To amend title VII of the Merchant Marine Act, 1936, to authorize the construction of a nuclear-powered merchant ship for operation in foreign commerce of the United States, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That title VII of the Nuclear-powered Merchant Marine Act, 1936, as amended (46 U. S. C., secs. 1191-1204), ship. is amended by adding at the end thereof the following new section:

Ante, p. 531.

"SEC. 716. There is hereby authorized to be appropriated to the Appropriation. Department of Commerce, Maritime Administration, and the Atomic Energy Commission, such sums as may be necessary, to remain available until expended, for the construction, outfitting, and preparation for operation, including training of qualified personnel, of a nuclearpowered merchant ship capable of providing shipping services on routes essential for maintaining the flow of the foreign commerce of the United States. The Maritime Administration, and the Atomic Energy Commission, in carrying on activities and functions under this paragraph, may collaborate with and employ persons, firms, and corporations on a contract or fee basis for the performance of special services deemed necessary by such agencies in carrying on such activities and functions. The Administration may, for the same purposes, with the approval of the Secretary of Commerce and where appropriate the Atomic Energy Commission, avail itself of the use of licenses, information, services, facilities, offices, and employees of any executive department, independent establishment, or other agency of the Government, including any field service thereof." Approved July 30, 1956.

To amend the Act of July 15, 1954, authorizing the sale of certain vessels to
Brazil.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act of Brazil. Congress entitled "To authorize the sale of certain vessels to Brazil Sale of for use in the coast wise trade of Brazil", approved July 15, 1954 (68 vessels. Stat. 481), is amended by inserting before the period at the end thereof a comma and the following: "except that, upon recommendation of the Maritime Administrator, and with the approval of the Secretary of Commerce, any such vessel may carry bulk grain and coal cargo while en route from the United States directly to Brazil after purchase hereunder for use thereafter only in the coastwise trade of Brazil”. Approved August 1, 1956.

Public Law 890 84th Congress
Chapter 846 - 2d Session

H. J. Res. 613

JOINT RESOLUTION.

All 70 Stat. 897.

To authorize the vessel operations revolving fund of the Department of Commerce to be used for expenses in connection with the chartering of merchant ships under jurisdiction of the Secretary of Commerce.

Resolved by the Senate and House of Representatives of the United

States of America in Congress assembled, That the vessel operations Vessel operrevolving fund created by the Third Supplemental Appropriations ations revolvAct, 1951, approved June 2, 1951 (Public Law 45, Eighty-second ing fund. Congress: 65 Stat. 52, at 59), shall, beginning July 1, 1956, be available for expenses incurred in connection with the activation, repair, and deactivation of merchant ships chartered under the jurisdiction of the Secretary of Commerce. There shall be credited to such fund all receipts on account of operations after July 1, 1956, under charters of Government-owned ships under the jurisdiction of the Secretary of Commerce.

Approved August 1, 1956.

84th Congress Chapter 904 2d Session

To authorize the Secretary of Commerce to sell certain war-built vessels.

Resolved by the Senate and House of Representatives of the United Vessels. States of America in Congress assembled, That (a) notwithstanding Sale of tankers. the provisions of section 11 of the Merchant Ship Sales Act of 1946, 60 Stat. 49. as amended, and section 510 (h) of the Merchant Marine Act, 1936, as 50 USC app. amended, the Secretary of Commerce is authorized to sell within one 1744. year after the enactment of this joint resolution to the highest respon- 68 Stat. 680. sible bidder who is a citizen of the United States, within the meaning 46 USC 1160. of section 2 of the Shipping Act, 1916, as amended, for employment 39 Stat. 729. on essential trade routes 3 and 4 to Cuba and Mexico, any two war- 46 USC 844. built vessels under the jurisdiction of the Secretary of Commerce, on an as is, where is, basis, provided that the Secretary of Commerce shall determine before entering into such sales that the purchaser possesses the ability, experience, financial resources, and other qualifications necessary to enable it to operate and maintain the vessels in service on that portion of essential trade routes 3 and 4 between Atlantic Coast ports of the United States and Cuba and Mexico and to maintain adequate service on such portion of such routes. The upset prices of the vessels shall be their sales prices computed under the Merchant Ship Sales Act of 1946, as of January 15, 1951, depreciated (after reduction for residual value) on a straight line basis for the period from January 15, 1951, to the date of execution of the contract of sale, on the basis of the portion of a twenty-year useful life of the vessels remaining after January 15, 1951.

(b) Each such sale shall be on the basis of the payment by the purchaser of not less than 25 per centum of the vessel sales price at the time of execution of the vessel sales contract, with the balance payable in approximately equal annual installments over the remainder of the economic life of the vessel, which economic life is to be determined by the Maritime Administration, with interest on the portion of the vessel sales price remaining unpaid at the rate of 32 per centum per annum. The obligation of the purchaser with respect to payment of such unpaid balance, with interest, shall be secured by a preferred mortgage on the vessels in form satisfactory to the Maritime Administrator.

(c) (1) Such sales shall be made upon such conditions as the Secretary of Commerce deems necessary to protect the interests of the United States.

(2) Vessels sold under this Act shall be employed exclusively as dry cargo common carriers on that portion of essential trade routes 3 and 4 between Atlantic Coast ports of the United States and Cuba and Mexico, until the end of their useful lives, as determined under subsection (b) of this Act, or until they are replaced by new tonnage, whichever happens first. These restrictions shall run at law and in equity with the titles to the vessels and are binding upon all subsequent owners.

(d) Any contract of sale executed under authority of this Act shall provide that in the event the United States shall, through purchase or requisition, acquire ownership of any such vessel, the owner shall be paid therefor the value thereof, but in no event shall such payment exceed the actual depreciated sales price under such contract (together with the actual depreciated cost of capital improvements thereon); 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 income tax purposes as applicable to such vessel; that such vessel shall remain documented

All 70 Stat. 958.

under the laws of the United States during the remainder of the economic life of the vessel or as long as there remains due the United States any principal or interest on account of the sales price, which ever 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 3, 1956.

Chapter 908

2d Session

To authorize the construction of one prototype ship and the conversion of one
Liberty ship, by the Maritime Administration, Department of Commerce.

of vessels, authorization.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there is hereby Construction authorized to be appropriated to the Department of Commerce, and conversion Maritime Administration, such sums as may be necessary, to remain available until expended, to construct, outfit. and test one prototype merchant ship of the "Clipper" class, as designed by the Maritime Administration, Department of Commerce, and to convert, outfit, and test one reserve fleet Liberty ship. Such construction and conversion, outfitting, and testing shall be subject to the pro- 49 Stat. 1985. visions of the Merchant Marine Act, 1936, as amended. Approved August 3, 1956.

46 USC 1245.

To provide for a study by the Federal Communications Commission, the United States Coast Guard, and the Federal Maritime Administration with respect to the need for automatic radiotelegraph call selectors and other such safety devices on certain cargo ships of the United States.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Federal Cargo ships. Communications Commission, the United States Coast Guard, and Automatic radiothe Federal Maritime Administration are hereby authorized and telegraph. directed, acting jointly, (1) to make a full and complete study and investigation with respect to the need for installing automatic radiotelegraph call selectors on cargo ships of the United States carrying less than two radio operators, and other such safety devices, and the

feasibility thereof, (2) to report to the Congress at the earliest prac- Report to ticable date, but not later than March 1, 1957, and (3) to include in Congress. such report their recommendations, if any, for necessary legislation. Approved August 3, 1956.