An Act making appropriations for the Department of Defense and related independent agency for the fiscal year ending June 30, 1955, and for other purposes
PL 83-458 (H.R.8873), enacted 06/30/1954

68 S T A T . ] 
Public Law 458 
PUBLIC LAW 45&-JUNE 30, 1954 
AN ACT 
337 
CHAPTER 432 
Making appropriations for the Department of Defense and related independent 
agency for the fiscal year ending June 30, 1955, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That the following 
sums are appropriated, out of any money in the Treasury not other-
Avise appropriated, for the fiscal year ending June 30, 1955, for mili-
tary functions administered by the Department of Defense, and for 
other purposes, namely: 
TITLE I 
NATIONAL SECUKITY TRAINING COMMISSION 
Salaries and expenses: For necessary expenses of the National 
Security Training Commission, including services as authorized by 
section 15 of the Act of August 2, 1946 (5 U. S. C. 55a), at rates for 
individuals not in excess of $50 per diem and contracts with temporary 
or part-time employees may be renewed annually; and expenses of 
attendance at meetings concerned with the purposes of this appropria-
tion ; $55,000. 
DEPARTMENT OF DEFENSE 
TITLE I I 
OFFICE OF THE SECRETARY OF DEFENSE 
SALARIES AND EXPENSES 
For expenses necessary for the Office of the Secretary of Defense, 
including hire of passenger motor vehicles; and not to exceed $60,000 
for emergency and extraordinary expenses, to be expended under 
the direction of the Secretary of Defense for such purposes as he deems 
proper, and his determination thereon shall be final and conclusive; 
$12,250,000. 
OFFICE OF PUBLIC INFORMATION 
For salaries and expenses necessary for the Office of Public In-
formation, $500,000. 
TITLE I I I 
INTERSERVICE ACTIVITIES 
CLAIMS 
For payment of claims by the Office of the Secretary of Defense, 
the Army (except as provided in appropriations for civil functions 
administered by the Department of the Army), Navy, Marine Corps, 
and Air Force, as authorized by law; claims (not to exceed $1,000 in 
any one case) for damages to or loss of private property incident to 
the operation of Army and Air National Guard camps of instruction, 
either during the stay of units of said organizations at such camps 
or while en route thereto or therefrom; claims, as authorized by law, 
for damage to property of railroads under training contracts; and 
repayment of amounts determined by the Secretary of the Army, the 
Secretary of the Navy, or the Secretary of the Air Force, or officers 
designated by them, to have been erroneously collected from military 
June 30, 1954 
[H. R. 8873] 
Department of 
Defense Appropri-
ation Act, 1955. 
60 Stat. 810. 
39777 O—55—pt. 1-
-24 
338 
PUBLIC LAW 458-JUNE 30, 1954 
[68 S T A T . 
Report 
gressional 
mittees* 
to Con-
C om-
67 Stat. 501. 
3 7 use 371 note. 
and civilian personnel of the Departments of the Army, Navy, and 
Air Force or from States, Territories, or the District of Columbia, or 
members of National Guard units thereof; $7,680,000. 
CONSTRUCTION or SHIPS, MILITARY SEA TRANSPORTATION SERVICE 
For expenses necessary for the construction, acquisition, or con-
version of vessels, including armament therefor, for the Military Sea 
Transportation Service; designs for such vessels to be constructed or 
converted in the future; and plant equipment, appliances, and 
machine tools, and installation thereof in public or private plants; 
$50,000,000, to remain available until expended and to be allocated to 
the Secretary of the Navy. 
CONTINGENCIES 
For emergencies and extraordinary expenses arising in the Depart-
ment of Defense, to be expended on the approval or authority of the 
Secretary of Defense and such expenses may be accounted for solely 
on his certificate that the expenditures were necessary for confidential 
military purposes, $40,000,000: Provided^ That a report of disburse-
ments under this item of appropriation shall be made quarterly to the 
Appropriations Committees of the Congress. 
EMERGENCY FUND 
• 
For transfer by the Secretary of Defense, with the approval of the 
Bureau of the Budget, to any appropriation for military functions 
under the Department of Defense available for research and develop-
ment, to be merged with and to be available for the same purposes, and 
for the same time period, as the appropriation to which transferred, 
$25,000,000. 
RESERVE TOOLS AND FACILITIES 
Amounts, not exceeding $100,000,000, made available under this 
head for the fiscal year 1954 but not transferred to other appropria-
tions during that year shall remain available for such transfer during 
the current fiscal year. 
RETIRED PAY 
r 
• 
For retired pay and retirement pay, as authorized by law, of mili-
tary personnel on the retired lists of the Army, Navy, Marine Corps, 
and the Air Force, including the reserve components thereof; retainer 
pay for personnel of the inactive Fleet Reserve, and payments under 
the Uniformed Services Contingency Option Act of 1953; $404,500,000. 
COURT OF MILITARY APPEALS 
For salaries and expenses necessary for the Court of Military 
Appeals, $320,000. 
TITLE IV 
DEPARTMENT OF T H E ARMY 
MILITARY PERSONNEL 
For pay, allowances, individual clothing, interest on deposits, and 
permanent change of station travel, for members of the Army on 
active duty (except those undergoing reserve training); expenses 
incident to movement of troop detachments, including rental of camp 
sites and procurement of utility and other services; expenses of appre-
68 S T A T . ] 
PUBLIC LAW 458-JUNE 30, 1954 
339 
hension and delivery of deserters, prisoners, and soldiers absent with-
out leave, including payment of rewards (not to exceed $25 in any 
one case), and costs of confinement of military prisoners in nonmili-
tary facilities; donations of not to exceed $25 to each prisoner upon 
each release from confinement in an Army prison (other than a 
disciplinary barracks) and to each person discharged for fraudulent 
enlistment; authorized issues of articles to prisoners, other than those 
in disciplinary barracks; subsistence of enlisted personnel, selective 
service registrants called for induction and applicants for enlistment 
while held under observation, and prisoners (except those at discipli-
nary barracks), or reimbursement therefor while such personnel are 
sick in hospitals; and subsistence of supernumeraries necessitated by 
emergent military circumstances; $4,150,479,000: Provided^ 
That 
section 212 of the Act of June 30,1932 (5 U. S. C 59a), shall not apply 
47 stat. 406. 
to retired military personnel on duty at the United States Soldiers' 
Home: Provided 
further, 
That the duties of the librarian at the 
United States Military Academy may be performed by a retired officer 
detailed on active duty. 
,. 
MAINTENANCE AND OPERATIONS 
For expenses, not otherwise provided for, necessary for the mainte-
nance and operation of the Army, including administration and rent-
als at the seat of government; medical and dental care of personnel 
entitled thereto by law or regulation (including charges of private 
facilities for care of military personnel on duty or leave, except elective 
private treatment), and other measures necessary to protect the health 
of the Army; disposition of remains, including those of all Army 
personnel who die while on active duty; chaplains' activities; awards 
and medals; welfare and recreation; information and educational 
services for the Armed Forces; recruiting expenses; subsistence of 
prisoners at disciplinary barracks, and of civilian employees as au-
thorized by law; expenses of apprehension and delivery of prisoners 
escaped from disciplinary barracks, including payment of rewards 
not exceeding $25 in any one case, and expenses of confinement of such 
prisoners in nonmilitary facilities; donations of not to exceed $25 to 
each prisoner upon each release from confinement in a disciplinary 
barracks; military courts, boards, and commissions; authorized issues 
of articles for use of ai^plicants for enlistment and persons in military 
custody; civilian clothing, not to exceed $30 in cost, to be issued each 
person upon each release from confinement in an Army prison and to 
each soldier discharged otherwise than honorably, or sentenced by a 
civil court to confinement in a civil prison, or interned or discharged as 
an alien enemy; transportation services; communications services, 
including construction of communication systems; maps and similar 
data for military purposes; military surveys and engineering plan-
ning; alteration, extension, and repair of structures and property; 
acquisition of lands (not exceeding $5,000 for any one parcel), ease-
ments, rights-of-way, and similar interests in land, and, in adminis-
tering the provisions of 43 U. S. C. 315q, rentals may be paid in 
^^ ®
*
®
*
* ®
^
^
* 
advance; utility services for buildings erected at private cost, as 
authorized by law (10 U. S. C. 1346), and buildings on military 
32 stat. 282. 
reservations authorized bv Army regulations to be used for a similar 
purpose; purchase of ambulances; hire of passenger motor vehicles; 
tuition and fees incident to training of military personnel at civilian 
institutions; field exercises and maneuvers, including payments in ad-
vance for rentals or options to rent land; expenses for the Reserve 
ROTC. 
Officers' Training Corps and other units at educational institutions, 
as authorized by law; exchange fees, and losses in the accounts of 
340 
PUBLIC LAW 458-JUNE 30, 1954 
[68 S T A T . 
disbursing officers or agents in accordance with law; expenses of inter-
American cooperation, as authorized for the Navy by law (5 U. S. C. 
60 Stat. 858. 
^21t) for Latin-Auierican cooperation; not to exceed $4,396,400 for 
emergencies and extraordinary expenses, to be expended on the ap-
E
roval or authority of the Secretary of the Army, and payments may 
e made on his certificate of necessity for confidential military pur-
poses, and his determination shall be final and conclusive upon the 
accounting officers of the Government; $2,795,722,986. 
MILITARY CoNSTRUcrriON, ARMY RESERVE FORCES 
For construction, acquisition, expansion, rehabilitation and conver-
sion of facilities for the training and administration of the reserve 
components, including contributions therefor, as authorized by the 
so use 881 note. Act of September 11, 1950 (64 Stat. 829), without regard to sections 
use 2^9^ 267^' ^° ^^^^ ^^^ 3734, Revised Statutes, as amended, and land and interests 
therein may be acquired and construction prosecuted thereon prior to 
the approval of title by the Attorney General as required by section 
33 use 733. 
355 of the Revised Statutes, as amended; and hire of passenger motor 
vehicles; $15,000,000, to remain available until expended, of which 
$1,000,000 shall be available for the construction of buildings and 
facilities other than armories without regard to the 75 per centum 
restriction on contributions contained in section 4 (d) of the Act of, 
T°r?n s^fer of September 11, 1950: Provided, That not to exceed $18,000,000 may be 
funds. 
transferred to this appropriation from the appropriation "Procure-
ment and Production, Army" for National Guard armory and non-
armory construction in accordance with the Act of September 11,1950, 
when such transfers are determined by the Secretary of Defense to 
be in the national interest: Provided further, 
That such portion of 
the amount so transferred as may be applied to the construction of 
buildings and facilities other than armories shall be without regard 
to the 75 per centum restriction on contributions contained in section 
4 (d) of the Act of September 11, 1950. 
RESERVE PERSONNEL REQUIREMENTS 
For pay, allowances, clothing, subsistence, transportation, travel 
and related expenses, as authorized by law, for personnel of the Army 
Reserve while on active duty undergoing Reserve training or while 
performing drills or equivalent duty, and for members of the Reserve 
Officers' Training Corps; subsistence for members of the Army 
Reserve for drills of eight or more hours duration in any one calendar 
day; $90,000,000. 
ARMY NATIONAL GUARD 
For pay, allowances, clothing, subsistence, transportation, and 
travel, as authorized by law, for personnel of the Army National 
Guard while undergoing training or while performing drills or equiv-
alent duties; expenses of training, organizing and administering the 
Army National Guard, including maintenance, operation, 
and 
alterations to structures and facilities; hire of passenger motor vehi-
cles ; personal services in the National Guard Bureau and services of 
personnel of the National Guard employed as civilians without regard 
to their military rank, and the number of caretakers authorized to be 
54 Stat. 1134. 
employed under provisions of law (32 U. S. C. 42) may be such as is 
deemed necessary by the Secretary of the Army; subsistence for officers 
attending drills of eight or more hours duration in any one calendar 
day; travel expenses (other than mileage), as authorized by law for 
68 S T A T . ] 
PUBLIC LAW 4 5 8 - J U N E 30, 1954 
341 
Army personnel on active duty, for Army National Guard division, 
regimental, and battalion commanders while inspecting units in com-
pliance with National Guard regulations when specifically authorized 
by the Chief, National Guard Bureau; supplying and equipping the 
Army National Guard of the several States, Territories, and the Dis-
trict of Columbia, as authorized by law; and expenses of repair, modi-
fication, maintenance, and issue of supplies and equipment (including 
aircraft) ; $218,530,000: Provided^ That in addition, the Secretary of 
the Army may transfer not to exceed $25,000,000 to this appropriation 
from the appropriation "Procurement and Production, Army": Pro-
vided further, That obligations may be incurred under this appro-
priation for installation, maintenance, and operation of facilities for 
antiaircraft defense without regard to section 67 of the National 
W ^\^^ ^2x', 22, 
Defense Act. 
49. 
RESEARCH AND DEVELOPMENT 
For expenses necessary for basic and applied scientific research and 
development, including maintenance, rehabilitation, lease and opera-
tion of facilities and equipment, as authorized by law, $345,000,000, 
to remain available until expended. 
NATIONAL BOARD FOR THE PROMOTION or RIFLE PRACTICE, ARMY 
For necessary expenses of construction, equipment and maintenance 
of rifle ranges, the instruction of citizens in marksmanship, and pro-
motion of rifle practice, in accordance with law, including travel of 
rifle teams, military personnel, and individuals attending regional, 
national, and international competitions, and not to exceed $18,000 
for incidental expenses of the National Board, $100,000: Provided. 
Travel expenses. 
That travel expenses of civilian members of the National Board shall 
be paid in accordance with the Standardized Government Travel 
Regulations, as amended. 
ALASKA COMMUNICATION SYSTEM 
OPERATION AND MAINTENANCE 
For expenses necessary for the operation, maintenance, and 
improvement of the Alaska Communication System, including pur-
chase (not to exceed two for replacement only) and hire of passenger 
motor vehicles, $4,235,000, to remain available until the close of the 
fiscal year 1956, and, in addition, not to exceed 15 per centum of the 
current fiscal year receipts of the Alaska Communication System may 
be merged with and used for the purposes of this appropriation. 
REDUCTIONS IN APPROPRIATIONS 
PROCUREMENT AND PRODUCTION 
The sum of $500,000,000 of funds heretofore appropriated under 
this head is hereby rescinded, such sum to be covered into the Treasury 
immediately upon approval of this Act. 
ARMY STOCK FUND 
The amount available in the Army Stock Fund is hereby reduced 
by $300,000,000, such sum to be covered into the Treasury immediately 
upon approval of this Act. 
342 
P U B U C LAW 458-JUNE 30, 1954 
[68 S T A T , 
TITLE V 
DEPAETMENT O F T H E NAVY 
MILITARY PERSONNEL, NAVY 
For pay, allowances, subsistence, interest on deposits, gratuities, 
clothing, permanent change of station travel (including expenses of 
temporary duty between permanent duty stations), training duty 
travel of midshipmen paid hereunder, and transportation of depend-
ents, household effects, and privately owned automobiles, as authorized 
by law, for regular and reserve personnel on active duty (except those 
on active duty while undergoing reserve training), midshipmen at 
the Naval Academy, and aviation cadets, $2,417,000,000. 
MILITARY PERSONNEL, NAVAL RESERVE 
For pay, allowances, clothing, subsistence, gratuities, and travel, as 
authorized by law, for personnel of the Naval Reserve on active duty 
while undergoing reserve training, or while performing drills or 
equivalent duty, regular and contract enrollees in the Naval Reserve 
Officers' Training Corps, and retainer pay authorized by the Act of 
60 Stat. 1060. 
August 13,1946 (34 U. S. C. 1020h), $78,100,000. 
NAVY PERSONNEL, GENERAL EXPENSES 
For expenses necessary for general training, education and admin-
istration of regular and reserve personnel, including tuition, cash book 
allowances of not to exceed $50 for each Naval Aviation College pro-
gram student, and other costs incurred at civilian schools, general 
training aids and devices, procurement of military personnel, and 
authorized annuity premiums and retirement benefits for civilian 
members of teaching staffs; maintenance and operation of Navy 
training and personnel facilities, including the Naval Academy, Naval 
Postgraduate School, Naval War College, Naval Home, Navy train-
ing schools and facilities, disciplinary barracks, and retraining com-
mands ; rent; hire of motor vehicles; not to exceed $30 per person for 
civilian clothing, including an overcoat when necessary, for enlisted 
personnel discharged otherwise than honorably; welfare and recrea-
tion ; medals and other awards; and departmental salaries; $75,030,000. 
MILITARY PERSONNEL, MARINE CORPS 
For pay, allowances, subsistence, interest on deposits, gratuities, 
clothing, permanent change of station travel (including expenses of 
temporary duty between permanent duty stations), and transporta-
tion of dependents, household effects, and privately owned automo-
biles, as authorized by law, for regular and reserve personnel on 
active duty (except those on active duty while undergoing reserve 
training), $612,180,600. 
MILITARY PERSONNEL, MARINE CORPS RESERVE 
For pay, allowances, clothing, subsistence, gratuities, and travel, as 
authorized by law, for personnel of the Marine Corps Reserve and the 
Marine Corps platoon leaders class on active duty while undergoing 
reserve training, or while performing drills or equivalent duty, 
$16,750,000. 
68 S T A T . ] 
PUBLIC LAW 45&-JUNE 30, 1954 
343 
MARINE CORPS TROOPS AND FACILITIES 
For necessary expenses of troops and facilities of the Marine Corps 
not otherwise provided for, including maintenance and operation of 
equipment and facilities, and procurement of military personnel; 
training and education of regular and reserve personnel, including 
tuition and other costs incurred at civilian schools; welfare and recrea-
tion ; not to exceed $30 per person for civilian clothing, including an 
overcoat when necessary, for enlisted personnel discharged otherwise 
than honorably; procurement and manufacture of military supplies, 
equipment and clothing; hire of passenger motor vehicles; transporta-
tion of things; industrial mobilization; rent; medals, awards, emblems 
and other insignia; care of the dead; and departmental salaries; 
$167,994,500. 
MARINE CORPS PROCUREMENT 
For expenses necessary for the procurement, manufacture, and 
modification of armament, ammunition, military equipment and ve-
hicles for the Marine Corps, including purchase of passenger motor 
vehicles; $129,974,000, to remain available until expended. 
AIRCRAFT AND FACILITIES 
For expenses necessary for maintenance, operation, and modifica-
tion of aircraft; maintenance, operation, and lease of air stations and 
facilities, testing laboratories, fleet and other aviation activities; pro-
curement of services, supplies, special clothing, tools, materials, and 
equipment, including rescue boats; industrial mobilization; aero-
logical services, supplies, and equipment for the Navy and Marine 
Corps; and departmental salaries; $780,895,500. 
, 
AIRCRAFT AND RELATED PROCUREMENT 
For construction, procurement, and modernization of aircraft and 
equipment, including ordnance, spare parts, and accessories therefor; 
expansion of public and not to exceed $10,000,000 for expansion of 
private plants, including the land necessary therefor, without regard 
to section 3734, Revised Statutes, as amended, and such land, and 
4ouse 259,267. 
interests therein, may be acquired and construction prosecuted there-
on prior to approval of title by the Attorney General as required by 
section 355, Revised Statutes, as amended; procurement and installa- ^J^^l "^^ ^^^ ^^ 
tion of equipment in public or private plants; and departmental sal-
aries necessary for the purposes of this appropriation, to remain 
available until expended; $l,d7^,5Q8,000: Provided, That $700,000 of 
the foregoing amount shall be transferred to the appropriation "Sal-
aries and expenses. Weather Bureau, Department of Commerce", fiscal 
year 1955. 
SHIPS AND FACILITIES 
For expenses necessary for design, maintenance, operation, and al-
teration of vessels; maintenance and operation of facilities; procure-
ment of plant equipment, appliances, and machine tools, and installa-
tion thereof in public or private plants; procurement of equipment, 
supplies, special clothing and services; installation, maintenance, and 
removal of ships' ordnance; lease of facilities and docks; charter and 
Ivire of vessels; relief of vessels in distress; maritime salvage services; 
industrial mobilization; and departmental salaries; $818,681,000, of 
which $15,675,000 shall be transferred to the appropriation "Coast 
Guard Operating Expenses, 1955" for the operation of ocean stations. 
344 
PUBLIC LAW 458-JUNE 30, 1954 
[68 STAT. 
CONSTRUCTION OF SHIPS 
For an additional amount for "Construction of Ships", $57,600,000, 
to remain available until expended: Provided, That the total of obli-
gations incurred under this head for construction, conversion, or re-
placement, approved after July 17, 1947, shall not exceed $1,251,-
861,000. 
SHIPBUILDING AND CONVERSION 
For expenses necessary for the construction, acquisition, or con-
version of vessels as authorized by law, including armor and arma-
ment therefor, plant equipment, appliances, and machine tools, and 
installation thereof in public or private plants; designs for vessels 
to be constructed or converted in the future; and departmental salaries 
necessary for the purposes of this appropriation; $1,042,400,000, to 
remain available until expended: Provided., That the total of obliga-
tions incurred under the heads "Shipbuilding and conversion" and 
"Ordnance for shipbuilding and conversion", including those incurred 
against reimbursements credited to these appropriations pursuant to 
section 403 (b) of the Mutual Defense Assistance Act of 1949, as 
63 Stat. 717. 
amended (22 U. S. C. 1574 (b)), shall not exceed $4,370,504,000. 
ORDNANCE AND FACILITIES 
For expenses necessary for the production and procurement of Navy 
ordnance and ammunition (except ordnance for new aircraft, new 
ships, and ships authorized for conversion) ; alteration, preservation, 
and handling of ordnance and ammunition; maintenance of ordnance 
(except installation, maintenance, and removal of ships' ordnance, 
and line maintenance of ordnance installed in aircraft) ; maintenance 
and operation of ordnance facilities; procurement of equipment, sup-
plies, special clothing and services; procurement of plant equipment, 
appliances, and machine tools, and installation thereof in naval or 
private plants; lease of facilities; industrial mobilization; and de-
partmental salaries; $457,436,000. 
ORDNANCE FOR NEW CONSTRUCTION (LIQUIDATION OF CONTRACT 
AUTHORIZATION ) 
For liquidation of obligations incurred pursuant to authority 
heretofore granted under this head, $34,000,000, to remain available 
until expended: Provided, That this amount may be disbursed through 
the appropriation "Ordnance for New Construction, Navy". 
MEDICAL CARE 
For expenses necessary for maintenance and operation of naval 
hospitals, medical centers, clinics, schools, and other medical activi-
ties ; technical medical support of the supply system and other naval 
activities; procurement of ambulances, medical and dental supplies, 
equipment and services; rent; instruction of medical personnel in 
naval hospitals, naval schools, and civilian schools; industrial mobili-
zation ; care of the dead; and departmental salaries; $63,600,000. 
CrviL ENGINEERING 
For expenses necessary for maintenance and operation of district 
public works offices, public works centers, construction battalion cen-
ters, defense housing projects, other civil engineering facilities, and 
shore activities not otherwise provided for; procurement of services, 
supplies, and equipment for the foregoing activities; purchase and 
68 S T A T . ] 
PUBLIC LAW 458-JUNE 30, 1954 
345 
hire of passenger motor vehicles; engineering services; industrial 
mobilization; and departmental salaries; $104,294,000. 
MILITARY CONSTRUCTION, NAVAL RESERVE FORCES 
For construction, acquisition, expansion, rehabilitation and conver-
sion of facilities for the training and administration of the reserve 
components of the Navy and Marine Corps, including contributions 
therefor, as authorized by the Act of September 11, 1950 (64 Stat. 
829), without regard to section 3734, Revised Statutes, as amended, and 
land and interests therein may be acquired and construction prose-
cuted thereon prior to the approval of title by the Attorney General as 
required by section 355, Revised Statutes, as amended; $15,000,000, 
to remain available until expended. 
FACILITIES 
For expenses necessary for acquisition, construction, and installa-
tion of production facilities and equipment, and test facilities and 
equipment (other than those for research and develpment), including 
the land necessary therefor, without regard to section 3734, Revised 
Statutes, as amended, and such land, and interests therein, may be 
acquired and construction prosecuted thereon prior to the approval of 
title by the Attorney General as required by section 355, Revised 
Statutes, as amended, such amounts as may be determined by the Sec-
retary of the Navy, and approved by the Secretary of Defense and the 
Bureau of the Budget, and said amounts shall be derived by transfer 
from any appropriations available to the Department of the Navy, 
during the current fiscal year for procurement of equipment for in-
stallation or use in private plants: Provided, That the total amount so 
transferred shall not exceed $25,000,000. 
RESEARCH AND DEVELOPMENT 
For expenses necessary for basic and applied scientific research and 
development, including maintenance, rehabilitation, lease, and opera-
tion of facilities and equipment, as authorized by law, $419,874,900, 
to remain available until expended: Provided, Tnat the unexpended 
balances appropriated for research and development under the heads 
"Naval Personnel, General Expenses", "Marine Corps, Troops and 
Facilities", "Aircraft and Facilities", "Ships and Facilities", "Ord-
nance and Facilities", "Medical Care", "Civil Engineering", "Service-
wide Supply and Finance, Navy" for the fiscal years 1953 and 1954 
and the unexpended balance of appropriations under the head "Re-
search" are hereby transferred to and merged with this appropria-
tion, in such amounts as may be recommended by the Secretary of 
Defense and approved by the Director oi the Bureau of the Budget, 
except that the total unobligated portions of such balances so trans-
ferred and merged shall not exceed $8,703,100. 
SERVICE-WIDE SUPPLY AND FINANCE 
For expenses necessary for maintenance and operation of serv-
ice-wide supply and finance activities, including supply depots and 
centers, area provision supply and purchasing offices, supply demand 
control points, fleet fueling facilities, overseas air cargo terminals, 
regional accounting and disbursing offices, the material catalog of-
fice, and other service-wide supply and finance facilities, as desig-
nated by the Secretary; procurement of supplies, services, special 
clothing, and equipment; rent, intra-Navy transportation of things; 
transportation of household effects of civilian employees; industrial 
50 u s e 881 note. 
40 u s e 259, 267. 
33 use 
note* 
733 and 
40 u s e 259, 267. 
33 use 
note. 
733 and 
T r a n s 
funds* 
fer of 
346 
PUBLIC LAW 458-JUNE 30, 1954 
[68 S T A T . 
mobilization; losses in exchange and in the accounts of disbursing 
officers, as authorized by law; and departmental salaries; $340,300,000. 
SERVICE-WIDE OPERATIONS 
For expenses necessary for maintenance and operation of the Naval 
Observatory, the Hydrographic Oflfice, Service-wide Communications, 
Naval Records Centers, Naval District Headquarters (except training 
officers). River Commands, the cost inspection service, and other serv-
ice-wide operations and functions not otherwise provided for; pro-
curement of supplies, services and equipment for activities financed 
hereunder; Latin-American cooperation; not to exceed $8,405,000 for 
emergencies and extraordinary expenses as authorized by section 6 
60 Stat. 853. 
of ^^^ ^^t of August 2, 1946 (5 U. S. C. 419c), to be expended on the 
approval and authority of the Secretary, and his determination shall 
be final and conclusive upon the accounting officers of the Government; 
and departmental salaries; $104,570,000, 
NAVAL PETROLEUM RESERVES 
For expenses necessary for exploration, prospecting, conservation, 
- .; 
development, use, and operation of the naval petroleum reserves, as 
authorized by law, $3,575,000. 
REDUCTIONS IN APPROPRIATIONS 
NAVY STOCK 
F U N D 
The amount available in the Navy Stock Fund is hereby reduced 
by $200,000,000, such sum to be covered into the Treasury immediately 
upon approval of this Act. 
MARINE CORPS STOCK FUND 
The amount available in the Marine Corps Stock Fund is hereby 
reduced by $25,000,000, such sum to be covered into the Treasury 
immediately upon approval of this Act. 
TITLE VI 
DEPARTMENT OF T H E AIR FORCE 
AIRCRAFT AND RELATED PROCUREMENT 
For construction, procurement, and modification of aircraft and 
equipment, armor and armament, spare parts and accessories therefor; 
specialized equipment; expansion of public and private plants. Gov-
ernment-owned equipment and installation thereof in such plants, 
erection of structures, and acquisition of land without regard to 
10 use 1339. 
section 1136, Revised Statutes, as amended, for the foregoing and 
other purposes, and such land, and interests therein, may be acquired 
and construction prosecuted thereon prior to the approval of title by 
note ^^^ ^^^ ^'^ ^^^ Attorney General as required by section 355, Revised Statutes, as 
amended; industrial mobilization, including maintenance of reserve 
plants and equipment and procurement planning; and other expenses 
necessary for the foregoing purposes, including rents and transporta-
tion of things; $2,760,000,000, to remain available until expended. 
68 S T A T . ] 
PUBLIC LAW 45&-JUNE 30, 1954 
347 
MAJOR PKOCUKEMENT OTHER THAN AIRCRAFT 
For procurement of supplies, materials, and equipment, and spare 
parts therefor, not otherwise provided for; electronic and communi-
cation equipment; and the purchase of passenger motor vehicles; 
$674,364,000, to remain available until expended. 
KESEARCH AND DEVELOPMENT 
For expenses necessary for basic and applied scientific research and 
development, including maintenance, rehabilitation, lease and opera-
tion of, facilities and equipment, as authorized by law, $418,070,000, 
to remain available until expended. 
MAINTENANCE AND OPERATIONS 
For expenses necessary for the maintenance, operation, and adminis-
tration of the activities of the Air Force, including the Air Force 
Reserve and the Air Reserve Officers' Training Corps; maintenance, 
operation, and modification of aircraft; transportation of things; 
rents at the seat of government and elsewhere, and in administering 
the provisions of 43 U. S. C. 315q payments of rents may be made in 
^^ ^
*
®
*
* ^54. 
advance; repair of facilities; field printing plants; procurement of 
ambulances; hire of passenger motor vehicles; recruiting advertising 
expenses; training and instruction of military personnel of the Air 
Force, including tuition and related expenses; pay, allowances, and 
travel expenses of contract surgeons; utility services for buildings 
erected at private cost as authorized by law (10 U. S. C. 1346), and 
32 stat. 282. 
buildings on military reservations authorized by Air Force regula-
tions to be used for welfare and recreational purposes; rental of 
land or purchase of options to rent land without reference to section 
3648, Revised Statutes, as amended, use or repair of private property, 
^i use 529. 
and other necessary expenses of combat maneuvers; organizational 
clothing and equipage; civilian clothing not to exceed $30 in cost for 
each person upon each release from a military prison, each enlisted 
man discharged other than honorably, each enlisted man sentenced 
by a civil court to confinement in a civil prison, and each enlisted man 
interned, or discharged without internment as an alien enemy; author-
ized issues of articles for use of applicants for enlistment and persons 
in military custody; payment of exchange fees and exchange losses 
incurred by Air Force disbursing officers or their agents; losses in the 
accounts of Air Force disbursing officers as authorized by law (31 
U. S. C. 95a; 50 U. S. C. 1705-1707); burial of the dead as authorized 
f«o^*f,Vc°' ^^^' 
by law (10 U. S. C 916-916d; 5 U. S. C. 103a), including remains of nos-noy. 
^''' 
personnel of the Air Force of the United States who die while on active stft. 74^3.' ^^*' ** 
duty, travel allowances of attendants accompanying remains, and 
acquisition by lease or otherwise of temporary burial sites; chaplain 
and other welfare and morale supplies and equipment; conduct of 
schoolrooms, service clubs, chapels, and other instructional, entertain-
ment, and welfare expenses for enlisted men and patients not other-
wise provided for; awards and decorations; expenses of courts, boards 
and commissions; expenses for inter-American cooperation as author-
ized for the Navy by the Act of August 2, 1946 (5 U. S. C. 421f), for 
^o stat. ssa. 
Latin-American cooperation; and special services by contract or other-
wise; $3,502,792,000. 
348 
PUBLIC LAW 458-JUNE 30, 1954 
[68 STAT. 
MiLiTART PERSONNEL 
For pay, allowances, clothing, subsistence, transportation, interest 
on deposits of enlisted personnel, and travel in kind for cadets and 
permanent change of station travel for all other personnel of the Air 
Force of the United States on active duty including duty under sec-
39 Stat. 167. 
^ion 5, National Defense Act, as amended, or section 252 of the Armed 
6? ^a?. 496. 
Forces Reserve Act of 1952 (50 U. S. C. 1003) (other than personnel 
of the reserve components, including the Air National Guard, on 
active duty while undergoing reserve training), including commuta-
tion of quarters, subsistence supplies for issue as rations to enlisted 
personnel, and clothing allowances, as authorized b^^ law; and, in con-
nection with personnel paid from this appropriation, for rental of 
camp sites and local procurement of utility services and other neces-
sary expenses incident to individual or troop movements (including 
packing and unpacking and transportation of organizational equip-
ment) ; ice, meals for recruiting parties, monetary allowances for 
liquid coffee for troops when supplied cooked or travel rations, and 
commutation of rations, as authorized by law, to enlisted personnel, 
including those sick in hospitals; transportation, as authorized by law, 
of dependents, baggage, and household effects of personnel paid from 
this appropriation; rations for applicants for enlistment, prisoners 
of war, and general prisoners; subsistence supplies for resale, as 
authorized by law; commutation of rations, as authorized by regula-
tions, to applicants for enlistment, and general prisoners, while sick 
in hospitals; subsistence of supernumeraries necessitated by emergent 
military circumstances; expenses of apprehension and delivery of 
deserters, prisoners, and members of the Air Force absent without 
leave, including payment of rewards (not to exceed $25 in any one 
case); confinement of military prisoners in nonmilitary facilities; and 
donations of not to exceed $25 to each civilian prisoner upon each 
release from a military prison, to each enlisted man discharged 
otherwise than honorably upon each release from confinement under 
court-martial sentence, and to each person discharged for fraudulent 
enlistment; $3,356,704,000. 
RESERVE PERSONNEL 
For pay, allowances, clothing, subsistence, and travel for personnel 
of the Air Force Reserve and the Air Reserve Officers' Training Corps, 
while on active duty undergoing reserve training or while performing 
drills or equivalent duty, as authorized by law; and the procurement 
and issue of uniforms to institutions necessary for the training of the 
Air Reserve Officers' Training Corps, as authorized by 
law; 
$28,000,000: Provided^ That in addition, the Secretary of the Air 
Force may transfer not to exceed $5,000,000 to this appropriation from 
any appropriation available to the Department of the Air Force which 
is limited for obligation to fiscal year 1955. 
AIR NATIONAL GUARD 
For pay, allowances, clothing, subsistence, transportation (including 
mileage, actual and necessary expenses, or per diem in lieu thereof), 
medical and hospital treatment and related expenses, for members of 
the Air National Guard while undergoing Reserve training or while 
performing drills or equivalent duty, as authorized by law; travel 
expenses (other than mileage) on the same basis as authorized by law 
for Air National Guard personnel on active Federal duty, of Air 
National Guard commanders while inspecting units in compliance with 
National Guard regulations when specifically authorized by the Chief, 
68 S T A T . ] 
PUBLIC LAW 458-JUNE 30, 1954 
349 
National Guard Bureau; establishment, maintenance, operation, re-
pair, and other necessary expenses of facilities for the training and 
administration of the Air National Guard, including construction of 
facilities, and additions, extensions, alterations, improvements, and 
rehabilitation of existing facilities, as authorized by the Act of Sep-
tember 11,1950 (Public Law 783) ; maintenance, operation, and modi- 
|^ use ssi^note. 
fication of aircraft; transportation of things; purchase and hire of 
Si4>piies, etc. 
passenger motor vehicles; procurement and issue to the Air National 
Guard of the several States, Territories, and the District of Columbia 
of supplies, materials, and equipment, as authorized by law; and 
expenses incident to the maintenance and use of supplies, materials, 
and equipment, including such as may be furnished from stocks under 
the control of agencies of the Department of Defense; $160,000,000: 
Pro'vided^ That in addition, the Secretary of the Air Force may trans-
fer not to exceed $9,000,000 to this appropriation from any appropria-
tion available to the Department of the Air Force which is limited 
for obligation to fiscal year 1955: Provided further^ That the number 
of caretakers authorized to be employed under the provisions of law 
(32 U. S. C. 42) may be such as is deemed necessary by the Secretary stat^. Tf34.^°^' ^* 
of the Air Force. 
CONTINGENCIES 
For emergencies and military expenses, to be expended on the author-
ity or approval of the Secretary of the Air Force, and such expenses 
may be accounted for solely on his certificate, $28,000,000. 
EEDUCTION IN APPROPRIATION 
AIR FORCE STOCK FUND 
The amount available in the Air Force Stock Fund is hereby 
reduced by $25,000,000, such sum to be covered into the Treasury 
immediately upon approval of this Act. 
TITLE VII 
GENEEAL PKOVISIONS 
SEC. 701. During the current fiscal year, the Secretary of Defense 
Experts or con-
and the Secretaries of the Air Force, Army, and Navy, respectively, 
if they should deem it advantageous to the national defense, and if in 
their opinions, the existing facilities of the Department of Defense 
are inadequate, are authorized to procure services in accordance with 
section 15 of the Act of August 2, 1946 (5 U. S. C. 55a), but at rates 
«« stat. sio. 
for individuals not in excess of $50 per day, and to pay in connection 
therewith travel expenses of individuals, including actual transporta-
tion and per diem in lieu of subsistence while traveling from their 
homes or places of business to official duty station and return as may 
be authorized by law: Provided^ That such contracts may be renewed 
annually. 
SEC. 702. Section 3648, Revised Statutes, shall not apply in the case pubHc''mone''s! °* 
of payments made from appropriations contained in this Act, (1) to 
3i use 529.' 
payments made in compliance with the laws of foreign countries or 
their ministerial regulations, (2) to payments for rent in such coun-
tries for such periods as may be necessary to accord with local custom, 
or (3) to payments made for tuition. 
SEC. 703. During the current fiscal year, provisions of law pro- 
Noncitizens. 
hibiting the payment of compensation to, or employment of, any per-
son not a citizen of the United States shall not apply to personnel of 
the Department of Defense. 
350 
PUBLIC LAW 458-JUNE 30, 1954 
[68 ST A T . 
D e t a i l e d 
per-
sonnel. 
Availabil it y of 
appropriations. 
T u i t i o n 
p a y -
m e n t s , e t c . , re-
striction. 
63 Stat. 954. 
5 u s e 1071 note. 
Prisoners of war, 
etc. 
M i nor c ons truc-
tion. 
Cost limitation. 
Emergency 
ex-
penses. 
Family quarters. 
SEC. 704. Such military and naval personnel as may be detailed for 
duty with agencies not a part of the Department of Defense on a 
reimbursement basis may be employed in addition to the numbers 
otherwise authorized and appropriated for. 
SEC. 705. Appropriations contained in this Act shall be available 
for insurance of official motor vehicles in foreign countries, when 
required by laws of such countries; payments in advance of expenses 
determined by the investigating officer to be necessary and in accord 
with local custom for conducting investigations in foreign countries 
incident to matters relating to tne activities of the department con-
cerned ; reimbursement of General Services Administration for secur-
ity guard services for protection of confidential files; and all necessary 
expenses, at the seat of government of the United States of America 
or elsewhere, in connection with (1) instruction and training, includ-
ing tuition, specifically approved by the Secretary of the Department 
concerned and not otherwise provided for, of civilian employees, and 
(2) communication and other services and supplies as may be neces-
sary to carry out the purposes of this Act: Provided. That no appro-
priation contained in this Act, and no funds available from prior 
appropriations to component departments and agencies of the Depart-
ment of Defense, shall be used to pay tuition or to make other pay-
ments to educational institutions in connection with the instruction or 
training of file clerks, stenographers, and typists receiving, or pros-
pective file clerks, stenographers, and typists who will receive com-
pensation at a rate below the minimum rate of pay for positions 
allocated to grade GS-5 under the Classification Act of 1949, as 
amended. 
SEC. 706. Any appropriation available to the Air Force, Army, or 
the Navy may, vmder such regulations as the Secretary concerned may 
prescribe, be used for expenses incident to the maintenance, pay, and 
allowances of prisoners of war, other persons in Air Force, Army, or 
Navy custody whose status is determined by the Secretary concerned 
to be similar to prisoners of war, and persons detained in such custody 
pursuant to Presidential proclamation. 
SEC. 707. Appropriations available to the Department of Defense 
for the current fiscal year for construction or maintenance shall be 
available for minor construction (except family quarters), conversion 
of and extensions to existing structures, and improvements, at facili-
ties of the Department concerned, but the cost of any project author-
ized under this section which is not otherwise authorized shall not 
exceed the following cost limitations, but only one allotment shall be 
made for any one project or unit: (a) any such project determined 
by the Secretary of Defense to be urgently required in the interests of 
national defense, $200,000; (b) any such project determined by the 
Secretary of the Department concerned to be urgently required in 
the interests of national defense, $50,000; and (c) any other such 
project, $25,000: Provided^ That the cost limitations of this section 
shall not apply to amounts authorized to be expended for emergency 
expenses on the approval of the Secretary concerned: Provided 
fur-
ther^ That the cost of converting existing structures to family quarters 
pursuant to the authority contained in this section shall not exceed 
$50,000 during the current fiscal year at any single facility of the 
Department concerned. 
SEC. 708. During the current fiscal year, appropriations otherwise 
available for construction of family quarters for personnel shall not 
be obligated for such construction at a cost per family unit in excess 
of $14,040 on housing units for generals: $12,040 on housing units for 
majors, lieutenant colonels and colonels, or equivalent; $11,040 on 
housing units for second lieutenants, lieutenants, captains, and war-
68 
S T A T . ] 
PUBLIC LAW 458-JUNE 30, 1954 
351 
rant officers, or equivalent; or $10,040 on housing units for enlisted 
personnel, except that when such units are constructed outside the 
continental United States or in Alaska, the average cost per unit of 
all such units shall not exceed $25,850 and in no event shall the indi-
vidual cost exceed $35,000, except units for the Alaska Communica-
tions System the individual cost of which shall not exceed $40,000. 
SEC. 709. Appropriations for the Department of Defense for the 
current fiscal year shall be available, (a) except as authorized by the 
Act of September 30, 1950 (20 U. S. C. 236-244), for primary and 
secondary schooling for dependents of military and civilian personnel 
of the Department of Defense residing on military or naval installa-
tions or stationed in foreign countries, as authorized for the Navy by 
section 13 of the Act of August 2, 1946 (5 U. S. C. 421d) in amounts 
not exceeding an average of $235 per student, when the Secretary 
of the Department concerned finds that schools, if any, available in 
the locality, are unable to provide adequately for the education of such 
dependents; (b) for expenses in connection with administration of 
occupied areas; (c) for payment of rewards as authorized for the 
Xavy by the Act of August 2, 1946, for information leading to the 
discovery of missing naval property or the recovery thereof; (d) for 
payment of deficiency judgments and interest thereon arising out of 
condemnation proceedings. 
SEC. 710. No part of any appropriation contained in this Act shall 
be used directly or indirectly except for temporary employment in 
case of emergency, for the payment of any civilian for services ren-
dered by him on the Canal Zone while occupying a skilled, technical, 
clerical, administrative, executive, or supervisory position unless such 
person is a citizen of the United States of America or of the Republic 
of Panama: Provided however^ (1) That, notwithstanding the pro-
vision in the Act approved August 11, 1939 (53 Stat. 1409), limiting 
employment in the above-mentioned positions to citizens of the 
United States from and after the date of approval of said Act, citizens 
of Panama may be employed in such positions; (2) that at no time 
shall the number of Panamanian citizens employed in the above-
mentioned positions exceed the number of citizens of the United 
States so employed, if United States citizens are available in conti-
nental United States or on the Canal Zone; (3) that nothing in this 
Act shall prohibit the continued employment of any person who shall 
have rendered fifteen or more years of faithful and honorable service 
on the Canal Zone; (4) that in the selection of personnel for skilled, 
technical, administrative, clerical, supervisory, or executive positions 
the controlling factors in filling these positions shall be efficiency, 
experience, training, and education; (5) that all citizens of Panama 
and the United States rendering skilled, technical, clerical, adminis-
trative, executive, or supervisory service on the Canal Zone under the 
terms of this Act (a) shall normally be employed not more than 
forty hours per week, (b) may receive as compensation equal rates of 
pay based upon rates paid for similar employment in continental 
United States plus 25 per centum; (6) this entire section shall apply 
only to persons employed in skilled, technical, clerical, administrative, 
executive, or supervisory positions on the Canal Zone directly or indi-
rectly by any branch of the United States Government or by any 
corporation or company whose stock is owned wholly or in part by 
the United States Government: Provided further^ That the President 
may suspend from time to time in whole or in part compliance with 
this section if he should deem such course to be in the public interest. 
SEC. 711. Insofar as practicable, the Secretary of Defense shall assist 
American small business to participate equitably in the furnishing of 
commodities and services financed with funds appropriated under this 
Schooling for de-
pendents* 
64 Stat. 1100. 
60 Stat. 854. 
Occupied areas. 
Rewards, Navy. 
60 Stat. 858. 
5 XBC 421f. 
Canal Zone. 
Citizenship re< 
quirements. 
Panamanian cit<" 
izens. 
4 8 u s e 
1 3 0 7 
note. 
Employee 
w i t h 
15 or more y e a r s 
of service. 
Hours of employ-
ment; pay rate. 
Applicability of 
section. 
Suspens i o n of 
compliance. 
A s s i s t a n c e to 
A m e r i c a n small 
business. 
352 
PUBLIC LAW 458-JUNE 30, 1954 
[68 S 
T A T . 
Messes. 
Operation. 
Trave 1 - s t a t u s 
rate. 
Availability of 
appropriations . 
Tableware, etc., 
in officers' quar-
ters* 
Pro c e e d s from 
sale of scrap. 
Report. 
Metal scrap bal-
ing, etc. 
31 u s e 665. 
Act by makinff 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 possible, with respect to purchases 
proposed to be financed with funds appropriated under this Act, and 
by making available or causing to be made available to purchasing 
and contracting agencies of the Department of Defense information 
as to commodities and services produced and furnished by small inde-
pendent enterprises in the United States, and by otherwise helping to 
give small business an opportunity to participate in the furnishing of 
commodities and services financed with funds appropriated by this 
Act. 
SEC. 712. No appropriation contained in this Act shall be available 
for expenses of operation of messes (other than organized messes the 
operating expenses of which are financed principally from nonappro-
priated funds) at which meals are sold to officers or civilians except 
under regulations approved by the Secretary of Defense, which shall 
(except under unusual or extraordinary circumstances) establish rates 
for such meals sufficient to provide reimbursement of operating ex-
penses and food costs to the appropriations concerned: Provided^ That 
officers and civilians in a travel status receiving a per diem allowance 
in lieu of subsistence shall be charged at the rate of not less than $2.25 
per day: Provided further^ That for the purposes of this section pay-
ments for meals at the rates established hereunder may be made in 
cash or by deductions from the pay of civilian employees. 
SEC. 713. No part of any appropriation contained in this Act 
shall be available until expended unless expressly so provided else-
where in this or some other appropriation Act. 
SEC. 714. No part of any appropriation contained in this Act shnll 
be available for or on account of the supply or replacement of table 
linen, dishes, glassware, silver, and kitchen utensils for use in the 
residences or quarters of officers on shore (other than for field messes, 
messes temporarily set up on shore for bachelor officers and officers 
attached to seagoing or district defense vessels, to aviation units based 
on seagoing vessels, to the fleet air bases, to the submarine bases, or to 
landing forces and expeditions), except in accordance with regula-
tions approved by the Secretary of Defense, which shall provide for 
uniform practices among all of the services. 
SEC. 715. Not more than $40,000,000 of the amounts received during 
the current fiscal year by the Department of Defense as proceeds from 
the sale of scrap or salvage materials, shall be available during the 
current fiscal year for expenses of transportation, demilitarization, and 
other preparation for sale or salvage of military supplies, equipment, 
and materiel: Provided^ That a report of receipts and disbursements 
under this limitation shall be made quarterly to the Committees on 
Appropriations of the Congress: Provided further^ That no funds 
available to agencies of the Department of Defense shall be used for 
the operation, acquisition or construction of new facilities or equip-
ment for new facilities in the continental limits of the United States 
for metal scrap baling or shearing or for melting or sweating alumi-
num scrap unless the Secretary of Defense or an Assistant Secretary 
of Defense designated by him determines, with respect to each facility 
involved, that the operation of such facility is in the national 
interest. 
SEC. 716. During the current fiscal year, the President may exempt 
appropriations, funds, and contract authorizations, available for mili-
tary functions under the Department of Defense, from the provisions 
of subsection (c) of section 3679 of the Revised Statutes, as amended, 
whenever he deems such action to be necessary in the interest of 
national defense. 
68 
S T A T . ] 
PUBLIC LAW 458-JUNE 30, 1954 
353 
SEC. 717. No appropriation contained in this Act shall be available 
in connection with the operation of commissary stores of the agencies 
of the Department of Defense for the cost of purchase (including 
commercial transportation in the United States to the place of sale 
but excluding all transportation outside the United States) and main-
tenance of operating equipment and supplies, and for the actual or 
estimated cost of utilities as may be furnished by the Government 
and of shrinkage, spoilage, and pilferage of merchandise under the 
control of such commissary stores, except as authorized under regula-
tions promulgated by the Secretaries of the military departments con-
cerned, with the approval of the Secretary of Defense, which regula-
tions shall provide for reimbursement therefor to the appropriations 
concerned and, notwithstanding any other provision of law, shall pro-
vide for the adjustment of the sales prices in such commissary stores 
to the extent necessary to furnish sufficient gross revenue from sales 
of commissary stores to make such reimbursement: Provided, That 
under such regulations as may be issued pursuant to this section all 
utilities may be furnished without cost to the commissary stores out-
side the continental United States and in Alaska: Provided 
further^ 
That no appropriation contained in this Act shall be available in con-
nection with the operation of commissary stores within the continental 
United States unless the Secretary of Defense has certified that items 
normally procured from commissary stores are not otherwise available 
at a reasonable distance and a reasonable price in satisfactory quality 
and quantity to the military and civilian employees of the Department 
of Defense. 
SEC. 718. No part of any appropriation contained in this Act shall 
be used to pay the salary or wages of any person who engages in a mint, 
strike against the Government of the United States or who is a mem-
ber of an organization of Government employees that asserts the 
right to strike against the Government of the United States, or who 
advocates, or is a member of an organization that advocates, the 
overthrow of the Government of the United States by force or vio-
lence: Provided, That for the purposes hereof an affidavit shall be 
considered prima facie evidence that the person making the affidavit 
hatS not contrary to the provisions of this section engaged in a strike 
against the Government of the United States, is not a member of an 
organization of Government employees that asserts the right to strike 
against the Government of the United States, or that such person does 
not advocate, and is not a member of an organization that advocates, 
the overthrow of the Government of the United States by force or 
violence: Provided further, That any person who engages in a strike 
against the Government of the United States or who is a member of 
an organization of Government employees that asserts the right to 
strike against the Government of the United States, or who advocates, 
or who is a member of an organization that advocates, the overthrow 
of the Government of the United States by force or violence and 
accepts employment the salary or wages for which are paid from any 
appropriation contained in this Act shall be guilty of a felony and, 
upon conviction, shall be fined not more than $1,000 or imprisoned 
for not more than one year, or both: Provided further, That the above 
penalty clause shall be in addition to, and not in substitution for, any 
other provisions of existing law. 
SEC. 719. Hereafter, no part of any money appropriated to the 
Department of Defense shall be expended under any contract (other sions" 
than a contract for personal services) entered into after the enactment 
of this Act unless such contract provides— 
(1) that the Government may, by written notice to the con-
tractor, terminate the right of such contractor to proceed under 
C o m m i s s a r y 
stores. 
Pestriction. 
Strikes or over-
t h r o w of Govem-
Affidavlt. 
Penalty, 
Gratuities. 
Contract p r o v i-
39777 O—55—pt. 1-
-25 
354 
PUBLIC LAW 458-JUNE 30, 1954 
[68 S 
T A T . 
C i v i l i a n 
em-
ployee ceilings 
Exception* 
Proficiency 
ing. 
fly-
F l i g h t pay for 
certain officers. 
63 Stat. 810. 
37 u s e 235. 
H o u s e h o l d 
goods* 
Nonapplicability. 
such contract if it is found, after notice and hearing, by the Secre-
tary of the military department with which the contract is made, 
or his designee, that gratuities (in the form of entertainment, 
gifts, or otherwise) were offered or given by such contractor, or 
any agent or representative of such contractor, to any officer or 
employee of the Government with a view toward securing a con-
tract or securing favorable treatment with respect to the awarding 
or amending, or the making of any determinations with respect 
to the performing, of such contract: Provided^ That the existence 
of the facts upon which such Secretary makes such findings shall 
be in issue and may be reviewed in any competent court, 
(2) that in the event any such contract is so terminated the 
Government shall be entitled, (a) to pursue the same remedies 
against the contractor as it could pursue in the event of a breach 
of the contract by the contractor, and (b) as a penalty in addi-
tion to any other damages to which it may be entitled oy law, to 
exemplary damages in an amount not less than three nor more 
than ten times (as determined by the Secretary or his designee) 
the costs incurred by any such contractor in providing any such 
gratuities to any such officer or employee. 
SEC. 720. No funds appropriated in titles II, IV, V, and VI of this 
Act shall be used for the payment in excess of 475,000 full-time graded 
civilian employees (including (a) the full-time equivalent of part-
time employment, (b) persons who are described as "consultants" or 
who are compensated on a "when actually employed" basis if such 
C
ersons are employed on a contract basis or are paid on a per diem 
asis, and (c) persons employed without compensation if they are re-
imbursed for expenses) at any one time during the current fiscal year: 
Provided^ That whenever, in the opinion of the Secretary of the Mili-
tary Department concerned, the direct substitution of civilian per-
sonnel for an equivalent or greater number of military personnel will 
result in economy without adverse effect upon national defense, such 
substitution may be accomplished without regard to the foregoing 
limitation, and such funds as may be required to accomplish the sub-
stitution may be transferred from the appropriate military personnel 
appropriation to, and merged with, the appropriation charged with 
compensation of such civilian personnel. 
SEC. 721. Notwithstanding any other provision of law, executive 
order, or regulation, no part of the appropriations in this Act shall 
be available for any expenses of operating aircraft under the jurisdic-
tion of the Armed Forces for the purpose of proficiency flying except 
in accordance with regulations issued by the Secretaries of the De-
partments concerned and approved by the Secretary of Defense which 
shall establish proficiency standards and maximum and minimum fly-
ing hours for this purpose: Provided^ That during the fiscal year, 
without regard to any provision of law or executive order prescribing 
minimum flight requirements, such regulations may provide for the 
payment of flight pay at the rates prescribed in section 204 (b) of the 
Career Compensation Act of 1949 (63 Stat. 802) to certain officers of 
the Armed Forces otherwise entitled to receive flight pay (1) who have 
held aeronautical ratings or designations for not less than twenty 
years, or (2) whose particular assignment outside the United States 
makes it impractical to participate in regular aerial flights. 
SEC. 722. No part of any appropriation contained in this Act shall 
be available for expense of transportation, packing, crating, tempo-
1 ary storage, drayage, and unpacking of household goods and personal 
effects in excess of eleven thousand pounds net in any one shipment: 
Provided, That the limitations imposed herein shall not be applicable 
in the case of members transferred to or serving in stations outside the 
68 STAT.] 
PUBLIC LAW 458-JUNE 30, 1954 
355 
continental United States or in Alaska under orders relieving them 
from a duty station within the United States prior to July 10, 1952, 
and who are returned to the United States under orders relieving them 
from a duty station beyond the United States or in Alaska on or after 
July 1, 1953. 
SEC. 723. Vessels under the jurisdiction of the Department of Com- gj""*^**" °' ''^^ 
merce, the Department of the Army, the Department of the Air Force, 
or the Department of the Navy may be transferred or otherwise made 
available without reimbursement to any of such agencies upon the 
request of the head of one agency and the approval of the agency 
having jurisdiction of the vessels concerned. 
SEC. 724. None of the funds provided in this Act shall be available 
^*8«i training, 
for training in any legal profession nor for the payment of tuition for 
training in such profession: Provided^ That nothing contained in this 
Act shall prohibit persons now attending law courses from completing 
same: Provided further^ That this limitation shall not apply to the 
off-duty training of military personnel as prescribed by section 730 
of this Act. 
SEC. 725. Funds provided in this Act for public information and ,,^^^'^S informa-
, ,. 
1 , • 
1 
V
I 
1 run >'r\t\ r\r\r\ 
tion and relations, 
public relations shall not exceed $3,500,000. 
SEC. 726. Not more than 20 per centum of the appropriations in this 19^5"*'®**'* funds. 
Act which are limited for obligation during fiscal year 1955 shall be 
* 
obligated during the last two months of the fiscal year: Provided^ 
That this section shall not apply to active duty training of civilian 
components. 
SEC. 727. During the fiscal year 1955, the agencies of the Depart- 
Acceptance of 
J. £ T\ £ 
j - x u 
i 
1 
j - i ! 
i ! - 
property, etc., from 
ment of Deiense may accept the use 01 real property from foreign foreign countries. 
countries for the United States in accordance with mutual defense 
agreements or occupational arrangements and may accept services 
furnished by foreign countries as reciprocal international courtesies 
or as services customarily made available without charge; and such 
agencies may use the same for the support of the United States forces 
in such areas without specific appropriation therefor. 
In addition to the foregoing, agencies of the Department of Defense 
may accept real property, services, and commodities from foreign 
countries for the use of the United States in accordance with mutual 
defense agreements or occupational arrangements and such agencies 
may use the same for the support of the United States forces in such 
areas without specific appropriation therefor: Provided^ That within 
Reports to con-
thirty days after the end of each quarter the Secretary of Defense S'the Budget^**" 
shall render to the Committees on Appropriations of the Senate and 
the House of Representatives and to the Bureau of the Budget a full 
report of such property, supplies, and commodities received during 
such quarter. 
SEC. 728. During the current fiscal year, appropriations available 
Research and de-
to the Department of Defense for research and development may be 
used for the purposes of section 4 of the Act of July 16,1952 (66 Stat. 4/5j^"628e. ^^**' 
SEC. 729. Hereafter, no part of the funds appropriated to the De- refteictS*™"*'^''*^' 
partment of Defense shall be available for the payment to any person "*' '^ *
*
"
"
* -, 
in the military service who is resident of a United States Territory or 
possession, of any foreign duty pay as prescribed in section 206 of 
the Career Compensation Act (-Public Law 351, Eighty-first Con-
gress) , unless such person is serving in an area outside the Territory 
« suit. sii. 
or possession of which he is a resident. 
^ 
^^ * 
SEC. 730. No appropriation contained in this Act shall be available ^J^^^^^J" P^^* 
for the payment of more than 75 per centum of charges of educational "* *' * '^' 
institutions for tuition or expenses for off-duty training of military 
personnel, nor for the payment of any part of tuition or expenses for 
356 
PUBLIC LAW 458-JUNE 30, 1954 
[68 S T A T . 
ROTC. 
Loyalty require-
ment. 
Availabi 1 i t y of 
funds. 
Time extension. 
Contract review. 
Report. 
T e r m i n a t i o n 
date. 
Board of Visitors. 
10 u s e 1058; 34 
u s e 1086. 
Procurement of 
U. S. products. 
Restriction. 
Fallbrook P u b -
lic U t i l i t y 
Dis-
trict. 
Post, 
p. 575. 
Passenger auto-
mobiles. 
such training for commissioned personnel who do not agree to remain 
on active duty for two years after completion of such training. 
SEC, 731. No part of the funds appropriated herein shall be 
expended for the support of any formally enrolled student in basic 
courses of the senior division, Keserve Officers Training Corps, who 
has not executed a certificate of loyalty or loyalty oath in such form 
as shall be prescribed by the Secretary of Defense. 
SEC. 7311/^. Those appropriations or funds available to the Depart-
ment of Defense or any agency thereof which would otherwise lapse 
for expenditure purposes on June 30, 1954, and designated by the 
Secretary of Defense not later than July 31, 1954, shall remain avail-
able until June 30, 1955, to such department or agency solely for 
expenditure for the liquidation of obligations legally incurred against 
such appropriation during the period for whicli such appropriation 
was legally available for obligation: Provided, That the Department 
of Defense shall make a review of all contracts entered into under 
such appropriations or funds and outstanding on June 30, 1954, and 
report to the Appropriations Committees of the Senate and the House 
of Representatives by January 31, 1955, (a) the total value of con-
tracts cancelled, (b) the total value of contracts adjusted and the 
resultant savings therefrom, and (c) the total value of contracts con-
tinued on the basis of determined need: Provided further, That any 
such contract shall be terminated no later than June 30, 1955, unless 
the Secretary of the Department concerned certifies prior to January 
1, 1955, that continuation is necessary for reasons of economy or in 
the national interest. 
SEC. 732. Section 4 of the Act of June 29, 1948 (62 Stat. 1094), is 
amended by striking the words "in April". 
SEC. 733. No part of any appropriation contained in this Act shall 
be available for the procurement of any article of food, clothing, cot-
ton or wool (whether in the form of fiber or yarn or contained in fab-
rics, materials, or manufactured articles) not grown, reprocessed, 
reused, or produced in the United States or its possessions, except to 
the extent that the Secretary of the Department concerned shall deter-
mine that a satisfactory quality and sufficient quantity of any articles 
of food or clothing or any form of cotton or wool grown, reprocessed, 
reused, or produced in the United States or its possessions cannot be 
procured as and when needed at United States market prices and 
except procurements outside the United States in support of combat 
operations, procurements by vessels in foreign waters and emergency 
procurements or procurements of perishable foods by establishments 
located outside the continental United States, except the Territories 
of Hawaii and Alaska, for the personnel attached thereto: 
Provided, 
That nothing herein shall preclude the procurement of foods manu-
factured or processed in the United States or its possessions: Pro-
vided further, That no funds herein appropriated shall be used for the 
payment of a price differential on contracts hereafter made for the 
purpose of relieving economic dislocations. 
SEC. 734. None of the funds appropriated by this Act may be used 
in the preparation or prosecution of the pending suit in the United 
States District Court for the Southern District of California, South-
ern Division, by the United States of America against Fallbrook 
Public Utility District, a public service corporation of the State of 
California, and others: Provided, 
That this section shall have no 
force or effect after the effective date of H. R. 5731, Eighty-third 
Congress, as finally enacted into law\ 
SEC. 735. None of the funds appropriated in this Act shall be used 
for the purchase of passenger automooiles except for replacement. 
68 
S T A T . ] 
PUBLIC LAW 459-JUNE 30, 1954 
357 
SEC. 736. None of the funds appropriated in this Act shall be used drfe^J^^etcf' ^°""" 
for the construction, replacement, or reactivation of any bakery, 
^s, e c. 
laundry, or dry-cleaning facility in the United States, its Territories, 
or possessions, as to which the Secretary of Defense does not certify, 
in writing, giving his reasons therefor, that the services to be fur-
nished by such facilities are not obtainable from commercial sources 
at reasonable rates. 
SEC. 737. In order more effectively to administer the funds appro- 
Te^pori^'^^osi-
priated to the Department of Defense, the President, to the extent he tions. 
deems it necessary and appropriate in the interest of national defense, 
may authorize positions in the Department of Defense to be placed 
temporarily in grades 16, 17, and 18 of the General Schedule of the 
Classification Act of 1949 in accordance with the procedures and 
standards of that Act, and such positions shall be additional to the 
number authorized by section 505 of that Act. 
Under authority 
herein, grades 16, 17, and 18 in the Department of Defense may be 
increased only to the extent that the total of such grades in the Depart-
ment of Defense shall not exceed two hundred. 
SEC. 738. During the fiscal year 1955, appropriations of the De-
partment of Defense shall be available for reimbursement to the Post 
Office Department for payment of costs of commercial air transporta-
tion of military mail between the United States and foreign countries. 
SEC. 739. This Act may be cited as the "Department of Defense 
short title. 
Appropriation Act, 1955." 
Approved June 30, 1954. 
63 Stat. 954. 
5 u s e 10 71 note. 
5 u s e 1105. 
Post Office De-
partment. 
Public Law 459 
CHAPTER 433 
AN ACT 
To equalize the treatment accorded to commissioned officers of the Veterinary 
Corps with that accorded to commissioned officers of other corps of the Army 
Medical Service, and for other purposes. 
June 30, 1954 
[S. 932] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That (a) the first 
proviso contained in numbered paragraph (1) of subsection 505 (b) 
of the Officer Personnel Act of 1947 is amended to read as follows: 
'•'"Provided^ That in the Medical Corps, Dental Corps, Veterinary 
Corps, and chaplains promotion lists there shall be no second lieuten-
ants, and the numbers authorized in the grade of first lieutenant in such 
promotion lists shall be all those not authorized in higher grades:". 
(b) The third clause of the second sentence of subsection 506 (c) 
of such Act is amended to read as follows: "each person appointed 
and commissioned an officer of the Veterinary Corps shall, at the time 
of appointment, be credited with an amount of service equal to three 
years;". 
(c) The third sentence of subsection 506 (g) of such Act is amended 
to read as follows: "Effective December 31, 1947, each commissioned 
officer of the Medical Corps who on that date has less than four years' 
service credit, each commissioned officer of the Dental Corps, each 
Regular Army Chaplain, each commissioned officer of the Judge 
Advocate General's Department, and each commissioned officer of the 
Veterinary Corps, who as of that date had less than three years' 
service credit, shall, for promotion, seniority, and promotion-list-
position purposes, be credited as of that date with four years' service 
and three years' service, respectively." 
(d) Each person appointed and commissioned an officer of the 
Veterinary Corps subsequent to December 31, 1947, who, at time of 
Veterinary eorps 
officers. 
Service credit. 
61 Stat. 888. 
10 u s e 559. 
10 u s e 506c.