PUBLIC LAWS-CH. 417-AUG. 4 , 1939 Rejection of bids for (b) Section 706 (b) of such Act, as amended, is amended by adding charter. 49 stat. 2009. at the end thereof a new sentence to read as follows: "The Commis- 46 U. s. C., Supp. rvO, § 96 (b). sion shall reject any bid for the charter (under sections 701 to 713, both inclusive, of this title, as amended) of any vessel constructed under the provisions of this Act, as amended, if the charter hire offered by the bidder is lower than the minimum charter hire for such vessel would be if chartered under the provisions of section 714, as amended of this title." 452Stat. , 96 pp. SEC. 12. Section 714 of such Act, as amended, is hereby amended Iv, §124. to read as follows: Commission find- "SEC. 714 . If the Commission shall find that any trade route ing inabilit to devel- pgessentitad (determined by the Commission to be an essential trade route as roputsunder" p rivate provided in section 211 of this Act) cannot be successfully developed operation. prvate p l 49 tat. 1989. and maintained and the Commission's replacement program cannot iv,6Yi21 C." upp - be achieved under private operation of such trade route by a citizen of the United States with vessels registered under the laws thereof, without further Government aid in addition to the financial aids Costruction and authorized under titles V and VI of this Act, the Commission is demise under bare- boat charter. authorized to have constructed, in private shipyards or in navy yards, the vessel or vessels of the types deemed necessary for such trade route, and to demise such new vessel or vessels on bare-boat charter to the American-flag operator established on such trade route, with- out advertisement or competition, upon an annual charter hire of not less than 5 per centum of the price (herein referred to as the 'foreign cost') at which such vessel or vessels would be sold if con- structed under title V plus 3Y per centum of the depreciated foreign cost computed annually upon the basis of a twenty-year life of the Option to purchase. vessel. Such charter may contain an option to the charterer to purchase such vessel or vessels from the Commission within five years after delivery thereof under the charter, upon the same terms and conditions as are provided in title V for the purchase of new vessels from the Commission, except that (a) the purchase price shall be the foreign cost less depreciation to the date of purchase based Cash payment. upon a twenty-year life; (b) the required cash payment payable at the time of such purchase shall be 25 per centum of the purchase Chater hire. harterhe. price as so determined; (c) the charter may provide that all or any part of the charter hire paid in excess of the minimum charter hire provided for in this section may be credited against the cash pay- paymentofbalance. ment payable at the time of such purchase; (d) the balance of the purchase price shall be paid within the years remaining of the twenty years after the date of delivery of the vessel under the charter and in approximately equal annual installments, except that the first of said installments, which shall be payable upon the next ensuing anniversary date of such delivery under the charter, shall be a proportionate part of the annual installment, interest to be payable upon the unpaid balances of 3Y2 per centum per annum from the date of purchase. dometic trade nd "Such charter shall provide for operation of the vessel exclusively in foreign trade, or on a round-the-world voyage, or on a round voyage from the west coast of the United States to a European port or ports which includes intercoastal ports of the United States, or a round voyage from the Atlantic coast of the United States to the Orient which includes intercoastal ports of the United States, or on a voyage in foreign trade on which the vessel may stop at an island possession or island Territory of the United States, and if the vessel is operated in the domestic trade on any of the above-enumerated services the charterer will pay annually to the Commission that pro- portion of one-twentieth of the difference between the domestic and [53 STAT.