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B-115791-O.M. 1 (1953-09-03)

handle is hein.gao/gaobadqvh0001 and id is 1 raw text is: 
                      .EINERAL ACCOUNTING OFFICE
                                WASHINGTON 25

DIVISION oF AUDITS                                         jIJ I 15





             In t'e adtof the ion- uaatee aetivitie   of LD ne Aatri1
        irocur   n Ag ey, carie  out t a' u @he operatin icities of
        G nra 5r~vce  A    instrto, a question has arisen as to the utor-
        ety,   ne existn   la, of the Agency to g aanee an puoiic or oni-
        vate fis   icigistttona     nst loss on any loan mae- seah fin-
        iug institution for the uroe of c nigroductive capacity.
             atoity for faclt     tin te finanin  of ooctien and oroduc-
        heon aoy r      etd to the ~a~n1J2ue is r       died in itle iII
        of tuehse       r cinAct of 1) , proe$ptsns 3, I0,
        61 stat, 30.   xctieOer021of ~aut23, 11, cretd
        efneVtnasPcueetP                   nyad deintd it as a ;1aate
        er agny      nc secton jO1 ec the teiense        A~ eucinXct of i9  .

            It aoeas that lonsaeuoi A         o be      urnte Ju uhrty
        ci section 301, -ense i'outou Act of 1      ~ae iited to toe
           e     idn prxn       oital for surr out Qrdcin, iraat or-
        itj for finacn    xason of orodatiree capciy zj~ant nu,
        irticina  i n, or n      rnaex~t ioo Is cnaie    n cstion 302 of
        the >efene  ordcin tot of 19 0 s a> nd  wih fctoinaebeen
        deeated br Sacton 310 of xcive Orar 106,  S anded byection
        3,01 of xeuieOdr102831,         sgct  8, 1951, to the c% ontractien
        D enue Corortuon,
             ±hie there a~s been fond thu in the l!gslai sto
        oleac-iy ctsIoa4n the Qogssina intent in the natr, i.t    sbee
           no~ tat the ~rst A    £as >rt of the Activetis of 8 e Jin Coe-
        mittee on efeeero    tion  (Suae £ oet e0, 32dC eoress,  t
        ~Ssion) contin  a staten by G nea Services O        nitrateon cf its
        olcy a or     'antein loans for xpansion of oacty as foleas:
             lt is lso recognihed t the ru  ire produotion cc
             in ie teols onunot be occaiuce Aithoat f  ties exanion
             in th £   try, 1hcxoeaore   thiose cases ahere  lie £ational
             r uion     uooneyincad suit      h e oan n il aid the
             na~tior a ef e,~ this \dexes tratiou +iie  to tu ent nec-
                siino          ai I ~scao         ~nr~~no           ~~e

        ouever, i  a sa   en      atied cy i r-. . i. .;s o~c of &over-
        nors, ederat esrye Scyst~,  o the ~oe of  er s ut ires Ciitrcee

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