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B-148581 1 (1973-04-26)

handle is hein.gao/gaobabkim0001 and id is 1 raw text is: * RESTRECYED - Not to be released outside the / Accoutng Office except on the basis of specific a by the Offce of Congressional Relations, a record 55 which i s kept by the Distribution Section uN1 , VAXfch A S COMPTROLLER GENERAL OF T--blnmO' nv / REL[J[ DWASHINGTON D.C. 2054e3 .... RELEA E , .B-148581 APR 2 61973 The Honorable William Proxmire United States Senate L Dear Senator Proxmire: As a re, sult of your request of November 9, 1972, we have looked into gasoline prices at miitnaiyhasen k in awa. You based your request on a complaint by the American Feder- ation of Government Employees (AFGE), Okinawa Local No. 1678. After receiving your request, we a vised your staff that we do not have authority for reviewin nonappropriated-fund activities and that, consequently, w are. not in' a position to examine the Okinawa Regional Exchange's pricing practices. We did agree to obtain data regarding the income from petro- leum operations received and managed by the U.S. Civil Admin- istrator for the Ryukyu Islands (USCAR). BACKGROUND Between 1957 and 1972, the United States, in accordance with the Treaty of Peace-with Japan and Executive Order 10713, exercised legislative, administrative, and judicial power over the Ryukyu Islands through a Civil Administrator. The Admin- istrator was to promote and encourage self-government, to assist the people in achieving a viable economy, and to en- courage improvement in the standard of living on the Islands. The High Commissioner (who also was the Commanding General of the U.S. Army, Ryukyu Islands) directed the functions of the Office of the Civil Administrator. Although the peace treaty with Japan gave the Commissioner extensive powers, his decisions and actions were expected to be sensitive to local views and political considerations. He also had to constantly consider the continuing policy of the United States to afford the Ryukyuan people an nsef seif-,o9gvoxnment without impairing the effectiveness of our Ryukyuan military bases. Congressional appropriations and earnings from USCAR's corporate and business activities provided financial support for the USCAR operation. One of the USCAR's business activi- ties was the d .p.t,pe 9,l .!mp.otu s. Under

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