An Act making appropriations for the Department of Defense for the fiscal year ending June 30, 1963, and for other purposes
PL 87-577 (H.R.11289), enacted 08/09/1962

318 
PUBLIC LAW 87-577-AUG. 9, 1962 
[76 STAT. 
Public Law 87-577 
August 9,1962 
[H. R. 11289] 
Department of 
Defense Appro* 
priatlon Act. 1963. 
AN ACT 
Making a^^ropiiationg for the Department of Defense for the fiscal year ending 
June 30, 1963, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled. That the following 
sums are appropriated, out of any money in the Treasury not other-
wise appropriated, for the fiscal year ending June 30, 1&63, for mili-
tary functions administered by the Department of Defense, and for 
other purposes, namely: 
TITLE I 
3 
:; or 
c 
MILITARY PERSONNEL - 
r-• - 
-
MILITARY PERSONNEL, ARMY 
For pay, allowances, individual clothing, subsistence, interest on 
deposits, gratuities, permanent change of station travel (including 
all expenses thereof for organizational movements), expenses>of tem-
porary duty travel between permanent duty stations, for members of 
the Army on active duty (except those undergoing reserve training), 
expenses of apprehension and delivery of deserters, prisoners, and 
members absent without leave, including paytaent of rewards of 
not to exceed $25 in any one case, $3,643,300,000, and, in addition 
$350,000,000 which shall be derived by transfer from the Army stock 
fund and the Defense stock fund. 
'/"/Of 
I 
MILITARY PERSONNEL, NAVY 
For pay, allowances, individual clothing, subsistence, interest on 
deposits, gratuities, permanent change of'station travel (including 
all expenses thereof for organizational movements), expenses of tem-
porary duty travel between permanent duty stations, for members 
of the Navy on active duty (except those undergoing reserve train-
ing) , midshipmen and aviation cadets, and expenses of apprehension 
and delivery of deserters, prisoners, and members absent without leave, 
including payment of rewards of not to exceed $25 in any one case, 
$2,734,700,000, and, in addition $25,000,000 which shall be derived by 
transfer from the Navy stock fund and the Defense stock fund. 
MILITARY PERSONNEL, MARINE CORPS 
For pay, allowances, individual clothing, subsistence, interest on 
deposits, gratuities, permanent change of station travel (including all 
expenses thereof for organizational movements), expenses of tempo-
rary duty travel between permanent duty stations, for members of 
the Marine Corps on active duty (except those undergoing reserve 
training), and expenses of apprehension and delivery of deserters, 
prisoners, and members absent without leave, including payment of 
rewards of not to exceed $25 in any one case, $661,200,000. 
MILITARY PERSONNEL, AIR FORCE 
For pay, allowances, individual clothing, subsistence, interest on 
deposits, gratuities, permanent change of station travel (including 
all expenses thereof for organizational movements), expenses of tem-
porary duty travel between permanent duty stations, for members of 
the Air Force on active duty (except those undergoing reserve train-
ing), cadets and aviation cadets, and expenses of apprehension and 
76 STAT. ] 
PUBLIC LAW 87-577-AUG. 9, 1962 
319 
delivery of deserters, prisoners, and members absent without leave, 
including payment of rewards of not to exceed $25 in any one case, 
$4,117,690,000, and, in addition $70,000,000 which shall be derived bv 
transfer from the Air Force stock fund and the Defense stock fund. 
RESERVE PERSONNEL, ARMY 
For pay, allowances, clothing, subsistence, gratuities, travel, and 
related expenses for personnel of the Army Reserve on active duty 
while undergoing reserve training, or while performing drills or equiv-
alent duty, and for members of the Reserve Officers' TrainingCorps, 
as authorized by law, $239,200,000: Provided, That the Army Reserve 
i:--; > 
will be programed to attain an end strength oi three hundred thousand 
for fiscal year 1963: Provided further, That insofar as practicable in 
any reorganization or realinement for the purpose of modernization 
the number and geographical location of existing units will be main-
tained. 
RESERVE PERSONNEL, NAVY 
For pay, allowances, clothing, subsistence, gratuities, travel, and 
related expenses for personnel of the Naval Reserve on active duty 
while undergoing reserve training, or while performing drills or 
equivalent duty, regular and contract enroUees in the Naval Reserve 
Officers' Training Corps, and retainer pay, as authorized by law, 
$85,6(X),000. 
RESERVE PERSONNEL, MARINE CORPS 
For pay, allowances, clothing, subsistence, gratuities, travel, and 
related expenses for personnel of the Marine Corps Reserve and the 
Marine (^orps platoon leaders class on active duty while undergoing 
reserve training, or while performing drills or equivalent duty, as 
authorized by law, $28,100,000. 
RESERVE PERSONNEL, AIR FORCE 
For pay, allowances, clothing, subsistence, gratuities, travel, and 
related expenses for personnel of the Air Force Reserve on active duty 
while undergoing reserve training or while performing drills or 
equivalent duty, and for members of the Air Reserve Officers' Train-
ing C^orps, as authorized by law, $50,100,000. 
NATIONAL GUARD PERSONNEL, ARMY 
For pay, allowances, clothing, subsistence, gratuities, travel^ and 
related expenses for personnel of the Ariny National Guard while on 
duty under section 265 of title 10, United States Code, or while under- 
7OA stat. u. 
going training or while performing drills or equivalent duty, as 
authorized by laWj $261,800,000: Provided, That obligations may be 
incurred under this appropriation without regard to section IOT of 
title 32, United States Cfode: Provided 
further, 
That the Army 
7OA stat. 599. 
National Guard will be programed to attain an end strength of four 
hundred thousand in fiscal year 1963: Provided further, Tnat insofar 
as practicable in any reorganization or realinement for the purpose 
of modernization the numoer and geographical location of existing 
units will be maintained. 
NATIONAL GUARD PERSONNEL, AIR FORCE 
For pay, allowances, clothing, subsistence, gratuities, travel, and 
related expenses for personnel of the Air National Guai*d on duty 
under sections 265, 8033, and 8496 of title 10, United States Code, or 
7OA stat. 11, 
' 
' 
491, 524. 
320 
PUBLIC LAW 87-577-AUG. 9, 1962 
[76 STAT. 
while undergoing training or while performing drills or equivalent 
duty, as authorized by law, $53,000,000: Provided^ That obligations 
may be incurred under this appropriation without regard to section 
70A Stat. 599. 
107 of title 32, United States Code. 
RETIRED PAY, DEFENSE 
For retired pay and retirement pay, as authorized by law, of mili-
tary personnel on the retired lists of the Army, Navy, Marine Corps, 
and the Air Force, including the reserve components thereof, retainer 
pay for personnel of the inactive Fleet Reserve, and payments under 
10 use 1431- 
Chapter 73 of Title 10, United States Code, $1,029,000,000. 
1446. 
TITLE I I 
OPERATION AND MAINTENANCE 
OPERATION AND MAINTENANCE, ARMY 
For expenses, not otherwise provided for, necessary for the opera-
tion and maintenance of the Army, including administration; medical 
and dental care of personnel entitled thereto by law or regulation 
(including charges of private facilities for care of military personnel 
on duty or leave, except elective private treatment), and other meas-
ures necessary to protect the health of the Army; care of the dead; 
chaplains' activities; awards and medals; welfare and recreation; 
recruiting expenses; transportation services; communications services; 
maps and similar data for military purposes; military surveys and 
engineering planning; contracts for maintenance of reserve tools and 
facilities for twelve months beginning at any time during the current 
fiscal year; repair of facilities; hire of passenger motor vehicles; tui-
tion and fees incident to training of military personnel at civilian 
institutions; field exercises and maneuvers, including payments in 
advance for rentals or options to rent land; expenses for the Reserve 
Officers' Training Corps and other units at educational institutions, 
as authorized by law; not to exceed $4,193,000 for emergencies and 
extraordinary expenses, to be expended on the approval or authority of 
the Secretary of the Army, and payments may be made on his cer-
tificate of necessity for confidential military purposes, and his deter-
mination shall be final and conclusive upon the accounting officers of 
the Government, $3,408,345,000, of which not less than $275,000,000 
shall be available only for the maintenance of real property facilities. 
OPERATION AND MAINTENANCE, NAVY 
For expenses, not otherwise provided for, necessary for the opera-
tion and maintenance of the Navy and the Marine Corps, including 
aircraft and vessels; modification of aircraft; design and alteration of 
vessels; training and education of members of the Navy; administra-
tion; procurement of military personnel; hire of passenger motor 
vehicles; welfare and recreation; medals, awards, emblems, and other 
insignia; transportation of things (including transportation of house-
hold effects of civilian employees); industrial mobilization; medical 
and dental care; care of the dead; lease of facilities; charter and hire 
of vessels; relief of vessels in distress; maritime salvage services; 
military communications facilities on merchant vessels; dissemination 
of scientific information; administration of patents, trademarks, copy-
rights; annuity premiums and retirement benefits for civilian mem-
bers of teaching services; tuition, allowances, and fees incident to 
training of military personnel at civilian institutions; repair of facili-
ties; departmental salaries; conduct of schoolrooms, service clubs, 
chapels, and other instructional, entertainment, and welfare expenses 
for the enlisted men; procurement of services, special clothing, sup-
plies, and equipment; installation of equipment in public or private 
76 STAT. ] 
PUBLIC LAW 87-577-AUG. 9, 1962 
321 
plants; exploration, prospecting, conservation, development, use, and 
operation of the naval petroleum reserves, as authorized by law and 
not to exceed $6,000,000 for emergency and extraordinary expenses, as 
authorized by section 7202 of title 10, United States Code, to be 
70A stat. 442. 
expended on the approval and authority of the Secretary and his 
determination shall be final and conclusive upon the accounting officers 
of the Government; $2,836,292,000, of which not less than $163,526,000 
shall be available only for the maintenance of real property facilities, 
$1,100,000 shall be transferred to the appropriation "Salaries and 
expenses". Weather Bureau, Department of Commerce, fiscal year 
1963; and $16,980,000 shall be transferred to the appropriation, 
"Operating expenses". Coast Guard, fiscal year 1963; for the operation 
of ocean stations. 
OPERATION AND MAINTENANCE, MARINE CORPS 
For expenses, necessary for the operation and maintenance of the 
Marine Corps including equipment and facilities; procurement of 
military personnel; training and education of regular and reserve 
personnel, including tuition and other costs incurred at civilian 
schools; welfare and recreation; conduct of schoolrooms, service clubs, 
chapels, and other instructional, entertainment, and welfare expenses 
for the enlisted men; procurement and manufacture of military sup-
plies, equipment, and clothing; hire of passenger motor vehicles; 
transportation of things; medals, awards, emblems and other insignia; 
operation of station hospitals, dispensaries and dental clinics; and 
departmental salaries; $192,500,000, of which not less than $21,318,000 
shall be available only for the maintenance of real property facilities; 
and not to exceed $2,000,000 is to be available only for the payment of 
a connection charge to the Beaufort-Jasper Water Authority. 
MARINE CORPS STOCK FUND 
For the Marine Corps Stock Fund, $15,000,000, to be derived by 
transfer from the Navy Stock Fund. 
OPERATION AND MAINTENANCE, AIR FORCE 
For expenses, not otherwise provided for, necessary for the oper-
ation, maintenance, and administration of the Air Force, including 
the Air Force Reserve and the Air Reserve Officers' Training Corps; 
operation, maintenance, and modification of aircraft and missiles; 
transportation of things, repair and maintenance of facilities; field 
printing plants; hire of passenger motor A^ehicles; recruiting advertis-
ing expenses; training and instruction of military personnel of the 
Air Force, including tuition and related expenses; pay, allowances, 
and travel expenses of contract surgeons; rental of land or purchase 
of options to rent land without reference to section 3648, Revised 
Statutes, as amended, use or repair of private property and other 
31 use 529. 
necessary expenses of combat maneuvers; care of the dead; chaplain 
and other welfare and morale supplies and equipment; conduct of 
schoolrooms, service clubs, chapels, and other instructional, entertain-
ment, and welfare expenses for enlisted men and patients not otherwise 
provided for; awards and decorations; industrial mobilization, includ-
ing maintenance of reserve plants and equipment and procurement 
planning; special services by contract or otherwise; and not to exceed 
$6,000,000 for emergencies and extraordinary expenses, to be expended 
on the approval or authority of the Secretary of the Air Force, and 
])ayments may be made on his certificate of necessity for confidential 
military purposes, and his determination shall be final and conclusive 
78135 0-63—24 
322 
PUBLIC LAW 87-577-AUG. 9, 1962 
[76 STAT. 
upon the accounting officers of the Government; $4,365,644,000, of 
which not less than $269,200,000 shall be available only for the 
maintenance of real property facilities. 
OPERATION AND MAINTENANCE, DEFENSE AGENCIES 
For expenses, not otherwise provided for, necessary for the opera-
tion and maintenance of activities and agencies of the Department of 
Defense (other than the military departments and the Office of Civil 
Defense), including administration; hire of passenger motor vehicles; 
welfare and recreation; awards and decorations; travel expenses, in-
cluding expenses of temporary duty travel of military personnel; 
transportation of things (including transportation of household effects 
of civilian employees); industrial mobilization; care of the dead; 
lease of buildings and facilities; dissemination of scientific informa-
tion ; administration of patents, trademarks, and copyrights; tuition 
and fees incident to the training of military personnel at civilian 
institutions; repair of facilities; departmental salaries; procurement 
of services, special clothing, supplies, and equipment; field printing 
plants; information and educational services for the Armed Forces; 
communications services; not to exceed $1,165,000 for emergency and 
extraordinary expenses, to be expended on the approval or authority 
of the Secretary of Defense for such purposes as he deems appro-
priate, and his determination thereon shall be final and conclusive 
upon the accounting officers of the Government; $350,331,000; of 
which not less than $9,708,000 shall be available only for the main-
tenance of real property facilities. 
OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD 
For expenses of training, organizing, and administering the Army 
National Guard, including maintenance, operation, and repairs to 
structures and facilities; hire of passenger motor vehicles; personal 
services in the National Guard Bureau and services of personnel of the 
National Guard employed as civilians without regard to their military 
rank, and the number of caretakers authorized to be employed under 
70A Stat. 614. 
Drovisious of law (32 U.S.C 709) may be such as is deemed necessary 
by the Secretary of the Army; travel expenses (other than mileage), 
as authorized by law for Army personnel on active duty, for Army 
National Guard division, regimental, and battalion commanders while 
inspecting units in compliance with National Guard regulations when 
specifically authorized by the Chief, National Guard Bureau; sup-
plying and equipping the Army National Guard of the several States, 
Commonwealth of Puerto Rico, and the District of Columbia, as 
authorized by law; and expenses of repair, modification, maintenance, 
and issue of supplies and equipment (including aircraft); $174,-
400,000, of which not less than $1,900,000 shall be available only for 
the maintenance of real property facilities: Provided^ That obliga-
tions may be incurred under this appropriation without regard to sec-
70A Stat. 599. 
tion 107 of title 32, United States Cfode. 
OPERATION AND MAINTENANCE, AIR NATIONAL GUARD 
For operation and maintenance of the Air National Guard, includ-
ing medical and hospital treatment and related expenses; maintenance, 
operation, repair, and other necessary expenses of facilities for the 
training and administration of the Air National Guard, including 
repair of facilities, maintenance, operation and modification of air-
craft; transportation of things; hire of passenger motor vehicles; 
supplies, material, and equipment, as authorized by law for the Air 
76 STAT. ] 
PUBLIC LAW 87-577-AUG. 9, 1962 
323 
National Guard of the several States, Commonwealth of Puerto Bico, 
j 
and the District of Columbia; and expenses incident to the maintenance 
and use of supplies, materials, and equipment, including such as may 
be furnished from stocks under the control of agencies of the Depart-
ment of Defense; travel expenses (other than mileage) on the same 
basis as authorized by law for Air National Guard personnel on 
active Federal duty, of Air National Guard commanders while inspect-
ing units in compliance with National Guard regulations when spe-
cifically authorized by the Chief, National Guard Bureau; $194,400,-
000, of which not less than $1,600,000 shall be available only for the 
maintenance of real property facilities: Provided, That the number 
of caretakers authorized to be employed under the provisions of law 
(32 U.S.C. 709) may be such as is deemed necessary by the Secretary 
70A stat, SIA. 
of the Air Force and such caretakers may be emploj^ed without regard 
to their military rank as members of the Air National Guard: Pro-
vided further, That obligations may be incurred under this appropria-
tion without regard to section 107 of title 32, United States Code. 
70A stat. S99. 
NATIONAL BOARD FOR THE PROMOTION OF RIFLE PRACTICE, ARMY 
For the necessary expenses of construction, equipment, and mainte-
nance of rifle ranges, the instruction of citizens in marksmanship, and 
promotion of rifle practice, in accordance with law, including travel 
of rifle teams, military personnel, and individuals attending regional, 
national, and international competitions, and not to exceed $21,000 for 
incidental expenses of the National Board, $622,000: Provided, That 
travel expenses of civilian members of the National Board shall be 
paid in accordance with the Standardized Government Travel Regula-
tions, as amended. 
OPERATION AND MAINTENANCE, ALASKA COMMUNICATION SYSTEM, 
ARMY 
For expenses necessary for the operation, maintenance, and improve-
ment of the Alaska Communication System, including purchase of two 
passenger motor vehicles for replacement only, $6,900,000, of which 
not less than $385,000 shall be available only for maintenance of real 
property facilities; and in addition, not to exceed 15 per centum of 
- 
?' 
the current fiscal year receipts of the Alaska Communication System 
may be merged with and used for the purposes of this appropriation 
and charges for station agent agreements may be paid from receipts of 
the Alaska Communication System. 
CLAIMS, DEFENSE 
For payment of claims (except as provided in appropriations for 
civil functions administered by the Department of the Army) as 
authorized by law; claims for damages arising under training con-
tracts with carriers; and repayment of amounts determined by the 
Secretary of the Army, the Secretary of the Navy, or the Secretary 
of the Air Force, or officers designated by them, to have been errone-
ously collected from military and civilian personnel of the Depart-
ments of the Army, Navy, and Air Force or from States, territories, 
or the District of Columbia, or members of National Guard units 
thereof; $19,000,000. 
CONTINGENCIES, DEFENSE 
For emergencies and extraordinary expenses arising in the Depart-
ment of Defense, to be expended on the approval or authority of the 
Secretary of Defense and such expenses may be accounted for solely 
324 
PUBLIC LAW 87-577-AUG. 9, 1962 
[76 STAT. 
on his certificate that the expenditures were necessary for confidential 
Report to con- 
military purposes, $15,000,000: Provided^ That a report of disburse-
muteis"^^''°'"' 
ments under this item of appropriation shall be made quarterly to the 
Appropriations Committees of the Congress. 
SALARIES AND EXPENSES, COURT or MILITARY APPEALS, DEFENSE 
For salaries and expenses necessary for the Court of Military 
Appeals, $455,000. 
TITLE I I I 
PKOCUREMENT 
PROCUREMENT or EQUIPMENT AND MISSILES, ARMY 
For expenses necessary for the procurement, manufacture, and mod-
ification of missiles, armament, ammunition, equipment, vehicles, ves-
sels, and aircraft for the Army and the Reserve Officers' Training 
Corps; purchase of not to exceed eight thousand seven hundred and 
sixty-nine passenger motor vehicles for replacement only (including 
two medium sedans at not to exceed $3,000 each) ; expenses which in 
the discretion of the Secretary of the Army are necessary in provid-
ing facilities for production of equipment and supplies for national 
defense purposes, including construction, and the furnishing of Gov-
ernment-owned facilities and equipment at privately owned plants; 
and ammunition for military salutes at institutions to which issue of 
weapons for salutes is authorized; $2,520,000,000, to remain available 
until expended. 
PROCUREMENT OF AIRCRAFT AND MISSILES, NAVY 
For construction, procurement, production, modification, 
and 
modernization of aircraft, missiles, equipment, including ordnance, 
spare parts, and accessories therefor; specialized equipment; expan-
sion oi public and private plants, including the land necessary there-
for, and such lands, and interests therein, may be acquired, and 
construction prosecuted thereon prior to approval of title by the 
40 use 255. 
Attorney General as required by section 355, Revised Statutes, as 
amended; and procurement and installation of equipment, appliances, 
and machine tools in public or private plants; $3,034,660,000, to re-
main available until expended: Provided^ That during the current 
fiscal year there may be merged with this appropriation not to exceed 
$165,000,000 of unobligated balances of appropriations previously 
granted for "Aircraft and related procurement". 
SHIPBUILDING AND CONVERSION, NAVY 
For expenses necessary for the construction, acquisition, or conver-
sion of vessels as authorized by law, including armor and armament 
therefor, plant equipment, appliances, and machine tools, and installa-
tion thereof in public or private plants; procurement of critical long 
leadtime components and designs for vessels to bs constructed or 
converted in the future; and expansion of public and private plants, 
including land necessary therefor, and such land, and interests therein, 
may be acquired and construction prosecuted thereon prior to approval 
of title by the Attorney General as required by section 355, Revised 
Statutes, as amended; $2,919,200,000, and, in addition, $20,000,000 
which shall be derived by transfer from the Navy industrial fund; to 
remain available until expended. 
76 STAT. ] 
PUBLIC LAW 87-577-AUG. 9, 1962 
325 
OTHER PROCUREMENT, NAVY 
For procurement, production, and modernization of support equip-
ment, and materials not otherwise provided for; Navy ordnance and 
ammunition (except ordnance for new aircraft, new ships, and ships 
authorized for conversion) ; purchase of not to exceed one thousand 
six hundred and forty-six passenger motor vehicles (including one 
medium sedan at not to exceed $3,000) for replacement only; expan-
sion of public and private plants, including the land necessary there-
for, and such lands, and interests therein may be acquired, and con-
struction prosecuted thereon prior to approval of title by the Attorney 
General as required by section 355, Revised Statutes, as amended; and 
40 use 255. 
procurement and installation of equipment, appliances, and machine 
tools in public or private plants; $903,600,000, to remain available 
until expended. 
PROCUREMENT, MARINE CORPS 
For expenses necessary for the procurement, manufacture, and modi-
fication of missiles, armament, ammunition, military equipment, and 
vehicles for the Marine Corps, including purchase of not to exceed 
four hundred sixty-four passenger motor vehicles which shall be for 
replacement only, $256,000,000, to remain available until expended. 
AIRCRAFT PROCUREMENT, AIR FORCE 
For construction, procurement, and modification of aircraft, and 
equipment, including armor and armament, specialized ground han-
dling equipment, and training devices, spare parts, and accessories 
therefor; specialized equipment; expansion of public and private 
plants, Government-owned equipment and installation thereof in 
such plants, erection of structures, and acquisition of land without 
regard to section 9774 of title 10, United States Code, for the foregoing 
70A stat. 590. 
purposes, and such land, and interests therein, may be acquired and 
construction prosecuted thereon prior to the approval of title by the 
Attorney General as required by section 355, Revised Statutes, as 
amended; reserve plant and equipment layaway; and other expenses 
necessary for the foregoing purposes, including rents and transporta-
tion of things; $3,562,400,000, to remain available until expended: 
Provided^ That effective July 1, 1962, the unexpended balances of 
the appropriation for "Airlift modernization. Air Force" shall be 
merged with this appropriation: Provided 
further^ 
That 
funds 
restricted to procurement of long-range bombers in this appropriation 
for fiscal year 1962 shall not be available for obligation after June 
30,1962. 
MISSILE PROCUREMENT, AIR FORCE 
For construction, procurement, and modification of missiles, rockets, 
and related equipment, including spare parts and accessories therefor, 
ground handling equipment, and training devices; expansion of public 
and private plants. Government-owned equipment and installation 
thereof in such plants, erection of structures, and acquisition of land 
without regard to section 9774 of title 10, United States Code, for the 
foregoing purposes, and such land, and interests therein, may be 
acquired and construction prosecuted thereon prior to the approval of 
title by the Attorney General as required by section 355, Revised 
Statutes, as amended; reserve plant and equipment layaway; and 
other expenses necessary for the foregoing purposes, including rents 
and transportation of things; $2,459,000,000, to remain available until 
expended. 
326 
PUBUC LAW 87-577-AUG. 9, 1%2 
[76 STAT. 
OTHER PROCUREMENT, AIR FORCE 
For procurement and modification of equipment (including ground 
guidance and electronic control equipment, and ground electronic and 
communication equipment), and supplies, materials, and spare parts 
therefor, not otherwise provided for; the purchase of not to exceed two 
thousand four hundred and thirty-four passenger motor vehicles, for 
replacement only ^including ten medium sedans at not to exceed $3,000 
each); and expansion of puolic and private plants, Government-owned 
equipment and installation thereof in such plants, erection of struc-
tures, and acquisition of land, without regard to section 9774 of title 
70A Stat. 590. 
10, United States Code, for the foregoing purposes, and such land, and 
interests therein, may be acquired and construction prosecuted thereon 
prior to the approval of title by the Attorney General as required by 
40 use 255. 
section 355, Revised Statutes, as amended; $956,250,000, to remain 
available until expended. 
PROCUREMENT, DEFENSE AGENCIES 
For expenses of activities and agencies of the Department of Defense 
(other than the military departments and the Office of Civil Defense) 
necessary for pi*ocurement, production, and modification of equipment, 
supplies, materials and spare parts therefor not otherwise provided 
for; purchase of thirty-nine passenger motor vehicles (including two 
medium sedans at not to exceed $3,000 each) for replacement only; 
expansion of public and private plants, equipment and installation 
thereof in such plants, erection of structures, and acquisition of land 
for the foregoing purposes, and such land and interest therein may be 
acquired and construction prosecuted thereon prior to the approvalof 
title by the Attorney General as required by section 355, Revised 
Statutes, as amended; $36,000,000, to remain available until expended. 
TITLE IV 
RESEARCH, DEVELOPMENT, TEST, AND EVALUATION 
RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, ARMY 
For expenses necessary for basic and applied scientific research, 
development, test, and evaluation, including maintenance, rehabilita-
tion, lease, and operation of facilities and equipment, as authorized 
by law, $1,319,500,000, to remain available until expended. 
RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, NAVY 
For expenses necessary for basic and applied scientific research, 
development, test, and evaluation, including maintenance, rehabili-
tation, lease, and operation of facilities and equipment, as authorized 
by law, $1,475,958,000, to remain available until expended. 
RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, AIR FORCE 
For expenses necessary for basic and applied scientific research, 
development, test, and evaluation, including maintenance, rehabilita-
tion, lease, and operation of facilities and equipment,^ authorized by 
law, $3,632,100,000, to remain available until expended: Providea^ 
That of the funds available in this appropriation account $157,000,000 
shall be available only for the Dyna-Soar program and $362,600,000 
shall be available only for the RS-70 program. 
n-H^i',t,Tt ^-;S 
76 STAT. ] 
PUBLIC LAW 87-577-AUG. 9, 1962 
327 
EESEAKOH, DEVELOPMENT, TEST, AND EVALUATION, DEFENSE AGENCIES 
For expenses of activities and agencies of the Department of Defense 
(other than the military departments and the Office of Civil Defense), 
necessary for basic and applied scientific research, development, test, 
and evaluation; advanced research projects as may be designated and 
determined by the Secretary of Defense, pursuant to law; maintenance, 
rehabilitation, lease, and operation of facilities and equipment, as 
authorized by law, to remain available until expended; $444,000,000: 
Provided^ That such amounts as may be determined by the Secretary 
of Defense to have been made available in other appropriations avail-
able to the Department of-Defense during the current fiscal year for 
programs related to advanced research may be transferred to and 
merged with this appropriation to be available for the same purposes 
and time period: Provided further^ That such amounts of this appro-
priation as may be determined by the Secretary of Defense may be 
transferred to carry out the purposes of advanced research to those 
appropriations for military functions under the Department of 
Defense which are being utilized for related programs, to be merged 
with and to be available for the same time period as the appropriation 
to which transferred: Provided further^ That effective July 1, 1962, 
the unexpended balances of the appropriation "Salaries and Expenses, 
Advanced Eesearch Projects Agency, Department of Defense" shall be 
merged with this appropriation. 
EMERGENCY FUND, DEFENSE 
For transfer by the Secretary of Defense, with the approval of the 
Bureau of the Budget, to any appropriation for military functions 
under the Department of Defense available for research, development, 
test, and evaluation, or procurement or production related thereto, to 
be merged with and to be available for the same purposes, and for the 
same time period, as the appropriation to which 
transferred, 
$150,000,000, and, in addition, not to exceed $150,000,000, to be used 
upon determination by the Secretary of Defense that such funds can 
be wisely, profitably, and practically used in the interest of national 
defense and to be derived by transfer from such appropriations avail-
able to the Department of Defense for obligation during the current 
fiscal year as the Secretary of Defense may designate: Provided^ That 
any appropriations transferred shall not exceed 7 per centum of the 
appropriation from which transferred. 
TITLE V 
GENERAL PROVISIONS 
SEC. 501. During the current fiscal year, the Secretary of Defense 
Experts or con-
and the Secretaries of the Army, Navy, and Air Force, respectively, *"^*"**«-
if they should deem it advantageous to the national defense, and if in 
their opinions the existing facilities of the Department of Defense 
are inadequate, are authorized to procure services in accordance with 
section 15 of the Act of August 2, 1946 (5 U.S.C. 55a), under regula- 
eo stat. sio. 
tions prescribed by the Secretary of Defense, and to pay in connection 
therewith travel expenses of individuals, including actual transporta-
tion and per diem in lieu of subsistence while traveling from their 
homes or places of business to official duty station and return as may 
be authorized by law: Provided^ That such contracts may be renewed 
annually. 
SEC. 502. During the current fiscal year, provisions of law prohibit- 
Nonciti«eni». 
ing the payment of compensation to, or employment of, any person 
.'xH -^stS AO 
328 
PUBLIC LAW 87-577-AUG. 9, 1962 
[76 STAT. 
Availability of 
appropriations. 
Restriction. 
Post, p. 843. 
Prisoners of 
war, etc. 
not a citizen of the United States shall not apply to personnel of the 
Department of Defense. 
SEC. 503. Appropriations contained in this Act shall be available 
for insurance of official motor vehicles in foreign countries, when 
required by laws of such countries; payments in advance of expenses 
determined by the investigating officer to be necessary and in accord 
with local custom for conducting investigations in foreign countries 
incident to matters relating to the activities of the department con-
cerned ; reimbursement of General Services Administration for secu-
rity guard services for protection of confidential files; reimbursement 
of the Federal Bureau of Investigation for expenses in connection 
with investigation of defense contractor personnel; and all necessary 
expenses, at the seat of government of the United States of America 
or elsewhere, in connection with communication and other services 
and supplies as may be necessary to carry out the purposes of this 
Act: Provided, That no appropriation contained in this Act, and no 
funds available from prior appropriations to component departments 
and agencies of the Department of Defense, shall be used to pay tuition 
or to make other payments to educational institutions in connection 
with the instruction or training of file clerks, stenographers, and 
typists receiving, or prospective file clerks, stenographers, and typists 
who will receive compensation at a rate below the minimum rate of 
pay for positions allocated to grade GS-5 under the Classification Act 
of 1949, as amended. 
SEC. 504. Any appropriation available to the Army, Navy, or the 
Air Force may, under such regulations as the Secretary concerned 
may prescribe, be used for expenses incident to the maintenance, pay, 
and allowances of prisoners of war, other persons in Army, Navy, or 
Air Force custody whose status is determined by the Secretary con-
cerned to be similar to prisoners of war, and persons detained in such 
custody pursuant to Presidential proclamation. 
SEC. 505. Appropriations available to the Department of Defense 
for the current fiscal year for maintenance or construction shall be 
available for acquisition of land as authorized by section 2672 of title 
10, United States Code. 
SEC. 506. Appropriations for the Department of Defense for the 
current fiscal year shall be available, (a) except as authorized by the 
64 Stat. 1100. 
Act of September 30, 1950 (20 U.S.C. 236-244), for primary and 
secondary schooling for minor dependents of military and civilian 
personnel of the Department of Defense residing on military or naval 
installations or stationed in foreign countries, as authorized for the 
Navy by section 7204 of title 10, United States Code, in amounts not 
exceeding an average of $280 per student, when the Secretary of the 
Department concerned finds that schools, if any, available in the 
locality, are unable to provide adequately for the education of such 
dependents; (b) for expenses in connection with administration of 
occupied areas; (c) for payment of rewards as authorized for the 
Navy by section 7209(a) of title 10, United States Code, for informa-
tion leading to the discovery of missing naval property or the recovery 
thereof; (d) for payment of deficiency judgments and interests thereon 
arising out of condemnation proceedings; (e) for payment of rentals 
for special purpose space at the seat of government and, in administer-
ing the provisions of 43 U.S.C. 315q, rentals may be paid in advance. 
SEC. 507. Appropriations for the Department of Defense for the 
current fiscal year shall be available for: (a) donations of not to exceed 
$25 to each prisoner upon each release from confinement in military 
or contract prison and to each person discharged for fraudulent en-
listment; (b) authorized issues of articles to prisoners, applicants-for 
enlistment and persons in military custody; (c) subsistence of selective 
Land acquisi-
tion. 
72 Stat. 1459. 
Schooling for 
dependents. 
70A Stat. 442. 
Occupied areas. 
Rewards. 
70A Stat. 444. 
Deficiency judg-
ments. 
Special purpose 
space. 
56 Stat. 654. 
Articles for pris-
oners, etc. 
76 STAT. ] 
PUBLIC LAW 87-577-AUG. 9, 1962 
329 
service registrants called for induction, applicants for enlistment, pris-
oners, civilian employees as authorized by law, and supernumeraries 
when necessitated by emergent military circumstances; (d) reimburse-
ment for subsistence of enlisted personnel while sick in hospitals; (e) 
expenses of prisoners confined in nonmilitary facilities; (f) military 
courts, boards, and commissions; (g) utility services for buildings 
erected at private cost, as authorized by law, and buildings on military 
reservations authorized by regulations to be used for welfare and 
recreational purposes; (h) exchange fees, and losses in the accounts 
of disbursing officers or agents in accordance with law; and (i) 
expenses of Latin-American cooperation as authorized for the Navy 
by law (10 U.S.C. 7208) : Provided, That section 212 of the Act of 
June 30, 1932 (5 U.S.C. 59a), shall not apply to retired military per-
sonnel on duty at the United States Soldiers' Home. 
SEC. 508. Insofar as practicable, the Secretary of Defense shall 
assist American small business to participate equitably in the furnish-
ing of commodities and services financed with funds appropriated 
under this Act by making available or causing to be made available to 
suppliers in the United States, and particularly to small independent 
enterprises, information, as far in advance as possible, with respect to 
purchases proposed to be financed with funds appropriated under 
this Act^ and by making available or causing to be made available to 
purchasing and contracting agencies of the Department of Defense 
mformation as to commodities and services produced and furnished 
bj^ small independent enterprises in the United States, and by other-
wise helping to give small business an opportunity to participate in 
the furnishing of commodities and services financed with funds appro-
priated by this Act. 
SEC. 509. No appropriation contained in this Act shall be available 
for expenses of operation of messes (other than organized messes the 
operating expenses of which are financed principally from nonappro-
priated funds) at which meals are sold to officers or civilians except 
under regulations approved by the Secretary of Defense, which shall 
(except under unusual or extraordinary circumstances) establish rates 
for such meals sufficient to provide reimbursement of operating ex-
penses and food costs to the appropriations concerned: Provided, That 
officers and civilians in a travel status receiving a per diem allowance 
in lieu of subsistence shall be charged at the rate of not less than 
$2.50 per day: Provided further, That for the purposes of this section 
payments for meals at the rates established hereunder may be made 
in cash or by deductions from the pay of civilian employees: Provided 
further, That members of organized nonprofit youth groups sponsored 
at either the national or local level, when extended the privilege of 
visiting a military installation and permitted to eat in the general 
mess by the commanding officer of the installation, shall pay the 
commuted ration cost of such meal or meals. 
SEC. 510. No part of any appropriation contained in this Act shall 
be available until expended unless expressly so provided elsewhere 
in this or some other appropriation Act. 
SEC. 511. Appropriations of the Department of Defense available 
for operation and maintenance, may be reimbursed during the current 
fiscal year for all expenses involved in the preparation for disposal 
and for the disposal of military supplies, equipment, and materiel, 
and for all expenses of production of lumber or timber products pur-
suant to section 2665 oi title 10, United States Code, from amounts 
received as proceeds from the sale of any such property: Provided^ 
That a report of receipts and disbursements under this limitation shall 
be made quarterly to the Committees on Appropriations of the Con-
Provided further. That no funds available to agencies of the 
70A Stat. 443. 
47 Stat. 406; 
69 Stat. 498. 
Assistance to 
small business. 
Mess operations. 
70A Stat. 149. 
Report to con-
gressional com-
mittees. 
srress: 
330 
PUBLIC LAW 87-577-AUG. 9, 1962 
[76 STAT. 
Military appro-
priations, exemp-
tion authority. 
31 u s e 665. 
Military person-
nel, increase. 
Commissary 
stores. 
Proficiency fly-
ing. 
Department of Defense shall be used for the operation, acquisition, or 
construction of new facilities or equipment for new facilities in the 
continental limits of the United States for metal scrap baling or 
shearing or for melting or sweating aluminum scrap unless the Secre-
tary of Defense or an Assistant Secretary? of Defense designated by 
him determines, with respect to each facility involved, that the opera-
tion of such facility is in the national interest. 
SEC. 512. (a) During the current fiscal year, the President may 
exempt appropriations, funds, and contract authorizations, available 
for military functions under the Department of Defense, from the 
provisions of subsection (c) of section 3679 of the Eevised Statutes, as 
amended, whenever he deems such action to be necessary in the in-
terests of national defense. 
(b) Upon determination by the President that such action is neces-
sary, the Secretary of Defense is authorized to provide for the cost of 
an airborne alert as an excepted expense in accordance with the pro-
visions of Revised Statutes 3732 (41 U.S.C. 11). 
(c) Upon determination by the President that it is necessary to 
increase the number of military personnel on active duty beyond 
the number for which funds are provided in this Act, the Secretary 
of Defense is authorized to provide for the cost of such increased mili-
tary personnel, as an excepted expense in accordance with the provi-
sions of Revised Statutes 3732 (41 U.S.C. 11). 
SEC. 513. No appropriation contained in this Act shall be available 
in connection with the operation of commissary stores of the agencies 
of the Department of Defense for the cost of purchase (including 
commercial transportation in the United States to the place of sale 
but excluding all transportation outside the United States) and 
maintenance of operating equipment and supplies, and for the actual 
or estimated cost of utilities as may be furnished by the Government 
and of shrinkage, spoilage, and pilferage of merchandise under the 
control of such commissary stores, except as authorized under regu-
lations promulgated by the Secretaries of the military departments 
concerned, with the approval of the Secretary of Defense, which regu-
lations shall provide for reimbursement therefor to the appropriations 
concerned and, notwithstanding any other provision of law, shall 
provide for the adjustment of the sales prices in such commissary 
stores to the extent necessary to furnish sufficient gross revenue from 
sales of commissary stores to make such reimbursement: Provided^ 
That under such regulations as may be issued pursuant to this section 
all utilities may be furnished without cost to the commissary stores 
outside the continental United States and in Alaska: Provided 
further^ 
That no appropriation contained in this Act shall be available in 
connection with the operation of commissary stores within the con-
tinental United States unless the Secretary of Defense has certified 
that items normally procured from commissary stores are not other-
wise available at a reasonable distance and a reasonable price in 
satisfactory quality and quantity to the military and civilian employees 
of the Department of Defense. 
SEC. 514. Notwithstanding any other provision of law. Executive 
order, or regulation, no part of the appropriations in this Act shall 
be available for any expenses of operating aircraft under the juris-
diction of the Armed Forces for the purpose of proficiency flying 
except in accordance with the regulations issued by the Secretaries of 
the Departments concerned and approved by the Secretary of Defense 
which shall establish proficiency standards and maximum and mini-
mum flying hours for this purpose: Provided^ That without regard to 
any provision of law or Executive order prescribing minimum flight 
requirements, such regulations may provide for the payment of flight 
76 STAT. ] 
PUBLIC LAW 87-577-AUG. 9, 1962 
331 
pay at the rates prescribed in section 204(b) of the Career Compensa-
tion Act of 1949 (63 Stat. 802) as amended, to certain members of the 
69 stat. 20; 
Armed Forces otherwise entitled to receive flight p a j during the ^^37*usc^ ri's 
current fiscal year (1) who have held aeronautical ratings or designa-
tions for not less than fifteen years, or (2) whose particular assignment 
outside the United States or in Alaska makes it impractical to partici-
pate in regular aerial flights. 
SEC. 515. No part of any appropriation contained in this Act shall 
Household goods. 
be available for expense of transportation, packing, crating, temporary ti^V.^' restric-
storage, drayage, and unpacking of household goods and personal 
effects in excess of eleven thousand pounds net in any one shipment: 
Provided^ That the limitations imposed herein shall not be applicable 
in the case of members transferred to or serving in stations outside 
the continental United States or in Alaska under orders relieving 
them from a duty station within the United States prior to July 10, 
1952, and who are returned to the United States under orders relieving 
them from a duty station beyond the United States or in Alaska on or 
after July 1,1953. 
SEC. 516. Vessels under the jurisdiction of the Department of Com- 
vessel transfer. 
rnerce, the Department of the Army, the Department of the Air Force, 
or the Department of the Navy may be transferred or otherwise made 
available without reimbursement to any such agencies upon the request 
of the head of one agency and the approval of the agency having 
jurisdiction of the vessels concerned. 
SEC. 517. None of the funds provided in this Act shall be available 
Legal training, 
for training in any legal profession nor for the payment of tuition ["•*"t^<'"<»«-
for training in such profession: Provided^ That this limitation shall 
not apply to the off-duty training of military personnel as prescribed 
by section 521 of this Act. 
SEC. 518. Not more than 20 per centum of the appropriations in 
obligated funds, 
lliis Act which are limited for obligation during the current fiscal ^^^^' 
year shall be obligated during the last two months of the fiscal year: 
Provided^ That this section shall not apply to obligations for support 
of active duty training of civilian components or summer camp train-
ing of the Reserve Officers' Training Corps. 
SEC. 519. During the current fiscal year the agencies of the Depart- 
use o
f foreign 
ment of Defense may accept the use of real property from foreign ^^^ property, 
countries for the United States in accordance with mutual defense 
agreements or occupational arrangements and may accept services 
furnished by foreign countries as reciprocal international courtesies 
or as services customarily made available without charge; and such 
agencies may use the same for the support of the United States forces 
in such areas without specific appropriation therefor. 
In addition to the foregoing, agencies of the Department of Defense 
may accept real property, services, and commodities from foreign 
countries for the use of the United States in accordance with mutual 
defense agreements or occupational arrangements and such agencies 
may use the same for the support of the United States forces in such 
areas, without specific appropriation therefor: Provided^ That within 
Reports to oon-
fhirty days after the end of each quarter the Secretary of Defense Stte"es"and*'°""" 
shall render to the Committees on Appropriations of the Senate and Budget Bureau. 
the House of Representatives and to the Bureau of the Budget a full 
report of such property, supplies, and commodities received during 
such quarter. 
SEC. 520. During the current fiscal year, appropriations available 
Research and 
to the Department of Defense for research and development may be development. 
used for the purposes of section 2353 of title 10, United States Code, 
70A stat. 134. 
and for purposes related to research and deA^elopment for which 
3a2 
PUBLIC LAW 87-577-AUG. 9, 1962 
[76 STAT. 
Tuition pay-
ments, etc. 
ROTC. 
Loyalty require-
ment. 
Procurement of 
products, restric-
tion. 
Bakery, laundry 
facilities, etc. 
Restriction. 
Air mail. 
Reimbursement. 
Foreign quarters. 
66 Stat. 622. 
Furnishings, re-
sale. 
expenditures are specifically authorized in other appropriations of the 
service concerned. 
SEC, 521. No appropriation contained in this Act shall be available 
for the payment of more than 75 per centum of charges of educational 
institutions for tuition or expenses for off-duty training of military 
personnel, nor for the payment of any part of tuition or expenses for 
such training for commissioned personnel who do not agree to remain 
on active duty for two years after completion of such training. 
SEC. 522. No part of the funds appropriated herein shall be 
expended for the support of any formally enrolled student in basic 
courses of the senior division, Keserve Officers' Training Corps, who 
has not executed a certificate of loyalty or loyalty oath in such form 
as shall be prescribed by the Secretary of Defense. 
SEC. 523. No part of any appropriation contained in this Act shall 
be available for the procurement of any article of food, clothing, 
cotton, woven silk and woven silk blends, spun silk yarn for cartridge 
cloth, or wool (whether in the form of fiber or yarn or contained m 
fabrics, materials, or manufactured articles) not grown, reprocessed, 
reused, or produced in the United States or its possessions, except to 
the extent that the Secretary of the Department concerned shall deter-
mine that a satisfactory quality and sufficient quantity of any articles 
of food or clothing or any form of cotton, woven silk and woven silk 
blends, spun silk yarn for cartridge cloth, or wool grown, reprocessed, 
reused, or produced in the United States or its possessions cannot be 
procured as and when needed at United States market prices and 
except procurements outside the United States in support of combat 
operations, procurements by vessels in foreign waters and emergency 
procurements or procurements of perishable foods by establishments 
located outside the United States for the personnel attached thereto: 
Provided^ That nothing herein shall preclude the procurement of foods 
manufactured or processed in the United States or its possessions: 
Provided further^ That no funds herein appropriated shall be used 
for the payment of a price differential on contracts hereafter made 
for the purpose of relieving economic dislocations: Provided further,^ 
That none of the funds appropriated in this Act shall be used except 
that, so far as practicable, all contracts shall be awarded on a formally 
advertised competitive bid basis to the lowest responsible bidder. 
SEC. 524. None of the funds appropriated in this Act shall be used 
for the construction, replacement, or reactivation of any bakery, 
laundry, or dry-cleaning facility in the United States, its Territories 
or possessions, as to which the Secretary of Defense does not certify 
in writihg, giving his reasons therefor, that the services to be fur-
nished by such facilities are not obtainable from commercial sources 
at reasonable rates. 
SEC. 525. During the current fiscal year, aj)propriations of the De-
partment of Defense shall be available for reimbursement to the Post 
Office Department for payment of costs of commercial air transpor-
tation of military mail between the United States and foreign coun-
tries. 
SEC. 526. Appropriations of the Department of Defense avail-
able for the payment of rental allowances shall be available for the 
leasing of quarters in foreign countries* constructed under the author-
ity of section 302 of Public Law 534, approved July 14, 1952, for 
assignment as public quarters to military personnel of the Department 
of Defense. 
SEC. 527. Appropriations contained in this Act shall be available 
for the purchase of household furnishings and automobiles from mili-
tary and civilian personnel on duty outside the continental United 
States, for the purpose of resale at cost to incoming personnel, and 
76 STAT. ] 
PUBLIC LAW 87-577-AUG. 9, 1962 
333 
for providing furnishings, without charge, in other than public quar-
ters occupied by military or civilian personnel of the Department 
of Defense on duty outside the continental United States or in Alaska, 
upon a determination, under regulations approved by the Secretary 
of Defense, that such action is advantageous to the Government. 
SEC. 528. During the current fiscal year appropriations available 
uniforms, 
to the Department of Defense for pay of civilian employees shall 
be available for uniforms, or allowances therefor, as authorized by the 
Act of September 1, 1954, as amended (5 U.S.C. 2131). 
es stat. in4. 
SEC. 529. During the current fiscal year, the Secretary of Defense 
Transfer o
f am-
shall, upon requisition of the National Board for the Promotion """"ion stock. 
of Eifie Practice, and without reimbursement, transfer from agen-
cies of the Department of Defense to the Board ammunition from 
stock or which has been procured for the purpose in such amounts 
as he may determine. 
Such appropriations of the Department of Defense available for 
obligation during the current fiscal year as may be designated by the 
Secretary of Defense shall be available for the travel expenses of 
military and naval personnel, including the reserve components, 
and members of the Reserve Officers' Training Corps attending re-
gional, national, or international rifle matches. 
SEC. 530. Funds provided in this Act for congressional liaison ac- 
congressional 
tivities of the Department of the Army, the Department of the Navy, "«is°" activities. 
the Department of the Air Force, and the Office of the Secretary 
of Defense shall not exceed $950,000: Provided^ That this amount 
shall be available for apportionment to the Department of the Army, 
the Department of the Navy, the Department of the Air Force, and 
the Office of the Secretary of Defense as determined by the Secre-
tary of Defense. 
SEC. 531. Of the funds made available by this Act for the services 
civii air fieet. 
of the Military Air Transport Service, $80,000,000 shall be available 
only for procurement of commercial air transportation service from 
carriers participating in the civil reserve air fleet program; and the 
Secretary of Defense shall utilize the services of such carriers which 
qualify as small businesses to the fullest extent found practicable: 
Provided, That the Secretary of Defense shall specify in such pro-
curement, performance characteristics for aircraft to be used based 
upon modern aircraft operated by the civil air fleet. 
SEC. 532. Not to exceed $11,600,000 of the funds made available in 
Motor vehicle 
this Act for the purpose sliall be available for the hire of motor *'^'"*-
vehicles: Provided, That the Secretary of Defense, under circum-
stances where the immediate movement of persons is imperative, may, 
if he deems it to be in the national interest, hire motor vehicles for 
such purpose without regard to this limitation. 
SEC. 533. Not less than $7,500,000 of the funds made available in this 
Travel expenses. 
Act for travel expenses in connection with temporary duty and perma-
nent change of station of civilian and military personnel of the 
Department of Defense shall be available only for the procurement 
of commercial passenger sea transportation service on American-flag 
vessels. 
SEC. 534. During the current fiscal year, appropriations available to 
civilian clothing, 
tlie Depaa'tment of Defense for Operation may be used for civilian 
clothing, not to exceed $40 in cost for enlisted personnel: (1) dis-
charged for misconduct, unfitness, unsuitability, or otherwise than 
honorably; (2) sentenced by a civil court to confinement in a civil 
prison or interned or discharged as an alien enemy; (3) discharged 
prior to completion of recruit training under honorable conditions 
for dependency, hardship, minority, disability, or for the convenience 
of the Government. 
334 
PUBLIC LAW 87-577-AUG. 9, 1962 
[76 STAT. 
Defense con-
tracts . 
Advertising 
costs. 
Limitation on 
fimds. 
Transfer of 
funds, authority. 
Notice to con-
gressional com-
mittees. 
Contract pay-
ments In foreign 
country. 
Housing. 
Ant«, p..237. 
42 u s e 1594a. 
Research proj-
ect grants, ex-
penses of re-
cipient. 
Use of privately 
owned shipyards. 
Short title. 
SEC. 535. No part of the funds appropriated herein shall be available 
for paying the costs of advertisuig by any defense contractor, except 
advertising for which payment is made from profits, and such adver-
tising shall not be considered a part of any defense contract cost. 
The 
prohibition contained in this section shall not apply with respect to 
advertising conducted by any such contractor, in compliance with 
regulations which shall be promulgated by the Secretary of Defense, 
solely for (1) the recruitment by that contractor of personnel required 
for the performance by the contractor of obligations arising under a 
defense contract, (2) the procurement of scarce items required by the 
contractor for the performance of a defense contract, or (3) the 
disposal of scrap or surplus materials acquired by the contractor in 
the performance of a defense contract. 
SEC. 536. Funds appropriated in this Act for maintenance and 
repair of facilities and installations shall not be available for acquisi-
tion of new facilities, or alteration, expansion, extension or addition 
of existing facilities, as defined in Department of Defense Directive 
7040.2, dated January 18, 1961, in excess of $25,000: Provided, 
That 
the Secretary of Defense may amend or change the said directive 
during the current fiscal year, consistent with the purpose of this 
section. 
SEC. 537. During the current fiscal year, the Secretary of Defense 
may, if he deems it vital to the security of the United States and in 
the national interest to further improve the readiness of the Armed 
Forces, including the reserve components, transfer under the authority 
and terms of the Emergency Fund an additional $200,000,000: Pro-
mded, That the transfer authority made available under the terms of 
the Emergency Fund appropriation contained in this Act is hereby 
broadened to meet the requirements of this section: Provided 
further^ 
That the Secretary of Defense shall notify the Appropriations Com-
mittees of the Congress promptly of all transfers made pursuant to 
this authority. 
SEC. 538. None of the funds appropriated in this Act may be used to 
make payments under contracts for any program, project, or activity 
in a foreign country unless the Secretary of Defense or his designee, 
after consultation with the Secretary of the Treasury or his designee, 
certifies to the Congress that the use, by purchase from the Treasury, 
of currencies of such country acquired pursuant to law is not feasible 
for the purpose, stating the reason therefor. 
SEC. 539. Transfers from appropriations available during the fiscal 
year 1963 for pay and allowances to the revolving fund "Acquisition, 
Rehabilitation, and Rental of Wlierry Act Housing" authorized pur-
suant to law (70 Stat. 1111) shall not exceed amoimts necessary to 
make mortgage payments, including interest, principal, and mortgage 
insurance premiums, with respect to housing acquired under that fond. 
SEC. 540. None of the funds provided herein shall be used to pay 
any recipient of a grant for the conduct of a research project an amount 
for indirect expenses in connection with such project in excess of 20 
per centum of the direct costs. 
SEC. 541. Of the funds made available in this Act for repair, alter-
ation, and conversion of naval vessels, at least 35 per centum shall be ^ 
available for such repair, alteration, and conversion in privatelyowned 
shipyards: Provided, That if determined by the Secretary of Defense 
to be inconsistent with the public interest based on urgency of require-
ment to have such vessels repaired, altered, or converted as required 
above, such work may be done in Navy or private shipyards as ha 
may direct. 
SEC. 542. This Act may be cited as the "Department of Defense 
Appropriation Act, 1963." 
Approved August 9, 1962.