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quired for a full and true disclosure of the facts. An accurate stenographic record shall be taken of the testimony of each witness in each hearing conducted by the Board, and a transcript of such testimony shall be filed in the office of the Board.
"LIMITATIONS AND SAVING PROVISIONS "SEC. 11. (a) No payment may be made under this Act to any tax authority with respect to any parcel of Federal property for any period for which such tax authority is eligible to receive from any Federal agency any payment with respect to such property under (1) any other provision of law which authorizes any payment of real property tax or any payment in lieu of the payment of real property tax, or (2) any revenue-sharing arrangement.
“(b) No payment may be made under this Act to any tax authority with respect to (1) any power properly owned or controlled by the Tennessee Valley Authority, or (2) any portion of any multipurpose property owned or controlled by such Authority which is allocated to power purposes. With respect to those properties and parts of properties, such Authority shall continue to make payments to States and to tax authorities, as a charge against its power operations, in accordance with section 13 of the Tennessee Valley Authority Act of 1933 (48 Stat. 66, as amended; 16 U.S.C. 831L). With respect to other properties and parts of properties owned or controlled by the Tennessee Valley Authority, such Authority shall make payments in accordance with the provisions of this Act in addition to the payments required to be made under section 13 of the Tennessee Valley Authority Act of 1933
“(c) Nothing contained in this Act shall bar the making of any payment under any provision of law or revenuesharing arrangement referred to in subsection (a) or subsection (b).
“(d) The failure of any Federal agency to make, or to make timely payment of, any payment authorized by this Act with respect to any Federal property shall not subject
“(1) any Federal agency, or any purchaser of such property from any Federal agency, to the payment of any tax, penalty, penalty interest, or other charge; or
“(2) such property to any lien, attachment, foreclosure, or other proceeding not specifically authorized by this Act.
“(e) Nothing contained in this Act, shall limit or impair any power which any tax authority may have under any other provision or principle of law to levy upon or collect from any taxable person any tax upon any interest in Federal possessed by such person, or with respect to the possession or use by such person of any Federal property.
"APPROPRIATIONS "SEC. 12. There are hereby authorized to be appropriated to the Board, and to
each Federal agency controlling any Federal property, such sums as may be required for the discharge of its duties and obligations under this Act. Any sum determined by the Board to be payable under section 8 of this Act by any Federal agency shall be considered to be a necessary expense of such agency." insert the following:
That this Act may be cited as the "Federal Contributions to State and Local Governments Act".
Declaration of purpose Sec. 2 (a) Although the United States is under no constitutional obligation to pay tares, or to make financial contributions in lieu of taxes, to any State or to any political subdivision or instrumentality thereof with respect to any property of the Federal Government, the Congress has recognized that the exemption of Federal property from taxation by State and local governments has worked hardship upon such governments in a number of instances, and heretofore has enacted a number of legislative measures providing relief in varying forms for such governments.
(b) It is the purpose of this Act to provide for a comprehensive study of the nature and effect of such previous enactments, and for an investigation to determine the nature and effect of any further legislation which may be required for the relief of State and local governments from such hardship.
(c) It is hereby declared to be the policy of the Congress that no such additional relief shall be made to any State or local government with respect to any Federal property devoted to any Federal activity the establishment or retention of which within the territorial jurisdiction of such State or local government at any time has been solicited by such state or local government.
Commission established Sec. 3. (a) There is hereby established within the executive branch of the Government a Commission on Federal Contributions to State and Local Governments (referred to hereinafter as the "Commission").
(b) The Commission shall be composed of five members appointed by the President, selected from among individuals of public stature who have had wide experience in governmental and fiscal affairs and who are representative of the general public interest.
(c) The President shall appoint the Chairman and the Vice Chairman from among the members of the Commission. A majority of the members of the Commission shall constitute a quorum. Any vacancy in the Commission shall not affect its powers, but shall be filled in the same manner in which the original appointment was made.
(d) Members of the Commission shall receive compensation at the rate of $20,000 per annum, and shall be reimbursed for travel, subsistence, and other necessary expenses incurred by them in the performance of the duties of the Commission.
Stap of the Commission Sec. 4. (a) The Commission may appoint and fix the compensation of such personnel as it deems advisable, without regard to the provisions of the civil service laws and the Classification Act of 1949, as amended.
(6) The Commission may procure, without regard to the civil service laws and the classification laws, temporary and intermittent services to the same extent as is authorized for the departments by section 15 of the Act of August 2, 1946 (60 Stat. 810; 5 U.S.C. 55a), but at rates not to exceed $50 per diem for individuals.
Duties of the Commission Sec. 5. (a) The Commission shall conduct a comprehensive study of the nature and effect of all previous enactments of the Congress providing for
(1) the payment of to any State or local government of any tax or special assessment with respect to any Federal real or personal property;
(2) the making of any payment to any such government in lieu of the payment of any tax or special assessment with respect to any such property; or
(3) the rendition of assistance to any State or local government through the making of grants-in-aid, the sharing of revenues derived from properties of the United States, or through the furnishing of services or facilities by the United States.
(6) The Commission shall conduct a comprehensive study and investigation of the extent to which state and local governments derive benefits directly or indirectly through payments made to them (1) by persons residing or employed upon Federal property, and (2) for or in connection with any property, trade, business, occupation, or transaction situated or occurring upon Federal property.
(c) The Commission shall conduct a comprehensive investigation to determine the extent, if any, to which there is need for legislation by the Congress to provide additional financial assistance for State and local governments to relieve hardships incident to the tax-exempt status of Federal property. Such investigation shall include inquiry to determine
(1) the classes of Federal property, if any, with respect to which any such additional assistance should
(2) the nature and extent of any such additional assistance;
(3) the conditions, if any, under which such additional assistance should be granted;
(4) the annual cost to the United States of providing such financial assistance with respect to each such class of Federal property and with respect to all such classes of Federal property; and
(5) ways and means whereby State and local governments may be accorded effective right to apply property taxes in effect within their several
ing the consideration of any amendment, motion, or appeal. Pending debate,
ADJOURNMENT On motion by Mr. CLARK, at 7 o'clock and 39 minutes p.m.,
The Senate, under its order of today, adjourned until 10 o'clock a.m. tomorrow.
jurisdictions to industrial plant equipment, materials, supplies, and inventories owned by private parties and used by them for commercial purposes within plant facilities owned or controlled by departments and agencies of the United States Government.
(d) On or before February 1, 1961, the Commission shall submit to the Presi. dent an interim report for transmittal to the Congress, on or before June 1, 1961, a comprehensive final report containing
(1) the text of all provisions of law referred to in subsection (a), together with an analysis of the purpose and effect of each such provision;
(2) the findings of the Commission as to the facts disclosed by its studies and investigations made under subsections (b) and (c) of this section;
(3) its recommendations, consistent with the policy prescribed by section 2(c), as to any additional legislation the need for which has been disclosed by its investigation under subsection (c) of this section; and
(4) a detailed analysis of the rebationship between any recommendations so made and the provisions of existing law set forth in compliance with paragraph (1) of this subsection.
(e) Upon the transmittal of such report to the Congress, the Commission shall cease to exist.
Powers of the Commission Sec. 6. (a) To carry out the provisions of this Act, the Commission, or any duly authorized member or employee thereof, may hold such hearings, sit and act at such times and places, administer such oaths, and require, by subpena or otherwise, the attendance and testimony of such witnesses and the production of such books, records, correspondence, memorandums, papers, and documents as the Commission, or such member or employee, may deem advisable. Subpenas may be issued under the signature of the Chairman of the Commission or any duly designated member or employee, and may be served by any person designated by such Chairman or member. The provisions of sections 102 to 104, inclusive, of the Revised Statutes (2 U.S.C. 192-194) shall apply in the case of any failure of any witness to comply with any subpena or to testify when summoned under authority of this section.
(b) The Commission is authorized to request from any department, agency, OT independent instrumentality of the Government such information or assistance as the Commission may deem necessary or desirable to enable it to carry out its duties under this title, and such department, agency, and independent instrumentality is authorized to cooperate to the extent permitted by law.
Erpenses of the Commission Sec. 7. There is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated,
such sums as may be necessary to carry out the provisions of this Act.
It was determined in Yeas.---- 24 the negative----- Nays.--- 53
The yeas and nays having been heretofore ordered.
Senators who voted in the affirmative areAllott Dirksen
Dworshak Martin Brunsdale Fong
Goldwater Robertson Byrd, Va. Hayden
Johnson, Tex. Sparkman
Johnston, s.c. Symington
Young, N. Dak.
On motion by Mr. HUMPHREY to reconsider the vote disagreeing to the amendment,
On motion by Mr. GRUENING, The motion to reconsider was laid on the table.
The question recurring on agreeing to the reported amendment,
The reported amendment was amended on the motion of Mr. LAUSCHE.
On motion by Mr. HOLLAND to further amend the reported amendment by striking out on line 15, page 23, the following: “(2) the generation of electrical energy", Pending debate,
On motion by Mr. JOHNSON of Texas, and by unanimous consent,
Ordered, That the time for convening of the Senate tomorrow following the adjournment today be at 10 o'clock a.m., that following the conclusion of routine business tomorrow debate upon any amendment, motion, or appeal to the bill S. 910, except a motion to lay on the table, be limited to 30 minutes, and 1 hour on the question of passage of the bill, to be equally divided and controlled by the proponents and the majority leader: Provided, That in the event the majority leader is in favor of any such amendment or motion, the time in opposition thereto shall be controlled by the minority leader or some Senator designated by him: Provided further, That no amendment that is not germane to the provisions of the said bill shall be received: Provided further, That the majority and minority leaders, or either of them, may, from the time under their control on the passage of the said bill, allot additional time to any Senator dur
THURSDAY, MAY 12, 1960 The PRESIDENT pro tempore called the Senate to order at 10 o'clock a.m. and Rev. K. K. Haddaway, of Washington, D.C., offered prayer.
THE JOURNAL On motion by Mr. JOHNSON of Texas, and by unanimous consent,
The reading of the Journal of the proceedings of Wednesday, May 11, 1960, was dispensed with.
COMMITTEES AUTHORIZED TO SIT The following-named committees were authorized to sit today during the session of the Senate:
The Subcommittee on Housing of the Committee on Banking and Currency, the Subcommittee on Investigations of the Committee on Agriculture and Forestry, and the Subcommittee on the Judi. ciary of the Committee on the District of Columbia; on the request of Mr. JOHNSON of Texas. ADMINISTRATION OF OATHS FOR MEMBERS OF
ARMED FORCES The PRESIDENT pro tempore laid before the Senate a communication from the Secretary of Defense, transmitting a draft of proposed legislation to authorize certain persons to administer oaths and to perform notarial acts for persons serving with, employed by, or accompanying the Armed Forces outside the United States; which, with the accompanying paper, was referred to the Committee on Armed Services. PROPOSED TRANSFER OF NAVY MINESWEEPER
The PRESIDENT pro tempore laid before the Senate a communication from the Under Secretary of the Navy, transmitting, pursuant to law, a report on a proposed transfer of a naval vessel under section 1 of the act of August 7, 1946; which was referred to the Committee on Armed Services. MOTOR VEHICLE SAFETY IN THE DISTRICT OF
COLUMBIA The PRESIDENT pro tempore laid before the Senate a communication from the President of the Board of Commissioners of the District of Columbia, transmitting a draft of proposed legislation to amend the District of Columbia Traffic Act of 1925 and the Motor Vehicle Safety Responsibility Act of the District of Columbia so as to bring within the provisions of such acts any person operating a motor vehicle while under the influence of a drug rendering such person incapable of operating the motor vehicle safely; which, with the accompanying papers, was referred to the Committee on the District of Columbia.
EXAMINATION OF CERTAIN AIR FORCE CON
TRACTS FOR FUEL BOOSTER PUMP REPAIR KITS
The PRESIDENT pro tempore laid before the Senate a communication from the Comptroller General of the United States, transmitting, pursuant to law, a report of the examination of the pricing of fuel booster pump repair kits under the Department of the Air Force negotiated contract AF 01(601)-20268 with Thompson Ramo Wooldridge, Inc., Cleveland, Ohio; which, with the accompanying report, was referred to the Committee on Government Operations.
LAC DU FLAMBEAU RESERVATION The PRESIDENT pro tempore laid before the Senate a communication from the Assistant Secretary of the Interior, transmitting a draft of proposed legislation to permit the Secretary of the Interior to revoke in whole or in part the school agency farm reserve on the Lac du Flambeau Reservation; which, with the accompanying paper, was referred to the Committee on Interior and Insular Affairs. CHANNEL IMPROVEMENTS FOR MISSISSIPPI
RIVER The PRESIDENT pro tempore laid before the Senate a communication from the Secretary of the Army, transmitting a draft of proposed legislation authorizing additional appropriations for prosecution of the channel improvement feature of the authorized project for the Mississippi River
and Tributaries; which, with the accompanying paper, was referred to the Committee on Public Works.
provide an exemption from the provisions of such part for the emergency transportation of any motor vehicle in interstate or foreign commerce by towing (Rept. No. 1343); and
S. 2867. A bill to give effect to the convention between the United States of America and Cuba for the conservation of shrimp, signed at Habana, August 15, 1958 (Rept. No. 1346).
Mr. CLARK (for Mr. KENNEDY) from the Committee on Labor and Public Welfare, to whom was referred the bill (S. 2929) to amend the National Defense Education Act of 1958 in order to repeal certain provisions requiring affidavits of relief, reported it without amendment and submitted a report thereon (No. 1347), together with the views of the minority, and the individual views of Mr. PROUTY.
INTRODUCTION OF BILLS Bills were introduced, severally read the first and second times by unanimous consent and referred as follows:
By Mr. HOLLAND: S. 3535. A bill to amend the Internal Revenue Code of 1954 so as to permit certain ministers who have heretofore elected coverage as self-employed individuals for social security purposes to have their election for such coverage made effective with respect to their first taxable year after 1955; to the Committee on Finance.
By Mr. HAYDEN: S. 3536. A bill for the relief of Yee Mee Hong; to the Committee on the Judiciary.
By Mr. CARROLL: S. 3537. A bill to revise the boundaries of Dinosaur National Monument and provide an entrance road or roads thereto, and for other purposes; to the Committee on Interior and Insular Affairs.
By Mr. FONG: S. 3538. A bill for the relief of Aurelia Viernes; to the Committee on the Judiciary.
By Mr. MAGNUSON (by request): S. 3539. A bill to authorize the Secretary of Commerce to utilize funds received from State and local governments and private organizations and individuals for special meteorological services; and
S. 3540. A bill to provide for exceptions to the rules of navigation in certain cases; to the Committee on Interstate and Foreign Commerce.
By Mr. SPARKMAN (for himself
and Mr. CAPEHART) (by request): S. 3541. A bill to provide additional financial facilities in the Federal National Mortgage Association, to provide for the incorporation of Federal mortgage investment companies, and for other purposes; to the Committee on Banking and Currency.
By Mr. SMATHERS: S. 3542. A bill to amend part I of the Interstate Commerce Act by excluding express companies from the provisions of the fourth section; to the Committee on Interstate and Foreign Commerce.
ADDITIONAL COAUTHOR OF SENATE BILL 3361
On motion by Mr. ELLENDER, and by unanimous consent,
Ordered, That the name of Mr. FONG be added as a coauthor of the bill (S. 3361) to amend and extend the provisions of the Sugar Act of 1948. STUDY FOR DETERMINATION OF POLICY ON
NATIONAL CEMETERIES Mr. SCOTT (for himself, Mr. CLARK, Mr. Moss, Mrs. SMITH, Mr. RANDOLPH, and Mr. McGEE) submitted the following resolution (S. Res. 321); which was referred to the Committee on Interior and Insular Affairs:
Resolved, That the Senate Committee on Interior and Insular Affairs, or any duly authorized subcommittee thereof, is authorized under sections 134(a) and 136 of the Legislative Reorganization Act of 1946, as amended, and in accordance with its jurisdiction specified by rule XXV of the Standing Rules of the Senate, to examine, investigate, and make a complete study of any and all matters pertaining to national cemeteries with a view to establishing and effectuating a uniform national policy with respect to the establishing and maintaining of such national cemeteries.
SEC. 2. For the purposes of this resolution the committee, from the date on which this resolution is agreed to until January 31, 1961, inclusive, is authorized (1) to make such expenditures as it deems advisable; (2) to employ upon a temporary basis, technical, clerical, and other assistants and consultants: Provided, That the minority is authorized to select one person for appointment, and the person so selected shall be appointed and his compensation shall be so fixed that his gross rate shall not be less by more than $1,200 than the highest gross rate paid to any other employee; and (3) with the prior consent of the heads of the departments or agencies concerned, and the Committee on Rules and Administration, to utilize the reimbursable services, information, facilities and personnel of any of the departments or agencies of the Government.
SEC. 3. The committee shall report its findings, together with its recommendations for legislation as it deems advisable, to the Senate at the earliest practicable date, but not later than January 31, 1961.
SEC. 4. Expenses of the committee, under this resolution, which shall not exceed $50,000, shall be paid from the contingent fund of the Senate upon vouchers approved by the chairman of the committee. PAYMENTS TO LOCAL GOVERNMENTS IN LIEU
OF TAXES The Senate, by unanimous consent, resumed the consideration of its unfinished business, viz, the bill (S. 910) to authorize the paymerat to local governments of sums in lieu of taxes and special assessments with respect to certain Federal real property, and for other purposes.
The question being on agreeing to the amendment yesterday proposed by Mr. HOLLAND, striking out certain words on page 23, line 15,
MEMORIALS The PRESIDENT pro tempore laid before the Senate memorials of certain citizens of Wisconsin, remonstrating against Senate Resolution 94, relating to the recognition of the jurisdiction of the International Court of Justice in certain disputes; which were referred to the Committee on Foreign Relations.
REPORTS OF COMMITTEES Mr. MAGNUSON, from the Committee on Interstate and Foreign Commerce, to whom was referred the bill (H.R. 9449) to amend certain sections of title 14, United States Code, relating to personnel matters in the U.S. Coast Guard, and for other purposes, reported it without amendment and submitted a report (No. 1345) thereon.
Mr. MAGNUSON, from the Committee on Interstate and Foreign Commerce, to whom were referred the following bills, reported them each with an amendment and submitted reports thereon, as follows:
S. 1545. A bill to amend the Federal Aviation Act of 1958 so as to authorize elimination of a hearing in certain cases under section 408 (Rept. No. 1344);
S. 2375. A bill to amend part II of the Interstate Commerce Act in order to
The amendment, on a division, was agreed to.
On motion by Mr. DIRKSEN to recommit the bill to the Committee on Government Operations,
It was determined in s Yeas ---- 30 the negative
Nays.-- 52 On motion by Mr. DIRKSEN, The yeas and nays being desired by one-fifth of the Senators present.
Senators who voted in the affirmative
Goldwater Stennis Capehart Hayden
Hickenlooper Wiley Case, S. Dak. Lausche
Johnston, S.C. Smathers
McCarthy Williams, N.J. Frear
Magnuson Yarborough Gore
Mansfield Young, N. Dak. Green Morse
Young, Ohio Gruening
Muskie So the motion to recommit the bill to the Committee on Government Operations was not agreed to.
On motion by Mr. HUMPHREY to reconsider the vote disagreeing to the motion,
On motion by Mr. KUCHEL, The motion to reconsider was laid on the table.
spect to certain Federal real property, and for other purposes.
The reported amendment was further amended on the motion of Mr. LAUSCHE, the motion of Mr. CASE of South Dakota, and the motion of Mr. HUMPHREY.
The committee amendment, as amended, was agreed to.
Ordered, That the bill be engrossed and read a third time.
The said bill was read the third time.
Resolved, That it pass and that the title thereof be as aforesaid.
On motion by Mr. HUMPHREY to reconsider the vote on the passage of the bill,
On motion by Mr. CARROLL, The motion to reconsider was laid on the table.
Ordered, That the Secretary request the concurrence of the House of Representatives therein.
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 agreed to the report of the committee of 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 1954, as amended, and for other purposes.
The Speaker of the House having signed three enrolled bills, viz, S. 2778, H.R. 1607, and H.R. 10474, I am directed to bring the same to the Senate for the signature of its President.
ENROLLED BILLS SIGNED The Secretary reported that he had examined and found truly enrolled the following bills:
S. 2778. An act to amend the act relating to the Commission of Fine Arts:
H.R. 1607. An act for the relief of Mrs. Anne Morgan; and
H.R. 10474. An act to authorize construction of modern naval vessels.
The PRESIDENT pro tempore thereupon signed the same. CONFERENCE REPORT ON HOUSE BILL 11510
Mr. SPARKMAN 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 (H.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 amendment insert the following: That this Act may be cited as the “Mutual Security Act of 1960”.
Statement of policy 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 international 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 in
ternational waterways; assistance under this Act and the Agricultural Trade Development and Assistance Act of 1954, 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." Chapter 1–Military Assistance
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 fiscal 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 11-Economic Assistance
Defense support 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 relates to the authority of the President to furnish defense support, insert immediately before the period at the end thereof the following provisio: “: Provided, That either all documents, papers, communications, audits, reviews, findings, recommendations, reports, and other material which relate to operations or activities under this title are furnished to the General Accounting Office and to
MESSAGE FROM THE HOUSE A message from the House of Representatives by Mr. Maurer, one of its clerks:
Mr. President: The House of Representatives has agreed to the amendment of the Senate to the bill (H.R. 1607) for the relief of Mrs. Anne Morgan.
The House has passed the bill (H.R. 12117) making appropriations for the Department of Agriculture and Farm Credit Administration for the fiscal year ending June 30, 1961, and for other purposes, in which it requests the concurrence of the Senate.
HOUSE BILL REFERRED The bill H.R. 12117, this day received from the House of Representatives for concurrence, was read the first and second times by unanimous consent and referred to the Committee on Appropriations. PAYMENTS TO LOCAL GOVERNMENTS IN
LIEU OF TAXES The Senate resumed the consideration of its unfinished business, viz, the bill (S. 910) to authorize the payment to local governments of sums in lieu of taxes and special assessments with re
any committee of the Congress, or any duly authorized subcommittee 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 President certifies that he has forbidden the information to be furnished pursuant to such request and gives his reasons for doing so".
(6) In section 131 (6), which relates to general authority, strike out "1960” and "$751,000,000" and substitute "1961" and "$675,000,000”, respectively.
(c) In section 141, which relates to conditions of eligibility for assistance, 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".
Development Loan Fund 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:
(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, consistent 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 Development Loan Fund, as follows:
(1) In clause (3) of the first sentence of subsection (6) 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 otherwise set aside, funds aggregating in excess of $50,000 for use in any country under this title unless (1) an application for such funds has been received for use in such country together with sufficient information and assurances to indicate reasonably that the funds will be used in an economically and technically sound manner, or (2) the President determines with respect to each such allocation, reservation, earmarking, commitment, or set-aside that it is in the national interest to use such funds pursuant to multilateral plans."
(c) In section 205(a), which relates to management, powers, and authorities, strike out "Under Secretary of State for Economic Affairs” in the first sentence and substitute “Secretary of State".
Technical cooperation Sec. 203. Title III of chapter II of the Mutual Security Act of 1954, as amended, which relates to technical cooperation, is amended as follows:
(a) In section 304, which relates to authorization, strike out "$ 179,500,000" and "1960” and substitute "$ 172,000,000" and "1961", respectively.
(6) Amend section 306, which relates to multilateral technical cooperation 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:
“(6) 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 programs 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 Advisory Board. 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 development 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 Development 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 concerning such matters set forth in this or other Acts; and such funds may also be used without regard to the provisions of section 901 (6) of the Merchant 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: Provided, 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 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 gouernments 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