[§ 6(a)(4)] of charters. (2) Charters existing on June 30, 1950, with respect Continuance to passenger vessels may be continued until December 31, 1951, or until expiration thereof by the terms of their provisions. SALE OF WAR-BUILT VESSELS TO PERSONS NOT CITIZENS OF THE SEC. 6. (a) Any person not a citizen of the United States may make application to the Commission to purchase a war-built vessel (other than a P-2 type or other passenger type and other than a Liberty type collier or tanker), under the jurisdiction and control of the Commission. If the Commission determines (1) that the applicant has the financial resources, ability, and experience necessary to enable him to fulfill all obligations with respect to payment of any deferred portion of the purchase prices, and that sale of the vessel to him would not be inconsistent with any policy of the United States in permitting foreign sales under section 9 of the Shipping Act, 1916, as amended; and (2) after consultation with the Secretary of the Navy, that such vessel is not necessary to the defense of the United States; and (3) that such vessel is not necessary to the promotion and maintenance of an American merchant marine described in section 2; and (4) that for a reasonable period of time, which in the case of tankers and "C" type vessels shall not end before ninety days after publication of the applicable prewar domestic cost in the Federal Regíster under subsection 3(c) of this Act, such vessel has been available for sale at the statutory sales price to citizens of the United States, or for charter under section 5 to citizens of the United States, and that no responsible offer has been made by a citizen See section 1(b) of the Act of February 27, 1948 (Public Law 423, 80th Cong.; 62 Stat. 38), which reads as follows: "(b) Notwithstanding the provisions of subsection (a), no contract of sale under section 6 of the Merchant Ship Sales Act of 1946 shall be made after March 1, 1948; and nothing contained in this or any other Act shall be deemed to authorize the United States Maritime Commission to charter any war-built vessel (as defined in the Merchant Ship Sales Act of 1946) to any person who is not a citizen of the United States (as defined in the Merchant Ship Sales Act of 1946)." By Public Law 12, 81st Congress (63 Stat. 9), the preceding paragraph (b) was amended by adding the following: "Provided, however, That vessels may be chartered to the Republic of the Philippines, or citizens thereof, for use in the inter-island commerce of the Philippines in accordance with section 306 of the Philippine Rehabilitation Act of April 30, 1946 (60 Stat. 137; U.S.C. 1946 Ed., Title 50, Sec. 1786)". See Public Law 25, 82d Cong. See also Public Laws 12, 147, and 591, 81st Cong. (63 Stat. 9, 349 and 64. Stat. 308). By Public Law 114, 84th Cong. (69 Stat. 217) provision was made for the Secretary of Commerce to sell certain vessels to citizens of the Republic of the Philippines. See also Public Law 86-473 (74 Stat. 143). [§ 6(4)] citizen of Philippines. of the United States to purchase or charter such vessels; then the Commission is authorized to approve the appliApplication by cation and sell such vessel to the applicant at not less than the statutory sales price. In case of application submitted by a citizen of the Commonwealth of the Philippines, paragraph (4) of this subsection shall not apply. Notwithstanding paragraph (4) of this subsection, not to exceed ten "C" type vessels, except C-3's, may be sold to noncitizens at any time after such date of publication at not less than the statutory sales price. Restrictions. Citizen and Citizens of the (b) Notwithstanding any other provision of law, no war-built vessel shall be sold to any person not a citizen of the United States, except in accordance with subsection (a), or upon terms or conditions more favorable than those at which such war-built vessel is offered to a citizen of the United States, but where the vessel so sold is being transferred to foreign register, and flag, the mortgage securing the unpaid balance of the purchase price and interest thereon shall contain provisions according to such mortgage the priorities over other liens and encumbrances accorded such mortgages on merchant vessels under the laws of such registry and flag. ORDER OF PREFERENCES SEC. 7. (a) In exercising its powers under this Act and under other provisions of law with respect to the sale and charter of war-built vessels, the Commission shall give preference to citizen applicants over noncitizen applicants, and as between citizen applicants to purchase and citizen applicants to charter, shall, so far as practicable and consistent with the policies of this Act, give preference to citizen applicants to purchase. In determining the order of preference between citizen applicants to purchase or between citizen applicants to charter, the Commission shall consider, among other relevant factors, the extent to which losses and requisitions of the applicant's prewar tonnage have been overcome and shall in all cases, in the sale and charter of a war-built vessel, give preference in such sale or charter, as the case may be, to the former owner of such vessel, or to the person for whom the vessel was constructed but to whom delivery thereof was prevented by the United States. In determining the order of preference between noncitizen applicants to purchase, the Commission shall give preference to citizens of the Commonwealth of the Philippines, and in determining the order of preference between other noncitizen applicants to purchase shall consider the extent to which losses in prewar tonnage of the various member nations of the United Nations, incurred in the interests of the war effort, have been overcome, and the relative effects of such losses upon the national economy of such member nations. [§ 8(a)] after cessation (b) After the cessation of hostilities, operation of ves- Operation sels in commercial service by the United States, either of hostilities. for its own account or through operating_agents under agency agreements, shall, except as to the Panama Railroad Company 5 and other services specifically authorized by law, be continued only to the extent necessary to effect orderly transfer of vessels to private operation. EXCHANGE OF VESSELS SEC. 8. (a) The Commission is authorized to acquire, in exchange for an allowance of a credit on the purchase of any war-built vessel under section 4 or any vessel acquired through exchange under subsection (d) of this section (1) Any vessel owned by a citizen of the United States, other than a vessel purchased under this Act; or (2) Any vessel owned by a foreign corporation, if (A) the vessel was constructed in the United States, and has, after December 7, 1941, been chartered to, or otherwise taken for use by, the United States; and (B) the controlling interest in such corporation is, at the time of acquisition of such vessel hereunder, owned by a citizen or citizens of the United States, and has been so owned for a period of at least three years immediately prior to such acquisition; and (C) such corporation agrees that the warbuilt vessel purchased with the use of such credit shall be owned by such citizen or citizens and shall be documented under the laws of the United States. Such allowance shall not be applied upon the cash payment required under section 4. A war-built vessel shall be deemed a "new vessel" for the purpose of section 511 of the Merchant Marine Act, 1936, as amended, and section 510(e) of such Act shall be applicable with respect to vessels exchanged under this section to the same extent as applicable to obsolete vessels exchanged under section 510 of such Act. Section 2 of Public Law 814, 81st Cong. (64 Stat. 1038) reads in part as follows: "SEC. 2. (a) Except as otherwise provided in, or where inconsistent with, the provisions of this Act * "(2) the term 'the Panama Railroad Company', wherever appearing in the statutes of the United States and having reference, prospectively, to the corporation heretofore known by that name, is amended to read 'the Panama Canal Company'." [8 8(b)] 50 U.S.C. Supp. V, app. 1295 note. Dry cargo vessels and tankers. Passenger vessels. Reconditioned vessels. (b) (1) If, prior to December 31, 1946, the owner of a vessel eligible for exchange under subsection (a) makes a firm offer binding for at least ninety days, to transfer the vessel to the Commission in exchange for an allowance of credit provided in subsection (a), the amount of such allowance shall be the fair and reasonable value of the vessel as determined by the Commission under this section. In making such determination the Commission shall consider: (A) The value of the vessel determined in accordance with the standards of valuation established pursuant to Executive Order 9387 (8 F.R. 14105) as of the date of such offer, (B) any liability of the United States for repair and restoration of the vessel, (C) the utility value of the vessel, (D) the effect of this Act upon the market value of such vessel, and (E) the public interest in promoting exchanges of vessels as a means of rehabilitating and modernizing the American merchant marine. In no event shall the amount of such allowance, in case of dry cargo vessels and tankers, exceed (A) (1) if the vessel or vessels tendered in exchange are of equal or greater dead-weight tonnage than the war-built vessel or vessels being acquired, 3313 per centum of the statutory sales price (unadjusted) of the war-built vessel or vessels, or (2) if the vessel or vessels tendered in exchange are of lesser dead-weight tonnage than the war-built vessel or vessels, such proportionate part of 33% per centum of the statutory sales price (unadjusted) of such war-built vessel or vessels as the dead-weight tonnage of such vessel or vessels tendered in exchange bear to the dead-weight tonnage of such war-built vessel or vessels, or (B) the liability of the United States in connection with the repair or restoration of such vessel under any charter to which the United States is a party, whichever is higher. In the case of passenger vessels tendered in exchange, the amount of the allowance shall not exceed the percentage of statutory sales price computed under (A) (1) and (2) above by gross tons instead of deadweight tons, or such liability for the repair or restoration of such passenger vessel, whichever is the higher. In any case where the vessel tendered in exchange was acquired from the United States, the exchange allowance under this section shall not exceed the price paid the United States therefor plus the depreciated cost of any improvements thereon. In the case of any vessel tendered in exchange which has been restored to condition by the United States for the purpose of redelivering such vessel to its owner in compliance with the charter of such vessel with the United States, or where, for such restoration a cash allowance has been made to the owner, there shall be deducted from the amount of the allowance of credit for such vessel determined by the Commission under this section, an amount equal to the liability of the [§ 9(a)(4)] United States for such restoration or such cash allowance made to the owner. acquisition, (2) If, after such offer is made and prior to its accept- Loss prior to ance, or prior to the acquisition of the vessel, by the Com- etc. mission, the vessel is lost by reason of causes for which the United States is responsible, then in lieu of paying the owner any amount on account of such loss, the offer shall, for the purposes of subsection (a) and this subsection, be considered as having been accepted and the vessel as having been acquired by the Commission under subsection (a) immediately prior to such loss. (c) The Commission is also authorized to make available any war-built vessel for transfer in complete or partial settlement of any claim against the United States (1) for just compensation upon requisition for title of any vessel, or (2) for indemnity for the loss of any vessel which was acquired for use by the United States, but only to the extent such vessel is available for sale to the claimant. Transfers in settlement of claims. Adjustment (d) In the case of any vessel constructed in the United with owners. States after January 1, 1937, which has been taken by the United States for use in any manner, the Commission, if in its opinion the transfer would aid in carrying out the policies of this Act, is authorized to transfer to the owner of such vessel another vessel which is deemed by the Commission to be of comparable type with adjustments for depreciation and difference in design or spread, and to the extent applicable, adjustments with respect to the retained vessel as provided for in section 9, and such other adjustments and terms and conditions, including transfer of mortgage obligations in favor of the United States binding upon the old vessel, as the Commission may prescribe. ADJUSTMENT FOR PRIOR SALES TO CITIZENS SEC. 9. (a) A citizen of the United States who on the 50 U.S.C. App. date of the enactment of this Act (1) owns a vessel which he purchased from the Commission prior to such date, and which was delivered by its builder after December 31, 1940; or (2) is party to a contract with the Commission to purchase from the Commission a vessel, which has not yet been delivered to him; or 1742. 46 U.S.C. 1154. (3) owns a vessel on account of which a construction-differential subsidy was paid, or agreed to be 49 Stat. 1998. paid, by the Commission under section 504 of the Merchant Marine Act, 1936, as amended, and which was delivered by its builder after December 31, 1940; or (4) is party to a contract with a shipbuilder for the construction for him of a vessel, which has not yet been delivered to him, and on account of which |