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FPCD-77-75 1 (1977-08-26)

handle is hein.gao/gaobaacqu0001 and id is 1 raw text is: 




                                                                   LM103580


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                         UNITED STATES GENEPAL ACCOUNTING OFFICE
                                  INTERNATIONkL DIVISION
          O                           FAR EAS- BRANCH
                           PRINCE JONAH KUHIO KALAIIANAOLE FEDERAL BU.IILDING
CDG ALA MOAftA BOULEVARD
%HONOLULU. HAWAII 96813
NAUG 2 G 1977
C)
           The Honorable Leonard Unger
           American Ambassador
           U.S. Etrbassy
           Taipei., Taiwan

           Dear Mr. Ambassador:

               We have completed a survey of the merchandise control system
           administered by the U.S. Embassy in Taipei, Taiwan. The system is
           designed to control the importation, use, and disposal of duty-free
           commodities (personal vehicles, other personal property, and liquor)
           by U.S. Embassy and attached agency personnel in Taiwan. We found
           that the Embassy's management controls on vehicle and other personal
           property sales and on gifts and liquor sales could be improved.
           Taipei E-bassy officials were briefed on our observations and they
           generally agreed that the controls should be improved.

               The sale of personal property, particularly motor vehicles,
           abroad by American eiployees has heen criticized by members of Congress
           and the General Accounting Office because of profits that sellers have
           realized on the transa:tions. ProfiL-taking on sales of this kind is
           viewed as diminishing the stature of the American mission, damaging
           the United States imaze abroad, and resultingc ii undue personal
           advantage under circu7stances created in substantial part by reason
           of official Government service to which special customs and import
           privileges are attazhed.

               In a September 3, 1974, letter to Representative H. R. Gross
          we reported on the ad7-inistrative procedures of the U.S. Embassy, Lima,
          Peru, relating to sales of personal property where profits on such sales
          by U.S. Government employees were permitted. Sc~e of the same weaknesses
          we noted there exist at the U.S. Embassy, Taipei, Taiwan.

          ACCURATE REPORTING OF PERSONAL
          PROPERTY SALES IS NOT ASSURED

               The U.S. Embassy, Taipei, Taiwan, did not have a system for
           verifying or followinc up sales of personal property and the disposition
           of profits on such sales to assure :hat they were accurately reported
           and the profits nroperly distribute-.




                                                                    FPCD-77-75





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