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certain criteria within the class of agencies which are eligible to receive surplus Government property. The criteria at least one of which the agencies must meet are (1) such agency is licensed by a State standard-setting agency; (2) such agency receives funds through a State or local community fund or similar federated fund-raising body; or (3) such agency is affiliated with or is part of, a national standard-setting organization.

While the broadening of the donation program to cover additional agencies may add delays and difficulties to the ultimate disposal of surplus property it will not impede the determination of Department of Defense excess property nor the disposition of such property by the Department of Defense. It should be pointed out that the continued addition of eligible donees as proposed by this bill will open the disposal program to real possibilities of abuse and impair the benefits accruing to present eligible donees.

The responsibility for making determinations as to recipients of surplus property and the authority to dispose of the property are placed in agencies outside the Department of Defense. The Department of the Navy, therefore, on behalf of the Department of Defense, neither favors nor opposes enactment of H. R. 9522. The Department of the Navy has been advised by the Bureau of the Budget that there is no objection to the submission of this report on H. R. 9522 to the Congress.

Sincerely yours,

E. C. STEPHAN,
Rear Admiral, United States Navy,

Chief of Legislative Liaison
(For the Secretary of the Navy).

Hon. WILLIAM L. DAWSON,

DEPARTMENT OF THE NAVY,

OFFICE OF THE SECRETARY, Washington, D. C., July 1, 1958.

Chairman, Committee on Government Operations,

House of Representatives, Washington, D. C.

DEAR MR. CHAIRMAN: Your request for comment on the bills, H. R. 10010 and H. R. 10118, 85th Congress, to amend the Federal Property and Administrative Services Act of 1949 to authorize the disposal of certain surplus property to public health agencies of a State, its political subdivisions and instrumentalities has been referred to this Department by the Secretary of Defense for the preparation of a report thereon expressing the views of the Department of Defense.

The purpose of the bills is twofold. Primarily, they are designed to include public health agencies of any State or of a State political subdivision or instrumentality in the group of recipients of donations of surplus property under paragraph 3 of subsection 203 (j) of the act. At present, this group is composed of tax-supported and other nonprofit medical institutions, hospitals, schools, and the like, of the various States. Secondarily, they are designed to define the term "public health" so that it will include sanitation activities generally, and to define the term "public health agencies of any State or of any political subdivision or instrumentality thereof" so that it will include malaria, mosquito and insect control districts, and sanitary and drainage districts.

The responsibilities for making determinations as to recipients of surplus property under paragraph 3 of subsection 203 (j) of the act and the authority to provide for the donation of surplus property to such recipients are placed in agencies outside the Department of Defense. The Department of the Navy, therefore, on behalf of the Department of Defense, defers to the views of those other agencies. In this connection, it is noted that the Senate Government Operations Committee in its report on H. R. 7227, 84th Congress (S. Rept. 2267, 84th Cong.) recommended against further extension of the classes of donees beyond those civil-defense organizations provided for in H. R. 7227.

This report has been coordinated within the Department of Defense in accordance with the procedures prescribed by the Secretary of Defense.

The Bureau of the Budget has advised that there is no objection to the submission of this report.

Sincerely yours,

JOHN S. MCCAIN, Jr.,
Captain, United States Navy,

Chief of Legislative Liaison
(For the Secretary of the Navy.)

EXHIBIT 9-REPLY FROM THE DEPARTMENT OF THE TREASURY
UNITED STATES TREASURY DEPARTMENT,
Washington, D. C., September 23, 1957.

Hon WILLIAM L. DAWSON,

Chairman, Committee on Government Operations.

MY DEAR MR. CHAIRMAN: Reference is made to the request of your committee for the views of the Treasury Department on H. R. 6537, "To authorize the disposition of certain obsolete and excess property to the United States Volunteer Life Saving Corps."

The purpose of the bill is to authorize the Secretaries of the Army and Navy to sell obsolete or excess material to the United States Volunteer Life Saving Corps. The bill would also authorize the Secretary of the Navy and the Commandant of the Coast Guard to sell or give such material to the corps.

The United States Volunteer Life Saving Corps is a nonprofit group with the mission of rendering assistance to disabled craft and responding to all general calls for help. The corps has been in existence since 1870.

Section 641 (a) of title 14, United States Code, provides :

"The Commandant subject to applicable regulations under the Federal Property and Administrative Services Act of 1949, as amended, may dispose of, with or without charge, to the sea-scout service of the Boy Scouts of America, to any incorporated unit of the Coast Guard Auxiliary, and to any public body or private organization not organized for profit having an interest therein for historical or other special reasons, such obsolete or other material as may not be needed for the Coast Guard."

It is the view of the Treasury Department that the subsection quoted authorizes the Commandant, United States Coast Guard, to transfer obsolete or excess material, with or without charge, to the United States Volunteer Life Saving Corps. It follows that the comparable provision in H. R. 6537 is unnecessary. Therefore, the Treasury Department opposes the enactment of the provision designated (4) in H. R. 6537.

The Department has no comment on the merits of the other provisions of the bill.

The Department has been advised by the Bureau of the Budget that there is no objection to the submission of this report to your committee.

Very truly yours,

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DAVID W. KENDALL, Acting Secretary of the Treasury.

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