Pub. L. 83-118, ch. VII, sec. 707

Sec. 707. The Mutual Defense Assistance Act of 1949, as amended (22 U. S. C. 1571–1604), is further amended as follows: (a) Excess equipment.—Immediately before the period in the next to last sentence of section 403 (d) (relating to limitation on furnishing of excess equipment), insert a comma and the following: “and after June 30, 1953, by an additional $200,000,000”. (b) Sales of military equipment.—Strike out the word “The” where it appeals at the beginning of section 408 (e) (1) (relating to sales of military equipment) and insert in lieu thereof the following: “Notwithstanding the provisions of section 530 (a) of the Mutual Security Act of 1951, as amended, the”. (c) Dependable undertaking procedure.—Amend the last, sentence of section 408 (e) (2) (relating to sales of military equipment) to read as follows: “Before a contract is entered into, or rehabilitation work is undertaken, such nation, or international military organization or headquarters, shall (A) provide the United States with a dependable undertaking to pay the full amount of such contract or the cost of such rehabilitation which will assure the United States against any loss on the contract, or rehabilitation work, and (B) shall make funds available in such amounts and at such times as may be necessary to meet the payments required by the contract or the rehabilitation work in advance of the time such payments are due, in addition to I he estimated amount of any damages and costs that may accrue from the cancellation of such contract or rehabilitation work: Provided, That the total amount of outstanding contracts under this subsection, 67 Stat. 161less the amounts which have been paid to the United States by such nations, shall at no time exceed $700,000,000.” (d) Loans of equipment.—Amend section 411 (d) (containing definitions) to read as follows: “(d) The term ‘services’ shall include any service, repair, training of personnel, or technical or other assistance or information necessary to effectuate the purposes of this Act, including loans of limited quantities of equipment for designated periods solely for test and study purposes.”