5. If the Administrator recommends the termination of military, economic, or financial assistance to any nation, after such nation has had 60-days' notice of the items covered by the Administrator's list, all military, economic, or financial assistance “shall * * * be terminated forthwith."

6. Insofar as the proposed embargo extends to items "other than arms, ammunition, implements of war, and atomic energy materials", the President may on the advice of the Administrator direct the continuance of assistance "when unusual circumstances indicate that the cessation of aid would be clearly detrimental to the security of the United States."

7. Provision is made for reports to selected congressional committees of the lists of items to be embargoed and for analysis of trade with Soviet bloc countries.

8. Provision is also made for regulation of the export of commodities, other than those covered by title I of this act, to nations threatening the security of the United States, and negotiations to control the export of such items not subject to embargo by countries receiving aid shall be carried out if the Administrator judges they should be controlled.

9. The bill makes it clear that the Administrator is to "coordinate those activities of the various departments and agencies which are concerned with security controls over exports from other countries."

PRINCIPAL DIFFERENCES BETWEEN THE KEM AMENDMENT, H.R. 4550, AND S. 1987

The Kem amendment, H.R. 4550, and S. 1987 are similar in that they accept the general proposition that the United States will not give assistance to any foreign nation which permits the export of arms, ammunition, or military material to the Soviet Union or any of its satellites when such material might coutribute to the strength of the Soviet states.

H.R. 4550 and S. 1987 are broader in scope than the Kem amendment in that they provide not only that no economic and financial assistance shall be given, but also that no military assistance shall be given in the event embargoed items are shipped to the Soviet bloc. Moreover, H.R. 4550 and S. 1987 would continue in effect despite any cease-fire in Korea which would not be the case with the Kem amendment.

H.R. 4550 and the Kem amendment are similar in that they each provide a method whereby there may be exceptions to the absolute prohibition of aid to foreign countries that may be trading with the Soviet states.

The Kem amendment authorizes exceptions to the blanket prohibition of aid "upon an official determination of the National Security Council that such exception is in the security interest of the United States." H.R. 4550, on the other hand, permits no exceptions to be made to the general rule with respect to trade in arms, ammunition, implements of war, and atomic energy materials, but it does permit exceptions to be made with respect to other materials, provided the exception is in the security interests of the United States. S. 1987, however, would permit of no exceptions with respect to the materials to which it would apply and these materials include "arms, armament, or military matériel, or articles or commodities (1) which the Secretary of Defense shall have certified ✶✶✶ are likely to be used in the manufacture of arms, armament, or military matériel, or (2) * * * would be refused export licenses, by the United States in the interest of national security."

The fundamental difference between H.R. 4550 and S. 1987 is that H.R 4550 recognizes that there may be cases in which the Executive should have discretion to continue giving assistance to certain foreign nations even though they may be engaged in some trade with the Soviet and satellite states in materials other than arms, ammunition, implements of war, and atomic energy materials. In exercising this discretion under H.R. 4550, the President must take into account the contribution these nations are making to mutual security and the importance of such assistance to the United States.

S. 1987 does not permit discretion to deal with such cases, despite the fact that it may be in the national interest to continue such aid.

H.R. 4550 would make the President responsible if such aid is continued. S. 1987 would eliminate any element of discretion on the part of the Executive once the list of items to be embargoed is prepared by the Secretary of Defense.

CONCLUSION

The committee believes that the security interests of the United States with respect to trade between nations receiving American military, economic, and financial assistance can best be protected if responsibility is clearly fixed in the executive branch to take action to prevent aid going to countries which export war materials to the Soviet and satellite states. H.R. 4550 has that effect.

The committee believes that some discretion is necessary with respect to the shipment of materials other than arms, ammunition, implements of war, and atomic energy materials to Soviet states, since there are undoubtedly a number of instances in which such trade might, on balance, be essential to the security interests of the United States and to the free world generally.

The committee believes that responsibility for exercising this discretion must be clearly fixed. H.R. 4550 makes this determination a responsibility of the President.

The committee recommends the early approval of this bill.

APPENDIX IX

TEXT OF PUBLIC LAW 213, 82D CONG., 1ST SESS. (H.R. 4550), THE MUTUAL DEFENSE ASSISTANCE CONTROL ACT OF 1951, APPROVED OCTOBER 26, 1951

AN ACT To provide for the control by the United States and cooperating foreign nations of exports to any nation or combination of nations threatening the security of the United States, including the Union of Soviet Socialist Republics and all countries under its domination, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Mutual Defense Assistance Control Act of 1951".

TITLE I-WAR MATERIALS

SEC. 101. The Congress of the United States, recognizing that in a world threatened by aggression the United States can best preserve and maintain peace by developing maximum national strength and by utilizing all of its resources in cooperation with other free nations, hereby declares it to be the policy of the United States to apply an embargo on the shipment of arms, ammunition, and implements of war, atomic energy materials, petroleum, transportation materials of strategic value, and items of primary strategic significance used in the production of arms, ammunition, and implements of war to any nation or combination of nations threatening the security of the United States, including the Union of Soviet Socialist Republics and all countries under its domination, in order to (1) increase the national strength of the United States and of the cooperating nations; (2) impede the ability of nations threatening the security of the United States to conduct military operations; and (3) to assist the people of the nations under the domination of foreign aggressors to reestablish their freedom.

It is further declared to be the policy of the United States that no military, economic, or financial assistance shall be supplied to any nation unless it applies an embargo on such shipments to any nation or combination of nations threatening the security of the United States, including the Union of Soviet Socialist Republics and all countries under its domination..

This Act shall be administered in such a way as to bring about the fullest support for any resolution of the General Assembly of the United Nations, supported by the United States, to prevent the shipment of certain commodities to areas under the control of governments engaged in hostilities in defiance of the United Nations.

SEC. 102. Responsibility for giving effect to the purposes of this Act shall be vested in the person occupying the senior position authorized by subsection (e) of section 406 of the Mutual Defense Assistance Act of 1949, as amended, or in any person who may hereafter be charged with principal responsibility for the administration of the provisions of the Mutual Defense Assistance Act of 1949. Such person is hereinafter referred to as the "Administrator".

SEC. 103. (a) The Administrator is hereby authorized and directed to determine within thirty days after enactment of this Act after full and complete consideration of the views of the Departments of State, Defense, and Commerce; the Economic Cooperation Administration; and any other appropriate agencies, and notwithstanding the provisions of any other law, which items are, for the purpose of this Act, arms, ammunition, and implements of war, atomic energy materials, petroleum, transportation materials of strategic value, and those items of primary strategic significance used in the production of arms, ammunition, and implements of war which should be embargoed to effectuate the purposes of this Act: Provided, That such determinations shall be continuously adjusted to

current conditions on the basis of investigation and consultation, and that all nations receiving United States military, economic, or financial assistance shall be kept informed of such determinations.

(b) All military, economic, or financial assistance to any nation shall, upon the recommendation of the Administrator, be terminated forthwith if such nation after sixty days from the date of a determination under section 103 (a) knowingy permits the shipment to any nation or combination of nations threatening the security of the United States, including the Union of Soviet Socialist Republics and all countries under its domination, of any item which he has determined under section 103 (a) after a full and compete investigation to be included in any of the following categories: Arms, ammunition, and implements of war, atomic energy materials, petroleum, transportation materials of strategic value, and items of primary strategic significance used in the production of arms, ammunition, and implements of war: Provided, That the President after receiving the advice of the Administrator and after taking into account the contribution of such country to the mutual security of the free world, the importance of such assistance to the security of the United States, the strategic importance of imports received from countries of the Soviet bloc, and the adequacy of such country's controls over the export to the Soviet bloc of items of strategic importance, may direct the continuance of such assistance to a country which permits shipments of items other than arms, ammunition, implements of war, and atomic energy materials when unusual circumstances indicate that the cessation of aid would clearly be detrimental to the security of the United States: Provided further, That the President shall immediately report any determination made pursuant to the first proviso of this section with reasons therefor to the Appropriations and Armed Services Committees of the Senate and of the House of Representatives, the Committee on Foreign Relations of the Senate, and the Committee on Foreign Affairs of the House of Representatives, and the President shall at least once each quarter review all determinations made previously and shall report his conclusions to the foregoing committees of the House and Senate, which reports shall contain an analysis of the trade with the Soviet bloc of countries for which determinations have been made.

SEC. 104. Whenever military, economic, or financial assistance has been terminated as provided in this Act, such assistance can be resumed only upon determination by the President that adequate measures have been taken by the nation concerned to assure full compliance with the provisions of this Act.

SEC. 105. For the purposes of this Act the term "assistance" does not include activities carried on for the purpose of facilitating the procurement of materials in which the United States is deficient.

TITLE II-OTHER MATERIALS

SEC. 201. The Congress of the United States further declares it to be the policy of the United States to regulate the export of commodities other than those specified in title I of this Act to any nation or combination of nations threatening the security of the United States, including the Union of Soviet Socialist Republics and all countries under its domination, in order to strengthen the United States and other cooperating nations of the free world and to oppose and offset by nonmilitary action acts which threaten the security of the United States and the peace of the world.

SEC. 202. The United States shall negotiate with any country receiving military, economic, or financial assistance arrangements for the recipient country to undertake a program for controlling exports of items not subject to embargo under title I of this Act, but which in the judgment of the Administrator should be controlled to any nation or combination of nations threatening the security of the United States, including the Union of Soviet Socialist Republics and all countries under its domination.

SEC. 203. All military, economic, and financial assistance shall be terminated when the President determines that the recipient country (1) is not effectively cooperating with the United States pursuant to this title, or (2) is failing to furnish to the United States information sufficient for the President to determine that the recipient country is effectively cooperating with the United States.

TITLE III-GENERAL PROVISIONS

SEC. 301. All other nations (those not receiving United States military, economic, or financial assistance) shall be invited by the President to cooperate jointly in a group or groups or on an individual basis in controlling the export of the commodities referred to in title I and title II of this Act to any nation or

combination of nations threatening the security of the United States, including the Union of Soviet Socialist Republics and all countries under its domination. SEC. 302. The Administrator with regard to all titles of this Act shall(a) coordinate those activities of the various United States departments and agencies which are concerned with security controls over exports from other countries;

(b) make a continuing study of the administration of export control measures undertaken by foreign governments in accordance with the provisions of this Act, and shall report to the Congress from time to time but not less than once every six months recommending action where appropriate; and

(c) make available technical advice and assistance on export control procedures to any nation desiring such cooperation.

SEC. 303. The provisions of subsection (a) of section 403, of section 404, and of subsections (c) and (d) of section 406 of the Mutual Defense Assistance Act of 1949 (Public Law 329, Eighty-first Congress), as amended, insofar as they are consistent with this Act, shall be applicable to this Act. Funds made available for the Mutual Defense Assistance Act of 1949, as amended, shall be available for carrying out this Act in such amounts as the President shall direct. SEC. 304. In every recipient country where local currency is made available for local currency expenses of the United States in connection with assistance furnished by the United States, the local currency administrative and operating expenses incurred in the administration of this Act shall be charged to such local currency funds to the extent available.

SEC. 305. Subsection (d) of section 117 of the Foreign Assistance Act of 1948 (Public Law 472, Eightieth Congress) as amended, and subsection (a) of section 1302 of the Third Supplemental Appropriation Act, 1951 (Public Law 45, Eighty-second Congress), are repealed.