641. It paved the way for the sending of 100 European and American paintings from the Metropolitan to the Hermitage Museum in Leningrad and the Pushkin Museum in Moscow for exhibition during 1975. An exhibition of Soviet works of art at museums in the United States had previously been agreed upon, with the Soviet side assuming indemnification responsibility. The exchange of exhibitions was arranged in accordance with the provisions of Article IX of the 1973 General Agreement between the United States and the Soviet Union on Contracts, Exchanges and Cooperation (TIAS 7649; 24 UST 1395; entered into force June 19, 1973) and an agreement between the Metropolitan Museum and the Soviet Ministry of Culture, finalized February 14, 1975.

Under the indemnification agreement the Department of State would provide indemnification of the Metropolitan Museum for loss or damage over $25,000 which might be suffered by any of the 100 items agreed upon for shipment. from the time they left the Metropolitan until their return. Any claim by the Metropolitan had to be submitted by February 29, 1976. If the Department of State concurred in its validity, it would be referred to a panel of experts for an opinion as to the amount of loss or damage. If the panel concurred in the amount claimed, the Department would certify the amount over $25,000 to the Speaker of the House of Representatives and the President of the Senate for appropriation. In the case of disagreement on the amount, the Department and the Metropolitan-or if they could not agree, the Secretary of the Smithsonian Institution-would select an expert appraiser whose determination of amount would be binding and would be certified to the Speaker of the House and the President of the Senate for appropriation. The agreement also provided for subrogation of the Department to the rights of the Metropolitan and prohibited the Metropolitan, without the Department's approval, from settling any claim to which the Department had subrogation rights or from waiving any claim.

Dept. of State File No. P75 0066-0895.

William K. Hitchcock, Acting Assistant Secretary of State for Educational and Cultural Affairs, on June 24, 1975, issued a determination that certain works of art from the Hermitage Museum and the State Russian Museum in Leningrad, imported from the Soviet Union pursuant to a loan agreement between the Ministry of Culture of the Soviet Union and the Armand Hammer Foundation, for temporary exhibition without profit within the United States, were of cultural significance. He also determined that their temporary exhibition or display at appointed dates in

1975 and 1976 at the National Gallery of Art in Washington, the Knoedler Gallery in New York, the Detroit Institute of Arts, the Los Angeles County Museum of Art, and the Museum of Fine Arts in Houston was in the national interest.

See Fed. Reg., Vol. 40, No. 125, June 27, 1975, pp. 27270-27271. The determination was made pursuant to the Act of Oct. 19, 1965 (P.L. 89-259; 79 Stat. 985; 22 U.S.C. 2459), which renders immune from seizure under judicial process certain objects of cultural significance imported into the United States for temporary display or exhibition "if before the importation of such object the President or his designee has determined that such object is of cultural significance and that the temporary exhibition or display thereof within the United States is in the national interest. . . ." Functions under the Act were delegated by E.O. 11312, Oct. 14, 1966 (31 Fed. Reg. 13415, Oct. 18, 1966), and delegation of authority No. 113 of Dec. 23, 1966 (32 Fed. Reg. 58, Jan 5, 1967). The agreement for the loan of the paintings was made in accordance with Art. IX of the General Agreement between the United States and the Union of Soviet Socialist Republics on Contracts, Exchanges, and Cooperation, signed June 19, 1973 (TIAS 7649; 24 UST 1395; entered into force June 19, 1975).

U.S.-People's Republic of China

On April 15, 1975, the United States and the People's Republic of China exchanged notes amending the agreement of October 28, 1974 (TIAS 8154; 26 UST 2131), regarding the holding of the "Exhibition of the Archeological Finds of the People's Republic of China" to provide for the holding of the exhibition at the Asian Art Museum, San Francisco, and to extend the period of the agreement until August 28, 1975. The 1974 agreement had provided for display of the exhibition at the National Gallery of Art in Washington and the Nelson Gallery-Atkins Museum in Kansas City, for the period ending June 7, 1975.

Pursuant to Public Law 93-287 of May 21, 1974 (88 Stat. 143; see the 1974 Digest, p. 640), the United States guaranteed in the original agreement that it would indemnify the Chinese for any loss or damage to items in the exhibit on the basis of the agreed valuations, the basis to be reduced by half if the loss or damage was caused by crash of an aircraft, war or warlike operations, or strong earthquakes. Following the three showings, the objects in the exhibit were returned to Peking. With the consent of the Chinese, the one slightly damaged object was repaired and the Chinese side waived any indemnity.

Dept. of State File L/T.

U.S.-Egypt

The United States and the Arab Republic of Egypt concluded an agreement by exchange of notes on October 28, 1975 (TIAS 8171;

26 UST; entered into force October 28, 1975), to facilitate the sending by the Government of Egypt of exhibitions to the United States of the "treasures of Tutankhamun" and other items of Pharaonic art. The exhibitions would be held in six museums in the United States beginning in late 1976 and would remain at each museum for a period of four months. The Government of the United States undertakes, consistent with the laws of the United States, to respect the rights of the Cairo Museum and the Government of Egypt in the objects to be exhibited and to protect those objects against any form of sequestration or other judicial process. The agreement envisages that the Metropolitan Museum of Art of New York will act as agent on behalf of the participating U.S. museums and will conclude an agreement with the Cairo Museum which would include a list of the objects to be exhibited, with their individual valuations, as well as financial arrangements and provision for insurance of the objects from the time of their departure from the Cairo Museum to their return to that museum.

Federal Laws and Regulations

The Department of Commerce issued new regulations, effective August 15, 1975, concerning official United States Government recognition of and participation in international expositions held in the United States. The regulations, which constitute a new Section 1202, added to Chapter XII of Title 15 of the Code of Federal Regulations, implement Public Law 91-269 of May 27, 1970 (84 Stat. 271; 22 U.S.C. 2801-2807), to establish an orderly procedure for Federal Government recognition of, and participation in, international expositions to be held in the United States. The regulations establish procedures for carrying out the Act and for implementing the obligations undertaken by the United States as a member of the Bureau of International Expositions (BIE) under the Paris Convention of 1928 relating to International Exhibitions, as amended (TIAS 6548, 6549; 19 UST 5927, 5974; entered into force for the United States June 24, 1968).

Under the new regulations, applications for Federal recognition of an international exposition are to be filed with the Director, Office of Expositions and Special Projects, U.S. Travel Service, Department of Commerce, and are to be accompanied by 15 specified exhibits. The Director evaluates applications, holding public hearings if he desires, and makes recommendations to the Secretary of Commerce. A report is transmitted to the President by the Secretary of Commerce, with respect to the purposes and

financing of the exposition, and by the Secretary of State, with respect to the qualifications of the exposition for recognition by the BIE. If the President concurs, BIE registration is sought. If Federal participation in the exposition, as well as Federal recognition is desired, a plan is drawn up for Presidential approval and submission to Congress. A specific authorization by Congress is required for Federal participation in a recognized international exposition.

See Fed. Reg., Vol. 40, No. 158, Aug. 14, 1975, pp. 34107-34110.

On December 20, 1975, President Ford signed into law the Arts and Artifacts Indemnity Act, Public Law 94-158 (89 Stat. 844; 20 U.S.C. 971-977). It authorizes the Federal Government, under certain circumstances, to provide for the indemnification of certain art, artifacts, and other objects to be exhibited abroad and, under special circumstances, objects from abroad coming to the United States. The Act authorizes the Federal Council on the Arts and Humanities to make agreements for the purpose of indemnification. A condition which the bill requires to be met is that the Secretary of State or his designee certify that the proposed exhibition of objects would be "in the national interest."

On signing the Act, the President made a statement as follows:

In approving S. 1800, I note that the legislative history links the determination of national interest specifically to exhibits and exchanges which would be in the "foreign policy interests of the United States," and "in the interests of the people of the United States" so that the indemnification program does not become simply an insurance relief mechanism. I believe that such linkage is essential to justify involvement of the Federal Government in this kind of an indemnification program, and I am therefore directing the Secretary of State to establish appropriate criteria for his certifications to assure that the intent of the legislation in this regard is properly and carefully carried out.

Another concern about S. 1800 grows out of the provisions designating the Federal Council on the Arts and Humanities as an agency for the purpose of administering the indemnification program. Under existing law, the Council is essentially an advisory body. This bill, however, would assign executive functions to the Council. Thus, its members must be officers of the United States. In this regard, four of the current statutory members of the Council-the Secretary of the Smithsonian Institution, the Director of the National Gallery of Art, the member designated by the Chairman of the Senate Commission on Art and Antiquities, and the member designated by the Speaker of the House-are not appointed in the manner pre

scribed in the Constitution for appointment of officers of the United States. Furthermore, the conversion of the Council from an advisory body into an executive agency for the purpose of the act would place the congressional member of the Council in violation of the constitutional prohibition against Members of Congress holding civil offices of the United States.

However, I am approving S. 1800 since these surface constitutional defects can be cured by Executive action. Under the authority vested in me by the National Foundation on the Arts and Humanities Act of 1965 to change the membership of the Council to meet changes in Federal programs or executive branch organization, I am today directing that, because of the constitutional provisions noted above, the four Council members previously mentioned shall not serve as members of the Council when it acts as an agency in carrying out functions under this act.

Weekly Compilation of Presidential Documents, Vol. 11, No, 52, Dec. 29, 1975, p. 1391. For the legislative history of the Act, see H. Rept. No. 94-680 on H.R. 7782; S. Rept. No. 94-289 on S. 1800.

Regional Cooperation

The Conference on Security and Cooperation in Europe (CSCE), at its final session at Helsinki, adopted on August 1, 1975, a Final Act which was signed by 35 states, including the United States. A section entitled "Cooperation in Humanitarian and Other Fields" set forth the following principles on cultural and educational cooperation:

COOPERATION AND EXCHANGES IN THE FIELD OF CULTURE The participating states,

Considering that cultural exchanges and cooperation contribute to a better comprehension among people and among peoples, and thus promote a lasting understanding among states,

Confirming the conclusions already formulated in this field at the multilateral level, particularly at the Intergovernmental Conference on Cultural Policies in Europe, organized by UNESCO in Helsinki in June 1972, where interest was manifested in the active participation of the broadest possible social groups in an increasingly diversified cultural life,

Desiring, with the development of mutual confidence and the further improvement of relations between the participating states, to continue further efforts toward progress in this field,

Disposed in this spirit to increase substantially their cultural exchanges, with regard both to persons and to cultural works, and to develop among them an active cooperation, both at the bilateral and the multilateral level, in all the fields of culture,

Convinced that such a development of their mutual relations will contribute to the enrichment of the respective cultures, while respecting the originality of each, as well as to the reinforcement among them of a consciousness of common values, while continuing to develop cultural cooperation with other countries of the world,

Declare that they jointly set themselves the following objectives:

(a) to develop the mutual exchange of information with a view to a better knowledge of respective cultural achievements,