CARGO AIRCRAFT NOT LEASED TO PRIVATE OPERATORS

SEC. 8. The Corporation shall not acquire the cargo aircraft in excess of the number which can be absorbed by private operators through leases under section 7.

RESEARCH AND DEVELOPMENT

SEC. 9. (a) The Corporation is authorized and directed to initiate and support research and experiments for the purpose of developing new and improved types of cargo aircraft.

(b) The Corporation may do all things necessary to carry out the provisions of this section, and, without being limited thereby, the Corporation—

(1) may enter into contracts or other arrangements for the carrying on by organizations or individuals, including other agencies of the United States, of such research and experiments as it deems necessary;

(2) may enter into such contracts or other arrangements, or modifications thereof, without legal consideration, without performance or other bonds, and without regard to section 3709 of the Revised Statutes (41 U. S. C., sec. 5); and

(3) may make advance, progress, and other payments which relate to such research and experiments without regard to the provisions of section 3648 of the Revised Statutes (31 U. S. C., sec. 529).

(c) Each contract or arrangement, or modification thereof, made pursuant to this section, shall contain, wherever appropriate

(1) a provision for the recovery of so much of the costs incurred by the Corporation in connection therewith as the Corporation deems practicable and expedient;

(2) a provision that cargo aircraft manufactured from types developed or substantially improved pursuant to this section shall be sold at a price allowing a reasonable profit, not exceeding such profit as may be prescribed by the Corporation;

(3) such provisions, consistent with the laws relating to the issuance or use of patents, governing the disposition and use of inventions made pursuant to such contract or arrangement, or modification thereof as will, in the judgment of the Corporation, best protect the public interest and the equities of the individual or organization with which such contract or arrangement, or modification thereof, is made; and

(4) a provision that cargo aircraft manufactured from types developed or substantially improved pursuant to this section shall be sold or resold only to purchasers who, by contract with the Corporation, have undertaken (A) to make no changes in such aircraft without first obtaining the approval of the Corporation; (B) to make, for an agreed sum payable by the Corporation, such changes in such aircraft as the Corporation may prescribe; and (C) when directed to do so pursuant to section 10, to surrender, utilize, or operate such aircraft. Each such contract between a purchaser and the Corporation shall contain terms and conditions relating to the surrender or utilization and operation of the aircraft in the interests of national security pursuant to section 10, and the compensation to be paid therefor.

POWERS OF THE PRESIDENT WITH RESPECT TO RECAPTURE OR UTILIZATION OF CARGO AIRCRAFT

SEC. 10. (a) Whenever the President determines that such action is advisable in the interests of national security

(1) he may direct the Corporation (A) to recapture such of the cargo aircraft leased pursuant to section 8 or (B) to require the surrender of such of the cargo aircraft manufactured from types developed or substantially improved pursuant to section 10, as he may deem necessary; and when so directed the Corporation shall take appropriate action to recapture, or to require the surrender of, such aircraft;

(2) he may require (A) any person leasing aircraft pursuant to section 8 or (B) any purchaser of aircraft manufactured from types developed or substantially improved pursuant to section 10, to utilize and operate such aircraft for such purposes and in such manner as he shall direct.

(b) Aircraft recaptured or surrendered pursuant to subsection (a) (1) of this section shall be utilized for such purposes and in such manner as the Secretary of the Air Force shall prescribe as advisable in the interests of national security

DUTY OF CIVIL AERONAUTICS BOARD IN RELATION TO UTILIZATION OF CARGO AIRCRAFT

SEC. 11. Subsection (d) of section 401 of the Civil Aeronautics Act of 1938, as amended, is amended by adding at the end thereof the following paragraph: "(3) It is hereby declared to be the policy of Congress to encourage and promote the maximum utilization for commercial purposes of cargo aircraft, and the Civil Aeronautics Board, in the issuance of certificates under this section, shall take all appropriate action for the purpose of effectuating such policy to the greatest extent practicable."

AMENDMENTS RELATING TO FOREIGN AIR TRANSPORTATION BY AIR CARRIERS

SEC. 12. (a) Subsection (a) of section 404 of the Civil Aeronautics Act of 1938, as amended, is hereby amended by striking out the words "interstate and overseas".

(b) Subsection (d) of section 1002 of the Civil Aeronautics Act of 1938, as amended, is hereby amended by striking out the words "interstate or overseas", and by striking out the following: ": Provided, That as to rates, fares and charges for overseas air transportation, the Authority shall determine and prescribe only a just and reasonable maximum or minimum or maximum and minimum rate, fare, or charge".

(c) Subsection (f) of section 1002 of the Civil Aeronautics Act of 1938, as amended, is hereby amended by striking out the words "air carrier or" wherever appearing in such subsection.

(d) The first sentence of subsection (g) of section 1002 of the Civil Aeronautics Act of 1938, as amended, is hereby amended by striking out the words "interstate or overseas".

(e) Subsection (i) of section 1002 of the Civil Aeronautics Act of 1938, as amended, is hereby amended by striking out the words "interstate or overseas" and by striking out the following: ": Provided, That as to joint rates, fares, and charges for overseas air transportation the Authority shall determine and prescribe only just and reasonable maximum or minimum or maximum and minimum joint rates, fares, or charges".

(f) The amendments made by this section shall take effect ninety days after the date of the enactment of this Act.

[S. 426, 81st Cong., 1st sess.]

A BILL To provide for the development of civil transport aircraft adaptable for auxiliary military service, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That it is hereby declared to be the policy of the Congress that in the interest of national security the Federal Government should promote the employment in air commerce in as large numbers as possible of more efficient transport and cargo aircraft; and, to this end, sponsor the design, development, testing, tooling, construction, and modification of prototype transport and cargo aircraft, intended primarily for commercial use, but adaptable also for auxiliary military service.

SEC. 2. The Secretary of the Air Force (referred to hereinafter as the "Secretary") is authorized and directed

(a) To survey the national requirements for aircraft types designed primarily for commercial transport and cargo service, but adaptable also as auxiliary military transport for one or more of the departments of the National Military Establishment;

(b) To prepare and approve, from time to time, the operating and utility characteristics and specifications of such aircraft;

(c) To provide, out of funds appropriated to carry out the purposes of this Act, for the design, development, testing, tooling, construction, and modification of prototypes of each such type of aircraft, by contract or otherwise: Provided, That any construction contract entered into by the Government shall require an agreement by the manufacturer of such prototype aircraft that—

(1) sales of aircraft manufactured from such design specifications shall be made at a price allowing a reasonable profit, not exceeding such profit as may be prescribed by the Secretary; and

(2) in determining the fair domestic selling price of such aircraft, there shall not be included in the cost thereof any development, engineering, tooling, or other costs which have been reimbursed to the manufacturer by the Secretary; and

(3) aircraft manufactured from such design specifications shall be sold only to purchasers who, by contract, undertake (a) to make no changes in the design or standard equipment of such aircraft without first obtaining the approval of the Secretary; and (b) to make, for an agreed sum payable by the Secretary, such changes in the design or standard equipment of such aircraft as the Secretary may prescribe.

The Secretary shall give priority to the development and procurement of aircraft in accordance with the findings and recommendations of the Board as hereinafter authorized.

SEC. 3. (a) In preparing and approving the operating and utility characteristics and the specifications of aircraft to be constructed pursuant to this Act, the Secretary shall consult with the Civil Air Transport Evaluation and Development Board appointed for the purpose (referred to hereinafter as the "Board"). The Board shall be composed of one representative designated by each of the following agencies: The United States Air Force, the United States Navy, the National Advisory Committee for Aeronautics, the Civil Aeronautics Administration, the Civil Aeronautics Board, and such other agencies of the Federal Government concerned with aeronautics, as the Secretary may, from time to time, determine. (b) To assist the Board in carrying out its functions, the Secretary is authorized to establish an industry advisory committee composed of not less than six members appointed by the Board with the approval of the Secretary. Each member of such committee shall serve for a term of two years, except that (1) the terms of three of the members first taking office after the enactment of this Act shall expire at the end of one year, and (2) any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the unexpired term of the member whom he succeeds. No member shall be eligible to serve continuously for more than one term unless in the opinion of the Secretary his reappointment is necessary to effectuate the purposes of this Act. Members of such committee may be designated without regard to the civil-service laws or the Classification Act of 1923, as amended, and shall receive such compensation, not in excess of $50 for each day or part of a day actually devoted to the performance of the duties of such committee, as the Secretary shall determine. Each member of such committee shall be allowed actual necessary transportation expenses and an allowance not to exceed $10 per diem in lieu of subsistence when engaged in the performance of the duties of such committee at any place other than his permanent residence or place of business. Nothing contained in section 41, 109, 112, or 113 of the Criminal Code (U. S. C., title 18, secs. 93, 198, 202, and 203), section 190 of the Revised Statutes (U. S. C., title 41, sec. 119), or any other provision of 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, shall apply to any such person solely by reason of membership on such committee: Provided, That the provisions of the Act of July 12, 1870 (R. S. 3679; U. S. C., title 31, sec. 665), as amended, shall not apply to the acceptance of voluntary service by any member of any such committee.

(c) The Chairman of the Board shall be designated by the Secretary from among the members thereof, and the Board shall act in accordance with such regulations as the Secretary may, from time to time, prescribe. The Board is authorized and directed to consult with manufacturers of aircraft, and with United States flag operators of transport aircraft. Members of the Board shall serve as such without additional compensation, but each member of the Board shall be allowed actual necessary transportation expenses and an allowance not to exceed $10 per diem, in lieu of subsistence, when engaged in the performance of the duties of the Board at any place other than his permanent station.

(d) The Secretary is authorized, subject to the civil-service laws and the Classification Act of 1923, as amended, but without regard to any provision of law limiting the number of civilian personnel which may be employed by the Department of the Air Force, to employ and fix the compensation of such personnel as may be deemed necessary to assist the Board and the Secretary in carrying out their respective functions under this Act.

SEC. 4. It shall be the duty of the Board to advise the Secretary concerning

(a) The problems involved in the development of aircraft types designed primarily for passenger transport and cargo service, but adaptable also for auxiliary military service.

(b) The operating and utility characteristics deemed necessary or desirable in such aircraft.

(c) Preliminary and final design specifications for such aircraft.

(d) The allotment by the Secretary, from funds appropriated to carry out the purposes of this Act, of appropriate sums for design, development, testing, construction, tooling, and modification of prototypes of each such type of aircraft. SEC. 5. The Secretary is authorized to procure and test prototype aircraft from any manufacturer whose design is approved by the Secretary: Provided, however, That, in the event the manufacturer whose design is so approved is not in a position to produce promptly the prototype aircraft desired, then and in that event the Secretary may procure such prototype aircraft from any other qualified manufacturer.

SEC. 6. Aircraft manufactured from specifications approved pursuant to the provisions of this Act shall not be sold direct or by resale to either foreign governments or other foreign users without the approval of the Secretary.

SEC. 7. The Secretary is authorized and directed to conduct a study of means and methods whereby costs incurred by the United States pursuant to this Act may be recovered by the United States in whole or in part as deemed to be practicable and expedient, and to transmit to the Congress at the earliest practicable date such recommendations as he may deem appropriate.

SEC. 8. As used in this Act

(a) The term "aircraft" shall include engines, propellers, instruments, accessories, and standard equipment for such aircraft.

(b) The term "standard equipment" means all operational features of such aircraft, including, without limitation, standard cockpit arrangement, communications facilities, and provisions for such items, but excluding commercial equipment.

(c) The term "commercial equipment" means removable furnishings and fittings, not part of the primary structure or the mechanical apparatus of such aircraft, and which is generally installed for the accommodation of passengers, baggage or cargo;

(d) The term "prototype aircraft" means the initial models of each type, built primarily for static, flight performance and service tests.

SEC. 9. The Secretary shall transmit to the Congress, on the 1st day of January in each year, a report on (1) the progress made in the accomplishment of the purposes of this Act, and (2) the amounts of the expenditures made or obligated pursuant thereto.

SEC. 10. There are hereby authorized to be appropriated to the Department of the Air Force such sums as may be necessary to carry out the purposes of this Act.

[S. 2301, 81st Cong., 1st sess.]

A BILL To promote interstate and foreign commerce and strengthen the national defense by providing for commercial cargo and transport aircraft adaptable to military transport service

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

DEFINITIONS

Section 1. For the purposes of this Act

(1) The term "Board" means the Aircraft Development Board created by this Act.

(2) The term "Advisory Committee" means the Aircraft Development Advisory Committee created by this Act.

(3) The term "transport aircraft" means aircraft of such type or types as in the judgment of the Board are (i) suitable for efficient use for the transportation of cargo, freight, or passengers in air commerce, and (ii) capable of being readily adapted and used for military transport purposes; and such term includes aircraft equipment which, in the judgment of the Board, will increase efficiency in the operation or utilization of such aircraft.

(4) The term "prototype transport aircraft" means the initial model or models of each type of aircraft developed from research and experimentation under this Act, built primarily for static tests, flight performance, and service tests.

(5) The term "aircraft equipment" means accessories, appliances, devices, instruments, propellers, engines, spare parts, and other equipment of whatever description used, or capable of being or intended to be used on the aircraft, in the operation or maintenance, or loading or unloading, of the aircraft.

(6) The term "person" means an individual, partnership, corporation, association, joint-stock company, trust or other organization.

(7) The term "air commerce" means interstate, overseas, or foreign air commerce, as defined in the Civil Aeronautics Act of 1938, as amended.

(8) The term "transfer of aircraft" means sale, lease, or other disposition, by the producer, of cargo aircraft produced under this Act.

DECLARATION OF POLICY

SEC. 2. (a) It is hereby declared to be the policy of the Congress (1) to provide for the development of transport aircraft, which the aircraft industry would not otherwise develop, of types adequate to meet the potential domestic and international commercial requirements of the United States (as determined from time to time pursuant to section 6) and also to meet the military reserve requirements of the United States (as determined from time to time pursuant to section 6); and (2) in connection with the development of such transport aircraft, to foster the optimum freedom of design and construction for maximum efficiency.

(b) It is further declared to be the policy of Congress that the Secretary of the Air Force, the Secretary of the Navy, the Secretary of Commerce, the Civil Aeronautics Board, the National Advisory Committee for Aeronautics, the Air Coordinating Committee, and all other officers, departments, and agencies having functions related to the functions set forth in this Act shall exercise such related functions in such manner, consistent with other provisions of law, as will best effectuate the policy declared in subsection (a).

AIRCRAFT DEVELOPMENT BOARD

SEC. 3. (a) There is hereby created within the Department of the Air Force a Board under the name "Aircraft Development Board". The Board shall, independently of the Secretary of the Air Force, exercise the functions vested in it by or pursuant to law, except that the budgeting, accounting, personnel, and related routine management functions of the Board shall be performed under the supervision of the Secretary of the Air Force through such facilities as he shall designate or establish, and the Secretary of the Air Force is authorized, subject to the civilservice laws and the Classification Act of 1923, as amended, but without regard to any provision of law limiting the number of civilian personnel which may be employed by the Department of the Air Force, to employ and fix the compensation of such personnel as may be deemed necessary to assist the Board and the Secretary of the Air Force in carrying out their respective functions under this Act: Provided, That to the extent possible, consistent with other duties and assignments, the personnel and facilities of the member agencies of the Board shall be used to carry out the duties of the Board.

(b) The Board shall be composed of one representative designated by each of the following agencies: Department of the Air Force, Department of the Navy, National Advisory Committee for Aeronautics, Department of Commerce, Civil Aeronautics Board, and such other agencies of the Federal Government concerned with aeronautics as the Board may from time to time determine.

(c) The Board is authorized and directed to make recommendations to the Secretary of the Air Force with respect to (1) the initiation and support of research and experimentation looking toward the development of, and the actual development of, new and improved types of transport aircraft; and (2) the production of transport aircraft from prototype transport aircraft developed pursuant to this Act.

AIRCRAFT DEVELOPMENT ADVISORY COMMITTEE

SEC. 4. There is hereby created an Aircraft Development Advisory Committee which shall advise and consult with the Board concerning general or basic policy matters arising in connection with the exercise of the functions set forth in this Act. The Advisory Committee shall consist of seven members appointed for one-year terms. Of the members of the Advisory Committee, the Board shall appoint one as a representative of the public, one as a representative of the aircraft manufacturing industry, one as a representative of the scheduled certificated airlines, one as a representative of the irregular certificated airlines, and three as representatives of the labor groups associated with aviation. Officers and em