An Act to amend the Merchant Marine Act, 1936, in order to provide for the reimbursement of certain vessel construction expenses
PL 88-410 (H.R.82), enacted 08/10/1964

78 STAT. ] 
PUBLIC LAW 88-410~AUG. 10, 1964 
385 
Public Law 88-410 
AN ACT 
To amend the Merchant Marine Act, 1936, in order to provide for the reimburse-
ment of certain vessel construction expenses. 
August 10, 1964 
[H. R. 82] 
He it eruwted hy the Semite and Houne of Representatives 
of the 
Ignited States of America in Co-ngress aJisembled, That section 502(f) 
of the Merchant Marine Act, 1986, as amended (46 U.S.C. 1152(f)), 
is amended by inserting at the end thereof the following: 
"If, as a result of allocation under this subsection, the applicant 
incurs expenses for inspection and supervision of the vessel during 
construction and for the delivery voyage of the vessel in excess of the 
estimated expenses for the same services that he would have incurred 
if the vessel had been constructed by the lowest responsible bidder 
the Secretary of (Commerce (with respect to construction under title 
V, except section 509) shall reimburse the applicant for such excess, 
less one-half of any gross income the applicant receives that is 
allocable to the delivery voyage minus one-half of the extra expenses 
incurred to produce such gross income, and such reimbursement shall 
not be considered part of the construction-differential subsidy: Pro-
vided^ That no interest shall be paid on any refund authorized under 
this Act. If the vessel is constructed under section 509 the Secretary 
of Commerce shall reduce the price of the vessel by such excess, less 
one-half of any gross income (minus one-half of the extra expenses 
incurred to produce such gross income) the applicant receives that is 
allocable to the delivery voyage. In the case of a vessel that is not 
to receive operating-differential subsidy, the delivery voyage shall 
be deemed terminated at the port where the vessel begins loading. 
In the case of a vessel that is to receive operating-differential subsidy, 
the delivery voyage shall be deemed terminated when the vessel begins 
loading at a United States port on any essential service of the operator. 
In either case, however, the vessel owner shall not be compensated 
for excess vessel delivery costs in an amount greater than the expenses 
that would have been incurred in delivering the vessel from the ship-
yard at which it was built to the shipyard of the lowest responsible 
bidder. If as a result of such allocation, the expenses the applicant 
incurs with respect to such services are less than the expenses he 
would have incurred for such services if the vessel had been constructed 
l)y the lowest responsible bidder, the applicant shall pay to the Sec-
retary of Commerce an amount equal to such reduction and, if the 
\'essel was built with the aid of construction-differential subsidy, 
such payment shall not be considered a reduction of the construction-
differential subsidy." 
SEC. 2. The amendment made by this Act shall be effective with 
respect to any contract entered into under the provisions of section 
502 of the Merchant Marine Act, 1986, as amended, and the Secretary 
of Commerce shall, with the consent of the other parties thereto, 
modify any such contract entered into prior to the date of the enact-
ment of this Act to the extent authorized by the amendment made by 
this Act, exce})t that the Secretary shall not agree to any such modifi-
cation which would result in a payment by the United States unless, 
within one year after enactment of this Act, application is made for 
such modification. 
No payment shall be made by the Secretary under 
the provisions of the amendment made by this Act with respect to any 
Vessels. 
Construction 
expenses. 
52 Stat. 957; 
70 Stat. 657. 
49 Stat. 1995. 
46 u s e 1151 et 
seq. 
46 u s e 1159. 
Modification of 
contract. 
386 
PUBLIC LAW 88-411-AUG. 10, 1964 
[78 STAT. 
contract entered into after the date of enactment of this Act unless 
the recipient of such payment has agreed to the modification of any 
contract which was entered into prior to the date of enactment of this 
Act and to which such recipient was a party, and which, if modified 
under the authority of this section, would result in a payment to the 
United States. 
Approved August 10, 1964. 
August 10, 1964 
[H. R. 7419] 
Public Law 88-411 
AN ACT 
To authorize the conchision of agreements with Mexico for joint construction, 
operation, and maintenance of emergency flood control works on the lower 
Colorado River, in accordance with the provisions of article 13 of the 1944 
Water Treaty with Mexico, and for other purposes. 
Mexico-U.S. 
flood control. 
59 Stat. 1241. 
Appropriation. 
Be it enacted hy the Sertate and Houae of Representatives 
of the 
United States of America in Congress assembled^ That the Secretary 
of State, acting through the ITnited States Commissioner, Interna-
tional Boundary and Water Commission, United States and Mexico, 
is authorized to conclude, with the appropriate official or officials of the 
Government of Mexico, agreements for emergency flood control meas-
ures of international character in the reaches oi the lower Colorado 
River between Imperial Dam and the Gulf of California, in both the 
United States and Mexico, such agreements to provide: (a) for the 
joint clearing and maintaining free of trees and brush the bed and 
banks of the channel; for removing sediment deposits from the river 
channel; and (b) for corrective actions to guard against sedimenta-
tion and consequent aggradation of the river channel incident to 
(lesilting operations at diversion dams in the two countries: Provided, 
That, prior approval of the Secretary of the Interior is required of any 
proposed agreement with Mexico under clause (b) of this section 
which would involve construction and/or operation of w^orks on the 
Colorado River in the United States under the jurisdiction of the 
Secretary. The measures contemplated herein are for the purpose of 
controlling floods on the lower Colorado River in accordance with 
article 13 of the 1944 Water Treaty with Mexico, and accomplish-
ment thereof by the International Boundary and Water Commission, 
United States Section, would be in accord with the Memorandum of 
Understanding "as to Functions and Jurisdiction of Agencies of the 
United States in Relation to the Colorado and Tijuana Rivers and the 
Rio Grande Below Fort Quitman, Texas, Under Water Treaty Signed 
at Washington, February 3, 1944,'' between the Department of State 
and the United States Section, International Boundary and Water 
Commission, and the Department of the Interior dated February 14, 
1945. 
SEC. 2. The United States Commissioner, International Boundary 
and Water Commission, United States and Mexico, is authorized to 
carry out those measures agreed upon for execution by the United 
States in the agreements concluded pursuant to section 1 of this Act. 
SEC. 3. There is authorized to be appropriated to the Department of 
State for use of the United States Section, International Boundary 
and Water Commission, United States and Mexico, not in excess of 
$300,000 for the initial cost of the work authorized in this Act, and not 
to exceed $20,000 annually thereafter for necessary maintenance. 
Approved August 10, 1964.