(b) It shall be the function of the committee to make a continuous study of the programs of United States economic assistance to foreign countries, and to review the progress achieved in the execution and administration of such programs. Upon request, the committee shall aid the several standing committees of the Congress having legislative jurisdiction over any part of the programs of United States economic assistance to foreign countries; and it shall make a report to the Senate and the House of Representatives, from time to time, concerning the results of its studies, together with such recommendations as it may deem desirable. The Administrator, at the request of the committee, shall consult with the committee from time to time with respect to his activities under this Act.

(c) The committee, or any duly authorized subcommittee thereof, is authorized to hold such hearings, to sit and act at such times and places, to require by subpena or otherwise the attendance of such witnesses and the production of such books, papers, and documents, to administer such oaths, to take such testimony, to procure such printing and binding, and to make such expenditures as it deems advisable. The cost of stenographic services to report such hearings shall not be in excess of 25 cents per hundred words. The provisions of sections 102 to 104, inclusive, of the Revised Statutes shall apply in case of any failure of any witness to comply with any subpena or to testify when summoned under authority of this subsection.

(d) The committee is authorized to appoint and, without regard to the Classification Act of 1923, as amended, fix the compensation of such experts, consultants, technicians, and organizations thereof, and clerical and stenographic assistants as it deems necessary and advisable. (e) There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this section, to be disbursed by the Secretary of the Senate on vouchers signed by the chairman.

SEPARABILITY CLAUSE

SEC. 125. If any provision of this Act or the application of such provision to any circumstances or persons shall be held invalid, the validity of the remainder of the Act and the applicability of such provision to other circumstances or persons shall not be affected thereby.1

1 Under the provisions of the Economic Cooperation Act, the following bilateral agreements have been signed:

Switzerland has not received financial assistance and has not concluded a bilateral agreement, even though a member of the OEEC.

305. ACT TO AMEND THE ECONOMIC COOPERATION ACT OF 1948 1

AN ACT To amend the Economic Cooperation Act of 1948

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the fourth and fifth sentences of section 102 (a) of the Economic Cooperation Act of 1948 are hereby amended to read as follows: "Mindful of the advantages which the United States has enjoyed through the existence of a large domestic market with no internal trade barriers, and believing that similar advantages can accrue to the countries of Europe, it is declared to be the policy of the people of the United States to encourage these countries through their joint organization to exert sustained common efforts to achieve speedily that economic cooperation in Europe which is essential for lasting peace and prosperity. It is further declared to be the policy of the people of the United States to encourage the unification of Europe, and to sustain and strengthen principles of individual liberty, free institutions, and genuine independence in Europe through assistance to those countries of Europe which participate in a joint recovery program based upon self-help and mutual cooperation: Provided, That no assistance to the participating countries herein contemplated shall seriously impair the economic stability of the United States."

SEC. 2. The second sentence of section 104 (e) of such Act is hereby amended by striking out "$10,000 per annum" and inserting in lieu thereof "the highest rate authorized by such Act".

SEC. 3. The first sentence of section 105 (c) of such Act is hereby amended by striking out "section 6 of the Act of July 2, 1940 (54 Stat. 714), as amended," and inserting in lieu thereof "the Export Control Act of 1949".

SEC. 4. Section 108 of such Act is hereby amended by adding at the end thereof the following new sentences: "There shall be a Deputy United States Special Representative in Europe who shall (a) be appointed by the President, by and with the advice and consent of the Senate, (b) be entitled to receive the same compensation and allowances as a chief of mission, class 3, within the meaning of the Act of August 13, 1946 (60 Stat. 999), and (c) have the rank of ambassador extraordinary and plenipotentiary. The Deputy United States Special Representative shall perform such functions as the United States Special Representative shall designate, and shall be Acting United States Special Representative during the absence or disability of the United States Special Representative or in the event of a vacancy in the office of United States Special Representative." SEC. 5. The last sentence of section 109 (a) of such Act is hereby amended by striking out the period and inserting in lieu thereof a semicolon and the following: "and the chief of the special mission shall be entitled to receive the same compensation and allowances as a chief of mission, class 3, or a chief of mission, class 4, within the meaning of the Act of August 13, 1946 (60 Stat. 999), or compensation and allowances in accordance with section 110 (a) of this title, as the Administrator shall determine to be necessary or appropriate."

1 Public Law 47, 81st Congress, ch. 77, 1st session. Funds for this Act were appropriated by Public Law 327, 81st Congress, 1st session, H. R. 4830.

SEC. 6. (a) The last sentence of paragraph (2) of section 111 (a) of such Act is hereby amended to read as follows: "The Administrator shall, in providing for the procurement of commodities under authority of this title, take such steps as may be necessary to assure, as far as is practicable, that at least 50 per centum of the gross tonnage of commodities procured out of funds made available under this title and transported to or from the United States on ocean vessels, computed separately for dry bulk carriers, dry cargo liner and tanker services, is so transported on United States flag vessels to the extent such vessels are available at market rates for United States flag vessels; and, in the administration of this provision, the Administrator shall, insofar as practicable and consistent with the purposes of this title, endeavor to secure a fair and reasonable participation by United States flag vessels in cargoes by geographic area.

(b) Paragraph (3) of section 111 (b) of such Act is hereby amended in the following particulars:

(1) By inserting after "projects" a comma and the following: "including expansion, modernization, or development of existing enterprises" and a comma;

(2) By inserting after "media" the following: "consistent with the national interests of the United States";

(3) By striking out in the first proviso "in the first year after the date of the enactment of this Act does not exceed $15,000,000" and inserting in lieu thereof "made in any fiscal year does not exceed $10,000,000";

(4) By amending subparagraph (i) thereof to read as follows:

"(i) the guaranty to any person shall not exceed the amount of dollars invested in the project by such person with the approval of the Administrator plus actual earnings or profits on said project to the extent provided by such guaranty;";

(5) By inserting after subparagraph (iii) thereof the following new subparagraphs:

(iv) as used in this paragraph, the term 'investment' includes the furnishing of capital goods items and related services, for use in connection with projects approved by the Administrator, pursuant to a contract providing for payment in whole or in part after June 30, 1950; and

"(v) the guaranty to any person shall be limited to assuring the transfer into United States dollars of other currencies, or credits in such currencies received by such person as earnings or profits from the approved investment, as repayment or return thereof, in whole or in part, or as compensation for the sale or disposition of all or any part thereof. When any payment is made to any person pursuant to a guaranty as herein before described, the currency or credits on account of which such payment is made shall become the property of the United States Government, and the United States Government shall be subrogated to any right, title, claim, or cause of action existing in connection therewith."; and (6) By amending the next to last sentence thereof to read as follows: "The total amount of the guaranties made under this paragraph (3) shall not exceed $150,000,000: Provided, That any funds allocated to a guaranty and remaining after all liability of the United States

assumed in connection therewith has been released, discharged, or otherwise terminated, shall be available for allocation to other guaranties, the foregoing limitation notwithstanding."

(c) Paragraph (2) of section 111 (c) of such Act is hereby amended in the following particulars:

(1) By inserting after the second sentence thereof the following: "In addition to the amount of notes above authorized, the Administrator is authorized, for the purpose of carrying out the provisions of paragraph (3) of subsection (b) of this section, to issue notes from time to time for purchase by the Secretary of the Treasury in an amount not exceeding in the aggregate $150,000,000 less any amount allocated prior to April 3, 1949, for such purpose, until all liabilities arising under guaranties made pursuant to this authorization have expired or been discharged.";

(2) By striking out the first two words, "Such notes" in the third sentence thereof and inserting "The notes hereinabove authorized"; and

(3) By inserting after "Washington" in the sixth sentence thereof "for assistance on credit terms".

SEC. 7. (a) Section 112 (c) of such Act is hereby amended by striking out "25 per centum" and inserting in lieu thereof "121⁄2 per centum".

(b) Section 112 (d) of such Act is hereby amended by adding after the words "any agricultural commodity, or product thereof" the following: "or class, type, or specification thereof".

(c) Section 112 (g) of such Act is hereby amended by striking out "section 6 of the Act of July 2, 1940 (54 Stat. 714), including any amendment thereto," and "section 6 of the Act of July 2, 1940, as amended," and inserting in lieu thereof "the Export Control Act of 1949".

(d) Section 112 of such Act is hereby further amended by adding at the end thereof the following new subsections:

"(i) (1) Insofar as practicable and to the maximum extent consistent with the accomplishment of the purposes of this title, the Administrator shall assist American small business to participate equitably in the furnishing of commodities and services financed with funds authorized under this title by making available or causing to be made available to suppliers in the United States, and particularly to small independent enterprises, information, as far in advance as possible, with respect to purchases proposed to be financed with funds authorized under this title, and by making available or causing to be made available to prospective purchasers in the participating countries information as to commodities and services produced by small independent enterprises in the United States, and by otherwise helping to give small business an opportunity to participate in the furnishing of commodities and services financed with funds authorized under this title.

"(2) The Administrator shall appoint a special assistant to advise and assist him in carrying out the foregoing paragraph (1). Each report transmitted to the Congress under section 123 shall include a report of all activities under this subsection.

"(j) The Administrator shall, in providing assistance in the procurement of commodities in the United States, make available United States dollars for marine insurance on such commodities where such

insurance is placed on a competitive basis in accordance with normal trade practices prevailing prior to the outbreak of World War II.

"(k) No funds authorized for the purposes of this title shall be used in the United States for advertising foreign products or for advertiseing foreign travel.

"(1) No funds authorized for the purposes of this title shall be used for the purchase in bulk of any commodities (other than commodities procured by or in the possession of the Commodity Credit Corporation pursuant to price-support programs required by law) at prices higher than the market price prevailing in the United States at the time of the purchase adjusted for differences in the cost of transportation to destination, quality, and terms of payment."

SEC. 8. (a) Section 114 (c) of such Act is hereby amended in the following particulars:

(1) By striking out the period at the end of the first sentence thereof and inserting in lieu thereof a colon and the following: "Provided further, That, in addition to the amount heretofore authorized and appropriated, there are hereby authorized to be appropriated for carrying out the provisions and accomplishing the purposes of this title not to exceed $1,150,000,000 for the period April 3, 1949, through June 30, 1949, and not to exceed $4,280,000,000 for the fiscal year ending June 30, 1950: Provided further, That, in addition to the foregoing, any balance, unobligated as of June 30, 1949, or subsequently released from obligation, of funds appropriated for carrying out and accomplishing the purposes of this title for any period ending on or prior to that date is hereby authorized to be made available for obligation through the fiscal year ending June 30, 1950, and to be transferred to and consolidated with any appropriations for carrying out and accomplishing the purposes of this title for said fiscal year."; and

(2) By amending the last sentence of such section 114 (c) to read as follows: "The authorizations in this title are limited to the period ending June 30, 1950, in order that the Congress may pass on any subsequent authorizations."

(b) Section 114 of such Act is hereby further amended by adding at the end thereof the following new subsection:

"(g) Notwithstanding the provisions of any other law, until such time as an appropriation additional to that made by title I of the Foreign Aid Appropriation Act, 1949 (Public Law 793, Eightieth Congress), shall be made pursuant to subsection (c) of this section the Reconstruction Finance Corporation is authorized and directed to make advances not to exceed in the aggregate $1,000,000,000 to carry out the provisions of this title, in such manner, at such times, and in such amounts as the Administrator shall request, and no interest shall be charged on advances made by the Treasury to the Reconstruction Finance Corporation for this purpose. The Reconstruction Finance Corporation shall be repaid without interest for advances made by it hereunder, from funds made available for the purposes of this title."

SEC. 9. (a) Paragraph (6) of section 115 (b) of such Act is hereby amended by striking out the period following the words "grant basis" and inserting in lieu thereof a colon and the following: "Provided, That the obligation to make such deposits may be waived, in the discretion of the Administrator, with respect to technical information or assistance furnished under section 111 (a) (3) of this title and