letters of intent, purchase orders, or otherwise) for all types and kinds of property or services necessary, appropriate, or convenient for the national defense, or for the invention, development, or production of, or research concerning, any such property or services, including, but not limited to, aircraft, missiles, buildings, vessels, arms, armament, equipment or supplies of any kind, or any portion thereof, including plans, spare parts and equipment therefor, materials, supplies, facilities, utilities, machinery, machine tools, and any other equipment without any restriction of any kind as to type, character, location, or form.

4. The Department of Defense may by agreement modify or amend or settle claims under contracts heretofore or hereafter made, may make advance payments upon such contracts of any portion of the contract price, and may enter into agreements with contractors or obligors modifying or releasing accrued obligations of any sort, including accrued liquidated damages or liability under surety or other bonds. Amendments or modifications of contracts may be with or without consideration and may be utilized to accomplish the same things as any original contract could have accomplished hereunder, irrespective of the time or circumstances of the making, or the form, of the contract amended or modified, or of the amending or modifying contract, and irrespective of rights which may have accrued under the contract or the amendments or modifications thereof.

5. Proper records of all actions taken under the authority of the act shall be maintained within the Department of Defense. The Secretaries of Defense, the Army, the Navy, and the Air Force shall make such records available for public inspection except to the extent that they, or their duly authorized representatives, may respectively deem the disclosure of information therein to be detrimental to the national security.

6. The Department of Defense shall, by March 15 of each year, report to the Congress all actions taken within that department under the authority of the act during the preceding calendar year. With respect to actions which involve actual or potential cost to the United States in excess of $50,000, the report shall (except as the disclosure of such information may be deemed to be detrimental to the national security) —

(a) name the contractor;

(b) state the actual cost or estimated potential cost involved;

(c) describe the property or services involved; and (d) state further the circumstances justifying the action taken.

7. There shall be no discrimination in any act performed hereunder against any person on the ground of race, religion, color, or national origin, and all contracts entered into, amended, or modified hereunder shall contain such nondiscrimination provision as otherwise may be required by statute or Executive order.

8. No claim against the United States arising under any purchase or contract made under the authority of the act and this order shall be assigned except in accordance with the Assignment of Claims Act of 1940 (54 Stat. 1029), as amended [section 203 of Title 31 and section 15 of Title 41].

9. Advance payments shall be made hereunder only upon obtaining adequate security.

10. Every contract entered into, amended, or modified pursuant to this order shall contain a warranty by the contractor in substantially the following terms:

"The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, except bona-fide employees or bona-fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty the Government shall have the right to annul this contract without liability or, in its discretion, to deduct from the contract price or consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee."

11. All contracts entered into, amended, or modified pursuant to authority of this order shall include a clause to the effect that the Comptroller General of the United States or any of his duly authorized representatives shall,

until the expiration of three years after final payment, have access to and the right to examine any directly pertinent books, documents, papers, and records of the contractor or any of his subcontractors engaged in the performance of, and involving transactions related to, such contracts or subcontracts.

12. Nothing herein contained shall be construed to constitute authorization hereunder for

(a) the use of the cost-plus-a-percentage-of-cost system of contracting;

(b) any contract in violation of existing law relating to limitation of profits or fees;

(c) the negotiation of purchases of or contracts for property or services required by law to be procured by formal advertising and competitive bidding;

(d) the waiver of any bid, payment, performance, or other bond required by law;

(e) the amendment of a contract negotiated under section 2304 (a) (15) of Title 10 of the United States Code to increase the contract price to an amount higher than the lowest rejected bid of any responsible bidder; or

(f) the formalization of an informal commitment, unless the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, or the Secretary of the Air Force, or the duly authorized representative of any such Secretary, finds that at the time the commitment was made it was impracticable to use normal procurement procedures.

13. The provisions of the Walsh-Healey Act (49 Stat. 2036), as amended [sections 35-45 of Title 41], the DavisBacon Act (49 Stat. 1011), as amended [sections 276a to 276a-5 of Title 40], the Copeland Act (48 Stat. 948), as amended, and the Eight-Hour Law (37 Stat. 137), as amended [sections 321 and 322 of Title 40], if otherwise applicable, shall apply to contracts made and performed under the authority of this order.

14. Nothing herein contained shall prejudice anything heretofore done under Executive Order No. 9001 of December 27, 1941, or Executive Order No. 10210 of February 2, 1951 [set out as notes under section 611 of this Appendix to this title], or any amendments or extensions thereof, or the continuance in force of an action heretofore taken under those orders or any amendments or extensions thereof.

15. Nothing herein contained shall prejudice any other authority which the Department of Defense may have to enter into, amend, or modify contracts, and to make advance payments.

PART II-EXTENSION OF PROVISIONS OF PARAGRAPHS 1-14 21. Subject to the limitations and regulations contained in paragraphs 1 to 14, inclusive, hereof, and under any regulations prescribed by him in pursuance of the provisions of paragraph 22 hereof, the head of each of the following-named agencies is authorized to perform or exercise as to his agency, independently of any Secretary referred to in the said paragraphs 1 to 14, all the functions and authority vested by those paragraphs in the Secretaries mentioned therein: Department of the Treasury. Department of the Interior.

Department of Agriculture.

Department of Commerce.
Atomic Energy Commission.

General Services Administration.

National Aeronautics and Space Administration.
Federal Aviation Agency.
Tennessee Valley Authority.
Government Printing Office.

22. The head of each agency named in paragraph 21 hereof is authorized to prescribe regulations governing the carrying out of the functions and authority vested with respect to his agency by the provisions of paragraph 21 hereof. Such regulations shall, to the extent practicable, be uniform with the regulations prescribed or approved by the Secretary of Defense under the provisions of Part I of this order.

23. Nothing contained herein shall prejudice any other authority which any agency named in paragraph 21 hereof may have to enter into, amend, or modify contracts and to make advance payments.

24. Nothing contained in this Part shall constitute authorization thereunder for the amendment of a contract

Nothing in this chapter shall be construed to constitute authorization hereunder for

(a) the use of the cost-plus-a-percentage-ofcost system of contracting;

(b) any contract in violation of existing law relating to limitation of profits;

(c) the negotiation of purchases of or contracts for property or services required by law to be procured by formal advertising and competitive bidding;

(d) the waiver of any bid, payment, performance, or other bond required by law;

(e) the amendment of a contract negotiated under section 2304 (a) (15) of Title 10 or under section 252(c) (13) of Title 41, to increase the contract price to an amount higher than the lowest rejected bid of any responsible bidder; or

(f) the formalization of an informal commitment, unless it is found that at the time the commitment was made it was impracticable to use normal procurement procedures.

(Pub. L. 85-804, § 2, Aug. 28, 1958, 72 Stat. 972.)

REFERENCES IN TEXT

Section 252 (c) (13) of Title 41, referred to in subd. (e), was renumbered section 252(c) (14) of Title 41 by Pub. L. 85-800, § 2(b), Aug. 28, 1958, 72 Stat. 966.

§ 1433. Public record; examination of records by Comptroller General.

(a) All actions under the authority of this chapter shall be made a matter of public record under regulations prescribed by the President and when deemed by him not to be detrimental to the national security.

(b) All contracts entered into, amended, or modified pursuant to authority contained in this chapter

shall include a clause to the effect that the Comptroller General of the United States or any of his duly authorized representatives shall, until the expiration of three years after final payment, have access to and the right to examine any directly pertinent books, documents, papers, and records of the contractor or any of his subcontractors engaged in the performance of and involving transactions related to such contracts or subcontracts. (Pub. L. 85-804, § 3, Aug. 28, 1958, 72 Stat. 972.)

§ 1434. Reports to Congress; publication.

(a) Every department and agency acting under authority of this chapter shall, by March 15 of each year, report to Congress all such actions taken by that department or agency during the preceding calendar year. With respect to actions which involve actual or potential cost to the United States in excess of $50,000, the report shall— (1) name the contractor;

(2) state the actual cost or estimated potential cost involved;

(3) describe the property or services involved; and

(4) state further the circumstances justifying the action taken.

With respect to (1), (2), (3), and (4), above, and under regulations prescribed by the President, there may be omitted any information the disclosure of which would be detrimental to the national security.

(b) The Clerk of the House and the Secretary of the Senate shall cause to be published in the Congressional Record all reports submitted pursuant to this section. (Pub. L. 85-804, § 4, Aug. 28, 1958, 72 Stat. 972.)

§ 1435. Effective period.

This chapter shall be effective only during a national emergency declared by Congress or the President and for six months after the termination thereof or until such earlier time as Congress, by concurrent resolution, may designate. (Pub. L. 85804, § 5, Aug. 28, 1958, 72 Stat. 973.)

Notes prec. sec..

Act

Proclamations, Executive Orders, Joint Resolutions and Treaties Respecting War, Neutrality and Peace....

Fleet Admiral of The Navy and General of The Army

1691

101

201

321

Service Extension Act of 1941....

Army Reserve and Retired Personnel Service Law of 1940....

Universal Military Training and Service Act..... Soldiers' and Sailors' Civil Relief Act of 1940.... First War Powers Act.....

Second War Powers Act, 1942.

Exportation Restrictions on Certain Articles..... Requisition of Military Equipment, Materials and Supplies...

701

711

Territorial Use of Army and Extension of Service Period........

731

751

806

831

Free Entry of Gifts From Members of Armed Forces

I. PROCLAMATIONS OF STATE OF WAR

Proc. No. 2374, Nov. 4, 1939, 12:04 p. m., 4 F. R. 4493, 54 Stat. 2671, proclaimed a state of war between Germany and France; Poland: and the United Kingdom, India, Australia, Canada, New Zealand and the Union of South Africa.

Proc. No. 2398, Apr. 25, 1940, 5 F. R. 1569, 54 Stat. 2698, proclaimed a state of war between Germany and Norway. Proc. No. 2404, May 11, 1940, 5 F. R. 1689, 54 Stat. 2703, proclaimed a state of war between Germany and Belgium, Luxemburg, and the Netherlands.

Proc. No. 2407, June 10, 1940, 10:20 p. m., E. S. T., 5 F. R. 2191, 54 Stat. 2706, proclaimed a state of war between Italy and France and United Kingdom.

Proc. No. 2443, Nov. 15, 1940, 5 F. R. 4523, 54 Stat. 2763, proclaimed a state of war between Italy and Greece. Proc. No. 2473, Apr. 10, 1941, 6 F. R. 1905, 55 Stat. 1627, proclaimed a state of war between Germany-Italy and Yugoslavia.

Proc. No. 2477, Apr. 15, 1941, 6 F. R. 1995, 55 Stat. 1631, proclaimed a state of war between Hungary and Yugoslavia.

Proc. No. 2479. Apr. 24, 1941, 6 F. R. 2133, 55 Stat. 1636, proclaimed a state of war between Bulgaria and Yugoslavia and Greece.

II. PROCLAMATIONS OF UNITED STATES
NEUTRALITY

Proc. No. 2348, Sept. 5, 1939, 4 F. R. 3809, 54 Stat. 2629, proclaimed neutrality of United States in war between Germany and France; Poland; United Kingdom, India, Australia, and New Zealand.

Proc. No. 2353, Sept. 8, 1939, 4 F. R. 3851, 54 Stat. 2643, proclaimed neutrality of United States in war between Germany and Union of South Africa.

Proc. No. 2359, Sept. 10, 1939, 4 F. R. 3857, 54 Stat. 2652, proclaimed neutrality of United States in war between Germany and Canada.

Proc. No. 2399. Apr. 25, 1940, 5 F. R. 1569, 54 Stat. 2699, proclaimed neutrality of United States in war between Germany and Norway.

Proc. No. 2405, May 11, 1940, 5 F. R. 1689, 54 Stat. 2704, proclaimed neutrality of United States in war between Germany and Belgium, Luxemburg, and the Netherlands.

Proc. No. 2408, June 10, 1940, 10:20 p. m. E. S. T., 5 F. R. 2191, 54 Stat. 2707, proclaimed neutrality of United States in war between Italy and France and United Kingdom.

Proc. No. 2444, Nov. 15, 1940, 5 F. R. 4523, 54 Stat. 2764, proclaimed neutrality of United States in war between Italy and Greece.

III. MISCELLANEOUS PROCLAMATIONS AND

EXECUTIVE ORDERS

Ex. Ord. No. 8233, Sept. 5. 1939, 4 F. R. 3822, referred to regulations governing enforcement of neutrality of the United States.

Ex. ORD. No. 8234. REGULATIONS GOVERNING PASSAGE AND CONTROL OF VESSELS THROUGH PANAMA CANAL IN ANY WAR IN WHICH THE UNITED STATES IS NEUTRAL

Ex. Ord. No. 8234. Sept. 5, 1939. 4 F. R. 3823, as amended by Ex. Ord. No. 8382, Mar. 25, 1940, 5 F.R. 1185, provided: Whereas the treaties of the United States, in any war in which the United States is a neutral, impose on the United States certain obligations to both neutral and belligerent nations;

And whereas the treaties of the United States, in any war in which the United States is a neutral, require that the United States exert all the vigilance within their power to carry out their obligations as a neutral;

And whereas treaties of the United States require that the Panama Canal shall be free and open, on terms of entire equality, to the vessels of commerce and of war of all nations observing the rules laid down in Article 3 of the so-called Hay-Pauncefote treaty concluded between the United States and Great Britain, November 18, 1901; Now, therefore, by virtue of the authority vested in me by section 5 of the Panama Canal Act, approved August 24, 1912 (ch. 390, sec. 5, 37 Stat. 562), as amended by the

act of July 5, 1932 (ch. 425, 47 Stat. 578), I hereby prescribe the following regulations governing the passage and control of vessels through the Panama Canal or any part thereof, including the locks and approaches thereto, in any war in which the United States is a neutral;

1. Whenever considered necessary, in the opinion of the Governor of the Panama Canal, to prevent damage or injury to vessels or to prevent damage or injury to the Canal or its appurtenances, or to secure the observance of the rules, regulations, rights, or obligations of the United States, the Canal authorities may at any time, as a condition precedent to transit of the Canal, inspect any vessel, belligerent or neutral, other than a public vessel, including its crew and cargo, and, for and during the passage through the Canal, place armed guards thereon, and take full possession and control of such vessel and remove therefrom the officers and crew thereof and all other persons not specially authorized by the Canal authorities to go or remain on board thereof during such passage.

2. A public vessel of a belligerent or neutral nation shall be permitted to pass through the Canal only after her commanding officer has given written assurance to the authorities of the Panama Canal that the rules, regulations, and treaties of the United States will be faithfully observed.

3. Possession of cameras on board vessels; photographing from vessels. While on board any vessel in transit through the Panama Canal, no person shall (a) have or remain in possession of any camera, or (b) make any photograph, sketch, picture, drawing, map, or graphical representation of any of the locks of the Panama Canal, or of any portion of any such lock, or of any area within or adjacent to any such lock, or of any object or structure within or upon any such area, without first obtaining the permission of the Governor of The Panama Canal, and promptly submitting the product obtained to the Governor for such action as he may deem necessary. The master of every vessel that transits the Panama Canal (a) shall prior to the beginning of each transit cause all cameras on board such vessel, or which are brought on board by embarking passengers, or otherwise, to be collected and delivered to him, and shall retain the said cameras in his possession, in a secure and inaccessible place, until the disembarkation of the original possessors thereof or until the transit through the Canal is completed, and (b) shall during such transit take such further action, in cooperation with the Canal authorities, as may be necessary to prevent the making, by any person on board such vessel in the waters of the Canal Zone, of any photograph, sketch, picture, drawing, map, or graphical representation which is forbidden by this paragraph; but these provisions shall not apply with respect to any person who has obtained permission as provided in this paragraph. Any person who shall violate any provision of this paragraph shall be punishable as provided in section 9 of title 2 of the Canal Zone Code.

The foregoing regulations are in addition to the "Rules and Regulations for the Operation and Navigation of the Panama Canal and Approaches Thereto, including all Waters under its Jurisdiction" prescribed by Executive Order No. 4314 of September 25, 1925, as amended, and the provisions of proclamations and executive orders pertaining to the Canal Zone issued in conformity with the laws and treaties of the United States.

Proc. No. 2350, Sept. 5, 1939, 4 F. R. 3821, 54 Stat. 2368, referred to regulations concerning neutrality in the Canal Zone.

PROC. NO. 2914. NATIONAL EMERGENCY, 1950 Proc. No. 2914, Dec. 16, 1950, 15 F.R. 9029, 64 Stat. A454 provided:

Whereas recent events in Korea and elsewhere constitute a grave threat to the peace of the world and imperil the efforts of this country and those of the United Nations to prevent aggression and armed conflict; and

Whereas world conquest by communist imperialism is the goal of the forces of aggression that have been loosed upon the world; and

Whereas, if the goal of communist imperialism were to be achieved, the people of this country would no longer enjoy the full and rich life they have with God's help built for themselves and their children; they would no longer enjoy the blessings of the freedom of worshipping 36-500 0-65-vol. 11--10

as they severally choose, the freedom of reading and listening to what they choose, the right of free speech including the right to criticize their Government, the right to choose those who conduct their Government, the right to engage freely in collective bargaining, the right to engage freely in their own business enterprises, and the many other freedoms and rights which are a part of our way of life; and

Whereas the increasing menace of the forces of communist aggression requires that the national defense of the United States be strengthened as speedily as possible: Now, therefore, I, Harry S. Truman, President of the United States of America, do proclaim the existence of a national emergency, which requires that the military, naval, air, and civilian defenses of this country be strengthened as speedily as possible to the end that we may be able to repel any and all threats against our national security and to fulfill our responsibilities in the efforts being made through the United Nations and otherwise to bring about lasting peace.

I summon all citizens to make a united effort for the security and well-being of our beloved country and to place its needs foremost in thought and action that the full moral and material strength of the Nation may be readied for the dangers which threaten us.

I summon our farmers, our workers in industry, and our businessmen to make a mighty production effort to meet the defense requirements of the Nation and to this end to eliminate all waste and inefficiency and to subordinate all lesser interests to the common good.

I summon every person and every community to make, with a spirit of neighborliness, whatever sacrifices are necessary for the welfare of the Nation.

I summon all State and local leaders and officials to cooperate fully with the military and civilian defense agencies of the United States in the national defense program.

I summon all citizens to be loyal to the principles upon which our Nation is founded, to keep faith with our friends and allies, and to be firm in our devotion to the peaceful purposes for which the United Nations was founded.

I am confident that we will meet the dangers that confront us with courage and determination, strong in the faith that we can thereby "secure the Blessings of Liberty to ourselves and our Posterity."

NATIONAL EMERGENCY OF 1939

Proc. No. 2352, Sept. 8, 1939, 4 F. R. 3851, 54 Stat. 2643, proclaimed national emergency in connection with enforcement of neutrality which was terminated by Proc. No. 2974, set out as a note preceding section 1 of this Appendix.

NATIONAL EMERGENCY OF 1941

Proc. No. 2487, May 27, 1941, 6 F. R. 2617. 55 Stat. 1647. proclaimed an unlimited national emergency which was terminated by Proc. No. 2974, set out as a note preceding section 1 of this Appendix.

Ex. ORD. No. 9723. TERMINATION OF PRESIDENT'S WAR RELIEF CONTROL BOARD

Ex. Ord. No. 9723, May 15, 1946, 11 F. R. 5345, provided: Executive Order No. 9205 of July 25, 1942, is revoked, and the President's War Relief Control Board established by that order is hereby terminated. The Secretary of State is authorized and directed to liquidate all of the activities and obligations and wind up all of the affairs of the Board as rapidly as practicable, and to utilize therefore such of the personnel property, records, and unexpended appropriations of the Board as may be necessary. PROC. NO. 2685. REMOVAL OF ALIEN ENEMIES

Proc. No. 2685, Apr. 11, 1946, 11 F. R. 4079, 60 Stat. Pt. 2, p. 1342, provided:

1. All alien enemies within the continental limits of the United States brought here from other American republics after December 7, 1941, who are within the territory of the United States without admission under the immigration laws, shall, if their continued residence in the Western Hemisphere is deemed by the Secretary of State to be prejudicial to the future security or welfare