8isr ConerEss } HOUSE OF REPRESENTATIVES { Report Ist Session No. 220 PROVIDING FOR UNITED STATES FLAG SHIPPING PAR- TICIPATION IN GOVERNMENT-FINANCED CARGOES Marcu 7. 1949.—Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. Buanp, from the Committee on Merchant Marine and Fisheries submitted the following REPORT (To accompany H. R. 1340] The Committee on Merchant Marine and Fisheries to whom wes referred the bill (H. R. 1340), to provide for United States flag shipping participation in Government-financed cargoes having con- sidered the same, report favorably thereon with amendments and recommend that the bill do pass. The amendments are as follows: Page 1, line 8, after the word “water,” insert the words ‘which commences on or after the enactment of this Act,”. Page 1, line 9, after the words “gross tonnage” insert the words “‘and total transportation charges’. Page 1, lines 9 and 10, after the word “commodities,” insert the words “after excluding such cargoes carried on vessels under the jurisdiction of United States military authorities,”. Page 2, line 4, after the word “department” insert a comma. Page 2, line 12, after the word “expenditures”, delete the word “already”. PURPOSE OF THE LEGISLATION The purpose of this bill is to clarify and strengthen the intent of ‘ongress as expressed in section 111 (a) (2) of the Foreign Assistance Act of 1948. (Public Law 472, 80th Cong.) that not less than 50 percent of goods procured within the United States but of funds made avail- able under that act shall be transported on American flagships. H. R. 1340 goes further, and specifies that a similar policy shall apply to commodities procured by funds made available under any Government-financed program, except that cargoes carried on vessels under the jurisdiction of United States military authorities shall be excluded from consideration when making the computation.