An Act to amend the Mutual Security Act of 1951, and for other purposes
PL 82-400 (H.R.7005), enacted 06/20/1952

66 STAT. 1 
PUBLIC LAW 400-JUNE 20, 1952 
l i t 
Public Law 400 
CHAPTER 449 
^ ^ ^^^ 
June 20. 1952 
To amend the Mutual Security Act of 1951, and for other purposes. 
[H. R. 7005] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may A<?t"f'is>^52f''"'"^ 
be cited as the "Mutual Security Act of 1952". 
SEC. 2. Section 2 of the Mutual Security Act of 1951 is amended by 
^^ stat. 373^ 
inserting " ( a ) " after the section number and by adding at the end 
thereof a new subsection as follows: 
"(b) The Congress welcomes the recent progress in political fed-
eration, military integration, and economic unification in Europe and 
reaffirms its belief in the necessity of further vigorous efforts toward 
these ends as a means of building strength, establishing security, and 
preserving peace in the North Atlantic area. 
In order to provide 
further encouragement to such efforts, the Congress believes it essential 
that this Act should be so administered as to support concrete measures 
for political federation, military integration, and economic unification 
in Europe. 
Appropriations made pursuant to paragraphs 101 (a) 
(l),relatingtomilitary assistance, and 101 (a) (2), relating to defense 
'"/''«• 
support and economic assistance, of this Act may be used, pursuant to 
the applicable terms and conditions of the Mutual Defense Assistance 
Act of 1949, as amended, and of section 503 of this Act, respectively, 
"2^ifs c^l'571 
to furnish assistance (including, in the case of amounts available pur- note, 1554. 
suant to paragraph 101 (a) (2), transfers of funds) to any of the 
following organizations: (A) The North Atlantic Treaty Organiza-
tion, (B) the European Coal and Steel Community, (C) the organ-
ization which may evolve from current international discussions 
concerning a European defense community." 
SEC. 3. Title I (relating to Europe) of the Mutual Security Act of 
Europe. 
1951 is amended as follows: 
(a) In paragraph 101 (a) (1), insert ", for Spain," after "parties to 
22 use lesi. 
the North Atlantic Treaty". 
(b) At the end of section 101 (a)(1), which relates to military assist-
ance for Europe, add the following new sentence: "There is hereby 
authorized to be appropriated to the President for the fiscal year 1953 
not to exceed $3,415,614,750, for assistance pursuant to the provisions 
,, 
, ^ 
of the Mutual Defense Assistance Act of 1949, as amended (22 U. S. C. 
1571-1604) to countries eligible for assistance under this paragraph; 
. 
and in addition unexpended balances of any appropriations heretofore 
made pursuant to this paragraph are authorized to be continued avail-
able for their original purposes through June 30, 1953, and to be con-
solidated with the appropriation hereby authorized." 
(c) Amend section 101 (a) (2), which relates to defense support and 
economic assistance for Europe, to read as follows: "There is hereby 
authorized to be appropriated to the President for the fiscal year 1953 
not to exceed $1,282,433,000 to provide assistance to any country cov-
ered by paragraph (1) of this subsection and to any other country 
. , ,. 
covered by section 503 of this Act in accordance with the provisions of 
such section; and in addition unexpended balances of appropriations 
heretofore made pursuant to this paragraph are authorized to be 
' 
continued available for their original purposes through June 30,1953, 
and to be consolidated with the appropriation hereby authorized." 
(d) At the end of section 101, add the following new subsection: 
"(c) Not less than $25,000,000 of the funds made available under 
^pam. 
authority of subsections (a) and (b) of this section shall be used for 
ecomomic, technical, and military assistance to Spain in accordance 
with the provisions of this Act. Unexpended balances of appropria-
PUBLIC LAW 400-JUNE 20, 1952 
[66 S T AT 
65 Stat. 730. 
N e a r E a s t and 
Africa. 
22 u s e 1691. 
22 u s e 1693. 
22 u s e 1654. 
64 Stat. 204. 
22 u s e 1695. 
Refugees. 
22 u s e 1694. 
Asia and P acif ic. 
22 u s e 1701. 
22 u s e 1702. 
62 Stat. 137. 
22 u s e 1654. 
tions made available for assistance to Spain pursuant to this section 
by the Act of October 31, 1951 (Public Law 249, Eighty-second Con-
gress), are authorized to be continued available until June 30, 1953." 
SEC. 4. Title I I (relating to the Near East and Africa) of the 
Mutual Security Act of 1951 is amended as follows: 
(a) At the end of section 201, which relates to military assistance for 
the Near East area, add the following new sentence: "There is hereby 
authorized to be appropriated to the President for the fiscal year 1953 
not to exceed $560,316,500, to carry out the purposes and provisions of 
this section; and in addition unexpended balances of any appropria-
tions heretofore made pursuant to this section are authorized to be 
continued available for their original purposes through June 30, 1953, 
and to be consolidated with the appropriation hereby authorized." 
(b) Amend section 203, which relates to economic and technical 
assistance for the Near East and Africa, to read as follows: "In order 
to further the purpose of this Act in Africa and the Near East there is 
hereby authorized to be appropriated to the President for the fiscal 
year 1953 not to exceed $50,822,750 to carry out the purposes and pro-
visions of this section; and in addition unexpended balances of any 
appropriations heretofore made pursuant to this section are author-
ized to be continued available for their original purposes through June 
30,1953, and to be consolidated with the appropriation hereby author-
ized. Funds appropriated pursuant to this section shall be available 
under the applicable provisions of section 503 of this Act and the Act 
for International Development (22 U. S. C. 1557)." 
(c) After section 205 add the following new section: 
"SEC. 206. In addition to the amounts authorized by section 203, 
there is hereby authorized to be appropriated not to exceed $60,063,250 
for carrying out the purposes and provisions of section 204 of this Act, 
relating to Palestine refugees, during the fiscal year 1953; and not to 
exceed $70,228,000 for carrying out the purposes and provisions of 
section 205 of this Act, relating to refugees in Israel, during the fiscal 
year 1953: Provided^ That amounts appropriated pursuant to this sec-
tion which the President finds cannot be effectively expended to carry 
out the purposes and provisions of sections 204 and 205 may be trans-
ferred to and merged with the appropriations authorized by section 
203." 
SEC. 5. Title I I I (relating to Asia and the Pacific) of the Mutual 
Security Act of 1951 is amended as follows: 
(a) At the end of section 801, which relates to military and other 
assistance for Asia and the Pacific, add the following new sentence: 
"There is hereby authorized to be appropriated to the President for the 
fiscal year 1953 not to exceed $564,807,500, to carry out the purposes 
and provisions of this section; and in addition unexpended balances 
of any appropriations heretofore made pursuant to this section are 
hereby authorized to be continued available for their original pur-
poses through June 30, 1953, and to be consolidated with the appro-
l)riation hereby authorized." 
(b) In the second sentence of section 302 (a), which relates to eco-
nomic and technical assistance for Asia and the Pacific, strike out 
the words "the applicable provisions of the Economic Cooperation Act 
of 1948, as amended (22 U. S. C. 1501-1522), and" and insert in lieu 
thereof "the applicable provisions of section 503 of this Act and the 
applicable provisions" and at the end of such subsection add the fol-
lowing new sentence: "Tliere is hereby authorized to be appropriated 
to the President for the fiscal year 1953 not to exceed $202,778,250, 
to carry out the purposes and provisions of this subsection in accord-
ance with the applicable provisions of section 503 of this Act and not 
to exceed $118,634,250 to carry out the purposes and provisions of 
66 
S T A T . ] 
PUBLIC LAW 400-JUNE 20, 1952 
143 
tliis subsection in accordance with the applicable i^rovisions of the 
Act for International Development (Public Law 535, Eighty-first 
Congress) ; and in addition unexpended balances of any appropria-
tions heretofore made pursuant to this subsection are hereby 
authorized to be continued available for their original purposes 
through June 30, 1953, and to be consolidated with the appropriation 
hereby authorized. 
(c) At the end of section 302 (b), concerning Chinese and Korean 
students in the United States, add the following new sentence: "Unex-
pended balances of allocations heretofore made to the Secretary of 
State pursuant to that proviso shall be continued available until 
expended." 
(d) In the first sentence of section 303 (a), authorizing the appro-
priation of $45,000,000 for Korean relief, after the words "to be appro-
priated to the President" insert the words "for the fiscal year 1953". 
(e) In the second sentence of section 303 (a) strike out "1952" and 
insert "1953". 
(f) Immediately before the last sentence of section 303 (a) insert 
the following: "In addition, the United States Department of the 
Army is hereby authorized to make available to the United Nations 
Korean Reconstruction Agency, at the time when that agency assumes 
full responsibility for relief and rehabilitation in Korea, goods and 
services of a value not to exceed $67,500,000 which the Department of 
the Army then has on hand or on order for civilian relief in Korea 
and which the President determines should be contributed by the 
United States to the United Nations Korean Reconstruction Agency 
for use in its relief and rehabilitation operations in Korea. 
The 
value of goods and services made available pursuant to the preceding 
sentence shall be credited toward the contribution to be made by the 
United States to the United Nations Korean Reconstruction Agency." 
(g) The last sentence of section 303 (b), which provides for reduc-
tion in United States contributions to Korean relief by the amounts 
made available by United States agencies, is hereby repealed. 
SEC. 6. Title IV (relating to Latin America) of the Mutual Security 
Act of 1951 is amended (1) by adding at the end of the center heading 
"AND NON-SELF-GOVERNING 
TERRITORIES 
OF 
T H E 
WESTERN HEMISPHERE", (2) by inserting after "Republics" in 
section 402 the words "and non-self-governing territories of the 
Western Hemisphere", and (3) by adding at the end of such title the 
following new section: 
"SEC. 403. In addition to the amounts heretofore authorized and 
appropriated, there are hereby authorized to be appropriated to the 
President for the fiscal year 1953 not to exceed $57,685,750 to carry out 
the purposes and provisions of section 401, which relates to military 
assistance for Latin America, and not to exceed $20,329,000 to carry 
out the purposes and provisions of section 402, which relates to tech-
nical assistance for Latin America. 
In addition, unexpended balances 
of the appropriation heretofore made pursuant to each such section 
are authorized to be continued available for their original purposes 
through June 30, 1953, and to be consolidated with the applicable 
appropriation authorized by this section." 
SEC. 7. Title V (relating to organization) of the Mutual Security 
Act of 1951 is amended as follows: 
(a) Section 522, which requires that at least 10 per centum of the 
funds for aid pursuant to the Economic Cooperation Act of 1948, as 
amended, be in the form of loans, is hereby repealed. 
(b) In paragraph (3) of section 501 (a), insert before the period at 
the end thereof the following: "and the supervision, coordination, and 
evaluation of all reports prepared by agencies of the United States 
64 Stat. 204. 
22 u s e 15 57 
note. 
Chinese and Ko-
rean students in 
U.S. 
22 u s e 1547. 
U.N. Korean Re-
c o n s t r u c t i o n 
Agency. 
22 u s e 1703. 
A m e r i c a n Re-
publics. 
22 u s e 1712. 
22 u s e 1711. 
Organization. 
22 u s e 1509(c). 
62 Stat. 137. 
22 u s e 
150 1 
note. 
Director. 
22 u s e 1652. 
144 
PUBLIC LAW 400~JUNE 20, 1952 
[66 ST A T . 
22 use 1654. 
22 use 1653. 
62 Stat. 137. 
22 u s e 
150 1 
note. 
Personnel. 
22 use 1655. 
22 use 801 note. 
63 Stat. 959. 
5 use 1105. 
Government in the course of their operations under this Act, in order 
to prevent duplication of effort and to insure a reduction of reporting 
requirements to the minimum essential for effective operation". 
(c) Amend section 503 by inserting " ( a ) " after "503", by redesig-
nating paragraphs (a), (b),and (c) as (1), (2), and (3), respectively, 
and by adding at the end thereof the following new subsection: 
"(b) (1) Except as provided in paragraph (2), the Economic 
Cooperation Act of 1948, as amended, is repealed. 
"(2) Of the powers, functions, and responsibilities transferred to 
the Director for Mutual Security by section 502 (b) (2) of this Act, 
only those which are exercised pursuant to the provisions of the 
Economic Cooperation Act of 1948, as amended, enumerated in para-
graph (3) of this subsection and are not in conflict with the other 
provisions of this Act, as amended, may be exercised after June 30, 
1952. Of the powers, functions, and responsibilities conferred on the 
President or the Secretary of State by the Economic Cooperation Act 
of 1948, as amended, only those conferred by the provisions of that 
Act, as amended, which are referred to in paragraph (3) of this sub-
section may be exercised after June 30, 1952. 
"(3) The provisions of the Economic Cooperation Act of 1948, as 
amended, referred to above are the following: Sections 104 (e) and 
(f) ; 105 (c) ; 107; subsections (a), (c), and (d) of section 109; 110 
(a) and (b) ; 111; 112; 113; subsections (d), (h), and (i) of section 
114; 115 (a) ; 115 (b), except the first sentence thereof; subsections 
(d), (h), and (j) of section 115; section 117 (c) ; 118; 119; 120; and 
subsection (a) of section 121. Where any of the above provisions 
refer to the purposes of the Economic Cooperation Act of 1948, as 
amended, such reference shall be deemed to be to the purpose of this 
Act, as amended." 
(d) In section 504 (a), strike out all after "Senate" and insert in lieu 
thereof a period and the following sentences: "The Deputy Director 
shall receive compensation of $17,500 per annum. 
The Special Rep-
resentative in Europe shall receive the same compensation and allow-
ances as a Chief of Mission, class 1, within the meaning of the Act of 
August 13, 1946 (60 Stat. 999), and have the rank of Ambassador 
Extraordinary and Plenipotentiary. 
The Deputy Special Represent-
ative in Europe shall be entitled to receive the same compensation and 
allowances as a Chief of Mission, class 3, within the meaning of the Act 
of August 13, 1946 (60 Stat. 999), and have the rank of Ambassador 
Extraordinary and Plenipotentiary." 
(e) In section 504 (c), (1) strike out "transferred to or employed by 
the Mutual Security Agency" and insert in lieu thereof "employed in 
the United States on programs authorized by this Act" and (2) amend 
the second sentence of such subsection to read as follows: "Such posi-
tions 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 Classification Act of 1949, as amended." 
(f) Before the period at the end of section 504 (d), insert the fol-
lowing : ": Provided further^ That, ninety days after the enactment of 
the Mutual Security Act of 1952, the number of civilian employees who 
are United States citizens, receiving compensation or allowances from 
the administrative expense appropriations authorized by this Act, 
employed in the United States and overseas by or assigned to the 
Mutual Security Agency, or employed by or assigned to the Depart-
ment of State or the Department of Defense for carrying out programs 
the appropriations for which are authorized by this Act, and the mili-
tary personnel assigned to such programs, shall be in the aggregate at 
least 5 per centum less than the number so employed or assigned on 
June Ij 1952, except for such personnel of the Department of Defense 
66 
S T A T . ] 
PUBLIC LAW 400-JUNE 20, 1952 
145 
engaged in the manufacturing, repair, rehabilitation, packing, han-
dling, crating, or delivery of materiel: Provided further^ That after 
the Director has determined the reduction to be effected in each agency, 
the determination as to which individual employees shall be retained 
shall be made by the head of the agency concerned". 
(g) Amend section 506 (c) to read as follows: 
"(c) Notwithstanding any other provision of law, beginning with 
July 1, 1952, the Secretary of Defense may furnish (subject to reim-
bursement from funds appropriated pursuant to this Act) military 
assistance out of the materials of war whose production in the United 
States shall have been authorized for, and appropriated to, the Depart-
ment of Defense : Provided^ however^ That nothing in this Act shall 
authorize the furnishing of military items under this subsection in 
excess of $1,000,000,000 in value. For the purposes of this subsection 
(1) 'value' shall be determined in accordance with section 403 (c) of 
the Mutual Defense Assistance Act of 1949, as amended, and (2) the 
term 'materials of war' means those goods, commonly known as mili-
tary end items, which are required for the performance of their mis-
sions by armed forces of a nation, including weapons, military vehicles, 
ships of war under lifteen hundred tons, aircraft, military communica-
tions equipment, ammunition, maintenance parts and spares, and 
military hardware." 
(h) Section 511 is amended by adding the following new subsection: 
"(c) (1) The Congress of the United States finds that mutual 
security can be realized only to the extent that the countries who receive 
our aid do their utmost to help themselves and cooperate among them-
selves and with the United States to the fullest extent in achieving 
the objectives of the free world. 
In providing assistance under this 
Act, the Congress of the United States affirms the desire of the United 
States to continue to use its leadership and resources for the purpose 
of uniting the efforts of recipient countries to the end that positive 
accomplishments toward mutual security may be realized with a maxi-
mum of efficiency and a minimum of delay and cost. 
"(2) In addition to the provisions of subsections (a) and (b) of 
this section, the Director, in administering this Act, shall insure that, 
where necessary to the mutual security effort, no country shall receive 
any assistance hereunder unless it take decisive action to marshal its 
resources collectively, or individually where more suitable, with inte-
gration and unification plans in the appropriate area, and participate 
in programs w^hich promote collective security in that area. 
The 
Director shall insure that, where suitable or necessary to the success 
of the mutual security effort, countries take adequate steps to mobilize 
their industries for mutual defense and gear their fiscal, budgetary, 
capital, political, and military resources to the objectives of this Act 
and take appropriate other steps toward self-help and mutual 
cooperation. 
"(3) Assistance shall be given on a country-by-country basis to a 
degree and at a rate commensurate with the rate of progress made in 
the attainment of the objectives of this Act." 
(i) In section 513, amend the heading to read "SPECIAL USE OF 
FUNDS", insert " ( a ) " after "SEC. 513.", and add at the end of such 
section the following new subsection: 
"(b) Not more than $100,000,000 of the funds made available under 
the Mutual Security Act of 1952, of which not more than $20,000,000 
may be allocated to any one country, may be used or supplied without 
regard to any conditions as to eligibility contained in this Act, or any 
other Act for which funds are authorized by this Act, when the Presi-
dent determines that such use is important to the security of the 
United States. 
The President shall notify the Committee on Foreign 
22 u s e 1657. 
Secretary of De-
fense. 
63 Stat. 717. 
22 u s e 1574. 
22 u s e 1662. 
Cooperative ac-
tion requirement. 
S p e c i a l use of 
funds. 
22 u s e 1664. 
m 
PUBLIC LAW 400-JUNE 20, 1952 
[66 ST A T . 
22 use 1665. 
22 use 1667. 
E n c o uragement 
of free enterprise. 
Reports. 
22 use 1669. 
Local currency. 
22 use 1670. 
22 use 1654. 
22 use 16 5 1 
Relations of the Senate and the Committee on Foreign Affairs of 
the House of Representatives upon making any such determination." 
(j) Amend section 514 to read as follows: 
"STRATEGIC MATERIALS 
"SEC. 514. In order to reduce the drain on United States resources 
and to assure the production of adequate supplies of essential raw 
materials for the collective defense of the free world, the Director for 
Mutual Security is authorized to initiate projects for, and assist in 
procuring and stimulating increased production of, materials in which 
deficiencies or potential deficiencies in supply exist among nations 
receiving United States assistance." 
(k) Amend section 516 by inserting " (a)" after "SIEC. 516." and by 
adding at the end of such section the following new subsections: 
"(b) To accomplish the purpose of clause (1) of subsection (a) of 
this section, under the coordination of the Director for Mutual Secu-
rity, the Mutual Security Agency, cooperating with private business 
groups and governmental agencies to the fullest extent possible, shall 
encourage a greater participation by private capital in the guaranty 
program and shall develop broad criteria to facilitate such participa-
tion, including programs consistent with the purposes of the Act for 
International Development. 
"(c) The Department of Commerce shall, in cooperation with such 
groups and agencies (including the International Bank for Recon-
struction and Development), conduct a thorough study of the 
legal and other impediments, foreign and local, to private investment 
abroad, and the methods and means whereby those impediments can 
be removed or decreased and shall make recommendations thereon to 
the Director for Mutual Security. 
"(d) The Department of State, in cooperation with other agencies 
of the Government concerned with private investment abroad, and 
taking into account the study and recommendations described in sub-
section (c) of this section, shall accelerate a program of negotiating 
treaties of commerce and trade, or other temporary arrangements 
where more suitable or expeditious, which shall include provisions to 
encourage and facilitate the flow of private investment to countries 
participating in programs under this Act. 
"(e) The Technical Cooperation Administration, taking into 
account the study and recommendations described in subsection (c) 
of this section, shall encourage and facilitate a greater participation 
by private industrial groups or agencies in private contracts awarded 
by the Administration, and shall, in cooperation with the Department 
of Commerce and the Mutual Security Agency, find and draw the 
attention of private enterprise to opportunities for investment and 
development in underdeveloped areas. 
"(f) The reports required by section 518 of this Act shall include 
detailed information on the implementation of this section." 
(1) In section 519 (a), which permits the limited use of economic 
and technical assistance funds for the Near East, Africa, Asia, and 
the Pacific to acquire local currency, immediately after the words 
"may be advanced", insert the words "out of funds made available 
for assistance under section 503 of this Act". 
(m) After section 531 add the following new sections: 
"EXEMPTION FROM CONTRACT, ACCOUNTING, AND CERTAIN OTHER LAWS 
"SEC. 532. The provisions of section 119 of the Economic Coop-
eration Act of 1948, as amended (22 U. S. C. 1517), which concern 
66 
S T A T . ] 
PUBLIC LAW 400-JUNE 20, 1952 
147 
exemption from contract and accounting laws, shall apply to the 
performance of functions authorized by this Act. 
"SEC. 533. (a) Notwithstanding section 2 of the Act of July 31, 
1894 (5 U. S. C. 62), which prohibits certain retired officers from 
holding certain office, any retired officer of any of the services men-
tioned in the Career Compensation Act of 1949 may hold any office 
or appointment under this Act or the Mutual Defeuse Assistance 
Control Act of 1951, but the compensation of any such retired officer 
shall be subject to the provisions of the Act of June 30,1932 (5 U. S. C. 
59a), which does not permit retired pay to be added to the compensa-
tion received as a civilian officer. 
" (b) Officers of the United States Public Health Service and officers 
of the Coast and Geodetic Survey, who are assigned for duty under 
this Act outside the continental limits of the United States, may 
receive the allowances and benefits provided for officers in the Foreign 
Service Reserve or Staff by the Foreign Service Act of 1946, as 
amended (22 U. S. C. 801-1204), and may also receive salary differ-
entials as provided in that Act computed on their basic pay under 
the Career Compensation Act of 1949, as amended (37 U. S. C. 231-
320); and, in addition to any quarters furnished them by the Gov-
ernment, such officers may receive, during the period of their 
assignment for duty outside the continental limits of the United 
States, the allowance payable under section 302 (f) of the Career 
Compensation Act of 1949, as amended (37 U. S. C. 252 (f)). 
"MOVEMENT OF MIGRANTS 
"SEC. 534. In order to encourage further the movement of migrants 
from European countries having surplus population, there is hereby 
authorized to be appropriated to the President $9,240,500 for use in 
making contributions for the calendar year 1953 to the Provisional 
Intergovernmental Committee for the Movement of Migrants from 
Europe established at Brussels, Belgium, on December 5,1951. 
"OCEAN FREIGHT CHARGES ON RELIEF PACKAGES 
"SEC. 535. The authority to pay ocean freight charges on ship-
ments of relief supplies and packages under section 117 (c) of the 
Economic Cooperation Act of 1948, as amended (22 U. S. C. 1515 (c)), 
shall be continued and may be exercised after June 30, 1952, by any 
department or agency of the Government that the President may des-
ignate : Provided^ That this authority shall hereafter also be applicable 
to relief shipments by voluntary nonprofit relief agencies registered 
with and approved by the Advisory Committee on Voluntary Foreign 
Aid to any country eligible for economic or technical assistance under 
this Act: And 'provided further^ That not to exceed $2,587,500 are 
authorized to be appropriated to the President for the fiscal year 1953 
for use in paying ocean freight charges under section 117 (c) of the 
Economic Cooperation Act of 1948, as amended. 
"INFORMATIONAL MEDIA GUARANTIES 
"SEC. 536. The authority to make informational media guaranties 
under section 111 (b) (3) of the Economic Cooperation Act of 1948, as 
amended, shall be fully continued and may be exercised after June 30, 
1952, by any department or agency of the Government that the Presi-
dent may designate. 
Retired officers. 
28 Stat. 205. 
63 Stat. 802. 
37USC231note. 
65 Stat. 644. 
22 u s e 
1 6 1 1 
note. 
47 Stat. 406. 
60 Stat. 999. 
22 u s e 1509. 
93300 O - 53 - 13 
148 
PUBLIC LAW 400-JUNE 20, 1952 
[66 S T A T , 
63 Stat. 714. 
22 u s e 
1571 
note. 
Report. 
22 use 1669. 
22 use 1510. 
22 use 1513. 
"LIMITATION ON F U N D S FOR PROPAGANDA 
"SEC. 537. 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 pro-
gram, or to pay the travel or other expenses outside the United States 
of anv citizen or group of citizens of the United States for the purpose 
of publicizing such program within the United States. 
"SMALL BUSINESS 
"SEC. 538. (a) Insofar as practicable and to the maximum extent 
consistent with the accomplishment of the purposes of this Act, the 
Director for Mutual Security shall assist American small business to 
participate equitably in the furnishing of commodities and services 
financed with funds authorized under this Act (other than funds 
authorized to carry out the provisions of the Mutual Defense Assist-
ance Act of 1949, as amended) by making available or causing to be 
made available to suppliers in the United States and particularly to 
small independent enterprises, information, as far in advance as pos-
sible, with respect to purchases proposed to be financed with funds 
authorized under this Act (other than funds authorized to carry out 
the provisions of the Mutual Defense Assistance Act of 1949, as 
amended), by making available or causing to be made available to 
prospective purchasers in the countries receiving assistance under this 
Act information as to commodities and services produced by small 
independent enterprises in the United States, and by offering addi-
tional services to give small business better opportunities to partici-
pate in the furnishing of commodities and services financed with such 
funds. 
"(b) There shall be continued in the Mutual Security Agency the 
Office of Small Business headed by the Special Assistant for Small 
Business to carry out the provisions of subsections (a) and (b) of this 
section. 
Each report transmitted to the Congress under section 518 
shall include a report of all activities under this section. The Tech-
nical Cooperation Administration shall adopt the procedure of notify-
ing American business, particularly small independent enterprises, of 
procurement and other information as far in advance as possible 
through the facilities of the Office of Small Business of the Mutual 
Security Agency. 
The Secretary of Defense shall assure that there 
is made available to suppliers in the United States, and particularly 
to small independent enterprises, information with respect to pur-
chases made by the Department of Defense pursuant to the provisions 
of the Mutual Defense Assistance Act of 1949, as amended, such infor-
mation to be furnished as far in advance as possible. 
"(c) Section 112 (i) of the Economic Cooperation Act of 1948, as 
amended, is hereby repealed. 
"LIMITATION ON USE OF COUNTERPART FUNDS 
"SEC. 539. Except as otherwise specifically authorized by law, all 
counterpart funds of local currencies created by section 115 (b) (6) 
of the Economic Cooperation Act of 1948, as amended, and by Acts 
supplementary or amendatory thereto shall be expended only on 
programs to carry out the purposes for which new funds authorized 
by this Act would themselves be available." 
SEC. 8. The Mutual Defense Assistance Act of 1949, as amended 
(2'2 U. S. C. 1571-1604), is further amended as follows: 
66 
S T A T . ] 
PUBLIC LAW 400-JUNE 20, 1952 
m 
(a) Before the period at the end of the proviso in the first sentence 
of section 403 (d), which authorizes the furnishing of $1,000,000,000 
worth of excess equipment to foreign nations, insert a comma and the 
words "and after June 30, 1952, by an additional $200,000,000". 
(b) Change section 408 (e), concerning reimbursable aid, to read 
as follows: 
"(e) (1) The President may, from time to time, in the interest of 
achieving standardization of military equipment and in order to pro-
vide procurement assistance without cost to the United States, trans-
fer, or enter into contracts for the procurement for transfer of, 
equipment, materials, or services to: (A) nations eligible for assist-
ance under title I, II, III, or IV of the Mutual Security Act of 1951; 
(B) a nation which has joined with the United States in a collective 
defense and regional arrangement; (C) any international military 
organization or headquarters if, in the opinion of the President, such 
assistance will further the purposes of this Act; or (D) any other 
nation not eligible to join a collective defense and regional arrange-
ment referred to in clause (B) above, but whose ability to defend 
itself or to participate in the defense of the area of which it is a part, 
is important to the security of the United States: Provided, 
That, 
prior to the transfer of any equipment, materials, or services to a 
nation under this clause (D), it shall provide the United States with 
assurance that such equipment, materials, or services are required for 
and will be used 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 the United Nations collective security arrange-
ments and measures, and that it will not undertake any act of aggres-
sion against any other state: Provided further, That, in the case of any 
such transfer, the President shall forthwith notify the Committee on 
Foreign Relations of the Senate, the Committees on Armed Services 
of the Senate and of the House of Representatives, and the Committee 
on Foreign Affairs of the House of Representatives. 
"(2) Whenever equipment or material is transferred from the 
stocks of, or services are rendered by any agency, to any nation or 
international organization as provided in paragraph (1) above, such 
nation or international organization shall first make available the 
fair value, as determined by the President, of such equipment, mate-
rials, or services before delivery or, when the President determines it 
to be in the best interests of the United States, within sixty days there-
after. 
The fair value for the purpose of this paragraph shall not be 
less for the various categories of equipment or materials than the value 
as defined in subsection (c) of section 403: Provided, That with respect 
to excess equipment or materials the fair value may not be determined 
to be less than the value specified in paragraph (1) of that subsection 
plus (a) 10 per centum of the original gross cost of such equipment or 
materials; (b) the scrap value; or (c) the market value, if ascentain-
able, whichever is the greater. 
Before a contract is entered into, or 
rehabilitation work is undertaken, such nation shall (A) provide the 
United States with a dependable undertaking to pay 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: 
Provided, That the total amount of outstanding contracts under this 
subsection, less the amounts which have been paid the United States 
by such nations, shall at no time exceed $700,000,000. 
22 u s e 1574. 
22 u s e 1580. 
T r a n s f e r 
of 
e q u i p m e n t , ma-
terials, etc. 
No t i f ication of 
e o n g r e s s i onal 
Committees. 
Fair value. 
22 u s e 1574. 
u p 
PUBLIC LAW 400-JUNE 20, 1952 
[66 STAT. 
22 use 1581. 
"(3) The provisions of section 409 of this Act shall not apply to 
equipment, materials, and commodities made available under this sub-
section." 
22 use 1513. 
SEC. 9. Section 115 of the Economic Cooperation Act of 1948, as 
amended, is amended as follows: 
co^ts*. *
= ^ ^ ^ ^
*
=
- 
(a) Before the period at the end of paragraph (6) of subsection (b) 
insert a colon and the following: ^^And provided further^ That when-
:;., .1 
fiver 
funds from such special account are used by a country to make 
loans all funds received in repayment of such loans shall be redepos-
ited in such special account". 
(b) In subsection (h) strike out "5 per centum" and insert in lieu 
thereof "10 per centum". 
(c) At the end of such section add a new subsection as follows: 
"(k) Of the funds appropriated pursuant to section 101 (a) (2) of 
Ante, p. 141. 
the Mutual Security Act of 1951, as amended, (1) $100,000,000 shall, 
to the maximum extent practicable consistent with the accomplishment 
of the policies and purposes of the Mutual Security Act of 1951, as 
amended, be expended in such manner and subject to such agreements 
as may be necessary to assure that the amounts of local currencies 
deposited under subsection (b) (6) as a result of such expenditure 
shall be used exclusively, in accordance with principles developed by 
the Administrator, to establish revolving funds which shall be avail-
able for making loans, and otherwise to carr}' out programs in further-
ance of the objectives of section 516 of the Mutual Security Act of 
Ante, p. 146. 
1951, with a view to stimulating free enterprise and the expansion of 
the economies of those countries with equitable sharing of the benefits 
of increased production and productivity between consumers, workers, 
and owners; and (2) the Director for Mutual Security is authorized 
to transfer not exceeding $2,500,000 to the Organization for European 
Economic Cooperation, to be used on terms and conditions to be speci-
fied by the Director in order to promote the objectives of section 516 of 
the Mutual Security Act of 1951, as amended." 
>
; . . i, 
SEC. 10. The Act for International Development is amended as 
follows: 
22 use 1557b. 
(g^) ^^ the end of section 404 (b), as amended, which relates to 
contributions of not to exceed $13,000,000 for 1952 to international 
organizations for technical cooperation programs, add the following 
proviso: '''•Provided further^ That for the fiscal year 1953 not to exceed 
$15,708,750 is authorized to be appropriated to the President for use 
in making contributions under this subsection." 
22 use i5S7k. 
(b) Change section 413 (a) thereof, which concerns the apj)oint-
, 
* X
V 
ment of the Administrator of the Technical Cooperation Administra-
tion at a salary of $15,000, to read as follows: 
o Iration^>wi5^ 
"(^) '^^^ President shall appoint, by and with the advice and con-
is^alio^l 
*
*
" sent of the Senate, an Administrator for Technical Cooperation, who, 
Personnel. 
under the direction of the President or such other officer as he may 
designate pursuant to section 412 hereof to exercise the powers con-
ferred upon him by this title, shall be responsible for planning, imple-
menting, and managing the programs authorized in this title. 
He 
shall be compensated at a rate fixed by the President without regard 
63 Stat. 954^^^^ to the Classification Act of 1949 but not in excess of $16,000 per annum. 
cTTo^ """ ""*" The President may also appoint, by and with the advice and consent 
of the Senate, a Deputy Administrator for Technical Cooperation who 
shall perform such functions as the Administrator shall designate, 
and shall be Acting Administrator for Technical Cooperation during 
the absence or disability of the Administrator or in the event of a 
vacancy in the office of the Administrator. 
The Deputy Adminis-
trator shall receive compensation at a rate fixed by the President 
5 use 1071 note. 
66 
S T A T . ] 
PUBLIC LAW 402-JUNE 23, 1952 
151 
without regard to the Classification Act of 1949 but not in excess of 
$15,000 per annum." 
SEC. 11. Section 32 (b) (2) of the Surplus Property Act of 1944, as 
amended (50 App. U. S. C. 1641), is amended by striking out in the 
first sentence thereof "acquired as a result of such surplus property 
disposals," and inserting in lieu thereof "held or available for expendi-
ture by the United States or any agency thereof (or deposited pursuant 
to agreements entered into pursuant to section 115 (b) (6) and 115 (h) 
of the Economic Cooperation Act of 1948, as amended), and not 
required by law or agreement with such government to be expended 
or used for any other purpose,". 
SEC. 12. There is hereby authorized to be appropriated to the Presi-
dent not to exceed $16,481,000 to enable him to make contributions to 
the United Nations International Children's Emergency Fund until 
December 31, 1953, in such manner and on such terms and conditions 
as he may deem to be in the interests of the United States to support 
international children's welfare work: Provided^ That the contribu-
tions shall be made in such a manner as to give assurance that they 
will not exceed 33% per centum of contributions from all governments, 
including contributions made by governments for the benefit of persons 
located within territories under their control: Provided further^ That 
none of the funds authorized shall be used in duplication of the 
activities of other agencies of the United Nations. 
Approved June 20, 1952. 
58 Stat. 782. 
22 u s e 1513. 
U. N. Int e rna-
t i o n a l Children's 
Emergency Fund. 
Public Law 401 
CHAPTER 450 
AN ACT 
To amend section 302 (4) of the Soldiers' and Sailors' Civil Relief Act of 1940, 
as amended, relating to penalties. 
June 23, 1952 
[S. 2390] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 302 (4) 
of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended 
(56 Stat. 772, 50 U. S. C. War App. 532 (4)), is amended to read as 
follows: 
"Any person who shall knowingly make or cause to be made any 
sale, foreclosure, or seizure of property, defined as invalid by sub-
section (3) hereof, or attempts so to do, shall be guilty of a misde-
meanor and shall be punished by imprisonment not to exceed one year 
or by fine not to exceed $1,000, or both." 
Approved June 23, 1952. 
Public Law 402 
CHAPTER 451 
AN ACT 
June 23, 1952 
To approve contracts negotiated with irrigation districts on the Owyhee, River- 
[H.R.56333 
ton, aiilk River, and Frenchtown Federal Reclamation Projects, to authorize 
their execution, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress (Dssembled^ That the contracts 
referred to in sections 2 to 5 of this Act, which have been negotiated by 
the Secretary of the Interior, pursuant to section 7 of the Reclamation 
Project Act of 1939 (53 Stat. 1187), are hereby approved, and the 
Secretary is authorized to execute them on behalf of the United States. 
Irri g a t ion dis-
tricts. 
Contracts. 
43 U s e 485£.