PUBLIC LAWS-CH. 626 -OCT. 6 , 1949 Transferoffunds. (c) Whenever he determines that such action is essential for the effective carrying out of the purposes of this Act, the President may from time to time utilize not to exceed in the aggregate 5 per centum of the amounts made available for the purposes of any title of this Notification to Con- Act for the purposes of any other title. Whenever the President makes any such determination, he shall forthwith notify the Committee on Foreign Relations of the Senate, the Committees on Armed Services of the Senate and of the House of Representatives, and the Committee on Foreign Affairs of the House of Representatives. Use of local caur (d) Upon approval by the President, any currency of any nation cy. received by the United States for its own use in connection with the furnishing of assistance under this Act may be used for expenditures for essential administrative expenses of the United States in any such nation incident to operations under this Act and the amount, if any, remaining after the payment of such administrative expenses shall be used only for purposes specified by Act of Congress. Transfer of equip- (e) The President may, from time to time, in the interest of achiev- ing standardization of military equipment and in order to provide procurement assistance without cost to the United States, transfer, or enter into contracts for the procurement for transfer of, equipment, Ante, pp. 715,1. materials or services to nations designated in title I, II, or III of this Act, or to a nation which has joined with the United States in a collec- tive defense and regional arrangement: Provided,That, prior to any such transfer or the execution of any such contracts, any such nation shall have made available to the United States the full cost, actual or estimated, of such equipment, materials, or services, and shall have agreed to make available forthwith upon request any additional sums that may become due under such contracts. Retention of equip- (f) Any equipment or materials procured to carry out the purposes ment, etc., by U. b. Ante,p. 715. of title I of this Act shall be retained by, or transferred to, and for the use of, such department or agency of the United States as the President may determine in lieu of being disposed of to a nation which is a party to the North Atlantic Treaty whenever in the judgment of the President of the United States such disposal to a foreign nation will not promote the self-help, mutual aid, and collective capacity to resist armed attack contemplated by the treaty or whenever such retention is called for by concurrent resolution by the two Houses of the Congress. UTrasporltatio on SEC. 409. That at least 50 per centum of the gross tonnage of any equipment, materials, or commodities made available under the provi- sions of this Act, and transported on ocean vessels (computed sep- arately for dry bulk carriers and dry cargo liners) shall be transported on United States flag commercial vessels at market 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 cargoes by geographic areas. Reports to Con- SEC. 410.the President, from time to time, but not less frequently than once every six months, while operations continue under this Act, shall transmit to the Congress reports of expenditures and activities authorized under this Act, except information the disclosure of which he deems incompatible with the security of the United States. Reports provided for under this section shall be transmitted to the Secretary of the Senate or the Clerk of the House of Representatives, as the case may be, if the Senate or the House of Representatives, as the case may be, is not in session. SEC. 411. For the purpose of this Act- "maE qip en t";" (a) The terms "equipment" and "materials" shall mean any arms, ammunition or implements of war, or any other type of material, arti- cle, raw material, facility, tool, machine, supply, or item that would further the purposes of this Act, or any component or part thereof, 720 [63 STAT.