commitment by the United States which might have that result would not, in my opinion, be consistent with the act. This is recognized by the Department of State, see supra, p. 5. Accordingly, any such commitment should provide that the maximum liability of the United States for any nuclear incident involving the Savannah shall not exceed the amount specified by the act, or such lesser amount as may be agreeable to both countries. In summary, it is my opinion that an international agreement by the United States to consent to suit in personam in a foreign court and not to resort to maritime limitation of liability laws in such a court in connection with a nuclear incident involving the Savannah outside the United States is not inconsistent with Federal statutes concerning amenability to suit and governmental claims of limitation of liability, and is consistent with Public Law 85-602, provided that the agreement does not go beyond the authority conferred by section 7 of the Suits in Admiralty Act and contains adequate stipulations that the liability of the United States for any single nuclear incident shall not exceed $500 million. Sincerely, WILLIAM P. ROGERS. DEVELOPMENT LOAN FUND GUARANTIES UNDER MUTUAL SECURITY ACT OF 1954, AS AMENDED A guaranty contracted by the Development Loan Fund pursuant to the authority granted by section 202(b) of the Mutual Security Act of 1954 (August 26, 1954, c. 937, 68 Stat. 832), as amended, 22 U.S.C. 1872(b), constitutes a general obligation of the United States. A holder of a guaranty contracted by the Development Loan Fund is not limited to the assets of the Fund as a source of redemption of the guaranty but may invoke the general liability of the United States to obtain redemption. THE PRESIDENT. APRIL 14, 1961. MY DEAR MR. PRESIDENT: I have the honor to present my opinion upon a question forwarded to my predecessor from the White House on January 13, 1961. The question, transmitted at the instance of the Development Loan Fund, is whether a guaranty made by the Fund pursuant to section 202(b) of the Mutual Security Act of 1954 (Aug. 26, 1954, c. 937, 68 Stat. 832), as amended (22 U.S.C. 1872(b)), is backed by the full faith and credit of the United States. The Fund is an agency of the United States, corporate in form, which is empowered to make guaranties to private investors and others with respect to loans and certain other financial commitments contributing to the economic progress of friendly foreign nations. In context the essence of the question put by the Fund is whether its guaranties constitute valid general obligations of the United States or whether they may be asserted only against the Fund and its assets. The Fund was established by section 6 of the Mutual Security Act of 1957,1 amending the Mutual Security Act of |