1. Shipments from the United States. 2. Restricted commodities.

3. Addition of commodities to the Positive List.

4. Calls at restricted ports en route to an unrestricted port with restricted cargo. 5. Forwarding commodities previously shipped.

6. Relation to Transportation Order T-2.

AUTHORITY: Sections 1 to 6 issued under sec. 704, 64 Stat. 816, as amended; 50 U.S.C. App. 2154. Interpret or apply sec. 101, 64 Stat. 799, as amended; 50 U.S.C. App. 2071, E.O. 10480, 18 F.R. 4939, 3 CFR, 1953 Supp. SOURCE: Sections 1 to 6 contained Transportation Order T-1, Interpretation 1, 15 F.R. 9145, Dec. 21, 1950, unless otherwise noted.

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Section 1. Shipments from the United States.

Transportation Order T-1 applies to shipments from the United States, as well as to shipments from foreign ports, on American flag ships and aircraft.

Sec. 2. Restricted commodities.

The restrictions of Transportation Order T-1 apply to the transportation or discharge of (a) commodities on the Positive List (15 CFR Part 399) (as amended from time to time) of the Comprehensive Export Schedule of the Office of International Trade, Department of Commerce, (b) articles on the list of arms, ammunition and implements of

war coming within the meaning of Proclamation No. 2776 of March 26, 1948, and (c) commodities, including fissionable materials, controlled for export under the Atomic Energy Act of 1946. The restrictions imposed by Transportation Order T-1 do not apply to other commodities, not within these restricted classes at the time of transportation or discharge, even though authorization for the export of the commodity from the United States to the particular destination is required under regulations of the Office of International Trade or under other Federal law or regulation. In this respect, Order T-1 is different from Order T-2 which applies to all commodities destined to Communist China. Order T-1 does not relax or modify any of the requirements of any other regulation or

law.

Sec. 3. Addition of commodities to the Positive List.

Order T-1 applies to the transportation or discharge of commodities which are restricted at the time of transportation or discharge. Accordingly, if a commodity is added to the Positive List while the commodity is being transported on an American flag ship or aircraft, the restrictions of Order T-1 immediately apply and the commodity may not be transported to or discharged at any of the restricted ports or discharged in transit to one of the restricted ports, unless authorization under Order T-1 is obtained.

Sec. 4

Calls at restricted ports en route to an unrestricted port with restricted cargo.

Order T-1 does not prohibit an American flag ship or aircraft from going to or calling at one of the restricted ports, even though it has on board a commodity which could not be discharged at that port. (Note, however, that Order T-2 prohibits American flag ships and aircraft from calling at any port or other place in Communist China). For example, an American flag ship may call at one of the restricted ports (except one in Communist China), even though it has on board the following classes of commodities: (a) a Positive List commodity manifested to a destination outside the restricted area, with an export license and an export declaration showing the unrestricted destina

tion at the ultimate destination, (b) a Positive List commodity destined for the restricted port of call which cannot be discharged there because there is no export license or authorization from the Under Secretary for Transportation permitting discharge at the restricted port of call, (c) a commodity of any kind destined for Communist China (the transportation and discharge of which is covered by Order T-2). None of these commodities may be discharged at the restricted port of call. Discharge of any of these commodities at the port covered by the restrictions of Order T-1 is prohibited and subject to penalty, regardless of the circumstances under which the discharge of the cargo at the restricted port occurs, unless appropriate authorization is obtained.

Sec. 5. Forwarding commodities previously shipped.

Order T-1 applies to transportation on or discharge from ships documented under the laws of the United States and aircraft registered under the laws of the United States. These restrictions apply either in the case of a discharge at one of the restricted ports or to discharge at any other port in transit to a restricted destination. The restrictions of Order T-1 do not apply to transportation by foreign carriers, as long as there is no prohibited transportation or discharge by or from a United States flag ship or aircraft after the issuance of Order T-1. Accordingly, if an American flag ship or aircraft, before the issuance of Order T-1, had transported restricted commodities manifested to restricted destinations, and had completed the transportation to a foreign intermediate point and had completed the discharge from the American flag ship or aircraft before the issuance of Order T-1, no violation of that order would have occurred, but Order T-1 would prohibit further shipment on an American flag ship or aircraft unless authorization under Order T-1 is obtained.

6. Defense against claims for damages. 7. Violations.

AUTHORITY: Sections 1 to 7 issued under sec. 704, 64 Stat. 816, as amended; 50 U.S.C. App. 2154. Interpret or apply sec. 101, 64 Stat. 799, as amended; 50 U.S.C. App. 2071; E. O. 10480, 18 F. R. 4939, 3 CFR, 1953 Supp.

SOURCE: Sections 1 to 7 contained in Transportation Order T-2 (Amended), 23 F. R. 8396, Oct 30, 1958, unless otherwise noted. Section 1. Prohibition of movement of

American carriers to Communist China, north Korea, or to the Communist-controlled area of Viet Nam. No person shall sail, fly, navigate, or otherwise take any ship documented under the laws of the United States or any aircraft registered under the laws of the United States to any Chinese Communist port, north Korea, any other place under the control of the Chinese Communists, or to the Communist-controlled area of Viet Nam.

Sec. 2. Prohibition on transportation of goods destined for Communist China, north Korea, or the Communist-controlled area of Viet Nam.

No person shall transport, in any ship documented under the laws of the United

States or in any aircraft registered under the laws of the United States, to Chinese Communist ports, north Korea, any other place under the control of the Chinese Communists, or to the Communist-controlled area of Viet Nam, any material, commodity, or cargo of any kind. No person shall take on board any ship documented under the laws of the United States or any aircraft registered under the laws of the United States any material, commodity, or cargo of any kind if he knows or has reason to believe that the material, commodity, or cargo is destined, directly or indirectly, for Communist China, north Korea, or for the Communist-controlled area of Viet Nam. No person shall discharge from any ship documented under the laws of the United States or from any aircraft registered under the laws of the United States, at any place other than the port where the cargo was loaded, or within territory under the jurisdiction of the United States, any material, commodity, or cargo of any kind which he knows or has reason to believe is destined for Communist China, north Korea, or for the Communist-controlled area of Viet Nam Sec. 3. Persons affected.

The prohibitions of this order apply to the owner of the ship or aircraft. to the master of the ship or aircraft, and to any other officer, employee, or agent of the owner of the ship or to any other person who participates in the prohibited activities.

Sec. 4. Reports.

The owner of any ship documented under the laws of the United States or any aircraft registered under the laws of the United States which is making a voyage to the Communist-controlled area of Viet Nam at the time this order as amended is issued shall report this fact promptly to the Under Secretary for Transportation, Department of Commerce, Washington 25, D.C., and advise what steps he has taken to comply with the requirements of section 1 of this order. The owner of any ship documented under the laws of the United States or any aircraft registered under the laws of the United States which, at the time this order as amended is issued, is carrying any ma

terial, commodity, or cargo which the owner, the master of the ship or aircraft, or any other officer, employee or agent of the owner, knew or had reason to believe was destined for the Communistcontrolled area of Viet Nam shall report this fact promptly to the Under Secretary for Transportation, Department of Commerce, Washington 25, D.C., and advise what disposition has been or will be made of such cargo. Persons subject to this order shall submit such reports to the Under Secretary for Transportation, Department of Commerce, as he shall require, subject to the terms of the Federal Reports Act.

Sec. 5. Records.

Each person participating in any transaction covered by this order shall retain in his possession, for at least two years, records of voyages and shipments in sufficient detail to permit an audit that will determine for each transaction that the provisions of this order have been met. This provision does not require any particular accounting method and does not require alteration of the system customarily maintained, provided such records supply an adequate basis for audit. Records may be retained in the form of microfilm or other photographic copies instead of the originals. Sec. 6. Defense against claims for damages.

No person shall be held liable for damages or penalties for any default under any contract or order which shall result directly or indirectly from compliance with this order or any provision, thereof, notwithstanding that this order or such provision shall thereafter be declared by judicial or other competent authority to be invalid.

Sec. 7. Violations.

Any person who willfully violates any provisions of this order, or willfully conceals a material fact, or furnishes false information in the course of operation under this order, shall, upon conviction, be punished by fine or imprisonment, or both. In addition, administrative action may be taken against any such person, denying him the privileges generally accorded under this order.