foreign donations programs - PDF, 101 mb - usaid

BARTER OPERATIONS emergency stockpile needs had been met, the barter program
was reviewed in 1962 by the Executive Stockpile
Title III of Public Law 480 and the Commodity Credit
Committee.
phasis toward This use of group the program recommended in meeting a shift the in overemseas pocure e of oernmen ne Fr
Corporation Charter Act both contain authority to barteragrculura
cmmoitis fr god an sevics po-seas procurement needs of Government agencies. From
ter agricultural commodities for goods and services pro- 1963, the barter program has emphasized the use of U.S.
cured abroad by U.S. Government agencies and for agricultural commodities to procure materials, goods and
foreign-produced strategic materials for stockpiling,
Barter contracts between the Commodity Credit Cor-
services for U.S. Government agencies which in turn
reimburse CCC in dollars for the value of such procureporation
of the Department of Agriculture and private
U.S. firms provide for the acquisition and export by U.S.
firms of agricultural commodities and for the delivery in
return to the U.S. Government of materials, goods, or
services. These contracts provide that the agricultural
ments.
Consistent with the recommendations of the Executive
Stockpile Committee, which were approved by the President,
barter procurement to meet the needs of Government
agencies increased to a new high of $163.9 million
commodities may be exported only to certain eligible in 1965, more than $50 million above the 1964 level.
foreign countries; that such commodities may not be Procurements for the Department of Defense and the
transshipped or re-exported; that barter contractors Agency for International Development, which have ma­
must provide financial coverage in cash or letters of jor offshore purchase programs, are conducted under
credit for agricultural commodities acquired before stra- procedures developed jointly by the U.S. Department of
tegic materials or goods or services are delivered and Agriculture and the procuring agencies.
that at least 50 percent of the ocean-shipping carrying In 1965, barter procurements for the Department of
strategic materials imported into the United States and Defense were valued at $112.1 million. Among the
items delivered abroad for U.S. Government agencies various supplies and services procured for Department of
must be on privately-owned U.S.-flag vessels.
Defense overseas installations in Europe and Asia were
Before 1963, barter transactions were used primarily PX supplies, lockers, base maintenance services, lumber,
to acquire foreign-produced strategic materials for Gov- and transportation and stevedoring services.
ernment stockpiles. Because many of the Government's Procurements for AID in 1965 were valued at $51.8
Grain being loaded at the port of Baf~ti-isacnsttneipoer
more for shipment overseas as part of a
P.L. 480 barter transaction. U.S. farm
products were shipped to 63 countries
during 1965 under barter provisions of
P.L. 480. Barter transactions are used
primarily to meet the overseas procurement
needs of the U.S. Departmentof Defense
and the Agency for International
Development.
million. They included cement, petroleum products,
fertilizer, and sugar. Much of this material was delivered
to Vietnam. Most items procured for AID under barter
transactions are those for which the United States
is a consistent net importer.
Barter procurements for federal agencies have contributed
substantially to improvement of the U.S. balance
of payments position by using agricultural exports
for purchases which otherwise would have resulted in
overseas expenditures of dollars.
Uer plicies f s
Under policies in effect since 1963, barter fdr strategic
materials may be done only to fill unmet stockpile objec­
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