Assistance in the "general area" of China (sec. 303) The Senate amendment includes an authorization, not included in the House bill, of $75,000,000 for expenditure to accomplish in the "general area" of China "the policies and purposes declared in this Act." The provision takes cognizance of "the concern of the United States in the present situation in China." This provision is retained in the conference agreement. Four observations are in point concerning this provision. First, note should be taken of language contained therein which says that the $75,000,000 sum shall constitute "an emergency fund for the President", whose certification of expenditures related thereto "shall be deemed a sufficient voucher for the amounts expended". It should be understood that this provision for confidential use of the funds is governing over any inconsistent restriction regarding administration which may be contained elsewhere in the legislation. Second, the term "general area" may require explanation. This phrase is somewhat more restrictive than would be the phrase "the Far East." At the same time it is not intended that the phrase be interpreted as confining use of the funds to China proper. In view of the difficulty of defining in advance all of the contingencies which may develop in the unfolding situation in China, the members of the committee of conference attempted no greater precision than is contained in the term "general area." This term, however, is to be interpreted in relation to the phrase: "the concern of the United States in the present situation in China." The area envisaged is the area which bears immediately upon that situation, and which is borne upon immediately by that situation. It is consonant with the unusual flexibility in the authority given to the President by this provision that China and the other countries in that general area should be only generally designated in order that the scope of assistance might be largely determined through experience as needs arise. Third, it should be noted that the form of assistance is not limited. It may be in any form which will conduce to realizing the "policies and purposes" declared in the legislation. Fourth, in contradistinction to other authorizations in this legislation, the authorization in question is not confined to the fiscal year 1950. Restriction on behalf of the national security of the United States (sec. 401) Both the House bill and the Senate amendment contain provisos to protect the national security of this country from being prejudiced by operations under the military assistance program. The House version would forbid transfer of equipment and material in event of determination by the Secretary of Defense, after consultation with the Joint Chiefs of Staff, that such transfer would be detrimental to United States national security or would involve equipment or material required by United States forces. The Senate version would require in advance of transfer a determination "that such transfer would not be detrimental to the national interest of the United States." The determination, moreover, would be made by the Secretary of Defense and the Joint Chiefs of Staff rather than by the former after consultation with the latter. The language of the conference agreement is in keeping with the House bill in leaving the determination to the Secretary of Defense after consultation with the Joint Chiefs of Staff. It is the view of the committee of conference that this is more clearly consistent with the principles of authority in the Department of Defense than would be the requirement for a collective decisionof the Secretary and the Joint Chiefs of Staff. The language of the conference agreement otherwise reflects the House version. Agreements with eligible nations (sec. 402) The House bill would require agreements to be entered into with eligible nations or groups of eligible nations "in connection with the furnishing of assistance." The Senate amendment would require such agreements "prior to" such furnishing of assistance. In this respect the conference agreement embodies the Senate language. The House bill lists the principles to be covered in the agreements. The Senate amendment does likewise but adds the qualifying phrase "where applicable". The conference agreement is consistent with the House version. The list of principles in the House bill includes a stipulation that relevant assistance be "in furtherance of" the policies and purposes of the act. In the Senate version the phrase "in a manner consistent with" is substituted for the phrase "in furtherance of". The conference agreement is consistent with the House version in this regard. The list of principles in the House bill includes a restriction subjecting to the President's consent the transfer by any recipient country of information furnished in connection with the program. The Senate version omits this. The conference agreement is consistent with the House version in this regard. The list of principles in the House bill includes "the security of any article, service, or information furnished under this Act." The Senate version omits this. The conference agreement is consistent with the House version in this regard. The list of principles in the House bill includes the qualification "consistent with the Charter of the United Nations" in relation to reciprocal and mutual assistance as a principle to be covered in the agreements. The Senate version omits this qualification. The conference agreement is consistent with the House version in this regard. Valuation of assistance (sec. 403 (c)) The House bill and the Senate amendment agree in making replacement cost in general the basis for computing value of equipment and materials from mobilization stocks. The House bill would, however, permit the President, after consultation with the Secretary of Defense and the Joint Chiefs of Staff, to set original cost as the basis for items taken from mobilization stocks above minimum mobilization requirements (that is to say, mobilization stocks above the level required during the first year of mobilization). The Senate amendment would permit a similar exception, subject to a certification by the Secretary of Defense that "it is not necessary fully to replace such equipment or materials in the mobilization reserve". The Senate language also contains a specific provision that the cost of repair, rehabilitation, or modification of excess equipment or materials should be taken into consideration in the valuation thereof. The conference agreement reflects the language of the Senate version. Distribution of excess equipment and materials Section 403 (d) of the Senate amendment contains the following standard: The excess equipment and materials furnished under this Act shall, with due regard to the programs of military assistance operated under this Act, be distributed equitably among the various nations * This language is not retained in the conference agreement. The committee of conference came to the conclusion that it would not be in keeping with the principles of the program to include language which might imply that assistance would be distributed in accordance with some equitable right. The governing principle must be the common strategic strength and not the particular equitable interests of particular nations. Liquidation of operations in event of termination of assistance (sec. 405 (d)) The Senate amendment contains a proviso, not contained in the House bill, making funds available for twelve months for liquidation purposes in event of termination of assistance by presidential or congressional action. The conference agreement includes the language of the Senate version. Employment of additional civilian personnel (sec. 406 (a)) Both the House bill and the Senate amendment would permit the employment by any agency of additional personnel necessary in the administration of the contemplated program without regard to section 14 (a) of the Federal Employees Pay Act of 1946. The House bill requires the President to determine the necessity of such employment of additional personnel. The Senate bill includes no such provision for presidential determination. The conference agreement contains the language of the House version. This language is included with the intention of strengthening the central control of the program as a means of insuring economical administration. Employment of experts and consultants (sec. 406 (c)) With regard to the employment of experts and consultants, as authorized by section 15 of the act of August 2, 1946, the Senate version limits their number to 15 at any one time and specifies that they must be "technical" experts and "engineering" consultants. It omits the language contained in the House bill permitting the employment of expert and consultant organizations. The conference agreement contains the language of the Senate version. Employment of top-level personnel (sec. 406 (e)) In authorizing the employment of one person at a rate of compensation not to exceed $16,000 and of three persons at a rate not to exceed $15.000 in the administration of the envisaged program, the Senate amendment adds a requirement for Presidential appointment and senatorial confirmation of such persons. The conference agreement includes this requirement. H. Repts., 81-1, vol. 6-61 Administrative expenses (sec. 408 (b)) The Senate amendment contains a requirement. not included in the House bill, that whenever possible the expenses of administration of this Act * for in the currency of the nation where the expense is incurred This provision is included in the conference agreement. Use of residual foreign currency funds (sec. 408 (d)) * * * be paid The Senate amendment contains a provision, not specified in the House bill, that foreign currency funds received in connection with the furnishing of assistance under the contemplated program and left over after the payment of local administrative expenses shall be used only for purposes specified by the Congress. This provision is included in the conference agreement Disposition of equipment and materials in event of termination of assistance (sec. 408 (f)) The Senate amendment empowers the President to designate the agency of the United States Government to receive equipment or materials procured for the program but not delivered because of termination of the program by Presidential or congressional action. No equivalent provision is contained in the House bill. This provision is included in the conference agreement. Definitions (sec. 411) To the definitions contained in the House bill the Senate amendment adds definitions of the terms "mobilization reserve" and "excess" as used with respect to equipment and materials involved in the contemplated program. These definitions are retained in the conference agreement. JOHN KEE, THOMAS S. GORDON, Managers on the Part of the House. AUTHORIZING THE COMMITTEE ON WAYS AND MEANS TO HAVE PRINTED ADDITIONAL COPIES OF PARTS 1 AND 2 OF THE SOCIAL SECURITY ACT AMENDMENTS OF 1949 HEARINGS SEPTEMBER 28, 1949.-Ordered to be printed Mr. STANLEY, from the Committee on House Administration, submitted the following REPORT [To accompany H. Con. Res. 126] The Committee on House Administration, to whom was referred the concurrent resolution (H. Con. Res. 126) authorizing the Committee on Ways and Means to have printed for its use 1,000 additional copies each of part 1 and part 2 of the hearings held before the committee during the current session relative to the Social Security Act amendments of 1949, having considered the same, report favorably thereon with amendment and recommend that the concurrent resolution as amended do pass. The estimated total cost for printing the additional copies as provided for herein is $6,804.40. The amendment is as follows: Line 7, after the word "hearings" insert the words "including an index". O |