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any participating country whenever he determines that (1) such country is not adhering to its agreement concluded under section 115, or is diverting from the purposes of this title assistance provided hereunder, and that in the circumstances remedial action other than termination will not more effectively promote the purposes of this title or (2) because of changed conditions, assistance is no longer consistent with the national interest of the United States or (3) the provision of such assistance would be inconsistent with the obligations of the United States under the Charter of the United Nations to refrain from giving assistance to any State against which the United Nations is taking preventative or enforcement action.56 Termination of assistance to any country under this section shall include the termination of deliveries of all supplies scheduled under the aid program for such country and not yet delivered.

NOTE.-Provisions for termination of assistance by the President are contained in section 529 of the Mutual Security Act of 1951, as amended, and section 405 of the Mutual Defense Assistance Act of 1949, as amended, on p. 32 and p. 98, respectively.

Exemption from contract

laws.

EXEMPTION FROM CONTRACT AND ACCOUNTING LAWS SEC. 119.57 When the President determines it to be in and accounting furtherance of the purposes of this title, the functions authorized under this title may be performed without regard to such provisions of law regulating the making, performance, amendment, or modification of contracts and the expenditure of Government funds as the President may specify.

NOTE.-Sec. 532 of the Mutual Security Act of 1951, as amended, provides: "The provisions of section 119 of the Economic Cooperation Act of 1948, as amended (22 U. S. C. Sec. 1517), which concern exemption from contract and accounting laws, shall apply to the performance of functions authorized by this Act." Pursuant to sec. 532 the President has issued Executive Order 10387 (see p. 191) and Executive Order 10446 (see p. 193) both of which specify laws from which certain functions authorized by the Mutual Security Act of 1951, as amended, are exempt.

56 Clause (3) in the second sentence was added by sec. 11 of Public Law 47, 81st Congress.

87 22 U. S. C. § 1517.

EXEMPTION FROM CERTAIN FEDERAL LAWS RELATING TO

EMPLOYMENT

SEC. 120.58 Service of an individual as a member of the Public Advisory Board (other than the Administrator) created by section 107 (a), as a member of an advisory committee appointed pursuant to section 107 (b), as an expert or consultant under section 104 (e), or as an expert, consultant, or technician under section 124 (d), shall not be considered as service or employment bringing such individual within the provisions of section 109 or 113 of the Criminal Code (U. S. C., title 18, secs. 198 and 203), of section 190 of the Revised Statutes (U. S. C., title 5, sec. 99), or of section 19 (e) of the Contract Settlement Act of 1944, or of any other Federal law imposing restrictions, requirements, or penalties in relation to the employment of persons, the performance of services or the payment or receipt of compensation in connection with any claim, proceeding, or matter involving the United States.

UNITED NATIONS

Exemption from employment laws.

58 Stat. 668. 119: Supp. 1,

41 U. S. C.

119 note.

United Nations

SEC. 121.59 (a) The President is authorized to request Cooperation of the cooperation of or the use of the services and facilities of the United Nations, its organs and specialized agencies, or other international organizations, in carrying out the purposes of this title, and may make payments by advancements or reimbursements, for such purposes, out of funds made available for the purposes of this title, as may be necessary therefor, to the extent that special compensation is usually required for such services and facilities. Nothing in this title shall be construed to authorize the Administrator to delegate to or otherwise confer upon any international or foreign organization or agency any of his authority to decide the method of furnishing assistance under this title to any participating country or the amount thereof.

NOTE.-Sec. 503 (b) (3) of the Mutual Security Act of 1951, as amended, with reference to the above retained provisions of the Economic Cooperation Act of 1948, as amended, provides: "Where any of the above provisions refer to the purposes of the Economic Cooperation Act of 1948, as amended, such reference shall be deemed to be to the purpose of this Act, as amended."

58 22 U. S. C. § 1518.

59 22 U. S. C. § 1519. Subsections (b) and (c) of this section were repealed by sec. 7 (c) of the Mutual Security Act of 1952.

China Aid Act

of 1948.

VI. ASSISTANCE TO THE FAR EAST

A. Text of the China Aid Act of 1948, Title IV of the
Foreign Assistance Act of 1948, Public Law 472,
Eightieth Congress [S. 2202], 62 Stat. 158,
approved April 3, 1948

TITLE IV

SEC. 401. This title may be cited as the "China Aid Act of 1948."

SEC. 402.2 Recognizing the intimate economic and other relationships between the United States and China, and recognizing that disruption following in the wake of war is not contained by national frontiers, the Congress finds that the existing situation in China endangers the establishment of a lasting peace, the general welfare and national interest of the United States, and the attainment of the objectives of the United Nations. It is the sense of the Congress that the further evolution in China of principles of individual liberty, free institutions, and genuine independence rests largely upon the continuing development of a strong and democratic national government as the basis for the establishment of sound economic conditions and for stable international economic relationships. Mindful of the advantages which the United States has enjoyed through the existence of a large domestic market with no internal trade barriers, and believing that similar advantages can accrue to China, it is declared to be the policy of the people of the United States to encourage the Republic of China and its people to exert sustained common efforts which will speedily achieve the internal peace and economic stability in China which are essential for lasting peace and prosperity in the world. It is further declared to be the policy of the people of the United States to encourage the Republic of China in its efforts to maintain the genuine independence and the administrative integrity of China, and to sustain and strengthen principles of individual liberty and free institutions in China through a program of assistance based on self-help and cooperation: Provided, That no assistance to China herein contemplated shall seriously impair the economic stability of the United States. It is further declared to be the policy of the United States that assistance provided by

1 See 22 U. S. C. § 1541 note.

2 22 U. S. C. § 1541.

the United States under this title should at all times be dependent upon cooperation by the Republic of China and its people in furthering the program: Provided further, That assistance furnished under this title shall not be construed as an express or implied assumption by the United States of any responsibility for policies, acts, or undertakings of the Republic of China or for conditions which may prevail in China at any time.

SEC. 403.3 Aid provided under this title shall be provided under the applicable provisions of the Economic Cooperation Act of 1948 which are consistent with the purposes of this title. It is not the purpose of this title that China, in order to receive aid hereunder, shall adhere to a joint program for European recovery.

SEC. 404. (a) In order to carry out the purposes of this title, there is hereby authorized to be appropriated to the President for aid to China a sum not to exceed $338,000,000 to remain available for obligation for the period of one year following the date of enactment of this Act.

Appropriation authorized.

appropriation

(b) There is also hereby authorized to be appropriated Additional to the President a sum not to exceed $125,000,000 for authorized. additional aid to China through grants, on such terms as the President may determine and without regard to the provisions of the Economic Cooperation Act of 1948, to remain available for obligation for the period of one year following the date of enactment of this Act.

agreement.

SEC. 405.5 An agreement shall be entered into between Bilateral China and the United States containing those undertakings by China which the Secretary of State, after consultation with the Administrator for Economic Cooperation, may deem necessary to carry out the purposes of this title and to improve commercial relations with China.

by RFC.

SEC. 406. Notwithstanding the provisions of any other Advances law, the Reconstruction Finance Corporation is authorized and directed, until such time as an appropriation is made pursuant to section 404, to make advances, not to exceed in the aggregate $50,000,000, to carry out the provisions of this title in such manner and in such amounts as the President shall determine. From appropriations authorized under section 404, there shall be repaid without interest to the Reconstruction Finance Corporation Repayment the advances made by it under the authority contained to RFC. herein. No interest shall be charged on advances made by the Treasury to the Reconstruction Finance Corporation in implementation of this section.

3 22 U. S. C. § 1542.

422 U. S. C. & 1543: For citations to subsequent authorizations see sec. 202 of the China Area Aid Act of 1950 and footnotes 16 and 18 thereto, printed on p. 89.

522 Ú. S. C. § 1544.

22 U. S. C. 8 1545.

Joint Commis

sion on Rural

in China.

SEC. 407. (a) The Secretary of State, after consultaReconstruction tion with the Administrator, is hereby authorized to conclude an agreement with China establishing a Joint Commission on Rural Reconstruction in China, to be composed of two citizens of the United States appointed by the President of the United States and three citizens of China appointed by the President of China. Such Commission shall, subject to the direction and control of the Administrator, formulate and carry out a program for reconstruction in rural areas of China, which shall include such research and training activities as may be necessary or appropriate for such reconstruction: Provided, That assistance furnished under this section shall not be construed as an express or implied assumption by the United States of any responsibility for making any further contributions to carry out the purposes of this section.

Reservation.

Far Eastern Economic Assistance Act of 1950.

China.

63 Stat. 55; 22 U. S. C.

1543 note.

(b) Insofar as practicable, an amount equal to not more than 10 per centum of the funds made available under subsection (a) of section 404 shall be used to carry out the purposes of subsection (a) of this section. Such amount may be in United States dollars, proceeds in Chinese currency from the sale of commodities made available to China with funds authorized under subsection (a) of section 404, or both.

B. Text of the Far Eastern Economic Assistance Act
of 1950, Public Law 447, Eighty-first Congress
[S. 2319], 64 Stat. 5, approved February 14, 1950,
as amended by Section 107 of Title I of Public
Law 535, Eighty-first Congress [H. R. 7797], 64
Stat. 202, appproved June 5, 1950

AN ACT To provide economic assistance to certain areas of the
Far East.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act be cited as the "Far Eastern Economic Assistance Act of 1950".

SEC. 2. To enable the President until June 30, 1950, to obligate funds heretofore appropriated for assistance in certain areas of China, section 12 of Public Law 47, Eighty-first Congress, is amended by striking out "February 15, 1950" and inserting in lieu thereof "June 30, 1950".

722 U. S. C. § 1546.

Text as amended is printed in footnote 16 on p. 88.

• Authorizations of further appropriations for economic assistance in the area of China are contained in sec. 202 of the China Area Aid Act of 1950, printed on pp. 88-89; in sec. 302 (a) of the Mutual Security Act of 1951, as amended, printed on p. 9, and in sec. 541 of the Mutual Security Act of 1951, as amended, text on p. 38.

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