Economic Cooperation Act of 1948, as amended, only those conferred by the provisions of that Act, as amended, which are referred to in paragraph (3) of this subsection may be exercised after June 30, 1952.

(3) The provisions of the Economic Cooperation Act of 1948, as amended, referred to above are the following: Sections 1503 (e) and (f); 1504 (c); 1505; subsections (a), (c), and (d) of section 1507; 1508 (a) and (b); 1509, 1510, 1511; subsections (d), (h), and (i) of section 1512; 1513 (a); 1513 (b), except the first sentence thereof; subsections (d), (h), and (j) of section 1513; section 1515 (c) ; 1516, 1517, 1518; and subsection (a) of section 1519. 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 chapter. (Oct. 10, 1951, ch. 479, title V, § 503, 65 Stat. 378; June 20, 1952, ch. 449, § 7 (c), 66 Stat. 144.)

REFERENCES IN TEXT

The Economic Cooperation Act of 1948, as amended, referred to in the text of subsec. (b) is classified to subchapter I of chapter 19 of this title.

AMENDMENTS

1952-Act June 20, 1952, amended section by making entire former section subsec. (a) and by adding subsec. (b).

CROSS REFERENCES

Other primary responsibilities of Director for Mutual Security, see section 1652 of this title.

§ 1655. Other Agency personnel-(a) Appointment of other executive officers; status and compensation. To carry out the functions conferred by sections 1653 and 1654 of this title, there shall be in the Agency a Deputy Director, a Special Representative in Europe, and a Deputy Special Representative in Europe, who shall be appointed by the President by and with the advice and consent of the Senate. The Deputy Director shall receive compensation of $17,500 per annum. The Special Representative in Europe shall receive the same compensation and allowances as a Chief of Mission, class 1, within the meaning of chapter 14 of this title, and have the rank of Ambassador Extraordinary and Plenipotentiary. The Deputy Special Representative in Europe shall be entitled to receive the same compensation and allowances as a Chief of Mission, class 3, within the meaning of chapter 14 of this title, and have the rank of Ambassador Extraordinary and Plenipotentiary.

(b) Transfers from Economic Cooperation Administration.

Any personnel of the Economic Cooperation Administration, upon the certification of the Director for Mutual Security and with the approval of the Director of the Bureau of the Budget that such personnel are necessary to carry out the functions of the Director for Mutual Security, and all records and property of such Administration which the Director of the Bureau of the Budget determines are used primarily in the administration of the powers and functions transferred to the Director for Mutual Security by this chapter, shall be transferred to the Mutual Security Agency.

(c) Compensation of personnel transferred.

Of the personnel employed in the United States on programs authorized by this chapter, not to exceed fifty may be compensated at rates higher than those provided for grade 15 of the general schedule established by the Classification Act of 1949, as amended, and of these, not to exceed fifteen may be compensated at a rate in excess of the highest rate provided for grades of such general schedule but not in excess of $15,000 per annum. Such positions shall be in addition to those authorized by law to be filled by Presidential appointment, and in addition to the number authorized by section 1105 of Title 5. (d) Restriction on number employed.

On and after January 1, 1952, the number of United States citizens employed by the Mutual Security Agency shall be at least 10 per centum less than the number employed by the Economic Cooperation Administration on August 31, 1951: Provided, That the Director for Mutual Security shall cause studies to be made from time to time for the purpose of determining whether further reductions in personnel are feasible and consistent with the accomplishment of the purposes of this chapter: Provided further, That, ninety days after the enactment of the Mutual Security Act of 1952, the number of civilian employees who are United States citizens, receiving compensation or allowances from the administrative expense appropriations authorized by this Act, employed in the United States and overseas by or assigned to the Mutual Security Agency, or employed by or assigned to the Department of State or the Department of Defense for carrying out programs the appropriations for which are authorized by this Act, and the military personnel assigned to such programs, shall be in the aggregate at least 5 per centum less than the number so employed or assigned on June 1, 1952, except for such personnel of the Department of Defense engaged in the manufacturing, repair, rehabilitation, packing, handling, crating, or delivery of matériel: Provided further, That after the Director has determined the reduction to be effected in each agency, the determination as to which individual employees shall be retained shall be made by the head of the agency concerned. (Oct. 10, 1951, ch. 479, title V, § 504, 65 Stat. 379; June 20, 1952, ch. 449, § 7 (d)—(f), 66 Stat. 144.)

REFERENCES IN TEXT

The Economic Cooperation Administration, referred to in subsecs. (b) and (d), was abolished by section 1653 of this title.

The Classification Act of 1949, as amended, referred to in subsec. (c), is classified to chapter 21 of Title 5, Executive Departments and Government Officers and Employees.

AMENDMENTS

1952-Subsec. (a) amended by act June 20, 1952, § 7 (d). to insert provisions relating to the compensation of the executive officers.

Subsec. (c) amended by act June 20, 1952, § 7 (e), which substituted "employed in the United States on programs authorized by this chapter", in lieu of "transferred to or employed by the Mutual Security Agency", and inserted provisions authorizing these positions to be filled by Presidential appointment.

Subsec. (d), amended by act June 20, 1952, § 7 (f), which added the last two provisos.

(2) the procurement of military equipment in a manner which permits its integration with service programs;

(3) the supervision of end-item use by the recipient countries;

(4) the supervision of the training of foreign military personnel; and

(5) the movement and delivery of military end items.

(b) The establishment of priorities in the procurement, delivery, and allocation of military equipment shall be determined by the Secretary of Defense. The apportionment of funds between countries shall be determined by the President.

(c) Notwithstanding any other provision of law, beginning with July 1, 1952, the Secretary of Defense may furnish (subject to reimbursement from funds appropriated pursuant to this chapter) military assistance out of the materials of war whose production in the United States shall have been authorized for, and appropriated to, the Department of Defense: Provided, however, That nothing in this chapter shall authorize the furnishing of military items under this subsection in excess of $1,000,000,000 in value. For the purposes of this subsection (1) "value" shall be determined in accordance with section 1574 (c) of this title, and (2) the term "materials of war" means those goods, commonly known as military end items, which are required for the performance of their missions by armed forces of a nation, including weapons, military vehicles, ships of war under fifteen hundred tons, aircraft, military communications equipment, ammunition, maintenance parts and spares, and military hardware. (Oct. 10, 1951, ch. 479, title V, § 506, 65 Stat. 379; June 20, 1952, ch. 449, § 7 (g), 66 Stat. 145.)

AMENDMENTS

1952 Subsec. (c) amended by act June 20, 1952, which substituted "beginning with July 1, 1952" for "fiscal year 1952".

§1658. Coordination among representatives overseas.

The President shall prescribe appropriate procedures to assure coordination among representatives of the United States Government in each country, under the leadership of the Chief of the United

States Diplomatic Mission. (Oct. 10, 1951, ch. 479, title V, § 507, 65 Stat. 380.)

Ex. ORD. No. 10338. COORDINATION PROCEDURES Ex. Ord. No. 10338, Apr. 4, 1952, 17 F. R. 3009, provided: SECTION 1. Functions of the Chief of the United States Diplomatic Mission. (a) The Chief of the United States Diplomatic Mission in each country, as the representative of the President and acting on his behalf, shall coordinate the activities of the United States representatives (including the chiefs of economic missions, military assistance advisory groups, and other representatives of agencies of the United States Government) in such country engaged in carrying out programs under the Mutual Security Act of 1951 (hereinafter referred to as the Act) [this chapter], and he shall assume responsibility for assuring the unified development and execution of the said programs in such country. More particularly, the functions of each Chief of United States Diplomatic Mission shall include, with respect to the programs and country concerned:

(1) Exercising general direction and leadership of the entire effort.

(2) Assuring that recommendations and prospective plans and actions of the United States representatives are effectively coordinated and are consistent with and in furtherance of the established policy of the United States.

(3) Assuring that the interpretation and application of instructions received by the United States representatives from higher authority are in accord with the established policy of the United States.

(4) Guiding the United States representatives in working out measures to prevent duplication in their efforts and to promote the most effective and efficient use of all United States officers and employees having mutual security responsibilities.

(5) Keeping the United States representatives fully informed as to current and prospective United States policies.

(6) Prescribing procedures governing the coordination of the activities of the United States representatives, and assuring that these representatives shall have access to all available information essential to the accomplishment of their prescribed duties.

(7) Preparing and submitting such reports on the operation and status of the programs under the Act as may be directed by the Director for Mutual Security. (b) Each Chief of United States Diplomatic Mission shall perform his functions under this order in accordance with instructions from higher authority and subject to established policies and programs of the United States.

(c) No Chief of United States Diplomatic Mission shall delegate any function conferred upon him by the provisions of this order which directly involves the exercise of direction, coordination, or authority.

SEC. 2. Referral of unresolved matters. The Chief of the United States Diplomatic Mission in each country shall initiate steps to reconcile any divergent views arising in the country concerned with respect to programs under the Act. If agreement cannot be reached the Chief of the United States Diplomatic Mission shall recommend a course of action, and such course of action shall be followed unless a United States representative requests that the issue be referred to higher authority for decision. If such a request is made, the parties concerned shall promptly refer the issue to higher authority for resolution prior to taking action at the country level. The Director for Mutual Security shall assure expeditious decisions on matters so submitted.

SEC. 3. Effect of order on United States representatives. (a) All United States representatives in each country shall be subject to the responsibilities imposed upon the Chief of the United States Diplomatic Mission in such country by section 507 of the Mutual Security Act of 1951 [this section] and by this order.

(b) Subject to compliance with the provisions of this order and with the prescribed procedures of their respective agencies, all United States representatives affected by this order (1) shall have direct communication

with their respective agencies and with such other parties and in such manner as may be authorized by their respective agencies, (2) shall keep the respective Chiefs of United States Diplomatic Missions and each other fully and currently informed on all matters, including prospective plans, recommendations, and actions, relating to programs under the Act, and (3) shall furnish to the respective Chiefs of United States Diplomatic Missions, upon their request, documents and information concerning the said programs.

SEC. 4. Further coordination procedures. The Director for Mutual Security shall be responsible for assuring the carrying out of the provisions of this order. He is authorized to prescribe, after consultation with the interested Government agencies, any additional procedures he may find necessary to carry out the provisions of this order. SEC. 5. Prior orders. (a) To the extent that provisions of any prior order are inconsistent with the provisions of this order, the latter shall control, and any such prior provisions are amended accordingly. All orders, regulations, rulings, certificates, directives, and other actions relating to any function affected by this order shall remain in effect except as they are inconsistent herewith or are hereafter amended or revoked under proper authority.

(b) Nothing in this order shall affect Executive Orders Nos. 10062, 10063, and 10144 of June 6, 1949, June 13, 1949, and July 21, 1950, respectively [set out as notes under section 901 of this title].

(c) Executive Orders Nos. 9857, 9862, 9864, 9914, 9944, 9960, 10208, and 10259 of May 22, 1947, May 31, 1947, December 26, 1947, April 9, 1948, May 19, 1948, January 25, 1951, and June 27, 1951, respectively, are hereby revoked.

§ 1659. Other laws as unaffected.

Nothing in this chapter shall be construed to modify the provisions of section 1557j of this title or the provisions of the Institute of Inter-American Affairs Act. (Oct. 10, 1951, ch. 479, title V, § 508, 65 Stat. 380.)

REFERENCES IN TEXT

The Institute of Inter-American Affairs Act, referred to in the text, is classified to sections 281-281b and 281c2811 of this title.

§ 1660. Detail of personnel to foreign governments and international organizations.

Whenever the President determines it to be consistent with and in furtherance of the purpose of this chapter, the head of any Government agency is authorized to

(a) detail or assign any officer or employee of his agency to any office or position to which no compensation is attached with any foreign government or foreign government agency: Provided, That such acceptance of office shall in no case involve the taking of an oath of allegiance to another government; and

(b) detail, assign, or otherwise make available to any international organization in which the United States participates, any officer or employee of his agency to serve with or as a member of the international staff of such organizations.

Any such officer or employee, while so assigned or detailed, shall be considered, for the purpose of preserving his privileges, rights, seniority, or other benefits as such, an officer or employee of the Government of the United States and of the Government agency from which assigned or detailed, and he shall continue to receive compensation, allowances, and benefits from funds made available to that agency out

of funds authorized under this chapter. (Oct. 10, 1951, ch. 479, title V, § 509, 65 Stat. 380.)

§ 1661. Loyalty and security investigation of employees. No citizen or resident of the United States may be employed, or if already employed, may be assigned to duties by the Director or the Secretary of State under this chapter or the Act for International Development for a period to exceed three months unless (a) such individual has been investigated as to loyalty and security by the Civil Service Commission and a report thereon has been made to the Director or the Secretary of State, as the case may be, and until the Director or the Secretary of State has certified in writing (and filed copies thereof with the Senate Committee on Foreign Relations and the House Committee on Foreign Affairs) that, after full consideration of such report, he believes such individual is loyal to the United States, its Constitution, and form of government, and is not now and has never been a member of any organization advocating contrary views; or (b) such individual has been investigated by a military intelligence agency and the Secretary of Defense has certified in writing that he believes such individual is loyal to the United States and filed copies thereof with the Senate Committee on Foreign Relations and the House Committee on Foreign Affairs. This section shall not apply in the case of any officer appointed by the President by and with the advice and consent of the Senate, nor shall it apply in the case of any person already employed under programs covered by this chapter who has been previously investigated in connection with such employment. (Oct. 10, 1951, ch. 479, title V, § 510, 65 Stat. 381; Apr. 5, 1952, ch. 159, § 1, 66 Stat. 43.)

REFERENCES IN TEXT

The Act for International Development, referred to in the text, is classified to subchapter VI of chapter 19 of this title.

AMENDMENTS

1952-Act Apr. 5, 1952, amended section by substituting the "Civil Service Commission" for the "Federal Bureau of Investigation."

TIME LIMIT FOR TRANSFER OF LOYALTY INVESTIGATIVE FUNCTIONS TO CIVIL SERVICE COMMISSION

Time limit for transfer of loyalty investigative functions from the Federal Bureau of Investigation to the Civil Service Commission as 180 days from Apr. 5, 1952, see note set out under section 1810 of Title 42, The Public Health and Welfare.

AVAILABILITY OF APPROPRIATIONS FOR TRANSFER OF
INVESTIGATIVE FUNCTIONS

Appropriations of departments and agencies, on whose account investigations are made, available for transfer to the Civil Service Commission or the Federal Bureau of Investigation, see note set out under section 1810 of Title 42, The Public Health and Welfare.

§ 1662. Eligibility of nations for assistance; cooperative action requirements.

(a) No military, economic, or technical assistance authorized pursuant to this chapter (other than assistance provided under the first and second paragraphs of section 1580 of this title) shall be supplied to any nation in order to further military effort unless the President finds that the supplying of such

assistance will strengthen the security of the United States and unless the recipient country has agreed to

(1) join in promoting international understanding and good will, and maintaining world peace;

(2) take such action as may be mutually agreed upon to eliminate causes of international tension; (3) fulfill the military obligations which it has assumed under multilateral or bilateral agreements or treaties to which the United States is a party;

(4) make, consistent with its political and economic stability, the full contribution permitted by its manpower, resources, facilities, and general economic condition to the development and maintenance of its own defensive strength and the defensive strength of the free world;

(5) take all reasonable measures which may be needed to develop its defense capacities; and

(6) take appropriate steps to insure the effective utilization of the economic and military assistance provided by the United States.

(b) No economic or technical assistance shall be supplied to any other nation unless the President finds that the supplying of such assistance will strengthen the security of the United States and promote world peace, and unless the recipient country has agreed to join in promoting international understanding and good will, and in maintaining world peace, and to take such action as may be mutually agreed upon to eliminate causes of international tension.

(c) (1) The Congress of the United States finds that mutual security can be realized only to the extent that the countries who receive our aid do their utmost to help themselves and cooperate among themselves and with the United States to the fullest extent in achieving the objectives of the free world. In providing assistance under this chapter, the Congress of the United States affirms the desire of the United States to continue to use its leadership and resources for the purpose of uniting the efforts of recipient countries to the end that positive accomplishments toward mutual security may be realized with a maximum of efficiency and a minimum of delay and cost.

(2) In addition to the provisions of subsections (a) and (b) of this section, the Director, in administering this chapter, shall insure that, where necessary to the mutual security effort, no country shall receive any assistance hereunder unless it take decisive action to marshal its resources collectively, or individually where more suitable, with integration and unification plans in the appropriate area, and participate in programs which promote collective security in that area. The Director shall insure that, where suitable or necessary to the success of the mutual security effort, countries take adequate steps to mobilize their industries for mutual defense and gear their fiscal, budgetary, capital, political and military resources to the objectives of this chapter and take appropriate other steps toward self-help and mutual cooperation.

(3) Assistance shall be given on a country-bycountry basis to a degree and at a rate commensu

rate with the rate of progress made in the attainment of the objectives of this chapter. (Oct. 10, 1951, ch. 479, title V, § 511, 65 Stat. 381; June 20, 1952, ch. 449, § 7 (h), 66 Stat. 145.)

AMENDMENTS

1952-Subsec. (c) added by act June 20, 1952. EFFECTIVE DATE

Section as effective ninety days after October 10, 1951, see note under section 1651 of this title.

§ 1663. Future appropriation authorizations.

In order to carry out the purpose of this chapter, with respect to those countries eligible to receive assistance as provided herein, funds shall be available as authorized and appropriated to the President each fiscal year. (Oct. 10, 1951, ch. 479, title V, § 512, 65 Stat. 382.)

§ 1664. Transferability of appropriations under this chapter; special use of funds.

(a) Whenever the President determines it to be necessary for the purpose of this chapter, not to exceed 10 per centum of the funds made available under any subchapter of this chapter may be transferred to and consolidated with funds made available under any other subchapter of this chapter in order to furnish, to a different area, assistance of the kind for which such funds were available before transfer. Whenever the President makes any such determination, he shall forthwith notify the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives. In the case of the transfer of funds available for military purposes, he shall also forthwith notify the Committees on Armed Services of the Senate and House of Representatives.

(b) Not more than $100,000,000 of the funds made available under the Mutual Security Act of 1952, of which not more than $20,000,000 may be allocated to any one country, may be used or supplied without regard to any conditions as to eligibility contained in this chapter, or any other Act for which funds are authorized by this chapter, when the President determines that such use is important to the security of the United States. The President shall notify the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives upon making any such determination. (Oct. 10, 1951, ch. 479, title V, § 513, 65 Stat. 382; June 20, 1952, ch. 449, § 7 (i), 66 Stat. 145.)

REFERENCES IN TEXT

The Mutual Security Act of 1952, referred to in the text, amended this chapter generally. For distribution, see Tables Volume.

AMENDMENTS

1952-Act June 20, 1952, amended section by making entire former section subsec. (a) and by adding subsec. (b).

§ 1665. Procurement of stimulation of production of strategic materials.

In order to reduce the drain on United States resources and to assure the production of adequate supplies of essential raw materials for the collective defense of the free world, the Director for Mutual Security is authorized to initiate projects for, and

assist in procuring and stimulating increased production of, materials in which deficiencies or potential deficiencies in supply exist among nations receiving United States assistance. (Oct. 10, 1951, ch. 479, title V, § 514, 65 Stat. 382; June 20, 1952, ch. 449, § 7 (j), 66 Stat. 146.)

AMENDMENTS

1952-Act June 20, 1952, amended section generally to provide for the collection of strategic materials.

CROSS REFERENCES

Acquisition of local currencies for purpose of increasing production of materials in which United States is deficient, see section 1670 of this title.

§ 1666. Protection of funds against attachment.

All countries participating in any United States aid program or in any international organization receiving United States aid shall be required to so deposit, segregate, or assure title to all funds allocated to or derived from any program so that the same shall not be subject to garnishment, attachment, seizure, or other legal process by any person, firm, agency, corporation, organization, or government when in the opinion of the Director any such action would interfere with the attainment of the objectives of this chapter. (Oct. 10, 1951, ch. 479, title V, § 515, 65 Stat. 382.)

§ 1667. Encouragement of free enterprise; cooperation by agencies and departments; reports.

(a) It is declared to be the policy of the Congress that this chapter shall be administered in such a way as (1) to eliminate the barriers to, and provide the incentives for, a steadily increased participation of free private enterprise in developing the resources of foreign countries consistent with the policies of this chapter, (2) to the extent that it is feasible and does not interfere with the achievement of the purposes set forth in this chapter, to discourage the cartel and monopolistic business practices prevailing in certain countries receiving aid under this chapter which result in restricting production and increasing prices, and to encourage where suitable competition and productivity, and (3) to encourage where suitable the development and strengthening of the free labor union movements as the collective bargaining agencies of labor within such countries.

(b) To accomplish the purpose of clause (1) of subsection (a) of this section, under the coordination of the Director for Mutual Security, the Mutual Security Agency, cooperating with private business groups and governmental agencies to the fullest extent possible, shall encourage a greater participation by private capital in the guaranty program and shall develop broad criteria to facilitate such participation, including programs consistent with the purposes of the Act for International Development.

(c) The Department of Commerce shall, in cooperation with such groups and agencies (including the International Bank for Reconstruction and Development), conduct a thorough study of the legal and other impediments, foreign and local, to private investment abroad, and the methods and means whereby those impediments can be removed or de

creased and shall make recommendations thereon to the Director for Mutual Security.

(d) The Department of State, in cooperation with other agencies of the Government concerned with private investment abroad, and taking into account the study and recommendations described in subsection (c) of this section, shall accelerate a program of negotiating treaties of commerce and trade, or other temporary arrangements where more suitable or expeditious, which shall include provisions to encourage and facilitate the flow of private investment to countries participating in programs under this chapter.

(e) The Technical Cooperation Administration, taking into account the study and recommendations described in subsection (c) of this section, shall encourage and facilitate a greater participation by private industrial groups or agencies in private contracts awarded by the Administration, and shall, in cooperation with the Department of Commerce and the Mutual Security Agency, find and draw the attention of private enterprise to opportunities for investment and development in underdeveloped

areas.

(f) The reports required by section 1669 of this title shall include detailed information on the implementation of this section. (Oct. 10, 1951, ch. 479, title V, § 516, 65 Stat. 382; June 20, 1952, ch. 449, § 7 (k), 66 Stat. 146.)

REFERENCES IN TEXT

The Act for International Development, referred to in the text of subsection (b), is classified to subchapter VI of chapter 19 of this title.

AMENDMENTS

1952-Act June 20, 1952, amended section by making the entire former section subsec. (a) and by adding subsecs. (b)—(f).

§ 1668. Patents and technical information—(a) Definitions.

As used in this section

(1) the term "invention” means an invention or discovery covered by a patent issued by the United States, and

(2) the term "information" means information originated by or peculiarly within the knowledge of the owner thereof and those in privity with him, which is not available to the public and is subject to protection as property under recognized legal principles.

(b) Legal remedy for unauthorized use or disclosure; jurisdiction.

Whenever, in connection with the furnishing of any assistance in furtherance of the purpose of this chapter

(1) use within the United States, without authorization by the owner, shall be made of an invention, or

(2) damage to the owner shall result from the disclosure of information by reason of acts of the United States or its officers or employees, the exclusive remedy of the owner of such invention or information shall be by suit against the United States in the Court of Claims or in the District Court of the United States for the district in