TRANSMITTAL MEMORANDUM TO HEADS OF DEPARTMENTS, AGENCIES AND OTHERS CONCERNED FROM DAVID PARSKEY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79M00467A003100030017-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 11
• Document Creation Date: December 16, 2016
• Document Release Date: June 3, 2005
• Sequence Number: 17
• Publication Date: April 30, 1976
• Content Type: MEMO

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DEPARTMENT OF THE TREASURY.
OFFICE OF THE FISCAL ASSISTANT SECRETARY
WASHINGTON, D. C. 20220
Transmittal Memorandum
Treasury Department Circular No. 577
First Revision
To: Heads of Departments, Agencies and Others Concerned:
Nos.229 and 229-1).
APR ' 1976
The purpose of this memorandum is to transmit the First Revision
of Treasury Department Circular No. 577.
Section numbering in Circular 577 has been amended to reflect the
CFR numbering system. Section 261.3, herein, has been amended to reflect
the still applicable portion of the now revoked section 2 of Circular 576
(31 CFR Part 260) and sections 261.7 and 261.8 herein have been amended
to reflect the Fiscal Service Reorganization (Treasury Department Orders
Attachment
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txecutlve Regl.try
Room 7-9-13
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REGULATIONS GOVERNING CLAIMS FOR REPLACEMENT OF VALUABLES,
OR THE VALUE THEREOF, SHIPPED PURSUANT TO THE
GOVERNMENT LOSSES. IN SHIPMENT ACT
1976
Department Circular No. 577 Department of the Treasury
(First Revision) Office of the Secretary
Washington, D. C. 20220
Fiscal Service
Bureau of Government Financial Operations
TO THE HEADS OF DEPARTMENTS, AGENCIES AND OTHERS CONCERNED:
The following regulations were published in the Federal Register
on May 12, 1976 , with minor variations in form:
TITLE 31 - MONEY AND FINANCE: TREASURY
CHAPTER II - FISCAL SERVICE
DEPARTMENT OF THE TREASURY
SUBCHAPTER A - BUREAU OF GOVERNMENT FINANCIAL OPERATIONS
PART 261 - CLAIMS FOR REPLACEMENT OF VALUABLES, OR
THE VALUE THEREOF, SHIPPED PURSUANT TO THE
GOVERNMENT LOSSES IN SHIPMENT ACT.
Department Circular No. 577 (First Revision)
Part 261, Subchapter A, Chapter II of Title 31 of the Code of Federal
Regulations (also appearing as Treasury Department Circular No. 577 and
Supplements) is hereby revised to read as follows:
PART 261 - CLAIMS PURSUANT TO THE GOVERNMENT LOSSES IN SHIPMENT ACT.
Sec. .
261.1 Scope of Regulations
261.2 Definitions
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261.3 Shipping Procedure
261.4 Preparation of Shipment
261.5 Record of Shipment
261.6 Advice of Shipment
261.7 Report of Loss, Destruction or Damage
261.8 Claim for Replacement
261.9 Proof of Claim
261.10 Recoveries
Authority: The provisions of this Part 261 issued under section 6, 50 Stat.
480; 40 U.S.C. 728.
S261.1 Scope of Regulations
This Part governs the reporting of loss or destruction of, or damage
to, valuables shipped pursuant to section 1 of the Government Losses in
Shipment Act (hereafter the "Act") (40 U.S.C. 721) and proof of claim for
replacement under section 3 of the Act (40 U.S.C. 723) by executive
departments, independent establishments, agencies, wholly owned corpora-
tions, officers and employees of the United States, and Federal Reserve
banks when acting on behalf of the United States or agencies thereof
(hereafter "consignors"). Failure by any consignor or agent or employee
thereof to comply with these regulations may delay recoveries, preclude
reimbursement from the fund for the payment of Government losses in
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shipment (hereafter the "Fund") or other relief under the Act, and render
the consignor responsible for any loss occurring through such failure.
S261.2 Definitions
(a) The term "valuables" means any articles or things or represen-
tatives of value in which the United States has any interest, or in con-
nection with which it has any obligation or responsibility, direct or
indirect, and which have been declared to be valuables by the Secretary
of the Treasury (hereafter "Secretary") pursuant to the Act, as listed
in section 262.1 of this title.
(b) The term "shipment" means the transportation, or the effecting
of transportation, of valuables, without limitation as to the means or
facilities used or by which the transportation is effected or the per-
son to whom it is made, and includes, but is not limited to, shipments
made to any executive department, independent establishment, agency,
wholly or partly owned corporation, officer, or employee of the United
States, or any person acting on his or its behalf or at his or its
direction.
(c) The term "replacement" means payment, reimbursement, replace-
ment, or duplication or the expenses incident thereto.
(d) The term "carrier" means any person, corporation, or other
entity which effectuates the shipment for consignors of valuables.
S261.3 Shipping Procedure
Shipments of valuables shall be made so as to provide the greatest
possible protection against risk of loss and destruction of, and damage
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to, valuables, in accordance with requirements prescribed by the con-
signors after notice to the Secretary.
S261.4 Preparation of Shipment
Each shipment shall be inspected and verified by two responsible
employees of a consignor before final preparation (i.e., before sealing,
locking, etc.) for delivery to the carrier. The shipment shall be
finally prepared for delivery in the presence of the two employees and
before leaving their immediate control. If strict compliance herewith
is impossible or impracticable, administrative officers of the consignor
shall make adequate provision, through the establishment of accounting
controls or otherwise, for the maintenance of basic records which will
enable them to prove, to the satisfaction of the Secretary, the extent
of loss, destruction, or damage in connection with a claim against the
Fund. The requirements of this section shall apply irrespective of the
carrier or method of transportation employed in making shipments.
S261.5 Record of Shipment
(a) A record of each shipment shall be maintained by the consignor.
The record shall include: (1) the name and address of the consignee
designated to receive the shipment; (2) a complete description of the
contents of the shipment (if the shipment is made up of securities, the
record shall be maintained by issue, series, denomination and serial
number, and a description of any coupons attached to such securities at
the time of shipment); (3) the face or par value of the shipment in the
case of securities, currency, etc., or the replacement value in the case
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of other valuables; (4) the registry number or the lock and rotary numbers,
if any, under which shipped; (5) the number of the registry receipt, or
other receipt of the carrier; (6) the date and hour of delivery to the
carrier; (7) a record. of the signatures of the consignor's employees who
verified the contents of the package and witnessed its sealing; (8) a,
record of the signature(s) of the consignor's employee(s) who thereafter
had custody of the package until it was delivered at the post office for
registration or deposited with the post office or other carrier for ship-
ment; and (9) the name of the carrier.
(b) The consignor shall also preserve, until assured that shipment
has been completed and no claims action will be initiated, all registry
receipts or other carriers' receipts, and other documents incidental to
the shipments.
S261.6 Advice of Shipment
(a) If the value of any one shipment to one consignee at one time
by one consignor, except in the case of any intracity shipment or the
shipment of registered securities by registered mail, equals or exceeds
$10,000, immediate notice thereof shall be forwarded by the consignor
to the consignee by separate mail. Such notice shall include: (1) a
complete record of the contents of the shipment; (2) the method of trans-
portation employed and the name of the carrier; and (3) the date of
delivery to such carrier.
(b) The consignee shall arrange that: (1) the shipment, when
received, be opened and inspected by one or more responsible employees;
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(2) immediate advice of any difference between the amounts or quantity
indicated in the notice by the consignor to the consignee and in the
shipment when opened be forwarded to the consignor; (3) the consignor
and the post office, or office of other carrier through which delivery
would be made, be notified immediately in the event of the failure of
the shipment to arrive in due course; (4) the consignor be advised
immediately concerning any damage to the shipment; and (5) all findings
of the consignee in such cases be made a matter of record subject to
the inspection of the Secretary or other Government officer, in con-
nection with any necessary investigation.
S261.7 Report of Loss, Destruction or Damage
(a) If a consignor receives notice that loss or.destruction of,
or damage to, valuables shipped in accordance with the Act has occurred,
an immediate written report shall be forwarded by the consignor to the
Secretary, to the attention of the Bureau of Government Financial Opera-
tions, Division of Finance and Management Information, Washington, D. C.
20226. If the loss, destruction or damage represents a value equal to,
or in excess of, $10,000, or if delay in reporting is likely to delay
the Government in recovering such valuables, the report shall be trans-
mitted by wire and promptly confirmed in writing.
(b) The report shall state: (1) the date of shipment; (2) the
amount and character of the valuables lost, destroyed, or damaged;
(3) the name and address of the consignee; (4) the method of transpor-
tation, the name of the carrier, and the location of the office of the
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carrier from which shipment was made; (5) the registry or other receipt
number; and (6) the cause of the loss, destruction or damage, if known.
(c) The consignor shall immediately report the loss, destruction or
damage to the agent in charge of the nearest United States Secret Service
office, and to the local post office or local office of other carrier.
The consignor shall also place a tracer on the shipment and take such
other action as may be necessary to facilitate recovery.
S261.8 Claim for Replacement
Claim for replacement shall be made in writing to the Secretary, to
the attention of the Bureau of Government Financial Operations, Division
of Finance and Management Information, Washington, D. C. 20226, and shall
be supported by "Proof of Claim" pursuant to S261.9. The claim, accom-
panied by a recommendation regarding the manner of replacement, shall be
submitted through the head, of the consignor concerned, or his designee.
The manner of replacement shall be determined by the Secretary in accord-
ance with section 3 of the Act, i.e., by replacement out of the Fund or
by a credit in the accounts of the claimant.
S261.9 Proof of Claim
The Secretary will require proof of claim in such form, and in such
manner, as he deems necessary. Proof of claim will include satisfactory
proof of shipment and satisfactory proof of loss, destruction or damage.
The claim shall be supported by the original "record of shipment" required
pursuant to S261.5, which will be returned after adjustment of the claim.
The consignor shall submit a statement concerning the loss or destruction
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of, or damage to, the shipment or any part thereof, If the shipment has
been received by the consignee with contents not intact, such statement
shall set forth all the circumstances relating to the condition in which
the shipment was received and the manner of inspection and verification
of its contents. Affidavits covering the loss, destruction or damage to
the shipment shall be obtained from the consignee and the carrier. The
consignor shall submit the statement and recommendations of the investi-
gating officers.
5261.10 Recoveries
If relief is granted, the consignor shall take all necessary and
reasonable steps to recover the lost, destroyed or damaged valuables, or
their value. All recoveries and repayments, in connection with valuables
for which replacement has been made out of the Fund, shall be forwarded.
to the Secretary for credit to the Fund.
Date: APR 3 0
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REGULATIONS GOVERNING THE SHIPMENT OF VALUABLES PURSUANT TO THE
"GOVERNMENT LOSSES IN SHIPMENT ACT"
Department of the Treasury
Office of the Secretary
Washington, D. C. 20220
1976
Department Circular No. 576
Post Office Department Circular No. REG 1
(Rescission)
Fiscal Service
Bureau of Government Financial Operations
RR
,q76
TO HEADS OF DEPARTMENTS, AGENCIES AND OTHERS CONCERNED:
Treasury Department Circular No. 576, dated July 16, 1937, is hereby
revoked.
The regulations promulgated pursuant to Treasury Department Circular
No. 576 (31 CFR Part 260) have previously been revoked. The revocation
was published in the Federal Register on July 10, 1973, and corrected on
August 20, 1973, (38 FR 18372, 38 FR 22373).
Shipping procedures heretofore covered by section 2 of Department
Circular 576 (31 CFR 260.2) are restated in section 2 of Department
Circular 577 First Revision (31 CFR 261
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LI UNCLASSIFIED CONFIDENTIAL I I SECRET
EXECUTIVE SECRETARIAT
Routing Slip
ACTION
INFO
DATE
INITIAL
1
DC1
2
DDCI
3
D/DCI/IC
4
S/MC
5
DDS&T
6
DDI
7
DDA
8
DDO
9
D/DCI/NI
10
GC
11
LC
12
IG
13
Compt
14
D/Pers
15
D/S
16
DTR
17
Asst/ DCI
1'8
AO/DCI
19
C/IPS
20
21
22
25X1
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