Page:United States Statutes at Large Volume 67.djvu/196

 160

IIUS^C^M'

63 Stat. 714. 22 USC 1574.

22 u^c' ^5^6. Ante, p. 158. 22 USC 1580.

PUBLIC LAW 118-JULY 16, 1953

l67 S T A T.

"(3) give appropriate emphasis to underdeveloped and new market areas; "(4) obtain assurance that the purchasing countries will not resell or transship to other countries or use for other than domestic consumption commodities purchased under this program without specific approval by the President. "(*^) Notwithstanding section 1415 of the Supplemental Appropriation Act, 1953, or any other provision of law, the President shall use the proceeds of such sales for the purpose of this Act, giving particular regard to the following purposes— "(1) for providing military assistance to countries or mutual defense organizations eligible to receive assistance under this Act; "(2) for purchase of goods or services in friendly countries; "(3) for loans, under applicable provisions of this Act, to increase production of goods or services, including strategic materials, needed in any country with which an agreement was negotiated, or in other friendly countries, with the authority to use currencies received in repayment for the purposes stated in this section or for deposit to the general account of the Treasury of the United States; "(4) for developing new markets on a mutually beneficial basis; " (5) for grants-in-aid to increase production for domestic needs in friendly countries; "(6) for purchasing materials for United States stockpiles. " (d) I n carrying out the provisions of this section, the President shall take special precaution to safeguard against the displacement of foreign exchange earnings which would otherwise accrue to the United States or any friendly nations. "(e) The President is authorized to enter into such agreements with third countries receiving goods accruing from the proceeds of sales made pursuant to this section as he deems necessary to effectuate the purpose of this Act." SEC. 707. The Mutual Defense Assistance Act of 1949, as amended (22 U.S.C. 1571-1604), is further amended as follows: (a) EXCESS EQUIPMENT.—Immediately before the period in the next to last Sentence of section 403(d) (relating to limitation on furnishing of excess equipment), insert a comma and the following: "and after June 30, 1953, by an additional $200,000,000". (b) SALES OF MILITARY EQUIPMENT.—Strike out the word "The" where it appears at the beginning of section 408(e)(1) (relating to sales of military equipment) and insert in lieu thereof the following: "Notwithstanding the provisions of section 530(a) of the Mutual Security Act of 1951, as amended, the". (c) DEPENDABLE UNDERTAKING PROCEDURE.—Amend the last sentence (jf section 408(e)(2) (relating to sales of military equipment) to read as follows: "Before a contract is entered into, or rehabilitation work is undertaken, such nation, or international military organization or headquarters, shall (A) provide the United States with a dependable undertaking to pay the full amount of such contract or the cost of such rehabilitation which will assure the United States against any loss on the contract, or rehabilitation work, and (B) shall make funds available in such amounts and at such times as may be necessary to meet the payments required by the contract or the rehabilitation work in advance of the time such payments are due, in addition to the estimated amount of any damages and costs that may accrue from the cancellation of such contract or rehabilitation work: Provided, That the total amount of outstanding contracts under this subsection.

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