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impair the benefits presently accruing to educational and public health activities. This view also accords with the recommendations of the Hoover Commission. * * *"

This Department desires to take this opportunity to point out that it opposes making certain supplies capitalized under working-capital funds available for donation without reimbursement. Such opposition was noted in connection with the consideration of H. R. 3322 which was subsequently enacted as Public Law 61 of the 84th Congress.

In view of the foregoing, the Department of the Navy, on behalf of the De partment of Defense does not favor the enactment of H. R. 5451.

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

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. 5451 to the
Congress.
Sincerely yours,

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

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

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DEPARTMENT OF THE NAVY,

OFFICE OF THE SECRETARY,

Washington, D.O., June 27, 1958.
Hon. WILLIAM L. DAWSON,
Chairman, Committee on Government Operations,

House of Representatives, Washington, D.O.
MY DEAR MR. CHAIRMAN : Your request for comment on H. R. 4107 and H. R.
6316, bills to amend the Federal Property and Administrative Services Act of
1949 to permit the donation of surplus property to volunteer fire-fighting organiza-
tions, volunteer reserve services, squads, and first-aid crews, 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 H. R. 4107 and H. R. 6316 is to amend the Federal Property and Administrative Services Act of 1949 to include volunteer fire-fighting organizations, volunteer reserve services, squads, and first-aid crews within the class of agencies which are eligible to receive surplus Government property.

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 prop erty 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. 4107 and H. R. 6316.

H. R. 4107 and H. R. 6316, appear to be technically incorrect in that the amendments to subsection 203 (J) (1) and (J) (2) do not take into consideration the amendments made to those subsections by the act of July 3, 1956 (70 Stat. 493, ch. 513; 40 U. S. C. 484 (J) (1) and (2)). Sections 3 and 4 of the bill also appear to be incorrect in the reference to subsection 203 (M) and (N).

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

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 to the Congress.
Sincerely yours,

R. Y. MCELROY,
Captain, United States Navy,
Deputy Director, Legislative Liaison

(For the Secretary of the Navy).

DEPARTMENT ON THE NAVY,

OFFICE OF THE SECRETARY,

Washington, D.O., September 25, 1957. Hon. WILLIAM L, DAWSON, Chairman, Committee on Government Operations,

House of Representatives, Washington, D.O. MY DEAR MR. CHAIRMAN: Your request for comment on the bill (H. R. 6537) to authorize the disposition of certain obsolete and excess property to the United States Volunteer Life Saving Corps, has been assigned to this Department by the Secretary of Defense for preparation of a report thereon expressing the views of the Department of Defense.

H. R. 6537 has as its purpose the transfer from the several components of the Armed Forces to the United States Volunteer Life Saving Corps of material that is variously described as "obsolete or excess," obsolete material not needed for naval purposes," material that may be spared” and “other material as may Dot be needed.”

The United States Volunteer Life Saving Corps is, according to information available, a nonprofit organization that has been in existence since 1870. Its primary function is to render assistance to disabled craft upon call.

The procedure established by the bill for the transfer of property by the Secretaries of the Departments and by the Commandant of the Coast Guard lacks uniformity, although there is no apparent reason to differentiate between the various services in this respect. There is, moreover, no indication as to the reason for authorizing action on the departmental level in the case of the Army, Navy, and Air Force and for authorizing action on the command level in the case of the Coast Guard. Lack of uniformity in these elements would render the act very cumbersome to administer.

As noted, the bill defines to material to which it applies in various terms. The disposal of Government property is a highly technical subject which has necessitated the adoption and use of certain statutory terms of art. In the bill such words of art as "excess" are used with less technical phrases as “other material that may be spared.” This choice of language could lend to ambiguous construction of the terms of the bill.

The Federal Property and Administrative Services Act of 1949 (40 U. S. C., sec. 486) provides standard procedures for the disposal of Government property. It is suggested that if the purpose of H. R. 6537 were to be implemented, it should be done under, or in consonance with, the general statutory provisions on the subject of property disposal.

In view of the foregoing, and without expressing any opinion on the merits of the bill, the Department of the Navy, on behalf of the Department of Defense, recommends that it not be enacted in its present form.

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

The Bureau of the iget has advised that there is no objection to the submission of this report on H. R. 6537 to the Congress. Sincerely yours,

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

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

DEPARTMENT OF THE NAVY,
OFFICE OF THE SECRETARY,

Washington, D.O.
Hon. WILLIAM L. DAWSON,
Chairman, Committee on Government Operations,

House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN : Your request for comment on H. R. 9522, a bill to amend the Federal Property and Administrative Services Act of 1949 to authorize the disposal of surplus property to certain welfare agencies, has been referred to this Department by the Secretary of Defense for the preparation of a report expressing the views of the Department of Defense.

The purpose of H. R. 9522 is to amend the Federal Property and Administrative Services Act of 1949 to include welfare or recreation agencies which meet 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).

DEPARTMENT OF THE NAVY,

OFFICE OF THE SECRETARY,

Washington, D. C., July 1, 1958. Hon. WILLIAM L. DAWSON, Chairman, Committee on Government Operations,

House of Representatives, Washington, D.O. 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 prorerty 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 inc'ude 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, aud 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,

DAVID W. KENDALL,

Acting Secretary of the Treasury. Х

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