An Act to amend further the Mutual Security Act of 1954, as amended, and for other purposes
PL 84-726 (H.R.11356), enacted 07/18/1956

70 S T A T . ] 
PUBLIC LAW 7 2 6 - J U L Y 18, 1956 
555 
Public Law 726 
CHAPTER 627 
AN ACT 
To amend further the Mutual Security Act of 1954, as aiuendert, and for other 
IH. R. 11356] 
purposes. 
July 18, 1956 
IH. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That this Act may be A ^ " f^ilfsl**'""^^ 
cited as the "Mutual Security Act of 1956". 
SEC. 2. The Mutual Security Act of 1954, as amended, is further f
^ ^t^t. 289.^ 
amended by redesignating section 549, a statement of Congressional 
policy, as section 2, by inserting it immediately after the first section 
of the Act and before title I, and by amending it to read as follows: 
"SEC. 2. STATEMENT or POLICY.—(a) The Congress of the United poucy.^'^^^**""^^ 
States recognizing that the peace of the world and the security of the 
United States are endangered as long as international communism 
and the nations it controls continue by threat of military action, use 
of economic pressure, internal subversion, or other means to attempt 
to bring under their domination peoples now free and independent 
and continue to deny the rights of freedom and self-government to 
peoples and nations once free but now subject to such domination, 
declares it to be the policy of the United States to continue as long 
as such danger to the peace of the world and to the security of the 
United States persists to make available to free nations and peoples 
upon request assistance of such nature and in such amounts as the 
United States deems advisable compatible with its ow^n stability, 
strength, and other obligations, and as may be needed and effectively 
used by such free nations and peoples to help them maintain their 
freedom. 
"(b) It is the sense of the Congress that inasmuch as— 
"(1) the United States, through mutual security programs, 
has made substantial contributions to the economic recovery and 
rehabilitation of the nations of Western Europe; 
"(2) due in part to those programs, it has been possible for 
such nations to achieve complete economic recovery and to regain 
their military strength; and 
"(3) certain other friendly nations of the world remain in need 
of assistance in order that they may defend themselves against 
aggression and contribute to the security of the free world, 
those nations that have been assisted in their recovery should, in the 
future, share with the United States to a greater extent the financial 
burden of providing aid to those countries which are still in need of 
assistance of the type provided under this Act. 
"(c) It is the sense of the Congress that assistance under this Act 
shall be administered so as to assist other peoples in their efforts to 
achieve self-government or independence under circumstances which 
will enable them to assume an equal station among the free nations 
of the world and to fulfill their responsibilities for self-government 
or independence." 
SEC. 3. Title I, chapter 1, of the Mutual Security Act of 1954, as 
Military assist-
amended, which relates to military assistance, is further amended ^"''** 
as follows: 
(a) In section 103 (a), which relates to authorizations, add the «,s? stat. 833; 69 
n
i
l
- 
1 
btat. 
Zoi, 
lollowmg new paragraph: 
22 use 1813. 
"(3) In addition, there is hereby authorized to be appropriated 
to the President to carry out the purposes of this chapter not to exceed 
$2,225,000,000, which shall remain available until expended." 
(b) In section 105 strike out subsections (c) and (d), and strike gtff 284*' *^'*' ^^ 
out the reference to subsection (d) in section 513. 
22 us'c is 13, 
^ ^ 
1765. 
556 
PUBLIC LAW 726-JULY 18, 1956 
[70 STAT. 
Defense support. 
g^,^ 4 
rp-^j^ j ^ chapter 3, of the Mutual Security Act of 1954, as 
amended, which relates to defense support, is further amended by 
substituting a semicolon for the period after "Asia" in subsection (c) 
22 uifc ?84i. 
^f section 131 and inserting thereafter the following: 
"and for the fiscal year 1957 not to exceed— 
"(1) $71,200,000 for Europe (excluding Greece and Turkey); 
"(2) $170,000,000 for the Near East (including Greece and 
Turkey) and Africa; 
" (3) $882,000,000 for Asia; and 
"(4) $52,000,000 for Latin America. 
"Funds made available under paragraph (4) may be used to furnish 
assistance designed to sustain and increase military effort or political 
or economic stability, and may be used without regard to the require-
1852. ^ ^ ^ ^851, j^gjj^g Qf sections 141 and 142 in the case of any nation which is a party 
to the Inter-American Treaty of Reciprocal Assistance and which has 
adhered to the resolution of 1954 entitled 'Declaration of Solidarity 
for the Preservation of the Political Integrity of the American States 
62 Stat. 1681. 
against the Intervention of International Communism'. 
Of the 
funds made available under paragraph (4), the sum of $15,000,000 shall 
remain available until expended^ notwithstanding any other provision 
of this subsection, and in the utilization of such sum preference shall 
be given to (A) projects or programs that will clearly contribute to 
promoting health, education, and sanitation in the area as a whole or 
among a group or groups of countries of the area, (B) joint health, 
education, and sanitation assistance programs undertaken by members 
of the Organization of American States, and (C) such land resettle-
ment programs as will contribute to the resettlement of foreign and 
native migrants in the area as a whole, or in any country of the area, for 
the purpose of advancing economic development and agricultural and 
industrial productivity: Provided^ That assistance under this sentence 
shall emphasize loans rather than grants wherever possible, and not 
less than 75 per centum of the funds made available for assistance 
under this sentence shall be available only for furnishing assistance on 
terms of repayment in accordance with the provisions of section 505." 
as'S^at^M.'**'*'"'' 
SEC. 5. Title I, chapter 4, of the Mutual Security Act of 1954, as 
1852 ^^^ 
^851, amended, which contains general provisions relating to mutual defense 
assistance, is amended by adding at the end thereof the following new 
section: 
"SEC. 143. Notwithstanding any other provision of law, no assist-
ance under this title or any other title of this Act, or under any provi-
sion of law repealed by section 542 (a) of this Act, shall be furnished 
to Yugoslavia after the expiration of ninety days following the date of 
the enactment of this section, unless the President finds and so reports 
to the Congress, with his reasons therefor, (1) that there has been 
no change in the Yugoslavian policies on the basis of which assistance 
under this Act has been furnished to Yugoslavia in the past, and 
that Yugoslavia is independent of control by the Soviet Union, (2) 
that Yugoslavia is not participating in any policy or program for the 
Communist conquest of the world, and (3) that it is in the interest 
' '^^'" 
of the national security of the United States to continue the furnish-
ing of assistance to Yugoslavia under this Act." 
si?tan*?e.^"*"* *" 
^EC. 6. Title I I of the Mutual Security Act of 1954, as amended, 
which relates to development assistance, is amended by striking out 
sections 201 and 202 and substituting the following new section: 
"SEC. 201. AUTHORIZATION.— (a) In addition to the funds hereto-
1938 "^^ 187 1, fQpg appropriated pursuant to the provisions of sections 201 and 418 
of this Act as in effect prior to the enactment of the Mutual Security 
;.v E Act of 1956, which funds shall remain available for their original 
"' 
'""• 
purposes in accordance with the provisions of law originally applicable 
22 u s e 1871. 
187Z 
70 S T A T . ] 
PUBLIC LAW 726-JULY 18, 1966 
5»T 
thereto, there is hereby authorized to be appropriated to the President 
not to exceed $293,000,000, to remain available until June 30, 1960, 
for assistance designed to promote the economic development of free 
Asia, the Middle East, and Africa, based on self-help and mutual 
cooperation of friendly nations, and to maintain economic and politi-
cal stability in these areas. 
"(b) The President is authorized to utilize the funds hereafter 
made available for purposes of this title to accomplish in these areas 
policies and purposes declared in this Act, and to disburse them on 
such terms and conditions, including transfer of funds, as he may 
specify: Provided^ That eighty per centum of such assistance shall 
only be available on terms of repayment, except (1) when such funds 
are used to finance sales of surplus agricultural commodities under 
section 402, or (2) when granted for the purpose of a regional project 
^^ ^^^ *^^^* 
involving two or more beneficiary nations: And provided 
further^ 
That not more than 25 per centum of any funds hereafter made avail-
able for purposes of this title shall be used in furnishing bilateral 
assistance to any one nation. 
"(c) Funds made available under this title may be used for 
expenses (other than those provided for under section 411 (c) of this 
^^ "®^ *^^'' 
Act) to assist in carrying out functions under the Agricultural Trade 
Development and Assistance Act of 1954, as amended (7 U. S. C. 1691 
and the following), delegated or assigned to any agency or officer 
es stat. 454. 
administering nonmilitary assistance." 
SEC. 7. Title I I I of the Mutual Security Act of 1954, as amended, ^Z^^''^ 
*'*"'P" 
which relates to technical cooperation, is further amended as follows: 
(a) In section 304 (b), which relates to authorization, after 
^2\jicii9A 
"$146,500,000", insert ", and for the fiscal year 1957 not to exceed 
$140,500,000,". 
(b) In section 306, which relates to multilateral technical coopera- 
22 u^c Ish. 
tion: 
(1) In subsection (a), which relates to contributions to the United 
Nations Expanded Program of Technical Assistance, strike out all 
following "1956" and substitute ", and $15,500,000 for the fiscal year 
1957, for such contributions;". 
(2) In subsection (b), which relates to contributions to the technical 
cooperation programs of the Organization of American States, strike 
out all following "1956" and substitute ", and $1,500,000 for the fiscal 
year 1957, for such contributions.". 
(c) In section 307, which relates to advances, grants, and contracts, 
^| ^^^ f^^^ 
strike out all following "Congress," in the last sentence thereof and 
substitute "extend at any time for not more than three years.". 
SEC. 8. Title IV of the Mutual Security Act of 1954, as amended, 
°*'**' programs, 
which relates to other programs, is further amended as follows: 
(a) Amend section 401, which relates to special fund, as follows: g^^f fleV ^*^' *' 
(1) In the first sentence of subsection (a), strike out "$50,000,000" 
22 use 1921. 
and substitute "$150,000,000"; and in the last sentence of such sub-
section strike out "$20,000,000" and substitute "$30,000,000". 
(2) In the second sentence of subsection (a), strike out the words 
"and Austria". 
(3) In subsection (b), after "$100,000,000", insert ", and for the 
fiscal year 1957 not to exceed $100,000,000,". 
(4) Add to section 401 the following new subsection: 
"(c) It is the purpose of this Act to advance the cause of freedom. 
filf!?'°ft*„ 
The Congress joins with the President of the United States in proclaim-
ing the hope that the peoples who have been subjected to the captivity 
of Communist despotism shall again enjoy the right of self-determina-
tion within a framework which will sustain the peace; that they shall 
again have the right to choose the form of government under which 
Use of funds. 
558 
PUBLIC LAW 726-JULY 18, 1956 
[70 ST AT, 
69 Stat. 286. 
22 u s e 1922. 
69 Stat. 286. 
22 u s e 1923. 
69 Stat. 286. 
22 u s e 1925. 
69 Stat. 286. 
22 u s e 1926. 
69 Stat. 286. 
22 u s e 1927. 
69 Stat. 286. 
22 u s e 1929. 
69 Stat. 287. 
22 u s e 1930. 
69 Stat. 287. 
22 u s e 1931. 
Transfer of funds. 
68 Stat. 454. 
Administrative 
expenses, Dept. of 
State. 
68 Stat. 847. 
22 u s e 1933. 
they will live, and that sovereign rights of self-government shaJl be 
restored to them all in accordance with the pledge of the Atlantic 
Charter. 
Funds available under this section may be used for programs 
of information, relief, exchange of persons, education, and resettle-
ment, to encourage the hopes and aspirations of peoples who have been 
enslaved by communism." 
(b) In section 402, which relates to earmarking of funds, after 
^'$300,000,000", insert ", and of the funds so authorized for the fiscal 
year 1957 not less than $250,000,000,". 
(c) In section 403 (b), which relates to special assistance in joint 
control areas, after "$21,000,000", insert ", and for the fiscal year 1957 
not to exceed $12,200,000,". 
(d) Amend section 405, which relates to migrants, refugees, and 
escapees, as follows: 
(1) In subsection (c), after "$1,400,000", insert ", and for the 
fiscal year 1957 not to exceed $2,300,000,". 
(2) In subsection (d), after "$6,000,000", insert ", and for the 
fiscal year 1957 not to exceed $7,000,000,". 
(e) In section 406 (b), which relates to children's welfare, after 
"$14,500,000", insert ", and for the fiscal year 1957 not to exceed 
$10,000,000,". 
(f) In section 407 (b), which relates to Palestine refugees in the 
Near East, strike out "for the fiscal year 1956". 
(g) Amend section 409, which relates to ocean freight charges, by 
inserting in subsection (c), after "$2,000,000" in the last sentence 
thereof, the phrase ", and for the fiscal year 1957 not to exceed 
$3,000,000,". 
(h) In section 410, which relates to Control Act expenses, after 
"$1,175,000," in the first sentence thereof, insert "and for the fiscal 
year 1957 not to exceed $1,175,000,". 
(i) Amend section 411, which relates to administrative and other 
expenses, as follows: 
(1) In subsection (b), strike out all that follows "$35,225,000," 
and insert "and for the fiscal year 1957 not to exceed $35,250,000, for 
necessary administrative expenses incident to carrying out the pro-
visions of this Act (other than chapter 1 of title I and section 124).". 
(2) Redesignate subsection "(c)" as subsection "(e)", and insert 
after subsection (b) the following new subsections: 
"(c) Not to exceed $1,500,000 of funds made available under title I I 
may be transferred in tlie fiscal year 1957 for necessary administrative 
expenses not otherwise provided for incident to carrying out func-
tions under the Agricultural Trade Development and Assistance Act 
of 1954, as amended (7 U. S. C. 1691 and the following), delegated 
or assigned to any agency or officer administering nonmilitary assist-
ance, and the amounts so transferred shall be consolidated with funds 
made available pursuant to this section for said fiscal year. 
"(d) There are authorized to be appropriated to the Department 
of State such amounts, not to exceed $7,000,000 in any fiscal year, as 
may be necessary from time to time for administrative expenses which 
are incurred for normal functions of the Department which relate 
to functions under this Act." 
(j) In section 413 (b) (2), after "to encourage and facilitate the 
flow of private investment to", insert ", and its equitable treatment 
in,". 
(k) Amend section 413 (b) (4) as follows: 
(1) After "may make", insert ", through the agency ]3riniarily 
responsible for administering nonmilitary assistance under this Act,". 
(2) Substitute "June 30,1967" for "June 30,1957". 
(3) In subparagraph (B) (ii), before the semicolon at tlie end 
thereof, insert "or by reason of war". 
70 S T A T . ] 
PUBLIC LAW 726-JULY 18, 1956 
559 
(4) Amend subparagraph (F) to read as follows: 
"(F) the President is authorized to issue guaranties up to a 
ml^i°^mt°ei! 
total face value of $500,000,000 exclusive of informational media 
guaranties heretofore and hereafter issued pursuant to section 
1011 of the xict of January 27, 1948, as amended (22 U. S. C. 
1442), and section 111 (b) (3) of the Economic Cooperation Act 
^o"'' P- ^63. 
of 1948, as amended (22 U. S. C. 1509 (b) (3)) : Provided, That sta?. fet ''*^' ®
* 
any funds allocated to a guaranty and remaining after all liability 
of the United States assumed in connection therewith has been 
released, discharged, or otherwise terminated, and funds realized 
after June 30, 1955, from the sale of currencies or other assets 
acquired pursuant to subparagraph (C), shall be available for 
allocation to other guaranties, and the foregoing limitation shall 
be increased to the extent that such funds become available. Any 
payments made to discharge liabilities under guaranties issued 
under this paragraph shall be paid out of fees collected under 
subparagraph (E) as long as such fees are available, and there-
after shall be paid out of funds realized from the sale of cur-
rencies or other assets acquired pursuant to subparagraph (C) 
and notes which have been issued under authority of paragraph 
111 (c) (2) of the Economic Cooperation Act of 1948, as amended, 
and authorized to be issued under this paragraph by the Director 
of the International Cooperation Administration, when necessary 
to discharge liabilities under any such guaranty: Provided, That 
all guaranties issued after June 30, 1956, pursuant to this para-
graph shall be considered for the purposes of sections 3679 (31 
V. S. C. 665) and 3732 (41 U. S. C. 11) of the Revised Statutes, 
as amended, as obligations only to the extent of the probable ulti-
mate net cost to the United States of such guaranties; and the 
President shall, in the submission to the Congress of the reports 
required by section 534 of this Act, include information on the gtat. IM.' **°' ^^ 
operation of this paragraph: Provided 
further, 
That at all 22 use 1794. 
times funds shall be allocated to all outstanding guaranties issued 
prior to July 1, 1956, exclusive of informational media guaran-
ties issued pursuant to section 1011 of the Act of January 27, 
1948, as amended (22 U. S. C. 1442), and section 111 (b) (3) of 
the Economic Cooperation Act of 1948, as amended, equal to the 
sum of the face value of said guaranties. For the purpose of this 
paragraph the Director of the International Cooperation Admin-
istration is authorized to issue notes (in addition to the notes 
heretofore issued pursuant to paragraph 111 (c) (2) of the 
Economic Cooperation Act of 1948, as amended) in an amount 
^2 stat. i46. 
not to exceed $37,500,000, and on the same terms and conditions 
applicable to notes issued pursuant to said paragraph 111 
(c) (2);". 
(1) Amend section 415, which relates to assistance to international 
J^nte'national 
^
'
.
. 
j « n 
organxzations. 
organization, as follows: 
68 stat. 849. 
(1) Change "ORGANIZATION" in the title to "ORGANIZATIONS". 
" "^^ ^^^^• 
(2) After "the North Atlantic Treaty Organization'', insert "and the 
Organization for European Economic Cooperation". 
(m) Repeal section 418, which relates to President's Fund for Asian 
fg^slfti 287. 
Economic Development. 
22 use 1938. 
(n) Add the following new section: 
"SEC. 421. FOOD AND AGRICULTURE ORGANIZATION.—Public Law 
174, Seventy-ninth Congress, as amended by section 1 (b) of Public 
Law 806, Eighty-first Congress, is hereby further amended by striking stat lolu* ^^^' ^^ 
out the figure '$2,000,000' in section 2 thereof and inserting in lieu 
" use 279a. 
thereof the figure '$3,000,000', and by inserting before the period at the 
end of such section a colon and the following: ^Provided, That the 
s
o
o 
PUBLIC LAW 726-JULY 18, 1956 
[TOST A T . 
G e n e r a l provi-
sions. 
68 Stat. 84 9. 
22 u s e 1753. 
22 u s e 1754. 
22 u s e 1759. 
22 u s e 1761. 
68 Stat. 454. 
Organization and 
adminl stration. 
68 Stat. 855. 
22 u s e 1781. 
22 u s e 1782. 
GSA. 
69 Stat. 289. 
22 u s e 1790. 
percentage contribution of the United States to the total annual budget 
of the Organization shall not exceed 31.5 per centum.' " 
SEC. 9. Title V, chapter 1, of the Mutual Security Act of 1954, as 
amended, which relates to general provisions, is further amended as 
follows: 
(a) In section 501, which relates to transferability of funds, strike 
out the last three sentences. 
(b) In section 502 (b), which relates to use of foreign currencies 
by committees of Congress, strike out "Joint Committee on the Eco-
nomic Report" and insert "Joint Economic Committee and the 
Select Committees on Small Business of the Senate and House of 
Representatives." 
(c) Amend section 507, which relates to availability of funds, to 
read as follows: 
"SEC. 507. AVAILABILITY OF FUNDS.—Except as otherwise provided 
in this Act, funds shall be available to carry out the provisions of this 
Act (other than sections 414 and 416) as authorized and appropriated 
to the President each fiscal j^ear." 
(d) In section 509, which relates to shipping on United States 
vessels, after "this Act" in the last sentence thereof, insert "or the 
Agricultural Trade Development and Assistance Act of 1954, as 
amended (7 U. S. C. 1691 and the following),". 
(e) Add the following new section: 
"SEC. 515. AUTHORIZATION FOR GRANT OF CONTRACT AUTHORITY.— 
Provisions in this Act authorizing the appropriation of funds shall 
be construed to authorize the granting in any appropriation Act of 
authority to enter into contracts, within the amounts so authorized 
to be appropriated, creating obligations in advance of appropriations." 
SEC. 10. Title V, chapter 2, of the Mutual Security Act of 1954, as 
amended, which relates to organization and administration, is further 
amended as follows: 
(a) In section 521, which relates to delegation of authority by the 
President, after "subsection (b)" in subsection (a), insert "and section 
413 (b) (4)". 
(b) Amend section 522, which relates to allocation and reimburse-
ment among agencies, as follows: 
(1) Add the following at the end of subsection (b) : "The Adminis-
trator of General Services is authorized to maintain in a separate 
consolidated account, which shall be free from fiscal year limitations, 
payments received by the General Services Administration for ad-
ministrative surcharges in connection with procurement services per-
formed by the General Services Administration in furtherance of the 
purposes of this Act. Such payments shall be in amounts mutually 
acceptable to the General Services Administration and the United 
States Government agency which finances the procurement, and these 
amounts shall be available for administrative expenses incurred by 
the General Services Administration in performing such procurement 
services." 
(2) Add the following new subsection: 
"(f) Any appropriation made to carry out the provisions of this 
Act may initially be charged, within the limits of available funds, 
to finance expenses for which funds are available in other appropria-
tions made under this Act: Provided^ That as of the end of the same 
fiscal year such expenses shall be finally charged to applicable appro-
priations with proper credit to the appropriations initially utilized 
for financing purposes." 
(c) In section 530, which relates to experts and consultants or organ-
izations thereof, insert before the period at the end of subsection (a) 
Ad V a n c e s and 
reimbursements. 
70 STAT.] 
PUBLIC LAW 726-JULY 18, 1956 
661 
the following: ": Provided, That contracts for such employment with 
such organizations may be renewed annually". 
(d) In section 532, which relates to exemption of personnel from 
22 us*c iVIi 
certain Federal laws, add the following at the end of subsection (a) : 
"Contracts for the employment of retired military personnel with 
specialized research and development experience, not to exceed ten in 
number, as experts or consultants under section 530 (a), may be 
renewed annually, notwithstanding section 15 of the Act of August 2, 
1946 (5 U. S. C. 55a)." 
^0 stat. sio. 
(e) Amend section 535, which relates to cooperation with interna- 
^^ "^^ ^^^** 
tional organizations, as follows: 
(1) Insert "NATIONS AND" after " W I T H " in the title. 
(2) Amend subsection (b) to read as follows: 
"(b) Whenever the President determines it to be in furtherance 
of the purposes and within the limitations of this Act, United States 
Government agencies, on re(][uest of international organizations, are 
authorized to furnish supplies, materials, and services, and on re-
quest of nations, are authorized to furnish nonmilitary supplies, ma-
terials, and services, to such organizations and nations on an advance 
of funds or reimbursement basis. 
Such advances, or reimbursements 
which are received under this subsection within one hundred and 
eighty days after the close of the fiscal year in which such supplies, 
materials, and services are delivered, may be credited to the current 
applicable appropriation or fund of the agency concerned and shall 
be available for the purposes for which such appropriations and 
funds are authorized to be used." 
(f) Add the following new section: 
"SEC. 537. PROVISIONS ON USES OF FUNDS.— 
"(a) Appropriations for the purposes of this Act (except for 
chapter 1 of title I and section 124), allocations to any United States 
59'^u?.' 2^84.' 
Government agency, from other appropriations, for functions directly 
22 use 1834. 
related to the purposes of this Act, and funds made available for other 
purposes to any agency administering nonmilitary assistance, shall be 
available for : 
" (1) rents in the District of Columbia for the fiscal year 1957; 
"(2) expenses of attendance at meetings concerned with the 
purposes of such appropriations, including (notwithstanding the 
provisions of section 9 of the Act of March 4, 1909 (31 U. S. C. 
673)) expenses in connection with meetings of persons whose 
^(^*°*' ^^io' 
employment is authorized by section 530 of this Act; 
"(3) employment of aliens, by contract, for services abroad; 
"(4) purchase, maintenance, operation, and hire of aircraft: 
Provided, That aircraft for administrative purposes may be pur-
chased only as specifically provided for in an appropriation or 
other Act; 
" (5) pjirchase and hire of passenger motor veliicles: Provided, 
That, except as may otherwise be ])rovided in an appropriation or 
other Act, passenger motor vehicles abroad for administrative 
purposes may be purchased for replacement only and such vehi-
cles may be exchanged or sold and replaced by an equal number 
of such vehicles and the cost, including exchange allowance, of 
each such replacement shall not exceed $3,300 in the case of an 
automobile for the chief of any special mission or staff abroad 
established under section 526 of this Act: Provided further, That 
^8 stat. 587; 69 
passenger motor veliicles may be purchased for use in the con- 
2
2
* use i786. 
tinental United States only as may be specifically provided in 
an api^ropriation or other Act; 
"(6) entertainment within the TJnited States (not to exceed 
$15,000 in any fiscal year except as may otherwise be provided in 
an appropriation or other Act) ; 
69225 0 - 5 7 - 4 0 (Vol. 70) 
47 Stat. 412. 
562 
PUBLIC LAW 726-JULY 18, 1956 
[70 S T A T . 
"(7) exchange of funds without regard to section 3651 of the 
Revised Statutes (31 U. S. C. 543), and loss by exchange; 
"(8) expenditures (not to exceed $50,000 in any fiscal year 
except as may otherwise be provided in an appropriation or other 
Act) of a confidential character other than entertainment: Pro-
vided, That a certificate of the amount of each such expenditure, 
the nature of which it is considered inadvisable to specify, shall be 
made by an officer administering nonmilitary assistance, or such 
person as he may designate, and every such certificate shall be 
deemed a sufficient voucher for the amount therein specified; 
"(9) insurance of official motor vehicles in foreign countries; 
"(10) rental of quarters outside the continental limits of the 
United States to house employees of the United States Govern-
ment (without regard to section 322 of the Act of June 30,1932, as 
amended (40 U. S. C. 278a)), lease, necessary repairs and altera-
tions to quarters; 
"(11) actual expenses of preparing and transporting to their 
former homes in the United States or elsewhere, and of care and 
disposition of, the remains of persons or members of the families 
of persons who may die while such persons are away from their 
homes participating in activities carried out with funds covered 
by this subsection (a); 
"(12) purchase of uniforms; 
"(13) payment of per diem in lieu of subsistence to foreign 
participants engaged in any program of furnishing technical 
information and assistance, while such participants are away 
from their homes in countries other than the continental United 
States, at rates not in excess of those prescribed by the Standard-
ized Government Travel Regulations, notwithstanding any other 
provision of law; 
"(14) expenses authorized by the Foreign Service Act of 1946, 
60 Stat. 999. 
^g amended (22 U. S. C. 801 and the following), not otherwise 
provided for; 
" (15) ice and drinking water for use abroad; 
"(16) services of commissioned officers of the Public Health 
Service and of the Coast and Geodetic Survey, and for the pur-
poses of providing such services the Public Health Service may 
appoint not to exceed twenty officers in the regular corps to grades 
above that of senior assistant, but not above that of director, as 
otherwise authorized in accordance with section 711 of the Act 
62 Stat. 4 7. 
^f j^jy j ^ ^944^ ^s amended (42 U. S. C. 211a), and the Coast 
and Geodetic Survey may appoint for such purposes not to exceed 
twenty commissioned officers in addition to those otherwise 
authorized; 
"(17) expenses in connection with travel of personnel outside 
the continental United States, including travel expenses of de-
pendents (including expenses during necessary stopovers while 
engaged in such travel) and transportation of personal effects, 
household goods, and automobiles of such personnel when any 
part of such travel or transportation begins in one fiscal year 
pursuant to travel orders issued in that fiscal year, notwithstand-
ing the fact that such travel or transportation may not be com-
pleted during that same fiscal year, and cost of transporting to 
and from a place of storage, and the cost of storing, the furniture 
and household and personal effects of any employee (i) for not 
to exceed three months after first arrival at a new post, (ii) when 
an employee is assigned to a post to which he cannot take, or at 
which he is unable to use, his furniture and household and per-
sonal effects, or (iii) when such storage would avoid the cost 
70 STAT.] 
PUBLIC LAW 726-JULY 18, 1956 
of transporting such furniture and etfeets from one location to 
another, under such regulations as an officer administering non-
military assistance, or such person as he may designate, may 
prescribe. 
"(18) payment of unusual expenses incident to the operation 
and maintenance of official residences for chiefs of special mis-
sions or staffs serving in accordance with section 526 of this Act. g
^
^
f
^ Hg*; ^®^' '^^ 
"(b) United States Government agencies are authorized to pay the 
22 use i786. 
costs of health and accident insurance for foreign participants in any 
exchange-of-persons program or any program of furnishing technical 
information and assistance administered by any such agency while 
such participants are en route or absent from their homes for purposes 
of participation in any such program. 
"(c) Not to exceed $12,000,000 of the funds available in the fiscal 
year 1957 for assistance in Korea under this Act may be used by the 
President to construct or otherwise acquire essential living quarters, 
office space, and supporting facilities in Korea for use by personnel 
carrying out activities under this Act."' 
SEC. 11. Title V, chapter 3, of the Mutual Security Act of 1954, as 
amended, which relates to repeal and miscellaneous provisions, is 
further amended as follows: 
(a) Amend section 544, which relates to amendments to other laws, 
22 ^|.9_''*'*2, 
by adding the following new subsections: 
" (c) In section 4 of the Act of May 26,1949 (63 Stat. Ill, 5 U. S. C. 
151c), insert after the words 'such functions' the following: ', includ-
ing if he shall so specify the authority successively to redelegate any 
of such functions,'. 
"(d) In the first sentence of section 32 (b) (2) of the Surplus 
Property Act of 1944, as amended (50 U. S. C. App. 1641 (b) (2)), 
ss stat. 782. 
after 'any agency thereof, insert 'including amounts received in repay-
ment of principal or interest on any loan made under section 505 (b) 
22 u*sc frV?. 
of the Mutual Security Act of 1954, as amended'. 
"(e) Section 933 of the Foreign Service Act of 1946, as amended 
(22 U. S. C. 1148), is hereby amended by inserting after 'continental 
^° stat. 1028. 
United States' where it appears in both subsection (a) and subsection 
(b) of that section', its Territories and possessions,'. 
"(f) Section 1441 (c) of the Internal Eevenue Code of 1954 is hereby 
fI'bsc *
l
4
4
^
i
!
* 
amended by inserting after paragraph (5) the following new para-
graph : 
"'(6) PER DIEM OF CERTAIN ALIENS.—No deduction or with-
holding under subsection (a) shall be required in the case of 
amounts of per diem for subsistence paid by the United States 
Government (directly or by contract) to any nonresident alien 
individual who is engaged in any program of training in the 
United States under the Mutual Security Act of 1954, as amended.' 
l^ ^u s c*^i*7 5 1 
"(g) Section 1011 of the United States Information and Educa- "ot** 
tional Exchange Act of 1948, as amended (22 U. S. C. 1442), is 
** ^*^*- «"• 
amended by inserting '(a)' before 'The Director', by deleting every-
thing after the words 'national interests of the United States', by 
inserting a period at that point, and by inserting the following new 
subsections : 
" '(b) The Director is authorized to assume the obligation of not 
to exceed $28,000,000 of the notes authorized to be issued pursuant to 
subsection 111 (c) (2) of the Economic Cooperation Act of 1948, as 
amended (22 U. S. C. 1509 (c) (2)), together with the interest accrued 
«2 stat. ue. 
and unpaid thereon, and to obtain advances from time to time from 
the Secretary of the Treasury up to such amount, less amounts previ-
ously advanced on such notes, as provided for in said notes. 
Such 
advances shall be deposited in a special account in the Treasury avail-
able for payments under informational media guaranties. 
564 
PUBLIC LAW 726-JULY 18, 1956 
[70 ST A T . 
Ante, p. 558. 
68 Stat. 847. 
62 Stat. 146. 
22 u s e 1509. 
Ante, p. 558. 
68 Stat. 456. 
"'(c) The Director is authorized to make informational media 
guaranties without regard to the limitations of time contained in sub-
section 413 (b) (4) of the Mutual Security Act of 1954, as amended 
(22 U. S. C. 1933 (b) (4)), but the total of such guaranties outstand-
ing at any one time shall not exceed the sum of the face amount of the 
notes assiuned by the Director less the amounts previously advanced 
on such notes by the Secretary of the Treasury plus the amount of 
the funds in the special account referred to in subsection (b). 
" ' ( d ) Foreign currencies available after June 30, 1955, from con-
versions made pursuant to the obligation of informational media 
guaranties may be sold, in accordance with Treasury Department 
regulations, for dollars which shall be deposited in the special account 
and shall be available for payments under new guaranties. 
Such 
currencies shall be available, as may be provided for by the Congress 
in appropriation Acts, for use for educational, scientific, and cultural 
purposes which are in the national interest of the Ignited States, and 
for such other purposes of mutual interest as may be agreed to by the 
governments of the United States and the country from which the 
currencies derive. 
'"(e) Notwithstanding the provisions of subparagraph 413 (b) (4) 
(E) of the Mutual Security Act of 1954, as amended (22 U. S. C. 
1933 (b) (4) ( E ) ) , (1) fees collected for the issuance of informational 
media guaranties shall be deposited in the special account and shall be 
available for payments under informational media guaranties; and 
(2) the Director may require the payment of a minimum charge of 
up to fifty dollars for issuance of guaranty contracts, or amendments 
thereto. 
"'(f) The Director is further authorized, under such terms as he 
may prescribe, to make advance payments under informational media 
guaranties: Provided, That currencies receivable from holders of such 
guaranties on account of such advance payments sliall be paid to the 
United States within nine months from the date of the advance pay-
ment and that appropriate security to assure such payments is required 
before any advance payment is made. 
" ' ( g ) As soon as feasible after the enactment of this subsection, 
all assets, liabilities, income, expenses, and charges of whatever kind 
pertaining to informational media guaranties, including any charges 
against the authority to issue notes provided in section 111 (c) (2) 
of the Economic Cooperation Act of 1948, as amended, cumulative 
from the enactment of that Act, shall be accounted for separately 
from other guaranties issued pursuant to subsection 413 (b) of the 
Mutual Security Act of 1954, as amended (22 U. S. C. 1933 ( b ) ) : 
Provided, That there shall be transferred from the special account 
established pursuant to subsection (b), into the account available 
for payments under guaranties other than informational media 
guaranties, an amount equal to the total of the fees received for the 
issuance of guaranties other than informational media guaranties, 
and used to make payments under informational media guaranties.' 
"(h) Section 104 (n) of the Agricultural Trade Development and 
Assistance Act of 1954, as amended (Public Law 480, Eighty-third 
Congress; 7 U. S. C. 1704), is amended by adding at the end thereof 
the following: 'In the allocation of funds as among the various pur-
poses set forth in this section, a special effort shall be made to provide 
for the purposes of this subsection, including a particuhir effort with 
regard to: (1) countries where adequate funds are not available from 
other sources for such purposes, and (2) countries where agreements 
can be negotiated to establish a fund with the interest and principal 
available over a period of years for such purposes.' 
70 STAT.] 
PUBLIC LAW 72&-JULY 18, 1956 
566 
"(i) Section 104 of the Agricultural Trade Development and As-
sistance Act of 1954 (Public Law 480, Eighty-third Congress; 7 
U. S. C. 1704), as amended, is further amended by adding after para-
graph (h) the following new paragraph: 
"'(i) for financing the translation, publication, and distribu-
tion of books and periodicals, including Government publica-
tions, abroad: Provided^ That not more than $5,000,000 may be 
allocated for this purpose during any fiscal year.'" 
(b) Amend section 545, which relates to definitions, as follows: 
(1) Add at the end of subsection (h) the following: "Notwith-
standing the foregoing provisions of this subsection (h) and for the 
purpose of establishing a more equitable pricing system for trans-
actions between the military departments and the Mutual Defense 
Assistance Program, the Secretary of Defense shall prescribe at the 
earliest practicable date, through appropriate pricing regulations of 
uniform applicability, that the term 'value' (except in the case of 
excess equipment or materials) shall mean— 
"(1) the price of equipment or materials obtaining for similar 
transactions between the Armed Forces of the United States; or 
"(2) where there are no similar transactions within the mean-
ing of paragraph (1), the gross cost to the United States adjusted 
as appropriate for condition and market value." 
(2) Add the following new subsections: 
"(j) The term 'agency administering nonmilitary assistance' shall 
refer to any agency to which authorities and functions under chapter 
3 of title I, title II, title III, or title IV of this Act are delegated or 
assigned pursuant to authority contained in sections 521 and 525 of this 
Act. 
"(k) The term 'officer administering nonmilitary assistance' shall 
refer to any officer to whom authorities and functions under chapter 
3 of title I, title II, title III, or title IV of this Act are delegated or 
assigned pursuant to authority contained in sections 521 and 525 of this 
Act." 
(c) In section 548, which relates to unexpended balances, strike 
out "heretofore", substitute "1957" for "1956", and strike out the colon 
and the remainder of the sentence following "Act" the second time 
it appears and insert a period. 
(d) Add the following new section: 
"SEC. 549. SPECIAL PROVISION ON AVAILABILITY OF FUNDS.—An 
amount equal to 25 per centum of the funds authorized to be appro-
priated for any fiscal year for purposes of chapter 3 of title I, title III, 
or section 403 of this Act is authorized to be continued available for 
three months beyond the end of the 
fiscal 
year for which appropriated." 
68 Stat. 456. 
Definitions. 
68 Stat. 862. 
22 use 1751. 
69 Stat. 289. 
22 u s e 1767a. 
FOREIGN RESEARCH REACTOR PROJECTS 
SEC. 12. (a) As one means of furthering peaceful uses of atomic 
energy on an international basis, there is hereby authorized to be 
appropriated to the President for the fiscal year 1957 not to exceed 
$5,950,000 for use by the President, on such terms and conditions as 
he may specify, for research reactor projects undertaken or authorized 
by foreign governments which shall have entered into agreements for 
cooperation with the Government of the United States concerning the 
peaceful uses of atomic energy. 
(b) Nothing in this section shall alter, amend, revoke, repeal, or 
otherwise affect the provisions of the Atomic Energy Act of 1954. 
(c) The United States share of the cost of any reactor made avail-
able to another government or to other governments under this section 
shall not exceed $350,000. 
68 Stat. 919. 
42 u s e 
2011 
note. 
566 
PUBLIC LAW 727-JULY 18, 1956 
[70 STAT. 
Publicity. 
^^^ jj^ carrying out the purposes of this section, the appropriate 
United States departments and agencies shall give full and continuous 
publicity through the press, radio, and all other available media, so as 
to inform the peoples of the participating countries regarding the 
assistance, including its purpose, source, and character, furnished by 
the United States. 
Such portions of the equipment furnished under 
this section as may be appropriately die-stamped as a product of the 
United States shall be so stamped. 
Transferor funds. 
gj,^. ^3 j | - ^g the scusc of Cougress that not to exceed $11,000,000 of 
the funds made available pursuant to the Mutual Security Act of 1954, 
as amended, for the fiscal year 1957 be transferred, in the discretion of 
the President, to the Department of State to carry out international 
educational exchange activities. 
Such amount is authorized to be 
transferred to and consolidated with funds made available to the 
Department of State for the fiscal year 1957 for the activities author-
ized by the United States Information and Educational Exchange 
62 Stat. 6. 
j ^ ^ ^ QI j94g^ ^g amended (22 U. S. C. 1431-1479), and by section 32 
(b) (2) of the Surplus Property Act of 1944, as amended (50 U. S. C , 
58 Stat. 782. 
App. 1641 (b)). 
The amount transferred pursuant to this section 
shall be in addition to funds otherwise appropriated for such activities, 
and not to exceed $500,000 of the amount so transferred may be used 
for administrative expenses. 
po?ic".^'*^^^*^^ 
SEC. 14. It is the sense of Congress that in the preparation of the 
mutual security program, the President should take fully into account 
the desirability of affirmatively promoting the economic development 
of underdeveloped countries, both as a means of effectively counter-
acting the increased political and economic emphasis of Soviet foreign 
policy and as a means of promoting fundamental American foreign 
policy objectives of political and economic self-determination and 
independence. 
Approved July 18, 1956. 
Public Law 727 
CHAPTER 628 
July 18. 1956 
^ ^ ^ ^ ' ^ 
[H. R. itooo] 
r^Q provide for the striking of medals in conmienioration of the one hundredtli 
anniversary of the birth of the late Justice Louis Dembitz Brandeis. 
Be it enacted by the Senate and House of Reprei^entativeH of the 
Justice Brandeis. United States 
of America 
in Congress assembled^ That in corn-
anniversary medai. memoration of the one hundredth anniversary of the birth of the late 
Justice I^uis Dembitz Brandeis, the Secretary of the Treasury is 
authorized and directed to strike and furnish to the Brandeis Uni-
versity, Waltham, Massachusetts, three thousand medals with suitable 
emblems, devices, and inscriptions to be determined by the Secretary. 
The medals shall be considered to be national medals within the mean-
31 use 368. 
I j^g Q^ section 3551 of the Kevised Statutes. 
Cost. 
SEC. 2. The Secretary of the Treasury shall cause such medals to be 
struck and furnished at not less than the estimated cost of manufac-
ture, including labor, materials, dies, use of machinery, and overhead 
expenses; and security satisfactory to the Director of the Mint shall 
be furnished to indemnify the United States for the full payment of 
such cost. 
Approved July 18, 1956.