advice: Provided further, That when the Office of the Foreign Liquidation Commissioner determines that disposition by it of surplus property located in a certain area would be costly and uneconomical, such property (with the exception of that property which has been declared surplus to or committed for sale by the Office of the Foreign Liquidation Commissioner) may be disposed of by the owning agency in accordance with regulations to be issued by the owning agency and approved by the Office of the Foreign Liquidation Commissioner, at the best price obtainable under the circumstances, rather than declared surplus. Where the total acquisition cost of all such property to be disposed of by an owning agency at any depot, base, or similar place at any one time exceeds $50,000 (exclusive of the value of any property being disposed of under the authority of section 14(b) of the Surplus Property Act of 1944 as amended), the proposed disposition shall be referred to the Office of the Foreign Liquidation Commissioner for review and discussion as to the most practical method of disposal in accordance with the conditions and determinations noted above. However, whenever, in the opinion of the owning agency, reference to the Office of the Foreign Liquidation Commissioner is deemed desirable because of exceptional circumstances, the proposed disposal may be referred to the Office of the Foreign Liquidation Commissioner for review and discussion, regardless of the acquisition cost of the property involved. All dispositions of property made under this proviso by the owning agencies will be subject to the import restrictions of § 308.15 and orders issued pursuant to § 308.15.

[FLC Reg. 8, 11 FR 13423, Nov. 9, 1946, as amended by Amdt. 3, 13 FR 5824, Oct. 6, 1948; 13 FR 5879, Oct. 8, 1948]

§ 133.4 Delegation of authority.

The Foreign Liquidation Commissioner may delegate his authority for disposal of surplus property to a Government agency or to a person under the complete control of a Government agency.

§ 133.5 Active theaters of military operations.

Nothing in this part limits or affects the authority of commanders in active theaters of military operations with respect to property in their control. § 133.6 Declarations of surplus property.

(a) Where filed. Declaration to the Office of the Foreign Liquidation Commissioner of surplus real and personal property located in foreign areas shall be filed as directed by the Foreign Liquidation Commissioner.

(b) Limitations on power of disposal. Declaration of surplus property shall fully set forth any legal or contractual restrictions, known to the owning agency, upon authority of the Government to dispose of the property covered by the declaration. To the extent that such information is furnished directly by owning agencies to the Office of the Foreign Liquidation Commissioner, it may be omitted from the declarations of surplus. It shall be the duty of owning agencies to keep their field representatives fully informed as to all such information which is to be included in declarations of surplus. It shall similarly be the duty of the Office of the Foreign Liquidation Commissioner and of any person acting under delegated authority to keep its field representatives and any person to whom the Foreign Liquidation Commissioner has delegated disposal authority fully informed as to all such information received directly from the owning agencies.

(c) Red Cross property. Declarations of surplus personal property shall designate any such property known to have been processed, produced or donated by the American Red Cross.

(d) Withdrawals. With the consent of the Office of the Foreign Liquidation Commissioner, an owning agency may withdraw property which it has declared surplus and for which a declaration has been transmitted to the Office of the Foreign Liquidation Commissioner pursuant to this part.

§ 133.7 Exemptions from Surplus Property Act.

In accordance with section 32(b) of the Act, as amended, and pending fur

ther determinations and regulations or orders of the Secretary of State, the Secretary of State hereby exempts disposition of property located in foreign areas from the following provisions of the act:

(a) Section 10(b) “Designation of disposal agencies."

(b) Section 11(b) insofar as it requires owning agencies to report surplus property to the Secretary of State and the last sentence of section 11(g) insofar as it requires disposal agencies to make information in its records available to foreign nationals or foreign governments.

(c) Section 12, "Utilization of Surplus Property by Federal Agencies," except subsection (d).

(d) Section 13, subsections (a), (c), (d), (e), and (f), "Disposal to Local Governments and Nonprofit Institutions."

(e) The proviso in section 15(a) limiting to 3 years the period for which credit may be extended on sale of certain types of property.

(f) Section 16, "Dispositions to Veterans."

(g) Section 17, "Dispositions in Rural Areas."

(h) Section 18, "Small Business."

(i) Section 20, "Applicability of Antitrust Laws," insofar as it requires disposal agencies to notify the Attorney General: Provided, however, That this exemption shall not apply with respect to plants, pipe lines, and other installations which cost the Government $1,000,000 or more, and patents, processes, techniques or inventions, irrespective of cost.

(j) Section 23 "Disposal of Surplus Real Property."

(k) Section 36, "Termination Inventories."

§ 133.8 Utilization of surplus property by Federal agencies.

It shall be the responsibility of all Government agencies having any requirements in foreign areas to consult the records of surplus property established by the Office of the Foreign Liquidation Commissioner to determine whether their requirements can be satisfied out of surplus property.

The office of the Foreign Liquidation Commissioner may make donations pursuant to section 13(b) of the Act whenever it finds that surplus property has no commercial value or that the cost of its care and handling and disposition would exceed the estimated proceeds: Provided however, That the Office of the Foreign Liquidation Commissioner makes and retains a record of its findings justifying the donation, together with any supporting data. Such donations may be made to foreign nonprofit educational or charitable organizations but preference shall be given to nonprofit institutions as defined in § 308.1. In making donations of surplus property which was processed, produced or donated by the American Red Cross, the provisions of section 11(f) of the Act shall be observed.

§ 133.10 Destruction or abandonment.

Any surplus property and any waste, salvage or scrap located in foreign areas may be destroyed or abandoned by an owning agency or by the Office of the Foreign Liquidation Commissioner without any notice of the proposed destruction: (a) When the destruction or abandonment is required by military necessity, safety, or considerations of health or security; or (b) whenever it is determined by the Office of the Foreign Liquidation Commissioner that the property has no commercial value, or that the cost of its care, handling and disposition would exceed the estimated proceeds. Any agency authorizing destruction or abandonment under paragraph (a) of this section shall make and retain a record of the surplus property destroyed and the reasons therefor. The Office of the Foreign Liquidation Commissioner should not authorize or consent to the abandonment or destruction of surplus property under paragraph (b) of this section without exploring the possibilities of making a donation under § 308.9. Any agency authorizing destruction or abandonment under paragraph (b) of this section shall make and retain a record of its findings justifying such action.

§ 133.11 Disposal of certain plants, facilities and equipment under section 19(c) of the Act.

Surplus aircraft plants and facilities, aircraft and aircraft parts, shipyards and facilities, transportation facilities, and radio and electrical equipment, located in foreign areas, may, in accordance with section 19(c) of the Act, be disposed of without prior submission to the Congress.

§ 133.12 Aircraft and property peculiar

or

thereto. Pending further regulations orders of the Secretary of State, surplus aircraft and property peculiar to aircraft located in foreign areas shall be disposed of only in accordance with existing procedures except that donations of such property may be made pursuant to § 308.9.

§ 133.13 Plants, pipe lines or other installations costing $1,000,000 or more. Whenever the Office of the Foreign Liquidation Commissioner shall begin negotiations for the disposition of any plants, pipe lines, or other installations, located in foreign areas, which cost the Government $1,000,000 or more, the Office of the Foreign Liquidation Commissioner shall promptly notify the Attorney General.

§ 133.14 Food and agricultural commodities.

Disposals of surplus agricultural commodities, surplus foods processed from agricultural commodities, and surplus cotton or woolen goods remain subject to the provisions of section 21 (a) and (b) of the Act, and subject to such policies as may be formulated and issued pursuant thereto.

§ 133.15 Importation into United States.

Surplus property sold in foreign areas by the Government or any agency thereof before July 1, 1949, shall not be imported into the United States in the same or substantially the same form in which it was exported from the United States if such property was originally produced in the United States and is readily identifiable as such, except to the extent that the Secretary of Commerce or his del

egated representative specifically authorizes such importation upon determination that the importation would relieve domestic shortages or otherwise be beneficial to the economy of this country: Provided however, That the prohibition of this section shall not apply to the importation of such property (a) for the purpose of reconditioning for re-export, or (b) by a veteran (or member of the Armed Forces) upon certification by him that the importation is being made for his personal use, or (c) if sold primarily for and imported for use as scrap metal and the importer furnishes an undertaking in a form and an amount to be prescribed by the Treasury Department to insure that none of the property will be diverted from use as metal. Nothing in this section shall prevent the importation of property in transit to a point in the United States on or before June 30, 1949, in accordance with the provisions of FLC Regulation 8, Order 6 (§ 308.56); Provided further, That, for the purpose of this section, foreign areas shall not include Guam or other Pacific insular possessions. Nothing in this section shall prevent surplus property which is owned by a Government agency from being brought into the continental United States, its territories or possessions.

scrap

For the purpose of this section, a complete and useable part of another article from which it has been detached shall not be considered as in other than the "same or substantially the same form in which it was exported from the United States" merely because it has been detached, and is imported separately, from the article of which it was a part. In any case of doubt, the question whether an article is "in the same or substantially the same form in which it was exported from the United States" shall be referred to the Secretary of Commerce, or a representative designated by him, for decision.

[FLC Reg. 8, Amdt. 5, 15 FR 845, Feb. 16, 1950, as amended by Amdt. 6, 15 FR 5930, Sept. 1, 1950]

§ 133.16 Disposal policies.

(a) Price policy. The governing price policy shall be to obtain for the Government as nearly as possible, the fair value of surplus property on its disposition.

Government

(b) Purchasers—(1) agencies. Transfer of surplus property to Government agencies for their use in foreign areas shall be given priority over all other disposals.

(2) Other than Government agencies. The Office of the Foreign Liquidation Commissioner may establish such order of priorities among persons other than Government agencies as they may deem appropriate in the respective foreign areas, but shall, to such extent and in such order of priority as they may deem feasible, afford the following persons appropriate opportunity to purchase surplus property:

(i) Veterans, including members of the armed forces.

(ii) The following institutions, for use in foreign areas: (a) Nonprofit institutions as defined in § 308.1, and (b) non-profit educational and charitable institutions organized under the laws of a foreign country which are directly supported in whole or in part through use of funds derived from taxation by the United States, its Territories or possessions or which are certified by the appropriate diplomatic mission as being supported in whole or in part from funds derived from the United States.

(iii) American manufacturers or distributors, with regard to surplus property bearing their name or trade-mark, for use or disposal in foreign areas or for importation into the United States for the purpose of reconditioning for re-export.

(iv) Foreign governments for the areas in which the surplus property is located.

Although the Office of the Foreign Liquidation Commissioner should make reasonable efforts to apprise such persons of any opportunity afforded them to purchase surplus property, it shall be the primary responsibility of such persons to make their requirements known to the Office of the Foreign Liquidation Commissioner.

(c) Consideration in general. Surplus property may be disposed of for cash, credit, other property, for foreign currencies or credits, substantial benefits or the discharge of claims.

(d) Money payments-(1) Government agencies. Transfers to Government agencies shall be made at the fair value of the property as fixed by the Office of the Foreign Liquidation Commissioner and payment shall be made by transfer of United States dollar funds or by reduction of appropriation unless transfer without reimbursement or transfer of funds is otherwise authorized by law.

(2) Other than Government agencies. (i) Money payments for surplus property located in foreign areas shall be made in dollars, either in cash or on credit terms, unless specific authorization to accept local currencies has been given by the Treasury Department prior to January 15, 1946, or unless payment is made as provided in paragraph (d)(2)(ii) of this section. It shall be the responsibility of the Office of the Foreign Liquidation Commissioner to obtain as large an immediate payment in dollars as possible, insofar as this can be done without unduly reducing the total proceeds and, where dollar credit is required, the Office of the Foreign Liquidation Commissioner shall determine the terms under which it will be extended. Any authorization to accept foreign currencies made by the Treasury Department prior to January 15, 1946, shall continue in effect until changed by the Office of the Foreign Liquidation Commissioner.

(ii) Where it appears to the Office of the Foreign Liquidation Commissioner that adherence to the policy of obtaining immediate or deferred payment in dollars, or of accepting foreign currencies only in accordance with the specific authorization as set forth in paragraph (d)(2)(i) of this section, is likely to cause costly delay in the disposal of surplus property, the Office of the Foreign Liquidation Commissioner may accept foreign currencies, with or without exchange guaranties or conversion agreements, in such amounts and under such conditions as are deemed appropriate by the Office of the Foreign Liquidation Commission

er, in consultation with the Treasury Department. An estimate of the value, expressed in dollars, of such foreign currencies shall be inserted in the final official record of these sales of surplus goods. Such acceptance of foreign currencies is authorized only for the purpose of disposing of surplus property which at the time of sale is in the general area where the sale is made, and, wherever practicable, an effort should be made to obtain appropriate exchange guarantees and conversion agreements.

(iii) Nothing in this section shall be deemed to affect the procedures to be established by the Secretary of the Treasury with regard to the administration of foreign currencies or credits acquired by the Office of the Foreign Liquidation Commissioner.

(e) Disposition for other considerations (1) Disposal of surplus property for claims. Any claim against the Government of the United States, which any U.S. Government agency is legally authorized to settle or compromise, may be discharged by disposal of surplus property upon certification by such agency of the amount due in settlement or compromise thereof. Whenever appropriated funds are available for the settlement or compromise of such claims, reimbursement from such appropriation will be required in the amount so certified.

(2) Disposal of surplus property for other property, property rights or substantial benefits. Surplus property may be exchanged for other property, real or personal, tangible or intangible, or for other substantial benefits, where this course of action is determined by the Office of the Foreign Liquidation Commissioner to be in the best interests of the Government of the United States. The property, rights, or benefits thus acquired may be disposed of by sale or by transfers authorized by law, including transfers to Government agencies authorized to acquire such property and having appropriations which can be charged with the value of the property so transferred. Where surplus property is exchanged for property, rights or benefits which are not appropriate for sale or transfer, the Department of State will be the custodian of the doc

uments evidencing such property, rights or benefits and will be charged with the responsibility for any governmental negotiations incident to the protection, enforcement or continuance of such property, rights or benefits.

(f) Customs duties and taxes. When making any agreements with foreign governments relating to the disposal of surplus property, the Office of the Foreign Liquidation Commissioner shall, where necessary, seek appropriate arrangements with foreign governments to assure that no customs duties, taxes or other similar charges are leveled upon sale of surplus property which are discriminatory or prevent the sale of surpluses at fair prices to the United States Government; and that no duties, taxes or similar charges will be levied upon surplus property prior to its sale by the Office of the Foreign Liquidation Commissioner or upon sales for export from country of sale. Where surplus property is to be disposed of without any agreement between the Office of the Foreign Liquidation Commissioner and a foreign government, the Department of State or its foreign diplomatic or consular missions shall negotiate, where necessary, such arrangements with the foreign government.

§ 133.17 Care and handling.

Owning agencies shall continue to be responsible for care and handling of surplus property located in foreign areas and for such other surplus property as may come into their possession. The War and Navy Departments shall assume responsibility for care and handling of property declared surplus by owning agencies whose activities in foreign areas are discontinued.

§ 133.18 Contractor inventories.

Owning agencies are empowered to authorize any contractor with such agency or any subcontractor thereunder to retain or to dispose of contractor inventories located in foreign areas at the fair value thereof. In making any such authorization, owning agencies shall consult with the Office of the Foreign Liquidation Commissioner and shall obtain the approval of the