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B-194528 1 (1980-03-03)

handle is hein.gao/gaobadiay0001 and id is 1 raw text is: THiE COMPTROLLER GENERAL ~ / OF THE UNITED STATES WASH;NGTON, D. C. 20548 FILE: B-194528 DATE: March 3, 1980 MATTER OF: Applicability of Cargo Preference Act of 1954 to cash transfer program DIGEST:Z)4 O'40- General Accounting Office disagrees with Maritime Administration view that Ca o Preference Act of 1954 applies A 01 g to cash transfer program for Israel managed by Agency for International ,Development. The Assistant Secretary for Maritime Affairs of the United States Department of Commerce requests that we concur in an opinion issued by the General Counsel of the Maritime Administration (MarAd). The General Counsel has concluded that § 901(b)(1) of the Merchant Marine Act, 1936, as amended, 46 U.S.C. § 1241(b)(1) (1976) (Cargo Preference Act), applies to cash grants and cash transfer programs of the Agency for International Development (AID). In § 10(a) of the International Security Assist- ance Act of 1978, codified at 22 U.S.C.A. § 2346a (b)(2) (1979) (cash transfer program), Congress author- ized that, The total amount of funds allocated for Israel under this chapter for the fiscal year 1979 may be made available as'a cash transfer * * * provided that, in exercising that authority, * * the Presi- dent shall ensure that the level of cash transfers made to Israel does not cause an adverse impact on the total amount of nonmilitary exports from the United States to Israel. Furthermore, the statute provides that, not less than two-thirds of the assistance furnished to Israel . . . for the fiscal year 1979 shall be provided on a grant basis. 22 U.S.C.A. S 2346a(b)(3) (1979). The other third is distributed as loans. The cash transfer program represents a change in the method of distributina foreign aid to Israel. From 1972 to 1978, assistance was distributed to Israel under the Commodity Import Program (CIP). See c _L 7

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