To authorize the Secretary of Commerce to sell certain vessels to citizens of the Republic of the Philippines; to provide for the rehabilitation of the interisland commerce of the Philippines, and for other purposes.

oitizens.
60 Stat. 50.

50 USC app.
1735 note.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That notwithstanding the Vessels. provisions of section 14 of the Merchant Ship Sales Act of 1946 (Public Sale to Law 321, Seventy-ninth Congress), as amended, or any other provision Philippine of law, the Secretary of Commerce is hereby authorized and directed to sell to citizens of the Republic of the Philippines in accordance with the Merchant Ship Sales Act of 1946, five vessels named herein: Carrick Bend, Masthead Knot, Snug Hitch, Boatswains Hitch and Turks Head, which at present are in the Philippines: Provided, That with respect to each of the said vessels one-half of the charter hire paid to the United States shall be subtracted from the sales price as additional depreciation for the period beginning July 1, 1954, and ending with the date of execution of the contract of sale of the respective vessel: And provided further, That the Secretary of Commerce after consultation with the National Advisory Council in International Monetary and Financial Problems, shall fix the terms of payment on unpaid balances, which terms shall in no event be more favorable than the terms applicable in the case of sales to citizens of the United States.

In determining the order of preference between applicants for the purchase of such vessels, first preference shall be given to the applicants who are charterers of such vessels under the terms of the Philippine Rehabilitation Act of 1946, as amended, at the time of making applica- 60 Stat. 128. tion to purchase vessels under the terms of this Act; second preference 50 USC app. shall be given to applicants who suffered losses of interisland tonnage in the interests of the Allied war effort: Provided, That applications for the purchase of said vessels are received by the Secretary of Commerce within one year after the date of enactment of this Act.

1751 note.

Except with the prior approval of the Secretary of Commerce, any Interisland vessel sold under this joint resolution shall, for a period of ten years commerce. from the date of sale of the vessel, be operated only in the interisland

commerce of the Philippines.

Delivery of the vessels for the purposes of sale shall be made at a port in the Philippines designated by the Secretary of Commerce.

Notwithstanding any other provision of law, the said vessels shall continue to operate in the Philippines under existing charters until such time as the agreements of sale are executed and deliveries of the vessels thereunder are accomplished.

For the purposes of this Act, the term "citizen" includes any individual, corporation, partnership, association, or other form of business entity authorized to do business under the laws of the Republic of the Philippines.

Approved June 30, 1955.

To extend the provisions of title XII of the Merchant Marine Act, 1936, relating to war risk insurance, for an additional five years.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 1214

46 USC 1294.

of title XII of the Merchant Marine Act, 1936, is amended by striking 64 Stat. 777. out “5” and inserting in lieu thereof “10”. Approved August 3, 1955.

To authorize the Secretary of Commerce to sell the steamship Monterey.

Sale.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) the Secretary of Steamship Commerce is hereby authorized, during a period of six months after Monterey. the enactment of this joint resolution, to sell the steamship Monterey and the uninstalled materials heretofore acquired by the United States with said vessel, which are held in storage by the Maritime Administration, Department of Commerce, to a citizen of the United States at competitive bidding, subject to the provisions of this joint resolution, and such terms and conditions not contrary hereto as the Secretary may prescribe. The vessel with such materials shall be sold on an "as is, where is" basis, at an aggregate minimum sales price of $3,081,665.72, depreciated on the basis of a twenty-year life from August 6, 1952, to the date of the award of the contract of sale. Such sale shall be made upon a condition and agreement that the purchaser expend at least $10,000,000 to recondition the vessel satisfactory to the Secretary of Commerce in a domestic shipyard for passenger service, with documentation under the laws of the United States. Such sale shall be on the basis of the payment of not less than 25 per centum of the sale price of the vessel and materials at the time of the execution of such sales contract, with balance payable in approximately equal annual installments over the life expectancy of the vessel after reconditioning by the purchaser which life expectancy shall be determined jointly by the Secretary of the Treasury and the Secretary of Commerce, with interest on the portion of the sales price remaining unpaid at the rate 69 Stat. 542. of 32 per centum per annum; with right of prepayment from time to 69 Stat. 543. time of any or all of the sales price remaining unpaid. The obligation of the purchaser with respect to payment of such unpaid balance, with interest. shall be secured by a first preferred mortgage on the vessel sold, which mortgage may provide that the sole recourse against the purchaser under such mortgage, and any of the notes secured thereby, shall be limited to repossession of the vessel by the United States and the assignment of insurance claims, if the purchaser shall have complied with all provisions of the mortgage other than those relating to the payment of principal and interest when due, and the obligation of the purchaser shall be satisfied and discharged by the surrender of the vessel, and all right, title, and interest therein to the United States. Such vessel upon surrender shall be (1) free and clear of all liens and encumbrances whatsoever, except the lien of the above-mentioned preferred mortgage and any other mortgage held by the Secretary of Commerce pursuant to an assignment under title XI of the Merchant 52 Stat. 969. Marine Act, 1936, as amended, (2) in class, and (3) equipped and in as 46 USC 1271-1279. good order and condition, ordinary wear and tear excepted, as when reconditioned as a passenger vessel by the purchaser except that any deficiencies with respect to freedom from encumbrances, condition, and class, may, to the extent covered by valid policies of insurance, be satisfied by the assignment to the United States of claims of the purchaser under such policies of insurance.

(b) Any contract of sale executed under authority of this joint resolution shall provide that in the event the United States shall, through purchase or requisition, acquire ownership of such vessel, the owner shall be paid therefor the value thereof, but in no event shall such payment exceed the actualy depreciated sales price under such contract (together with the actual depreciated cost of capital improvements thereon), or the fair and reasonable scrap value of such vessel, as determined by the Maritime Administrator, whichever is the greater; that

All 69 Stat. 543.

such determination shall be final; that in computing the depreciated acquisition cost of such vessel, the depreciation shall be computed on the vessel on the schedule adopted or accepted by the Secretary of the Treasury for Federal income tax purposes as applicable to such vessel; that such vessel shall remain documented under the laws of the United States for a period of at least ten years after completion as a passenger vessel or as long as there remains due the United States any principal or interest on account of the sales price, whichever is the longer period; and that the foregoing provisions respecting the requisition or the acquisition of ownership by the United States and documentation shall run with the title to such vessel and be binding on all owners thereof.

Approved August 9, 1955.

To amend section 313 of the Agricultural Adjustment Act of 1938, with respect to tobacco allotments.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 313 of Tobacco. the Agricultural Adjustment Act of 1938, as amended, is amended by 65 Stat. 422. adding at the end thereof the following new subsection:

"(j) The production of tobacco on a farm in 1955 or any subsequent year for which no farm acreage allotment was established shall not make the farm eligible for an allotment as an old farm under subsections (b) and (g) hereof: Provided, however, That by reason of such production the farm need not be considered as ineligible for a new farm allotment under subsections (c) and (g) hereof, but such production shall not be deemed past tobacco experience for any producer on the farm.”

Approved August 11, 1955.

7 USC 1313.

Chapter 64 - 2d Session

To amend section 216 (b) of the Merchant,Marine Act, 1936, as amended, to provide for the maintenance of the Merchant Marine Academy.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 216 Merchant Marine (b) of the Merchant Marine Act, 1936, as amended (U. S. C., title Academy. 46, sec. 1126), is amended to read as follows:

66

53 Stat. 1183.

(b) (1) The Secretary of Commerce shall maintain a Merchant Maintenance. Marine Academy at Kings Point, New York, for the instruction and preparation for service in the merchant marine of selected persons as officers thereof. Competitive examinations shall be held annually among those persons nominated as candidates to the Academy by Senators and Representatives. The number of vacancies allocated to each State shall be proportioned to the representation in Congress from that State. Appointments from each State shall be made by the Secretary of Commerce from among qualified candidates nomínated from that State in the order of merit established by the examinations. In case vacancies remain after the appointments under the preceding sentence have been made, the Secretary of Commerce shall fill them by appointments from qualified candidates from other States. "(2) In connection with such instruction and as a part thereof, Training. the Secretary of Commerce is authorized to provide for training of merchant marine cadets on Government-owned and subsidized vessels and, in cooperation with other governmental and private agencies, on other vessels, and, for instructional purposes only, in shipyards, plants, and industrial and educational organizations under rules and regulations prescribed by the Secretary of Commerce and upon such terms as the Secretary of Commerce may arrange, and expenditures incident to such training are hereby authorized.

"(3) Cadets appointed to the United States Merchant Marine Appointments, Academy may be appointed by the Secretary of the Navy as Reserve to. midshipmen in the United States Navy and may be commissioned as

Reserve ensigns in the United States Navy upon graduation from

the Academy.

66

"(4) Cadets at the United States Merchant Marine Academy shall Allowances. receive allowances for all required uniforms and textbooks as pre

scribed by rules and regulations under this Act, and to transportation, including reimbursement of traveling expenses, while traveling under orders as a cadet.

"(5) (a) 'Representative' as used in this Act shall include Dele- "Representative". gates to the House of Representatives from Alaska and Hawaii and the Resident Commissioner from the Commonwealth of Puerto Rico. "(b) 'State' as used in this Act shall include Territories of Alaska, Hawaii, and the Commonwealth of Puerto Rico."

Approved February 20, 1956.

"State".