B-134253, JAN. 20, 1960

B-134253, JAN. 20, 1960

TO CENTRAL OF GEORGIA RAILWAY COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 9, 1959, FILE N-30345-G A, REGARDING THE ACTION TAKEN ON YOUR SUPPLEMENTAL BILL N-30345-C-G-R 1961, WHICH WILL BE CONSIDERED AS A REQUEST FOR RECONSIDERATION OF OUR DECISION DATED APRIL 25, 1958, B-134253. ON JULY 20, 1959, YOU WERE ADVISED BY OUR TRANSPORTATION DIVISION THAT NO ACTION APPEARED NECESSARY ON THE SUPPLEMENTAL BILL IN QUESTION BECAUSE THE DISALLOWANCE OF AN IDENTICAL BILL FOR THE SAME AMOUNT HAD BEEN SUSTAINED BY THE DECISION OF APRIL 25, 1958.

YOU NOW CONTEND THAT YOU ARE ENTITLED TO FULL COMMERCIAL RATES ON THE SHIPMENTS INVOLVED STATING THAT PARAGRAPH 5 OF REQUISITION NO. UK BSC- 20848 (THE REQUISITION UNDER WHICH THE SUPPLIES INVOLVED WERE PROCURED) PROVIDES (QUOTING FROM YOUR LETTER) THAT "THE REQUIREMENT OF THE MATERIAL COVERED BY THE REQUISITION TO BE F.E.A.' YOU REQUEST ADVICE WHETHER IT WAS OUR INTENTION IN THE DECISION OF APRIL 25, 1958, TO RULE "F.E.A. TRAFFIC AS BEING MILITARY OR NAVAL IN NATURE AND AS SUCH TO BE SUBJECT TO LAND GRANT REDUCED RATES.'

AS YOU WERE ADVISED IN THE DECISION OF APRIL 25, 1958, THE SUPPLIES PROCURED UNDER REQUISITION UK-BSC-20848 ARE SHOWN THEREON TO HAVE BEEN INTENDED FOR USE BY "ARMY, NAVY, AIR AND M.O.W.T.' SECTION 5-B OF THE REQUISITION, TO WHICH YOU REFER, STATES "THIS REQUIREMENT HAS BEEN DISCUSSED * * * WITH MR. C. A. RICH, F.E.A.' THIS WOULD INDICATE MERELY THAT THE NEED OF THE BRITISH GOVERNMENT FOR THE TIRES WAS DISCUSSED WITH A REPRESENTATIVE OF THE FOREIGN ECONOMIC ADMINISTRATION WHICH DURING THE PERIOD SEPTEMBER 25, 1943, AND SEPTEMBER 27, 1945, ADMINISTERED CERTAIN PHASES OF THE LEND-LEASE PROGRAM (SEE UNITED STATES GOVERNMENT ORGANIZATION MANUAL 1959-60, PAGE 663), AND HAS NO BEARING ON THE USE FOR WHICH SUCH STORES WERE INTENDED. IT SURELY WOULD NOT INDICATE THE TIRES WERE INTENDED FOR ADMINISTRATIVE USE BY THE FOREIGN ECONOMIC ADMINISTRATION AS SEEMS TO BE IMPLIED IN YOUR LETTER. ANSWERING YOUR QUESTION SPECIFICALLY THE FACT THAT THE FOREIGN ECONOMIC ADMINISTRATION MAY HAVE BEEN INVOLVED IN SOME PHASE OF ADMINISTERING THE LEND-LEASE PROGRAM--- AND THAT THE REQUISITION MAY HAVE BEEN APPROVED OR ACTED UPON BY THAT ADMINISTRATION--- DOES NOT IN ANY WAY AFFECT WHETHER SUPPLIES SHIPPED TO OUR ALLIES UNDER THE JOINT WAS EFFORT WERE INTENDED FOR MILITARY OR CIVIL USES AND OUR DECISION OF APRIL 25, 1958, WAS NOT INTENDED TO SO HOLD.

THE CONTENTS OF YOUR LETTER OF OCTOBER 9, 1959, HAVE BEEN CAREFULLY CONSIDERED BUT SUCH LETTER AFFORDS NO PROPER BASIS TO MODIFY THE CONCLUSION PREVIOUSLY REACHED IN THIS MATTER.