SUBPART D. BARTER AND EXCHANGE OF SURPLUS COMMODITIES [See sec. 416 of the Agricultural Act of 1949, as amended, on p. 191.] Commodity Credit Corporation Charter Act. SEC. 4(h) Notwithstanding any other provision of law, the Commodity Credit Corporation is authorized, upon terms and conditions prescribed or approved by the Secretary of Agriculture, to accept strategic and critical materials produced abroad in exchange for agricultural commodities acquired by the Corporation. Insofar as practicable, in effecting such exchange of goods, normal commercial trade channels shall be utilized and priority shall be given to commodities easily storable and those which serve as prime incentive goods to stimulate production of critical and strategic materials. The determination of the quantities and qualities of such materials which are desirable for stock piling and the determination of which materials are strategic and critical shall be made in the manner prescribed in section 2 of the Strategic and Critical Materials Stock Piling Act (60 Stat. 596). Strategic and critical materials acquired by Commodity Credit Corporation in exchange for agricultural commodities shall, to the extent approved by the Munitions Board of the National Military Establishment,1 be transferred to the stock pile provided for by the Strategic and Critical Materials Stock Piling Act; and when transfered to the stock pile the Commodity Credit Corporation shall be reimbursed for the strategic and critical materials so transferred to the stock pile from the funds made available for the purpose of the Strategic and Critical Materials Stock Piling Act, in an amount equal to the fair market value, as determined by the Secretary of the Treasury,2 of the material transferred to the stock pile. Nothing contained herein shall limit the authority of the Commodity Credit Corporation to acquire, hold, or dispose of such quantity of strategic and critical materials as it deems advisable in carrying out its functions and protecting its assets. . . . (15 U.S.C. 714b(h).) Agricultural Trade Development and Assistance Act of 1954, as amended. SEC. 303. The Secretary shall, whenever he determines that such action is in the best interest of the United States, and to the maximum extent practicable, barter or exchange agricultural commodities owned by the Commodity Credit Corporation for (a) such strategic or other materials of which the United States does not domestically produce its reqiurements and which entail less risk of loss through deterioration or substantially less storage charges as the 1 "National Military Establishment" was succeeded by the Department of Defense under the Act of August 10, 1949, 63 Stat. 578, 591. This function was transferred to the Administration of General Services by section 102 of the Act of June 30, 1949, 63 Stat. 377, 380, 40 U.S.C. 752 (a). 3 President may designate, or (b) materials, goods, or equipment required in connection with foreign economic and military aid and assistance programs, or (c) materials or equipment required in substantial quantities for offshore construction programs. He is hereby directed to use every practicable means, in cooperation with other Government agencies, to arrange and make, through private channels, such barters or exchanges or to utilize the authority conferred on him by section 4(h) of the Commodity Credit Corporation Charter Act, as amended, to make such barters or exchanges. In carrying out barters or exchanges authorized by this section, no restrictions shall be placed on the countries of the free world into which surplus agricultural commodities may be sold, except to the extent that the Secretary shall find necessary in order to take reasonable precautions to safeguard usual marketings of the United States and to assure that barters or exchanges under this Act will not unduly disrupt world prices of agricultural commodities or replace cash sales for dollars. The Secretary may permit the domestic processing of raw materials of foreign origin. The Secretary shall endeavor to cooperate with other exporting countries in preserving normal patterns of commercial trade with respect to commodities covered by formal multilateral international marketing agreements to which the United States is a party. Agencies of the United States Government procuring such materials, goods, or equipment are hereby directed to cooperate with the Secretary in the disposal of surplus agricultural commodities by means of barter or exchange. The Secretary is also directed to assist, through such means as are available to him, farmers' cooperatives in effecting exchange of agricultural commodities in their possession for strategic materials. Barter or exchange of agricultural commodities under clause (a) of this section shall be limited to exchange for materials which originate in the country to which the surplus agricultural commodities are exported and to arrangements which will prevent resale or transshipment of the agricultural commodities to other countries. (7 U.S.C. 1692.) Agricultural Act of 1956, as amended. SEC. 206. (a) Strategic and other materials acquired by the Commodity Credit Corporation as a result of barter or exchange of agricultural commodities or products, unless acquired for the national stockpile established pursuant to the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98-98h) or for other purposes shall be transferred to the supplemental stockpile established by section 104 (b) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1704); but no strategic or critical material shall be acquired by the Commodity Credit Corporation as a result of such barter or exchange, except for such national stockpile, for such supplemental stockpile, for See section 401 of the Agricultural Trade Development and Assistance Act of 1954, as amended, on p. 226. Last sentence added by the Act of July 29, 1968, 82 Stat. 451. 5 As originally enacted, and amended, section 104 (b) of Title I, Pub. L. 480, 83d Congress, authorized the use of foreign currencies generated under that Act to be used for the acquisition of strategic and other materials to be placed in a supplemental stockpile. When Title I was revised by the Food for Peace Act of 1966, 80 Stat. 1529, effective January 1, 1967, the provision (section 104 (b)) with respect to the supplemental stockpile was omitted. However, the supplemental stockpile continues in existence. 6 foreign economic or military aid or assistance programs, or for offshore construction programs, or to meet requirements of government agencies.' (b) [This subsection which provided that strategic materials acquired by the Commodity Credit Corporation as a result of barter or exchange of agricultural commodities or products may be entered or withdrawn from warehouse free of duty, was repealed by the Act of May 24, 1962, 76 Stat. 78. The effective date of the repeal was provided for in sec. 102 of the same Act.] (c) In order to reimburse the Commodity Credit Corporation for materials transferred to the supplemental stockpile there are hereby authorized to be appropriated amounts equal to the value of any materials so transferred. The value of any such materials for the purpose of this subsection, shall be the lower of the domestic market price or the Commodity Credit Corporation's investment therein as of the date of such transfer, as determined by the Secretary of Agriculture. (7 U.S.C. 1856.) ACT OF AUGUST 11, 1939 To facilitate the execution of arrangements for the exchange of surplus agricultural commodities produced in the United States for reserve stocks of strategic and critical materials produced abroad. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, notwithstanding any other provision of law, whenever the President, by and with the advice and consent of the Senate, has concluded a treaty involving the exchange of surplus agricultural commodities produced in the United States which are held under loans made or made available by the Commodity Credit Corporation for stocks of strategic and critical materials produced abroad, the Commodity Credit Corporation is authorized, upon terms and conditions prescribed by the Secretary of Agriculture, to accept such strategic and critical materials in exchange for such surplus agricultural commodities; and for the purpose of such exchange the Secretary of War, the Secretary of the Navy, and the Secretary of the Interior acting jointly through the agency of the Army and Navy Munitions Board,' shall determine which materials are strategic and critical and the quantity and quality of such materials. In order to carry out the provisions of this Act, The material following the semicolon was added by the Act of September 6, 1958, 72 Stat. 1791. 7 This phrase was added by the Act of September 21, 1959, 73 Stat. 611. The Department of War was designated the Department of the Army and the title of the Secretary of War was changed to Secretary of the Army by section 205 (a) of the Act of July 26, 1947, ch. 343, title II, 61 Stat. 501. Section 205(a) of the Act of July 26, 1947, was repealed by section 53 of the Act of August 10, 1956, ch. 1041, 70A Stat. 641. Section 1 of the Act of August 10, 1956 enacted "Title 10, Armed Forces" which in sections 30113013 continued the military Department of the Army under the administrative supervision of a Secretary of the Army. The Army and Navy Munitions Board ceased to exist when the Chairman of the Board of Munitions took office and the records and personnel of the Army and Navy Munitions Board were transferred to the Munitions Board by the Act of July 26, 1947, ch. 343, title II, section 213, 61 Stat. 505. The Munitions Board was abolished by section 2 of 1953 Reorg. Plan No. 6, 18 F.R. 3743, 67 Stat. 638, and all functions of the Munitions Board were transferred to the Secretary of Defense by section 1 of 1953 Reorg. Plan No. 6. the Commodity Credit Corporation is authorized, upon terms and conditions prescribed by the Secretary of Agriculture, to procure, convey, transport, handle, store, maintain, or rotate such surplus agricultural commodities, and such reserve stocks of strategic and critical materials, as may be necessary to accomplish the purposes of this Act. The Commodity Credit Corporation is authorized and directed to transfer to warehouses in or near cotton manufacturing centers in New England not to exceed three hundred thousand bales of cotton, to which it now has title or may hereafter acquire title, having regard for the grades and staples customarily required by manufacturers in that area: Provided, That all necessary costs in connection with such transfer will not result in additional net cost to the Corporation. In determining specific cotton to be exchanged under this Act, the determination shall be made by sampling and selection at the place where the cotton is stored on the date of ratification of a treaty providing for such exchange, and no cotton shall be exchanged under such treaty which, after such date, is transported to another place and there sampled and selected. Such reserve stocks of strategic and critical materials shall be stored on military or naval reservations or in other locations approved by the Secretary of War and the Secretary of the Navy. The Commodity Credit Corporation is authorized to transfer such reserve stocks of strategic and critical materials, upon such terms and conditions as the Secretary of Agriculture shall approve, to any other governmental agency. Such reserve stocks or strategic and critical materials shall be made available or disposed of by the Commodity Credit Corporation or other governmental agency only upon order of the President in accordance with the terms of the applicable treaty; when necessary to prevent deterioration, the Commodity Credit Corporation or other governmental agency is authorized to replace those quantities of the reserve stocks of such strategic and critical materials subject to deterioration with equivalent quantities of the same materials. The funds now or hereafter made available to the Commodity Credit Corporation are hereby made available to carry out the purposes of this Act. There is hereby authorized to be appropriated such additional sums as may be required to carry out the provisions of this Act. All funds for carrying out the provisions of this Act shall be available for allotment to bureaus and offices of the Department of Agriculture, and for transfer to such other agencies of the Federal Government as the Secretary of Agriculture may request to cooperate or assist in carrying out the provisions of this Act. (53 Stat. 1407, 15 U.S.C. 713a-7.) SUBPART E. EXPORT AND SURPLUS REMOVAL See also the following statutory provisions: Section 2 of the Agricultural Act of 1961 (declaration of policy) – Page 358 153, 203 Section 407 of the Agricultural Act of 1949 (exempting export sales from certain pricing restrictions and making farm commodities available to relieve distress)-. 184, 199, 245 Section 416 of the Agricultural Act of 1949 (disposition of surplus commodities) 191, 234 Title VI of the Agricultural Act of 1954 (acquiring information on foreign demand for United States agricultural commodities) – AGRICULTURAL ACT OF 1956 1 360 TITLE II-SURPLUS DISPOSAL PROGRAM OF ORDERLY LIQUIDATION SEC. 201. (a) The Commodity Credit Corporation shall, as rapidly as possible consistent with its existing authority, the operation of the price support program, and orderly liquidation, dispose of all stocks of agricultural commodities held by it. (b) The Secretary shall submit to Congress within ninety days after the enactment of this Act detailed programs, with recommendations for any additional legislation needed to carry out such programs, (1) for the disposition of surplus commodities as required by subsection (a) above; (2) for a food stamp plan or similar program for distribution through States (including the District of Columbia, the Territories, Puerto Rico and the Virgin Islands) and local units of Government of future surplus production to needy persons in the United States, its Territories, and possessions, so as to prevent the accumulation of commodities in the hands of the Commodity Credit Corporation; and (3) for strategic stockpiling foodstuffs and other agricultural products (A) inside the United States and (B) outside the United States as authorized in section 415 of the Mutual Security Act of 1954. The Secretary shall report annually on his operations under subsection (a) and such reports shall show (1) the quantities of surplus commodities on hand; (2) the methods of disposition utilized and the quantities disposed of during the preceding twelve months; 1 Approved May 28, 1956, 70 Stat. 188. |