oversight

Merchandise Control System at the U.S. Embassy in Taipei, Taiwan

Published by the Government Accountability Office on 1977-08-26.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

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                       UNITED STATESGENERAL ACCOIJNT~NGOFFICE
                                   iNTERNATION9L           DIVISION
                                            l=AREAsrI3R*NCH
                         PRlNCE ,ONAH K”H,C, KAUN~ANAOLE FEDERAL          B”ILDINO
                                       ,a0 ALA MD-     mWLEVARD

                                     HONOLULU.      HAWAII      96813
                                                                      fi!jG      2   ii   1977

The Honorable   Leonard          Unger
kmerican  .&mbassador
U.S. Embassy
Taipei,  Taiwan

Dear Mr.     &mbassador:

       We have completed            a survey of the merchandise             control     system
administered       by the U,S. Embassy in Taipei,                 Taiw;an.       The system is
designed     to control         the importation,       use, and disposal           of duty-free
commodities       (personal        vehicles,     other   personal      property,     and 1 iquor)
by U.S. Embassy and attached                 agency personnel        in Taiwan.       We found
that the Embassy's           rcanagement controls         on vehicle       and other     personal
property     sales and on gifts             and liquor    sales could       be improved.
Taipei    E-bassy     officials        were briefed      on our observations          and they
generally      agreed that         the controls      should be isproved.

        The sale of personal             property,         particularly        motor vehicles,
abroad by American           e-.ployees       has been criticized              by members of Congress
and the General         Accounting         Office      because of profits            that sellers     have
realized      on the transa:tions.                Profit-taking          on sales of this        kind is
viewed      as diminishing         the stature         of the American          mission,    damaging
 the United      States    image abroad,            and resulting          21 undue personal
advantage       under circL:stances             created       in substantiai         part by reason
of official       Governmert         service      to =3ich       special     customs     and import
privileges       are attac‘;led.

      In a September    3, 1974, letter    to Representative       H. R. Gross
we reporied    on the administrative    procedures      of t>e U.S. Embassy,   Lima,
Peru, relating    to sales of personal     property     where profits   on such sales
by U.S. Government    employees were    permitted.        Scze of the same weaknesses
we noted there exist     at the U.S. E-Sassy,       Taipei,   Taiwan.

ACCUPJTE REPORTING OF PERSONAL
PROPERTY SALES IS SK ASSURED
                          -
        The U.S. Embassy, Taipei,        Tai*;zn,    did not have a system                         for
verifying    or fol1ovir.g    up sales of personal        property and the                         disposition
of profits     on such sales    to assure       rhat they were accurately                          reported
and the profits      nroperly   distributed.




                                                                                                   FPCD-77-75
        Department     of State regulations,            as set forth      in Foreign     Affairs
Manual Circular        378, prohibit         the sale of personal         automobiles      and
other personal        property       by U.S. Government        employees     abroad at prices
producing     profits      to them which        result   primarily     from import      privileges
derived    from their       official     status.       The regulations       provide,    however,
that   under local       regulations       approved     by the Ambassador,         sales may
be made at profit         but in no event shall           any profits      be retained       by
the employee,

        In accordance       with Circular       378, the U.S. Embassy, Taipei,              Taiwan,
issued regulations          on vehicle      disposal      (Circular       30/75)   and on property
disposal     (Circular      31/75j.      The provisions         of these regulations         apply
to al.1 Embassy personnel            and dependents        which     includes     the Embassy,
the Military       Assistance       and Advisory      Group,      the U.S. Army Technical
Group, other       attached      agencies    of the U.S. Embassy and associated                con-
tractors,     and their       nonappropriated        fund activities.            Under these
procedures     written      approval      of the Unit Administrative              Officer  and the
General    Services      Officer     are required       before      sales of personal      property,
including     vehicles,       can be accomplished.

Sales    of personal      vehicles

        Circular     30/75 allows     a person to sell      one vehicle  outside    the
duty-free      commun;ty     per tour providing      it has been in the owner's
possession       on Taiwan for at least        2 years or it has been in the seller's
possession       on Taiwan for at least        a year and the seller     has either
transfer      or retirement     orders   having   an effective     date within   90 days
of sale.       Also,   sellers   may not retain      an amount in excess of acquisition
costs.

       We tested       the Embassy's        system for monitoring             these sales and
concluded      that reported         sales    and acquisitiljn       costs      are questionable
and the Embassy's           system did not assure            that the profits         on sales of
personal     vehicles      were properly         reported      and distributed.          We identified
as many as 16 possible             cases where reported           acquisition        and sales
prices     shculd    have raised         a question     of whether      profits      were being
accurately       reported.       According       to the Administrative             Counselor   and
the General        Services     Officer,      sales are not followed             up to insure
that correct        sales and purchase           prices    are reFJ,rted.




                                                 -2-
c




                 At the time of our survey,          p rofitmaking       was allowed       for vehicle
        sales by military        and civilian      U.S. Government         personnel       not assigned
        to the Embassy.         To determine     whether       Embassy assigned         or attached
        personnel      might have made a profit           on vehicle      sales*     we reviewed     the
        sales of 60 vehicles.           We compared the sales of 15 late model vehicles
        wi.th similar      sales at a profit       by U.S. military          personnel       in Taiwan
        during     January    and February     1977.      Sales prices       reported      in 14 of
        the 15 Embassy cases were lower than for similar                       sales    in a profit
        envi rorlmen t . For example,         one of tlke 14 sellers           reported      a sales
        price     of $L, 405 for a 1975 Ford Granada.                Three similar        sales by
    .   military     personnel    who may retain        profits      on such sales were made
        at reported       sales prices     of $7,000,       $10,000,     and $11,303.          See
        enclosure      I for additional       examples.

               We also reviewed        the 60 sales for overstating              purchase      prices.
        In one sale the reported            purchase      price    for a 1974 Mercedes Benz 230 sedan
        was $9,820.       However,     a check of the vehicle’s             Taiwan registration         docu-
        ments disclosed       a purchase       price    of $8,620.       We reviewed      available     files
        and were urable       to identify       any other costs         that the seller        cou1.d report
        as acquisition      costs.      The seller        reported     only a $5,200 profit          on a
        $15,020    sales price.        Because the reported            purchase    prices    differed,
        Embassy officials       to whom the figures             were available      should ilave
        questioned     whether     t’he reported       profit    was understated        by $1,200.
        The reported      purchase     price--     $10,000--of      another    Mercedes appears
        high and also should have been questicned.

        Sales of     other   personal
        pronerty

                Circular      31/75 governs      the sale of personal          property      outside
        the duty-free         community     by Embassy personnel.           Limits    on these sales
        are based on type of item (accountable                  restricted       and accountable)
        and time on island            of the item and the seller.             Accountable       restricted
        items are air-conditioners,              dehumidifiers,       TVs, hot water heaters,
        refrigerators,          freezers,    pianos,   and organs.         Each sponsor       is allowed
        to sell      a specific       number of each item outside           the duty-free        community
        providing       the seller       has some form of permanent           change-of-station
        orders     and the item has been in the owner’s                 possession      at least       6
        months prior        to the date of application            for disposal.




                                                       - 3-
                     Accountable       items are stoves,        washing    machines,    dryers,    kerosene
              heaters,     electric      cooking    appliances,     camera equipment,       stereo    equipment,
              golf   equipment,      luggage,     and other     electrical    appliances.        Each sponsor
              is aliowed      to sell     a specific      number of each item outside           the duty-free
              community     providing       the item has been in the owner’s            possession     on
              island    for at least        12 months.

                      We examined      the saies of personal    property   during     1976 by
              Embassy and attached         agency  personnel.     For a majority      of the sales
              it appeared       thst the items sold had been bought for bona fide personal
              use and not with the intent          of making a profit.       However,     in all     the
              sales we reviewed         no profit s were reported     and the General       Services
              Officer    stated     that he knew of no profits       ever being reported.

                      We obtained        from a local      buying    agent in the private        sectn
              the   current      resale     prices    of items sold in thene       transactions.                             The
              following       prices    of items highly        desired    by the local    community
              indicate      that    profits      could have been made on the sale of these                                   items.

                                                                 Purchase                             Sales    price
                                                                  price                                         2 years old
                                                                 (note 1)           New in l-ax                    (note 21

              Sony 19” Color TV                                     $430                 $800+                        $600
              Whirlpool     AC (21,000           BTU)
                 Summer Sale                                         354                    700-800                    6GO
                k’inter    Sale                                      354                    650                        500
              Whirlpool     Refrigerator
                 Side by side                                        429            2/      858                 A/ 722
                 Top and bottom                                      360            J/      720                 _2/ 598
              Freezer    (chest)                                     258            2/      516                 y 414
              Stove
                 Small                                               218            2/      436                  2/    342
                 Large                                               299            A/      598                . z/    382
              Washer/dryer                                           446                    868                        476

              l/Kavy    Exch-ange,      Taipei        prices.

              L/Aad    $50 if    original           box   is    included     in    the        sale.

              i/Estimated       sales       price     based      on buying        agentts           formula.




                                                                     - 4 -




                                                                                                                                      - - -
                                                                                          . - - -     -                  -

. _ - _ I .
       Present       control      procedures       only require    the    seller  to list     the
items     for sale,       their      purchase    price,   date of purchase,       and to certify
whether      a total     procit       was or was not made from the sale.               No verifica-
tion is made by the General                  Se-vices   Officer    of the purchase        or sales
price    of individual          items no- are complete          reviews      made of the sales
application       to insure          only bona fLde personal         r1s.e items  that   have     been
held for the proper             tir,le are offered      for sale.

        We believe       this   to be a serious         weakness      in the system which
allowed       to go unquestioned        the    reporting     by one individual          of sale of
accountable       restricted       items having        an acquisition        cost of over $2,300
at no profit.      when the market          price    for the i terns was over $3,100.
The individual         used home leave orders            as the authorization           for the sale
rather      than permanent        change-of-station         orders      as required.       Other
individuals       were identified         as having      sold items without          holding     them
for the required           time period.

Declaring     and donating       profits     to charity

       Both State Department          and Embassy regulations           re’quire     that profits
from vehicle      sales be donated        to a U.S. charity,        a local       charity
approved by the Ambassador,            the U.S. Government,         or an authorized
agency of the U.S. Government.                Circular   378 also provides           income tax
guidance     and an example for Embassy personnel              outlining        the financial
advantages      of declaring       the procit     as a capital    gain and deducting
the  charitable      contribution.

        Procedures    for insuring      that reported      profits    are donated         to
charities     were inadequate.        For example,     the written       certification         of
the disposal       of profits   on the sale of the 1974 Mercedes                Benz noted
above showed only that the seller            planned     to contribute         unsoecified
amounts to nine specified          charities     and to “other       charities       that may
solicit     my assistance.”      According     to the Administrative            Counselor
and the General       Services   Officer,    no follohups         are done to insure         that
donations     are actually     made.

        The degree to which the system can be abused under present
conditions        is exemplified        J>y one case we reviewed.                An employee
reported       a profit      on the .s.\le of a personal              car which on the basis
of available          data should hsve been questioned                   for understatement.
Additionally,          he sold accountable           restricted        items at much less than
market      value without       proper orders         and also viol dted the Embassy’s
gift    regulations        (see pp. 3, 6, and 7).               Despite      these apparent
violations,         his actions     wert not detected             by the Embassy system but by
the military         merchandise       control      system when a check of his exchange
purchases       disclosed      several     positive       indications       of black-marketing
and an expanded investigation                  was undertaken.


                                                  -5-




                                             --
Conclusions       and recommendations

        The Unit Administrative         Officers        and General      Services      Officer
wer: not performing       sufficient       review       and verification        of vehicle         and
rez,tricted   accountable       item sales       transactions        to insure     the    accuracy
of purchas 2 and sales prices.             They were also not requiring                 sufficient
documentation      to determine       whether      profits    actually     were donated          to
approved charitable       institutions.            Control    was solely       dependent       on an
individual’s     honesty.

        We recommend that          you require        Embassy officials       to request
documentation        to stipport      acquisition       costs and sales prices        and that
employees     be required        to furnish       proof    that excess proceeds       from sales
of personal      property     including        vehicles     were donated      to approved
chari ties.      Where cost or sales price               data furnished       by employees   is
out of line with current             market      prices   and other     data,   as a minimum,
special     explanations      should be required.

-BETTER CONTROL NEEDED OVER GIFTS

          Circular    31175 requires        that bona fide,    duty-free     gifts,     whether
imported        or transported       into   Taiwan or acquired      in Taiwan,      given   to
persons outside          the   duty-free     community  must meet      the following
criteria:

      1.      No gift  over      $25 in value may        be given        without      written
approval      by appropriate       authori ties.

     2.      All gifts  given         to any one recipient          in    any      12-month     period
may not     exceed $75.00 in          value.

     3. All gifts     given in any              1 year by one member of               the     duty-free
communi.ty shall  not exceed $300               in value.

Despite    these restrictions,        one sponsor       and his dependents          had
purchased     i terns to be given as gifts         totaling         $319 in 1976; $1,618 in
197 q; and $589 in 1974.          In 1975, the sponsor had spent $490 for gifts
and his wif*? had spent $1,035.             Both were over the $300 limit               and
among the gifts        were a variety     of accountable            items (luggage     and
electric    blankets)      and black-market      items (cosmetics,           baby clothing,
bedding,     and dinnerware}.        For a complete         listing      of the gift    purchases,
seeenclosure       II.

         We recommend      that you establish   a review    process      to periodically
insure     people are      complying with Circular     31/75’s     limit   on gifts.




                                                 -6-
     LIQUOR SALES COKIROLS CAN BE IYPROVED

              The Embassy operates        all U.S. Government        liquor     stores    rn Taiwan.
     According     to the Administrative          Counselor,     about 95 percent         of the saies
     are to non-Embassy military            and civilian     employees      and their     dependents.
     This situation      results      from the Embassy originally            having    liquor   stores
     under diplomatic       conditions       and expanding     the stores      when military
     activities     on Taiwan      increased.

     Embassv        ccntrol       of   liquor

                Al though  the Embassy is a minority            user of the liquor      stores,     it
     operates         the control    system.      About 2,000 military       and Government
     contract      and 400 other        personnel    have   ration     cards that permit        them to
     purchase      liquor     and wine at the stores.            The cards are issued        annually
     and have monthly           unit  limits.      Embassy shop personnel        mark each
     person’s      card at the time of purchase             to shot how much of the monthly
     ration     has been used.          Waivers    to increase      tte monthly   limit     can be
     obtained      from the Administrative            Counselor     if the requestor      has a
     valid    reason.

..          About 2 years ago the Embassy and the military         had discussions                   on
     methods     to reduce drug and alcohol    abuse on Taiwan.      As a result,
     the  limits    were reduced to the following    monthly   levels.

                            Category              Liquor             Or             Wine
                                                (bottles)                        (bottles)

                 Military        - L person            8                               32
                                   2 People           16                               64

                 Embassy         - 1 person           10                               40
                                   2 people           20                               80

            We discussed     these limits    with Embassy and military         personnel.
     All agreed that few people could use their             complete  ration       on an
     extended    basis and that     the limits    could be reduced without          restricting
     legi timate     buyers.    Law enforcement     and investigative    officials         added
     that   reducing     the limits   would rszsult   in fewer i terns reaching        the
     black market.




                                                   -7-
Inadequate     review   of     liquoz     purchases

        The Embassy controls         the issuing    and monitoring      of liquor      ration
cards.     The Embassy shop does not make periodic               reviews    of individual
cardholder     purchases.       The only checks made are individual             ones and at
the specific       request   of the Provost       Marshal Office.       As a result,        the
majority    of liquor      purchases    are not reviewed      for potential       black-
marketing     activities     of a product      that has probably       the highest       profit
to cost ratio        of any item being black-marketed.

       We recommend that         you      reduce liquor    limits   and introduce          a
procedure    to periodccally            review   purchases    by all cardholders           to detect
potential    abusers.



       Please advise    us as soon as possfble   on what action                      you plan LO
take to improve     controls  over gifts  and sales of liquor                       and personal
property.

       We are sending      copies        of this report      to    the Assistant       Secretary
of State     for Administration            and the Inspector        General   for     their
information.

      We appreciate      the     courtesies        and cooperation         extended    to our
representatives     during       our survey.

                                                   Sincerely      yours,




Enclosures    - 2

cc:   Assistant   Secretary         of    State
         for Administration
      Inspector   General




                                                  - 8 -
       ENCLOSURE I                                                                                                    ENCLOSURE I
                      COMPARISON OF SALES PRICES OF VEHICLES                                   SOLD OUTSIDE         THE
                      U.S.          COMMUNITY BY EMBASSY AND NON-EMBASSY PERSONNEL--

                                                                   (SELECTED TRANSACTIONS)
                                           EmbdSSy         sdles                                        Non-Embassy                    scilesl/
                                                      Ddtf?          of   PurchdSc?    SdleS      Jdn./Feb.      1977              SdleS       prices
                 Vehicle                                   sdle            price       price         of SdnK?/SiTIildr                     vehicles
1974     Ford       MUStdng                           l/           7/76    $4,100     $3,605      1974   Ford       !'~UStdng                     $ 5,000
                                                                                                  19?4   Ford       MUStdnCj                        6,000
                                                                                                  1974   Ford       Mustdng                         6,000
1974     Ford       Gran          Torino              4/16/76                5,600     5,013      1973 Grdn         Torino                           4,500
                                                                                                  1975 Gran         Torino                         10,000
                                                                                                  1974   POntidC              b?ITIdnS               6,483
1974     Ford       LTD                               5/11/76                5,414     5,407      1973   Ford       LTD                             '-I , 2 2 7
                                                                                                  1975   Ford       LTD                            15,000
                                                                                                  1974   PontidC              Lemdns                6,483
1974    Olds        CUtldSS                           5/18/76                5,800     5,797      1975   Olds       CUtldSS                        13,000
                                                                                                  1974   PoIItidC         h3IIdnS                   6,4tj,?
1975    Chevrolet                                     6/16/76                5,402     5,402      1975 Monte          cdrlo                        13,6OC
                                                                                                  1975 Olds         Cutldss                        13,000
                                                                                                  1975 Ford         Grdnddd                        10,100
                                                                                                  1975 Ford         Grdnddd                        11,000
                                                                                                  1975 Ford         Grdnddd                         7,000
1975    Ford        Grdllddd                         11/23/76                4,905     4,905      1975   Ford       Gtdnddd                         7,000
                                                                                                  1975   Ford       Grdnada                        10,000
                                                                                                  1975   Ford       Grdnddd                        11,300
1974    TOyOtd          Corolld                       l/26,.76               2,315     2,312      1974   TOyotd         CvrOlld                     4,500
                                                                                                  1974   Toyota         Corollii                    5,500
                                                                                                  1974   TOyOtd         Corolla                     6,000
1974    Chevrolet                 Impdld              S/27/76                4,024    4,024       1974   Chevrolet               NOVd               5,395
                                                                                                  1974   PontidC              LeKIdnS               6.483

           .
                                                                                                                                                      .




           ENCLOSUREI                                                                                  ENCLOSUREI

                                     EIIIbdSSy      SdleS                                            Non-Embdssy                SdleS
                                                  Ddte      of                                 Jdn./Feb.         .1977        SdleS       prices
               Vehicle                              Sdl@              price          price       of sdIIIe/simildr                    vehicles
1974   TOyOtd          Cordlld                   6/ 9/76              S?,SOO     $2,899        1974 TOYotd          COrOlld                $ 4,500
                                                                                               1974 Toyotc          COrolld                  5,500
                                                                                               1974 Tuyotd          COrOlld                  6,000
1974 Ford          MUStdng                       8/18/'76             4,000          4,000     1974 Ford       MUStdng                        5,000
                                                                                               1974 Ford       MUStdI-KJ                      6,000
                                                                                               1974    Ford    b!Ustdng                       6,000
1974 Dodge          DdCt                         9/ 7/76              3,765          3,557     1974 Dodge Ddrt                                6,850
1975 Mercury               Mondrch                7/ G/76             7,271          7,209     1975    Ford    GITdnddd                      7,000
                                                                                               1975    Ford    Grdnddd                      10,100
                                                                                               1975    Ford    Grdtlddd                     13,000
                                                                                               1975    Olds    CUt1dS.s                     13,000
1474 Mercury               Comet                  7/12/76             5,700          5,700     1974 Mercury Comet                             9,159
                                                                                               (sale occurred l/8/76)
1974 Chevrolet               VeCjd                8/ 6/76              3,800         3,795     1974    Chevrolet              Vega            4,000
                                                                                               1974    Chevrolet              Vegd            3,650
                                                                                               1974    Chevrolet              Vega            5,200
                                                                                               1974    Chevrolet              vegd            5,000

l/All      SdleS       trdnsdction               of the      SdIIIe   wdel     and    yedr   vehicle    ds    the     EmbdSSy            vehicle
    sold     dre     included.
ENCLOSUREI I                                                                                                           ENCLOSUREII

                                                     NAVY EXCHANGEPURCHASES

                                               BY ONEINDIVIDUAL (AND DEPFNDENTS)

                                                         .
                                                               FOR GIFTS

                                    1976                               1975                            1974
                         'Number of items        Price       Number of items        Price    Number of items       Price

      Clothing                                                *Jacket          $    .39.00     Jacket              $35.60
                                                               Jacket                13.50     Jacket                35.00
                                                                                               Jacket                16.00
                                                                                               Jacket                35.00
                                                               Jacket, Suede         20.00
                           Slacks              $ 16.70         Slacks                16.80   3 Slacks               33.00
                           Slacks                16.00         Slacks                26.00
                                                               Slacks                31.00
                                                               Slacks                26.00
                                                               Slacks set            24.00
                                                             2 Jeans                 15.00
                                                               Sweater               11.00
                           Shirt                 11.00
                                                                                             6 Shirts,    sports    30.00
                                                               Top                   39.00
                                                               Robe                  20.00   2 Robes                20.00
                                                               Gown                   6.75     Gown set              6.75
                                                               Various   clothing    79.50
                           Shoe;                 17.50
                           Shoes                 18.00
                           Shoes                 29.00

      Personal   items   2 Wallets,   ladies     11.00       3 Wallets,   ladies     16.50   3 Wallets,  ladies      25.00
                                                               Man's watch           40.00     Man's watch           40.00
                                                               Ladles watch          54.00
                                                               Cuff links            29.00
                                                               Ring                 104.00
                                                               Diamond ring         135.00
                                                               Men's cologne          3.70
                           1976                        1975                             19i4
                 Number of items   Price     Number of items        Price     Number of items
                                                                                         --     Price

Personal items                                 Men's gift set$        5.50
      (con't)                                  Various
                                                cosmetics            39,00
                                               Various
                                                cosmetics            35.45
                                             3 Bubble baths          35.50

Baby goods                                   2 Nurser sets           17.00
                                               Nurser sets            7.00
                                               Baby crib             60.00
                                               Baby mattress         21.00
                                             2 Diapers               10.00
                   Stroller        $ 26,50

Bedding          2 Sheets            21.00     Blanket, bed-
                                                spread and 2
                                                pillowcases          48.00
                                             5 Blankets              57.00
                                               Blanket                9.00      Blanket         $   12.00
                                               Electric   blanket    18.50
                                               Bedspread             22.50      Bedspread           22.50
                                               Bedspread             23.50      Bedspread           24.00
                                               Bedspread             15.00
                                               Pillowcase             2.95      Pillowcase           2.95
                                                                              2 Pillowcases          6.00
                                                                                Pillowcase           3.00
                                             2 Sheets                  7.00   2 Sheets               fi,oo
                                                                              4 Sheets              42.00

Dinnerware         Wine decanter     20.50     Wine decanter         12.00
                   Wine decanter     13.00     Wine decanter         11.50
                                               Dinner set            60.00
                                               Dinner set            55.00
                                               Dinner set            39.00
                                               Dinner set            15.00      Dinner    set       15.00
                                               Dish set              17.00
                                               Dish set              15.00
                                                          .
                                                                                                                   l




                        1976                           1975                                1974
              Number of items      Price     Number of items            Price    Number
                                                                                 --     of items        Price

Dinnerware    2 Cookware sets      $ 29.00     Cookware set $            14.50
    (can't)                                    Cooking plate             21.75
                                                                                   Silverware          $ 54.50
                                               Tray cart                  8.00

Other                                          Luggage, 3 suiter         39.00
                Luggage, pullman     64.00
                Luggage,
                 overnight           26.00
                                               Tote bag                  25.50
                                               Astray and
                                                lighter                  31.00
                                               Table lamp                14.00
                                                                                   Rug                    24.00
                                                                                 3 Tapes                   15.50
                                                                                   'Jnnis racket           32.00
                                             2 Electric       heaters    54.00   2 Electric  heaters    -- 54.00

                                   $319.20                      .   $1,618.90                          $589.80
                                                                                                        -.
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                                                         APPfWVAL                    FOR RELEASE            AND DISTWIBUTION                 OF REPORT
                                      WGWED        III    OFFICIAL           OTHER         WAR    WE    COMPTROLLER             CEMCRAL     OR    DIVWOY        DIRECTORY

TIYLE        Of        REPOCW       AtdD    ASIiCHYEW1               CODE                                                                                  1
                                                                                                                                                                               INSTRUCYIOHS
 Letter                  report  on Survey of Ration                                             Control           Systems
                                                                                                                                                                    htmctlcnm    for prcp.rmg    thm
 in the                  Far East (Code 963060)                                                                                                                    form WC rontolncd     ,n Chapter  10
                                                                                                                                                                   of the Report Menub


NAYE        OF        OFFICIAL        TO   SIGN    Rl?P-Rt                                                 TITLE                                                               OATE    IISUCD

W. H. Sheley,                              Jr.                                                           1 D=-
                                                                                                            irectoQEB,_. _-                  ID                                  f-     26.77
                                                                                      INITIAL     EXOEWW       &L     DISTRIWJTIOM
 NO. Of                                                    UEClPfLNt
                                                                                                                    ro. OF                                        RLCIPILNT
 COPILS                                                                                                             :oPILs


   2                  The Honorable   Leonard                                        Unger                            1          Inspector            General,                Washington,              D.C.
                        American   Ambassador
                        U.S. Embassy                                                                                  3          Director,        Operations    Analysis   and
                        Taipei,  Taiwan                                                                                              CA0 Liaison       (BF/OAC)
                                                                                                                                       Department    of State,    Washington,                                  D.C.

   1                  Assistant   Secretary                                 of        State
                         for Administration
                  I        Was~C.
                                                                                 .    IWiTlAL     IWTERYI           DlSTff
 NO. OF                                                                                                             10. OF
                                                           IPBCIPILHT                                                                                             ClECtPlLMT
 COPIES           I                                                                                                 :OPILS


        I                DIRECTOR,           OFFICE           OF       I’OLICV                                                   Mr.      Conahan,             Associate              Director,          ID
                         Cogt~izrmt   fhie~eo Oiroctsr                        FPCD
 3b’                      b.       H. L. Krieger                                                                                 Mr.      Sheiey,          Jr.,         Director,               FEB,    ID
       3                  Chief,    8Jstrlbuclsn          Sorrion,          OAf’S


        1                Mr.       Fasick,               Director,                    ID




                                                    APPROVAL                 FOR       RELEASE         OF REPORT          AND     T2AHSYITTAL          LETTERS