POLICY DETERMINATION 31,
AGENCY FOR INTERNATIONAL DEVELOPMENT,

EXECUTIVE SECRETARIAT,

December 9, 1965.

RESTRICTION OF PROCUREMENT TO THE UNITED STATES OR LDCS MEETING

CERTAIN CONDITIONS

The attached Policy Determination was approved by the Deputy Administrator on December 6, 1965. It restricts commodity procurement under grant program assistance to the United States or to Less Developed Countries that meet certain conditions. The policy is designed to reduce foreign payments under the AID program and thereby further lessen AID's adverse impact on the U.S. balance of payments.

Responsibility for installation of these procedures and the drafting and clearing of appropriate manual orders is assigned to AA/MR with regard to manual orders on geographic source (1414.1, 1414.1.1) and on commodity financing by SLC's (1457.5); and to A/CONT with regard to manual orders on methods of payment and accounting for SLC's. Clearance of manual orders should be through usual procedures in cooperation with A/MP.

Attachments
Distribution:

List B-4, Pos. 5

List C-2

List M., Pos. 13

FREDERIC L. CHAPIN,
Executive Secretary.

List B-6, Pos. 13

I. PURPOSE

This policy is designed to reduce foreign payments under the AID program and thereby further lessen AID's adverse impact on the U.S. balance of payments.

II. POLICY

Commodity procurement under grant program assistance is restricted to the United States, or to LDCs where the following conditions are met:

A. A major U.S. assistance purpose would be served as a result of such procurement. In general, such procurement would be limited to Less Developed Countries where the United States has a major aid program, and/or which can supply urgent aid requirements for third countries more promptly than the United States, as in Taiwan for Vietnam, Thailand for Laos and the Philippines and Malaysia for Southeast Asia.

B. The supplying Less Developed Country must agree to accept payment in dollars tied to financing imports from the United States through a special letter of credit.

(413)
O

PROBLEMS FACING THE TOOL AND

DIE INDUSTRY

HEARINGS

BEFORE THE

SUBCOMMITTEE ON

SPECIAL SMALL BUSINESS PROBLEMS

OF THE

SELECT COMMITTEE ON SMALL BUSINESS HOUSE OF REPRESENTATIVES

NINETY-FIRST CONGRESS

FIRST SESSION

PURSUANT TO

H. Res. 66

A RESOLUTION CREATING A SELECT COMMITTEE TO CONDUCT
STUDIES AND INVESTIGATIONS OF THE PROBLEMS
OF SMALL BUSINESS

WASHINGTON, D.C., MAY 20, 21, JUNE 3, 4, AND JULY 5, 1969

32-579

Printed for the use of

Select Committee on Small BushAW LIBRARY
U. S. GOVT. DOCS. DEP.

DEC 22 1969
UNIVERSITY OF CALIFORNIA
BERKELEY

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1969