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B-198206 1 (1980-04-04)

handle is hein.gao/gaobadids0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION N. OF THE UNITED STATES WASHINGTON, D. C. 20548 FILE: B-19,8206 DAfE: April 4, 1980 MATTER OF: Project Stormfury-Aust a-Indemnification for Damages DIGEST: 1. State Department proposes to agree to indemnify Australia for damages arising from a hurricane seeding cooperative agreement, subject to the appropriation of funds by Congress for that specific purpose. This violates the spirit, if not the letter, of the Anti -deficiency Act. Even though Congress is not legally compelled to make the appropriations, it would be morally committed and has little choice, particularly in view of the effect on foreign relations. This is what we term a coercive deficiency. 2. The Congress, in the context of a supplemental appropriation bill, may give a Federal agency con- tract authority to assume liability for damages arising out of an international cooperative agree- ment. However, procedurally, this could be subject to objection as substantive legislation in an appropriation bill. 3. GenerAl statutory authority to carry out inter- national programs does not necessarily carry with it authority to agree to settle foreign claims against the United States. 4. Payment by the United States of a portion of in- surance premiums, to protect Australia against financial liability in a joint project, is permis- sible when it is a condition which Australia exacts in return for its participation. Agreement should provide that the United States assumes no liability beyond the amount of insurance coverage.

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