An Act to amend further the Mutual Security Act of 1954, as amended, and for other purposes
PL 86-108 (H.R.7500), enacted 07/24/1959

246 
PUBLIC LAW 86-108-JULY 24, 1959 
[73 S T A T , 
restraints and monopolies, and for other purposes", approved October 
15, 1914 (38 Stat. 734, as amended; 15 U.S.C. 21). Each such pro-
ceeding shall be governed by the provisions of such section as they 
existeaon the day preceding the aate of enactment of this Act. 
Approved July 23, 1959. 
July 24, 1959 
[H. R. 7500] 
Public Law 86-108 
AN ACT 
To amend further the Mutual Security Act of 1954, as amended, and for other 
purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may 
AcTof'fgsl.^''"'"'' be cited as the "Mutual Security Act of 1959". 
70 Stat. 555. 
22 u s e 1750. 
STATEMENT OF POLICY 
SEC. 2. Section 2 of the Mutual Security Act of 1954, as amended, 
which is a statement of policj^, is amended to read as follows: 
"SEC. 2. STATEMENT OF POLICY.— (a) It is the sense of the Congress 
that peace in the world increasingly depends on wider recognition, 
both m principle and practice, of the dignity and interdependence of 
men; and that the survival of free institutions in the United States 
can best be assured in a world wide atmosphere of expanded freedom. 
" (b) Through programs of assistance authorized by this Act and its 
predecessors, the United States has helped thwart Communist intimi-
dation in many countries of the world, has helped Europe recover 
from the wounds of World War II, has supported defensive military 
preparations of nations alerted by Communist aggression, and has 
soundly begun to help peoples of economically underdeveloped areas 
to develop their resources and improve their living standards. 
" (c) Programs authorized by this Act continue to serve the follow-
ing principal purposes: 
"(1) The Congress recognizes the basic identity of interest which 
exists between the people of the United States and the peoples of 
other lands who are striving to establish and develop politically inde-
pendent and economically viable units, and to produce more goods 
and services, and to improve ways of living by methods which reflect 
the popular will, and to realize aspirations for justice, for education, 
and for dignity and respect as individual human beings, and to estab-
lish responsible governments which will cooperate with other like-
minded governments. 
The Congress declares it to be a primary 
objective and need of the United States, and one consistent with its 
tradition and ideals, to share these strivings by providing assistance, 
with due regard for our other obligations, to peoples willing to work 
energetically toward these ends. 
"(2) The Congress recognizes that the peace of the world and the 
security of the United States are endangered so long as international 
communism and the nations it controls continue by threat of military 
action, by the use of economic pressure, and by 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. The Congress declares it to be the policy of the 
United States to continue so long as such danger to the peace of the 
Avorld and to the security of the United States persists, to make avail-
able to other free nations and peoples upon request assistance of such 
73 S T A T . ] 
PUBLIC LAW 86-108--JULY 24, 1959 
247 
nature and in such amounts as the United States deems advisable 
compatible with its own 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. 
"(d) 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 re-
habilitation of the nations of Western Europe; and 
" (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 ag-
gression and contribute to the security of the free world; 
those nations which 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. 
"(e) It is the sense of the Congress that assistance provided 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-gov-
ernment or independence. To this end, assistance shall be rendered 
where appropriate and feasible in such a way as to promote the emer-
gence of political units which are economically viable, either alone or 
in cooperation with neighboring units." 
CHAPTER I—MILITARY ASSISTANCE 
MILITARY ASSISTANCE 
SEC. 101. Chapter I of the Mutual Security Act of 1954, as amended, 
l\ ^^^^-^"1^8 
which relates to military assistance, is amended as follows: 
is 17. 
(aj Amend section 103(a), which relates to authorization, to read 
22 use is 13. 
as follows: 
"(a) There is hereby authorized to be appropriated to the President 
for use beginning in the fiscal year 1960 to carry out the purposes of 
this chapter not to exceed $1,400,000,000, which shall remain available 
until expended. 
Programs of military assistance subsequent to the 
fiscal year 1960 program shall be budgeted so as to come into competi-
tion for financial support with other activities and programs of the 
Department of Defense. 
There is hereby authorized to be appro-
priated to the President for the fiscal years 1961 and 1962 such sums 
as may be necessary from time to time to carry out the purposes of 
this chapter, which sums shall remain available until expended." 
(b) Amend section 105 (b), which relates to conditions applicable to 
22 use is is. 
military assistance, as follows: 
(1) Amend paragraph (4) to read as follows: 
"(4) Military equipment and materials may be furnished to the 
other American Republics only in furtherance of missions directly 
relating to the common defense of the Western Hemisphere which 
are found by the President to be important to the security of the 
United States. 
The President annually shall review such findings 
and shall determine whether military assistance is necessary. 
Internal security requirements shall not, unless the President 
determines otherwise, be the basis for military assistance pro-
grams to American Republics. 
The aggregate amount of funds 
which may be obligated or reserved during the fiscal year 1960 
248 
PUBLIC LAW 86-108-JULY 24, 1959 
[73 S T A T . 
for furnisliing military assistance to American Kepublics shall 
not exceed the aggregate amount of funds obligated or reserved 
for such purpose during the fiscal year 1959." 
(2) Add the following new paragraph: 
"(5) To the extent feasible and consistent with the other pur-
poses of this chapter, administrators of the military assistance 
program shall encourage the use of foreign military forces in 
underdeveloped countries in the construction of public works 
and other activities helpful to economic development." 
CHAPTER II—ECONOMIC ASSISTANCE 
DEFENSE SUPPORT 
22us^c is^i. 
^^^- 2^1- Section 131(b) of the Mutual Security Act of 1954, as 
amended, which relates to defense support, is amended by striking out 
"1959" and "$810,000,000" and substituting "1960" and "$751,000,000", 
respectively. 
UTILIZATION OF COUNTERPART FUNDS 
SEC. 202. Clause (iii) of section 142(b) of the Mutual Security Act 
22 use 1852. 
of 1954, as amended, which relates to utilization of funds in Special 
Accounts, is amended by inserting immediately before the period at 
the end thereof the following: " : Provided further^ That whenever 
funds from such Special Account are used by a country to make loans, 
all funds received in repayment of such loans prior to termination 
of assistance to such country shall be reused only for such purposes 
as shall have been agreed to between the country and the Government 
of the United States". 
DEVELOPMENT LOAN FUND 
SEC. 203. Title I I of chapter I I of the Mutual Security Act of 1954, 
as amended, which relates to the Development Loan Fund, is amended 
as follows: 
7rStat. 357; 72 
(a) Amend section 202(b), which relates to general authority, as 
22* use 1872. 
f o l l o w s : 
(1) Insert the following sentence immediately after the second sen-
tence : "The Fund in its operations shall recognize that development 
loan assistance will be most effective in those countries which show a 
responsiveness to the vital long-term economic, political, and social 
concerns of their people, demonstrate a clear willingness to take ef-
fective self-help measures, and effectively demonstrate that such as-
sistance is consistent with, and makes a contribution to, workable 
long-term economic development objectives." 
(2) In the next to last sentence, immediately before the period at the 
end thereof, insert the following: "nor shall the fractional reserve 
maintained by the Development L<oan Fund for any guaranty made 
pursuant to this section be less in any case than 50 per centum of the 
contractual liability of the Development Loan Fund under such guar-
anty, and the total contractual liability of the Development Loan 
Fund under all of such guaranties shall not, at any one time, exceed 
$100,000,000". 
22 xjsciif3. 
(b) Amend section 203, which relates to capitalization, to read as 
follows: 
"SEC. 203. CAPITALIZATION.—^There is hereby authorized to be appro-
griated to the President at any time after enactment of the Miitual 
ecurity Act of 1959 without fiscal year limitation for advances to the 
Fund after June 30,1959, not to exceed $1,800,000,000 of which not to 
73 S T A T . ] 
PUBLIC LAW 86-108-JULY 24, 1959 
249 
exceed $700,000,000 may be advanced prior to July 1,1960, and not to 
exceed an additional $1,100,000,000 may be advanced prior to July 
1,1961." 
(c) In section 204(b), which relates to fiscal provisions, strike out 
H ?|c lifi, 
" (a)" in the second sentence. 
(d) Amend section 205, which relates to management, powers, and 
11 ulc is^s. 
authorities, BS follows: 
Tl) In subsection (b), strike out "three" in the second sentence 
and substitute "four". 
(2) In subsection (c), strike out the last sentence. 
TECHNICAL, COOPERATION 
SEC. 204. Title I I I of chapter I I of the Mutual Security Act of 
1954, as amended, which relates to technical cooperation, is amended as 
follows: 
(a) In section 304, which relates to authorization, strike out 
^2 aat. 265. 
"$150,000,000" and "1959" and substitute "$179,500,000" and "1960", 
respectively. 
(b) Amend section 306, which relates to multilateral technical 
22 use i896. 
cooperation and related programs, as follows: 
(1) In subsection (a), which relates to contributions to the United 
72 stat. 265. 
Nations Expanded Program of Technical Assistance and related fund, 
strike out "$20,000,000" and "1959" and substitute "$30,000,000" and 
"1960", respectively, and immediately after "for such purpose" the 
last time it appears insert "(including assessed and audited local 
costs)". 
(2) In subsection (b), which relates to contributions to the tech- 
"^^ ^*°*- ^^^' 
nical cooperation program of the Organization of American States, 
strike out "1959" and substitute "1960". 
(c) In section 308, which relates to the International Development 
22 use i898. 
Advisory Board, insert "or officers" after "officer" in the first sentence 
and strike out "to administer this title" in that sentence. 
SPECIAL ASSISTANCE AND OTHER PROGRAMS 
SEC. 205. Title IV of chapter I I of the Mutual Security Act of 
1954, as amended, which relates to special assistance and other pro-
grams, is amended as follows: 
(a) Amend section 400, which relates to special assistance, as 
22 use 1920. 
follows: 
(1) In subsection (a), which relates to authorization, strike out 
^2 stat. 266. 
"1959" and "$202,500,000" and substitute "1960" and "$247,500,000", 
respectively. 
(2) In subsection (c), which relates to assistance to American- 
7istat. 360. 
sponsored schools and libraries abroad, strike out "$10,000,000" and 
substitute "$20,000,000", and in the last sentence of such subsection 
strike out "for the purposes of this subsection" and insert in lieu 
thereof the following: "and notwithstanding the provisions of Public 
Law 213, Eighty-second Congress, the President is authorized to 
utilize foreign currencies accruing to the United States under this or note 
any other Act, for the purposes of this subsection and for hospitals 
abroad designed to serve as centers for medical treatment, education 
and research, founded or sponsored by citizens of the United States". 
(b) Insert after section 400 the following new section: 
"SEC. 401. UNITED NATIONS EMERGENCY FORCE.—The Congress of 
the United States, recognizing the important contribution of the 
United Nations Emergency Force to international peace and security, 
declares it to be the policy of the United States and the purpose of 
65 Stat. 644. 
22 u s e 
16 11 
22 u s e 1922. 
250 
PUBLIC LAW 86-108-JULY 24, 1959 
[73 STAT. 
this section to support the United Nations Emergency Force. 
The 
President is hereby authorized to use during the jfiscal year 1960 funds 
made available pursuant to sectiorL 400(a) of this Act for contribu-
tions on a voluntary basis to the budget of the United Nations 
Emergency Force." 
oo f*^o' i^o^-fo 
(^) -^^ section 402, which relates to earniarking of funds, strike out 
oo T
T
o
o 1
O
O
0 
«i959» in the first sentence and substitute "1960"; in the same sentence, 
after the words "foreign currencies" insert the words "or the grant", 
and at the end of the section, add the following new sentences: "Sur-
plus food commodities or products thereof made available for transfer 
under this Act (or any other Act) as a grant or as a sale for foreign 
currencies may also be made available to the maximum extent prac-
ticable to eligible domestic recipients pursuant to section 416 of the 
gj68 strt. 458; 72 Agricultural Act of 1949, as amended (7 U.S.C. 1431), or to needy 
persons within the United States pursuant to clause (2) of section 32 
49 Stat. 774. 
^f ^he Act of August 24, 1935, as amended (7 U.S.C. 612c). 
Section 
416 of the Agricultural Act of 1949, as amended (7 U.S.C. 1431), is 
amended by inserting 'whether in private stocks or' after 'commodi-
ties' the first time that word appears." 
22 use* H
f
2
^
3 
(^) ^^ section 403, which relates to responsibilities in Germany, 
strike out "1959" and "$8,200, 000" in the first sentence and substitute 
"1960" and "$7,500,000", respectively. 
72 Stat. 266. 
(e) Amend section 405, which relates to migrants, refugees, and 
22 use 1925. 
escapees, as follows: 
(1) In subsection (c), strike out "1959" and "$1,200,000" and sub-
stitute "1960" and "$1,100,000", respectively. 
(2) In subsection (d), strike out "1959" and "$8,600,000" and 
substitute "1960" and "$5,200,000", respectively. 
99 n<fr ^ih 
(^) I^ section 406, which relates to children's welfare, strike out 
use i«..o. 
«$ii^(X)o,oOO" and "1959" and substitute "$12,000,000" and "1960", 
respectively. 
22 use 1
9
^
2
*
7 
^^) ^^ section 407, which relates to Palestine refugees in the Near 
East, strike out "1959" in the first sentence and substitute "1960", and 
in the proviso in the first sentence, strike out "15 per centum" and 
substitute "10 per centum". 
22 use 1928. 
^j^^ jj^ section 408(c), which relates to the North Atlantic Treaty 
Organization, strike out "four" and substitute "five". 
22 use 1929. 
^j^ jj^ section 409(c), which relates to ocean freight charges, strike 
out "1959" and "$2,100,000" and substitute "1960" and "$2,300,000", 
respectively. 
22 use 1930. 
Q'^ Section 410, which relates to Control Act expenses, is repealed, 
(k) Amend section 411, which relates to administrative and other 
expenses, as follows: 
72 Stat. 267. 
(j) 
j ^ gubsectiou (b), strike out "1959" and "$33,000,000" and 
substitute "1960" and "$39,500,000", respectively, 
strt^ fsT ^^^' '° 
(^) ^^ subsection (c), strike out ", not to exceed $7,000,000 in any 
fiscal year,"; and insert before the period ", and for expenses of carry-
ing out the objectives of the Mutual Defense Assistance Control Act 
65 Stat. 645. 
of 1951 (22 U.S.C. 1611) : Provided, That, in addition, funds made 
available for carrying out chapter I of this Act shall be available 
for carrying out the objectives of the Mutual Defense Assistance Con-
trol Act of 1951 in such amounts as the President may direct". 
(1) After section 411, insert a new section as follows: 
"SEC. 412. PRESIDENT'S SPECIAL EDUCATION AND TRAINING FUND.— 
Of the funds appropriated pursuant to this Act for use beginning in 
each of the fiscal years 1960 through 1964, $10,000,000 for each such 
year shall be available only as follows: 
60 Stat. 754. 
5 0 u s e 
a p p . 
73 S T A T . ] 
PUBLIC LAW 86-108-JULY 24, 1959 
251 
"(a) $5,000,000 shall be available until expended only for financing 
studies, research, instruction, and other educational activities of citi-
zens of underdeveloped countries in educational institutions in the 
United States, Puerto Rico, and the Virgin Islands. 
Such financing 
may include payment for transportation, tuition, maintenance and 
other expenses incident to scholastic activities. 
The President may 
employ such funds to augment programs of this character authorized 
by section 32(b) (2) of the Surplus Property Act of 1944, as amended, 
and by the United States Information and Educational Exchange Act i64i 
of 1948, as amended, and he may consolidate such portions of such 
2 2^*usc^* i43 i 
$5,000,000 as he may deem appropriate with appropriations made to note. 
carry out these two Acts. 
"(b) $5,000,000 shall be available until expended only for the train-
ing of people of underdeveloped countries in skills which will con-
tribute to economic development. 
Such training shall be carried out 
in accordance with the policies set forth in title I I I of chapter II, 
relating to technical cooperation, and such $5,000,000 may be con-
solidated with appropriations made for carrying out title I I I of 
chapter II." 
(m) Amend section 413, which relates to encouragement of free 
22 use 1933. 
enterprise and private participation, as follows: 
(1) In subparagraph (b) (4) (A), strike out "any of the purposes 
of this Act" and substitute "the development of the economic resources 
and productive capacities of economically underdeveloped areas or, 
in the case of guaranties issued prior to January 1, 1960, on the basis 
of applications submitted prior to July 1, 1959, any of the purposes 
of this Act". 
(2) In subparagraph ( b ) ( 4 ) ( F ) , strike out "$500,000,000" and 
substitute "$1,000,000,000". 
(3) In subparagraph (b) (4) (G), strike out "achieving any of the 
purposes of this Act" and substitute "furthering the development of 
the economic resources and productive capacities of economically 
underdeveloped areas or, in the case of guaranties issued prior to Jan-
uary 1, 1960, on the basis of applications submitted prior to July 1, 
1959, any of the purposes of this Act". 
(4) In subsection (c), delete the words "a study" following the 
^2 stat. 267. 
words "shall conduct" and insert in lieu thereof "annual studies to 
keep the data up to date"; insert immediately before the period at the 
end of the first sentence the following: ", and to the net position of 
the United States in its balance of trade with the rest of the world"; 
and in the final sentence delete the word "study" following "such" and 
insert in lieu thereof "studies". 
(5) Add the following new subsection: 
"(d) Under the direction of the President, the Department of State 
and such other agencies of the Government as the President shall deem 
appropriate shall conduct a study of methods by which the United 
States and other nations including those which are parties to regional 
agreements for economic cooperation to which the United States is a 
party, or any of them, might best together formulate and effectuate 
programs of assistance to strengthen the economies of free nations so 
as to advance the principal purposes of this Act, as stated in section 
2 thereof." 
(n) In section 419(a), which relates to atoms for peace, strike out 
22 us*c* xiU 
"1959" and "$5,500,000" in the second sentence and substitute "1960" 
and "$6,500,000", respectively. 
32716 O-60—19 
22 u s e 1933. 
252 
PUBLIC LAW 86-108-JULY 24, 1959 
[73 STAT. 
CHAPTER III—CONTINGENCY FUND 
22?s1:' lii'i 
^^^' ^^^- Section 451(b) of the Mutual Security Act of 1954, as 
amended, which relates to the President's special authority and con-
tingency fund, is amended by striking out "1959" in the first sentence 
and substituting "1960". 
CHAPTER IV—GENERAL AND ADMINISTRATIVE PROVISIONS 
SEC. 401. Chapter IV of the Mutual Security Act of 1954, as 
amended, which relates to general and administrative provisions, is 
amended as follows: 
22 use 1755. 
(a) In section 503, which relates to termination of assistance, insert 
" ( a ) " immediately after "TERMINATION OF ASSISTANCE.—", and add 
at the end thereof the following: 
"(b) In any case in which the President determines that a nation 
has hereafter nationalized or expropriated the property of any person 
as defined in section 413(b) and has failed within six months of such 
nationalization or expropriation to take steps determined by the 
President to be appropriate to discharge its obligations under inter-
national law toward such person, the President shall, unless he deter-
mines it to be inconsistent with the national interest, suspend assist-
ance under this Act to such nation until he is satisfied that appropriate 
steps are being taken. 
"(c) The President shall include in his recommendations to the 
Congress for the fiscal year 1961 programs under this Act a specific 
plan for each country receiving bilateral ^rant assistance in the cate-
gories of defense support or special assistance whereby, wherever 
practicable, such grant assistance shall be progressively reduced and 
terminated." 
22 use 1756. 
(b) In section 504, which relates to small businesses, add the follow-
ing new "subsection: 
"(d) Of the funds appropriated pursuant to section 451(b) of this 
Act, the President is authorized to utilize not to exceed $2,500,000 for 
the fiscal year 1960 to make available to foreign small business con-
cerns in underdeveloped countries, or to foreign government organiza-
tions established for the purpose of helping such concerns in under-
developed countries, on such terms and conditions as he may deter-
mine, machine tools, industrial equipment and other equipment owned 
by agencies of the United States Government." 
(c) In section 505(b), which relates to loan assistance and sales, 
strike out the third sentence and substitute the following: "United 
States dollars received in repayment of principal and payment of in-
terest on any loan made under this section shall be deposited in mis-
cellaneous receipts of the Treasury. 
Foreign currencies received in 
repayment of principal and payment of interest on any such loan 
which are in excess of the requirements as determined from time to 
time by the Secretary of State for purposes authorized in section 
32(b) (2) of the Surplus Property Act of 1944, as amended (50 App. 
U.S.C. 1641(b)), may be sold by the Secretary of the Treasury to 
United States Government agencies for payment of their obligations 
abroad and the United States dollars received as reimbursement shall 
also be deposited into miscellaneous receipts of the Treasury. Foreign 
currencies so received which are in excess of the requirements of the 
United States in the payment of its obligations abroad, as such re-
quirements may be determined from time to time by the President, 
shall be credited to and be available for the authorized purposes of the 
Development Loan Fund in such amounts as may be specified from 
time to time in appropriation Acts." 
22 u s e 1757. 
70 Stat. 563. 
73 S T A T . ] 
PUBLIC LAW 86-108-JULY 24, 1959 
253 
(d) In section 510, which relates to purchase of conimodities, delete 
22 use i762. 
the comma following the words "industrial mobilization base" in the 
third sentence and insert the following: "or to the net position of the 
United States in its balance of trade with the rest of the world,". 
(e) In section 517, which relates to completion of plans and cost 
J2 us^c r7^66c. 
estimates, delete the words "title I or" in the first sentence, and insert 
"title I, II, or", and add at the end of such section the following: "To 
the maximum extent practicable, all contracts for construction outside 
the United States made in connection with any agreement or grant 
subject to this section, except any agreement for assistance authorized 
under title II of chapter II, shall be made on a competitive basis." 
22 use isri. 
(f) Amend section 523, which relates to coordination with foreign 
22 use i783. 
policy, as follows: 
(1) In subsection (b), add the following new sentence: "The chief 
of the diplomatic mission shall make sure that recommendations of 
such representatives pertaining to military assistance are coordinated 
with political and economic considerations, and his comments shall 
accompany such recommendations if he so desires." 
(2) Amend subsection (c) to read as follows: 
^^ ^
*
®
*
' ^*'*' 
"(c) Under the direction of the President, the Secretary of State 
shall be responsible for the continuous supervision and general direc-
tion of the assistance programs authorized by this Act, including but 
not limited to determining whether there shall be a military assistance 
program for a country and the value thereof, to the end that such 
programs are effectively integrated both at home and abroad and the 
foreign policy of the United States is best served thereby." 
(g) In section 527(b), which relates to employment of personnel, g
^
^
^
* f^f- "^7; 7o 
strike out "sixty" and "thirty-five" in the first sentence and substitute 
22 use* i787. 
"seventy" and "forty-five", respectively, and add the following new 
sentence at the end of such section: "One of the offices established by 
section 1(d) of Reorganization Plan Numbered 7 of 1953 may not- 
^7 aat. 639 
withstanding the provisions of any other law be compensated at a 
rate not in excess of $20,000 per annum." 
(h) Insert immediately after section 533 the following new section: 
"SEC. 533A. INSPECTOR GENERAL AND COMPTROLLER.—(a) There 
is hereby established in the Department of State an office to be known 
as the "Office of the Inspector General and Comptroller", which shall 
be headed by an officer designated as the "Inspector General and 
Comptroller", whose salary shall be fixed at the annual rate of $19,-
000, and who shall be appointed by the Secretary of State and be re-
sponsible to an Under Secretary of State designated for such pur-
pose by the Secretary of State. In addition, there shall be a Deputy 
Inspector General and Comptroller, whose salary shall not exceed 
the maximum rate provided under the General Schedule of the Classi-
fication Act of 1949, as amended, and such other personnel as may be 
required to carry out the functions vested in the Inspector General 
and Comptroller by or pursuant to this section. 
"(b) There are hereby transferred to the Inspector General and 
Comptroller all functions, powers, and duties of the Office of Evalua-
tion of the International Cooperation Administration, and so much of 
the functions, powers, and duties of the Office of Personnel Security 
and Integrity as relate to investigations of improper activities in con-
nection 
with 
programs 
under 
the 
International 
Cooperation 
Administration. 
" (c) The Inspector General and Comptroller shall have the follow-
ing duties, in addition to those duties transferred to him under sub-
section (b) of this section: 
5 u s e 1.332-IS 
note. 
72 Stat. 203. 
5 use 1113. 
254 
PUBLIC LAW 86-108-JULY 24, 1959 
[73 STAT. 
"(1) Establishing or reviewing and approving a system of 
financial controls over programs of assistance authorized by this 
Act to insure compliance witli applicable laws and regulations; 
"(2) Advising and consulting with tjie Secretary of Defense 
or his delegate with respect to the controls, standards, and pro-
cedures established or approved under this section insofar as such 
controls, standards, and procedures relate to assistance furnished 
68 Stat. 833. 
Under chapter I of this Act; 
22 use 1811. 
«^3^ Establishing or reviewing and approving policies and 
standards providing for extensive internal audits of programs of 
assistance authorized by this Act; 
"(4) Reviewing and approving internal audit programs under 
this section, and coordinating such programs with the appropriate 
officials of other Government departments in order to insure maxi-
mum audit coverage and to avoid duplication of effort; 
"(5) Review^ing audit findings and recommendations of oper-
ating agencies and the action taken thereon, and making recom-
mendations with respect thereto to the Under Secretary of State 
and other appropriate officials; 
" (6) Conducting or requiring the conduct of such special audits 
as in his judgment may be req^uired in individual cases, and of 
inspections with respect to end-item use in foreign countries; 
"(7) Establishing or reviewing and approving a system of 
financial and statistical reporting with respect to all programs of 
assistance authorized by this Act; 
"(8) Advising the Under Secretary of State and other appro-
priate officials on fiscal and budgetary aspects of proposed pro-
grams of assistance authorized by this Act; 
"(9) Designing the form and prescribing the financial and 
statistical content of the annual program presentation to the 
Congress; 
" (10) Coordinating and cooperating with the General Account-
ing Office in carrying out his duties, to the extent that such duties 
are within areas of responsibility of the General Accounting 
Office; and 
"(11) Carrying out such other duties as may be vested in him 
by the Under Secretary of State. 
"(d) Expenses of the Office of the Inspector General and Comp-
troller with respect to programs under this Act shall be charged to the 
appropriations made to carry out such programs: Provided^ That all 
documents, papers, communications, audits, reviews, findings, recom-
mendations, reports, and other material which relate to the operation 
or activities of the Office of Inspector General and Comptroller shall 
be furnished to the General Accounting Office and to any committee 
of the Congress, or any duly authorized subcommittee thereof, charged 
with considering legislation or appropriation for, or expenditures of, 
such Office, upon request of the General Accounting Office or such 
committee or subcommittee as the case may be." 
22 use 1794. 
(i) Amend section 534, which relates to reports to the Congress, by 
inserting " ( a ) " immediately after "REPORTS.—" and by adding at the 
end thereof the following: 
"(b) All documents, papers, communications, audits, reviews, find-
ings, recommendations, reports, and other material which relate to 
the operation or activities of the International Cooperation Admin-
istration shall be furnished to the General Accounting Office and to 
any committee of the Congress, or any duly authorized subcommittee 
thereof J charged with considering legislation or appropriation for, or 
expenditures of, such Administration, upon request of the General 
Accounting Office or such committee or subcommittee as the case may 
73 S T A T . ] 
PUBLIC LAW 86-108-JULY 24, 1959 
255 
(j) Amend section 537, which relates to provisions on uses of funds, 
22 use 1797. 
as follows: 
(1) In paragraph (5) of subsection (a), strike out "$3,300" and 
7ostat. sei. 
substitute "S3 500" 
(2) In subsection (c), strike out "$26,000,000" and substitute 
^2 stat. 270. 
"$27,750,000". 
(3) Amend subsection (f) to read as follows: 
^^ ^*** ^''°' 
"(f) During the annual presentation to the Congress of requests for 
authorizations and appropriations under this Act, there shall be sub-
mitted a detailed report on the assistance to be furnished, country-by-
country, under title I of chapter II, and under section 400(a), of this 
^j ^^^^ ^^^J-
Act. 
The report with respect to each country shall contain a clear 
22 use 1926. 
and detailed explanation of the proposed level of aid for such country, 
and shall include a listing of all significant factors considered, and the 
methods used, in determining the level of aid for such country; the 
reason for including each such factor and an explanation of the man-
ner in which each of such factors is related to the specific dollar figure 
which constitutes the proposed level of aid for each such country. 
In 
addition, with respect to assistance proposed to be furnished under 
title I of chapter I I of this Act, the report shall contain a clear and 
22 use i84i. 
detailed explanation on a country-by-country basis of the determina-
tion of the particular level of forces to be supported by the proposed 
request for authorization and appropriation for military assistance, 
the factors considered and methods used in arriving at each country 
determinination, and where the level of forces supported by military 
assistance differs from the total level of forces maintained in any such 
country, an explanation, in detail, of the reason for the difference in 
such level of forces." 
(k) In section 543 (d), which relates to saving provisions, strike out 
22 use i768. 
the words between "repealed" and "shall" in the first sentence and sub-
stitute "subsequent to the time such funds are appropriated"; insert 
"or subsequent Acts" after "1957" both times it appears in the second 
sentence; and strike out the last sentence. 
(1) Section 549, which relates to special provisions on availability 
f|^^* i7S9a. 
of funds, is repealed. 
(m) After section 549 add the following new sections: 
"SEC. 550. INFORMATION POLICY.—The President shall, in the reports 
required by section 534, or in response to requests from Members of 
the Congress or inquiries from the public, make public all information 
concerning the mutual security program not deemed by him to be in-
compatible with the security of the United States. 
"SEC. 
551. LIMITATION ON THE USE OF THE PRESIDENT'S SPECIAL 
AUTHORITY.—The authority contained in sections 403, 451, and 501 of 
^2 s^«|-^266^, 
this Act shall not be used to augment appropriations made pursuant to 1951, 1753, is' 
sections 103(b), 408, 411(b), and 411(c) or used otherwise to finance ^^^*' '^^'• 
activities which normally would be financed from appropriations for 
administrative expenses." 
CHAPTER V—INTERNATIONAL COOPERATION IN HEALTH ; COLOMBO PLAN 
COUNCIL FOR TECHNICAL COOPERATION 
INTERNATIONAL COOPERATION IN HEALTH 
SEC, 501. (a) The Congress of the United States recognizes that 
large areas of the world are being ravaged by diseases and other health 
deficiencies which are causing widespread suffering, debility, and 
death, and are seriously deterring the efforts of peoples in such areas 
to develop their resources and productive capacities and to improve 
256 
PUBLIC LAW 86-108-JULY 24, 1959 
[73 STAT. 
their living conditions. 
The Congress also recognizes that interna-
tional efforts are needed to assist such peoples in bringing diseases 
and other health deficiencies under control, in preventing their spread 
or reappearance, and in eliminating their basic causes. 
Accordingly, 
the Congress affirms that it is the policy of the United States to accel-
erate its efforts to encourage and support international cooperation 
in programs directed toward the conquest of diseases and other health 
deficiencies. 
(b) In order to carry out the purposes of subsection (a) of this 
section and in order to plan logically for an orderly expansion of 
United States support to international health activities, the President 
is authorized to undertake, in cooperation directly with other govern-
ments, or indirectly through utilizing the resources and services of the 
United Nations and the Organization of American States or any of 
their specialized agencies, programs and projects of research, studies, 
field surveys, trials, and demonstrations to determine the feasibility 
of future intensive programs for reduction, control, or eradication of 
disease problems of international importance. 
Of the funds appro-
22 u*sc 19?!. 
priated pursuant to section 451 (b) of the Mutual Security Act of 1954, 
as amended, the sum of $2,000,000 shall be available to carry out the 
purposes of this section. 
COLOMBO PLAN COUNCIL FOR TECHNICAL COOPERATION 
SEC. 502. To enable the United States to maintain membership in 
the Colombo Plan Council for Technical Cooperation, there is hereby 
authorized to be appropriated from time to time to the Department 
of State such sums as may be necessary for the payment by the United 
States of its share of the expenses of the Colombo Plan Council for 
Technical Cooperation. 
CHAPTER VI—CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE 
BETWEEN EAST AND WEST 
STATEMENT OF PURPOSE 
SEC. 601. The purpose of this chapter is to promote better relations 
and understanding between the United States and the nations of Asia 
and the Pacific (hereinafter referred to as "the East") through coop-
erative study and research, by establishing in Hawaii a Center for 
Cultural and Technical Interchange Between East and West, either 
as a branch of an existing institution of higher learning or as a sep-
arate institution, where scholars and students, in various fields from 
the nations of the East and the Western World may meet, studj^, 
exchange ideas and views, and conduct other activities primarily m 
support of the objectives of the United States Information and Edu-
2 2 ^i?s c
^
* 14 3 1 national Exchange Act of 1948, as amended, and title I I I of chapter I I 
note. 
of the Mutual Security Act of 1954 and other Acts promoting the 
2
*
2 ^iTs c*Vs 91- international educational, cultural, and related activities of the 
1898. 
United States. 
ESTABLISHMENT or CENTER 
tfs%^°'^ *° ^°"' 
^^^* ^^^' ^^ o^<i6r to carry out the purposes of this chapter the Sec-
^'^^^' 
retary of State (hereinafter referred to as Secretary), after consulta-
tion with appropriate public and private authorities, shall on or before 
January 3, 1960, prepare and submit to the Congress a plan and pro-
gram for— 
73 S T A T . ] 
PUBLIC LAW 86-108-JULY 24, 1959 
257 
(1) the establishment and operation in Hawaii of an educa-
tional institution to be known as the Center for Cultural and 
Technical Interchange Between East and West through arrange-
ments to be made with public, educational, or other nonprofit 
institutions; 
(2) grants, fellowships, and other payments to outstanding 
scholars and authorities irom the nations of the East and Western 
World as may be necessary to attract such scholars and authorities 
to the Center; 
(3) grants, scholarships, and other payments to qualified candi-
dates from the nations of the East and West as may be necessary 
to enable such students to engage in study at the Center; and 
(4) making the facilities of the Center available for study to 
other qualified persons on a reasonable basis. 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 603. There are authorized to be appropriated, to remain avail-
able until expended, such amounts as may be necessary to carry out 
the provisions of this chapter. 
CHAPTER VII—AMENDMENTS TO OTHER LAWS AND MISCEIXANEOUS 
PROVISIONS 
AMENDMENTS TO OTHER LAWS 
SEC. 701. (a) The Defense Base Act, as amended (42 U.S.C. 1651), staf. 2
7
2
V *'"' ^^ 
is further amended by inserting in subsection (e) of the first section, 
between "the approval of this Act," and "and contracting officers" in 
the first sentence, the following: "and the liability under this Act of a 
contractor, subcontractor, or subordinate contractor engaged in per-
formance of contracts, subcontracts, or subordinate contracts specified 
in subparagraph (5), subdivision (a) of this section, and the condi-
tions set forth therein, shall hereafter be applicable to the remaining 
terms of such contracts, subcontracts, and subordinate contracts en-
tered into prior to June 30, 1958, but not completed on the date of 
the enactment of the Mutual Security Act of 1959,". 
(b) Section 522 of the Foreign Service Act of 1946, as amended (60 
Stat. 1009, 22 U.S.C. 922), is amended by striking out the word "and" 
at the end of subparagraph (1), by striking out the period at the end 
of subparagraph (2) and substituting a semicolon and the word "and", 
and by adding at the end thereof a new subparagraph (3) which 
shall read as follows: 
"(3) extend the appointment or assignment of any Reserve 
officer, or continue the services of any such Reserve officer by reap-
pointment without regard to the provisions of section 527 of this 
Act, for not more than five additional years if the Secretary 
deems it to be in the public interest to continue such officer in the 
Service, except that the assignment of any Reserve officer under 
paragraph (2) above may not be extended under the provisions of 
this paragraph without the consent of the head of the agency 
concerned." 
(c) Section 1011(a) of the United States Information and Educa-
tional Exchange Act of 1948, as amended (22 U.S.C. 1442), is amended 
^° ^^*- 5«3-
by inserting before the period at the end thereof a colon and the fol-
lowing : '•'•Provided^ That the purpose of making informational media 
guaranties shall be the achievement of the foreign policy objectives of 
258 
PUBLIC LAW 86-109-JULY 28, 1959 
[73 ST A T , 
22 u s e 1933. 
72 Stat. 275. 
7 u s e 1704. 
the United States, including the objective mentioned in sections 
413(b)(4)(A) and 413(b)(4)(G) of the Mutual Security Act of 
1954, as amended". 
(d) Section 104(k) of Public Law 480, Eighty-third Congress (68 
Stat. 454), as amended, is further amended by inserting "research" 
immediately after "conduct", and by substituting for the phrase ", but 
no foreign currencies shall be used for the purposes of this subsection 
(k) unless specific appropriations be made therefor;" the following: 
": Provided^ That foreign currencies shall be available for the pur-
poses of this subsection (in addition to funds otherwise made available 
for such purposes) only m such amounts as may be specified from time 
to time in appropriation Acts;". 
EXPENSES OF ANNUAL MEETING OF NORTH ATLANTIC TREATY 
PARLIAMENTARY CONFERENCE 
SEC. 702. There is authorized to be appropriated the sum of $100,000 
for the purpose of defraying the expenses incident to the annual meet-
ing of the North Atlantic Treaty Parliamentary Conference for the 
year 1959, to be held in Washington, District of Columbia. 
Funds 
appropriated pursuant to this authorization shall be disbursed on 
vouchers jointly approved by the chairmen of the Senate and House 
delegations to the Conference, and such approval shall be final and 
conclusive upon the accounting officers in the auditing of accounts 
incident to the annual meeting. 
72 Stat. 268, 
22 u s e 195 I. 
UNITED STATES PARTICIPATION IN WORLD REFUGEE YEAR 
SEC. 703. Of the funds appropriated pursuant to section 451(b) of 
the Mutual Security Act of 1954, as amended, the sum of $10,000,000 
shall be available for United States participation in World Kefugee 
Year. Such sum shall be available for allocation by the President for 
assistance, either directly or through intergovernmental organizations 
or agencies, to the various refugee groups, and shall be used primarily 
in furtherance of permanent solutions of the problems of such groups 
and in alleviating their urgent emergency needs. 
Approved July 24, 1959. 
[uly 28, 1959 
[H. R. 5446] 
Public Law 86-109 
AN ACT 
To provide for the recovery of costs of building space utilized by the Veterans' 
Canteen Service in the Veterans' Administration. 
Veterans. 
Canteen service. 
72 Stat. 1248. 
Effective date. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That paragraph (3) 
of section 4202 of title 38, United States Code, is amended to read 
as follows: 
"(3) furnish the Service for its use in connection with the 
establishment, maintenance, and operation thereof, such space, 
buildings, and structures under control of the Veterans' Admin-
istration as he may consider necessary, including normal main-
tenance and repair service thereon. 
Reasonable charges, to be 
determined by the Administrator, shall be paid annually by the 
Service for the space, buildings, and structures so furnished, ex-
cept that the Administrator may reduce or waive such charges 
whenever payment of such charges would impair the working 
capital required by the Service;". 
SEC. 2. This Act shall take effect on the first day of July 1959. 
Approved July 28, 1959.