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B-179530 1 (1973-12-14)

handle is hein.gao/gaobaadsf0001 and id is 1 raw text is: 49 .tl , .;A COMPTROLI9M GE14CRAL OF THE UNITED STATES WASdW N TOH, D.C. 48 1-479530 December 14, 1973 The Honorable The Becretuy of Agriculture Dear Hr. Sortary, - By letter dated August 20, 1973, the Acting Secretary of Ac-ricultura- request'd our views an to whether the Comodity Credit Corporation (CCC)... and the Agsncy for Intrnationsl Development (AID) may pay certain overland freight chargea under certain unusual circuzmtancas, Ia have diseuaead thit matter with members of your staff and of AID's Food Xor Peace staff. Tho Mting Secretary advises that historically CCC has shipped cargo donated to UUA to Jordan through the ports of Deirut, Lebanon and Aqaba, Jordan vith the latter receiving the najor portion of the shipmte,t rom those ports the cargo i tranoported overland to Mman, JordeA, iVwich is a key distribution point. CCC under .the provisions of 7 U.SC. 17.23, absotbed the ocean transportation costs involved in the nvoent of tha donatod commodities from Uited States ports to Aqaba and Deo4rut and over- land trauneportation costs from oirut a'.roes Lebanon to points o entry in Jordan, whoa U eA elcted such routhsp, w re paid by UHRWA. The Actinig Secretary states that this systetaworkst veil until hoa- tiflttea in the area cauted the closiar. of the Sue Canal, Sinc. thl , moveaent of cargo by sea to Jordan has been beaat by zany problcus, twat of which aro.the direct result of th loug voyage around tbseCape of Good )ope. Proviowaly, the voyage from the UnLted Ltats to Aqaba via the CanLl required betweon 21 and 27 days; currently, around the Cape, the trip t.kea between 45 and 60 days. Also, sinc a 'voyage to Beirut takes approxi=mtoly 14 dayy, a minaw of 31 days would be *aved in steaming tire ova the Aqaba route,' With the increased tine en route, tha food and %dible grain cargoee are subject to a greater risk of inf arAton, spoilage and othar kinds of damage reeulting in increased costs to th mGovernment. In addition, the l.onger voyage entails r-h higher fraight weots on cargo shipped vholly by sea to Aqaba. Usiug current oces freight raeas, your Department has deteri.ued that if U the tomage vhicl t UIWA asked CCC to ship to Aqaba during fi s year 1973 bid instead bern.:dalivered to Beirut, CCC vould ha ( .Ctlc~i ver(or' FrcC/.. BEST DCMETAVAILABLE U a

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