AN ACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000100300005-7
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• Document Creation Date: November 11, 2016
• Document Release Date: November 3, 1998
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Public Law 138 - 84th Congress
Chapter 301 - 1st Session
S. 2090
Be it enacted by the Senate and Ilouse of Representatives of the
United States of America in Congress assembled, That this Act may Mutual
be cited as the "Mutual Security Act of 1955". seourity
SEC. 2. Title I, chapter 1, of the Mutual Security Act of 19:14, which Act of 1955.
relates to military assistance, is amended as follows :
(a) In section 103 (a), which relates to authorizations, acid "(1)" 68 Stat, 833.
after " (a) ", and add the following new paragraph : 22 use 1813.
"(2) In addition, there is hereby authorized to be appropriated to
the President to carry out the purposes of this chapter not to exceed
$1,133,000,000, to remain available until expended."
(b) In section 103 (b), after the word "chapter", insert "and of
section 124". 69 stat, 283.
(c). Section (c) is hereby repeated, and the following is 69 stat, 284. .103 substituted therefor :
"(c) When appropriations made pursuant to subsection (a) of
this section are used to furnish military assistance on terms of
repayment within ten years or earlier such assistance may be fur-
nished, notwithstanding sections 105, 141, and 142, to nations eligible
to purchase military equipment, materials, and services under sec-
tion 106."
(d) .''Emend section 105 (b) (1), which relates to conditions appli_ 22 use 1815,
cable to military assistance, to read as follow :
"(1) The Congress welcomes the recent progress in European
cooperation and reaffirms its belief in the necessity of further efforts
toward political federation, military integration, and economic uni-
fication as a means of building strength, establishing security, and
preserving peace in the North Atlantic area. In order to provide
further encouragement to such efforts, the Congress believes it essen-
tial, that this Act should be so administered as to support concrete
measures to promote greater political federation, military integration,
and economic, unification in Europe."
(e) In paragraphs (2) and (3) of section 105 (b), strike out "Near
East; Africa, and South Asia" and "the Far East and the Pacific"
and insert "Near East and Africa" and "Asia," respectively.
(f) In paragraphs (2) and (3) of section 105 (c), which relates to
geographic delivery ceilings, strike out ", Africa, and South Asia"
and "the Far East and the Pacific" and insert "and Africa" and
"Asia", respectively.
(g) In section 108, which relates to transfer of military equipmnent22 USC 1818.
to Japan, strike out "1955" and insert "1056".
Sac. 3. Title I, chapter 2, of the Mutual Security Act of 1954,
which relates to southeast Asia. and the western Pacific, and direct
forces support, is amended as follows:
(a) In section 121, which relates to southeast Asia and the western22 use 1831.
Pacific, strike out the fourth word of the third sentence, "section",
and insert. "title".
(b) Add after section 123 the following new section:
"SEC. 124. I)nhtr:cr Foacrs Scrrc;hrr.-There is hereby authorized
to be appropriated to the President for the fiscal year 1956 not to
exceed $317,200,000 to provide assistance in the form of direct forces
support to be delivered or rendered directly to the military forces of
nations eligible for military assistance under chapter 1 of this title.
The President may, notwithstanding the provisions of section 501,
consolidate all or any part of appropriations made pursuant to this
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Pub. Law 138 -2-
with appropriations made pursuant to section 103. Programs
authorized by this section may be administered in accordance with
the provisions of chapter 1 or chapter 3 of this title."
SE(,. 4. Title I, chapter 3, of the Mutual Security Act of 1954,
22 USC 1841. which relates to defense support, is amended by adding to section 131
the following new subsections:
"(c) There is hereby authorized to be appropriated to the Presi-
dent for the fiscal year 1956 to carry out the provisions of this section,
not to exceed---
"(1) $92,000,000 for Europe (excluding Greece and Turkey)
"(2) $102,500,000 for the Near East (including Greece and
Turkey) and Africa; and
"(3) $827,800,0)0 for Asia.
"Funds made available for assistance to Korea from appropria-
69 Stat. 284. tions authorized by this section may be used in accordance with the
69 stag, 285. t t )tictible provisions of section 132 of this Act.
Marine in- in prove mg assistance in the procurement of commodities in
surance.the 1?nited States, united States dollars shall be made available for
marine insurance on such commodities where such insurance is placed
on a competitive basis in accordance with normal trade practice pre-
vailing prior to the outbreak of World War II: Provided, That in
the event a participating country, by statute, decree, rule, or regula-
tion, discriminates against any marine insurance company authorized
to do business in any State of the United States, then commodities
purchased with funds provided hereunder and destined for such coun-
try shall be insured in the (Tuited States against marine risk with a
company or companies authorized to do a marine insurance business
in any State of the United States."
SE(J. 5. Title I, chapter 4, of the Mutual Security Act of 1954, which
relates to general provisions relating to mutual defense assistance, is
22 Usc 3.852. amended by changing section 142, which relates to agreements, as
follows : After "SE x.142. AGREE:3ME:NTS.-" insert "(a) "'; .in paragraph
10 strike out the comma and the word "or" where they appear after
the phrase "any such assistance", and insert in lieu thereof "and";
strike out the word "and" at the end of paragraph (10) and change
the semicolon preceding that word to a period; and change the portion
of paragraph (11) preceding subparagraph (i) thereof to read as
follows ;
"(b) In ca'.cs where any commodity is to be furnished on a grant
basis under chapter 2 or chapter 3 of title I or under title II of this
Act under arrangements which will result in the accrual of proceeds
to the recipient nation from the import or sale thereof, such assistance
shall not be furnished unless the recipient nation shall have agreed to
establish a special account, and-".
Sic. 6. Title II of the Mutual Security Act of 1054, which relates
to development assistance, is amended as follows:
22 USC 1871. (a) (1) In section 201 (a), which relates to authorization., strike
out "South Asia" in paragraph 2 and insert "Asia"; before the period
in paragraph 3 insert "and to assist in maintaining economic and
political stability in the area"; and in lieu of the last sentence insert
the following: "Such assistance may be furnished on such terms and
conditions as the President may specify and shall emphasize loans
rather than grants wherever possible.".
(2) Add to section 201 the following new subsection:
'(c) There is hereby authorized to%e appropriated to the Presi-
dent for the fiscal year 195G not to exceed $73,000,000, $71,000,000, and
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$38,000,000 to furnish assistance under paragraphs (1), (2), and (3),
respectively of subsection (a) of this section."
(b) In section 202 which relates to administration, add at the end 22 use 1872.
thereof the following new sentence: "The authority provided in sec-
tion 307 may be exercised for purposes of furnishing assistance under
section 201."
SEC. 7. Title III of the Mutual Security Act of 1954, which relates
to technical cooperation, is amended as follows:
(a) In section 304, which relates to authorization, insert "(a)" 22 USC 1894.
before the first sentence and add the following new subsection:
"(b) There is hereby authorized to be appropriated to the Presi-
dent for the fiscal year 1956 not to exceed $146,500,000 for technical
cooperation programs in the hear East and Africa, Asia and Latin
America."
(b) In section'306, which relates to multilateral technical coopera- 22 USC 1896.
tion :
(1) Insert the following before the semicolon at the end of para-
graph (a) : "; in addition, $24,000,00(} for the fiscal year 1956 for
contributions to the United Nations Expanded Program of Technical
Assistance". 69 Stat. 285.
(2) Insert the following before the period at the end of paragraph e9 Stat. 286.
(b) : "; in addition, $1,500,000 for the fiscal year 195(1 for contributions
to the technical cooperation programs of the Organization of Amer-
ican States".
(c) In section 308, which relates to the International Development 22 USC 1898.
Advisory Board, insert ", or at the. applicable rate prescribed in the
Standardized Government Travel Regulations, as amended from time
to time, whichever is higher," after "not to exceed $10 per diem".
SF,c. 8. Title IV of the Mutual Security Act of 1954, which relates
to other programs, is amended as follows:
(a) In section 401, which. relates to special fund, insert "(a)" 22 use 1921.
before the first sentence; strike out "$150,000,000" in the first sentence
and insert "$50,000,000, in addition to the funds authorized to be appro-
priated under subsection (b) hereof,"; in the next to last sentence
strike out "section" and insert "Act"; and add the following new
subsection at the end thereof :
"(b) There is hereby authorized to be appropriated to the President
for the fiscal year 1956 $100,000,000 for use in accordance. with sub-
section (a) of this section."
(b) In section 4U2, which relates to the sale of surplus agricultural 22 1SC 1922.
commodities, strike out "not less than $350,000,000" and insert in lieu
thereof "for the fiscal year 1956, not less than $300,000,000".
(c) In section 403, which relates to special assistance in joint control 22 use 1923.
areas, insert "(a)" before the first sentence: insert "at the time of the
enactment of this Act" in the first sentence after "responsibility"; and
add the following new subsection :
"(b) There is hereby authorized to be appropriated to the President
for the fiscal year 19:16 not to exceed $21,000,000 to carry out this
section."
(d) Amend section 405, which relates to movement of migrants and 22 use 1925.
refugees, as follows:
(1) Change the heading to "acids tr rs, REFL`Gi:ES, AN?n ESGArErs".
(2) Amend subsection (c) to read as follows:
"(c) There is hereby authorized to be appropriated for the fiscal
year 1956 not to exceed $1,400,000 for contributions to the United
Nations Refugee Fund."
(3) Add the following new subsection:
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Escapees. "(d) There is hereby anillorized to be appropriated to the President
for the fiscal year 1956 not to exceed $6,000,000 for continuation of
activities, including care, training, and resettlement, which have been
undertaken for selected escapees under section 401 of this Act."
22 Usc 1926. (e) In section 406, which relates to children's welfare insert "(a)"
before the first sentence and acid the following new subsection
"(b) There is hereby authorized to be appropriated for the fiscal
vear 1956) not to exceed $14,500,000 for contributions to the United
Nations Children's Fund."
22 USC 1927. (f) In section 407, which relates to Palestine refugees in the Near
East, insert "(a) " before the first sentence and add the following new
subsection :
"(b) There is hereby authorized to be appropriated to the President
for the fiscal year 1956 not to exceed $65.0C0,000 to be used to make
contributions to the United Nations Relief and WTorks Agency for
Palestine Refugees in the Near East."
22 USC 1929. (g) Amend section 409, which relates to ocean freight charges,
as follows:
(1) Insert the following new sentence at the end of subsection (c),
which relates to ocean freight charges on shipments by ITnited States
voluntary nonprofit relief agencies: "There is hereby authorized to
be appropriated to the President for the fiscal year 1950 not to exceed
69 star. 236. $2,0)0.000 to carry out the purpo ses of this section."
69 stair. 237. ('2) A mend su b section (d) to read as follows:
"(d) There is hereby authorized to be appropriated to tlhe President
for the fiscal year 1956 not to exceed $13,000,000 to pay ocean freight
charges on shipments of surplus agricultural commodities, including
commodities made available pursuant to any Act for the disposal
abroad of United States agricultural surpluses. In addition, any
funds made available under this Act may be used, in amounts deter-
mined by the President, for the purposes of this subsection."
22 Use 1930. (h) In section 410, which relates to Control Act expenses, insert
", and for the fiscal year 1956 not to exceed $1,175,000," after
"$1.+300,000''.
(i) (1) Change the title of section 411, which relates to admin-
istrative expenses to read "ADMINISTRATIVE AND OTHER EXPENSES".
22 USC 1931. (2) Amend section 411 (b) to read as follows:
"(b) There is hereby authorized to be appropriated to the Presi-
dent for the fiscal year 19:15 not to exceed $34,700,000, and for the
fiscal year 1956 not to exceed $35,225,000, for all necessary ,~idminis-
trative expenses incident to carrying out. the provisions of this Act
other than chapter 1 of title I and section 124.''
(:3) Add to section 411 the following new subsection
"(c) Funds made available for the purposes of this Act may be
used for compensation, al lowa nces, and travel of personnel, including
Foreign Service personnel whose services are utilized primarily for
the purposes of this Act, aid without regard to the provisions of any
other law, for printing and binding, and for expenditures outside the
continental limits of the 1 nitPd States for the procurement of sup-
plies and services and for other administrative and operating pur-
poses (other than compensation of personnel) without regard to such
laws. and regulations governing the obligation and expenditure of
Government funds as may be necessary to accomplish the purposes of
this Act."
(j) Add the following new sections :
"S3EC. 418. PRESIDEN'ls I (Nn colt ASIAN ECONOMIIU1EV1no1uIacNT.-
(a) The Congress of the I:Tnited States reaffirms the policy of the
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United States to contribute to international peace and security
through assisting the peoples of free, Asia in their efforts to attain
economic and social well-being, to safeguard basic rights and liberties,
and to protect their security and independence. The congress hereby
recognizes that fundamental to these goals is an expanding economic
growth of the free Asia area based upon self-help and mutual coop-
eration and full utilization of already existing resources and knowl-
edge. The Congress expresses the willingness of the people of the
United States to support the foregoing objectives to the extent to
which the countries in the area continue to make effective use of their
own resources anca external resources otherwise available to them.
"(b) In order to carry out the purposes of this section, there is
hereby authorized to be established a fund, to be known as the `Presi-
dent's Fund for Asian Economic Development.' (hereinafter referred
to as `the Fund') , and there is hereby authorized to be appropriated
to the President for the Fund an amount of $200,000,000, such amount
to remain available until June 30, 1958.
"(c) The President is .authorized to utilize the appropriations made
available for the Fund to accomplish in the free Asian area the policies
and purposes declared in this Act and to disburse them on such terms
and conditions, including transfer of funds, as he may specify to any
person, corporation, or other body of persons however designated, or
to any friendly foreign government, agency, or organization or group
of friendly governments or agencies as may be appropriate : Prov;ded,
however, That such assistance shall emphasize loans rather than 69 Stat. 287.
grants wherever possible, and not less than 50 per centum of the fund s 69 Stat. 288.
appropriated pursuant to this section shall be available only for fur-
nishing assistance on terms of repayment in accordance with the
provisions of section 505, and not more than 25 per centum of said
funds may be allocated for assistance to any one nation.
"(d) In utilizing the Fund the President shall give preference to
projects or programs that will clearly contribute to promoting greater
economic strength in the area as a whole or among a group or group
of countries of the area.
"SEC. 419. WORLD HEALTII ORGANIZATION.--Section 3 (a) of Public
Law 643, Eightieth Congress, approved June 14, 1948, as amended, is 62 Stat. 441.
hereby amended to read as follows: 22 IISC 290b.
"'(a) such sums as may be necessary for the payment by the United
States of its share of the expenses of the Organization as apportioned
by the Health Assembly in accordance with article 56 of the consti-
tution of the Organization, except I hat payments by the United States
for any fiscal year of the Organization after 1958 shall not exceed 331/3
per centum of the total assessments of active members of the Organiza-
tion for such fiscal year; and'."
SEC. 9. Title V, chapter 1, of the Mutual Security Act of 1954, which
relates to general provisions, is amended as follows :
(a) In section 502, which relates to use of foreign currency, in 22 USC 1754.
subsection (b) after the word ":upended," insert the words "and to the
Joint Committee on Atomic Energy and the Joint Committee on the
Economic Report,"; and in the proviso after the word "Senate" the
second time such word occurs, insert the words "or a joint committee
of the Congress".
(b) In section 503, subsection (b) is hereby repealed and subsection 22 USC 1755.
(c) is redesignated as "(b)".
(c) (1) Change the heading of section 505 to "LOAN ASSISTANCE 22 USC 1757.
AND SALES".
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(2) Amend section 505 (a) by inserting before the period at the
end thereof the following: "and shall emphasize loans rather than
grants wherever possible".
(3) Add the following sentence at the end of subsection (a) of
section 505: "Whenever commodities or services are sold for foreign
currencies the President, notwithstanding section 1415 of the Supple-
65 Stat. 562. mental Appropriation Act, 11)53, or any other provision of law, may
use or enter into arrangements with friendly nations or organizations
of nations to use such currencies for the purposes for which the fluids
providing the commodities or services which generated the currencies
were appropriated."
22 USC 1761. (d) In section 509, which relates to shipping on lTnrted States ves-
sels, add the following sentence at the end thereof : "The ocean traits-
portation between foreign countries of commodities, materials, and
equipment procured out of local currency funds trade available or
derived from fluids made available under this Act shall not be gov-
erned by the provisions of section 901 (b) of the Merchant Marine
68 Stat. 832,. Act of 1936, or any other law relating to the ocean transportation of
46 USC 1241. commodities, materials, and equipment on i'nited States flag vessels.''
Sin'. 10. Title V. chapter 2, of the Mutual Security Act of 1954,
which relates to organization and administration, is amended as
follows:
22 USC 1784. (a) In section 524 (a), amend subparagraph (3) to read as follows:
"('3) the supervision of and-item use by the recipient countries;".
22 USC 1785. (b) In the second sentence of section 525, which relates to the For-
eign Operations Administration, after "Foreign Operations Admin-
69 Stat. 288. istration" insert " including any function, office or entity thereof
69 stet. 289, Innis egret to any of Tier agency)"; and insert, before the period at
the end of said second sentence, the following: ": Pravvzded,That such
authority conferred by this sentence shall be exercised in accordance
with applicable laws and regulations relating to the Civil Service and
Veterans' Preference".
22 USC 1786. (c) Add at the end of section 526, which relates to minions and
,taffs abroad, the following new sentence: -If a Foreign Service
Officer shall be appointed by the President to a position under this
!-eetion, the period of his service in such capacity shall be considered
;as constituting an assignment for duty within the meaning of section
ante, p. 25. 571 of the Foreign Service Act of 11)4(1, as amended, and such person
shall not, by virtue of his acceptance of such an assignment, lose his
status as aForeign Service Officer."
22 USC 1790. (d) In section 53)) (a), which relates to experts and consultants or
Organizations thereof, insert "or at the applicable rate prescribed in
IIt el Stautdardized Government Travel Regulations, as amended from
time to time, whichever is higher," after "at a rate not to exceed $10".
22 USC 1794. (e) In section 534, wyhicli relates to reports, strike out "sections 504
mind 41:) (b)" in the last Sentence and insert ``sections 504, 413 (h),
amid 41s".
68 Stat. 864. Sinn'. 11. Title V', chapter 3, of the Mutual Security Act of 1954,
which relates to repeal and miscellaneous provisions., is amended by
.oldiug after section 547, the following new sections:
Sin'. 545. 1 *NKxrr.SDPA 13_V._vNCEA.-l'ne::pendecl balances of funds
heretofore made available under authority of this Act are hereby
authorized to be continued available for the general purposes tot'
which appropriated, aml otay he consolidated With appropriations
matte available beginning is fiscal year 1956 for the saute general
pnrl)oses muter the authority of this Act : ProrhleCl, hoarier, That
unexpended Ialances in excess of $2))0,000,000 not obligated by .Itule
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+30, 1955, in accordance with the provisions of section 1311 of the
Supplemental Appropriation Act, 1955 (Public Law 663, Eighty-
third Congress), or reserved in accordance with the provisions of 68 Stat. 830.
section 110 of the Mutual Security Appropriation Act, 1955 (Public 31 Use 200.
Law 778, Eighty-third Congress), are not authorized to be continued 68 stet. 1224.
available after such date. 22 USC 1819.
"SEC. 549. (a) STATEMENT OF CONGRESSIONAL POLICY.-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 reha-
bilitation of the nations of western Europe;
"(2) due in part to those programs, it has been possible for such
nations to achieve complete economic recovery and to regain their
military strength ; and
"(3) certain other friendly nations of the world remain in need of
assistance in order that they may defend themselves against aggres-
sion and contribute to the security of the free world,
those nations that have been assisted in their recovery should, in the
future, share with the United States to a greater extent the financial
burden of providing aid to those countries which are still in need of
assistance of the type provided under this Act-.
"(b) It is the sense of the Congress- that assistance under this Act
shall be administered so as to assist other peoples in their efforts to
achieve self-government or independence under circumstances which
will enable them to assume an equal station among the free nations of
the world and to fulfill their responsibilities for self-government o.
independence " -9 Stat. 289.
SEC. 12. It is hereby declared to be the continuing sense of'the Con- 69 Stat. 290.
gress that the Communist regime in China has not demonstrated its
willingness to fulfill the obligations contained in the Charter of the
United Nations and should not be recognized to represent China in the
United Nations.
Approved July 8, 1955.
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