Lessons to be Learned from the Management of Commodities Remaining from Terminated Indochina Economic Assistance Programs

ID-76-48: Published: Oct 20, 1976. Publicly Released: Oct 20, 1976.

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A review of the methods of disposal of commodities after termination of assistance programs in Indochina revealed problems and needs for future improvement. The Agency for International Development (AID) and the Department of Agriculture took control of commodities in transit worth an estimated $54.3 million.

In terminating the pipelines and disposinq of goods in transit, these agencies incurred costs and losses of millions of dollars. Some costs could have been reduced if the Department of Agriculture had not required immediate disposal of commodities or had reprogrammed them, and if AID had more effective procedures to dispose of commodities.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The AID should develop detailed instructions for disposing of commodities; prepare contingency procedures to curtail or slow down a commodity pipeline when necessary; require adequate information be maintained on status of open letters of credit; and improve their commodity data system. The Department of Agriculture should include in future P.L. 480 agreements a provision for taking title to commodities, before their scheduled arrival in a country; make a concerted effort to reprogram rather than sell intransit commodities; and develop directions as to data to be provided field representatives and procedures they should follow in selling intransit commodities.

    Agency Affected:

 

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