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B-138942 1 (1978-10-26)

handle is hein.gao/gaobadotv0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE 8 5 WASHINGTON, D.C. 20548 MN REPLY Gf NERAL COUNSEL REFER TO. B-138942 October 26, 1978 Norman J. Philion Executive Vice President Air Transport Association of America 1709 New York Avenue, N.W. Washington, D.C. 20006 Dear Mr. Phillon: This is in response to your letter dated August 10, 1978, in which you question whether certain air freight shipments were in compliance with section 5 of Pub. L. 93-623 (codified at 49 U.S.C. § 1517). You advised us that freight shipments financed by foreign military sales credits to Korea and Taiwan have been transported by foreign air carriers. Other products, financed through the Export-Import Bank of the United States, have also been transported by foreign air carriers. Pub. L. 93-623, at section 5, requires the use of U.S.-flag air carriers for U.S.-financed commercial foreign air transportation. One kind of U.S. financing described in section 5 is where the foreign air transportation is furnished: * * * to or for the account of any foreign nation, or any international agency, or other organization, of whatever nationality, without provisions for reimbursement * * * Our Office has previously held that section 5, does not require the use of U.S.-flag air carriers where the foreign air transportation is paid for out of funds which are later reimbursed by a foreign government, international agency, or other organization. B-138942, June 13, 1978. In light of this decision, the military shipments with which You are concerned need not be transported in U.S.-flag air carriers. The President is authorized by 22 U.S.C. § 2763 to finance the Procurement of defense articles and services through credit sales. The foreign countries purchasing the products are required to pay for them under the terms set out in the statute. Thus, where air freight shipments are financed by foreign military sales credits, section 5 of Pub. L. 93-623 would not require the use of UoS.-flag air carriers.

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