FOREIGN EXCESS PROPERTY HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON GOVERNMENT OPERATIONS EIGHTY-SIXTH CONGRESS SECOND SESSION ON H.R.9996 A BILL TO AMEND SECTION 402 OF THE FEDERAL PROP- 53267 MARCH 1, 1960 Printed for the use of the Committee on Government Operations THE LIBRARY OF THE MAY 2 1960 UNIVERSITY OF ILLINOIS UNITED STATES WASHINGTON: 1960 9272170 CONTENTS Davis, Robert, Director of Legislation, Office of the Administrator, General Services Administration__. Kampelman, Max M., counsel, American Association of Surplus Prop- King, Joseph T., representing the Associated Equipment Distributors Mullins, George, Assistant Chief, Office of Management and Organi- Rey, Lt. Col. John F., Chief, Surplus Disposal Branch, Office of the Assistant Secretary for Supply and Logistics, Department of Vinson, R. K., executive director, Machinery Dealers National Associa- tion, in behalf of Alex Zeeve, Jr., Alex Zeeve & Co., New York, N.Y. White, William A., Sr., Administrator, Business and Defense Services Administration, Department of Commerce; accompanied by Thomas E. Drumm, Jr., and William B. Bennett, Business and Defense Services Administration; Walter W. Schneider, Foreign Excess Property Officer; and Jonathan B. Rintels, Office of the Letters, statements, etc., submitted for the record by- Drumm, Thomas E., Jr., Business and Defense Services Administra- Foreign excess property (FEP) monthly program activity report, during December and cumulative January-December 1959 Letter from William A. White, Sr., Administrator, Business and Defense Services Administration, Department of Commerce, to Hon. William L. Dawson, March 29, 1960--- Manual of Administrative and Operating Instructions-Part II, Business and Defense Services Administration, Department of Attachment No. 1.-Memorandum of understanding and co- operation in program for the disposal of surplus personal property (as distinguished from real property). Attachment No. 2.-Policy governing the utilization screen- ing of excess personal property under the control of the Department of Defense, September 25, 1958 – – Attachment No. 3.-Fair value formula and condition codes applicable to excess and exchange-sale-type personal property within the Department of Defense, March 16, 1953.. Henderson, Elmer W., counsel, Executive and Legislative Reorganiza- tion Subcommittee: Excerpt from statement of Thomas E. Drumm, Indritz, Phineas, counsel, Executive and Legislative Reorganization Letters, statements, etc.-Continued King, Joseph T., representing the Associated Equipment Distributors: Excerpt from H.R. 9996_. Excerpt from statement of Mathew Hale, Acting Solicitor, De- Excerpt from the Federal Property and Administrative Services Letter from Joseph T. King, to Hon. William L. Dawson, March Suggested amendment to H.R. 9996. McKenrick, Robert P., executive vice president, Construction In- dustry Manufacturers Association, Chicago, Ill.: Excerpt from the Federal Property and Administrative Services Act of 1949, section 402_ Rey, Lt. Col. John F., Chief, Surplus Disposal Branch, Office of the Assistant Secretary for Supply and Logistics, Department of De- fense: Memorandum from Lt. Col. John F. Rey, to Elmer W. Rintels, Jonathan B., Office of the General Counsel, Department White, William A., Sr., Administrator, Business and Defense Services Administration, Department of Commerce: Appendix 1.-Letter from Frank Masterson, president, Industrial Fasteners Institute, Cleveland, Ohio, to Hon. William L. Dawson, March 9, 1960___ Appendix 2.-Letter from James F. Holden, assistant secretary, Willys Motors, Inc., Toledo, Ohio, to Hon. William L. Dawson, March 11, 1960- Appendix 3.-Letter from James J. Farriss, Washington, representative of Rex-Tex Equipment Corp., of Dallas, Tex., to Hon. William L. REVISING LEGISLATION ON THE IMPORTATION OF FOREIGN EXCESS PROPERTY TUESDAY, MARCH 1, 1960 HOUSE OF REPRESENTATIVES, EXECUTIVE AND LEGISLATIVE REORGANIZATION SUBCOMMITTEE OF THE COMMITTEE ON GOVERNMENT OPERATIONS, Washington, DC. The subcommittee met, pursuant to notice, at 10:05 a.m., in room 1501-B, New House Office Building, Hon. William L. Dawson (chairman) presiding. Members present: Representatives William L. Dawson (chairman), Dante B. Fascell, Neal Smith, Clarence J. Brown and Robert R. Barry. Staff members present: Elmer W. Henderson, counsel, Phineas Indritz, counsel, and Earle Wade, staff member. Also present: Lt. Col. John F. Rey, Chief, Surplus Disposal Branch, Office of the Assistant Secretary for Supply and Logistics, Department of Defense; Robert T. Davis and Robert Griffin, Federal Supply Service, General Services Administration. Chairman DAWSON. The subcommittee will kindly come to order. These hearings are being called to consider H.R. 9996, to revise present legislation dealing with the importation of foreign excess property. This, as you know, is property under the control of a Federal agency outside of the continental United States which is excess to its needs and which may be disposed of under the Federal Property and Administrative Services Act which originated with this committee. (H.R. 9996 follows:) [H.R. 9996, 86th Cong., 2d sess.] A BILL To amend section 402 of the Federal Property and Administrative Services Act of 1949, to prescribe procedures to insure that foreign excess property which is disposed of overseas will not be imported into the United States to the injury of the economy of this country Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 402 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 512) is amended to read as follows: "SEC. 402. Foreign excess property may be disposed of (a) by sale, exchange, lease, or transfer, for cash, credit, or other property, with or without warranty, and upon such other terms and conditions as the head of the executive agency concerned deems proper; but it shall be unlawful to import such property into the United States after such sale or other disposition if the Secretary of Agriculture (in the case of any agricultural commodity, food, or cotton or woolen goods) or the Secretary of Commerce (in the case of any other property) determines that the importation of such property would be injurious to the economy of this country, or (b) for foreign currencies or credits, or substantial benefits 1 |