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093041 1 (1970-12-18)

handle is hein.gao/gaobacwxv0001 and id is 1 raw text is: VD S24 UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 INTERNATIONAL DIVISION DEC 18 1970 LM093041 B-167196 BEST DOCUMENT AVAILABLE Dear Mr. Tennant: We are presently inquiring in India into the AID Mission's procurement of Australian manufactured Holden automobiles. We are comparing the advantages and disadvantages that might result from buying either Indian-manufactured vehicles with U.S.-owned Indian rupees or U.S.-manufactured vehicles as alternatives to buying the Australian Holdens. A report resulting from this work will not be ready for sometime yet. The purpose of this letter is to bring to the Agency's attention a matter which we believe deserves early action because of recently enacted legislation affecting the statutory price limitation for passenger motor vehicles. On July 15, 1969, the AID Mission in India requested Washington's approval for the procurement of Australian passenger vehicles. The request was justified on the basis that equipment suitable to the rough road and climate conditions in India could not be obtained in the United States within the statutory price limitations. The Chevelle Sedan and Station Wagon, although found to be satisfactory in India, both exceeded the price limitations. The lower cost Chevy II, apparently available within the price limitation, was reported to be highly unsatisfactory in actual operation on Indian roads. On December 30, 1969, the U.S.-only source provision of section 636(i) of the Foreign Assistance Act of 1961, as amended, was waived by AID to permit the purchase abroad of right-hand drive motor vehicles by certain AID missions who required such vehicles because of local laws or the custom of driving on the left side of the road. At that time, the only right-hand drive passenger vehicle manufactured in the United States exceeded the statutory price limitation for passenger vehicle procurement by U.S. Government agencies. The need for vehicles with the right-hand drive feature was set forth as the primary justification for waiving the legislative provision for purchasing U.S.-manufactured vehicles.

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