, 
increasing productivity and expanding purchasing power. 
SEC. 302. GENERAL AUTHORITY AND DEFINITION.—The President is 
authorized to furnish assistance in accordance with the provisions of 
this title through bilateral technical cooperation programs. As used 
in this title, the term "technical cooperation programs" means pro-
grams for the international interchange of technical knowledge and 
skills designed to contribute primarily to the balanced and integrated 
development of the economic resources and productive capacities of 
economically underdeveloped areas. 
Such activities shall be limited 
to economic, engineering, medical, educational, labor, agricultural, 
forestry, fishery, mineral, and fiscal surveys, demonstration, training, 
and similar projects that serve the purpose of promoting the develop-
ment of economic resources, productive capacities, and trade of eco-
nomically underdeveloped areas, and training in public administration. 
The term "technical cooperation programs" does not include such 
activities authorized by the United States Information and Educa-
tional Exchange Act of 1948 (62 Stat. 6) as are not primarily related ^^2^2 use 1431 
to economic development, nor activities undertaken now or hereafter 
pursuant to the International Aviation Facilities Act (62 Stat. 450), ^^••J' use 1 isi 
nor activities undertaken now or hereafter in the administration of 
areas occupied by the United States Armed Forces. 
SEC. 303. PREREQUISITES TO ASSISTANCE.—Assistance shall be made 
available under section 302 of this Act only where the President deter-
mines that the nation being assisted— 
(a) pays a fair share of the cost of the program; 
842 
PUBLIC LAW 665-AUG. 26, 1954 
[68 S T A T . 
(b) provides all necessary information concerning such pro-
gram and gives the program full publicity; 
(c) seeks to the maximum extent possible full coordination and 
integration of technical cooperation programs being carried on in 
that nation; 
(d) endeavors to make effective use of the results of the pro-
gram; and 
(e) cooperates with other nations participating in the program 
in the mutual exchange of technical knowledge and skills. 
SEC. 304. AUTHORIZATION.—There is hereby authorized to be appro-
priated to the President for the fiscal year 1955 $88,570,000 for tech-
nical cooperation programs in the Near East, Africa, South Asia, and 
Far East and Pacific, and $28,500,000 for such programs in Latin 
America. In addition, unexpended balances of appropriations hereto-
22 u^c IITS/. 
^OI"® made pursuant to section 543 of the Mutual Security Act of 1951, 
as amended, are authorized to be continued available for the purposes 
of this section through June 30, 1955, and to be consolidated with the 
appropriation authorized by this section. 
SEC. 305. LIMITATION ON USE OF FUNDS.—Funds made available 
under section 304 may be expended to furnish assistance in the form 
of equipment or commodities only where necessary for instruction or 
demonstration purposes. 
SEC. 306. MULTILATERAL TECHNICAL COOPERATION.—As one means 
of accomplishing the purposes of this title, the United States is author-
ized to participate in multilateral technical cooperation programs 
carried on by the United Nations, the Organization of American 
States, their related organizations, and other international organi-
zations, wherever practicable. 
There is hereby authorized to be 
appropriated to carry out the purpose of this section, in addition to 
the amounts authorized by section 304, not to exceed— 
(a) $17,958,000 for making contributions to the United Nations 
Expanded Program of Technical Assistance; 
(b) $1,500,000 for making contributions to the technical 
cooperation program of the Organization of American States. 
SEC. 307. ADVANCES AND GRANTS; CONTRACTS.—^The President may 
make advances and grants-in-aid of technical cooperation programs 
to any person, corporation, or other body of persons or to any foreign 
government agency. The President may make and perform contracts 
and agreements in respect of technical cooperation programs on behalf 
of the United States Government with any person, corporation, or 
other body of persons however designated, whether within or without 
the United States, or with any foreign government or foreign govern-
ment agency. A contract or agreement which entails commitments 
for the expenditure of funds appropriated pursuant to this title may, 
subject to any future action of the Congress, run for not to exceed 
three years. 
SEC. 308. INTERNATIONAL DEVELOPMENT ADVISORY BOARD.—There 
shall be an advisory board, referred to in this section as the "Board", 
which shall advise and consult with the President, or such other officer 
as he may designate to administer this title, with respect to general or 
basic policy matters arising in connection with the operation of pro-
grams authorized by this title, title II, and section 413 (b). The 
Board shall consist of not more than thirteen members appointed by 
the President, one of whom, by and with the advjce and consent of the 
Senate, shall be appointed by him as chairman. 
The members of the 
Board shall be broadly representative of voluntary agencies and 
other groups interested in the programs, including business, labor, 
agriculture, public health, and education. All members of the Board 
shall be citizens of the United States; none except the chairman shall 
68 S T A T . ] 
PUBLIC LAW 665-AUG. 26, 1954 
843 
be an officer or an employee of the United States (including any 
United States Government agency) who as such regularly receives 
compensation for current services. Members of the Board, other than 
the chairman if he is an officer of the United States Government, shall 
receive out of funds made available for the purpose of this title a per 
diem allowance of $50 for each day spent away from their homes 
or regular places of business for the purpose of attendance at meet-
ings of the Board or at conferences held upon the call of the chairman, 
and in necessary travel, and while so engaged they may be paid actual 
travel expenses and not to exceed $10 per diem in lieu of subsistence 
and other expenses. 
TITLE IV—OTHEK PROGRAMS 
SEC. 401. SPECIAL FUND.—Of the funds made available under this 
Act, not to exceed $150,000,000 may be used in any fiscal year, without 
regard to the requirements of this Act or any other Act for which 
funds are authorized by this Act, in furtherance of any of the purposes 
of such Acts, when the President determines that such use is impor-
tant to the security of the United States. Not to exceed $100,000,000 of 
the funds available under this section may be expended for any 
selected persons who are residing in or escapees from the Soviet Union, 
Poland, Czechoslovakia, Hungary, Rumania, Bulgaria, Albania, Lith-
uania, Latvia, and Estonia or the Communist-dominated or Commu-
nist-occupied areas of Germanj and Austria, or any Communist-
dominated or Communist-occupied areas of Asia and any other coun-
tries absorbed by the Soviet Union, either to form such persons into 
elements of the military forces supporting the North Atlantic Treaty 
Organization or for other purposes, when the President determines 
that such assistance will contribute to the defense of the North At-
lantic area or to the security of the United States. Certification by 
the President that he has expended amounts under this section not 
in excess of $50,000,000, and that it is inadvisable to specify the nature 
of such expenditures, shall be deemed a sufficient voucher for such 
amounts. Not more than $20,000,000 of the funds available under 
this section may be allocated to any one nation in any fiscal year. 
SEC. 402. EARMARKING OF FUNDS.—Of the funds authorized to be 
made available pursuant to this Act not less than $350,000,000 shall 
be used to finance the export and sale for foreign currencies of surplus 
agricultural commodities or products thereof produced in the United 
States, in addition to surplus agricultural commodities or products 
transferred pursuant to the Agricultural Trade Development and 
Assistance Act of 1954, and in accordance with the standards as to 
^"^^' P* ^^4. 
pricing and the use of private trade channels expressed in section 101 
of said Act. 
Foreign currency proceeds accruing from such sales shall 
be used for the purposes of this Act and with particular emphasis on 
the purposes of section 104 of the Agricultural Trade Development and 
Assistance Act of 1954 which are in harmony with the purposes 
of this Act. Notwithstanding section 1415 of the Supplemental 
Appropriation Act, 1953, or any other provision of law, the President 
|^ ^^ 
^^^ 
may use or enter into agreements with friendly nations or organizations 
of nations to use for such purj)oses the foreign currencies which accrue 
to the United States under this section. 
SEC. 403. SPECIAL ASSISTANCE IN JOINT CONTROL AREAS.—The 
President is hereby authorized to furnish commodities, services, and 
financial and other assistance to nations and areas for which the 
United States has responsibility as a result of participation in joint 
control arrangements where found by the President to be in the interest 
of the security of the United States. There is hereby authorized to be 
844 
PUBLIC LAW 665-AUG. 26, 1954 
[68 S T A T . 
appropriated to the President for the fiscal year 1955 not to exceed 
$25,000,000 to carry out this section. 
SEC. 404. KESPONSIBILITIES IN GERMANY.—Upon approval by the 
Secretary of State, a part of the German currency now or hereafter 
deposited under the bilateral agreement of December 15,1949, between 
64 Stat. B81. 
^]^g United States and the Federal Eepublic of Germany (or any 
supplementary or succeeding agreement) shall be deposited in the 
GAEIOA 
(Government and Relief in Occupied Areas) 
Special 
Account under the terms of article V of that agreement, and currency 
which has been or may be deposited in said account, and any portion 
of funds made available for assistance to the Federal Republic of 
Germany pursuant to section 403 of this Act, may be used for expenses 
necessary to meet the responsibilities or objectives of the United States 
in Germany, including responsibilities arising under the supreme 
authority assumed by the United States on June 5, 1945, and under 
contractual arrangements with the Federal Republic of Germany. 
Expenditures may be made under authority of this section in amounts 
and under conditions determined by the Secretary of State after con-
sultation with the oiRcial primarily responsible for administration of 
programs under chapter 3 of title I, and without regard to any pro-
vision of law which the President determines must be disregarded in 
order to meet such responsibilities or objectives. 
SEC. 405. MOVEMENT or MIGRANTS AND REFUGEES.—(a) The Presi-
dent is hereby authorized to continue membership for the United 
States on the Intergovernmental Committee for European Migration 
in accordance with its constitution approved in Venice, Italy, on 
October 19, 1953. For the purpose of assisting in the movement of 
migrants, there is hereby authorized to be appropriated not to exceed 
$11,189,190 for contributions during the calendar year 1955 to the 
Intergovernmental Committee for European Migration, and thereafter 
such amounts as may be necessary from time to time for the payment 
by the United States of its contributions to the Committee and all 
necessary salaries and expenses incident to United States participation 
in the Committee. 
In addition, the unexpended balance of the 
appropriation made pursuant to section 534 of the Mutual Security 
22 u^c msc. 
^^^ ^f 1951, as amended, is hereby authorized to be continued available 
for the purpose of this subsection through June 30, 1955, and to be 
consolidated with the appropriation authorized in this subsection. 
Limitation. 
^j^^ Qf ^j^g fuuds made available under this Act, not more than 
$800,000 may be used by the President to facilitate the migration to 
the other American Republics of persons resident in that portion of 
the Ryukyu Island Archipelago under United States control. 
(c) There is hereby authorized to be appropriated for the fiscal year 
1955 not to exceed $500,000 for contributions to the United Nations 
Refugee Emergency Fund. 
SEC. 406. CHILDREN'S WELFARE.—There is hereby authorized to be 
appropriated not to exceed $13,500,000 for contributions during the 
fiscal year 1955 to the United Nations Children's Fund. 
SEC. 407. PALESTINE REFUGEES IN THE NEAR EAST.—^There is hereby 
authorized to be appropriated to the President for the fiscal year 1955, 
not to exceed $30,000,000, to be used to make contributions to the 
United Nations Relief and Works Agency for Palestine Refugees in 
the Near East. In addition, the unexpended balance of the appropria-
tion made for the Palestine refugee program in the Mutual Security 
67 Stat. 479. 
Appropriation Act, 1954, is hereby authorized to be continued avail-
able for the purpose of this section through June 30,1955. 
Whenever 
the President shall determine that it would more effectively contribute 
to the relief, rehabilitation, and resettlement of Palestine refugees in 
68 S T A T . ] 
PUBLIC LAW 665-AUG. 26, 1954 
845 
the Near East, he may expend any part of the funds made available 
pursuant to this section through any other agency he may designate. 
SEC. 408. NORTH ATLANTIC TREATY ORGANIZATION.—(a) In order 
to provide for United States participation in the North Atlantic 
Treaty Organization, there is hereby authorized to be appropriated 
for the fiscal year 1955 not to exceed $3,200,000 for payment by the 
United States of its share of the expenses of the Organization, and 
thereafter such amounts as may be necessary from time to time for the 
payment by the United States of its share of the expenses of the Organ-
ization and all necessary salaries and expenses of the United States 
permanent representative to the Organization, of such persons as may 
be appointed to represent the United States in the subsidiary bodies 
of the Organization or in any multilateral organization which partici-
pates in achieving the aims of the North Atlantic Treaty, and of their 
appropriate staffs, and the expenses of participation in meetings of 
such organizations, including salaries, expenses, and allowances of 
personnel and dependents as authorized by the Foreign Service Act 
of 1946, as amended (22 U. S. C. 801), and allowances and expenses 
as provided in section 6 of the Act of July 30,1946 (22 U. S. C. 287r). 
(b) The United States permanent representative to the North Atlan-
tic Treaty Organization shall be appointed by the President by and 
with the advice and consent of the Senate and shall hold office at 
the pleasure of the President. 
Such representative shall have the 
rank and status of ambassador extraordinary and plenipotentiary 
and shall be a chief of mission, class 1, within the meaning of the 
Foreign Service Act of 1946, as amended (22 U. S. C. 801). 
(c) Persons detailed to the international staff of the North Atlan-
tic Treaty Organization in accordance with section 529 of this Act 
who are appointed as Foreign Service Reserve officers may serve for 
periods of more than four years notwithstanding the limitation in 
section 522 of the Foreign Service Act of 1946, as amended (22 U. S. C. 
922). 
SEC. 409. OCEAN FREIGHT CHARGES.—(a) In order to further the 
efficient use of United States voluntary contributions for relief and 
rehabilitation in nations and areas eligible for assistance under this 
Act, the President may pay ocean freight charges from United States 
ports to designated ports of entry of such nations and areas on ship-
ments by United States voluntary nonprofit relief agencies registered 
with and approved by the Advisory Committee on Voluntary Foreign 
Aid and shipments by the American Red Cross. 
(b) Where practicable the President shall make arrangements with 
the receiving nation for free entry of such shipments and for the 
making available by that nation of local currencies for the purpose 
of defraying the transportation cost of such shipments from the port 
of entry of the receiving nation to the designated shipping point of 
the consignee. 
(c) There is hereby authorized to be appropriated to the President 
for the fiscal year 1955 not to exceed $4,400,000 to carry out the pur-
poses of this section; and, in addition, unexpended balances of appro-
priations heretofore made pursuant to section 535 of the Mutual 
Security Act of 1951, as amended, are authorized to be continued 
available for the purposes of this section through June 30, 1955, and 
to be consolidated with the appropriation authorized in this section. 
(d) In addition, any funds made available under this Act may be 
used, in amounts determined by the President, to pay ocean freight 
charges on shipments of surplus agricultural commodities, including 
commodities made available pursuant to any Act for the disposal 
abroad of United States agricultural surpluses. 
60 Stat. 999. 
60 Stat. 714. 
NATO. 
Permanent r e p -
resentative. 
60 Stat. 999. 
60 Stat. 1009. 
66 Stat. 147. 
22 u s e 1675d. 
846 
PUBLIC LAW 665-AUG. 26, 1954 
[68 S T A T , 
SEC. 410. CONTROL ACT EXPENSES,—There is hereby authorized to 
be appropriated to the President for the fiscal year 1955 not to exceed 
$1,300,000 for carrying out the objectives of the Mutual Defense 
65 Stat. 644. 
Assistauce Control Act of 1951 (22 U. S. C. 1611). In addition, in 
22 use feisb. 
accordance with section 303 of that Act, funds made available for 
carrying out chapter 1 of title I of this Act shall be available for 
carrying out the purpose of this section in such amounts as the 
President may direct. 
SEC. 411. ADMINISTRATIVE EXPENSES.—(a) Whenever possible, the 
expenses of administration of this Act shall be paid for in the currency 
of the nation where the expense is incurred. 
(b) There is hereby authorized to be appropriated to the Presi-
dent for the fiscal year 1955 not to exceed $34,700,000 for all neces-
sary administrative expenses incident to carrying out the provisions 
of this Act other than chapter 1 of title I, including expenses for 
compensation, allowances and travel of personnel, including Foreign 
Service personnel whose services are utilized primarily for the pur-
poses of this Act, and, without regard to the provisions of any other 
law, for printing and binding, and for expenditures outside the con-
tinental limits of the United States for the procurement of supplies 
and services and for other administrative purposes (other than com-
pensation of personnel) without regard to such laws and regulations 
governing the obligation and expenditure of Government funds as 
may be necessary to accomplish the purposes of this Act. 
SEC. 412. CHINESE AND KOREAN STUDENTS.—Funds heretofore allo-
cated to the Secretary of State pursuant to the last proviso of section 
statt ?76: ^°^' ^^ ^^^ ^* *^^ ^^^^^ ^^^^ ^^^ ^^^ °* ^^^^ (^^ ^- ^- ^•.^^^'^^ ^^^^^ continue 
to be available until expended, under such regulations as the Secretary 
of State may prescribe, using private agencies to the maximum extent 
practicable, for necessary expenses of tuition, subsistence, transpor-
tation, and emergency medical care for selected citizens of China and 
of Korea for studying or teaching in accredited colleges, universities, 
or other educational institutions in the United States approved by the 
Secretary of State for the purpose, or for research and related 
academic and technical activities in the United States, and such 
selected citizens of China who have been admitted for the purpose of 
study in the United States shall be granted permission to accept 
employment upon application filed with the Commissioner of Immi-
gration and Naturalization pursuant to regulations promulgated 
by the Attorney General. 
SEC. 
413. ENCOURAGEMENT OF FREE 
ENTERPRISE AND PRIVATE 
PARTICIPATION.—(a)The Congress recognizes the vital role of free 
enterprise in achieving rising levels of production and standards of 
living essential to the economic progress and defensive strength of the 
free world. Accordingly, it is declared to be the policy of the United 
States to encourage the efforts of other free nations to increase the 
flow of international trade, to foster private initiative and competition, 
to discourage monopolistic practices, to improve the technical efficiency 
of their industry, agriculture and commerce, and to strengthen free 
labor unions; and to encourage the contribution of United States 
enterprise toward the economic strength of other free nations, through 
private trade and investment abroad, private participation in the 
programs carried out under this Act (including the use of private 
trade channels to the maximum extent practicable in carrying out such 
programs), and exchange of ideas and technical information on the 
matters covered by this section. 
(b) In order to encourage and facilitate participation by private 
enterprise to the maximum extent practicable in achieving any of the 
purposes of this Act, the President— 
68 S T A T . ] 
P U B U C LAW 665-AUG. 26, 1954 
847 
(1) shall make arrangements to find and draw the attention of 
private enterprise to opportunities for investment and develop-
ment in other free nations; 
(2) shall accelerate a program of negotiating treaties for com-
merce and trade, including tax treaties, which shall include 
provisions to encourage and facilitate the flow of private invest-
ment to nations participating in programs under this Act; 
(3) shall, consistent with the security and best interests of the 
United States, seek compliance by other countries or a dependent 
area of any country with all treaties for commerce and trade 
and taxes and shall take all reasonable measures under this Act 
or other authority to secure compliance therewith and to assist 
United States citizens in obtaining just compensation for losses 
sustained by them or payments exacted from them as a result 
of measures taken or imposed by any country or dependent area 
thereof in violation of any such treaty; and 
(4) may make, until June 30,1957, under rules and regulations 
prescribed by him, guaranties to any person of investments in 
connection with projects, including expansion, modernization, or 
development of existing enterprises, m any nation with which 
the United States has agreed to institute the guaranty program: 
Provided^ That— 
(A) such projects shall be approved by the President as 
furthering any of the purposes of this Act, and by the nation 
concerned; 
(B) the guaranty to any person shall be limited to assuring 
any or all of the following: 
(i) the transfer into United States dollars of other 
currencies, or credits in such currencies, received by such 
person as earnings or profits from the approved project, 
as repayment or return of the investment therein, in 
whole or in part, or as compensation for the sale or dis-
position of all or any part thereof; 
(ii) the compensation in United States dollars for loss 
of all or any part of the investment in the approved 
project which shall be found by the President to have 
been lost to such person by reason of expropriation or 
confiscation by action of the government of a foreign 
nation; 
(C) when any payment is made to any person pursuant 
to a guaranty as hereinbefore described, the currency, credits, 
assets, or investment on account of which such payment is 
made shall become the property of the United States 
Government, and the United States Government shall be 
subrogated to any right, title, claim or cause of action existing 
in connection therewith; 
(D) the guaranty to any person shall not exceed the amount 
of dollars invested in the project by such person with the 
approval of the President plus actual earnings or profits 
on said project to the extent provided by such guaranty, and 
shall be limited to a term not exceeding twenty years from 
the date of issuance; 
(E) a fee shall be charged in an amount not exceeding 
1 per centum per annum of the amount of each guaranty 
under clause (i) of subparagraph (B), and not exceeding 
4 per centum per annum of the amount of each guaranty 
under clause (ii) of such subparagraph, and all fees collected 
hereunder shall be available for expenditure in discharge of 
liabilities under guaranties made under this section until 
such time as all such liabilities have been discharged or have 
848 
PUBLIC LAW 665-AUG. 26, 1954 
[68 S T A T . 
expired, or until all such fees have been expended in 
accordance with the provisions of this section; 
(F) the President is authorized to issue guaranties up 
to a total of $200,000,000: Provided, That any funds allocated 
to a guaranty and remaining after all liability of the United 
States assumed in connection therewith has been released, 
discharged, or otherwise terminated, shall be available for 
allocation to other guaranties, the foregoing limitation 
notwithstanding. Any payments made to discharge liabilities 
under guaranties issued under this subsection shall be paid 
out of fees collected under subparagraph (E) as long as such 
fees are available, and thereafter ^ a l l be paid out of funds 
realized from the sale of notes which have been issued under 
authority of paragraph 111 (c) (2) of the Economic Coopera-
22 use ^509 (c) 
tion Act of 1948, as amended, when necessary to discharge 
(2)« 
liabilities under any such guaranty; 
(G) the guaranty program authorized by this paragraph 
shall be used to the maximum practicable extent and shall be 
administered under broad criteria so as to facilitate and 
increase the participation of private enterprise in achieving 
any of the purposes of this Act; 
(H) as used in this paragraph— 
(i) the term "person" means a citizen of the United 
States or any corporation, partnership, or other associa-
tion created under the law of the United States or of any 
State or Territory and substantially beneficially owned 
by citizens of the United States, and 
(ii) the term "investment" includes any contribution 
of capital goods, materials, equipment, services, patents, 
processes, or techniques by any person in the form of 
of (1) a loan or loans to an approved project, (2) the 
purchase of a share of ownership in any such project, 
(3) participation in royalties, earnings, or profits of any 
such project, and (4) the furnishing of capital goods 
items and related services pursuant to a contract pro-
viding for payment in whole or in part after the end 
of the fiscal year in which the guaranty of such invest-
ment is made. 
SEC. 414. MUNITIONS CONTROL,—(a) The President is authorized 
to control, in furtherance of world peace and the security and foreign 
policy of the United States, the export and import of arms, ammu-
nition, and implements of war, including technical data relating 
thereto, other than by a United States Government agency. 
The Presi-
dent is authorized to designate those articles which shall be considered 
as arms, ammunition, and implements of war, including technical data 
relating thereto, for the purposes of this section. 
(b) As prescribed in regulations issued under this section, every 
person who engages in the business of manufacturing, exporting, or 
importing any arms, ammunition, or implements of war, including 
technical data relating thereto, designated by the President under 
subsection (a) shall register with the United States Government 
agency charged with the administration of this section, and, in addi-
tion, shall pay a registration fee which shall be prescribed by such 
regulations. 
(c) Any person who willfully violates any provision of this sec-
tion or any rule or regulation issued under this section, or who will-
fully, in a registration or license application, makes any untrue state-
ment of a material fact or omits to state a material fact required to 
be stated therein or necessary to make the statements therein not mis-
68 S T A T . ] 
PUBLIC LAW 665-AUG. 26, 1954 
849 
leading, shall upon conviction be fined not more than $25,000 or 
imprisoned not more than two years, or both. 
SEC, 415. ASSISTANCE TO INTERNATIONAL ORGANIZATION.—^Whenever 
it will assist in achieving purposes declared in this Act, the President 
is authorized to use funds available under sections 131 and 403 in order 
to furnish assistance, including by transfer of funds, directly to the 
North Atlantic Treaty Organization, for a strategic stockpile of food-
stuffs and other supplies, or for other purposes. 
SEC. 416. FACILITATION AND ENCOURAGEMENT OF TRAVEL.—The 
President, through such officer or commission as he may designate, 
shall facilitate and encourage, without cost to the United States except 
for administrative expenses, the promotion and development of travel 
by citizens of the United States to and within countries receiving 
assistance under this Act and travel by citizens of such countries to 
the United States. 
SEC. 417. IRISH COUNTERPART.—Pursuant to section 115 (b) (6) of 
the Economic Cooperation Act of 1948, as amended, the disposition 
" ^u^^c^isurb) 
within Ireland of the unencumbered balance, in the amount of approxi- (6). 
mately 6,000,000 Irish pounds, of the special account of Irish funds 
established under article IV of the Economic Cooperation Agreement 
between the United States of America and Ireland, dated June 28, 
^2 stat. 2910. 
1948, for the purposes of— 
(1) scholarship exchange between the United States and 
Ireland; 
(2) other programs and projects (including the establishment 
of an Agricultural Institute) to improve and develop the agricul-
tural production and marketing potential of Ireland and to 
increase the production and efficiency of Irish industry; and 
(3) development programs and projects in aid of the fore-
going objectives, 
is hereby approved, as provided in the agreement between the Govern-
ment of the United States of America and the Government of Ireland, 
dated June 17,1954. 
TITLE V—MISCELLANEOUS PROVISIONS 
CHAPTER 1. GENERAL PROVISIONS 
SEC. 501. TRANSFERABILITT OF FUNDS.—^Whenever the President 
determines it to be necessary for the purposes of this Act, not to exceed 
10 per centum of the funds made available pursuant to any provision 
of this Act may be transferred to and consolidated with the funds 
made available pursuant to any other provision of this Act, and may 
be used for any of the purposes for which such funds may be used, 
except that the total in the provision for the benefit of which the 
transfer is made shall not be increased by more than 20 per centum 
of the amount made available for such provision pursuant to this 
Act. Funds transferred under this section to furnish military assist-
ance under chapter 1 of title I may be expended without regard to 
the area limits imposed by section 105 (c). Of any funds transferred 
under this section for the purpose of furnishing assistance under 
section 201, 30 per centum shall be available only for furnishing 
assistance on terms of repayment in accordance with section 505. Not 
less than 50 per centum of any assistance furnished under paragraph 
(1), (2), or (3) of section 201 (a) with funds transferred under this 
section shall be furnished on terms of repayment in accordance with 
section 505. 
SEC. 502. USE OF FOREIGN CURRENCT.—(a) Notwithstanding section 
|* st|rt. 662. 
1415 of the Supplemental Appropriation Act, 1953, or any ouier pro-
39777 O—55—pt. 1 
56 
850 
PUBLIC LAW 665-AUG. 26, 1954 
[68 STAT. 
vision of law, proceeds of sales made under section 550 of the Mutual 
22 use i^67Sp. 
Security Act of 1951, as amended, shall remain available and shall be 
used for any of the purposes of this Act, giving particular regard to 
the following purposes— 
(1) for providing military assistance to nations or mutual 
defense organizations eligible to receive assistance under this Act; 
(2) for purchase of goods or services in friendly nations; 
(3) for loans, under applicable provisions of this Act, to increase 
production of goods or services, including strategic materials, 
needed in any nation with which an agreement was negotiated, or 
in other friendly nations, with the authority to use currencies 
received in repayment for the purposes stated in this section or 
for deposit to the general account of the Treasury of the United 
States; 
(4) for developing new markets on a mutually beneficial basis; 
(5) for grants-in-aid to increase production for domestic needs 
in friendly countries; and 
(6) for purchasing materials for United States stockpiles, 
(b) Notwithstanding section 1415 of the Supplemental Appropria-
31 use 7
2
*
4
^
.
* 
ti<^^ ^^t? 1953, or any other provision of law, local currencies owned 
by the United States shall be made available to appropriate com-
mittees of the Congress engaged in carrying out their duties under 
2^«c*i90d.* 
Section 136 of the Legislative Keorganization Act of 1946, as amended, 
Report to Con- for their local currcucy expeuses: Provided, That a.ny such, committee 
mittee!*"*^ 
*""' of the Cougress which uses local currency shall make a full report 
thereof to the Committee on House Administration of the House of 
Representatives (if the committee using such currency is a committee 
of the House of Representatives) or to the Committee on Rules and 
Administration of the Senate (if the committee using such currency is 
a committee of the Senate), showing the total amount of such cur-
rency so used in each country and the purposes for which it was 
expended. 
SEC. 503. TERMINATION OF ASSISTANCE.—(a) If the President deter-
mines that the furnishing of assistance to any nation under any 
provision of this Act— 
(1) is no longer consistent with the national interest or security 
or the foreign policy of the United States; or 
(2) would no longer contribute effectively to the purposes for 
which such assistance is furnished; or 
(3) is no longer consistent with the obligations and responsi-
bilities of the United States under the Charter of the United 
Nations, 
he shall terminate all or part of any assistance furnished pursuant 
to this Act. If the President determines that any nation which is 
receiving assistance under chapter 1 of title I of this Act is not making 
its full contribution to its own defense or to the defense of the area of 
which it is a part, he shall terminate all or part of such assistance. 
Assistance to any nation under any provision of this Act may, unless 
sooner terminated by the President, be terminated by concurrent reso-
lution. 
Funds made available under this Act shall remain available 
for twelve months from the date of termination under this subsection 
for the necessary expenses of liquidating assistance programs. 
(b) (1) After June 30, 1955, none of the authority conferred 
by this Act may be exercised for the purpose of carrying out any 
function authorized by title I I ; except that during the twelve months 
following such date (i) funds which have been obligated on or before 
that date shall remain available for expenditure, (ii) equipment, 
materials, commodities, and services with respect to which funds have 
been obligated on or before such date for procurement for, shipment 
68 S T A T . ] 
PUBLIC LAW 665-AUG. 26, 1954 
851 
to, or delivery in a recipient country may be transferred to such 
country, and (iii) funds appropriated under authority of this Act 
may be obligated (A) for the necessary expenses of procurement, 
shipment, delivery, and other activities essential to such transfer and 
(B) for the necessary expenses of liquidating operations incident to 
such functions. 
(2) At such time as the President shall find appropriate, the powers, 
duties, and authority conferred by this Act with respect to such func-
tion may be transferred for the purpose of liquidation to such other 
United States Government agencies as the President shall specify, and 
the relevant funds, records, property, and personnel may be trans-
ferred to the agencies to which the related functions are transferred. 
(c) Unless sooner abolished under section 525, the Foreign Opera- tio^T^iumSSIt'ra-
tions Administration shall cease to exist at the close of June 30, 1955. tion. 
SEC. 504. SMALL BUSINESS.—(a) Insofar as practicable and to the 
maximum extent consistent with the accomplishment of the purposes 
of this Act, the President shall assist American small business to 
participate equitably in the furnishing of commodities and services 
financed with funds authorized under titles II, III, and IV, and 
chapters 2 and 3 of title I, of this Act— 
(1) by causing to be made available to suppliers in the United 
States and particularly to small independent enterprises, informa-
tion, as far in advance as possible, with respect to purchases pro-
posed to be financed with such funds, 
(2) by causing to be made available to prospective purchasers 
in the nations receiving assistance under this Act information as 
to commodities and services produced by small independent enter-
prises in the United States, and 
(3) by providing for additional services to give small business 
better opportunities to participate in the furnishing of com-
modities and services financed with such funds. 
(b) There shall be an Office of Small Business, headed by a Special B^"nels.°^ ^""^" 
Assistant for Small Business, in such United States Government agency 
as the President may direct, to assist in carrying out the provisions of 
subsection (a) of this section. 
(c) The Secretary of Defense shall assure that there is made avail-
able to suppliers in the United States, and particularly to small inde-
pendent enterprises, information with respect to purchases made bv 
the Department of Defense pursuant to chapter 1 of title I, such 
information to be furnished as far in advance as possible. 
SEC. 505. LOAN ASSISTANCE.—(a) Assistance under this Act may 
be furnished on a grant basis or on such terms, including cash, credit, 
or other terms of repayment (including repayment in foreign cur-
rencies or by transfer to the United States of materials required for 
- 
- . 
stockpiling or other purposes) as may be determined to be best suited 
to the achievement of the purposes of this Act. 
(b) Of the funds made available pursuant to this Act and foreign 
currencies accruing to the United States under section 402, the equiva-
lent of not less than $200,000,000 shall be available only for the fur-
nishing of assistance on terms of repayment. 
Funds for the purpose 
of furnishing assistance on terms of repayment shall be allocated to 
the Export-Import Bank of Washington, which shall, notwithstanding 
the provisions of the Export-Import Bank Act of 1945 (59 Stat. 
526), as amended, make and administer the credit on such terms. 
12use 63Snote. 
Credits made by the Export-Import Bank of Washington with funds 
so allocated to it shall not be considered in determining whether 
the Bank has outstanding at any one time loans and guaranties to 
the extent of the limitation imposed by section 7 of the Export-
Import Bank Act of 1945 (59 Stat. 529), as amended. 
Amounts 
^"'«'P-^'s. 
852 
PUBLIC LAW 665-AUG. 26, 1954 
[68 S T A T . 
received in repayment of principal and interest on any loan made 
under this section shall be held by the Treasury to be used for such 
purposes, including further loans, as may be authorized from time to 
time by Congress. 
Amounts received in repayment of principal 
and interest on any credits made under paragraph 111 (c) (2) of 
22 use \5o'9(c) ^h® Economic Cooperation Act of 1948, as amended, shall be 
(2). 
deposited into miscellaneous receipts of the Treasury, except that, to 
the extent required for such purpose, amounts received in repayment 
of principal and interest on any credits made out of funds realized 
from the sale of notes heretofore authorized to be issued for the pur-
pose of financing assistance on a credit basis under paragraph 111 
(c) (2) of the Economic Cooperation Act of 1948, as amended, shall 
be deposited into the Treasury for the purpose of the retirement 
of such notes. 
SEC. 506. PATENTS AND TECHNICAL INFORMATION.—(a) As used in 
this section— 
(1) the term "invention" means an invention or discovery 
covered by a patent issued by the United States; and 
(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) T\^enever, in connection with the furnishing of any assistance 
in furtherance of the purposes 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 
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 United States Government agency, which 
has furnished any assistance in furtherance of the purposes 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 
66 Stat. 757. 
of the United States Code shall apply to inventions and information 
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 
compensation 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. 
SEC. 507. AVAILABILITY OF FUNDS.—Except as otherwise provided 
in sections 104 (pertaining to infrastructure), 405 (pertaining to 
movement of migrants), 408 (a) (pertaining to North Atlantic Treaty 
Organization), and 412 (pertaining to Chinese and Korean students), 
68 S T A T . ] 
PUBLIC LAW 6 6 5 - A U G . 26, 1954 
853 
funds shall be available to carry out the provisions of this Act (other 
than sections 414 and 416) as authorized and appropriated to the 
President each fiscal year. 
SEO. 508. LIMITATION ON FUNDS FOR PROPAGANDA.—^None of 
the 
funds herein authorized to be appropriated nor any counterpart funds 
shall be used to pay for personal services or printing, or for other 
expenses of the dissemination within the United States of general 
propaganda in support of the mutual security program, or to pay the 
travel or other expenses outside the United States of any citizen or 
group of citizens of the United States for the purpose of publicizing 
such program within the United States. 
SEC. 509. SHIPPING ON UNITED STATES VESSELS.—Such steps as 
may be necessary shall be taken to assure, as far as practicable, that 
at least 50 per centum of the gross tonnage of commodities, materials 
and equipment procured out of funds made available under sections 
103, 123, 131,132 (a), 201, 304, and 403 of this. Act and transported to 
or from the United States on ocean vessels, computed separately for 
dry bulk carriers, dry cargo liner and tanker services and computed 
separately for section 103, and for sections 123, 131, 132 (a), 201, 304, 
and 403 (taken together) is so transported on United States flag com-
mercial vessels to the extent such vessels are available at market rates 
for United States flag commercial vessels provided such rates are 
fair and reasonable; and, in the administration of this provision, steps 
shall be taken, insofar as practicable and consistent with the purposes 
of this Act, to secure a fair and reasonable participation by United 
States flag commercial vessels in cargoes by geographic area. 
SEC. 510. PURCHASE OF COMMODITIES.—No funds made available 
under title I I or chapter 3 of title I of this Act shall be used for the 
purchase in bulk of any commodities at prices higher than the market 
price prevailing in the United States at the time of the purchase 
adjusted for differences in the cost of transportation to destination, 
quality, and terms of payment. A bulk purchase within the meaning 
of this section does not include the purchase of raw cotton in bales. 
Funds made available under title I I or chapter 3 of title I of this 
Act may be used for the procurement of commodities outside the 
United States unless the President determines that such procurement 
will result in adverse effects ui)on the economy of the United States, 
with special reference to any areas of labor surplus, or upon the 
industrial mobilization base, which outweigh the economic advan-
tages to the United States of less costly procurement abroad. In pro-
viding for the procurement of any surplus agricultural commodity 
for transfer by grant under this Act to any recipient nation in accord-
ance with the requirements of such nation, the President shall, insofar 
as practicable and where in furtherance of the purposes of this Act, 
authorize the procurement of such surplus agricultural commodity 
only within the United States except to the extent that any such 
surplus agricultural commodity is not available in the United States 
in sufficient quantities to supply the requirements of the nations receiv-
ing assistance under this Act. 
SEC. 511. KETENTION AND KETURN OF EQUIPMENT.—(a) No equipment 
or materials may be transferred under title I out of military stocks 
if the Secretary of Defense, after consultation with the Joint Chiefs 
of Staff, determines that such transfer would be detrimental to the 
national security of the United States, or that such equipment or 
materials are needed by the reserve components of the Armed Forces 
to meet their training requirements. 
(b) Any equipment, materials, or commodities procured to carry 
out this Act shall be retained by, or, upon reimbursement, transferred 
to and for the use of, such United States Government agency as the 
854 
PUBLIC LAW 665-AUG. 26, 1954 
[68 S T A T . 
President may determine in lieu of being disposed of to a foreign 
nation or international organization whenever in the judgment of the 
President the best interests of the United States will be served thereby, 
or whenever such retention is called for by concurrent resolution! 
Any commodities so retained may be disposed of without regard to 
provisions of law relating to the disposal of Government-owned 
property, when necessary to prevent spoilage or wastage of such 
commodities or to conserve the usefulness thereof. 
Funds realized 
from any such disposal or transfer shall revert to the respective 
appropriation or appropriations out of which funds were expended 
for the procurement of such equipment, materials, or commodities 
or to appropriations currently available for such procurement. 
(c) The President shall make appropriate arrangements with 
each nation receiving equipment or materials under chapter 1 of 
title I (other than equipment or materials sold under the provisions 
of section 106) 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 such equipment or 
materials which are no longer required for the purposes for which 
originally made available. 
SEC. 512. PENAL PROVISION.—Whoever offers or gives to anyone 
who is or in the preceding two years has been an employee or officer 
of the United States any commission, payment, or gift, in connection 
with the procurement of equipment, materials, commodities, or services 
under this Act in connection with which procurement said officer, 
employee, former officer or former employee is or was employed or 
performed duty or took any action during such employment, and 
whoever, being or having been an employee or officer of the United 
States in the preceding two years, solicits, accepts, or offers to accept 
any commission, payment, or gift in connection with the procurement 
of equipment, materials, commodities, or services under this Act in 
connection with which procurement said officer, employee, former 
officer or former employee is or was employed or performed duty or 
took any action during such employment, shall upon conviction thereof 
be subject to a fine of not to exceed $10,000 or imprisonment for not 
to exceed three years, or both: Provided^ That this section shall not 
apply to persons appointed pursuant to sections 308 or 530 (a) of 
this Act. 
SEC. 513. NOTICE TO LEGISLATIVE COMMITTEES.—^When any transfer 
is made under section 105 (d) or section 501, or any other action is 
taken under this Act which will result in furnishing assistance of a 
kind, for a purpose, or to an area, substantially different from that 
included in the presentation to the Congress during its consideration 
of this Act, or which will result in expenditures greater by 50 per 
centum or more than the proposed expenditures included in such pres-
entation for the program concerned, the President or such officer as he 
may designate shall promptly notify the Committee on Foreign Rela-
tions of the Senate, the Committee on Foreign Affairs of the House of 
Representatives and, when military assistance is involved, the Com-
mittees on Armed Services of the Senate and House of Representatives, 
stating the justification for such change. Notice shall also be given 
to the Committee on Foreign Relations of the Senate and the Com-
mittee on Foreign Affairs of the House of Representatives of any 
determination under the first sentence of section 401 (except with 
respect to unvouchered funds), and copies of any certification as to 
loyalty under section 531 shall be filed with such committees. 
SEC. 514. INTERNATIONAL EDUCATIONAL EXCHANGE ACTIVITIES.— 
Foreign currencies or credits owed to or owned by the United States, 
where arising from this Act or otherwise, shall, upon a request from 
60 Stat. 754. 
5 0 u s e 
app. 
68 S T A T . ] 
PUBLIC LAW 66fr-AUG. 26, 1954 
855 
the Secretary of State certifying that such funds are required for the 
purpose of international educational exchange activities under pro-
grams authorized by section 32 (b) (2) of the Surplus Property Act 
of 1944, as amended, be reserved by the Secretary of the Treasury for 
sale to the Department of State for such activities on the basis of the i64i. 
dollar value at the time of the reservation. 
CHAPTER 2. ORGANIZATION AND ADMINISTRATION 
SEC. 521. DELEGATION OF AUTHORITY BY THE PRESIDENT.—(a) Except 
as provided in subsection (b), the President may exercise any power 
or authority conferred on him by this Act through such agency or 
officer of the United States as he shall direct, and the head of such 
agency or such officer may from time to time promulgate such rules 
and regulations as may be necessary and proper to carry out functions 
under this Act and may delegate authority to perform any of such 
functions to his subordinates acting under his direction. 
(b) After June 30, 1955, the President shall exercise the powers 
conferred upon him under title I I I of this Act through the Secretary 
of State. 
SEC. 522. ALLOCATION AND REIMBURSEMENT AMONG AGENCIES.— 
(a) The President may allocate or transfer to any United States 
Government agency any part of any funds available for carrying out 
the purposes of this Act, including any advance to the United States 
by any nation or international organization for the procurement of 
equipment or materials or services. Such funds shall be available 
for obligation and expenditure for the purposes for which authorized, 
in accordance with authority granted in this Act or under authority 
governing the activities of the Government agencies to which such 
funds are allocated or transferred. 
Funds allocated to the Depart-
ment of Defense shall be governed as to reimbursement by the pro-
cedures of subsection (c) of this section. 
(b) Any officer of the United States performing functions under 
this Act may utilize the services and facilities of, or procure com-
modities from, any United States Government agency as the Presi-
dent shall direct, or with the consent of the head of such agency, and 
funds allocated pursuant to this subsection to any such agency may be 
established in separate appropriation accounts on the books of the 
Treasury. 
(c) Reimbursement shall be made to any United States Govern-
ment agency, from funds available to carry out chapter 1 of title I 
of this Act, for any assistance furnished under that chapter from, 
by, or through such agency. 
Such reimbursement shall be in an 
amount equal to the value (as defined in section 545) of the equipment 
and materials, services (other than salaries of members of the Armed 
Forces of the United States), or other assistance furnished, plus 
expenses arising from or incident to operations under that chapter. 
The amount of any such reimbursement shall be credited as reim-
bursable receipts to current applicable appropriations, funds, or 
accounts of such agency and shall be available for, and under the 
authority applicable to, the purposes for which such appropriations, 
funds, or accounts are authorized to be used, including the procure-
ment of equipment and materials or services, required by such agency, 
in the same general category as those furnished by it or authorized 
to be procured by it and expenses arising from and incident to such 
procurement. 
(d) In the case of any commodity, service, or facility procured from 
any United States Government agency under any provision of this 
Act other than chapter 1 of title I, reimbursement or payment shall be 
made to such agency from funds available to carry out such provision. 
856 
PUBLIC LAW 665-AUG. 26, 1954 
[68 S T A T . 
Such reimbursement or payment shall be at replacement cost, or, if 
required by law, at actual cost, or at any other price authorized by law 
and agreed to by the owning or disposal agency. The amount of any 
such reimbursement or payment shall be credited to current applicable 
appropriations, funds, or accounts from which there may be procured 
replacements of similar commodities, services, or facilities, except that 
where such appropriations, funds, or accounts are not reimbursable 
except by reason of this subsection, and when the owning agency 
determines that such replacement is not necessary, any funds received 
in payment therefor shall be covered into the Treasury as miscel-
laneous receipts. 
(e) In furnishing assistance under this Act and in making surplus 
agricultural commodities available under section 402 accounts may 
be established on the books of any United States Government agency 
or, on terms and conditions approved by the Secretary of the Treas-
ury, in banking institutions in the United States, against which (i) 
letters of commitment may be issued which shall constitute obligations 
of the United States, and moneys due or to become due under such 
letters of commitment shall be assignable under the Assignment of 
Claims Act of 1940, as amended, and (ii) withdrawals may be made 
by recipient nations or agencies, organizations or persons upon pre-
sentation of contracts, invoices, or other appropriate documentation. 
Expenditure of funds which have been made available through 
accounts so established shall be accounted for on standard documenta-
tion required for expenditure of Government funds: Provided^ That 
such expenditures for commodities or services procured outside the 
continental limits of the United States may be accounted for exclu-
sively on such certification as may be prescribed in regulations 
approved by the Comptroller General of the United States. 
SEC. 523. COORDINATION W I T H FOREIGN POLICY.—(a) Nothing con-
tained in this Act shall be construed to infringe upon the powers or 
functions of the Secretary of State. 
(b) The President shall prescribe appropriate procedures to assure 
coordination among representatives of the United States Government 
in each country, under the leadership of the Chief of the United States 
Diplomatic Mission. 
SEC. 524. T H E SECRETARY OF DEFENSE.—(a) In the case of aid under 
chapter 1 of title I of this Act, the Secretary of Defense shall have 
primary responsibility for— 
(1) the determination of military end-item requirements; 
(2) the procurement of military equipment ^n a manner which 
permits its integration with service programs; 
(3) the supervision of end-items used by the recipient countries; 
(4) the supervision of the training of foreign military per-
sonnel; 
(5) the movement and delivery of military end-items; and 
(6) within the Department of Defense, the performance of 
any other functions with respect to the furnishing of military 
assistance. 
(b) The establishment of priorities in the procurement, delivery, 
and allocation of military equipment shall be determined by the 
Secretary of Defense. The determination of the value of the program 
for any country under chapter 1 of title I shall be made by the 
President. 
SEC. 525. FOREIGN OPERATIONS ADMINISTRATION.—Except as modi-
fied pursuant to this section or section 521, the Director of the Foreign 
Operations Administration (referred to in this chapter as the "Direc-
tor") shall continue to perform the functions vested in him on the 
effective date of this Act, except insofar as such functions relate to 
68 S T A T . ] 
PUBLIC LAW 665-AUG. 26, 1954 
857 
continuous supervision and general direction of programs of military 
assistance. The President may transfer to any agency or officer of 
the United States, and may modify or abolish, any function, office, or 
entity of the Foreign Operations Administration or any officer or 
employee thereof, and may transfer such personnel, property, records, 
and funds as may be necessary incident thereto. 
SEC. 526. MISSIONS AND STAFFS ABROAD.—The President may main-
tain special missions or staffs abroad in such nations and for such 
periods of time as may be necessary to carry out this Act. 
Each such 
special mission or staff shall be under the direction of a chief. The 
chief and his deputy shall be appointed by the President and may, 
notwithstanding any other law, be removed by the President at his 
discretion. 
The chief shall be entitled to receive (1) in cases approved 
by the President, the same compensation and allowances as a chief of 
mission, class 3, or a chief of mission, class 4, within the meaning of 
the Foreign Service Act of 1946 (22 U. S. C. 801), or (2) compensation 
^° ^tat. 999. 
and allowances in accordance with section 527 (c) of this Act, as the 
President shall determine to be appropriate. 
SEC. 527. EMPLOYMENT OF PERSONNEL.—(a) Any United States Gov-
ernment agency performing functions under this Act is authorized 
to employ such personnel as the President deems necessary to carry out 
the provisions and purposes of this Act. 
(b) Of the personnel employed in the United States on programs 
authorized by this Act, not to exceed sixty may be compensated with-
out regard to the provisions of the Classification Act of 1949, as 
fulcfiorinote. 
amended, of whom not to exceed thirty-five may be compensated at 
rates higher than those provided for grade 15 of the general schedule 
established 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 
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 
those authorized by law to be filled by Presidential appointment, and 
in addition to the number authorized by section 505 of the Classifica-
tion Act of 1949, as amended. 
5 use 110s. 
(c) For the purpose of performing functions under this Act outside 
the continental limits of the United States, the Director may— 
(1) employ or assign persons, or authorize the employment or 
assignment of officers or employees of other United States Gov-
ernment agencies, who shall receive compensation at any of the 
rates provided for the Foreign Service Reserve and Staff by the 
Foreign Service Act of 1946, as amended (22 U. S. C. 801), 
eo stat. 999. 
together with allowances and benefits established thereunder 
including, in all cases, post differentials prescribed under section 
443 of the Foreign Service Act; and persons so employed or 
^^ ^^^ *
*
®
* 
assigned shall be entitled to the same benefits as are provided by 
section 528 of the Foreign Service Act for persons appointed to 
22 use 928. 
the Foreign Service Reserve and, except for policy-making officials, 
the provisions of section 1005 of the Foreign Service Act shall 
22 use 807. 
apply in the case of such persons; and 
(2) utilize such authority, including authority to appoint and 
assign personnel for the duration of operations under this Act, 
contained in the Foreign Service Act of 1946, as amended (22 
U. S. C. 801), as the President deems necessary to carry out 
functions under this Act. Such provisions of the Foreign Service 
Act as the President deems appropriate shall apply to personnel 
appointed or assigned under this paragraph, including, in all 
cases, the provisions of sections 443 and 528 of that Act. 
(d) For the purpose of performing functions under this Act outside 
the continental limits of the United States, the Secretary of State may, 
858 
PUBLIC LAW 665-AUG. 26, 1954 
[68 STAT . 
at the request of the Director, appoint for the duration of operations 
under this Act alien clerks and employees in accordance with applicable 
provisions of the Foreign Service Act of 1946, as amended (22 U. S. C. 
60 Stat. 999. 
8 0 1 ) . 
SEC. 528. DETAIL OF PERSONNEL TO FOREIGN GOVERNMENTS.—(a) 
Whenever the President determines it to be consistent with and in 
furtherance of the purposes of this Act, the head of any United States 
Government agency is authorized to detail or assign any officer or 
employee of his agency to any office or position to which no compensa-
tion 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. 
(b) 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-
tion, allowances, and benefits from funds available to that agency or 
made available to that agency out of funds authorized under this Act. 
SEC. 529. DETAIL OF PERSONNEL TO INTERNATIONAL ORGANIZATIONS.— 
(a) Whenever the President determines it to be consistent with and 
in furtherance of the purposes of this Act, the head of any United 
States Government agency is authorized to detail, assign, or other-
wise make available to any international organization any officer or 
employee of his agency to serve with or as a member of the inter-
national staff of such organization, or to render any technical, scientific 
or professional advice or service to or in cooperation with such 
organization. 
(b) Any such officer or employee, while so assigned or detailed, shall 
be considered, for the purpose of preserving his allowances, privileges, 
rights, seniority and other benefits as such, an officer or employee of 
the Government of the United States and of the Government agency 
from which detailed or assigned, and he shall continue to receive 
•^^ ' 
compensation, allowances, and benefits from funds available to that 
agency or made available to that agency out of funds authorized 
under this Act. He may also receive, under such regulations as the 
President may prescribe, representation allowances similar to those 
allowed under section 901 of the Foreign Service Act of 1946, as 
22 use 1131. 
amended (22 U. S. C. 801). The authorization of such allowances 
and other benefits and the payment thereof out of any appropriations 
available therefor shall be considered as meeting all the requirements 
5 use 70. 
of section 1765 of the Revised Statutes. 
(c) Details or assignments may be made under this section— 
(1) without reimbursement to the United States by the inter-
national organization; 
(2) upon agreement by the international organization to 
reimburse the United States for compensation, travel expenses, 
and allowances, or any part thereof, payable to such officer or 
employee during the period of assignment or detail in accordance 
with subsection (b) of this section; and such reimbursement 
shall be credited to the appropriation, fund, or account utilized 
for paying such compensation, travel expenses, or allowances, or 
to the appropriation, fund, or account currently available for 
such purposes; 
(3) upon an advance of funds, property, or services to the 
United States accepted with the approval of the President for 
specified uses in furtherance of the purposes of this Act; and 
funds so advanced may be established as a separate fund in the 
Treasury of the United States, to be available for the specified 
60 Stat. 810. 
68 S T A T . ] 
PUBLIC LAW 665~AUG. 26, 1954 
S59 
uses, and to be used for reimbursement of appropriations or direct 
expenditure subject to the provisions of this Act, any unexpended 
balance of such account to be returned to the international 
organization; or 
(4) subject to the receipt by the United States of a credit to be 
applied against the payment by the United States of its share of 
the expenses of the international organization to which the officer 
or employee is detailed, such credit to be based upon the compensa-
tion, travel expenses and allowances, or any part thereof, payable 
to such officer or employee during the period of assignment or 
detail in accordance with subsection (b) of this section. 
SEC. 530. EXPERTS AND CONSULTANTS OR ORGANIZATIONS THEREOF.— 
(a) Experts and consultants or organizations thereof, as authorized 
by section 15 of the Act of August 2, 1946 (5 U. S. C. 55a), may be 
employed by any United States Government agency for the perform-
ance of functions under this Act, and individuals so employed may be 
compensated at rates not in excess of $75 per diem, and while away 
from their homes or regular places of business, they may be paid 
actual travel expenses and per diem in lieu of subsistence and other 
expenses at a rate not to exceed $10 while so employed within the conti-
nental limits of the United States and at the applicable rate prescribed 
in the Standardized Government Travel Regulations (Foreign Areas) 
while so employed outside the continental limits of the United States, 
(b) Persons of outstanding experience and ability may be employed 
without compensation by any United States Government agency for 
the performance of functions under this Act in accordance with the 
provisions of section 710 (b) of the Defense Production Act of 1950, 
as amended (50 U. S. C. App. 2160), and regulations issued thereunder. 
^^ ^
*
®
*
' *^** 
SEC. 531. SECURITY CLEARANCE,—No citizen or resident of the United 
States may be employed, or if already employed, may be assigned to 
duties by the Director under this Act for a period to exceed three 
months unless— 
(a) such individual has been investigated as to loyalty and 
security by the Civil Service Commission, or by the Federal 
Bureau of Investigation in the case of specific positions which 
have been certified by the Director as being of a high degree of 
importance or sensitivity or in case the Civil Service Commission 
investigation develops data reflecting that the individual is of 
questionable loyalty, and a report thereon has been made to the 
Director, and until the Director has certified in writing (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 knowingly been a member of any 
organization advocating contrary views; or 
(b) such individual has been investigated by a military intelli-
gence agency and the Secretary of Defense has certified in writ-
ing 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 pro-
grams covered by this Act who has been previously investigated in 
connection with such employment. 
SEC. 532. EXEMPTION OF PERSONNEL FROM CERTAIN FEDERAL LAWS.— 
(a) Service of an individual as a member of the Board established 
pursuant to section 308 of this Act or as an expert or consultant under 
37 use 231 note. 
22 u s e 
1611 
note. 
860 
PUBLIC LAW 665-AUG- 26, 1954 
[68 STAT-
section 530 (a) shall not be considered as service or employment bring-
ing such individual within the provisions of title 18, U. S. C , section 
62 Stat. 697. 
281,283 Or 284, or of section 190 of the Revised Statutes (5 U. S. C. 99), 
or of any other Federal law imposing restrictions, requirements, or 
penalties in relation to the employment of persons, the performance 
of services, or the payment or receipt of compensation in connection 
with any claim, proceeding, or matter involving the United States, 
except insofar as such provisions of law may prohibit any such indi-
vidual from receiving compensation in respect of any particular 
matter in which such individual was directly involved in the perform-
ance of such service; nor shall such service be considered as employ-
ment or holding of office or position bringing such individual within 
the provisions of section 6 of the Act of May 22, 1920, as amended 
56 Stat. 14. 
(5 U. S. C. 715), section 212 of the Act of June 30, 1932, as amended 
47 Stat. 406. 
(5 U. S. C. o9a), or any other Federal law limiting the reemployment 
of retired officers or employees or governing the simultaneous receipt 
of compensation and retired pay or annuities. 
(b) Notwithstanding section 2 of the Act of July 31,1894 (5 U. S. C. 
staf. ^
2
*
4
s
'
. ^°'' ^^ ^^)' "^^'hich prohibits certain retired officers from holding certain office, 
any retired officer of any of the services mentioned in the Career Com-
pensation Act of 1949 may hold any office or appointment under this 
Act or the Mutual Defense Assistance Control Act of 1951, but the 
compensation of any such retired officer shall be subject to the pro-
visions of the Act of June 30, 1932 (5 U. S. C. 59a), which does not 
permit retired pay to be added to the compensation received as a 
civilian officer. 
SEC. 533. WAIVERS OF CERTAIN FEDERAL LAWS.—^Whenever the Presi-
dent determines it to be in furtherance of purposes declared in this 
Act, the functions authorized under this Act may be performed, 
without regard to such provisions of law (other than the Renegotia-
so^ifs c app. tion Act of 1951, as amended) regulating the making, performance, 
1211 note. 
* amendment, or modification of contracts and the expenditure of Gov-
ernment funds as the President may specify. 
SEC. 534. REPORTS.—The President, from time to time while funds 
appropriated for the purpose of this Act continue to be available for 
obligation, shall transmit to the Congress reports covering each six 
months of operations, in furtherance of the purposes of this Act, 
except information the disclosure of which he deems incompatible 
with the security of the United States, 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. Such reports shall include detailed information on the 
implementation of sections 504 and 413 (b) of this Act. 
SEC. 535, COOPERATION W I T H INTERNATIONAL ORGANIZATIONS,—(a) 
The President is authorized to request the cooperation of or the use 
of the services and facilities of the United Nations, its organs and 
specialized agencies, or other international organizations, in carrying 
out the purposes of this Act, and may make payments by advancements 
or reimbursements, for such purposes, out of funds made available for 
the purposes of this Act, as may be necessary therefor, to the extent 
that special compensation is usually required for such services and 
facilities: Provided^ That nothing in this section shall be construed 
to authorize the delegation to any international or foreign organiza-
tion or agency of authority to decide the method of furnishing assist-
ance under this Act to any country or the amount thereof, 
(b) Whenever the President determines it to be in furtherance of 
the purposes of this Act, United States Government agencies, on 
request of international organizations, are authorized to furnish sup-
61 Stat. 103. 
22 u s e 
1401 
68 S T A T . ] 
PUBLIC LAW 6 6 5 - A U G . 26, 1954 
861 
plies, materials, and services, on an advance of funds or reimburse-
ment basis, to such organizations. Such advances or reimbursements 
may be credited to the current applicable appropriation or fund of 
the agency concerned and shall be available for the purposes for which 
such appropriations and funds are authorized to be used. 
SEC. 536. JOINT COMMISSION ON RURAL RECONSTRUCTION IN CHINA.— 
The President is authorized to continue to participate in the Joint 
Commission on Rural Reconstruction in China and to appoint citizens 
of the United States to the Commission. 
CHAPTER 3. REPEAL AND MISCELLANEOUS PROVISIONS 
SEC. 541. EFFECTIVE DATE.—This Act shall take effect on the date 
Effective date. 
of its enactment. 
SEC. 542. STATUTES REPEALED.—(a) There are hereby repealed— 
Repeals. 
(1) an Act to provide for assistance to Greece and Turkey, 
approved May 22, 1947, as amended; 
(2) the joint resolution to provide for relief assistance to the '*°*?-
people of countries devastated by war, approved May 31, 1947, 
2 2 u^s c 1411-
as amended; 
^^eVstat. 934. 
(3) theForeign Aid Act of 1947; 
^J22 use 1,411 
(4) the Foreign Assistance Act of 1948, as amended; including ""el'stat. 137. 
the Economic Cooperation Act of 1948, as amended, the jj^j^g^^Jfj ^^^t^j,^ 
International Children's Emergency Fund Assistance Act of 1409note, is4i 
1948, as amended, the Greek-Turkish Assistance Act of 1948, '^''es'stat. 714. 
and the China Aid Act of 1948, as amended; 
J^l 
" ^ ^ ^ ^ ^ ^ 
(5) the Mutual Defense Assistance Act of 1949, as amended; 
2
^
2 ^us e^^i's 
(6) the Foreign Economic Assistance Act of 1950, as amended; note, 1547 note, 
including the Economic Cooperation Act of 1950, the China Area ^ofe^. "°**' ^ ^ ^ ^ 
Aid Act of 1950, as amended, the United Nations Palestine 
ol^usc'issi 
Refugee Aid Act of 1950, and the Act for International note. 
Development, as amended; 
22 use iVsl.* 
(7) the Far Eastern Economic Assistance Act of 1950, as 
".staf 373.' 
ft 
2 2 U o t - l o 5 1 
amended; 
note. 
(8) the Yugoslav Emergency Relief Assistance Act of 1950; 
2 2 %c'^i'e 51 
(9) the Mutual Security Act of 1951, as amended; 
"°67*stat 152 
(10) the Mutual Security Act of 1952; 
2 2 v%'c 1 e 7 si 
(11^ the Mutual Security Act of 1953; 
"°62'stat. 748. 
(12) section 12 of the joint resolution of Congress approved 
November 4,1939 (54 Stat. 10; 22 U. S. C. 452); 
(13) section 4 of the Act of March 3, 1925 (50 Stat. 887; 
50 U. S. C. 165); and 
(14) section 968 of title 18, United States Code. 
(b) References in other Acts to the Acts listed in subsection (a) 
shall hereafter be considered to be references to the appropriate 
provisions of this Act, 
(c) The repeal of the Acts listed in subsection (a) shall not be 
deemed to affect amendments contained in such Acts to Acts not 
named in subsection (a). 
SEC. 543. SAVING PROVISIONS.— 
(a) Except as may be expressly provided to the contrary in this 
Act, all determinations, authorizations, regulations, orders, contracts, 
agreements, and other actions issued, undertaken or entered into under 
authority of any provision of law repealed by section 542 shall con-
tinue in full force and effect until modified by appropriate authority. 
(b) Where provisions of this Act establish conditions which must 
be complied with before use may be made of authority contained in 
or funds authorized by this Act, compliance with substantially similar 
conditions under Acts named in section 542 shall be deemed to con-
stitute compliance with the conditions established by this Act. 
862 
PUBLIC LAW 665-AUG. 26, 1954 
[68 S T A T . 
62 Stat. 143. 
22 u s e 1508 (a) 
(2). 
62 Stat. 13. 
22 u s e 
1 4 3 1 , 
1434-1440. 
62 Stat. 146. 
22 u s e 
1509(c) 
(2). 
Repeal. 
63 Stat. 685. 
22 u s e 
2 8 1 b , 
281b-1. 
Institute of Inter-
American Affairs. 
61 Stat. 780. 
42 Stat. 20. 
59 Stat. 597. 
(c) No person in the service or employment of the United States 
or otherwise performing functions under an Act repealed by section 
542 or under section 408 shall be required to be reappointed or re-
employed by reason of the entry into force of this Act, except that 
appointments made pursuant to section 110 (a) (2) of the Economic 
Cooperation Act of 1948, as amended, shall be converted to appoint-
ments under section 527 (c) of this Act. 
SEC. 544. AMENDMENTS TO OTHER LAWS.—(a) Title X of the United 
States Information and Educational Exchange Act of 1948, as 
amended (22 U. S. C. 1431), is amended by adding the following 
new section: 
"INFORMATIONAL MEDIA GUARANTIES 
"SEC. 1011. The Director of the United States Information Agency 
may make guaranties, in accordance with the provisions of subsection 
(b) of section 413 of the Mutual Security Act of 1954, of investments 
in enterprises producing or distributing informational media con-
sistent with the national interests of the United States against funds 
heretofore made available by notes issued to the Secretary of the 
Treasury pursuant to section 111 (c) (2) of the Economic Coopera-
tion Act of 1948, as amended, for purposes of guaranties of invest-
ments: Provided, 
however, That the amount of such guaranties in 
any fiscal year shall be determined by the President but shall not 
exceed $10,000,000." 
(b) Section 1 of Public Law 283, Eighty-first Congress, is repealed. 
The Institute of Inter-American Affairs, created pursuant to Public 
Law 369, Eightieth Congress (22 U. S. C. 281), shall have succession 
until June 30,1960, and may make contracts for periods not to exceed 
five years: Provided, That any contract extending beyond June 30, 
1960, shall be made subject to termination by the said Institute upon 
notice: And provided further. That the said Institute shall, on and 
after July 1, 1954, be subject to the applicable provisions of the 
Budget and Accounting Act, 1921, as amended (31U. S. C. 1), in lieu of 
the provisions of the Government Corporation Control Act, as 
amended (31 U. S. C. 841). 
SEC. 545. DEFINITIONS.—For the purposes of this Act— 
(a) The term "commodity" includes any commodity, material, 
article, supply, or goods. 
(b) The term "surplus agricultural commodit;^" means any agri-
cultural commodity or product thereof, class, kind, type, or other 
specification thereof, produced in the United States either publicly 
or privately owned, which is in excess of domestic requirements, ade-
quate carryover, and anticipated exports for dollars, as determined by 
the Secretary of Agriculture. 
(c) The terms "equipment" and "materials" shall mean any arms, 
ammunition, or implements of war, or any other type of material, 
article, raw material, facility, tool, machine, supply or item that 
would further the purpose of chapter 1 of title I, or any component 
or part thereof, used or required for use in connection therewith, or 
required in or for the manufacture, production, processing, storage, 
transportation, repair, or rehabilitation of any equipment or materials, 
but shall not include merchant vessels. 
(d) The term "mobilization reserve", as used with respect to any 
equipment or materials, means the quantity of such equipment or 
materials determined by the Secretary of Defense under regulations 
prescribed by the President to be required to support mobilization of 
the Armed Forces of the United States in the event of war or national 
emergency until such time as adequate additional quantities of such 
equipment or materials can be procured. 
68 STAT-] 
PUBLIC LAW 665-AUG. 26, 1954 
863 
(e) The term "excess", as used with respect to any equipment or 
materials, means the quantity of such equipment or materials owned 
by the United States which is in excess of the mobilization reserve of 
such equipment or materials. 
(f) 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. 
(g) The term "Armed Forces of the United States" shall include 
any component of the Army of the United States, of the United 
States Navy, of the United States Marine Corps, of the Air Force of 
the United States, of the United States Coast Guard, and the Reserve 
components thereof. 
(h) The term "value" means— 
(1) with respect to any excess equipment or materials furnished 
under chapter 1, of title I, the gross cost of repairing, rehabili-
tating, or modifying such equipment or materials prior to being 
so furnished; 
(2) with respect to any nonexcess equipment or materials 
furnished under chapter 1 of title I which are taken from the 
mobilization reserve (other than equipment or materials referred 
to in paragraph (3) of this subsection), the actual or the projected 
(computed as accurately as practicable) cost of procuring for 
the mobilization reserve an equal quantity of such equipment 
or materials or an equivalent quantity of equipment or materials 
of the same general type but deemed to be more desirable for 
inclusion in the mobilization reserve than the equipment or 
materials furnished; 
(3) with respect to any nonexcess equipment or materials 
furnished under chapter 1 of title I which are taken from the 
mobilization reserve but with respect to which the Secretary of 
Defense has certified that it is not necessary fully to replace such 
equipment or materials in the mobilization reserve, the gross 
cost to the United States of such equipment and materials or its 
replacement cost, whichever the Secretary of Defense may 
specify; and 
(4) with respect to any equipment or materials furnished under 
chapter 1 of title I which are procured for the purpose of being 
so furnished, the gross cost to the United States of such equip-
ment and materials. 
In determining the gross cost incurred by any agency in repairing, 
rehabilitating, or modifying any excess equipment furnished under 
chapter 1 of title I, all parts, accessories, or other materials used in 
the course of repair, rehabilitation, or modification shall be priced 
in accordance with the current standard pricing policies of such 
agency. 
For the purpose of this subsection, the gross cost of any 
equipment or materials taken from the mobilization reserve means 
either the actual gross cost to the United States of that particular 
equipment or materials or the estimated gross cost to the United States 
of that particular equipment or materials obtained by multiplying 
the number of units of such particular equipment or materials by the 
average gross cost of each unit of that equipment and materials owned 
by the furnishing agency. 
(i) The term "United States Government agency" means any 
department, agency, board, wholly or partly owned corporation, or 
instrumentality, commission, or establishment of the United States 
Government. 
SEC. 546. CONSTRUCTION.—(a) If any provision of this Act or the 
application of any provision to any circumstances or persons shall be 
held invalid, the validity of the remainder of the Act and applicability 
864 
PUBLIC LAW 666-AUG- 27, 1954 
[68 ST A T . 
60 Stat. 755. 
of such provision to other circumstances or persons shall not be affected 
thereby. 
(b) Nothing in this Act shall alter, amend, revoke, repeal, or other-
wise affect the provisions of the Atomic Energy Act of 1946, as 
amended (42 U. S. C. 1801), 
(c) Nothing in this Act is intended nor shall it be construed as an 
expressed or implied commitment to provide any specific assistance, 
whether of funds, commodities, or services, to any nation or nations, 
or to any international organization. 
SEC. 547. 
REDUCTION OF AUTHORIZATIONS.—Notwithstanding the 
foregoing provisions of this Act, such provisions shall not be construed 
to authorize the appropriation for the fiscal year 1955, for the pur-
poses of titles I, II, and IV of this Act, of amounts (exclusive of unex-
pended balances of prior appropriations authorized to be con-
tinued available under such provisions) aggregating in excess of 
$2,918,040,000. 
Approved August 26, 1954. 
August 27, 1954 
[S. 3302] 
Public Law 666 
CHAPTER 1004 
AN ACT 
Granting to the Las Vegas Valley water district, a public corporation organized 
under the laws of the State of Nevada, certain public lands of the United 
States in the State of Nevada. 
Las Vegas Val-
ley water district, 
Nev. 
Land grant. 
Reservation 
minerals. 
of 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That there is hereby 
granted to the Las Vegas Valley water district, a public corporation 
organized under the laws of the State of Nevada, all lands belonging to 
the United States situated in Clark County, State of Nevada, which 
may be necessary, as found by the Secretary of the Interior, for the 
construction, operation, and maintenance of facilities for the develop-
ment, production, storage, transmission, and distribution of water, 
including any or all of the following purposes only to the extent re-
quired for such development, production, storage, transmission, and 
distribution of water: 
Eights-of-way; buildings and structures; construction and main-
tenance camps; dumping grounds, flowage, diverting, or storage dams; 
pumping plants; canals, ditches, pipes, pipelines, flumes, tunnels, and 
conduits for conveying water for domestic, irrigation, household, stock, 
municipal, mining, milling, industrial, and other useful purposes; 
poles, towers, underground conduits, lines, and equipment for the con-
veyance and distribution of electrical energy; poles, underground con-
duits, and lines for telephone and telegraph purposes; roads, trails, 
bridges, tramways, railroads, and other means of locomotion, trans-
mission, or communication; for obtaining stone, earth, gravel, and 
other materials of like character; or any other necessary purposes of 
said grantee, together with the right to take for its own use, from any 
public lands, within such limits as the Secretary of the Interior may 
determine, stone, earth, gravel, sand, and other materials of like char-
acter necessary or useful in the construction, operation, and mainte-
nance of aqueducts, reservoirs, dams, pumping plants, electric trans-
mission, telephone, and telegraph lines, roads, trails, bridges, tram-
ways, railroads, and other means of locomotion, transmission, and com-
munication, or any other necessary purposes of said grantee. 
That there is hereby excepted and reserved unto the United States, 
from said grant, minerals, other than sand, stone, earth, gravel, and 
other materials of like character: Provided^ however^ That such