An Act to amend further the Mutual Security Act of 1951, as amended, and for other purposes.
PL 83-118 (H.R.5710), enacted 07/16/1953

152 
PUBLIC LAW 118-JULY 16, 1953 
[67 STAT, 
1954 allotment. 
Referendum. 
7 u s e 1301. 
Carryovers, 
63 Stat. 1051. 
7 u s e 1421 note. 
50 u s e 98 note. 
SEC. 4. Notwithstanding any other provision of law (a) 
the 
national acreage allotment for the 1954 crop of wheat shall not be 
less than sixty-two million acres; and (b) the referendum with respect 
to the 1954 crop of wheat may be held as late as August 15, 1953. 
SEC. 5. Sections 1, 2, and 3 of this Act shall become effective with 
respect to the 1954 and subsequent crops of wheat. 
SEC. 6. Section 301 of the Agricultural Adjustment Act of 1938, 
as amended, is amended by adding at the end thereof a new subsection 
" ( d ) " to read as follows: 
"(d) In making any determination under this Act or under the 
Agricultural Act of 1949 with respect to the carryover of any agri-
cultural commodity, the Secretary shall exclude from such determina-
tion the stocks of any commodity acquired pursuant to, or under the 
authority of, the Strategic and Critical Materials Stock Piling Act 
(60 Stat. 596)." 
Approved July 14, 1953. 
Public Law 118 
CHAPTER 195 
July 16, 1953 
AN A C T 
[H. R. 5710] 
r^Q amend further the Mutual Security Act of 1951, as amended, and for other 
purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
Mutual Security United States of America in Congress assembled^ That this Act may be 
Act o
f 1953. 
^..^^^ ^g ^^^ "Mutual Security Act of 1953". 
65 Stat. 373. 
2 2 u s e 
1651 
note. 
CHAPTER I—MILITARY ASSISTANCE 
SEC. 101. AUTHORIZATION OF APPROPRIATION.—The Mutual Security 
Act of 1951, as amended, is amended by adding at the end thereof the 
following new section: 
a 
Post, 
p. 156. 
66 Stat. 141. 
22 u s e 1651(b). 
22 u s e 1691. 
22 u s e 1701. 
22 u s e 1711. 
AUTHORIZATION OP APPROPRIATIONS 
"SEC. 540. There is hereby authorized to be appropriated to the 
President for the fiscal year 1954 not to exceed $2,129,689,870 to be 
available under section 101 (a) (1) (relating to military assistance 
for Europe) : Provided^ That of the equipment and materials made 
available under section 101 (a) (1) with funds appropriated pursuant 
to the authorization contained in this section, 50 per centum shall be 
transferred to the organization referred to in clause (C) of section 
2 (b) or to the countries which become members thereof, unless the 
Congress, upon the recommendation of the President, shall hereafter 
otherwise provide; $305,212,637 to be available under section 201 
(relating to military assistance for the Near East and Africa) : 
$1,081,620,493 to be available under section 301 (relating to military 
and other assistance for Asia and the Pacific); and $15,000,000 to 
be available under section 401 (relating to military assistance for 
Latin America) " 
CHAPTER II—MUTUAL DEFENSE FINANCING 
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.— (a) The Mutual 
Security Act of 1951, as amended, is amended by adding after section 
540 the following new section: 
"SEC. 541. There is hereby authorized to be appropriated to the 
President for the fiscal year 1954 not to exceed $250,000,000 to carry 
67 S T A T . ] 
PUBLIC LAW 118--JUL\ 16, 1953 
153 
out the provisions of section 101 (a) (2) (relating to defense support 
22 use lesi. 
and economic assistance for Europe), and not to exceed $84,000,000 
to carry out the provisions of section 302 (a) (relating to defense 
22 use 1702, 
support, economic and technical assistance),including the exploration 
and development of mineral and petroleum resources, for the National 
Government of the Republic of China and the Associated States of 
Cambodia, Laos, and Vietnam." 
(b) Such Act, as amended, is further amended by inserting after 
section 101 the following new section: 
22 use lesi. 
"SEC. 102. There is hereby authorized to be appropriated to the 
President for the fiscal year 1954, to be made available on such terms 
and conditions, including transfer of funds, as he may specify, (1) not 
to exceed $100,000,000 for manufacture in France of artillery, ammu-
nition, and semiautomatic weapons required by French forces for the 
defense of the North Atlantic area, and (2) iiot to exceed $100,000,000 
for manufacture in the United Kingdom of military aircraft required 
by United Kingdom forces for the defense of the North Atlantic area." 
(c) Such Act, as amended, is further amended by inserting after 
section 303 the following new section; 
22 use 1703. 
"SEC. 304. Tliere is hereby authorized to be appropriated to the 
Cambodia, etc. 
President for the fiscal year 1954, to be made available on such terms 
and conditions, including transfer of funds, as he may specify, not 
to exceed $400,000,000 for the procurement of equipment, materials, 
and services (as defined in section 411 of the Mutual Defense Assist-
ance Act of 1949, as amended) wliich are required by and are to be 
Post, p. lei. 
made available to, or are necessary for the support of, the forces of 
the Associated States of Cambodia, Laos, and Vietnam and the forces 
of France located in such Associated States." 
CHAPTER III—MUTUAL SPECIAL WEAPONS PLANNING 
SEC. 301. AUTHORIZATION OF APPROPRIATION.—The Mutual Security 
Act of 1951, as amended, is amended by adding after section 541 the 
following new section: 
"SEC. 542. There is hereby authorized to be appropriated to the 
President for the fiscal year 1954 not to exceed $100,000,000 for the 
purpose of furnishing special weapons to nations eligible to receive 
military assistance under this Act or to the international organizations 
referred to in section 2 (b) (A) and 2 (b) (C) of this Act: Provided, 
22 use lesi. 
That, prior to the obligation of funds for this purpose, the President 
shall determine that such obligation is of direct importance to the 
security interest of the United States and is in furtherance of the 
policies and purposes of the Mutual Defense Assistance Act of 1949, as 
^°**' P- ^^O-
amended: Arid provided further, That, prior to the transfer of such 
weapons, the President shall determine (1) that the recipient is 
adequately prepared to safeguard the security of such weapons; 
(2) that the transfer of such weapons will be of direct importance to 
the security interest of the United States; and (3) that such transfer 
will further the purposes and policies of the Mutual Defense Assistance 
Act of 1949, as amended. 
Nothing contained in this section shall alter, 
amend, revoke, repeal, or otherwise affect the provisions of any law 
restricting, limiting, or prohibiting the transfer of any such weapons. 
Notwithstanding any other provisions of this Act, funds made available 
pursuant to this section may be used only for the purpose of this 
section." 
CHAPTER IV—TECHNICAL ASSISTANCE 
SEC. 401. AUTHORIZATION OF APPROPRIATION.—The Mutual Security 
Act of 1951, as amended, is amended by adding after section 542 the 
following new section: 
154 
PUBLIC LAW 118—JULY 16, 1953 
[67 S T A T . 
22 use 1693. 
Post, p. 156. 
22 use 1712. 
22 use 1665. 
66 Stat. 142. 
22 use 1696. 
66 Stat. 144. 
22 use 1654. 
22 use 1702. 
22 use 
15 57 
note. 
22 use 1654. 
66 Stat. 14 7. 
22 use 167SC. 
"SEC. 543. There is hereby authorized to be appropriated to the 
President for the fiscal year 1954 not to exceed $43,792,500 to carry out 
the provisions of section 203 (relating to economic and technical 
assistance for the Near East and Africa); $72,100,000 to carry out the 
provisions of section 302 (a) (relating to defense support, economic 
and technical assistance) other than for the National Government of 
the Republic of China and the Associated States of Cambodia, Laos, 
and Vietnam; and $24,342,000 to carry out the provisions of section 
402 (relating to technical assistance for Latin America)." 
SEC. 402. AUTHORIZATION OF APPROPRIATION FOR BASIC MATERIALS.— 
Section 514 (relating to basic materials) of the Mutual Security Act of 
1951, as amended, is amended by adding at the end thereof the follow-
ing sentence: "There is hereby authorized to be appropriated to the 
President for the fiscal year 1954 not to exceed $7,500,000 to carry out 
the provisions of this section." 
CHAPTER V—SPECIAL REGIONAL ECONOMIC ASSISTANCE 
SEC. 501. NEAR EAST AND AFRICA.—Section 206 (relating to ref-
ugees) of the Mutual Security Act of 1951, as amended, is amended 
to read as follows: 
"SEC. 206. In order to further the purpose of this Act in the Near 
East and Africa, there is hereby authorized to be appropriated to the 
President for the fiscal year 1954 not to exceed $194,000,000 to be 
used, on such terms and conditions as he may specify, to furnish 
special economic assistance designed to promote the economic develop-
ment of the area, for relief and rehabilitation of refugees in the area, 
and for other types of economic assistance to assist in maintaining 
economic and political stability in the area. The applicable provi-
sions of the Act for International Development (64 Stat. 204; 22 
U. S. C. 1557), except the provisions relating to the purpose for which 
assistance may be given, or of section 503 (b) (3) of this Act, shall 
apply to the expenditure of funds pursuant to this section to the extent 
that they are not inconsistent with the purposes of this section." 
SEC. 502. INDIA AND PAKISTAN.—Section 302 (relating to economic 
and technical assistance for Asia and the Pacific) of the Mutual Secu-
rity Act of 1951, as amended, is amended by redesignating subsection 
(b) as subsection (c), and by inserting after subsection (a) the follow-
ing new subsection (b) : 
" (b) In order to further the purpose of this Act in India and Paki-
stan, there is hereby authorized to be appropriated to the President 
for the fiscal year 1954 not to exceed $94,400,000 to be used, on such 
terms and conditions as he may specify, to furnish special economic 
assistance designed to promote the economic development of such 
countries, to assist in maintaining economic and political stability 
therein, and to enable the countries designated in this subsection to 
make greater progress toward solving their mutual problems in coop-
eration with each other. The applicable provisions of the Act for 
International Development, except the provisions relating to the 
purpose for which assistance may be given, or of section 503 (b) (3) 
of this Act, shall apply to the expenditure of funds pursuant to 
this section to the extent that they are not inconsistent with the pur-
poses of this section." 
CHAPTER VI—MULTILATERAL ORGANIZATIONS 
SEC. 601. MOVEMENT OF MIGRANTS.—Section 534 (relating to the 
movement of migrants) of the Mutual Security Act of 1951, as 
amended, is amended by adding at the end thereof the following new 
67 S T A T . ] 
PUBLIC LAW 118-JULY 16, 1953 
155 
sentence: "There is hereby authorized to be appropriated to the Presi-
dent not to exceed $10,000,000 for contributions during the calendar 
year 1954 to the Intergovernmental 
Committee for European 
Migration." 
SEC. 602. MULTILATERAL TECHNICAL COOPERATION.—The Mutual 
Security Act of 1951, as amended, is amended by adding after sec-
tion 543 the following new section: 
"SEC. 544. There is hereby authorized to be appropriated to the 
President for the fiscal year 1954 not to exceed $13,750,000 for multi-
lateral technical cooperation under section 404 (b) of the Act for Inter-
national Development." 
SEC. 603. CHILDREN'S WELFARE.—The Mutual Security Act of 1951, 
as amended, is amended by adding after section 544 the following new 
section: 
"SEC. 545. There is hereby authorized to be appropriated to the 
President not to exceed $9,000,000 for contributions during the cal-
endar year 1954 for the support of international children s welfare 
work in such manner and on such terms and conditions as he may 
deem to be in the interests of the United States." 
SEC. 604. OCEAN FREIGHT ON BELIEF SHIPMENTS.—Section 535 
(relating to the payment of ocean freight charges on voluntary relief 
shipments) of the Mutual Security Act of 1951, as amended, is amended 
by adding at the end thereof the following new sentence: "There is 
hereby authorized to be appropriated to the President for the fiscal 
year 1954 not to exceed $1,825,000 for use in paying ocean freight 
charges under section 117 (c) of the Economic Cooperation Act of 
1948, as amended." 
SEC. 605. UNITED NATIONS KOREAN RECONSTRUCTION AGENCY.— 
Section 303 (a) (relating to Korean relief) of the Mutual Security 
Act of 1951, as amended, is amended as follows: 
(a) Add at the end the following new sentence: "There is hereby 
authorized to be appropriated to the President for the fiscal year 1954 
not to exceed $71,000,000 for making contributions to the United 
Nations Korean Reconstruction Agency, or such other agency for 
relief and rehabilitation in Korea as the President may direct." 
(b) In the third sentence, strike out "$67,500,000" and insert in 
lieu thereof "$40,750,000". 
64 Stat. 205. 
22 use 1557b. 
66 Stat. 147. 
22 use 1675ci. 
62 Stat. 153. 
22 use 1515. 
22 use 1703. 
CHAPTER VII—^FURTHER CHANGES IN EXISTING MUTUAL SECURITY 
LEGISLATION 
SEC. 701. TRANSFERS OF FUNDS.— (a) Section 101 (b) of the Mutual 
Security Act of 1951, as amended, is amended to read as follows: 
" (b) Not to exceed 10 per centum of the total of the appropriations 
made available under this section may be transferred, when deter-
mined by the President to be necessary for the purpose of this Act, 
between appropriations made available under either paragraph of sub-
section (a) : Provided^ That whenever the President makes any such 
determination, he shall forthwith notify the Committee on Foreign 
Relations of the Senate, the Committee on Foreign Affairs of the 
House of Representatives, and the Committees on Armed Services of 
the Senate and of the House of Representatives." 
(b) Section 202 of such Act, as amended, is amended by striking 
out "(excluding balances of prior appropriations continued available) 
pursuant to section 201" and inserting in lieu thereof "under section 
201". 
(c) The first sentence of section 513 (a) of such Act, as amended, is 
amended to read as follows: "Whenever the President determines it to 
be necessary for the purpose of this Act, funds made available under 
22 u s e 1681. 
eongre s sional 
eommittees. 
Notification. 
22 use 1692. 
22 use 1691. 
22 use 1664. 
156 
PUBLIC LAW 118-JULY 16, 1953 
[67 S T A T . 
1691, m?, iyVi!' sections 101 (a) (1), 201, 301, and 401 may be transferred among 
such sections, except that not more than 10 per centum of the funds 
available under any such section may be transferred from that sec-
1693, Y702 \7iV' tion; and funds made available under sections 101 (a) (2), 203, 302 
(a), and 402 may be transferred among such sections, except that not 
more than 10 per centum of the funds available under any such section 
may be transferred from that section. Funds so transferred shall be 
consolidated with the funds available under the section to which they 
are transferred. 
SEC. 702. UNEXPENDED BALANCES.—The Mutual Security Act of 
1951, as amended, is amended by adding after section 545 the follow-
ing new section: 
"UNEXPENDED BALANCES 
66 Stat. 652. 
"SEC. 546. The unexpended balance under each paragraph of title 
III, Mutual Security, of the Supplemental Appropriation Act, 1953, 
is hereby authorized to be continued available for its original purposes 
through June 30, 1954, and may be consolidated with the appropriate 
fiscal year 1954 appropriation made for the same general purpose 
under the authority of this Act." 
SEC. 703. ESCAPEES.—Paragraph 101 (a) (1) of title I (relating to 
22 use 1681. 
Europe) of the Mutual Security Act of 1951, as amended, is amended 
(1) by deleting the word "similarly" before the word "determined", 
(2) by inserting "or any (^ommunist-dominated or Communist-
occupied areas of Asia" immediately after "Austria," and before "and 
any other countries absorbed by the Soviet Union", and (3) by striking 
out "and to the security of the United States" and inserting in lieu 
thereof "or to the security of the United States". 
SEC. 704. MILITARY AID IN THE NEAR EAST AND AFRICA.—Section 
22 use 1692. 
202 of the Mutual Security Act of 1951, as amended, is amended by 
inserting " ( a ) " after "Sec. 202.", and by adding at the end thereof 
the following new subsection: 
"(b) There is hereby authorized to be appropriated to the President 
for the fiscal year 1954 not to exceed $50,000,000 to be available, when-
ever the President determines that such action is essential for the 
purpose of this Act, in order to provide assistance, pursuant to the 
Post, p. 160. 
provisions of the Mutual Defense Assistance Act of 1949, as amended, 
in the area of the Near East and Africa. 
Such assistance may be 
furnished to any organization created pursuant to a regional defense 
arrangement in the area, to any nation in the general area partici-
pating in such an arrangement, or to any other nation in the general 
area which the President determines to be of direct importance to 
the defense of the area and whose increased ability to defend itself 
the President determines to be important to the security of the United 
Report to Con- States (auy such determination to be reported forthwith to the Com-
mittW^sr^ 
° "*' mittee on Foreign Relations of the Senate, the Committee on Foreign 
Affairs of the House of Representatives, and the Committees on Armed 
Services of the Senate and of the House of Representatives). No 
assistance shall be furnished under this subsection unless the re-
cipient nation has agreed (1) that the equipment, materials, or services 
provided 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, or in United Nations collective security arrangements and 
measures, and (2) that it will not undertake any act of aggression 
against any other nation." 
SEC. 705. AUTHORITY FOR ASSISTANCE TO KOREA.—The first sentence 
of section 302 (a) (relating to economic aid and technical assistance) 
22 use 1702. 
Q
-
f ^j^g Mutual Security Act of 1951, as amended, is amended by striking 
out " (but not including the Republic of Korea)". 
67 S T A T . ] 
PUBLIC LAW 118-JULY 16, 1953 
157 
SEC. 706. Title V (relating to organization and general provisions) 
of the Mutual Security Act of 1951, as amended, is further amended 
as follows: 
(a) 
PERSONNEL CEILING EXEMPTION FOR NEW MILITARY ASSISTANCE 
PROGRAMS.—Amend section 504 (d) (relating to reduction in person- 
22 use less. 
nel) to read as follows: 
"(d) (1) Ninety days after the enactment of the Mutual Security 
Act of 1952, the number of civilian employees who are United States 
^^ stat. 141. 
citizens, receiving compensation or allowances from the administra- note, 
tive 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 Department of State or the 
Department of Defense for carrying out programs the appropriations 
for which are authorized by this Act, and the military 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 1,1952, 
except for such personnel of the Department of Defense engaged in 
the manufacturing, repair, rehabilitation, packing, handling, crating, 
or delivery of materiel. 
"(2) One hundred twenty days after the enactment of the Mutual 
Security Act of 1953, 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 
Director for Mutual Security or the Mutual Security Agency or 
employed by or assigned to the Department of State or the Depart-
ment of Defense and other participating agencies for carrying out 
programs the appropriations for which are authorized by this Act 
shall be in the aggregate at least 10 per centum less than the number 
so employed or assigned to comparable positions on January 31, 1953, 
except for such personnel of the Department of Defense engaged in 
the manufacturing, repair, rehabilitation, packing, handling, crating, 
or delivery of materiel. 
"(3) After the Director has determined the reduction to be effected 
in each agency under paragraph (2), the determination as to which 
individual employee shall be retained shall be made by the head of 
the agency concerned. 
"(4) The Director for Mutual Security shall cause studies to be 
made from time to time for the purpose of determining whether 
further reductions in personnel are feasible and consistent with the 
accomplishment of the purposes of this Act. 
"(5) After July 1, 1953, the following categories of civilian 
employees and military personnel carrying out programs under the 
Mutual Defense Assistance Act of 1949, as amended, shall be in addi- 
^^*'' P- ^^O-
tion to the personnel ceiling established under paragraph (2) of this 
subsection: 
"(A) Civilian employees and military personnel carrying out 
such programs in the Associated States of Cambodia, Laos, and 
Vietnam, over and above the number so engaged before July 1, 
1953, 
"(B) Civilian employees and military personnel carrying out 
such programs for any countries in which no such programs were 
in operation on July 1,1953, 
"(C) Civilian employees and military personnel carrying out 
such programs for international organizations and headquarters 
established after July 1, 1953." 
(b) SPECIAL USE OF FUNDS.—Amend section 513 (b) (relating to 
22 use"/ew. 
special use of funds) to read as follows: 
27000 O - 53 - 13 
158 
PUBLIC LAW 118~JULY 16, 1953 
[67 S T A T . 
Congr e s s ional 
Committees. 
Notification. 
22 use 1671. 
"(B) Not more than $100,000,000 of the funds made available under 
this Act, of which not more than $20,000,000 may be allocated to any 
one country, may be used in any fiscal year by the President, to be 
expended, without regard to the requirements of this Act, or any other 
Act for which funds are authorized by this Act, in furtherance of 
the purposes of such Acts, when the President determines that such 
use is important to the security of the United States. The President 
shall notify the Committee on Foreign Relations of the Senate and 
the Committee on Foreign Affairs of the House of Representatives 
upon making any such determination." 
(c) GUARANTIES,—-Amend section 520 (relating to investment 
guaranties) to read as follows: 
a 
66 Stat. 146. 
2.2 use 1509. 
Post, p. 161. 
22 use 1662. 
22 use 1675. 
Post, p. 160. 
61 Stat. 103. 
22 u s e 1401-
1410. 
Post, p. 161. 
66 Stat. 144. 
22 use 1654. 
64 Stat. 204. 
22 use 1557note. 
22 use 1507. 
22 use 1672. 
GUARANTIES 
"SEC. 520. Funds realized from the sales of notes pursuant to section 
111 (c) (2) of the Economic Cooperation Act of 1948, as amended, 
shall be available for making guaranties of investments in accordance 
with the applicable provisions of sections 111 (b) (3) and 111 (c) (2) 
of the Economic Cooperation Act of 1948, as amended, in any country 
with which the United States has agreed to institute the guaranty 
program, notwithstanding the provisions of section 511 of this Act." 
(d) TERMINATION OF PROGRAM.—Amend section 530 (relating to 
the expiration of the Mutual Security Program) by striking out 
"twelve months" and "twelve-month" wherever appearing therein and 
inserting in lieu thereof "twenty-four months" and "twenty-four-
month", respectively, and by inserting before the period at the end 
of subsection (a) the following: ": Provided, That such part of the 
equipment, materials, and services referred to above as is to be trans-
ferred to recipient countries under the Mutual Defense Assistance 
Act of 1949, as amended, or the Act of May 22,1947, as amended, may 
be so transferred until June 30, 1957, and that part of the funds 
referred to above which is appropriated to carry out such Acts may 
be obligated for the purposes set forth above, and for liquidating 
operations under this proviso, until June 30, 1957: Provided, That 
guaranties authorized under section 111 (b) (3) of the Economic 
Cooperation Act of 1948, as amended, may be issued until June 30, 
1957, out of any funds remaining available for that purpose". 
(e) UNDERDEVELOPED AREAS.—Add after section 546 the following 
new section: 
a 
UNDERDEVELOPED AREAS 
"SEC. 547. Whenever funds are made available under this Act for 
assistance, other than military assistance, to any economically under-
developed area, such funds may be used under the applicable provisions 
of section 503 (b) (3) or the applicable provisions of the Act for Inter-
national Development. 
Where administrative arrangements, includ-
ing provisions relating to compensation and allowances of personnel, 
authorized under section 503 (b) (3), differ from those authorized 
by the Act for International Development, the Director may make use 
of arrangements authorized under either statute, in carrying out such 
programs, except that before extending the provisions of section 109 
(a) of the Economic Cooperation Act of 1948, as amended, to countries 
in which programs authorized under the Act for International Devel-
opment are being carried out, the Director will secure the approval of 
the Secretary of State." 
( f ) 
U S E OF LOCAL CURRENCY. 
(1) Strike out the next to the last sentence of section 521 (relating 
to administrative expenses). 
67 S T A T . ] 
PUBLIC LAW 118-JULY 16, 1953 
169 
(2) Add after section 547 the following new section: 
'UNITED STATES USE OF FOREIGN CURRENCY 
« T 
Report to C oti-
gress. 
"SEC. 548. (a) The several amounts otherwise authorized by this 
Act to be appropriated are authorized to be increased by amounts 
which shall not, in the aggregate, exceed $98,396,000. 
"(b) Amounts appropriated pursuant to any authorization con-
tained in this Act are authorized to be made available for purchase 
of foreign currencies (including foreign currencies or credits owed 
to or owned by the United States) : Provided^ That such currencies 
or credits are authorized to be made available for use, without reim-
bursement to the Treasury, for liquidation of obligations legally 
incurred against such currencies prior to July 1,1953." 
(^) NEAR EAST REFUGEES.—Add after section 548 the following new 
section: 
"NEAR EAST REFUGEES 
"SEC. 549. (a) In order to contribute to the peace and stability of 
the Near East in particular and of the world in general, the Director 
for Mutual Security shall, in consultation with the Secretary of State, 
make a survey of the refugee situation in the Near East and report the 
results of the survey to the Congress within one hundred fifty days 
after the Mutual Security Act of 1953 is enacted, together with recom-
mendations for seeking a solution. In the making of such report and 
recommendations, especial consideration shall be given to a program 
which would utilize the services and talents of these refugees to develop 
and expand the resources of the area, including its water resources. 
"(b) In carrying out his duties under this section, the Director for 
Mutual Security shall consult with the Committee on Foreign Relations 
of the Senate and the Committee on Foreign Affairs of the House of 
Representatives, and shall keep these committees constantly and fully 
informed of the action which he takes to carry out the provisions of 
this section." 
(h) USE OF SURPLUS AGRICULTURAL COMMODITIES.—Add after section 
549 the following new section: 
"USE OF SURPLUS AGRICULTURAL COMMODITIES 
"SEC. 550. (a) Not less than $100,000,000 and not more than 
$250,000,000 of the funds authorized to be appropriated under this Act, 
shall be used, directly or indirectly, to finance the purchase of surplus 
agricultural commodities, or products thereof, produced in the United 
States. 
"(b) The President is authorized to enter into agreements with 
Agreements, 
friendly countries for the sale and export of such surplus agricultural 
commodities under conditions negotiated by him with such countries 
and to accept in payment therefor local currency for the account of the 
United States. In negotiating agreements for the sale of such com-
modities, the President shall— 
"(1) take special precaution to safeguard against the substitu-
tion or displacement of usual marketings of the United States or 
friendly countries, and to assure to the maximum extent practi-
cable that sales prices of such commodities are consistent with 
maximum world market prices of like commodities of similar 
quality, and to obtain the recommendations of the Secretary of 
Agriculture in carrying out the provisions of this subsection; 
"(2) use private trade channels to the maximum extent practi-
cable ; 
160 
PUBLIC LAW 118-JULY 16, 1953 
l67 S T A T . 
"(3) give appropriate emphasis to underdeveloped and new 
market areas; 
"(4) obtain assurance that the purchasing countries will not 
resell or transship to other countries or use for other than domestic 
consumption commodities purchased under this program without 
specific approval by the President. 
IIUS^C^M' 
"(*^) Notwithstanding section 1415 of the Supplemental Appro-
priation Act, 1953, or any other provision of law, the President shall 
use the proceeds of such sales for the purpose of this Act, giving 
particular regard to the following purposes— 
"(1) for providing military assistance to countries or mutual 
defense organizations eligible to receive assistance under this Act; 
"(2) for purchase of goods or services in friendly countries; 
"(3) for loans, under applicable provisions of this Act, to 
increase production of goods or services, including strategic 
materials, needed in any country with which an agreement was 
negotiated, or in other friendly countries, 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; 
"(6) for purchasing materials for United States stockpiles. 
"(d) In carrying out the provisions of this section, the President 
shall take special precaution to safeguard against the displacement 
of foreign exchange earnings which would otherwise accrue to the 
United States or any friendly nations. 
"(e) The President is authorized to enter into such agreements 
with third countries receiving goods accruing from the proceeds of 
sales made pursuant to this section as he deems necessary to effectuate 
the purpose of this Act." 
SEC. 707. The Mutual Defense Assistance Act of 1949, as amended 
63 Stat. 714. 
(22 U. S. C. 1571-1604), is further amended as follows: 
(a) EXCESS EQUIPMENT.—Immediately before the period in the next 
22 use 1574. 
to last Sentence of section 403 (d) (relating to limitation on furnishing 
of excess equipment), insert a comma and the following: "and after 
June 30,1953, by an additional $200,000,000". 
(b) SALES OF MILITARY EQUIPMENT.—Strike out the word "The" 
22 u^c' ^5^6. 
where it appears at the beginning of section 408 (e) (1) (relating to 
sales of military equipment) and insert in lieu thereof the following: 
Ante, p. 158. 
"Notwithstanding the provisions of section 530 (a) of the Mutual 
Security Act of 1951, as amended, the". 
(c) DEPENDABLE UNDERTAKING PROCEDURE.—Amend the last sentence 
22 use 1580. 
(jf section 408 (e) (2) (relating to sales of military equipment) to 
read as follows: "Before a contract is entered into, or rehabilitation 
work is undertaken, such nation, or international military organization 
or headquarters, shall (A) provide the United States with a de-
pendable 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. 
67 S T A T . ] 
PUBLIC LAW 118-JULY 16, 1953 
161 
less the amounts which have been paid to the United States by such 
nations, shall at no time exceed $700,000,000." 
(d) LOANS OF EQUIPMENT.—Amend section 411 (d) (containing 
definitions) to read as follows: 
"(d) The term 'services' shall include any service, repair, train-
ing of personnel, or technical or other assistance or information 
necessary to effectuate the purposes of this Act, including loans 
of limited quantities of equipment for designated periods solely 
for test and study purposes." 
SEC. 708. The remaining provisions of the Economic Cooperation 
Act of 1948, as amended (22 U. S. C. 1503-1519), are further amended 
as follows: 
(a) TERM OF GUARANTIES.—Amend section 111 (b) (3) (relating to 
guaranties) by striking out "which guaranties shall terminate not 
later than fourteen years from the date of enactment of this Act", 
and by inserting in lieu thereof "which guaranties shall be limited 
to terms not exceeding twenty years from the date of issuance". 
(b) CouNTERPAKT LOANS.—Amend the last proviso of section 115 
(b) (6) (relating to counterpart funds) to read as follows: ''''And pro-
vided further^ That whenever funds from such special account are 
used by a country to make loans, all funds received in repayment of 
such loans prior to termination of assistance to such country shall 
be reused only for such purposes as shall have been agreed to between 
the country and the Government of the United States." 
(c) USE OF LOCAL CURRENCY.—Amend section 115 (h) by striking 
out "including" and inserting in lieu thereof the following: "and, 
without regard to section 1415 of the Supplemental Appropriations 
Act, 1953, for". 
SEC. 709. UNITED NATIONS TECHNICAL COOPERATION PROGRAMS.— 
Amend the last proviso in section 404 (b) of the Act for International 
Development by striking out the word "fiscal" and inserting in lieu 
thereof the word "calendar". 
SEC. 710. AMENDMENT AND REPEAL OF CERTAIN PROVISIONS.— 
(a) (1) Section 516 (a) of the Mutual Security Act of 1951, as 
amended, is amended to read as follows: 
"(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, in 
furtherance of the objectives of this Act, to encourage the efforts of 
other free countries in fostering private initiative and competition, in 
discouraging monopolistic practices, in improving the technical effi-
ciency of their industry, agriculture, and commerce, and in the 
strengthening of free labor unions; and to encourage American enter-
prise in contributing to the economic strength of other free countries 
through private investment abroad and the exchange of ideas and 
technical information on the matters covered by this subsection." 
(2) Section 516 (b) of such Act, as amended, is amended by strik-
ing out the words "To accomplish the purpose of clause (1) of sub-
section (a) of this section, under" and inserting in lieu thereof the 
word "Under". 
(b) Section 115 (k) of the Economic Cooperation Act of 1948, as 
amended, is repealed. Nothing in this subsection shall be construed 
to prevent the carrying out of any commitment or agreement entered 
into pursuant to such section 115 (k) prior to the date of enactment 
of this Act. 
Approved July 16, 1953. 
22 u s e 1583. 
'•Services." 
62 Stat. 137. 
22 u s e 1509. 
66 Stat. 150. 
22 u s e 1513. 
22 u s e 1513. 
66 Stat. 662. 
31 u s e 724. 
66 Stat. ISO. 
22 u s e 1557b. 
22 u s e 1667. 
Free enterprise. 
Encouragement. 
66 Stat. 146. 
22 u s e 1667. 
Repeal. 
66 Stat. 150. 
22 u s e 1513(k)