An Act to authorize the Secretary of Commerce to resell any two of four C1-SAY-1 type vessels to the Government of the Republic of China for use in Chinese trade in Far East and Near East waters exclusively
PL 86-473 (H.R.8042), enacted 05/14/1960

74 S T A T . ] 
PUBLIC LAW 86-473-MAY 14, 1960 
143 
Public Law 86-473 
AN ACT 
May 14, 1960 
To authorize the Secretary of Commerce to resell any two of four Cl-SAY-1 
[H. R, 8042] 
type vessels to the Government of the Republic of China for use in Chinese 
trade in Far East and Near East waters excUisively. 
Sale ofCl-SAY-l 
vessels. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That the Secretary 
of Commerce is authorized to sell, within one year after enactment 
hereof, on an "as is, where is" basis, to the Government of the Re-
public -of China, any two of the four Cl-SAY-1 vessels, EMPIRE 
ANVIL, EMPIRE BATTLEAX, EMPIRE CUTLASS, and EM-
P I R E SPEARHEAD, subject to the further terms and provisions of 
this bill. Such vessels shall be sold only if (1) the Department of 
State finds that such sale will contribute to the economic development 
of the Republic of China and will serve the interests of the United 
States, (2) the Department of Defense finds that such sale would be 
compatible with the interests of the United States, and (3) the Gov-
ernment of the Republic of China gives assurances acceptable to the 
Secretary of Commerce that each vessel sold under this Act shall 
(a) remain documented under the laws of the Republic of China for 
ten years after such sale, or so long as there remains due the United 
States any principal or interest on account of the sales price, which-
ever is the longer period, (b) be used only in trade between Taiwan 
and ports in the Far East and ports east of the Suez Canal, and not 
engage in trade prohibited to United States flag vessels under Depart-
ment of Commerce Transportation Orders T-1 and T-2 or any modi-
fication thereof, and (c) be returned to the ownei-ship of the United 
States, upon request of the Government of the United States, during 
any national emergency declared by the President of the United States 
and during any war in which the United States is participating, the 
compensation for the vessel to be the value of the vessel but not exceed-
ing the statutory sales price of the vessel under the Merchant Ship 
Sales Act of 1946 ($1,100,000) depreciated at the rate of 10 per centum ^^so ^u^s c app 
per annum from the date of sale under this Act to the date ownership 
of the vessel is returned to the United States, or the scrap value of the 
vessel, whichever is higher. 
No downpayment of any part of the 
purchase price shall be required at the time of the sale. The sale price 
of the vessels shall be the statutory sales price, less payments hereto-
for made from 1948 to 1951 on account of the purchase of the four 
named vessels, and less depreciation computed at the rate of 3i/^ per 
centum per annum from the date of default under the original con-
tract to the date of sale under this Act. The purchase price shall be 
payable in not more than ten equal annual installments with interest 
on the unpaid balance at a rate determined by the Secretary of Com-
merce after consultation with the National Advisory Council on In-
ternational Monetary and Fiscal Problems. 
The obligation of the 
Government of the Republic of China to pay the purchase price and 
interest thereon shall be secured by a mortgage on the vessel with 
terms satisfactory to the Secretary of Commerce. 
All repairs and 
betterments required to fit the vessels for their intended use shall be 
done in a shipyard in the L'nited States at the expense of the pur-
chaser. 
Approved May 14, 1960.