B-130592, FEB. 20, 1957

B-130592: Feb 20, 1957

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BEFORE INSTRUCTIONS ARE ISSUED TO THE U.S. INDICATES THAT THE CURRENCY WAS ORIGINALLY MADE AVAILABLE TO THE UNITED STATES AS AN ADVANCE BY THE GREEK GOVERNMENT FOR THE PAYMENT OF ADMINISTRATIVE EXPENSES INCURRED UNDER THE PROVISIONS OF THE ACT OF MAY 22. IT IS REPORTED THE CURRENCY WAS UNDER THE ADMINISTRATIVE CONTROL OF THE EXECUTIVE OFFICE OF THE PRESIDENT AND SUBSEQUENTLY TRANSFERRED TO THE CONTROL OF THE DEPARTMENT OF STATE. IT IS FURTHER REPORTED THAT THE TREASURY DEPARTMENT MAINTAINS CUSTODY OF THE CURRENCY PURSUANT TO EXECUTIVE ORDER NO. 10488. IT APPEARS FROM THE CORRESPONDENCE ATTACHED TO THE ASSISTANT SECRETARY'S LETTER THAT THE DEPARTMENT OF STATE IS OF THE OPINION THAT. BY REASON OF THE PAYMENT FROM APPROPRIATED FUNDS OF ADMINISTRATIVE EXPENSES GREATLY IN EXCESS OF THE AMOUNT INVOLVED WHICH WERE ELIGIBLE FOR.

B-130592, FEB. 20, 1957

TO THE SECRETARY OF THE TREASURY:

ON FEBRUARY 1, 1957, THE FISCAL ASSISTANT SECRETARY TRANSMITTED FOR OUR CONSIDERATION COPIES OF LETTERS DATED JUNE 2, 1955, DECEMBER 14, 1956, AND JANUARY 4, 1957, EXCHANGED BETWEEN THE DEPARTMENT OF STATE AND THE TREASURY DEPARTMENT, CONCERNING THE RECOMMENDATION OF THE DEPARTMENT OF STATE TO DISPOSE OF 5,477,007.45 GREEK DRACHMAE (EQUIVALENT TO APPROXIMATELY $182,500) HELD BY THE TREASURY IN TRUST FOREIGN TRANSACTION ACCOUNT "20FT890 ADVANCE PAYMENTS FROM GREECE AND TURKEY FOR ASSISTANCE.'

THE ASSISTANT SECRETARY REQUESTS OUR CONCURRENCE, BEFORE INSTRUCTIONS ARE ISSUED TO THE U.S. DISBURSING OFFICER, AMERICAN EMBASSY, ATHENS, IN A PROPOSED PROCEDURE WHICH CONTEMPLATES THE SALE OF THE GREEK DRACHMAE TO DEPARTMENTS AND AGENCIES OF THE UNITED STATES GOVERNMENT FOR THEIR DISBURSEMENTS IN GREECE AND DEPOSIT OF THE DOLLAR PROCEEDS INTO MISCELLANEOUS RECEIPTS OF THE TREASURY.

THE LETTER OF FEBRUARY 1, 1957, INDICATES THAT THE CURRENCY WAS ORIGINALLY MADE AVAILABLE TO THE UNITED STATES AS AN ADVANCE BY THE GREEK GOVERNMENT FOR THE PAYMENT OF ADMINISTRATIVE EXPENSES INCURRED UNDER THE PROVISIONS OF THE ACT OF MAY 22, 1947 (61 STAT. 103), PROVIDING FOR ASSISTANCE TO GREECE AND TURKEY. IT IS REPORTED THE CURRENCY WAS UNDER THE ADMINISTRATIVE CONTROL OF THE EXECUTIVE OFFICE OF THE PRESIDENT AND SUBSEQUENTLY TRANSFERRED TO THE CONTROL OF THE DEPARTMENT OF STATE. IT IS FURTHER REPORTED THAT THE TREASURY DEPARTMENT MAINTAINS CUSTODY OF THE CURRENCY PURSUANT TO EXECUTIVE ORDER NO. 10488, DATED SEPTEMBER 23, 1953.

IT APPEARS FROM THE CORRESPONDENCE ATTACHED TO THE ASSISTANT SECRETARY'S LETTER THAT THE DEPARTMENT OF STATE IS OF THE OPINION THAT, BY REASON OF THE PAYMENT FROM APPROPRIATED FUNDS OF ADMINISTRATIVE EXPENSES GREATLY IN EXCESS OF THE AMOUNT INVOLVED WHICH WERE ELIGIBLE FOR, AND COULD HAVE BEEN PAID FROM, THE DRACHMAE FUND, THIS CURRENCY IS IN FACT THE PROPERTY OF THE UNITED STATES AND THAT THE GOVERNMENT OF GREECE HAS NO CLAIM TO ANY PART THEREOF. WE NOTE FURTHER THAT SINCE DECEMBER 1, 1953, THERE HAS BEEN LITTLE ACTIVITY IN THIS ACCOUNT AND THAT A BALANCE OF 5,477,007.45 GREEK DRACHMAE REMAINED IN THE ACCOUNT AS OF NOVEMBER 15, 1956. IT IS STATED THAT THERE ARE PRESENTLY NO KNOWN OBLIGATIONS OUTSTANDING AGAINST THIS BALANCE. THE STATE DEPARTMENT SUGGESTS THAT SHOULD ANY FURTHER PROPERLY ALLOWABLE CLAIM BE MADE AGAINST THIS ACCOUNT, AN ADJUSTMENT VOUCHER COULD BE PROCESSED TO RECOVER THE FUNDS FROM THE MISCELLANEOUS RECEIPTS ACCOUNT INTO WHICH THE PROCEEDS OF THIS ACCOUNT ARE COVERED.

CONSIDERING THE FOREGOING CIRCUMSTANCES, AND PROVIDED THAT THE DRACHMAE CAN BE USED EFFECTIVELY TO MEET THE CURRENT FOREIGN CURRENCY DISBURSEMENT NEEDS OF AGENCIES OF THE UNITED STATES IN GREECE, WE HAVE NO OBJECTION TO, AND CONCUR IN, THE TRANSFER AND CONVERSION OF THE FUNDS IN THE MANNER OUTLINED.