B-160506, AUG. 15, 1967

B-160506, AUG. 15, 1967

TRUST TERRITORY OF THE PACIFIC ISLANDS - STATUS AS FEDERAL AGENCY - DAMAGES FOR LOSS OF GOVERNMENT PROPERTY DECISION TO THE SECY. OF AGRICULTURE RE CLAIM OF CCC AGAINST GOVERNMENT OF THE TRUST TERRITORY OF THE PACIFIC ISLANDS FOR THE DAMAGES FOR LOSS OF DONATED AGRICULTURAL COMMODITIES. THE GOVERNMENT OF THE TRUST TERRITORY OF THE PACIFIC ISLANDS ALTHOUGH DIFFERING FROM THAT OF AMERICAN SAMOA MUST LIKE THE GOVT. OF SAMOA BE REGARDED AS NOT HAVING STATUS AS AN AGENCY OF THE FEDERAL GOVERNMENT TO BE EXCLUDED FROM THE GENERAL RULE THAT FUNDS OF ONE AGENCY MAY NOT BE USED TO PAY DAMAGES CLAIMED BY ANOTHER AGENCY AND, THEREFORE, DAMAGES FOR THE LOSS OF FLOUR AND DRIED MILK DONATED TO THE GOVT. OF THE PACIFIC ISLANDS BY CCC UNDER 7 U.S.C. 1431 WHICH LOSS RESULTED FROM THE NEGLIGENT STORAGE OF THE COMMODITIES MAY BE PAID TO THE DEPT. OF AGRICULTURE FROM FUNDS OF THE PACIFIC ISLAND GOVERNMENT. B-160139, DEC. 22, 1966, 46 COMP. GEN-

TO MR. SECRETARY:

FURTHER REFERENCE IS MADE TO LETTER OF DECEMBER 5, 1966, FROM YOUR ASSISTANT SECRETARY, GEORGE L. MEHREN, CONCERNING A CLAIM BY YOUR DEPARTMENT AGAINST THE TRUST TERRITORY OF THE PACIFIC ISLANDS IN THE AMOUNT OF $38,185.69 FOR THE LOSS OF FLOUR AND DRIED MILK DONATED TO THE TERRITORY BY THE COMMODITY CREDIT CORPORATION PURSUANT TO THE PROVISIONS OF SECTION 416 OF THE AGRICULTURAL ACT OF 1949, AS AMENDED, 7 U.S.C. 1431. THE LOSS OF THE COMMODITIES IS REPORTED AS HAVING BEEN DUE TO NEGLIGENCE ON THE PART OF THE TERRITORIAL AGENCIES TO WHOM THE COMMODITIES WERE GIVEN, IN THAT THEY FAILED TO PROPERLY STORE AND USE THE COMMODITIES.

SUBSEQUENT TO THE DATE OF THE ASSISTANT SECRETARY'S LETTER WE HELD IN DECISION OF DECEMBER 22, 1966, B-160139, ADDRESSED TO YOU, THAT THE GOVERNMENT OF AMERICAN SAMOA WAS NOT AN AGENCY OF THE FEDERAL GOVERNMENT WITHIN THE MEANING OF THE GENERAL RULE THAT WHERE A FEDERAL AGENCY DAMAGES PROPERTY OF ANOTHER FEDERAL AGENCY, FUNDS AVAILABLE TO THE FIRST MAY NOT BE USED TO PAY CLAIMS FOR DAMAGES BY THE SECOND. CONSEQUENTLY, WE CONCLUDED THAT THE GOVERNMENT OF AMERICAN SAMOA WAS LIABLE TO YOUR DEPARTMENT FOR THE LOSS OF COMMODITIES DONATED TO THAT GOVERNMENT WHICH WERE DAMAGED OR DESTROYED UNDER CIRCUMSTANCES SIMILAR TO THOSE GIVING RISE TO THE INSTANT CLAIM.

WHILE THE LEGAL STATUS OF THE GOVERNMENT OF THE TRUST TERRITORY OF THE PACIFIC ISLANDS DIFFERS SOMEWHAT FROM THAT OF AMERICAN SAMOA, WE BELIEVE THE LEGAL PRINCIPLES STATED IN THE DECISION OF DECEMBER 22, 1966, AND THE CONCLUSION REACHED THEREIN ARE EQUALLY APPLICABLE IN THIS CASE. THE DEPARTMENT OF THE INTERIOR, BY LETTER OF JULY 31, 1967, STATED THAT THEY AGREED WITH THIS VIEW OF THE MATTER.

ACCORDINGLY, IN REPLY TO THE QUESTION RAISED BY YOUR ASSISTANT SECRETARY, YOU ARE ADVISED THAT FUNDS OF THE GOVERNMENT OF THE TRUST TERRITORY OF THE PACIFIC ISLANDS, ARE AVAILABLE FOR PAYMENT OF PROPER CLAIMS BY YOUR DEPARTMENT.