An Act to provide for the use of certain funds to promote scholarly, cultural, and artistic activities between Japan and the United States, and for other purposes.
PL 94-118 (S.824), enacted 10/20/1975

PUBLIC LAW 94-118—OCT. 20, 1975 
89 STAT. 603 
Public Law 94-118 
94th Congress 
An Act 
Ta provide for the use of certain funds to promote scholarly, cultural, and artistic 
activities between Japan and the United States, 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 
be cited as the "Japan-United States Friendship Act". 
STATEMENT OF FINDINGS AND PURPOSE 
Oct. 20, 1975 
[S. 824] 
Japan-Unitijd 
States Friendship 
Act. 
22 use 2901 
note. 
22USC 2901. 
SEC. 2. (a) The Congress hereby finds that— 
(1) the post-Wo 
rid War II evolution of the relationship 
between Japan and the United States to peacetime friendship and 
partnership is one of the most significant developments of the 
postwar period; 
(2) the Agreement Between Japan and the United States of 
America Concerning the Ryukyu Islands and the Daito Islands, 
signed at Washington and Tokyo on June 17, 1971, is a major 23 UST 44(') 
achievement and symbol of the new relationship between the 
United States and Japan; and 
(3) the continuation of close United States-Japan friendship 
and cooperation will make a vital contribution to the prospects 
for peace, prosperity, and security in Asia and the world. 
(b) It is therefore the purpose of this Act to provide for the use 
of an amount equal to a part of the total sum payable by Japan 
to the United States in connection with the reversion of Okinawa 
to Japanese administration and the remaining funds of the amount 
set aside in 1962 for educational and cultural exchange with Japan 
(known as the G.A.R.I.O.A. Account) to aid education and culture 
at the highest level in order to enhance reciprocal people-to-people 
understanding and to support the close friendship and mutuality of 
interests between the United States and Japan. 
ESTABLISHMENT OP THE FUND; 
EXPENDITURES 
SEC. 3. (a) There is established in the Treasury of the United 
States a trust fund to be known as the Japan-United States Friend-
ship Trust Fund (hereafter referred to as the "Fund"). 
(b) Amounts in the Fund shall be used for the promotion of schol-
arly, cultural, and artistic activities between Japan and the United 
States, including— 
(1) support for studies, including language studies, in insti-
tutions of higher education or scholarly research in Japan and 
the United States, designed to foster mutual understanding 
between Japan and the United States; 
(2) support for major collections of Japanese books and pub-
lications in appropriate libraries located throughout the United 
States and similar support for collections of American books and 
publications in appropriate libraries located throughout Japan; 
(3) supj)ort for programs in the arts in association with appro-
priate institutions in Japan and the United States; 
Japan-Unit<!d 
States Friendship 
Trust Fund. 
22 use 2902. 
89 STAT. 604 
PUBLIC LAW 94-118—OCT. 20, 1975 
Appropriation 
authorization. 
Appropriation 
authorization. 
(4) support for fellowships and scholarships at the graduate 
and faculty levels in Japan and the United States in accord with 
the purposes of this Act; 
(5) support for visiting professors and lecturers at colleges and 
universities in Japan and the United States; and 
(6) support for other Japan-United States cultural and educa-
tional activities consistent with the purposes of this Act. 
(c) Amounts in the Fund may also be used to pay administrative 
expenses of the Japan-United States Friendship Commission, estab-
lished by section 4 of this Act, as directed by that Commission. 
(d) There is authorized to be appropriated to the Fund, for fiscal 
year 1976, an amount equal to 7.5 per centum of the total funds payable 
to the United States pursuant to the Agreement Between Japan and 
the United States of America Concerning the Ryukyu Islands and the 
Daito Islands, signed at Washington and Tokyo, June 17, 1971. 
(e) (1) There is authorized to be appropriated to the Fund, for fiscal 
year 1976, in addition to the amount authorized to be appropriated 
by subsection (d) of this section, those funds available in United 
States accounts in Japan and transferred by the Government of Japan 
to the United States pursuant to the United States request made under 
article V of the agreement between the United States of America and 
Japan regarding the settlement of Postwar Economic Assistance to 
Japan, signed in Tokyo, January 9, 1962, and the exchange of notes 
of the same date (13 U.S.T. 1957; T.I.A.S. 5154) (the G.A.R.I.O.A. 
Account), including interest accruing to the G.A.R.I.O.A. Account. 
(2) The amount authorized to be appropriated by paragraph (1) 
of this subsection shall not include any amount required by law to 
be applied to United States participation in the International Ocean 
Exposition to be held in Okinawa, Japan. 
(3) Any unappropriated portion of the amount authorized to be 
appropriated by subsection (d) of this section and paragraph (1) 
of this subsection for fiscal year 1976 may be appropriated in any 
subsequent fiscal year. 
Establishment. 
22 use 2903. 
Membership. 
THE JAPAN-UNITED STATES FRIENDSHIP 
COMMISSION 
SEC. 4. (a) There is established a commission to be known as the 
Japan-United States Friendship Commission (hereafter referred to 
as the "Commission"). The Commission shall be composed of— 
(1) the members of the United States Panel of the Joint Com-
mittee on United States-Japan Cultural and Educational Coop-
eration ; 
(2) two Members of the House of Representatives, to be 
appointed at the beginning of each Congress or upon the occur-
rence of a vacancy during a Congress by the Speaker of the House 
of Representatives; 
(3) two Members of the Senate, to be appointed at the begin-
ning of each Congress or upon the occurrence of a vacancy during 
a Congress by the President pro tempore of the Senate; 
(4) the Chairman of the National Endowment for the Arts; 
and 
(5) the Chairman of the National Endowment for the 
Humanities. 
PUBLIC LAW 94-118—OCT. 20, 1975 
89 STAT. 605 
(b) Members of the Commission who are not full-time officers or 
employees of the United States and who are not Members of Congress 
shall, while serving on business of the Commission, be entitled to 
receive compensation at rates fixed by the President, but not exceeding 
the rate specified at the time of such service for grade GS-18 in section 
5332 of title 5, United States Code, including traveltime; and while 
so serving away from their homes or regular places of business, all 
members of the Commission may be allowed travel expenses including 
per diem in lieu of subsistence, as authorized by section 5703 of title 5, 
United States Code, for persons in Government service employed 
intermittently. 
(c) The Chairman of the United States Panel of the Joint Commit-
tee on United States-Japan Cultural and Educational Cooperation 
shall be the Chairman of the Commission. A majority of the members 
of the Commission shall constitute a quorum. The Commission shall 
meet at least twice in each year. 
Compensation. 
Chairman. 
Quorum. 
Meetings. 
FUNCTIONS o r THE COMMISSION 
SEC. 5. (a) The Commission is authorized to— 
(1) develop and carry out programs at public or private 
institutions for the promotion of scholarly, cultural, and artistic 
activities in Japan and the United States consistent with the pro-
visions of section 3(b) of this Act; and 
(2) make grants to carry out such programs. 
(b) The Commission shall submit to the President and to the Con-
gress an annual report of its activities under this Act together with 
such recommendations as the Commission determines appropriate. 
22 use 2904. 
Annual report to 
President and 
Congress. 
ADMINISTRATIVE PROVISIONS 
SEC. 6. In order to carry out its functions under this Act, the Com-
mission is authorized to— 
(1) prescribe such regulations as it deems necessary governing 
the manner in which its functions shall be carried out; 
(2) receive money and property donated, bequeathed, or 
devised, without condition or restriction other than that it be used 
for the purposes of this Act; and to use, sell, or otherwise dispose 
of such property (including transfer to the Fund) for the purpose 
of carrying out the purposes of this Act, and any such donation 
shall be exempt from any Federal income, State, or gift tax ; 
(3) in the discretion of the Commission, receive (and use, sell, 
or otherwise dispose of, in accordance with paragraph (2)) money 
and other property donated, bequeathed, or devised to the Com-
mission with a condition or restriction, including a condition that 
the Commission use other funds of the Commission for the pur-
poses of the gift; and any such donation shall be exempt from any 
Federal income. State, or gift tax; 
(4) direct the Secretary of the Treasury to make expenditure 
of the income of the Fund and not to exceed 5 per centum annually 
of the principal of the Fund to carry out the purposes of this Act, 
including the payment of Commission expenses if needed, except 
that any amounts expended from amounts appropriated to the 
Fund under section 3(e)(1) of this Act shall be expended in 
Japan; 
22 u s e 2905. 
Regulations. 
89 STAT. 606 
PUBLIC LAW 94-118—OCT. 20, 1975 
5 use 101 
et seq. 
5 u s e 5332 note. 
Experts and 
consultants. 
Travel expenses. 
(5) appoint an Executive Director, without regard to the pro-
visions of title 5, United States Code, governing appointments in 
the competitive service, who shall be compensated at the rate pro-
vided for a GS-18 of the General Schedule of such title; 
(6) obtain the services of experts and consultants in accordance 
with the provisions of section 3109 of title 5, United States Code, 
at rates for individuals not to exceed the rate specified at the time 
of such service for grade GS-18 in section 5332 of title 5, United 
States Code; 
(7) accept and utilize the services of voluntary and noncom-
pensated personnel and reimburse them for travel expenses, 
including per diem, as authorized by section 5703 of title 5, United 
States Code; 
(8) enter into contracts, grants, or other arrangements, or modi-
fications thereof; 
(9) make advances, progress, and other payments which the 
Commission deems necessary under this Act; and 
(10) obtain from the Secretary of State, on a reimbursable 
basis, such administrative support services and personnel as the 
Commission deems necessary and appropriate to its needs. 
22 use 2906. 
31 use 774. 
MANAGEMENT OF THE FUND 
SEC. 7. (a) The Fund shall consist of— 
(1) amounts appropriated under sections 3 (d) and (e) (1) of 
this Act; 
(2) any other amounts received by the Fund by way of gifts 
and donations; and 
(3) interest and proceeds credited to it under subsection (b) 
of this section. 
(b) It shall be the duty of the Secretary of the Treasury (hereafter 
referred to as the "Secretary") to invest such portion of the Fund as 
is not, in the judgment of the Commission, required to meet current 
withdrawals. Such investment may be made only in interest-bearing 
obligations of the United States or in obligations guaranteed as to 
both principal and interest by the United States. For such purposes, 
the obligations may be acquired (1) on original issue at the issue price, 
or (2) by purchase of outstanding obligations at the market price. The 
purposes for which obligations of the United States may be issued 
under the Second Liberty Bond Act, as amended, are hereby extended 
to authorize the issuance at par of special obligations exclusively to 
the Fund. Such special obligations shall bear interest at a rate equal 
to the average rate of interest, computed as to the end of the calendar 
month next preceding the date of such issue, borne by all marketable 
interest-bearing obligations of the United States issued during the 
preceding two years then forming part of the public debt; except that 
where such average rate is not a multiple of one-eighth of 1 per centum, 
the rate of interest of such special obligations shall be the multiple 
of one-eighth of 1 per centum next lower than such average rate. Such 
special obligations shall be issued only if the Secretary determines 
that the purchase of other interest-bearing obligations of the United 
States, or of obligations guaranteed as to both principal and interest 
by the United States on original issue or at the market price, is not in 
the public interest. 
PUBLIC LAW 94-118—OCT. 20, 1975 
89 STAT. 607 
(c) Any obligation acquired by the Fund (except special obliga-
tions issued exclusively to the Fund) may be sold by the Secretary at 
the market price, and such special obligations may be redeemed at par 
plus accrued interest. 
(d) The interest on, and the proceeds from the sale or redemption 
of, any obligations held in the Fund shall be credited to and form a 
part of the Fund. 
(e) In accordance with section 6(4) of this Act, the Secretary shall 
pay out of the Fund such amounts, including expenses of the Com-
mission, as the Commission considers necessary to carry out the provi-
sions of this Act; except that amounts in the Fund, other than 
amounts which have been appropriated and amounts received by 
the Commission pursuant to sections G(2) and 6(3), shall be subject to 
the appropriation process. 
Approved October 20, 1975. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-503 accompanying H.R. 9667 (Comm. on International 
Relations) and No. 94-526 (Comm. of Conference). 
SENATE REPORT No. 94-188 (Comm. on Foreign Relations). 
CONGRESSIONAL RECORD, Vol. 121 (1975): 
June 13, considered and passed Senate. 
Sept. 26, considered and passed House, amended, in lieu of H.R. 9667. 
Oct. 7, House and Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 11, No. 43: 
Oct. 21, Presidential statement.