[§ 901(a)] See appendix II, 46 U.S.C. 11. U.S. merchant vessels. Cargo prefer ence. 49 Stat. 2015. 46 U.S.C. 1241b. 68 Stat. 832. 70 Stat. 988. 75 Stat. 565. Merchant Marine Act, 1936, amendment. American-flag vessels. 68 Stat. 832. P.L. 87-266. 75 Stat. 565. 48 Stat. 500; 68 Stat. 832. 70 Stat. 187. and transport his personal effects on ships registered under the laws of the United States where such ships are available unless the necessity of his mission requires the use of a ship under a foreign flag: Provided, That the Comptroller General of the United States shall not credit any allowance for travel or shipping expenses incurred on a foreign ship in the absence of satisfactory proof of the necessity therefor. (b) 29 Whenever the United States shall procure, contract for, or otherwise obtain for its own account, or shall furnish to or for the account of any foreign nation without provisions for reimbursement, any equipment, materials, or commodities, within or without the United States, or shall advance funds or credits or guarantee the convertibility of foreign currencies in connection with the furnishing of such equipment, materials, or commodities, the appropriate agency or agencies shall take such steps as may be necessary and practicable to assure that at least 50 per centum of the gross tonnage of such equipment, materials or commodities (computed separately for dry bulk carriers, dry cargo liners, and tankers), which may be transported on ocean vessels shall be transported on privately owned United States-flag commercial vessels, to the extent such vessels are available at fair and reasonable rates for United States-flag commercial vessels, in such manner as will insure a fair and reasonable participation of United States-flag commercial vessels in such cargoes by geographic areas: Provided, That the provisions of this subsection may be waived whenever the Congress by concurrent resolution or otherwise, or the President of the United States or the Secretary of Defense declares that an emergency exists justifying a temporary waiver of the provisions of section 901 (b) and so notifies the appropriate agency or agenies: And provided further, That the provisions of this subsection shall not apply to cargoes carried in the vessels of the Panama Canal Company. Nothing herein shall repeal or otherwise modify the provisions of Public Resolution Numbered 17, Seventy-third Congress (48 Stat. 500), as amended.30 For purposes of this section, the term "privately owned United States-flag commercial vessels" shall not be deemed to include any vessel which, subsequent to the 29 With regard to supplies for the Army, Navy, and Air Force (100percent carriage) see 10 U.S.C. 2631. 30 Section 3 of Public Law 962, 84th Cong. (amending the Agricultural Trade Development and Assistance Act of 1954, as amended (68 Stat. 456)) reads as follows: of "SEC. 3. Sales of fresh fruit and the products thereof under title the Act shall be exempt from the requirements of the cargo preference laws (Public Resolution 17, Seventy-third Congress (15 U.S.C. 616a) and section 901 (b) of the Merchant Marine Act, 1936 (46 U.S.C. 1241(b))).” For transportation in United States vessels under the provisions of the Mutual Security Act of 1954, see section 509 thereof (68 Stat. 853) and the amendment to such section made by Public Law 138, 84th Cong. (69 Stat. 288), Public Law 726, 84th Cong. (70 Stat. 560), Public Law 85-141 (71 Stat. 363), and Public Law 85-477 (72 Stat. 269). See also Public Law 86-472 (74 Stat. 134), secs. 204 (e) and 401(d), relating to Indus Basin Development. date of enactment of this amendment, shall have been either (a) built outside the United States, (b) rebuilt outside the United States, or (c) documented under any foreign registry, until such vessel shall have been documented under the laws of the United States for a period of three years: Provided, however, That the provisions of this amendment shall not apply where, (1) prior to the enactment of this amendment, the owner of a vessel, or contractor for the purchase of a vessel, originally constructed in the United States and rebuilt abroad or contracted to be rebuilt abroad, has notified the Maritime Administration in writing of its intent to document such vessel under United States registry, and such vessel is so documented on its first arrival at a United States port not later than one year subsequent to the date of the enactment of this amendment, or (2) where prior to the enactment of this amendment, the owner of a vessel under United States registry has made a contract for the rebuilding abroad of such vessel and has notified the Maritime Administration of such contract, and such rebuilding is completed and such vessel is thereafter documented under United States registry on its first arrival at a United States port not later than one year subsequent to the date of the enactment of this amendment. [§ 902(a)] (c) That notwithstanding any other provision of law, 15 U.S.C. 616a. privately owned American shipping services may be utilized for the transportation of motor vehicles owned by Government personnel whenever transportation of such vehicles at Government expense is otherwise authorized by law. SEC. 902.31 (a) Whenever the President shall proclaim 46 U.S.C. 1242. 31 For the purposes of section 902(a), World War II and the national emergencies of September 8, 1939, and May 27, 1941 were terminated by the Act of July 25, 1947 (Public Law 239, 80th Cong.; 61 Stat. 449). The President, on December 16, 1950, issued a Proclamation of National Emergency (15 F.R. 9029). See under heading "Maritime Activities", provisions creating a Vessels Operations Revolving Fund and prescribing limitations on computation of payments for requisition, purchase, or loss of vessels in Public Law 45, 82d Cong. (65 Stat. 59), 46 U.S.C. 1241a. See also in this connection, Public Law 455, 82d Cong. (66 Stat. 413), Public Law 195, 83d Cong. (67 Stat. 381), Public Law 471, 83d Cong. (68 Stat. 427), Public Law 121, 84th Cong. (69 Stat. 231), Public Law 604, 84th Cong. (70 Stat. 319), Public Law 85-52 (71 Stat. 70), and Public Law 85-469 (72 Stat. 226). See also Public Law 85-721 (72 Stat. 710). See the provision of the Supplemental Independent Offices Appropriation Act, 1949, approved June 30, 1948 (Public Law 862, 80th Cong.; 62 Stat. 1196), which reads as follows: "Whenever, in connection with any transaction involving the sale, purchase, or requisition of any vessel, the United States shall be or become obligated to pay any sum to the other party to the transaction and said other party shall be or is indebted to the United States on account of any transaction involving the sale, purchase, or requisition of any vessel the amount so owing to the United States shall be deducted from the amount due the other party, and hereafter no officer or employee of the Government shall pay to such other party a sum greater than the net amount owing the other party.” See similar (temporary) provision in the Independent Offices Appropriation Act, 1948, approved July 30, 1947 (Public Law 269, 80th Cong. ; 61 Stat, 585, at 604). For authority to arm American vessels in time of war or national emergency, see the Act of June 29, 1948 (Public Law 817, 80th Cong.; 62 Stat. 1095). For emergency authority to acquire foreign merchant vessels, see Public Law 569, 83d Congress, approved August 9, 1954 (68 Stat. 675), infra. [§ 902(a)] 49 Stat. 2015. 53 Stat. 1254. Requisition of vessels, national emergency-value and compensation. Restoration of vessel. No consequential damages. Value of ves- 46 U.S.C. 1242(c). 53 Stat. 1255. Charter of vessels. Just compensation for usecharter. 70 Stat. 985. Payment of 75 percent. that the security of the national defense makes it advis (b) When any vessel is taken or used under authority of this section, upon which vessel a construction-differential subsidy has been allowed and paid, the value of the vessel at the time of its taking shall be determined as provided in section 802 of this Act, and in determining the value of any vessel taken or used, on which a construction-differential subsidy has not been paid, the value of any national defense features previously paid for by the United States shall be excluded. (c) If any property is taken and used under authority of this section, but the ownership thereof is not required by the United States, the Commission, at the time of the taking or as soon thereafter as the exigencies of the situation may permit, shall transmit to the person entitled to the possession of such property a charter setting forth the terms which, in the Commission's judgment, should govern the relationships between the United States and such person and a statement of the rate of hire which, in the Commission's judgment, will be just compensation for the use of such property and for the services required under the terms of such charter. If such person does not execute and deliver such charter and accept such rate of hire, the Commission shall pay to such person as a tentative advance only, on account of such just compensation a sum equal to 75 per centum of such rate of hire as the same may from time to time be due under the terms of the charter so tendered, and such person shall be entitled to sue the United States in a court having jurisdiction of such claims to recover such amounts as would be equal to just compensation for the use of the property and for the services required in connection with such use: Provided, however, That in the event of an election by such person to reject the rate of hire fixed by the Commission and to sue in the courts, the excess of any amounts advanced on account of just compensation over the amount of the court judgment will be required to be refunded. In the event of loss or damage to such property, due to operation of a risk assumed by the United States under the terms of a charter prescribed in this subsection, but no valuation of such vessel or other property or mode of compensation has been agreed to, the United States shall pay just compensation for such loss or damage, to the extent the person entitled thereto is not reimbursed therefor through policies of insurance against such loss or damage. (d) In all cases, the just compensation authorized by this section shall be determined and paid by the Commission as soon as practicable, but if the amount of just compensation determined by the Commission is unsatisfactory to the person entitled thereto, such person shall be paid, as a tentative advance only, 75 per centum of the amount so determined and shall be entitled to sue the United States to recover such amount as would equal just compensation therefore, in the manner provided for by section 24, paragraph 20, and section 145 of the Judicial Code (U.S.C., 1946 edition, title 28, secs. 41(20) and 250): Provided, however, That in the event of an election to reject the amount determined by the Commission and to sue in the courts, the excess of any amounts advanced on account of just compensation over the amount of the court judgment will be required to be refunded. The existence of any valid claim by way of mortgage or maritime claim or attachment lien upon such vessel shall not prevent the taking thereof pursuant to this section: Provided, however, That in the event any such claim exists the United States Maritime Commission may in its discretion deposit such portion of the compensation hereunder, or advances on account thereof, as may equal but not exceed the amount of such claims in respect of the vessel, with the Treasurer of the United States, and the fund so deposited shall be available for the payment of such compensation, and shall be subject to be applied to the payment of the amount of any valid claim by way of mortgage or maritime lien or attachment lien upon such vessel, or of any stipulation therefor in a court of the United States, or of any State, subsisting at the time of such requisition or taking of title or possession;_ the holder of any such claim may commence prior to June [§ 902(d)] Authority to repair, operate, charter, or transfer. 30, 1943, or within six months after the first such deposit with the Treasurer and publication of notice thereof in the Federal Register, whichever date is later, and maintain in the United States district court from whose custody such vessel has been or may be taken or in whose territorial jurisdiction the vessel was lying at the time of requisitioning or taking of title or possession, a suit in admirality according to the principles of libels in rem against the fund, which shall proceed and be heard and determined according to the principles of law and to the rules of practice obtained in like cases between private parties, and any decree in said suit shall be paid out of the first and all subsequent deposits of compensation; and such suit shall be commenced in the manner provided by section 2 of the Suits in Admiralty Act and service of process shall be made in the manner therein provided by service upon the United States attorney and by mailing by registered mail to the Attorney General and the United States Maritime Commission and due notice shall under order of the court be given to all interested persons, and any decree shall be subject to appeal and revision as now provided in other cases of admiralty and maritime jurisdiction. (e) The Commission is authorized to repair, recondition, reconstruct, and operate, or charter for operation, any property acquired under authority of this section. The Commission is further authorized to transfer the possession or control of any such property to any department or agency of the Government of the United States upon such terms and conditions as may be approved by Reimbursement the President. In case of any such transfer the depart for transfer. ment or agency to which the transfer is made shall promptly reimburse the Commission for its expenditures on account of just compensation, purchase price, repairs, reconditioning, reconstruction, or charter hire for the property transferred. Such reimbursements shall be deposited in the construction fund established by section 206 of this Act. SEC. 903. The following Act and parts of Acts shall stand repealed: (a) All of the provisions of sections 3 to 8, inclusive, section 10, section 11, section 35, and section 43 of the Shipping Act, 1916, as amended. (b) All of the provisions of subsection (b) (4) of section 2, section 3, section 11, section 14, and section 35 of the Merchant Marine Act, 1920, as amended. (c) All of the provisions of sections 201, 301, 302, 401 to 413, inclusive, 601, and 702 of the Merchant Marine Act, 1928, as amended: Provided, That any contract lawfully entered into under authority of sections 401 to |