Provisions of the Vessel Operations Revolving Fund as Established by the Third Supplemental Appropriations Act, 1951

B-105693: Oct 22, 1951

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This decision responds to a letter from the Secretary of Commerce requesting a decision to whether, and as of what date, receipts for charter hire may be credited to the Vessel Operations Revolving Fund established by the Third Supplemental Appropriation Act, 1951.

The provisions in the appropriation act for crediting the funds with receipts of vessel operating activities applies to receipts from vessel operating activities conducted thereunder. This the Congressional intent would appear to be that receipts from charters properly may be credited to the fund only if the chartered vessel is being operated in an activity conducted under the program for the financing which the find was established, as distinguished from a charter not connected with such activities, such as the charter of the so-called "Good Neighbor Fleet" operating to South America. With respect to the date as of which the charter hire receipts may be credited to the fund, it is noted that in the memorandum dated June 4, 1951, from the General Counsel, Maritime Administration, to the Budget Officer, Maritime Administration, a copy of which was forwarded to the Department of Commerce, it is proposed to deposit in the revolving fund all basic charter hire occurring on or after July 1, 1951 and all additional charter hire occurring on and after January 1, 1952. In view of the permissive language of the act, to the effect that the receptors heretofore and hereafter received from activities provided under the appropriation "may be transferred to and consolidated with this fund" and since it is indicated that it would be more desirable to do so, no objection will be raised by this Office to the depositing of the charter hire herein contemplated, on the basis proposed.