To provide an immediate program for the modernization and improvement of such merchant-type vessels in the reserve fleet as are necessary for national defense.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may Emergency Ship be cited as the "Emergency Ship Repair Act of 1954”.

STATEMENT OF PURPOSE

SEC. 2. It is the purpose of this Act in the interests of national defense to provide for the immediate improvement and modernization of needed merchant-type vessels in the reserve fleet under the jurisdiction of the Secretary of Commerce, and thereby to provide a much needed stimulus to the shipbuilding and ship repair industries

of the Nation.

RESERVE FLEET MODERNIZATION AND REPAIR PROGRAM

SEC. 3. The Secretary of Commerce shall, after consulting the Secretary of Defense, formulate and carry out to the extent authorized under the provisions of this Act a program of repairing, modernizing, or converting such merchant-type vessels in the national defense reserve under the jurisdiction of the Secretary of Commerce as may be necessary to provide for the purpose of national defense an adequate and ready reserve fleet of merchant and auxiliary vessels.

CONTRACTING AUTHORIZATION

SEC. 4. The Secretary of Commerce shall, within twenty-four months after the date of the enactment of this Act, enter into such contracts for the repair, modernization, and conversion of vessels as may be necessary to carry out the provisions of this Act. Such contracts (1) may provide for the expenditure by the United States of not more than $25,000,000, (2) shall be with private shipbuilding or ship repair yards on the Atlantic, Pacific, and gulf coasts of the United States, (3) shall be entered into in accordance with applicable provisions of the Federal Property and Administrative Services Act

Repair Act of 1954.

of 1949. In entering into such contracts the Secretary of Commerce 63 Stat. 377. shall not alter the present Maritime Administration policy of inviting 40 USC 471 note. single bids or split bids or both for drydock and nondrydock work.

AUTHORIZATION OF APPROPRIATION

SEC. 5. There are hereby authorized to be appropriated such sums not in excess of $25,000,000 as may be necessary to carry out the provisions of this Act.

Approved August 20, 1954.

68 Stat. 754. 68 Stat. 755.

To authorize the Secretary of the Navy to dispose of certain uncompleted naval vessels, and for other purposes.

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled, That the Secretary Naval vessels, of the Navy is authorized to scrap the uncompleted naval vessels Castle Disposal of (DD-720) and Woodrow R. Thompson (DD-721) and in his discre- certain. tion to dispose of the materials therefrom by sale or to retain any such materials for further naval use.

SEC. 2. The action of the Department of the Navy in scrapping the_uncompleted naval vessels Hoel (DD-768) and Abner Read (DD-769), prior to the enactment of the Act of June 19, 1948 (62 Stat. 492, ch. 521), which authorized the suspension of construction of these vessels, is hereby ratified.

68 Stat. 765.

SEC. 3. The proviso of title III of the Second Supplemental Surplus 68 Stat. 766. Appropriation Rescission Act, 1946, under the heading "Increase and Replacement of Naval Vessels" (60 Stat. 227), in the discretion of the President shall not apply to the "Lancetfish" (SS-296) and "Turbot" (SS-427).

Approved August 23, 1954.

(703)

Chapter 936

2d Session

S. 3233

AN ACT

All 68 Stat. 832.

To amend the Merchant Marine Act, 1936, to provide permanent legislation for the transportation of a substantial portion of waterborne cargoes in United States-flag vessels.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 901 U. S. merchant of the Merchant Marine Act, 1936, as amended, is hereby amended vessels. by inserting "(a)" after "SEC. 901." and by adding at the end of the Cargo preference. section the following new subsection:

"(b) whenever the United States shall procure, contract for, or otherwise obtain for its own account, or shall furnish to or for the account of any foreign nation without provision for reimbursement, any equipment, materials, or commodities, within or without the United States, or shall advance funds or credits or guarantee the convertibility of foreign currencies in connection with the furnishing of such equipment, materials, or commodities, the appropriate agency or agencies shall take such steps as may be necessary and practicable to assure that at least 50 per centum of the gross tonnage of such equipment, materials, or commodities (computed separately for dry bulk carriers, dry cargo liners, and tankers), which may be transported on ocean vessels shall be transported on privately owned United States-flag commercial vessels, to the extent such vessels are available at fair and reasonable rates for United States-flag commercial vessels, in such manner as will insure a fair and reasonable participation of United States-flag commercial vessels in such cargoes by geographic areas: Provided, That the provisions of this subsection may be waived whenever the Congress by concurrent resolution or otherwise, or the President of the United States or the Secretary of Defense declares that an emergency exists justifying a temporary waiver of the provisions of section 901 (b) and so notifies the appropriate agency or agencies: And provided further, That the provisions of this subsection shall not apply to cargoes carried in the vessels of the Panama Canal Company. Nothing herein shall repeal or otherwise modify the provisions of Public Resolution Numbered 17, Seventy-third Congress (48 Stat. 500), as amended." Approved August 26, 1954.

49 Stat. 2015. 46 USC 1241,

15 USC 6168.

Chapter 1018 2d Session

H. R. 9584

AN ACT

All 68 Stat. 883.

To protect the rights of vessels of the United States on the high seas and in territorial waters of foreign countries.

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled, That for the purposes Seizure of U. S. of this Act the term "vessel of the United States" shall mean any vessels on high private vessel documented or certificated under the laws of the United seas, eto. States.

SEC. 2. In any case where

(a) a vessel of the United States is seized by a foreign country on the basis of rights or claims in territorial waters or the high seas which are not recognized by the United States; and

(b) there is no dispute of material facts with respect to the location or activity of such vessel at the time of such seizure, the Secretary of State shall as soon as practicable take such action as he deems appropriate to attend to the welfare of such vessel and its crew while it is held by such country and to secure the release of such vessel and crew.

SEC. 3. In any case where a vessel of the United States is seized by a foreign country under the conditions of section 2 and a fine must be paid in order to secure the prompt release of the vessel and crew, the owners of the vessel shall be reimbursed by the Secretary of the Treasury in the amount certified to him by the Secretary of State as being the amount of the fine actually paid.

Aotion by Seoretary of State.

SEC. 4. The provisions of this Act shall not apply with respect to Nonapplica a seizure made by a country at war with the United States or a seizure bility. made in accordance with the provisions of any fishery convention or treaty to which the United States is a party.

SEC. 5. The Secretary of State shall take such action as he may deem appropriate to make and collect on claims against a foreign country for amounts expended by the United States under the provisions of this Act because of the seizure of a United States vessel by such country.

SEC. 6. There are authorized to be appropriated such amounts as may Appropriation. be necessary to carry out the provisions of this Act.

Approved August 27, 1954.

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

Statutes 4426, as amended, is further amended by inserting a colon and 46 USC 404, the following before the period at the end of the third sentence:

"Provided, however, That, until June 30, 1956, no vessel registered or Inspection of licensed as a vessel of the United States of fifteen gross tons or less on vessels. December 31, 1953, shall be deemed to be subject to the inspection provisions of this section notwithstanding the fact that such vessel may thereafter be found to have a tonnage in excess of fifteen gross tons, unless such finding results from an alteration in the length, breadth, or depth affected after December 31, 1953."

Approved August 31, 1954.

To provide that contributions received under Public Law 485, Eightieth Congress, for the construction of a merchant marine chapel shall be invested in Government obligations pending their use for such construction.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That funds accepted Merchant marine under Public Law 485, Eightieth Congress, as contributions to assist chapel funds. in defraying the cost of construction of the chapel provided for in Investment. that Act shall be invested by the Secretary of the Treasury in bonds 62 Stat. 172. or other obligations of, or in bonds or other obligations guaranteed as to principal and interest by, the United States, until such funds are needed for the purpose for which they were contributed. The yield obtained from such investments shall be considered to be a part of such funds.

· Approved August 31, 1954.