may be made for foster care in childcare institutions under the program of aid to families with dependent children under title IV of the Social Security Act; and

H.R. 11812. An act making appropriations for foreign assistance and related agencies for the fiscal year ending June 30, 1965, and for other purposes.

PRINTING ADDITIONAL COPIES OF
IMMIGRATION HEARINGS

The PRESIDING OFFICER (Mr. HOLLAND in the chair) laid before the Senate the concurrent resolution (H. Con. Res. 358) to provide for the printing of 5,000 additional copies of "Immigration Hearings Before Subcommittee No. 1 of the Committee on the Judiciary, House of Representatives, parts 1, 2, and 3," this day received from the House of Reprepresentatives for concurrence, which was read.

On motion by Mr. MANSFIELD, and by unanimous consent,

The Senate proceeded to consider the said concurrent resolution; and

to.

Resolved, That the Senate agree there

Ordered, That the Secretary notify the House of Representatives thereof.

MESSAGE FROM THE HOUSE

A message from the House of Representatives, by Mr. Hackney, one of its clerks:

Mr. President: The House of Representatives has agreed to the report of the committee of conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H.R. 12633) making supplemental appropriations for the fiscal year ending June 30, 1965, and for other purposes; it has receded from its disagreement to the amendments of the Senate numbered 10, 11, 12, 31, 39, 45, 51, and 63 to the bill and agreed to the same; it has receded from its disagreement to the amendments of the Senate numbered 38, 40, 43, and 60, and agreed to each thereof with an amendment, in which it requests the concurrence of the Senate.

PRINTING ADDITIONAL COPIES OF "STUDY OF POPULATION AND IMMIGRATION PROBLEMS"

The PRESIDING OFFICER (Mr. WALTERS in the chair) laid before the Senate the concurrent resolution (H. Con. Res. 364) authorizing the printing of an additional 1,000 copies of the document entitled "Study of Population and Immigration Problems; Population of the United States," this day received from the House of Representatives for concurrence, which was read.

On motion by Mr. MANSFIELD, and by unanimous consent,

The Senate proceeded to consider the said concurrent resolution; and

to.

Resolved, That the Senate agree there

Ordered, That the Secretary notify the House of Representatives thereof.

CONFERENCE REPORT ON H.R. 12633

Mr. HAYDEN submitted the following conference report:

The committee of conference on the disagreeing votes of the two Houses on

the amendments of the Senate to the bill (H.R. 12633) making supplemental appropriations for the fiscal year ending June 30, 1965, 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 Senate recede from its amendments numbered 5, 6, 7, 18, 19, 20, 28, 32, 37, 42, 50, 53, 54, 55, 58, 61, and 62. That the House recede from its disagreement to the amendments of the Senate numbered 2, 3, 8, 9, 13, 14, 15, 16, 17, 23, 26, 30, 33, 35, 36, 44, 46, 47, 48, 49, 56, 57, 65, and 66, and agree to the same.

Amendment numbered 1: That the House recede from its disagreement to the amendment of the Senate numbered 1, and agree to the same with an amendment as follows: In lieu of the sum proposed by said amendment insert $1,291,000; and the Senate agree to the same.

Amendment numbered 4: That the House recede from its disagreement to the amendment of the Senate numbered 4, and agree to the same with an amendment as follows: Omit the matter stricken, and delete the matter inserted by said amendment; and the Senate agree to the

same.

Amendment numbered 21: That the House recede from its disagreement to the amendment of the Senate numbered 21, and agree to the same with an amendment as follows: In lieu of the sum proposed by said amendment insert $825,000; and the Senate agree to the same.

Amendment numbered 22: That the House recede from its disagreement to the amendment of the Senate numbered 22, and agree to the same with an amendment as follows: Restore the matter stricken by said amendment, amended to read as follows:, of which not to exceed $2,000,000 may be used for additional personnel; and the Senate agree to the same.

Amendment numbered 24: That the House recede from its disagreement to the amendment of the Senate numbered 24, and agree to the same with an amendment as follows: In lieu of the sum proposed by said amendment insert $1,465,000; and the Senate agree to the

same.

Amendment numbered 25: That the House recede from its disagreement to the amendment of the Senate numbered 25, and agree to the same with an amendment as follows: In lieu of the sum named in said amendment insert $2,500,000; and the Senate agree to the

same.

Amendment numbered 27: That the House recede from its disagreement to the amendment of the Senate numbered 27, and agree to the same with an amendment as follows: In lieu of the sum proposed by said amendment insert $8,533,000; and the Senate agree to the same.

Amendment numbered 29: That the House recede from its disagreement to the amendment of the Senate numbered 29, and agree to the same with an amendment as follows: In lieu of the sum named in said amendment insert $90,000; and the Senate agree to the

same.

Amendment numbered 34: That the House recede from its disagreement to the amendment of the Senate numbered 34, and agree to the same with an amendment as follows: In lieu of the sum named in said amendment insert $50,000; and the Senate agree to the same.

Amendment numbered 41: That the House recede from its disagreement to the amendment of the Senate numbered 41, and agree to the same with an amendment as follows: In lieu of the sum proposed by said amendment insert $800,000,000; and the Senate agree to the

same.

Amendment numbered 52: That the House recede from its disagreement to the amendment of the Senate numbered 52, and agree to the same with an amendment as follows: In lieu of the matter proposed by said amendment insert:

Interoceanic Canal Commission
Salaries and expenses

For expenses necessary for an investigation and study, including surveys, to determine the feasibility of, and the most suitable site for construction of a sealevel canal connecting the Atlantic and Pacific Oceans, $400,000.

And the Senate agree to the same.

Amendment numbered 59: That the House recede from its disagreement to the amendment of the Senate numbered 59, and agree to the same with an amendment as follows: In lieu of the sum named in said amendment insert $45,000,000; and the Senate agree to the

same.

Amendment numbered 64: That the House recede from its disagreement to the amendment of the Senate numbered 64, and agree to the same with an amendment as follows: In lieu of the sum proposed by said amendment insert $2,250,000; and the Senate agree to the

same.

The committee of conference report in
disagreement amendments numbered 10,
11, 12, 31, 38, 39, 40, 43, 45, 51, 60, and 63
JOHN O. PASTORE,
SPESSARD L. HOLLAND,
CARL HAYDEN,
RICHARD B. RUSSELL,
ALLEN J. ELLENDER,
JOHN L. MCCLELLAN,
MIKE MONRONEY,
E. L. BARTLETT,
MILTON R. YOUNG,

LEVERETT SALTONSTALL,
KARL E. MUNDT,

MARGARET CHASE SMITH,

Managers on the Part of the Senate.

GEORGE MAHON,

ALBERT THOMAS,
MICHEAL J. KIRWAN,
JAMIE L. WHITTEN,
JOHN J. ROONEY,
JOHN E. FOGARTY,
WALT HORAN (except

as to amendment No. 41), FRANK T. Bow (except

as to amendment No. 41), MELVIN R. LAIRD (except

as to amendment No. 41), Managers on the Part of the House.

The Senate proceeded, by unanimous consent, to consider the said report; and Resolved, That the Senate agree there

to.

Ordered, That the Secretary notify the House of Representatives thereof.

The PRESIDING OFFICER (Mr. WALTERS in the chair) laid before the Senate the amendments this day received from the House of Representatives for concurrence to the amendments of the Senate numbered 38, 40, 43, and 60 to the said bill.

The Senate proceeded to consider the said amendments; and

On motion by Mr. HAYDEN, Resolved, That the Senate agree to the amendments of the House to the amendments of the Senate numbered 40, 43, and 60.

On motion by Mr. MANSFIELD, Resolved, That the Senate disagree to the amendment of the House to the amendment of the Senate numbered 38. Ordered, That the Secretary notify the House of Representatives thereof. PRINTING ANNUAL REPORT OF JOINT SENATEHOUSE REPUBLICAN LEADERSHIP AND MAJOR LAWS DIGEST

On motion by Mr. DIRKSEN, and by unanimous consent,

Ordered, That there be printed as a Senate document the annual report of the Joint Senate-House Republican leadership; and

Ordered further, That there be printed as a Senate document the major laws digest.

ORDER FOR ADJOURNMENT UNTIL 11 A.M.
TOMORROW

On motion by Mr. MANSFIELD, and by unanimous consent,

Ordered, That when the Senate adjourns today, it be to meet at 11 o'clock a.m., tomorrow.

EXECUTIVE SESSION

On motion by Mr. MANSfield, The Senate further resumed the consideration of executive business; and after the consideration of executive business,

LEGISLATIVE SESSION

The Senate resumed its legislative session.

MESSAGE FROM THE HOUSE

A message from the House of Representatives, by Mr. Hackney, one of its clerks:

Mr. President: The House of Representatives has passed the joint resolution (H.J. Res. 1192) fixing the time of assembly of the 89th Congress, in which it requests the concurrence of the Senate. The House has agreed to the following concurrent resolution (H. Con. Res. 371) in which it requests the concurrence of the Senate:

Resolved by the House of Representatives (the Senate concurring), That the two Houses of Congress shall adjourn on Saturday, October 3, 1964, and that when they adjourn on said day, they stand adjourned sine die.

I am directed by the House to inform the Senate that the Speaker of the House

has appointed Mr. ASPINALL, Mr. O'BRIEN of New York, Mr. WHITE, Mr. SAYLOR, Mr. KYL, and Mr. BURTON of Utah as members of the Public Land Law Review Commission on the part of the House.

The Speaker of the House having signed two enrolled bills, viz, H.R. 1096 and H.R. 7348, I am directed to bring the same to the Senate for the signature of its President.

ENROLLED BILLS PRESENTED

The Secretary reported that on today he presented to the President of the United States the following enrolled bills:

S. 1531. An act to increase the appropriation authorization for the completion of the construction of the irrigation and power systems of the Flathead Indian irrigation project, Montana;

S. 1640. An act for the relief of certain employees of the Alaska Railroad;

S. 2180. An act to amend title VII of the Public Health Service Act so as to extend to qualified school of optometry and students of optometry those provisions thereof relating to student loan programs; and

S. 3174. An act to amend section 5 of the Employment Act of 1946.

ADJOURNMENT

On motion by Mr. MORSE, at 10 o'clock and 1 minute p.m.,

The Senate, under its order of today, adjourned until 11 o'clock a.m. tomorrow.

SATURDAY, OCTOBER 3, 1964

The PRESIDENT pro tempore called the Senate to order at 11 o'clock a.m., and the Chaplain offered prayer.

THE JOURNAL

On motion by Mr. MANSFIELD, and by unanimous consent.

The reading of the Journal of the proceedings of Friday, October 2, 1964, was dispensed with.

ENROLLED BILLS SIGNED

The Secretary reported that he had examined and found truly enrolled the following bills:

H.R. 1096. An act to authorize the Secretary of the Interior to cooperate with the State of Wisconsin in the designation and administration of the Ice Age National Scientific Reserve in the State of Wisconsin, and for other purposes; and

H.R. 7348. An act for the relief of Frank B. Rowlett.

The PRESIDENT pro tempore thereupon signed the same.

ANNUAL REPORT ON FOREIGN ASSISTANCE PROGRAM

The PRESIDENT pro tempore laid before the Senate the following message from the President of the United States, which, with the accompanying report, was referred to the Committee on Foreign Relations:

To the Congress of the United States:

This report demonstrates the remarkable progress made in strengthening our

foreign assistance programs and policies since 1961.

The 1961 act for international development called for major changes in the operation and emphasis of these historic programs. For more effective direction, the activities of several agencies were brought together under the Agency for International Development. New guidelines were laid down for our aid programs as part of the bold effort to make the 1960's the decade of development.

This report for fiscal 1963 shows clearly the ways in which these new guidelines are being translated into concrete programs. They provide the foundations for the lean, tightly managed aid program we plan for fiscal 1965. I want to call your attention particularly, therefore, to some significant features of this report which mark our progress during 1963 toward basic and continuing objectives of our foreign assistance policy.

INTEREST-BEARING LOANS REPLACE GRANTS

As the 1961 act directed, interestbearing loans have replaced grants as the chief mechanism for assistance. Loans represented 57 percent of AID's commitments during fiscal 1963-the highest proportion in the history of the foreign assistance program.

AID IS MORE SELECTIVE

Our aid became increasingly selective and concentrated in fiscal 1963-a trend that has since been accelerated. Eighty percent of all economic assistance funds authorized that year were for just 20 countries. Sixty percent of total military assistance went to just nine key countries.

AID TO LATIN AMERICA INCREASES

To increase the impact of the Alliance for Progress, our aid to Latin America was sharply stepped up in fiscal 1963, reaching 23 percent of worldwide commitments, compared with 18 percent the preceding year and an average of only 2 percent from 1948 to 1960.

NEW POLICIES PROTECT THE DOLLAR

Policies designed to protect our balance of payments produced major results in fiscal 1963-a dramatic jump in the purchases of U.S. products. U.S. producers supplied 78 percent of all AIDfinanced commodities during the year( compared with 63 percent the preceding year, and less than 50 percent in earlier years.

INCREASED PARTICIPATION BY U.S. INDUSTRY

Under these policies U.S. business and industry exported $855 million in AIDfinanced goods and equipment to Asia, Africa, and Latin America during the year, and American shipping firms were paid about $80 million to carry AIDfinanced commodities to their destinations in the less-developed countries. These dollars meant more jobs for American workers.

As a result of the same policy, U.S. ships carried more than 80 percent of the total net AID-financed cargo that year, well in excess of the 50 percent required by the Cargo Preference Act.

PRIVATE ORGANIZATIONS PLAY A LARGER ROLE

The 1961 act also called for greater use of America's vast private resources in the battle against world poverty. During fiscal 1963, about one-fourth of all technical assistance was carried out not by AID personnel, but by American colleges, universities, business, professional firms, and service organizations on contract with AID.

More than 70 of our colleges and universities were at work in 40 countries under AID contracts, helping other people make progress in education, in health, in agriculture, in business, and industry.

During the year, there was a fourfold increase in cooperative programs designed to help private citizens organize savings and loan institutions, credit unions, rural electric cooperatives, housing and farm credit co-ops. These programs that go right to the people have continued to grow. To expand this significant work, AID relied heavily on contracts with experienced private groups such as the Credit Union National Association, the National League of Insured Savings Associations, the Cooperative League of America, and the National Rural Electric Cooperative Association.

INCREASED EMPHASIS ON PRIVATE ENTERPRISE

In recognition of the fact that foreign investors helped to build our own Nation's economy and that private capital must do most of the job for the developing nations, we increased efforts to encourage American investment in the lessdeveloped countries. Twelve countries signed investment guaranty agreements during fiscal 1963, bringing to 55 the number of less-developed countries participating in this sucessful program.

This year, for the first time, AID guaranteed a substantial amount of new U.S. private dollar investment in development banks organized to foster private enterprise in the less-developed countries. U.S. investors applied for guaranty coverage totaling $32 million for new or additional investments in such banks. SIGNIFICANT SAVINGS BY IMPROVED MANAGEMENT

Economies

Fiscal 1963 saw the beginning of significant economies in the management of aid programs by the Agency for International Deveopment. made in that year included savings of more than $900,000 by centralized purchase of DDT, $1,200,000 during the first 6 months of the fiscal year alone through tighter travel policies and regulations, and $34 million saved through an aggressive program to use Governmentowned excess property in oversea projects.

ECONOMIC AID TO EUROPE TERMINATED

Major assistance to Europe under the Marshall plan had ended by the midfifties, but a few smaller supplemental programs continued during the years after. Fiscal 1963 saw the last economic assistance commitment for Europe: a single grant of $125,000 authorized to finance the closing out of prior activities in Yugoslavia.

Finally, let me point out this. It is

99-100-s J-88-2--45

particularly appropriate that the same year which marked the termination of the historic and successful Marshall plan for Europe was also the year in which our efforts in the less-developed countries began giving unmistakable evidence of success.

With our help, developed countries like Britain, France, and Japan recovered from the war rapidly and were soon in a position to give rather than receive assistance. But when we first extended America's helping hand to the less-developed countries a decade ago, there was no such promise of rapid results. We knew it was right and necessary to help these poorer countries to a better life if we were to preserve our own good life and expand the family of the free. But only recently could we be certain that it was practical and only recently have been able to see with our eyes the proof of our earlier vision. In fiscal 1963, for the first time, it became unmistakably clear that countries like free China were ending their dependence on AID and that others would follow.

We know today that the progress in controlling diseases that have sapped men's strength to build and to work, the steady expansion of educational opportunities, the slow but persistent increase in national income and output in the countries we have aided are leading to further successes. We know that if our goal is still distant, our course is true.

LYNDON B. JOHNSON. THE WHITE HOUSE, October 3, 1964. ADDITIONAL COAUTHOR OF SENATE JOINT RESOLUTION 45

On motion by Mr. MORSE, and by unanimous consent,

Ordered, That the names of Mr. YOUNG of Ohio and Mr. MCINTYRE be added as coauthors of the joint resolution (S.J. Res. 45) proposing an amendment to the Constitution of the United States relating to equal rights for men and women.

RECESS

On motion by Mr. MANSFIELD, at 11 o'clock and 13 minutes a.m.,

The Senate took a recess subject to the call of the Chair.

AT 11 O'CLOCK AND 40 MINUTES A.M. The PRESIDING OFFICER (Mr. MANSFIELD in the chair) called the Senate to order.

RECESS

On motion by Mr. WILLIAMS of Delaware, at 11 o'clock and 41 minutes a.m., The Senate took a recess subject to the call of the Chair.

AT 12 O'CLOCK AND 39 MINUTES P.M. The ACTING PRESIDENT pro tempore called the Senate to order.

EXECUTIVE SESSION

On motion by Mr. MANSFIELD, The Senate proceeded to the consideration of executive business; and after the consideration of executive business,

LEGISLATIVE SESSION

The Senate resumed its legislative session.

MESSAGE FROM THE HOUSE

A message from the House of Representatives, by Mr. Bartlett, one of its clerks:

Mr. President: The House of Representatives has passed without amendment the bill (S. 3162) to amend section 105(a) of the Legislative Branch Appropriation Act, 1965, with respect to the disclosure in reports required thereunder of the names of persons who have appeared as witness before committees sitting in executive session.

The House has agreed to the amendIments of the Senate to the bill (H.R. 4649) to amend the Internal Revenue Code of 1954 to authorize the use of certain volatile fruit-flavor concentrates in the cellar treatment of wine.

The House has agreed to the report of the committee of conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H.R. 1927) to amend title 38, United States Code, to revise the pension program for veterans of World War I, World War II, and the Korean conflict, and their widows and children, and for other purposes.

The House has agreed to the report of the committee of conference on the disagreeing votes of the two Houses on the amendment of the House to the amendment of the Senate to the bill (H.R. 2434) to amend section 560 of title 38, United States Code, to permit the payment of special pension to holders of the Congressional Medal of Honor awarded such medal for actions not involving conflict with an enemy, and for other purposes.

CONFERENCE REPORT ON H.R. 1927 Mr. MANSFIELD (for Mr. BYRD of Virginia) submitted the following conference report:

The committee of conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H.R. 1927) to amend title 38, United States Code, to revise the pension program for veterans of World War I, World War II, and the Korean conflict, and their widows and children, 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 Senate recede from its amendment numbered 4.

That the House recede from its disagreement to the amendments of the Senate numbered 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, and 14, and agree to the same. Amendment numbered 15:

That the House recede from its disagreement to the amendment of the Senate numbered 15 and agree to the same with an amendment, as follows:

Page 4, of the Senate engrossed amendments, strike out line 9 and all that follows through line 11 on page 13, and insert:

"§ 725. Limited period for acquiring in

surance

"(a) Any person (other than a person referred to in subsection (f) of this section) heretofore eligible to apply for Na

tional Service Life Insurance after October 7, 1940, and before January 1, 1957, who is found by the Administrator to be suffering (1) from a service-connected disability or disabilities for which compensation would be payable if 10 per centum or more in degree and except for which such person would be insurable according to the standards of good health established by the Administrator; or (2) from a non-service-connected disability which renders such person uninsurable according to the standards of good health established by the Administrator and such person establishes to the satisfaction of the Administrator that he is unable to obtain commercial life insurance at a substandard rate, shall, upon application in writing made within one year after the effective date of this section, compliance with the health requirements of this section and payment of the required premiums, be granted insurance under this section.

"(b) If, notwithstanding the applicant's service-connected disability, he is insurable according to the standards of good health established by the Administrator, the insurance granted under this section shall be issued upon the same terms and conditions as are contained in the standard policies of National Service Life Insurance except (1) five-year level premium term insurance may not be issued; (2) the net premium rates shall be based on the 1958 Commissioners Standard Ordinary Basic Mortality Table, increased at the time of issue by such an amount as the Administrator determines to be necessary for sound actuarial operations, and thereafter such premiums may be adjusted as the Administrator determines to be so necessary but at intervals of not less than two years; (3) an additional premium to cover administrative costs to the Government as determined by the Administrator at times of issue shall be charged for insurance issued under this subsection and for any total disability income provision attached thereto, and thereafter such costs may be adjusted as the Administrator determines to be necessary but at intervals of not less than five years; (4) all cash, loan, extended and paid-up insurance values shall be based on the 1958 Commissioners Standard Ordinary Basic Mortality Table; (5) all settlements on policies involving annuities shall be calculated on the basis of The Annuity Table for 1949; (6) all calculations in connection with insurance issued under this subsection shall be based on interest at the rate of 31⁄2 per centum per annum; (7) the insurance shall include such other changes in terms and conditions as the Administrator determines to be reasonable and practicable; (8) the insurance and any total disability income provision attached thereto shall be on a nonparticipating basis and all premiums and other collections therefor shall be credited to a revolving fund established in the Treasury of the United States and the payments on such insurance and total disability income provisions shall be made directly from such fund.

"(c) If the applicant's service-connected disability or disabilities render him uninsurable according to the standards of good health established by the Administrator, or if the applicant has a non-service-connected disability which renders him uninsurable according to the standards of good health established by the Administrator and such person establishes to the satisfaction of the Administrator that he is unable to obtain commercial life insurance at a substandard rate and such uninsurability existed as of the date of approval of this section, the insurance granted under this section shall be issued upon the same terms and conditions as are contained in standard policies of National Service Life Insurance, except (1) five-year level premium term insurance may not be issued; (2) the premiums charged for the insurance issued under this subsection shall be increased at the time of issue by such an amount as the Administrator determines to be necessary for sound actuarial operations and thereafter such premiums may be adjusted from time to time as the Administrator determines to be necessary; for the purpose of any increase at time of issue or later adjustment the service-connected group and the nonservice-Connected group may be separately classified; (3) an additional premium to cover administrative costs to the Government as determined by the Administrator at the time of issue shall be charged for insurance issued under this subsection and for any total disability income provision attached thereto (for which the insured may subsequently become eligible) and thereafter such costs may be adjusted as the Administrator determines to be necessary but at intervals of not less than five years and for this purpose the service-connected and non-service-connected can be separately classified; (4) the insurance and any total disability income provision attached thereto shall be on a nonparticipating basis; (5) all settlements on policies involving annuities shall be calculated on the basis of The Annuity Table for 1949; (6) all calculations in connection with insurance issued under this subsection shall be based on interest at the rate of 32 per centum per annum; (7) the insurance shall include such other changes in terms and conditions as the Administrator determines to be reasonable and practicable; (8) all premiums and other collections on the insurance and any total disability income provision attached thereto shall be credited to the National Service Life Insurance appropriation, and the payments on such insurance and total disability income provision shall be made directly from such appropriation. Appropriations necessary to carry out the provisions of this subsection are hereby authorized.

"(d) (1) There is authorized to be appropriated such sums as may be required to provide capital for the revolving fund to carry out the purpose of subsection (b) of this section. Such appropriations shall be advanced to the revolving fund as needed and shall bear interest as de

termined by the Secretary of the Treasury, taking into consideration the average yield on all marketable interest-bearing obligations of the United States of comparable maturities then forming a part of the public debt and shall be repaid to the Treasury over a reasonable period of time.

"(2) The Administrator is authorized to set aside out of the revolving fund established under subsection (b) of this section such reserve amounts as may be required under accepted actuarial principles to meet all liabilities on insurance issued under subsection (b) of this section and any total disability income provision attached thereto. The Secretary of the Treasury is authorized to invest in and to sell and retire special interest-bearing obligations of the United States for the account of the revolving fund. Such obligations issued for this purpose shall have maturities fixed with due regard for the needs of the fund and shall bear interest at a rate equal to the average market yield (computed by the Secretary of the Treasury on the basis of market quotations as of the end of the calendar month next preceding the date of issue) on all marketable interest-bearing obligations of the United States then forming a part of the public debt which are not due or callable until after the expiration of four years from the end of such calendar month; except that where such average market yield is not a multiple of one-eighth of 1 per centum, the rate of interest of such obligation shall be the multiple of one-eighth of 1 per centum nearest such market yield.

"(3) Notwithstanding the provisions of section 782 of this title, the Administrator shall, from time to time, determine the administrative costs to the Government which in his judgment are properly allocable to insurance issued under this section and any total disability income provision attached thereto, and shall transfer from the revolving fund, or the National Service Life Insurance appropriation, as appropriate, the amount of such cost allocable to the Veterans' Administration to the appropriation 'General Operating Expenses, Veterans' Administration', and the remainder of such cost to the general fund receipts in the Treasury. The initial administrative costs of issuing insurance under this section and any total disability income provision attached thereto shall be so transferred over such period of time as the Administrator determines to be reasonable and practicable.

"(e) Notwithstanding the provisions of section 782 of this title, a medical examination (including any supplemental examination or tests) when required of an applicant for issuance of insurance under this section or any total disability income provisions attached thereto shall be at the applicant's own expense by a duly licensed physician.

"(f) No insurance shall be granted under this section to any person referred to in section 107 of this title or to any person while on active duty or active duty for training under a call or order to such