B-108436, SEP 9, 1952

B-108436: Sep 9, 1952

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DEMAND WAS MADE UPON THE CONTRACTOR FOR PAYMENT OF THE AMOUNTS FOUND TO BE DUE THE UNITED STATES AND IN REPLY THERETO THERE WAS RECEIVED A LETTER DATED JUNE 25. THAT IT IS IMPOSSIBLE FOR THAT COMPANY TO OBTAIN UNITED STATES CURRENCY AND REQUESTING ADVICE AS TO THE METHOD BY WHICH IT CAN PAY IN LOCAL CURRENCY THE SUM OF $100 EVERY THREE MONTHS AT THE INDICATED CONVERSION RATE. THE FOREGOING MATTER WAS DISCUSSED INFORMALLY WITH REPRESENTATIVES OF YOUR OFFICE AT WHICH TIME IT WAS LEARNED THAT THE DEPARTMENT OF THE ARMY HAS AN UNDERSTANDING OR AGREEMENT WITH THE JAPANESE GOVERNMENT UNDER WHICH THE DEPARTMENT OF THE ARMY WILL NOT REMOVE LOCAL CURRENCY FROM THAT COUNTRY. IT WAS INDICATED. THAT POSSIBLY AN EXCEPTION COULD BE MADE IN THE INSTANT MATTER DUE TO THE FACT THAT A RELATIVELY SMALL AMOUNT OF MONEY IS INVOLVED.

B-108436, SEP 9, 1952

PRECIS-UNAVAILABLE

GENERAL SAWYER, DEPARTMENT OF THE ARMY:

BY THIRD ENDORSEMENT DATED DECEMBER 29, 1951 (FINEY 167/28271, LETTER OF TRANSMITTAL #35), LIEUTENANT COLONEL J. L. ROBINSON, F. C., ASSISTANT, RECEIPTS & DISBURSING DIVISION, REPORTED NISSIN KOGYO COMPANY, LTD., TO BE INDEBTED TO THE UNITED STATES IN THE AMOUNT OF $4,694.53, ARISING OUT OF THE DEBTOR'S DEFAULT UNDER CONTRACT NO. DA-92 502-FEC-713, DATED AUGUST 18, 1950. THIS OFFICE DETERMINED THE FOREGOING INDEBTEDNESS TO BE IN THE AMOUNT OF $4,836.99, CONSISTING OF EXCESS COSTS IN THE AMOUNT OF $3,806.25 AND LIQUIDATED DAMAGES IN THE AMOUNT OF $1,030.74. AGAINST THIS INDEBTEDNESS THERE HAS BEEN APPLIED THE SUM OF $2,093.75, COLLECTED ON VOUCHER NO. 1094 IN THE JULY, 1951, ACCOUNTS OF LIEUTENANT COLONEL O. A. COLEMAN, F. C., AND THE SUM OF $875, COLLECTED ON VOUCHER NO. 81605 IN THE MAY, 1951, ACCOUNTS OF COLONEL F. E. ENGER, F. C., LEAVING A BALANCE OF $1,868.24 DUE THE UNITED STATES.

ALSO, BY THIRD ENDORSEMENT DATED MARCH 19, 1952 (FINEY 167/32852 LETTER OF TRANSMITTAL #336), MR. G. W. CURTIS, ASSISTANT, RECEIPTS AND DISBURSING DIVISION, REPORTED THE SAME CONTRACTOR TO BE INDEBTED TO THE UNITED STATES IN THE SUM OF $1,066, BY REASON OF DEFAULT UNDER P. O. 822-51 (QM 35-51).

BY LETTER DATED MAY 20, 1952, DEMAND WAS MADE UPON THE CONTRACTOR FOR PAYMENT OF THE AMOUNTS FOUND TO BE DUE THE UNITED STATES AND IN REPLY THERETO THERE WAS RECEIVED A LETTER DATED JUNE 25, 1952 (PHOTOSTATIC COPY ENCLOSED), FROM THE DEBTOR, INDICATING ITS INTENTION OF PAYING THE AMOUNT DUE BUT STATING, AMONG OTHER THINGS, THAT IT IS IMPOSSIBLE FOR THAT COMPANY TO OBTAIN UNITED STATES CURRENCY AND REQUESTING ADVICE AS TO THE METHOD BY WHICH IT CAN PAY IN LOCAL CURRENCY THE SUM OF $100 EVERY THREE MONTHS AT THE INDICATED CONVERSION RATE.

THE FOREGOING MATTER WAS DISCUSSED INFORMALLY WITH REPRESENTATIVES OF YOUR OFFICE AT WHICH TIME IT WAS LEARNED THAT THE DEPARTMENT OF THE ARMY HAS AN UNDERSTANDING OR AGREEMENT WITH THE JAPANESE GOVERNMENT UNDER WHICH THE DEPARTMENT OF THE ARMY WILL NOT REMOVE LOCAL CURRENCY FROM THAT COUNTRY. IT WAS INDICATED, HOWEVER, THAT POSSIBLY AN EXCEPTION COULD BE MADE IN THE INSTANT MATTER DUE TO THE FACT THAT A RELATIVELY SMALL AMOUNT OF MONEY IS INVOLVED.

IT APPEARS THAT THE ONLY PROCEDURE AVAILABLE BY WHICH THE COMPANY MAY LIQUIDATE ITS INDEBTEDNESS TO THE UNITED STATES IS TO HAVE THE DEBTOR DEPOSIT LOCAL CURRENCY WITH A DESIGNATED FINANCE OFFICER OF THE ARMY IN TOKIO, THE SAID OFFICER TO THEN DRAW HIS CHECK TO THE ORDER OF THE TREASURER OF THE UNITED STATES, PAYABLE FROM APPROPRIATED FUNDS, AND TO TRANSMIT THE SAME TO YOUR OFFICE FOR DEPOSIT OF THE PROCEEDS THEREOF. WILL BE APPRECIATED IF YOU WILL ADVISE THIS OFFICE WHETHER THE INDICATED PROCEDURE MEETS WITH YOUR APPROVAL AND, IF SO, THAT THE NAME AND ADDRESS OF THE APPROPRIATE FINANCE OFFICER BE FURNISHED. THIS WILL ENABLE THIS OFFICE TO ADVISE THE DEBTOR RESPECTING PAYMENT.