action may be taken against any such person, denying him the privileges generally accorded under this part. This part shall take effect on December 8, 1950. [SEAL] PHILIP B. FLEMING, Under Secretary for Transportation. [F. R. Doc. 50-11490; Filed, Dec. 8, 1950; 12:20 p. m.] [Transportation Order T-1] PART 1101-SHIPPING RESTRICTIONS; SUB-GROUP A, HONG KONG AND MACAO EDITORIAL NOTE: Part 1101 appearing at 15 F. R. 8777 has been redesignated Part 1301 of this chapter and §§ 1101.1 to 1101.6 have been redesignated §§ 1301.1 to 1301.6. The subject headnote of this part has been changed to read "Shipping Restrictions; Sub-Group A, Hong Kong and Macao." Transportation Order T-1 U. S. DEPARTMENT OF COMMERCE UNDER SECRETARY FOR TRANSPORTATION TITLE 32A-NATIONAL DEFENSE, APPENDIX Chapter IX-Under Secretary for Transportation, Department of Commerce [Transportation Order T-1,1 Int. 1] PART 1301-SHIPPING RESTRICTIONS Sec. 1301.100 Shipments from the United States. 1301.101 1301.102 Restricted commodities. Addition of commodities to the Positive List. 1301.103 Calls at restricted ports en route to an unrestricted port. 1301.104 Forwarding commodities previously shipped. 1301.105 Relation to §§ 1302.1 to 1302.7 (Transportation Order T-2). AUTHORITY: §§ 1301.100 to 1301.105 issued under sec. 704, Pub. Law 774, 81st Cong. Interpret or apply secs. 101, 705, Pub. Law 774, 81st Cong.; sec. 101, E. O. 10161, Sept. 9, 1950, 15 F. R. 6105. § 1301.100 Shipments from the United States. Sections 1301.1 to 1301.6 (Transportation Order T-1) apply to shipments from the United States, as well as to shipments from foreign ports, on American flag ships and aircraft. § 1301.101 Restricted commodities. The restrictions of §§ 1301.1 to 1301.6 (Order T-1) apply to the transportation or discharge of (a) commodities on the Positive List (15 CFR Part 399) (as amended from time to time) of the Comprehensive Export Schedule of the Office of International Trade, Department of Commerce, (b) articles on the list of arms, ammunition and implements of war coming within the meaning of Proclamation No. 2776 of April 15, 1948, and (c) commodities, including fissionable materials, controlled for export under the Atomic Energy Act of 1946. The restrictions imposed by §§ 1301.1 to 1301.6 (Order T-1) do not apply to other commodities, not within these restricted classes at the time of transportation or discharge, even though authorization for the export of the commodity from the United States to the particular destination is required under regulations of the Office of International Trade or under other Federal law or regulation. In this respect, §§ 1301.1 to 1301.6 (Order T-1) are different from §§ 1302.1 to 1302.7 (Order T-2) which apply to all commodities destined to Communist China. Sections 1301.1 to 1301.6 (Order T-1) do not relax or modify any of the requirements of any other regulation or law. § 1301.102 Addition of commodities to the Positive List. Sections 1301.1 to 1301.6 (Order T-1) apply to the transportation or discharge of commodities which are restricted at the time of transportation or discharge. Accordingly, if a commodity is added to the Positive List while the commodity is being transported on an American flag ship or aircraft, the restrictions of §§ 1301.1 to 1301.6 (Order 115 F. R. 8777, 9063. T-1) immediately apply and the commodity may not be transported to or discharged at any of the restricted ports or discharged in transit to one of the restricted ports, unless authorization under §§ 1301.1 to 1301.6 (Order T-1) is obtained. § 1301.103 Calls at restricted ports with restricted cargo. Sections 1301.1 to 3101.6 (Order T-1) does not prohibit an American flag ship or aircraft from going to or calling at one of the restricted ports, even though it has on board a commodity which could not be discharged at that port. (Note, however, that §§ 1302.1 to 1302.7 (Order T-2) prohibit American flag ships and aircraft from calling at any port or other place in Communist China.) For example, an American flag ship may call at one of the restricted ports (except one in Communist China), even though it has on board the following classes of commodities-(a) A Positive List commodity manifested to a destination outside the restricted area, with an export license and an export declaration showing the unrestricted destination at the ultimate destination, (b) A Positive List commodity destined for the restricted port of call which cannot be discharged there because there is no export license or authorization from the Under Secretary for Transportation permitting discharge at the restricted port of call, (c) A commodity of any kind destined for Communist China (the transportation and discharge of which is covered by §§ 1302.1 to 1302.7 (Order T-2)). None of these commodities may be discharged at the restricted port of call. Discharge of any of these commodities at the port covered by the restrictions of §§ 1301.1 to 1301.6 (Order T-1) is prohibited and subject to penalty, regardless of the circumstances under which the discharge of the cargo at the restricted port occurs, unless appropriate authorization is obtained. § 1301.104 Forwarding commodities previously shipped. Sections 1301.1 to 1301.6 (Order T-1) apply to transportation on or discharge from ships documented under the laws of the United States and aircraft registered under the laws of the United States. These restrictions apply either in the case of a discharge at one of the restricted ports or to discharge at any other port in transit to a restricted destination. The restrictions of §§ 1301.1 to 1301.6 (Order T-1) do not apply to transportation by foreign carriers, as long as there is no prohibited transportation or discharge by or from a United States flag ship or aircraft after the issuance of §§ 1301.1 to 1301.6 (Order T-1). Accordingly, if an American flag ship or aircraft, before the issuance of §§ 1301.1 to 1301.6 (Order T-1), had transported restricted commodities manifested to restricted destinations, and had completed the transportation to a foreign intermediate point and had completed the discharge from the American flag ship or aircraft before the issuance of §§ 1301.1 to 1301.6 (Order T-1), no violation of that order would have occurred, but §§ 3101.1 to 1301.6 (Order T-1) would prohibit further shipment on an American flag ship or aircraft unless authorization under §§ 1301.1 to 1301.6 (Order T-1) is obtained. § 1301.105 Relation_to_§§ 1302.1 to 1302.7 (Transportation Order T-2). Sections 1301.1 to 1301.6 (Transportation Order T-1) apply to the transportation of commodities to, or in transit to, destinations in Sub-Group A, Hong Kong or Macao. It applies, however, only to commodities on the Positive List of the Office of International Trade, arms and ammunition, and commodities controlled under the Atomic Energy Act (see § 1301.101). Sections 1302.1 to 1302.7 (Transportation Order T-2) apply to the transportation of commodities of any kind which are destined to Communist China (§§ 1302.1 to 1302.7 (Order T-2) also prohibit American ships and aircraft from calling at any port or place in Communist China). Since Communist China is in Sub-Group A, the restrictions of both orders apply to the transportation of commodities to Communist China or to any other point in transit to Communist China. [SEAL] PHILIP B. FLEMING, DECEMBER 19, 1950. [F. R. Doc. 50-12108; Filed, Dec. 19, 1950; 1:00 p. m.] Transportation Order T-2 U. S. DEPARTMENT OF COMMERCE UNDER SECRETARY FOR TRANSPORTATION TITLE 32A-NATIONAL DEFENSE, APPENDIX Chapter IX-Under Secretary for Transportation, Department of Commerce [Transportation Order T-2] PART 1302- SHIPPING RESTRICTIONS; COMMUNIST CHINA This order is found necessary and appropriate to promote the national defense and is issued pursuant to the authority granted by section 101 of the Defense Production Act of 1950. Consultation with industry in advance of the issuance of this order has been rendered impracticable by the need for immediate issuance. Sec. 1302.1 1302.2 1302.3 Prohibition of movement of American carriers to Communist China. AUTHORITY: §§ 1302.1 to 1302.7 issued under sec. 704, Pub. Law 774, 81st Cong. Interpret or apply secs. 101, 705, Pub. Law 774, 81st Cong., sec. 101, E. O. 10161, Sept. 9, 1950, 15 F. R. 6105. § 1302.1 Prohibition of movement of American carriers to Communist China. No person shall sail, fly, navigate, or otherwise take any ship documented under the laws of the United States or any aircraft registered under the laws of the United States to any Chinese Communist port or to any other place under the control of the Chinese Communists. § 1302.2 Prohibition on transportation of goods destined for Communist China. No person shall transport, in any ship documented under the laws of the United States or in any aircraft registered under the laws of the United States, to Communist Chinese ports or to any other place under the control of the Chinese Communists, any material, commodity, or cargo of any kind. No person shall take on board any ship documented under the laws of the United States or any aircraft registered under the laws of the United States any material, commodity, or cargo of any kind if he knows or has reason to believe that the material, commodity, or cargo is destined, directly or indirectly, for Communist China. No person shall discharge from any ship documented under the laws of the United States or from any aircraft registered under the laws of the United States, at any place other than the port where the cargo was loaded, or within territory under the jurisdiction of the United States, or in Japan, any material, commodity, or cargo of any kind which he knows or has reason to believe is destined for Communist China. § 1302.3 Persons affected. The prohibitions of this part apply to the owner of the ship or aircraft, to the master of the ship or aircraft, and to any other officer, employee, or agent of the owner of the ship or to any other person who participates in the prohibited activities. § 1302.4 Reports. The owner of any ship documented under the laws of the United States or any aircraft registered under the laws of the United States which is making a voyage to Communist China at the time this part is issued shall report this fact promptly to the Under Secretary for Transportation, Department of Commerce, Washington 25, D. C., and advise what steps he has taken to comply with the requirements of § 1302.1. The owner of any ship documented under the laws of the United States or any aircraft registered under the laws of the United States which, at the time this part is issued, is carrying any material, commodity, or cargo which the owner, the master of the ship or aircraft, or any other officer, employee or agent of the owner, knew or had reason to believe was destined for Communist China shall report this fact promptly to the Under Secretary for Transportation, Department of Commerce, Washington 25, D. C., and advise what disposition has been or will be made of such cargo. Persons subject to this part shall submit such reports to the Under Secretary for Transportation, Department of Commerce, as he shall require, subject to the terms of the Federal Reports Act. § 1302.5 Records. Each person participating in any transaction covered by this part shall retain in his possession, for at least two years, records of voyages and shipments in sufficient detail to permit an audit that will determine for each transaction that the provisions of this part have been met. This provision does not require any particular accounting method and does not require alteration of the system customarily maintained, provided such records supply an adequate basis for audit. Records may be retained in the form of microfilm or other photographic copies instead of the originals. §1302.6 Defense against claims for damages. No person shall be held liable for damages or penalties for any default under any contract or order which shall result directly or indirectly from compliance with this part or any provision, thereof, notwithstanding that this part or such provision shall thereafter be declared by judicial or other competent authority to be invalid. § 1302.7 Violations. Any person who wilfully violates any provisions of this part or wilfully conceals a material fact or furnishes false information in the course of operation under this part is guilty of a crime and upon conviction may be punished by fine or imprisonment or both. In addition, administrative action may be taken against any such person, denying him the privileges generally accorded under this part. Amendments. This part may be amended by the Under Secretary for Transportation, Department of Commerce, pursuant to delegation previously made to him (15 F. R. 8739). This part shall take effect immediately, subject to section 7 of the Federal Register Act (49 Stat. 502, 44 U. S. C. sec. 307). NOTE: The reporting requirements of this part have been approved by the Bureau of the Budget under the Federal Reports Act. [SEAL] DECEMBER 16, 1950. CHARLES SAWYER, [F. R. Doc. 50-12029; Filed, Dec. 18, 1950; 11:01 a. m.] Senator CAPEHART. Mr. Secretary, you recently required licenses to ship into Mexico, did you not? Secretary SAWYER. No. We have always required licenses__to ship commodities on the positive list anywhere except Canada. The only exception is Canada. Senator CAPEHART. You are requiring at the moment a license to ship so-called battery shells into Mexico-battery boxes? Secretary SAWYER. It doesn't apply particularly to Mexico. There is no distinction made as far as Mexico is concerned. Senator CAPEHART. It requires a license to ship to any country? Secretary SAWYER. That is right. I assume so from what you say. There are hundreds of items on the list. I am not familiar with all of them myself. I am sure you are correct if you say there is a license required. You see, aside from the element of security which I have been discussing with the committee, there is the element of short supply, with which we are now dealing and with which we have dealt right along. In other words, if we do not have enough of a thing in this country to meet our own civilian demands or domestic demands, then we put a restriction on its export, and that has been going on right along. We have the problem continued now. I have it in connection with a number of items the British came over here to talk about as to how much we will let go out, and it is a very difficult thing to decide. But we got a list of what goes to every country, as I say, aside from Canada. We have no controls over Canada because we have reached a very fine working arrangement with them. They practically agree to everything we suggest on the matter of control. V HOARDING AND STRATEGIC MATERIALS Senator CAPEHART. Just what parts of this 1950 Defense Production Act are you administering? Secretary SAWYER. I have been pretty busy lately and I have not read it recently, so it is a little difficult for me to answer your question, except to say this: That we control the allocation and distribution of materials, that is, General Harrison does, except for certain items which were eliminated or were left to the Interior and to Agriculture— the solid fuels, petroleum and the power. I think that is all. We have later issued a delegation of authority to Interior with reference to minerals, and foods were given to Agriculture; but, other than that, we control materials set forth in the order. Senator CAPEHART. It seems to me, Mr. Chairman, that it might be helpful to this committee if the Secretary could-he can not do it offhand, I know-give the committee for its records, so that we would know, exactly that part of this bill that he has authority over. Then I think all other departments of the Government ought to tell us exactly what their interests are. The CHAIRMAN. I might then say this: I was hopeful Mr. Wilson might be able by Friday to get the other heads of agencies that are under him to appear with him-Mr. Di Salle and Mr. Valentine and others. That is one reason I am glad Congressman Brown agreed to our meeting on Friday, so at least we will know before we go home just exactly what Mr. Wilson intends to do. Will you make a memorandum of what Senator Capehart just said? Senator CAPEHART. So at the moment about all you have is title I, priorities and allocations? Secretary SAWYER. I have a copy of Executive Order 10161, and it gives exactly what authority. The functions conferred under title I— which is the one you just mentioned— are hereby delegated as follows: To the Secretary of the Interior with respect to petroleum, gas, solid fuels and electric power; To the Secretary of Agriculture with respect to food and with respect to domestic distribution of farm equipment and fertilizer; To that Commissioner of the Interstate Commerce Commission who is responsible for the supervision of the Bureau of Service of the Commission with respect to domestic transportation, storage and port facilities or the use thereof, but excluding air transport, coastwise, intercoastal and overseas shipping, which is within my Department. To the Secretary of Commerce with respect to all materials and facilities except as above provided. Now that answers your question. Mr. FLEISCHMANN. And title II. Secretary SAWYER. Under part II, requisitioning: Except as provided in section 201 (b) of this Executive order, the functions conferred upon the President by title II of the Defense Production Act of 1950 are hereby delegated to the officers to whom functions are delegated by section 101 of this Executive order, respectively, according to the designations of materials and facilities And so forth. I think Congress provided that only one official to qualify what were exemptions from the Antitrust Act. Mr. HALE. Yes. |