Page:United States Statutes at Large Volume 78.djvu/427

 78 STAT. ]

PUBLIC LAW 88-410~AUG. 10, 1964

385

Public Law 88-410 AN ACT To amend the Merchant Marine Act, 1936, in order to provide for the reimbursement of certain vessel construction expenses.

Be it eruwted by the Semite and House of Representatives of the Ignited States of America in Co-ngress aJisembled, That section 502(f) of the Merchant Marine Act, 1986, as amended (46 U.S.C. 1152(f)), is amended by inserting at the end thereof the following: "If, as a result of allocation under this subsection, the applicant incurs expenses for inspection and supervision of the vessel during construction and for the delivery voyage of the vessel in excess of the estimated expenses for the same services that he would have incurred if the vessel had been constructed by the lowest responsible bidder the Secretary of (Commerce (with respect to construction under title V, except section 509) shall reimburse the applicant for such excess, less one-half of any gross income the applicant receives that is allocable to the delivery voyage minus one-half of the extra expenses incurred to produce such gross income, and such reimbursement shall not be considered part of the construction-differential subsidy: Provided, That no interest shall be paid on any refund authorized under this Act. If the vessel is constructed under section 509 the Secretary of Commerce shall reduce the price of the vessel by such excess, less one-half of any gross income (minus one-half of the extra expenses incurred to produce such gross income) the applicant receives that is allocable to the delivery voyage. In the case of a vessel that is not to receive operating-differential subsidy, the delivery voyage shall be deemed terminated at the port where the vessel begins loading. In the case of a vessel that is to receive operating-differential subsidy, the delivery voyage shall be deemed terminated when the vessel begins loading at a United States port on any essential service of the operator. In either case, however, the vessel owner shall not be compensated for excess vessel delivery costs in an amount greater than the expenses that would have been incurred in delivering the vessel from the shipyard at which it was built to the shipyard of the lowest responsible bidder. If as a result of such allocation, the expenses the applicant incurs with respect to such services are less than the expenses he would have incurred for such services if the vessel had been constructed by the lowest responsible bidder, the applicant shall pay to the Secretary of Commerce an amount equal to such reduction and, if the \'essel was built with the aid of construction-differential subsidy, such payment shall not be considered a reduction of the constructiondifferential subsidy." SEC. 2. The amendment made by this Act shall be effective with respect to any contract entered into under the provisions of section 502 of the Merchant Marine Act, 1986, as amended, and the Secretary of Commerce shall, with the consent of the other parties thereto, modify any such contract entered into prior to the date of the enactment of this Act to the extent authorized by the amendment made by this Act, except that the Secretary shall not agree to any such modification which would result in a payment by the United States unless, within one year after enactment of this Act, application is made for such modification. No payment shall be made by the Secretary under the provisions of the amendment made by this Act with respect to any

August 10, 1964 [H. R. 82]

Vessels. Construction expenses. 52 Stat. 957; 70 Stat. 657.

49 Stat. 1995. 46 USC 1151 et seq.

46 USC 1159.

Modification of contract.

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