MUTUAL SECURITY AGENCY AMENDMENT 1 (PUBLISHED ON JAN. 22, 1953) TO MSA REGULATION 1

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00423R000200090002-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 15, 2016
• Document Release Date: June 18, 2001
• Sequence Number: 2
• Publication Date: January 22, 1953
• Content Type: OPEN

pprove For Rlease 2003/10/22 :CIA-RDP83-004238000200090002-8
MU1UAL
"'o /- !
SECURITY
AGENCY
AMENDMENT 1
(Published on Jan. 22, 1953)
to
MSA REGULATION 1
USAID declassification & release instructions on file
MUTUAL NSEECUURRIITY AGENCY
Approved For Release 2003/10/22: CIA-RDP83-00423R0y00Z00 0900QZ 825, D. C.
 TITLE 22-FORErt-'IbrI&I~o2Agla? alg l# sF>i1Qi9r42 noRrm0a1>Zyl~~qwo3o?e 8 (I) The date be-
Chapter It--Mutual Security Agency
[MSA Reg. 1, as issued on Dec. 30, 1951,
Amdt. 11
PART 201-PROCEDURES FOR FURNISHING
ASSISTANCE TO PARTICIPATING COUNTRIES
MISCELLANEOUS AMENDMENTS
MSA Regulation 1 is amended in the
following respects:
1. Section 201.3 is amended to read as
follows:
? 201.3 Dollar allotments, procure-
ment authorization applications and pro-
curement authorizations-(a) Dollar al-
lotments and procurement authorization
applications. MSA will determine from
time to time an amount of dollars to be
made available as dollar allotments to
each participating country for the pur-
chase of commodities and services. From
time to time thereafter, the participating
country will, on the basis of the available
allotments made by MSA, indicate on
procurement authorization applications
the dollar amounts of the commodities
and services which the country desires to
procure with its allotted funds. Two
copies of each procurement authoriza-
tion application filed with MSA, Wash-
ington, D. C., will simultaneously be
filed with the MSA Mission to the par-
ticipating country. Supplementary in-
formation with respect to procurement
authorization applications may be re-
quired from time to time.
(b) Procurement authorizations. (1)
MSA will review each procurement au-
thorization application to determine that
the proposed purchases of commodities
and services for delivery to the partici-
pating country are in accordance with
the objectives of .the laws under which
aid to the participating country is au-
thorized. Upon such a determination,
MSA will, as soon as practicable, issue
appropriate procurement authorizations.
These procurement authorizations will
cover the commodities and services for
the purchase of which the participating
country may make sub-authorizations to
importers, and will specify the maximum
dollar amounts which MSA will finance,
the source from which the commodities
and services (other than ocean transpor-
tation) are to be obtained, the periods
during which contracts and/or deliveries
are to be made, and any other provisions
deemed necessary by MSA. Each pro-
curement authorization will bear a pro-
curement authorization number, and the
issuance of a procurement authorization
will constitute authority to the partici-
pating country to sub-authorize its im-
porters to use the procurement authori-
zation number in placing orders for the
purchase of the commodities and serv-
ices specified in the procurement au-
thorization to be delivered to the
participating country. Participating
countries may request MSA to make
changes in procurement authorizations
where deemed necessary or proper.
(2) Procurement authorization num-
bers will indicate the participating coun-
try to which the authorization Is given,
the commodity code number, the source
from which the commodity or services
An example of a procurement authori- fore which deliveries may not be made
zation number is as follows: (initial delivery date), and (ii) the date
38
010
00
8001
Participating
country
Commodity code
Source
Serial
No.
France -----------
Bread grains--.-
U. S---.
--------
(c) Commodity codes. Procurement
authorization applications will be made
in terms of the MSA Commodity Codes
which are listed in the official MSA Com-
modity Code Book, as revised July . 1,
1952, or in subsequent revisions. Au-
thorization will normally be made in the
same commodity codes, but in certain
instances the procurement authoriza-
tion may be restricted to one or more
commodities within a commodity code.
2. Section 201.5 is amended to read as
follows:
? 201.5 Contracts and deliveries eli-
gible for financing under procurement
authorizations--(a) Commodity and
services procurement authorizations-
(1) Contracts. (I) Contracts for the
purchase of commodities and services
will not be eligible for financing under a
procurement authorization If made prior
to the date of issuance, or in the event
that an initial contracting date is speci-
fied, if made prior to the specified date.
(ii) Procurement authorizations will
indicate, in addition to an initial con-
tracting date, a contract cut-off date.
The contract cut-off date will normally
be three to six months subsequent to
the first day of the month following the
month in which the procurement au-
thorization is issued. In making sub-au-
thorizations to importers, the participat-
ing country must specify that contracts
under the sub-authorizations must be
made on or before the contract cut-off
date. Contracts made after the contract
cut-off date will not be eligible for
financing under the procurement au-
thorization unless deliveries under. such
contracts are made within the delivery
period specified on the procurement au-
thorization (see subparagraph (3) of this
paragraph).
(2) Reporting. The participating
country shall, in accordance with in=
structions issued by MSA, report within
30 days after the contract cut-off date the
total or estimated total value of all con-
tracts entered into pursuant to sub-
authorizations made under the procure-
ment authorization, whether or not
deliveries have actually been made. If
the total or estimated total value of such
contracts, as so reported, is less than the
total dollar amount of the procurement
authorization, the procurement authori-
zation will be reduced by the amount of
the difference. If no such report is filed
by the participating country within 3()
days after the contract cut-off date, MSA
will assume that the .procurement au-
thorization has been fully sub-authorized
and contracted for, and no reduction in
the procurement authorization will be
made.
(3) Deliveries. Each procurement au-
thorization will also state a delivery
period. The period will be indicated
on or before which deliveries must be
made (terminal delivery date). Where,
however, an initial delivery date 'is not
specified, the date of issuance of the pro-
curement authorization shall be deemed
to be the initial delivery date. Deliver-
ies made before the initial delivery date
or after the terminal delivery date will
not be eligible for MSA financing under
the procurement authorization. MSA
may extend the terminal delivery date
for limited periods on an individual con-
tract basis, if the contract was made on
or before the contract cut-off date.
(b) Submission of documentation of
delivery. In the case of reimbursement
by letter of commitment to a bank, the
submission of documentation shall be in
accordance with ? 201.16 (c) (2). In
the case of other types of reimburse-
ment, proper documentation of deliver-
ies, in accordance with ? 201.19, must be
presented to the Controller, MSA, Wash-
ington, D. C., within 90 days after the
latest date on which deliveries may take
place under the procurement authoriza-
tion.
(c) Ocean transportation procure-
ment authorizations. Ocean transpor-
tation procurement authorizations will
not be subject to the provisions of para-
graphs (a) and (b) of this section, but
will be subject to the following provi-
sions :
(1) Deliveries. (1) Delivery of ocean
transportation services may be ,made at
any time on or after the initial delivery
date and on or before the terminal de-
livery date specified on the procurement
authorization.
(ii) The date of delivery of ocean
transportation services shall be deemed
to be the date of the relative bill of
lading, or airway bill, or the cablegram
alternatively submitted under section
201.19.
(2) Submission of documentation of
delivery. In the case of reimbursement
by letter of commitment to a bank, the
submission of documentation shall be in
accordance with ? 201.16 (c) (2). In
the case of other types of reimburse-
ment, proper documentation in accord.
ance with ? 201.19 (b) must be presented
to the Controller, MSA, Washington,
D. C., within 90 days after the date of
the bill of lading covering ocean ship-
ment.
(d) Ships' dollar disbursement pro-
curement authorizations. Ships' dollar
disbursement procurement authoriza-
tions will not be subject to the provisions
of paragraphs (a), (b) and (c) of this
section, but will be subject to the follow-
ing provisions:
(1) Deliveries. (1) Delivery of com-
modities and services included within
ships' dollar disbursements may be made
at any time on or after the Initial de-
livery date and on or before the terminal
delivery date specified. on the procure-
ment authorization.
(ii) The date of delivery of such com-
modities and services shall be deemed to
be the date of the vessel's departure from
the last dollar port of call prior to return
to the participating country.
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 (2) Submission ApprdWQAegi i$Ple i,2 iiJP/pA? & RWO?a R z3Rp~;0gQ~Q o~;1n authorized rep-
Proper documentation in accordance
with ? 201.19 (e) must be presented to
the Controller, MSA, Washington, D. C.,
within 120 days after the date of delivery
as defined in subparagraph (1) of this
paragraph.
3a. Section 201.6 (h) (1) (1) is de-
leted. Section 201.6 (h) (1) (ii) is re-
numbered ? 201.6 (h) (1) (i) and is
amended to read as follows:
(I) Placed by the importer (or by the
supplier or any other person if author-
ized so to do by the importer in a cable,
written document, or the letter of credit),
and authorized in the subauthorizatiQn;
and
b. Section 201.6 (h) (1) (iii) is re-
numbered ? 201.6 (h) (1) (ii).
4. The last sentence of ? 201.7 (c) (1)
(iii) is amended to read as follows:
"Amounts earned for dispatch shall be
credited first against demurrage, if any,
incurred in connection with the same
voyage; the balance, supported by the
vessel's signed laytime statement(s),
shall then be refunded to the Controller,
MSA, Washington, D. C., within 90 days
after date of discharge of the cargo on
which dispatch was earned."
5. Section 201.16 (c) (8) is amended to
read as follows:
(8) In the event that the banking in-
stitution shall file with MSA a certifi-
cate as specified in the third paragraph
of ? 201.19 (a) (3), or a modified certifi-
cate as permitted in ? 201.23 (o), it shall
be repaid and reimbursed by the Direc-
tor for the costs, expenses and liabilities
paid or incurred by it subsequent to the
receipt by MSA of the certificate, a's a
result either of its following instructions
received from the Director, or of its con-
tinued holding of documents pending the
receipt of such instructions.
6. The second sentence of ? 201.17 (b)
is amended to read as follows: "If a
notice of assignment is sent to the Di-
rector and the Department of the Treas-
ury under the Assignment of Claims Act
of 1940, as amended, such notice shall
not be effective unless the date and fact
of such notice is indicated on the letter
of commitment."
7. The third paragraph of ? 201.19 (a)
(3) is amended to read as follows:
In the case of any commodity shipped
from the continental United States (ex-
cluding Alaska) and financed under a
letter of commitment to a banking in-
stitution in the United States, MSA will
accept in lieu of the documents referred
to in the two preceding paragraphs, a
certificate from the banking institution
to the effect that it has been informed
by the approved applicant or supplier
that the sale is on an f. o. b. or f. a. s.
basis and it is impracticable to furnish
an ocean or charter party bill of lading,
airway bill or parcel post receipt, and
that either:
(I) The banking institution has re-
ceived a common carrier bill of lading,
warehouse receipt, mate's receipt, mas-
ter's receipt, dock receipt or domestic
parcel post receipt (if in non-negotiable
a person or organization designated by as follows:
the approved applicant) ; it has deliv.e
ered or sent the same, in accordance with
the instructions of the approved appli-
cant, to a person or organization desig-
nated by the approved applicant; and
it has in its possession a'written under-
taking of such person or organization
(a) to arrange for ocean shipment and
to deliver to the banking institution
a copy (or photostat) of the ocean or
charter party bill of lading, airway bill,
or parcel post receipt for forwarding to
MSA, or (b) if unable to arrange for
ocean shipment within 90 days of the
date of the undertaking, to so notify
the Controller, MSA, Washington, D. C.,
and at such time as MSA may request,
to deliver to the banking institution
for forwarding to MSA, a common car-
rier bill of lading or warehouse receipt
in negotiable form for the commodity; or
(ii) The banking institution has re-
ceived a common carrier-bill of lading or
warehouse receipt in negotiable form,
and is in possession of the same; it ,has
been unable to deliver the same to a
person or organization designated by the
approved applicant against the written
undertaking described in subdivision (i)
of this subparagraph; and it is holding
the negotiable common carrier bill of
lading or negotiable warehouse receipt
subject to the instructions of MSA, and
will forward same to MSA when, and if
so instructed, except that if it becomes
possible before any such instructions are
received, it will proceed in accordance
with subdivision (I) of this subpara-
graph.
8. The second paragraph of ? 201.19
(a) (4) Is amended to read as.follows:
Unless the procurement authorization
requires as an additional document for
reimbursement a certificate of growth or
origin, or unless shipment is made from
a country wholly or partly in Europe
which is authorized as an area of source
on the procurement authorization, the
following signed certificate shall be en-
dorsed on, or attached to, "the copy (or
photostat) of supplier's invoice:
The undersigned certifies that the com-
modity invoiced was not originally shipped
from a country wholly or partly in Europe,
in the form, or substantially in the form,
supplied by the undersigned.
9. Section 201.19 (a) (5) is amended
to read as follows:
(5) Such additional or substitute
documentation as may be required for
reimbursement by endorsement upon the
procurement authorization or letter of
commitment, if any.
10. Section 201.19 (b) (6) is amended
to read as follows:
(6) Such additional or substitute
documentation as may be required for
reimbursement by endorsement upon the
procurement authorization or letter of
commitment, if any.
11. Section 201.19 (c) (5) is amended
to read as follows:
The undersigned certifies that (I) the
services for which reimbursement is re-
quested have been satisfactorily rendered;
(ii) the costs thereof are properly reimburs-
able, and the fees earned, in accordance with
the terms of the contract; and (iii) any
reports or recommendations required under
the terms of the contract have been received.
12. Section 201.19 (c) (6) is amended
to read as follows:
(6) Such additional or substitute
documentation as may be required for
reimbursement by endorsement upon the
procurement authorization or letter of
commitment, if any.
13. The beginning paragraph and
paragraph (1) of the supplier's certifi-
cate (Form MSA-280) set forth in
? 201.19 (d) are amended to read as
follows:
The supplier hereby acknowledges notice
that the sum indicated on the accompanying
invoice as claimed to be due and owing
under the terms of the underlying contract,
is to be paid out of funds made available by
the United States under the Mutual Security
Act, as amended, and further certifies and
agrees with the Director as follows:
(1) The supplier is entitled under. said
contract to the payment of the claimed sum,
and he will promptly make' appropriate re-
fund to the Director, in the event of his
non-performance, in whole or in part, under
said contract, or for any breach by him of
the terms of this certificate.
14. A new paragraph (4) is added at
the end of ? 201.19 (d) to read as fol-
lows :
(4) Normally, only the original of the
Supiilier's Certificate (Form MSA-280)
should be signed; if for any reason,
copies other than the original need to
be signed, they should be clearly marked
'?Duplicate" after the signature.
15. Section 201.19 (e) (5) is amended
to read as follows:
(5) Such additional or substitute doc-
umentation as may be required for re-
imbursement by endorsement upon the
procurement authorization or letter of
commitment, if any.
16. Section 201.20 is amended to read
as follows:
? 201.20 Procurement by United States
Government agencies. When procure-
ment ot a commodity or service is made
through Unitqd States Government pro-
curement facilities in accordance with
1 201.10, arrangements will be made for
the reimbursement of the procuring
department, agency or establishment by
MSA.
17. The first paragraph of ? 201.22 (d)
(4) (1) (b) is amended to read as follows:
(b) Purchases from sources other than
United States: A price for a purchase of
a petroleum product from sources other
than the United States will be approved
for reimbursement if it complies' with
the. requirements of ? 201.21 and of para-
graph (e) (2) of this section, and, unless
from a supply area excepted by MBA,
does not exceed the lowest competitive
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 market price in the' e9 i s iY t['l t AjqStl/tfiEy a& AA taFii"e-09n 2 gr09 qRg 00;an-k will continue to
comparable export sale of the same or a
similar commodity on the date the pur-
chase price is fixed.
18. The second paragraph (including
table), beginning "Provided," of ? 201.22
(d) (4) (1) (b), and ? 201.22 (d) (4)
(i) (c) are ;deleted. Section 201.22 (d)
(4) (1) (d) is renumbered ? 201.22 (d)
(4) (1) (c).
19. Section 201.23 (d) Is amended to
read as follows:
(d) Section 201.5 (a) (3), (c) (1) and
(d) (1) permit delivery under a procure-
ment authorization at any time on or
after the initial delivery date and on or
before the terminal delivery date speci-
fied on the procurement authorization.
If any of the documents specified in
? 201.19 (a) (3), (b) (4), (c) (3), Ji (e)
(2) (or in the procurement authorization
or letter of commitment) are dated at
any time within the period during which
delivery is permissible under the above
subsections, or any other period per-
letter of commitment will specify a ma- the instructions of MSA, except that if it
turity date not later 'than 30 days subse- becomes possible before any such instruc-
quent to the end of such periods. tions are received, the bank will deliver
20. Paragraph (o) is added to ? 201.23
to read as follows:
(o) Bank unable to deliver or send
non-negotiable document to forwarding
agent under ? 201.19 (a) (3). The right
of reimbursement for payment made by
a bank under a Letter of Commitment
will not be affected by the fact that the
bank is unable to deliver or send a non-
negotiable shipping document or receipt
to the designated person as contemplated
by ? 201.19 (a) (3) (1), if the bank is
prevented from doing so because of any
action by the United States Government
or other causes beyond its control. In
such case, the bank's certificate may be
altered accordingly, and may state that
the bank does not have a written under-
taking from the designated person, but
the certificate may not be altered in any
or send such document to the designated
person.
Transitory provision. This amend-
ment to MSA Regulation 1 will take
effect on January 22, 1953, but will not
be applicable to claims for reimburse-
ment for payments made to a supplier
pursuant to letters of credit issued, con-
firmed or advised, or payment instruc-
tions received, prior to January 22, 1953,
(Sec. 104, 62 Stat. 138, as amended, sec. 502,
Pub. Law 165, 82d Cong.; 22 U. S. C. 1503.
Interprets or applies sec. 503, Pub. Law 165,
82d Cong.)
C. TYLER WOOD,
Acting Director for Mutual Security.
[F. It. Doe. 53-716; Filed, Jan. 21, 1953;.
8:56 a. M.]
GPO 53-4{067
MUTUAL, SECURITY AGENCY
WASHINGTON 25, O. C.
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