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B-157985 1 (1972-07-18)

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                         WASHINGTON 0 C 20548
                           RELEASED

  B-157985                                       JUL 18 1972

  Dear Mr  Price

       In your letter dated February 3, 1972, you noted that
  the National Science Foundation (NSF) awarded several grants
  to educational institutions in Yugoslavia   Because of the
  U.S balance-of-payments deficit and the demand for funds
  among educational institutions in the United States, you re-
  quested that we examine into (1) the advisability of these
  grants, (2) why these grants had not been awarded to educa-
  tional institutions in the United States, and (3) who in NSF
  had responsibility for authorizing such grants to the foreign
  institutions.

      The National Science Foundation Act of 1950 (42 U.S.C.
 1861) authorizes and directs NSF to (1) initiate and support
 scientific research and programs to strengthen scientific re-
 search potential, (2) foster the interchange of scientific
 information among scientists in the United States and foreign
 countries, and (3) initiate and support specific scientific
 activities relating to international cooperation or national
 security by making contracts or other arrangements for con-
 ducting such scientific activities

      In addition, the act authorizes NSF to provide support,
 within the limits of available appropriations, to organiza-
 tions and individuals in the United States and foreign coun-
 tries for such scientific activities as NSF deems necessary
 to carry out the purposes of the act and to support specific
 scientific activities at the request of the Secretary of State
 or Secretary of Defense.

      NSF supports certain international activities through an-
 nual appropriation of U S -owned foreign currencies which the
 Department of the Treasury has determined to be excess to the
 normal requirements of the United States   The appropriation
 may be used for conducting research and for supporting scien-
 tific activities in foreign countries, including programs and
 projects of scientific cooperation between the United States
 and other countries   Foreign currency appropriations to NSF
 for fiscal years 1971 and 1972 totaled $5 million   NSF's



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