MUTUAL SECURITY ACT OF 1960

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00965R000300200002-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 21
• Document Creation Date: December 15, 2016
• Document Release Date: August 27, 2003
• Sequence Number: 2
• Publication Date: May 6, 1960
• Content Type: REPORT

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86TH CONGRESS HOUSE OF REPRESENTATIVES REPORT
2d Session No. 1593
Mr. MORGAN, from the committee of conference, submitted the
following
CONFERENCE REPORT
The committee of conference on the disagreeing votes of the two
Houses on the amendment of the Senate to the bill (II.R. 11510) to
amend further the Mutual Security Act of 1954, as amended, and
for other purposes, having met, after full and free conference, have
agreed to recommend and do recommend to their respective Houses
as follows:
That the House recede from its disagreement to the amendment
of the Senate and agree to the same with an amendment as follows:
In lieu of the matter proposed to be inserted by the Senate amend-
ment insert the following: That this Act may be cited as the "Mutual
Security Act of 1960".
SEC. 2. Section 2 of the Mutual Security Act of 1954, as amended,
which is a statement of policy, is further amended by adding at the end
thereof the following:
" (f) It is the sense of the Congress that inasmuch as-
(1) the United States favors freedom of navigation in inter-
national waterways and economic cooperation between nations; and
" (2) the purposes of this Act are negated and the peace of the
world is endangered when nations which receive assistance under
this Act wage economic warfare against other nations assisted under
this Act, including such procedures as boycotts, blockades, and the
restriction of the use of international waterways;
assistance under this Act and the Agricultural Trade Development and
Assistance Act of 1964, as amended, shall be administered to give effect
to these principles, and, in all negotiations between the United States
and any foreign state arising as a result of funds appropriated under
this Act or arising under the Agricultural Trade Development and
Assistance Act of 1954, as amended, these principles shall be applied,
as the President may determine, and he shall report on measures taken
by the Administration to insure their application."
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2 MUTUAL SECURITY ACT OF 1960
CHAPTER I-MILITARY ASSISTANCE
SEC. 101. Chapter I of the Mutual Security Act of 1954, as amended,
which relates to military assistance, is amended as follows:
(a) In section 103, which relates to authorizations, insert the following
new subsection (d) :
" (d) The value of programs of equipment and materials for American
Republics, pursuant to any authority contained in this chapter other than
section 106, in any f scal year beginning with the fiscal year 1961, shall
not exceed $55,000,000. For the purposes of this subsection, the value of
nonexcess equipment and materials shall be as defined in section 545(h)
of this Act, and the value of excess equipment and materials (as excess is
defined in section 545(e) of this Act) shall mean the acquisition cost to the
Armed Forces of the United States of such equipment and materials."
(b) In section 105(b) (4), which relates to conditions applicable to
military assistance, strike out the last sentence.
CHAPTER II-ECONOMIC ASSISTANCE
SEC. 201. Title I of chapter II of the Mutual Security Act of 1954,
as amended, which relates to defense support, is amended as follows:
(a) In the first, sentence of section 131 (a), which rel-ates to the authority
of the President to furnish defense support, insert immediately before the
period at the end thereof the following proviso: ": Provided, That either
all documents, papers, communications, audits, reviews, findings, recom-
mendations, reports, and other material which relate to operations or
activities under this title are furnished to the General Accounting Office
and to any committee of the Congress, or any du y authorized subcom-
mittee thereof, charged with considering legislation, appropriations, or
expenditures under this title, upon request of the General Accounting
Office or such committee or subcommittee as the case may be, or the Presi-
dent certifies that he has forbidden the information to be furnished pursuant
to such request and gives his reasons for doing so".
(b) In section 131(b), which relates to general authority, strike out
"1900" and "$751,000,000" and substitute "1931" and "$675,000,000",
respectivey.
(c) In section 141, which relates to conditions of eligibility for assist-
ance, strike out "No such assistance" in the second sentence and substitute
"No defense support or military equipment and materials".
(d) In section 142(a), which relates to agreements, strike out "No
assistance" in the introductory clause and substitute "No defense support
.or military equipment and materials".
SEC. 202. Title II of chapter II of the Mutual Security Act of 1954,
as amended, which relates to the Development Loan Fund, is amended as
follows:
(a) Amend section 201, which states the purposes of the Development
Loan Fund, as follows:
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MUTUAL SECURITY ACT OF 1960 3
(1) In the last sentence, after "to develop their economic resources"
-insert "and free economic institutions", and after "to increase their
productive capabilities" insert "in agriculture as well as in industry".
(2) At the end of the section, add the following new sentences: "The
Congress recognizes that the accomplishment of the purposes of this title
in rapidly developing countries requires the development of, free economic
institutions and the stimulation of private investment, local as well as
foreign, in the field of housing. It is the sense of the Congress that, con-
sistent with the other purposes of this title, special consideration should
be given to loans and guarantees to stimulate activities in this field."
(b) Amend section 202, which relates to general powers of the Develop-
ment Loan Fund, as follows:
(1) In clause (3) of the first sentence of subsection (b) insert "or free
economic institutions" after "economic resources".
(2) At the end of the section; add the following new subsection:
"(c) The Fund shall not allocate, reserve, earmark, commit, or other-
wise set aside, funds aggregating in excess of $50,000 for use in any
country under this title unless (1) an application for such funds has been
received.for use in such country together with sufficient information and
assurances to indicate reasonably that the funds will be used in an eco-
nomically and technically sound manner, or (2) the President determines
with respect to each such allocation, reservation, earmarking, commitment,
or set-aside that it is in the national interest to use such funds pursuant to
multilateral plans."
(c) In section 205(a), which relates to management, powers, and author-
ities, strike out "Under Secretary of State for Economic Affairs" in the
first sentence and substitute "Secretary of State".
TECHNICAL COOPERATION
SEC. 203. Title III of chapter II of the Mutual Security Act of 1954,
,as amended, which relates to technical cooperation, is amended as follows:
(a) In section 304, which relates to authorization, strike out "$179,-
.500,000" and "1960" and substitute "$172,000,000" and "1961",
respectively.
(b) Amend section 306, which relates to multilateral technical coopera-
tion and related programs, as follows:
(1) In subsection (a), which relates to contributions to the United
Nations Expanded Program of Technical Assistance and related fund,
strike out "$30,000,000" and "1960" and substitute "$33,000,000" and
"1961", respectively.
(2) In subsection (b), which relates to contributions to the technical
cooperation program of the Organization of American States, strike out
"1960" and substitute "1961".
(c) In section 307, which relates to advances and grants, insert " (a)"
immediately after "SEC. 307. ADVANCES AND GRANTS; CONTRACTS.-",
and at the end thereof add the following:
"(b) The President shall arrange for a nongovernmental research
group, university, or foundation to study the advisability and practicability
of a program, to be known as the Point Four Youth Corps, under which
young United States citizens would be trained and serve abroad in pro-
.grams of technical cooperation. Not to exceed $10,000 from funds made
available pursuant to section 304 of this Act may be used to help defray
the expenses of such a study."
(d) Repeal section 308, which relates to the International Development
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4 MUTUAL SECURITY ACT OF 1960
SPECIAL ASSISTANCE AND OTHER PROGRAMS
SEC. 204. Title IV of chapter II of the Mutual Security Act of 1954,
as amended, which relates to special assistance and other programs, is
amended as follows:
(a) In section 400(a), which relates to special assistance, strike out
"1960" and "$247,500,000" and substitute "1961 " and "$256,000,000",
respectively.
(b) In section 401, which relates to the United Nations Emergency
Force, strike out "1960" in the second sentence and substitute "1961".
(c) In section 402, which relates to earmarking of funds, strike out
"1960" in the first sentence and substitute "1961 ".
(d) In section 403, which relates to responsibilities in Germany,
strike out "1960" and "$7,500,000" in the first sentence and substitute
"1961" and "$6,750,000", respectively.
(e) Insert after section 403 the following new section 404:
"SEC. 404. INDUS BASIN DEVELOPMENT.-The Congress of the
United States welcomes the progress made through the good offices of the
International Bank for Reconstruction and Development toward the devel-
opment of the Indus Basin through a program of cooperation among south
Asian and other nations of the free world in order to promote economic
growth and political stability in south Asia, and affirms the willingness
of the United States, pursuant to authorities contained in this and other
Acts, to participate in this significant undertaking. In the event that funds
appropriated pursuant to this Act are made available to be used by or under
the supervision of the International Bank for Reconstruction and Develop-
ment in furtherance of the foregoing purposes, such funds may be used in
accordance with requirements, standards, or procedures established by the
Bank concerning completion of plans and cost estimates and determination
of feasibility, rather than with requirements, standards, or procedures con-
cerning such matters set forth in this or other Acts: and such funds may
also be used without regard to the provisions of section 901 (b) of the Mer-
chant Marine Act of 1936, as amended (46 U.S.C. 1241), whenever the
President determines that such provisions cannot be fully satisfied without
seriously impeding or preventing accomplishment of such purposes: Pro-
vided, That compensating allowances are made in the administration of
other programs to the same or other areas to which the requirements of said
section 901 (b) are applicable."
(f) Amend section 405, which relates to migrants, refugees, and
escapees, as follows:
(1) In subsection (c), which relates to contributions to the program of
the United Nations High Commissioner for Refugees, strike out "1960"
and "$1,100,000" and substitute "1961" and "$1,300,000", respectively.
(2) In subsection (d), which relates to the continuation of activities
undertaken for selected escapees, strike out "1960" and "$5,200,000"
and substitute "1961" and "$3,500,000", respectively.
(g) In section 406, which relates to children's welfare, strike out "1960"
and substitute "1961".
(h) Amend section 407, which relates to Palestine refugees in the Near
East, to read as follows:
"SEC. 407. PALESTINE REFUGEES IN THE NEAR EAST.-There is
hereby authorized to be appropriated to the President for the fiscal year
1961 not to exceed $16,500,000 to be used to make contributions to the
United Nations Relief and Works Agency for Palestine Refugees in the
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MUTUAL SECURITY ACT OF 1960 5
Near East. In determining whether or not to continue furnishing
assistance for Palestine refugees in the Near East, the President shall take
into account whether Israel and the Arab host governments are taking
steps toward the resettlement and repatriation of such refugees. It is
the sense of the Congress that the earliest possible rectification should be
made of the Palestine refugee rolls in order to assure that only bona fide
refugees whose need and eligibility for relief have been certified shall
receive aid from the Agency and that the President in determining whether
or not to make United States contributions to the Agency should take into
consideration the extent and success of efforts by the Agency and the host
governments to rectify such relief rolls. The President shall include in
his recommendations to the Congress for fiscal year 1962 programs under
this Act a report concerning the progress made toward the rectification
of the relief rolls as well as toward the repatriation and resettlement of
the refugees by the governments directly concerned. Whenever the President
shall determine that it would more effectively contribute to the relief,
repatriation, and resettlement of Palestine refugees in the Near East he
may expend any part of the funds made available pursuant to this section
through any other agency he may designate."
(i) Section 409, which relates to ocean freight charges, is amended
as follows:
(1) In subsection (a), after "such nations and areas" insert ", or,
in the case of such nations and areas which are landlocked, transportation
charges from the United States ports to designated points of entry in such
nations and areas,".
(2) In subsection (c), strike out "1960" and "$2,300,000" and sub-
stitute "1961" and "$2,000,000", respectively.
(j) Amend section 411, which relates to administrative and other
expenses, as follows:
(1) In subsection (b), which relates to certain expenses of administering
nonmilitary assistance, strike out "1960" and "$39,500,000" and sub-
stitute "1961" and "$40,000,000", respectively.
(2) In subsection (c), which relates to administrative and other ex-
penses of the Department of State, strike out "to" after "appropriated"
and substitute "for expenses of".
(k) Section 1112, which relates to the President's special education
and training fund, is repealed.
(1) In section 419(a), which relates to atoms for peace, strike out
"1960" and "$6,500,000" and substitute "1961" and "$3,400,000",
respectively.
(m) Add the following new section after section 420:
"SEC. 421. LOANS TO SMALL FARMERS.-It is the policy of the United
States and the purpose of this section to strengthen the economies of
underdeveloped nations, and in nations where the economy is essentially
rural or based on small villages, to provide assistance designed to improve
agricultural methods and techniques, to stimulate and encourage the
development of local programs of self-help and mutual cooperation,
particularly through loans of foreign currencies for associations of opera-
tors of small farms, formed for the purpose of joint action designed to
increase or diversify agricultural productivity. The maximum unpaid
balance of loans made to any association under this section may not
exceed $25,000 at any one time; and the aggregate unpaid balance of all
loans made under this section may not exceed $10,000,000 at any one time."
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6 MUTUAL SECURITY ACT OF 1960
CHAPTER III-CONTINGENCY FUND
SEc. 301. Section 451(b) of the Mutual Security Act of 1954, an
amended, which relates to the President's special authority and contin-
gency fund, is amended by striking out "'1960" and "$155,000,000"
in the first sentence and substituting "1961" and "$150,000,000",.
respectively.
CHAPTER 1 V--GENERAL AND ADMINISTRATIVE PROVISIONS
SEc. 401. Chapter IV of the Mutual Security Act of 1954, as amended,
which relates to general and administrative provisions, is amended as
follows:
(a) Section 502, which relates to use of foreign currency, is amended
as follows:
(1) Subsection (b) is amended as follows:
(i) Insert after the word "expended" in the proviso the words "and the
amounts of dollar expenditures made from appropriated funds in con-
nection with travel outside the United States".
(ii) Amend the second sentence to read as follows: "Within the first
sixty days that Congress is in session in each calendar year, the chairman
of each such committee shall prepare a consolidated report showing the
total itemized expenditures during the preceding calendar year of the
committee and each subcommittee thereof, incurred as a result of the
official activities of the members and employees of such committee or sub-
committee, and shall forward such consolidated report to the Committee
on House Administration of the House of Representatives (if the com-
mittee be a committee of the House of Representatives or a joint committee
whose funds are disbursed by the Clerk of the House) or to the Committee
on Appropriations of the Senate (if the committee be a Senate committee or
a joint committee whose funds are disbursed by the Secretary of the
Senate). "
(2) At the end of the section, add the following new subsection:
"(c) It is the sense of the Congress that prompt and careful considera-
tion should be given to participation by the United States in an inter-
nationally financed program which would utilize foreign currencies avail-
able to the United States to preserve the great cultural monuments of the
Upper Nile. Accordingly, the President is requested to submit to the
Congress on or before March 1, 1961, his recommendations concerning
such a program."
(b) Section 504(d), which relates to small machine tools and other
industrial equipment, is repealed.
(c) In section 505(a), which relates to loan assistance and sales,
insert after the first sentence the following new sentence: "Commodities,
equipment, and materials transferred to the United States as repayment
may be used for assistance authorized by this Act, other than title II of
chapter II, in accordance with the provisions of this Act applicable to
the furnishing of such assistance.".
(d) In section 513, which relates to notice to legislative committees,
insert before ", and copies" in the last sentence the following: "and
under the last clause of the second sentence of section 404".
(e) Amend section 517, which relates to completion of plans and cost
estimates, as follows:
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MUTUAL SECURITY ACT OF 1960 ``
(1) Insert "(a)" immediately after "SEc. 517. COMPLETION OF
PLANS AND COST ESTIMATES.-"
(2) Add the following at the end of such section:
"(b) Plans required under this section for any water or related land
resource construction project or program shall include a computation of
benefits and costs made insofar as practicable in accordance with the
procedures set forth in Circular A-47 of the Bureau of the Budget with
respect to such computations."
(f) Amend section 523, which relates to coordination with foreign
policy, by adding the following new subsection:
"(d) Whenever the President determines that the achievement of
United States foreign policy objectives in a given country requires it, he
may direct the chief of the United States diplomatic mission there to
issue regulations applicable to members of the Armed Forces and officers
and employees of the United States Government, and to contractors with
the United States Government and their employees, governing the extent
to which their pay and allowances received and to be used in that country
shall be paid in local currency. Notwithstanding any other law, United
States Government agencies are authorized and directed to comply with
such regulations."
(g) Amend section 527, which relates to employment of personnel, as
follows:
(1) In subsection (c), which relates to employment of personnel outside
the United States, strike out "Director" in the introductory clause and
substitute "President"; and insert before the period at the end of para-
graph (2) the following new proviso: ": Provided further, That Foreign
Service Reserve officers appointed or assigned pursuant to this paragraph
shall receive in-class promotions in accordance with such regulations as
the President may prescribe".
(2) In subsection (d), which relates to appointment of alien employees
outside the United States, strike out ", at the request of the Director".
(h) Section 531, which relates to security clearance, is amended to read
as follows:
"SEC. 531. SECURITY CLEARANCE.-The standards and procedures
set forth in Executive Order Numbered 10450, as amended or supple-
mented, shall apply to the employment under this Act by any agency
administering nonmilitary assistance of any citizen or resident of the
United States."
(i) In subsection (c) of section 533A, relating to the Inspector General
and Comptroller, strike out paragraph (9) and renumber paragraphs
(10) and (11) as paragraphs (9) and (10), respectively.
(j) In section 534(a), which relates to reports, strike out "six months"
in the first sentence and substitute "fiscal year".
(k) In section 537(a), which relates to provisions on uses of funds,
amend paragraph (3) to read as follows:
"(3) contracting with individuals for personal services abroad:
Provided, That such individuals shall not be regarded as employees
of the United States for the purpose of any law administered by the
Civil Service Commission;".
(1) In section 537(c), which relates to construction or acquisition of
facilities abroad, strike out "$2,750,000" and substitute "$4,250,000".
(m) Add the following new section immediately after section 551:
"SEC. 552. ASSISTANCE TO CUBA.-No assistance shall be furnished
under this Act to Cuba after the date of enactment of the Mutual Security
Act of 1960 unless the President determines that such assistance is in the
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8 MUTUAL SECURITY ACT OF 1960
CHAPTER V-TECHNICAL AMENDMENTS REFLECTING NEW LIMITS OF
UNITED STATE'S
SEC. 501. The Mutual Security Act of 1954, as amended, is amended
as follows:
(a) In section 205(c), strike out "continental" in the twelfth clause of
the first sentence.
(b) In section 411(d), strike out "the continental limits of".
(c) In section 527(c), strike out "the continental limits of" in the
introductory clause.
(d) In section 527(d), strike out "the continental limits of".
(e) In section 580(a), strike out "the continental limits of".
(f) In section 537(a), strike out "continental" in the last proviso of
paragraph (5) and in paragraphs (13) and (17); and strike out "the con-
tinental limits of" in paragraph (10).
CHAPTER VI-AMENDMENTS TO OTHER LAWS
SEC. 601. Title II of the Agricultural Trade Development and As-
sistance Act of 1954, as amended (7 U.S.C. 1721 and the following),
which relates to famine relief and other assistance, is amended as follows:
(a) (1) In section 202, strike out "The" at the beginning thereof and sub-
stitute the following: "In order to facilitate the utilization of surplus
agricultural commodities in meeting the requirements of needy peoples,
and in order to promote economic development in underdeveloped areas
in addition to that which can be accomplished under title I of this Act,
the
(2) The amendment made by this subsection shall expire June 30, 1961.
(b) In section 203, which relates to delivery of relief supplies, in the
third sentence after the words "designated ports of entry abroad" insert
", or, in the case of landlocked countries, transportation from United
States ports to designated points of entry abroad,", and before the period
at the end of such sentence insert the following: ", and charges for general
average contributions arising out of the ocean transport of commodities
transferred pursuant hereto may be paid from such funds".
SEC. 602. Section 501(b) of the Mutual Security Act of 1959 (73 Stat.
256), which relates to international cooperation in health, is repealed.
SEc. 603. Section 3(a) of Public Law 403, Eightieth Congress, as
amended (22 U.S.C,. 280b), which relates to United States membership in
the South Pacific Commission, is amended by striking out "$75,000"
and substituting "$100,000".
SEc. 604. The President shall have a study made of the functions of,
and the degree of coordination among, agencies engaged in foreign economic
activities, including the Department of State, the International Cooperation
Administration, the Development Loan Fund, the Export-Import Bank,
and the Department of Agriculture, with a view to providing the most
effective means for the formulation and implementation of United States
foreign economic policies. The President shall include in his presenta-
tion to the Congress of the fiscal year 1962 mutual security program his
findings and recommendations resulting from such study.
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MUTUAL SECURITY ACT OF 1960 9
CHAPTER VII-CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE
BETWEEN EAST AND WEST
SEc. 701. This chapter may be cited as the "Center for Cultural and
Technical Interchange Between East and West Act of 1960".
SEc. 702. The purpose of this chapter is to promote better relations
and understanding between the United States and the nations of Asia and
the Pacific (hereinafter referred to as "the East") through cooperative
study, training, and research, by establishing in Hawaii a Center for
Cultural and Technical Interchange Between East and West where
scholars and students in various fields from the nations of the East and
West may study, give and receive training, exchange ideas and views, and
conduct other activities primarily in support of the objectives of the
United States Information and Educational Exchange Act of 1948, as
amended, title III of chapter II of the Mutual Security Act of 1954, and
other Acts promoting the international, educational, cultural, and related
activities of the United States.
SEc. 703. In order to carry out the purpose of this chapter the Secretary
of State (hereinafter referred to as the "Secretary") shall provide for-
(1) the establishment and operation in Hawaii of an educational
institution to be known as the Center for Cultural and Technical
Interchange Between East and West, through arrangements with
public, educational, or other nonprofit institutions;
(2) grants, fellowships, and other payments to outstanding
scholars and authorities from the nations of the East and West as
may be necessary to attract such scholars and authorities to the Center;
(3) grants, scholarships, and other payments to qualified students
from the nations of the East and West as may be necessary to enable
such students to engage in study or training at the Center; and
(4) making the facilities of the Center available for study or
training to other qualified persons.
SEc. 704. (a) In carrying out the provisions of this chapter, the
Secretary may utilize his authority under the provisions of the United
States Information and Educational Exchange Act of 1948, as amended
(b) The Secretary may, in administering the provisions of this chapter,
accept from public and private sources money and property to be utilized
in carrying out the purposes and functions of the Center. In utilizing
any gifts, bequests, or devises accepted there shall be available to the Sec-
retary the same authorities as are available to him in accepting and uti-
lizing gifts, bequests, and devises to the Foreign Service Institute under
the provisions of title X, part C of the Foreign Service Act of 1946, as
amended. For the purposes of Federal income, estate, and gift taxes,
any gift, devise, or bequest accepted by the Secretary under the authority
of this chapter shall be deemed to be a gift, devise, or bequest to or for the
use of the United States.
(c) The Secretary shall make an annual report to the Congress with re-
spect to his activities under the provisions of this chapter, and such report
all include any recommendations for needed revisions in this chapter.
SEc. 705. There are authorized to be appropriated, to remain avail-
able until expended, such amounts as may be necessary to carry out the
provisions of this chapter.
H. Rept. 1593,86-2-2
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10 MUTUAL SECURITY ACT OF 1960
CHAPTER VIII-IIEMISPHERIC CENTER FOR CULTURAL AND
TECHNICAL INTERCHANGE
SEC. 801. The purpose of this chapter is to promote better relations
and understanding between the United States and the other nations of
the Western Hemisphere (hereinafter referred to as "the Hemisphere")
through cooperative study and research, by establishing in Puerto Rico
a Hemispheric Center for Cultural and Technical Interchange, either
as a branch of an existing institution of higher learning or as a separate
institution, where scholars and students, in various fields from the nations
of the Hemisphere may meet, study, exchange ideas and views, and con-
duct other activities primarily in support of the objectives of the United
States Information and Educational Exchange Act of 1948, as amended,
and title III of chapter II of the Mutual Security Act of 1954 and other
Acts promoting the international educational, cultural, and related ac-
tivities of the United States.
SEC. 802. In order to carry out the purposes of this chapter the Secre-
tary of State (hereinafter referred to as "Secretary"), after consultation
with appropriate public and private authorities, may, on or before Janu-
ary 3, 1961, prepare and submit to the Congress a plan and program for-
(1) the establishment and operation in Puerto Rico of an educa-
tional institution to be known as the Hemispheric Center for Cultural
and Technical Interchange through arrangements to be made with
public, educational, or other nonprofit institutions;
(2) grants, fellowships, and other payments to outstanding
scholars and authorities from the nations of the Hemisphere as
may be necessary to attract such scholars and authorities to the
Center;
(3) grants, scholarships, and other payments to qualified candi-
dates from the nations of the Hemisphere as may be necessary to
enable such students to engage in study at the Center; and
(4) making the facilities of the Center available for study to other
qualified persons on reasonable basis.
And the Senate agree to the same.
THOMAS E. MORGAN,
A. S. J. CARNAHAN,
CLEMENT J. ZABLOCKI,
ROBERT B. CHIPERFIELD,
WALTER H. JUDD,
Managers on the Part of the House.
J. W. FULBRIGHT,
THEODORE FRANCIS GREEN,
JOHN J. SPARKMAN,
ALEXANDER WILEY,
BOURKE B. HICKENLOOPER,
Managers on the Part of the Senate.
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STATEMENT OF THE MANAGERS ON THE PART OF THE
HOUSE
The managers on the part of the House at the conference on the
disagreeing votes of the two Houses on the amendment of the Senate
to the bill (H.R. 11510) to amend further the Mutual Security Act of
1054, as amended, and for other purposes, submit the following state-
ment in explanation of the effect of the action agreed upon by the
conferees and recommended in the accompanying conference report:
The Senate struck out all of the House bill after the enacting clause
and inserted a substitute amendment. The committee of conference
has agreed to a substitute for both the House bill and the Senate
amendment. Except for clarifying, clerical, and necessary conforming
changes, the differences are noted below:
INTRODUCTION
The House bill authorized an appropriation of $1,318,400,000 for
fiscal year 1961. The Senate amendment authorized an appropriation
of $1,405,500,000. The committee of conference adjusted the in-
dividual program amounts and agreed on a total authorization of
$1,366,200,000 for fiscal year 1061. The authorization agreed upon is
a reduction of $39,300,000 from the Senate amount and an increase
of $47,800,000 over the House figure.
There were five amounts in the House bill from which the Senate
amendment differed. On two of them the Senate receded-defense
support, for a reduction from the Senate figure of $25 million; and
special assistance, a reduction of $4 million. The two Houses split the
$400,000 difference for the U.N. High Commissioner for Refugees and
agreed to: a final figure of $1,300,000. On the amount for Palestine
refugees, the Senate receded from its position cutting off unobligated
funds, and the House managers reduced their figure by $2 million
with the understanding that approximately $6,500,000 of unobliggated
funds would be made available. For the contingency fund the differ-
ence between the House bill and the Senate amendment was $55 mil-
lion. On this the House increased its figure by $50 million and the
Senate cut its figure by $5 million.
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Fiscal analysis of mutual security program for fiscal year 1961
[In thousands of dollarsl
Program
House bill
Senate
Conference
gamst House
against
Adjustment
against Senate
amendment
substitute
bill
amendment to
House bill
(1)
(2)
(3)
(4)
(5)
Chapter:
I. Military assistance: See. 103(a): General authorization
_____________________
Economic assistance:
11
(I)
(I)
Cl)
.
Title I-Defense support: See. 131(b)-----------------------------------
T
H
tl
$675
000
$7
i
e
-DevelopmentLoan Fund: See. 203:
,
(1)
00,000
1
$675,000
------------------
-$25,000
Title
(
)
(1)
------------------
General authorization
____________________________
Sec. 306: Multilateral technical cooperation and related programs:
172,000
172,000
172,000
__________________
_________
(a) U.N.technicalassistance------------------------------
(b) Organization of American tates
33.000
33,000
33,000
----
-------------------------
Total
titl
I
1,500
-
1,500
1,500
--------------
------------------
-""""""-------'-?
------------------
,
e
II______________________
-------?-------------
Title IV-S
ecial
i
t
206,500
206,500
206,500
------------------
------------------
p
ass
s
ance and other programs:
See. 400(a): Special assistance----
_
____ees ___________---------------
See. 405: Migrants, refugeesand escap __
256,000
260,000
256,000
------------------
-4
000
(a) Intergovernmental ommittee for European Migration.
(1)
1
,
....
(c) U.N. High Commissioner for Refugees-------
1
(
)
(1)
---------------
(d) Escapee nrogram
Sec. 406: Children's welfare
,500
3,500
1.100
3.500
l; g00
3, 500
WM
x200
--------------------------------
See. 407: Palestine refugees----------------------------------------
12 000
18,500
12,000
x
12000
--------"---
-----------
-
Sec. 408(a): NATO science program-----------------------------
S
(1)
1
2,000
1
312,000
000
ec. 409(c) : Ocean freight charges on voluntary relief shipments
2
000
C
)
1
O
-""---------
----
--
. _ _-
Sec. 410: Control Act expenses____________
,
2,000
2000
_
_-_?_______
-
____________ _
See. 411: Administrative and other expenses:
"?
____-
___---_----------
---
(6) Administrative and other expenses (other than ch. I and
title II of ch. II)-----------------------
e State Department administrative ea
40,000
40,000
40,000
Sec. 419(x): Atoms for peace
-
----------------------------------------
Ttl titl
IV
3,400
3,400
3,400
-----------------
------------------
------------
e
-----------------------------------------------
T
h
336,900
344,000
334,700
c
. 451O)------------------------------
-
-
------- - ---------
11.
Contingency fund: See. 451(b)------
1,218,400
1,250,500
1,21
1,216,200
- -
- --
-
-----------------
Total
100,000
155,000
150,000
------- ---------
-
T5-0,000
--
----------
5,000
1,318,400 I
1,405,500
1,366,200 I
+47
800
39
mutual
Seemit
,
-
,300
3 This total does not include unobli
ted balancesuof rior Year appropriations a 1 61 appropriation of $3,500,000 more than the House bill and the administration
requested to be continued available. Unob ' ated funds opaey request, it will result in a total availability of $3,000,000 less.
which the administration proposal and House bill would hav madeava lab e for'use to3$6,500,0000 winclud h cheareo uthorizdde to beseontin continued a ailableropriations amounting
in 1961 are to revert to the Treasury. Although the Senate amendment authorizes
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MUTUAL SECURITY ACT OF 1960
MILITARY ASSISTANCE TO LATIN AMERICA (SEC. 101)
The House bill amended section 105(b) (4) to;,limit the aggregate
amount of funds which might be obligated or reserved for military
assistance to Latin America in fiscal year 1961 to the total for fiscal
year 1960. The ceiling included training as well as materiel but did
not apply to "excess" materiel or to reimbursable transactions under
sections 103(c) and 106.
The Senate amendment added a new section 103 (d) to limit the value
of programs of military materiel beginning with fiscal year 1961 to
$55 million. This ceiling included "excess" as well as nonexcess
materiel and also applied to reimbursable transactions under section
103(c), which are financed with military assistance funds. It did not
apply to training or to reimbursable transactions under section 106,
which are not financed with military assistance funds. The Senate
amendment also provided that in no case should any reimbursement
to the Department of Defense and the military services for excess
equipment exceed the usual value of excess equipment as determined
under section 545(h).
The committee of conference was in agreement that U S. assistance
to the American Republics in the form of military materiel should be
progressively reduced and that a ceiling should be imposed on the use
of mutual security funds for this purpose. The managers on the
part of the House accepted the language of the Senate amendment,
except for the deletion of a provision relating to reimbursement for
excess equipment which did not in any way alter the requirements
already in effect under sections 522(c) and 545(h) of the Mutual
Security Act.
The provision as agreed upon sets an annual limitation of $55
million beginning with the fiscal year 1961. This ceiling includes ex-
cess as well as nonexcess materiel and reimbursable transactions
financed with military assistance funds. It does not apply to train-
ing or to reimbursable transactions under section 106.
SUBMISSION OF DOCUMENTS AND INFORMATION TO THE CONGRESS
(SEC. 201(a))
The House bill added a proviso to section 131(b) of the Mutual
Security Act of 1954, as amended, requiring that all documents re-
lating to defense support operations be furnished upon request to the
General Accounting Office or any authorized congressional committee.
The Senate amendment did not contain a provision on this subject.
The Senate amendment, however, included a provision striking out
the existing language of section 537 (f) of the Mutual Security Act of
1954, as amended, which specifies the information to be submitted to
Congress in connection with certain types of economic assistance and
substituted for this provision a new requirement, outlining informa-
tion to be submitted to the Congress in relation to military assistance.
The managers on the part of the House accepted a compromise
according to which the provision of existing law relating to economic
assistance, section 537(f), was retained while the new language
contained in section 401 (j) of the Senate amendment was deleted.
In addition, the provision in section 201 (a) of the House bill was
amended so as to require that if a request for any document or material
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14 MUTUAL SECURITY ACT OF 1960
is denied by the Executive, the President must certify that he has
forbidden the furnishing of such document or material.
The committee of conference recognizes that the separation of
powers under the Constitution makes it impossible for the Congress
to infringe the prerogatives of the Executive by legislative action and
that consequently this provision would serve to indicate the will of
the Congress but that it could neither prescribe nor limit the consti-
tutional powers of the Executive.
INCREASING DEVELOPMENT LOAN FUND EMPHASIS ON DEVELOPMENT
OF FREE ECONOMIC INSTITUTIONS AND ON ENCOURAGEMENT OF PRIVATE
INVESTMENT IN HOUSING (SEC. 202 i(a) AND (b))
The Senate amendment added to the purposes of the-Development
Loan Fund the development of free economic institutions and the
development of agriculture as well as industry. It also required the
Development Loan Fund to take into consideration the contribution
of any proposed financing activity to the development of free economic
institutions. The Senate amendment also expressed the sense of the
Congress that the Development Loan Fund should give special con-
sideration to loans and guarantees to stimulate the development of
free economic institutions and private investment in the field of
housing in rapidly developing countries.
In addition, the Senate amendment included an expression of the
sense of Congress that the Development Loan Fund should assist in
the development of self-liquidating pilot housing projects in the
American Republics.
The House bill contained no similar provisions.
The managers on the part of the House accepted the Senate provi-
sions relating to the stimulation of private investment in housing on a
worldwide basis and the other provisions broadening the purposes of
the Development Loan Fund.
The Senate conferees, in accepting the deletion of the Senate
provision relating to housing projects in Latin American countries,
emphasized the fact that existing law already provides adequate
authority for establishing or assisting in the establishment of savings
and loan type institutions in foreign countries and for guaranteeing
private U.S. capital for investment in private housing in Latin Ameri-
can countries.
The committee of conference was in agreement as to the desirability
and the importance of-encouraging the development of self-liquidating
pilot housing projects in the American Republics and calls the atten-
tion of the Executive to the need for greater emphasis on this type of
activity.
DEVELOPMENT LOAN FUND SPECIAL AD VANCE COMMITMENTS (SEC. 202(b) (2))
The House bill added a new section 202(c) which prohibited the
Development Loan Fund Board of Directors from formally allocating,
committing, reserving, setting aside, or earmarking funds in excess of
$50,000 for use in any country unless an application or applications
in excess of the amount to be committed for loans in such country
had been received, supported by engineering, financial, or other data,
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MUTUAL SECURITY ACT OF 1980 15
or unless the President personally determined it to be in the national
interest to use such funds pursuant to multilateral plans.
The Senate amendment contained no provision on this subject.
The managers on the part of the House accepted an amendment to
the House provision, which requires that before funds are allocated
by the Development Loan Fund "sufficient information and assur-
ances" must have been received "to indicate reasonably that the
funds will be used in an economically and technically sound manner"
in place of the more specific language contained in the House bill.
The committee of conference agreed that the limitation on advance
allocations, reservations, earmarks, commitments, or set-asides by the
Fund definitely applies to any formal action by the Fund's Board of
Directors which would either bind the Fund or constitute a basis for
representing to the Congress that a given sum cannot be used for other
purposes. It does not mean that the Fund's staff cannot, or should
not as prudent bankers, informally discuss priorities of various pro-
posals with prospective borrowers, or internally prepare work programs
and give special attention to applications from key countries. It
should be noted here that just last year the Congress directed in section
202(b) of the act that the Fund "in its operations shall recognize
that development loan assistance will be most effective in those
countries which show a responsiveness to the vital long-term economic,
political, and social concerns of their people, demonstrate a clear
willingness to take effective self-help measures-." Obviously assist-
ance to projects and programs in such countries are to be given
priority.
Secondly, the amendment clearly calls for such data on the various
types of projects and programs which the Fund finances as is appro-
priate to a preliminary judgment on the particular project or program.
Secondly, the information and assurances called for are those ap-
propriate to forming a judgment that the allocation will result in
economically and technically sound uses. These would include an
appraisal of the competence and past performance of the entities
submitting the applications and their understanding that loans be
available only for projects and programs which meet the requirements
of section 517. Depending on the development need involved, the
Fund will continue to be available to finance such specific projects as
dams, industrial enterprises and development banks and loans for
programs which may either be a group of related projects or portions
of overall plans or programs for economic development.
POINT FOUR YOUTH CORPS (SEC. 203(0)) 1i
The House report accompanying the bill. included an endorsement
of the Point Four Youth Corps and expressed the committee's desire
for a comprehensive survey of the possibilities of developing a program
for using the services of American youth under the mutual security
program. The Senate amendment to the House bill included a
specific provision requiring the President to arrange for such a study
by a nongovernmental group and authorized the use of not more
than $10,000 from technical cooperation funds to help defray the
expenses of the study. The managers on the part of the House ac-
cepted the Senate language.
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16 MUTUAL SECURITY ACT OF 1960
ARMAMENTS FOR THE NEAR EAST (SEC. 204(a))
The House bill amended section 400 (a) of the act to express the
sense of Congress that money made available for special assistance
should not be used by any nation in the Near East to purchase
armaments. The Senate amendment did not contain this language.
While sympathetic to the overall objectives, the committee of con-
ference decided that the implications of the language might make
more difficult the achievement of our foreign policy objectives in that
area.
INDUS BASIN-50-50 SHIPPING REQUIREMENT (SEC. 204(e))
The House bill added a proviso at the end of the second sentence
of the new section 404 which authorizes the waiver of the 50-50 ship-
ping requirement in connection with U.S. participation in the develop-
ment of the Indus Basin. This proviso required that compensating
allowances be made in the administration of other programs to the
same area to which the 50--50 shipping requirement is applicable.
The Senate amendment did not contain a comparable provision.
The committee of conference considered the possibility that, since
the Indus Basin development project involves a period presently
estimated at 10 years, it might be impossible at some future date to
make compensating allowances on shipments under other programs
to the same area.
The managers on the part of the House, therefore, accepted an
amendment which extends the scope of compensating allowances to
include shipments not only to the same area but to other areas. This
broadening of the provision in the House bill should assure fulfillment
of the objectives of the 50-50 shipping requirement on a worldwide
basis.
PALESTINE REFUGEES (SEC. 204(h))
The House bill deleted the proviso in section 407, which earmarked
a percentage of the funds for resettlement and repatriation, and
amended section 407 to authorize an appropriation of $18.5 million
for contribution to the United Nations Relief and Works Agency for
Palestine Refugees (UNRWA), which, together with the use of re-
appropriations, .would permit a total contribution of $25 million.
The Senate amendment deleted the proviso in section 407 and
amended section 407: (1) to authorize an appropriation of $22 million
and to bar reappropriation of unobligated funds heretofore or here-
after appropriated under section 407; (2) to provide that after Janu-
ary 1, 1961, the U.S. contribution should not be used for relief programs
except for refugees who had been certified as to need and eligibility
after July 1, 1960; and (3) to require the President in the next fiscal
year presentation to submit specific recommendations with respect to
a program for the progressive repatriation and resettlement of refugees
and for reducing the U.S. contribution to UNRWA.
The committee of conference agreed that the United States shall
make progressive reductions of its annual contributions to the United
Nations Relief and Works Agency for :Palestine Refugees in the Near
East, that there shall be a consistent effort to rectify the Palestine
refugee rolls in order to assure that only bona fide refugees in need
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MUTUAL SECURITY ACT OF 1960 17
are included, and that a continued and vigorous effort shall be made
toward the repatriation and resettlement of the refugees by the govern-
ments directly concerned.
The managers on the part of the House accepted a compromise
which authorizes an appropriation of $16,500,000 for the fiscal year
1961. This amount, together with the $6,500,000 previously appro-
priated for resettlement but not used, would authorize for fiscal year
1961 a total of $23 million, which is $2 million below the total amount
for this purpose in the House bill and $1 million above the total
amount contained in the Senate amendment. It also expresses the
sense of the Congress with respect to the rectification of the refugee
rolls and directs the President to include in his recommendations to
the Congress for fiscal year 1962 a report concerning the progress
made toward rectification of the relief rolls and toward the repatriation
and resettlement of the refugees.
TRANSPORTATION CHARGES TO LANDLOCKED COUNTRIES
(SECS. 204 (i) AND 601(b))
The committee of conference accepted a Senate amendment to
section 409(a) which relates to ocean-freight charges to permit pay-
ment of transportation charges to points of entry in landlocked
countries.
At present there is authority to use mutual security funds to pay
ocean transportation for voluntary agency shipments to "ports of
entry" in foreign countries. There is no authority, however, to pay
overland transportation to points of entry in landlocked countries
which do not have ports. The adoption of the Senate amendment will
remove an inequity which a few countries suffer solely on account of
geography.
The committee of conference accepted a similar amendment to
section 203 of the Agricultural Trade Development and Assistance
Act of 1954 (Public Law 480). The new language will authorize the
payment of overland transportation charges to landlocked countries
on title II and title III shipments.
LOANS TO SMALL FARMERS (SEC. 204(m))
The House bill added a new section 421 which stated it to be the
policy of the United States to strengthen the economies of under-
developed nations and to provide assistance designed to improve
agricultural methods and techniques and encourage programs of self-
help, particularly through loans of foreign currencies to associations
of small farm operators. The new section 421 also imposed certain
monetary ceilings on loans made under that section.
The Senate amendment contained no provision on this subject.
The committee of conference accepted the provision of the House bill
with an amendment to the first sentence in which the word "for" was
substituted for the word "to" in reference to associations of operators
of small farms. This amendment is intended to make clear that loans
of foreign currencies for such associations are not expected to be made
directly by agencies of the United States, but would instead be made
through agencies or institutions of foreign governments.
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1$ MUTUAL SECURITY ACT OF 1960
CONGRESSIONAL TRAVEL ACCOUNTING (SEC. 401(a)(1))
The Senate bill amended section 502(b), which requires an itemized
reporting of congressional travel expenditures in foreign currencies, in
two particulars. The new Senate language broadened the provisions
of existing law to require itemized reporting of "the amount of dollar
expenditures made from appropriated funds in connection with travel
outside the United States." The Senate amendment also provided
that the reports on congressional travel, which are published annually
in the Congressional Record, should include the names of each Member
and employee incurring local currency or dollar travel expenses. The
committee of conference accepted the Senate language with an amend-
ment. The language agreed upon tightens the provisions of existing
law and makes it clear that the funds to be reported include both local
currencies or dollars from appropriated funds expended "as a result. of
the official activities of Members and employees of congressional com-
mittees or subcommittees," and that committee chairmen, in comply-
ing with the provisions of section 502, submit annually for publication
in the Congressional Record consolidated reports which show the total
itemized expenditures in appropriated dollars and local currencies of
the Members and employees of their committees and subcommittees.
CULTURAL MONUMENTS OF UPPER NILE (SEC. 401(a)(2))
The Senate amendment added a new section 502(c) which provided
that if the President found that U.S. participation in an internationally
financed program to preserve the cultural monuments of the Upper
Nile would promote U.S. foreign policy, he might, notwithstanding
section 1415 of the Supplemental Appropriation Act, 1953, and subject
to congressional approval, contribute certain U.S.-owned foreign cur-
rencies for this purpose of a value not, to exceed 33% percent of the
total cost of the program. It also provided that no such currencies
might be used unless the President was satisfied the. remaining cost
would be borne by other nations.
The House bill contained no provision on this subject.
The managers on the part of the House accepted a substitute in the
nature of a compromise, expressing the sense of the Congress that con-
sideration should be given by the United States to participation in an
internationally financed program which would utilize foreign currencies
available to the United States to preserve the cultural monuments of
the Upper Nile and requesting the President to submit to the Congress
on or before March 1, 1961, his recommendations concerning such a
program. The language agreed to does not commit the United States
to any course of action nor does it authorize any use of foreign
WATER RESOURCES PROJECTS (SEC. 401(e))
The House bill added a new section 517(b) which required non-
military flood control, reclamation, and other water and related land
resource programs or projects proposed for construction to be examined
by qualified engineers financed under the Mutual Security Act in
accordance with the general procedures prescribed in Circular A-47
of the Bureau of the Budget. The House language also called for a
determination of the benefits and costs and the submission of a copy
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MUTUAL SECURITY ACT OF 1960 19'
of the determination to the Congress and prohibited the undertaking
of any such program or project on which the benefits do not exceed
the costs and which does not otherwise meet the standards and
criteria used in determining feasibility of similar domestic programs
and projects in accordance with Circular A-47. The Senate amend
ment did not contain any provision on this subject.
The committee of conference agreed to the principle of using the
procedures set forth in Circular A-47 with respect to the computation
of benefits for any water or related land resource construction project
or program that is hereafter planned pursuant to the requirements of
section 517. The latter section already prohibits the making of an
agreement that obligates more than $100,000 until technical, financial,
and other plans have been worked out and a reasonably firm estimate
of the cost to the United States has been made. The committee of
conference recognized that the kind of statistics and cost-and-earning
potential data on hand in the United States necessary to make the
computations required by Circular A-47 may not always be available
in the underdeveloped countries. Hence the conferees agreed to the
application of the standards "insofar as practicable" in order that.
foreign policy objectives of the United States would not be unduly
impeded.
PAY OF EMPLOYEES IN LOCAL CURRENCY (SEC. 401(f))
The Senate amendment added a new section 523(d) which author-
ized Ambassadors to regulate the extent to which officers and em-
ployees of U.S. Government agencies and contractors abroad might,
receive their pay and allowances abroad in dollars or in local currency.
The House bill contained no provision on this subject.
The managers on the part of the House accepted the Senate provi-
sion with a number of clarifying amendments in the belief that this.
authority might increase the ability of the United States to prevent.
blackmarket operations on the part of overseas personnel. The com-
mittee of conference agreed that, as the amendment relates to con-
tractors and contract employees, it applies only with respect to future
contracts.
The language of the provision is sufficiently flexible and permits
discretion in its application so as to assure that no undue hardship will
be imposed on American military and civilian personnel serving
overseas.
EMPLOYMENT OF PERSONNEL
The House bill amended section 527(b) of the act which relates to
employment of personnel, to increase by four the number of positions
that may be compensated, up to and including grade 15, without
regard to the Classification Act of 1949. The Senate amendment
did not contain any provision on this subject. The committee of
conference accepted the Senate position that improved administration
of the mutual security program can only be achieved through the
employment of competent top-level managerial personnel.
PROMOTION OF ECONOMIC DEVELOPMENT (SEC. 601(a)(1))
The House bill amended section 202 of Public Law 480 to authorize
the use of surplus agricultural commodities on a grant basis to meet
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the requirements of needy people and to promote economic develop-
ment in underdeveloped areas.
The Senate amendment contained no provision on this subject.
The committee of conference accepted the House provision with an
.amendment limiting the authorization to the period of one year. The
managers on the part of the House accepted this limitation in the
belief that a trial period of a year would not impede the operation of
the program and would provide an opportunity to evaluate whether a
longer range authorization would be desirable.
CONTRIBUTIONS TO SOUTH PACIFIC COMMISSION (SEC. 603)
The committee of conference accepted the language of thetSenate
amendment which amended section 3 (a; of Public Law 403, 80th Con-
:gress. The new language raises the ceiling of $75,000 to $100,000 in
appropriations authorized for our annual contribution to the South
Pacific Commission.
The U.S. assessed contribution to the 1960 budget of the Commis-
sion will be about $70,000, or 12.5 percent of the total contribution.
A majority of the member governments have expressed an interest in
intensifying the work of the Commission, especially in the field of
health. They are prepared to support an increase in the Commission's
budget which would require the United States to exceed the present
ceiling of $75,000. The adoption of the new language will permit the
United States to support needed and well-planned increases ' in the
budget of the Commission for the next several years and, at the same
time, bear its share of the apportioned expenses at a relatively small
additional cost. The peoples of three territories administered by the
United States benefit from the activities of the Commission.
STUDY OF COORDINATION OF FOREIGN ECONOMIC OPERATIONS
(SEC. 604)
The managers on the part of the House accepted the Senate amend-
ment, with an amendment, requiring the President to have a study
made of the functions of, and the degree of coordination among,
-agencies engaged in foreign economic activities, including the Depart-
ment of State, the ICA, the Development Loan Fund, the Export
Import Bank, and the Department of Agriculture. The purpose is
to provide the most effective means for the formulation and imple-
mentation of U.S. foreign economic policies. The President is
required to include his findings and recommendations resulting from
the study in his presentation to the Congress of the mutual security
program for fiscal year 1962.
During the last decade various departments and agencies have
.embarked upon economic assistance programs. While each of the
programs, whether grants, loans or sales, is directed toward the
-strengthening of our foreign policy, there is increasing concern that
they are not sufficiently coordinated or integrated to provide the unity
of purpose necessary to achieve their common objective. Some are
operated within the Department of State; others are outside the
Department. It is the expectation of the committee of conference
that the study will result in. a larger measure of coordination or inte-
gration within the executive branch in the formulation and imple-
mentation of our foreign policy.
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MUTUAL SECURITY ACT OF 1960 21
CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE BETWEEN EAST'
AND WEST (CH. VII)
The committee of conference agreed to the language in the Senate
amendment providing for the authorization of an appropriation to,
establish a Center for Cultural and Technical Interchange Between
East and West. The activities to be carried out by the Center are
those that will support the objectives of the United States Information
and Educational Exchange Act of 1948 (the Smith-Mundt Act) and
other acts promoting the international, educational, cultural, and.
related activities of the United States.
Last year the Congress directed the Secretary of State to submit to,
Congress before January 3, 1960, a plan and program for the estab-
lishment in Hawaii of an educational institution, for grants, fellow
ships, and other payments to outstanding scholars and to qualified.
students from the nations of the East and the West.
The Secretary of State filed a comprehensive report, as required.
The language in the bill will permit the Secretary of State to carry out
the recommendations contained in the report through any appropriate
Federal or State agency or department. The establishment of such
a Center is in keeping with the objectives of the mutual security
program and will constitute a significant contribution toward better
understanding between the people of Asia and the Pacific area and
of the United States.
HEMISPHERIC CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE:
(CH. VIII)
The committee of conference agreed to the language in the Senate
amendment designed to promote better relations and understanding
between the United States and other nations of the Western Hemi-
sphere by establishing in Puerto Rico a hemispheric center for cultural
and technical interchange. The objectives of the center would be~
consonant with the objectives of our several international educational
and cultural programs.
The new language authorizes, but does not require, the Secretary
of State to make a study on all aspects of the proposed project and to
submit a plan and program for the center and its activities and func-
tions before January 3, 1961.
This section does not carry an authorization for an appropriation.
The study will be financed from funds available to the executive
THOMAS E. MORGAN,
A. S. J. , CARNAHAN,
CLEMENT J. ZABLOCKI,
ROBERT B. CHIPERFIELD,
WALTER H. JUDD,
Managers on the Part of the House.
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