(4) That you further certify on the basis of information obtained from such sources as are available to you, that, to the best of your information and belief, the purchase price is no higher than the market price (which shall mean the export market price where such a price is customary in the trade) prevailing in the United States at the time of the purchase, adjusted for differences in the cost of transportation to destination, quality, and terms of payment.

(5) That payment under said contract is not based on cost-plus-a-percentage-of-cost.

(6) That you will furnish promptly to the Administrator at his request such information in such form as the Administrator may require concerning price or any other details of the purchase.

(7) That each voucher presented by you under this letter of commitment will cover an amount due you under said contract for which you have not received payment, and if for any reason you are not entitled to such payment under the terms of this letter of commitment you will promptly after discovery of such reason make appropriate reimbursement to the Administrator with respect to any amounts paid you under this letter of commitment: Provided, That adjustments arising out of the terms of the contract or the normal customs of the trade shall be made direct to the buyer (or otherwise in accordance with the arrangement between the parties) but the undersigned will promptly notify the Administrator concerning any such adjustment, so that the Administrator may obtain appropriate reimbursement from the participating country.

(8) If the said contract is on a c. & f. (cost and freight) basis, that you are entitled to payment under ECA Regulation 1, as amended October 15, 1948, of any ocean freight charges included in any vouchers presented by you under this letter of commitment.

Amendments to the above described contract shall become effective only upon the approval of the Administrator.

Your acceptance of the terms and conditions hereof shall be indicated by causing your duly authorized officer or officers to execute the two enclosed counterparts hereof and by then returning one of such counterparts to this office. This letter of commitment shall become effective when you have so indicated your acceptance. Very truly yours,

Administrator for Economic Cooperation for the Government of the United States.

Accepted:

NOTE: This letter of commitment may be assigned only on the reverse side of this page of this letter and only to a banking institution organized under the laws of the United States, any State, Territory, or possession thereof, or the District of Columbia.

This part

§ 202.1 Scope of part. provides the rules under which the Administrator for Economic Cooperation will pay ocean freight charges from a United States port to certain foreign ports of entry on relief packages originating in the United States (including its Territories and insular possessions) and consigned by an individual by parcel post to an individual residing in Austria, Belgium, China, France, the United Kingdom, Greece, Italy, Luxembourg, the Netherlands, or the zones of Germany and Trieste under occupation by the United States, the United Kingdom, or France.

§ 202.2 Definition of relief package. A "relief package" is defined as a gift

parcel, containing articles permitted by § 202.4, to be sent by an individual free of cost to the person receiving it for the personal use of himself or his immediate family.

§ 202.3 Manner of payment of ocean freight charges. The Economic Cooperation Administration will reimburse the Post Office Department for the ocean freight charges on relief packages sent by parcel post by an individual on or after July 6, 1948, to an individual in any of the countries listed above, to the extent that the international parcel post rate paid by the sender has been reduced pursuant to regulations of the Post Office Department.

§ 202.4 Limitations of contents of relief packages. (a) The items which may be included in relief packages are limited to nonperishable food; clothing and clothes-making materials; shoes shoemaking materials; mailable medical and health supplies; and household supplies and utensils, if permitted under existing postal regulations.

and

(b) The combined total domestic retail value of all soap, butter, and other edible fats and oils included in each relief package must not exceed $5.00; and the combined total domestic retail value of all streptomycin, quinine sulfate, and quinine hydrochloride included in each relief package must not exceed $5.00.

§ 202.5 Weight and size limitations. The maximum weight and dimensions of each relief package sent by parcel post must conform to the limitations established by the Post Office Department for the particular country of destination.

§ 202.6 Identification. When a relief package is presented for mailing under the regulations in this part, the words "U. S. A. Gift Parcel" shall be endorsed on the addressee side of the package and also entered on the customs declaration. The use of the words "U. S. A. Gift Parcel" is a certification by the individual mailing the relief package that the provisions of this part have been met.

§ 202.7 Postal regulations. Information concerning the Post Office regulations should be obtained from the local offices of the Post Office Department with respect to size and weight limitations, customs declaration (Form 2966), dispatch note (Form 2972), and the postage rate applicable for such shipments.

§ 202.8 Import regulations. Senders of relief packages are reminded that each

receiving country has import and customs regulations and that certain items may be subject to import restrictions or duties. Information regarding such regulations may be ascertained either from the proposed recipient, from the Office of International Trade, Department of Commerce, Washington 25, D. C., or any of the district offices of the Department of Commerce.

§ 202.9 Saving clause. The Administrator for Economic Cooperation may waive, withdraw, or amend at any time or from time to time any or all of the provisions of this part.

This

§ 203.2 Scope of regulations. part provides the rules under which the Administrator, in order to further the efficient use of United States voluntary contributions for relief in the countries or zones designated in this section will pay ocean freight charges from United States ports to designated foreign ports of entry on supplies donated to or purchased by United States voluntary nonprofit relief agencies registered with and recommended by the Committee, for distribution in Austria, Belgium, China, France, the United Kingdom, Greece, Italy, Luxembourg, the Netherlands, or the zones of Germany and Trieste occupied by the

United States, the United Kingdom, or France.

within § 203.3 Agencies scope of regulations. Any United States voluntary nonprofit relief agency may make application to the Administrator (800 Connecticut Avenue NW., Washington 25, D. C.) for reimbursement of ocean freight charges on shipments of supplies donated to or purchased by it for distribution within the foreign countries and zones listed in § 204.2, Provided:

(a) The agency is registered with and recommended by the Committee to the Administrator;

(b) The supplies are within the general program and projects of the agency as previously submitted to and approved by the Committee, and are essential in support of such programs and projects;

(c) The agency's representatives to whom the supplies are consigned for distribution abroad are acceptable to the Committee;

(d) The Committee has notified the Administrator that;

(1) The agency is not engaged in commercial or political activities;

(2) Contributions to the agency are eligible for tax exemption under income tax laws;

(3) The agency is directed by an active and responsible board of American citizens who serve without compensation;

(4) The accounts of the agency are regularly audited by a certified public accountant;

(5) The agency currently reports its activities and operations to the Committee including its budget and reports of income and expenditures, its transfer of funds, and its exports of commodities and such other information as the Committee may deem necessary, and such reports are open for public inspection;

(6) The general program and projects by countries of operation of the agency have been approved by the Committee to permit the coordination of private agency programs with each other and with the programs of the ECA;

(7) The government of the country in which the supplies are distributed affords appropriate facilities for the necessary and economic operation of the agency's general program and projects;

(8) The supplies are free of customs duties, other duties, toils, and taxes;

(9) The agency has assumed responsibility for noncommercial distribution of the supplies free of cost to the person or persons ultimately receiving them and distribution of the supplies is supervised by United States citizens, and such operations are appropriately identified as to their American character.

§ 203.4 Manner of payment of ocean freight charges. The Administrator will reimburse agencies qualified hereunder, to the extent of ocean freight charges paid by them for shipments made in conformity with the regulations in this part: Provided, That, application for such reimbursement must be submitted to the Administrator, on shipments made during the period July 1, 1948, through September 30, 1948, by October 31, 1948, and on shipments made after September 30, 1948, within 30 days of date of shipment, together with receipted invoices for such charges, supported by ocean bills of lading, showing that such charges are limited to the actual cost of transportation of the supplies from end of ship's tackle at the United States port of loading to end of ship's tackle at port of discharge, correctly assessed at the time of loading by the carrier for freight on a weight, measurement, or unit basis, and free of any other charges

AUTHORITY: §§ 204.1 to 204.3 issued under sec. 104 (f), Pub. Law 472, 80th Cong. Interpret or apply sec. 111, Pub. Law, 80th Cong.

SOURCE: §§ 204.1 to 204.3 contained in ECA Regulation 4, 13 F. R. 3889, except as noted following section affected. Redesignation noted at 14 F. R. 225 and 3280.

§ 204.1 Information required in application for guaranties and place of filing. Applications for guaranties, pursuant to section 111 of the Economic Cooperation Act of 1948, will be made in writing to the Administrator for Economic Cooperation, Washington 25, D. C., containing the following information:

(a) Name and citizenship of applicant; if a corporation, partnership, or other association, the jurisdiction under the laws of which it was created and under which it exists, and evidence that it is substantially beneficially owned by citizens of the United States.

(b) Address of the applicant, and name, title, and address of person or persons authorized to represent the applicant.

(c) Name of participating country in which investment is proposed to be made, and either evidence of approval by that country of the investment as furthering the joint program for European recovery, or a statement of the channel through which negotiations are being or will be conducted for the purpose of obtaining such approval.

(d) Total amount in United States dollars of the guaranty for which application is made.

(e) Description of the proposed investment; where development projects are involved, the description should include engineering and economic surveys, and pro forma balance sheets and income statements.

(f) Statement as to how the projected investment may be expected to affect the foreign exchange position of the participating country, or countries, concerned.

(g) If any part of the investment is to be in a form other than cash, the basis of the evaluation in dollars of the facilities or services proposed as the subject of the investment.

(h) A description of the facilities in which the applicant proposes to invest, proposed location, projected method of operation, and total amount of proposed investment in the project, both in United States dollars and foreign currencies.

(k) Information with respect to the market for the products or services resulting from the project (this to include the domestic market in the participating country, the market in the United States, and the general world export market) and pertinent information with respect to the economic soundness of the project.

(1) Brief statement of history and experience of the investor, commercial, bank, and trade references, and comparative balance sheets and profit and loss statements for the past 3 years, together with a statement as to the availability of funds for the proposed investment, and the source thereof.

(m) A description of all existing investments of the applicant in the country in which the investment covered by the present application is contemplated.

(n) Such further information as the Administrator may require with respect to any application to assist him in the exercise of the authority vested in him by the act.

§ 204.2 Fees for guaranties. The recipient of a guaranty shall pay to the Administrator or his duly appointed representative, annually in advance, a fee of 1 percent per annum of the face amount of such guaranty, unless unusual circumstances are found by the Administrator to exist with respect to any guaranteed investment, rendering it desirable, in furtherance of the purposes of the act, to charge a smaller fee.

§ 204.3 Designation of Export-Import Bank of Washington as agent for the Administrator. By virtue of the powers vested in him under the Economic Cooperation Act of 1948, and with the consent of the Board of Directors of Export-Import Bank of Washington, the Administrator hereby designates ExportImport Bank of Washington as agent for the Administrator and, as authorized and upon the terms specified by the Administrator, to issue in its name and administer the guaranties made under section 111 (b) (3) of the Economic Cooperation Act of 1948, other than guaranties of investments in enterprises producing or

distributing informational media. No amendment other than above expressly stated is hereby made in ECA Regulation 4. Accordingly, applications for guaranties should continue to be made in writing to the Administrator for Economic Cooperation, Washington 25, D. C. [ECA Reg. 4, Amdt. 2, 13 F. R. 8260]

Part 205-Ocean Freight Shipments of of Individual Relief Packages

Sec.

205.1 Scope of part.

205.2 Persons within scope of regulation. 205.3 Manner of payment of charges. 205.4 Definition of relief package.

205.5 Limitation of contents of relief package.

205.6 Saving clause.

AUTHORITY: §§ 205.1 to 205.6 issued under sec. 104 (f), Pub. Law 472, 80th Cong. Interpret or apply sec. 117 (c), Pub. Law 472, 80th Cong.

SOURCE: §§ 205.1 to 205.6 contained in ECA Regulation 5, 13 F. R. 7327. Redesignation noted at 14 F. R. 225.

§ 205.1 Scope of part. This part provides the rules under which the Administrator for Economic Cooperation will make reimbursement for ocean freight charges from a United States port to designated foreign ports of entry on relief packages originating in the United States, its Territories and insular possessions, and consigned to individuals residing in Austria, Belgium, China, France, the United Kingdom, Greece, Italy, Luxembourg, the Netherlands, or the zones of Germany and Trieste under occupation by the United States, the United Kingdom, or France, which relief packages are assembled and shipped by persons in the manner provided in this part.

§ 205.2 Persons within scope of regulation. Any person, including individuals, partnerships, corporations or associations, shall be entitled to make shipments under the provisions of this part provided such person has complied with the requirements for export established by the Office of International Trade, Department of Commerce, covering such shipments, including the filing with the collector of customs of a fourth copy of the export declaration with a list attached thereto of the names and addresses of the donors in the United States and the individual donees abroad who are to receive the parcels included in the

shipment, and provided such person assembles and ships said packages under a general ocean bill of lading for ocean freight shipment.

§ 205.3 Manner of payment of charges. Persons within the scope of this part making shipments of relief packages may make application to the Administrator (800 Connecticut Avenue,

NW., Washington 25, D. C.) within 30

days of each shipment for payment of ocean freight charges. Such application shall be accompanied by a receipted invoice for ocean freight charges, supported by ocean bill of lading bearing the number of the export declaration and of the export license number or symbol under which such shipment was made. In addition, where the shipment is being made by an agent on behalf of another person, the agent must submit an affidavit in form satisfactory to the Administrator certifying that no part of the freight charges for which he seeks payment, as provided in section 117 (c) of the Foreign Assistance Act of 1948, were passed on to the person or persons donating such packages, and that the price charged the donor of each package for the articles contained therein does not exceed the current retail market price of such contents.

The rates which the Administrator will pay, but which in no event shall exceed the actual amount paid for ocean freight, will be based on the following schedules: