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B-193687 1 (1979-08-22)

handle is hein.gao/gaobadhnm0001 and id is 1 raw text is: ///o THE COMPTROLLER GENERAL DiECiSION OF THE UNITED STATES ~ WAS HI NGTON, 0. C. 20548 FILE: B-193687 DATE: August 22, 1979 MATTER OF: NATOTIME Dry Cargo Charter Party DIGEST: Clause in NATOTIME agreement for charter hire of ships during wartime which provides that hire can be paid in advance is not barred by 31 U.S.C. § 529, the general advance payment prohibition, since agreement is for use as wartime contingency and there- fore would be within parameters of national emergency advance payment exception author- ized by 50 U.S.C. § 1431, et seq. (1976). The Assistant Secretary for Maritime Affairs, United States Department of Commerce, requests our advice whether the United States, as represented by the National Ship- elil ping Authority (NSA), may, in time of war and in accord- ----anc with arrangements made under the North Atlantic Treaty, pay harter hire in _dvance for ships allocated for use b Fe United States from -pool of North 0) Atla c Treaty Organization (NATO) flag shipping. We u erstand that NSA is a standby agency of the Department of Commerce. The Assistant Secretary for Maritime Affairs is the .U.S. member of the Planning Board for Ocean Shipping (Planning Board), a NATO civil emergency planning body established in 1950 by the North Atlantic Council, which has developed plans for wartime shipping operations. Upon outbreak of war, NATO member nations would assume control of the ships of their respective flags and form a pool from which ships would be assigned to work on the basis of the overall best interests of the NATO membership. A NATO civil/wartime agency, the Defense Shipping Authority (DSA), which is accountable to the North Atlantic Council, would manage this operation. DSA would establish a Freight Rates Committee, authorized to set freight rates for NATO flag ships in order to eliminate inequities in rate charges among the differing nations for t ame service. The Assistant Secretary -1 - - il

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