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ARCHIVER AND
Admiral E. S. Land
- 2 -
RECORDE
SERVICE
Foroign Areas.
As we explained in our letter to you of November 26, 1945,
the situation is different regarding vessela located in foreign areas.
Hore, under Section 32(b) of the Surplus Property Act, we have the
power to exempt disposals of property located outside the continental
United States, its territories and possessions from provisions of the
Act whenever we deen that such provisions would obstruct the efficient
and economic disposition of such property in accordance with the ob-
jectives of the Act. In your letter to us of November 21, 1945, you
explained how Section 10(b) of the Surplus Property Act was obstruct-
ing such efficient and economic disposal, and in our reply of November
26, 1945, we advised you that we were prepared to carry out your
recommendation to exempt disposals of vessels located in foreign
areas from Section 10(b) of the Act provided that you obtain the con-
currence of the State Department in your recommendation,
Now, in your letter of December 6, you request us to
designate the State Department as the disposal ageney for "all commercial
vessols "except (a) ships built under the Merchant Marine Act, 1936, and
(b) ships covered by the Ship Sales Bill.
If the State Department will agree to assume this disposal
authority we are prepared to amend our Revised Regulation 8 immediately
to limit the disposal responsibility of the Maritime Commission to the
eategory recommended by you.
of course any designation should be clear, which means that
vessela declared surplus in the foreign field should be readily
identifiable as "ships built under the Merchant liarine Act, 1936 and
ships ecvered by the Ships Sales Bill." The obvious question is raised
whether "ships covered by the Ship Sales Bill* is a designation which
can be recognized in the field. The eategory of ships as described in
a bill pending before the Congress is one that may be changed constantly,
before it becomes final by enactment. If the Naritime Commission will
recommend a specific class of vessels sovered, perhaps, by the bill in
its present form, and if this is a workable eategory, we shall be in a
position to carry out an effective designation at once.
Shirs Declared to be Total Loss.
In your letter of December 6, you recommend that the Maritime
Commission not be responsible for disposal of any ships assigned to it
for disposal abroad which it declares to be a constructive total loss.
Under Section 14(b) of the Surplus Act, owning agencies are
authorised to dispose of sorap. If it is desired that the Maritime
Commission certify a vessel assigned to it for disposal as serap and
the owning agencies are willing to dispose of the vessels as serap
upon that certification, provision to that effect can be inserted in
our Revised Regulation 8. With regard to abandonment or destruction,
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"ocrText": "ARCHIVER AND\nAdmiral E. S. Land\n- 2 -\nRECORDE\nSERVICE\nForoign Areas.\nAs we explained in our letter to you of November 26, 1945,\nthe situation is different regarding vessela located in foreign areas.\nHore, under Section 32(b) of the Surplus Property Act, we have the\npower to exempt disposals of property located outside the continental\nUnited States, its territories and possessions from provisions of the\nAct whenever we deen that such provisions would obstruct the efficient\nand economic disposition of such property in accordance with the ob-\njectives of the Act. In your letter to us of November 21, 1945, you\nexplained how Section 10(b) of the Surplus Property Act was obstruct-\ning such efficient and economic disposal, and in our reply of November\n26, 1945, we advised you that we were prepared to carry out your\nrecommendation to exempt disposals of vessels located in foreign\nareas from Section 10(b) of the Act provided that you obtain the con-\ncurrence of the State Department in your recommendation,\nNow, in your letter of December 6, you request us to\ndesignate the State Department as the disposal ageney for \"all commercial\nvessols \"except (a) ships built under the Merchant Marine Act, 1936, and\n(b) ships covered by the Ship Sales Bill.\nIf the State Department will agree to assume this disposal\nauthority we are prepared to amend our Revised Regulation 8 immediately\nto limit the disposal responsibility of the Maritime Commission to the\neategory recommended by you.\nof course any designation should be clear, which means that\nvessela declared surplus in the foreign field should be readily\nidentifiable as \"ships built under the Merchant liarine Act, 1936 and\nships ecvered by the Ships Sales Bill.\" The obvious question is raised\nwhether \"ships covered by the Ship Sales Bill* is a designation which\ncan be recognized in the field. The eategory of ships as described in\na bill pending before the Congress is one that may be changed constantly,\nbefore it becomes final by enactment. If the Naritime Commission will\nrecommend a specific class of vessels sovered, perhaps, by the bill in\nits present form, and if this is a workable eategory, we shall be in a\nposition to carry out an effective designation at once.\nShirs Declared to be Total Loss.\nIn your letter of December 6, you recommend that the Maritime\nCommission not be responsible for disposal of any ships assigned to it\nfor disposal abroad which it declares to be a constructive total loss.\nUnder Section 14(b) of the Surplus Act, owning agencies are\nauthorised to dispose of sorap. If it is desired that the Maritime\nCommission certify a vessel assigned to it for disposal as serap and\nthe owning agencies are willing to dispose of the vessels as serap\nupon that certification, provision to that effect can be inserted in\nour Revised Regulation 8. With regard to abandonment or destruction,"
}