by the export sale of agricultural commodities, instead of appropriated dollars, are used to pay for needed goods and services. Such transactions contribute significantly to the betterment of the U.S. balance-of-payments position. The Commodity Credit Corporation (CCC) is reimbursed in dollars by the agency for which goods and services are procured. Reimbursement is received as goods are delivered or services performed.

Details of barter activities for the reporting period were as follows:

1. Contracts valued at $210 million were signed for procurement abroad of goods and services for overseas installations of the Department of Defense. CCC received $186 million from DOD as reimbursement for goods delivered and services performed under existing and new barter contracts.

2. Contracts for procurement of foreign-produced goods and services for delivery abroad on behalf of the Agency for International Development had a value of $40.8 million. AID reimbursed CCC for $56.8 million in goods delivered and services performed under existing and new barter contracts.

3. Barter contracts for strategic materials for transfer to the supplemental stockpile totaled $8.8 million. Strategic materials valued at $28.8 million were delivered to CCC under existing and new barter contracts and materials valued at $32.3 million were transferred to the stockpile.

4. CCC received $15.6 million as reimbursement for financing delivery of uranium concentrates for the Atomic Energy Commission under barter contracts entered into in fiscal year 1966.

(NOTE. Reimbursements received by CCC do not agree with new barter contracting figures for any given period because of variations in contract terms and performance periods. Full performance often takes place in a period subsequent to that in which a contract is signed.)

V. AVAILABILITY

OF FOOD AND FIBER IN EVENT OF NUCLEAR ATTACK

A policy statement issued by OEP during the year stated in part: (1) That sufficient food would be available nationally (following nuclear attack) to feeď the surviving population, and (2) that, while there may be areas where transportation is temporarily disrupted, transportation generally would be available to move food stocks to areas of need within a short-time postattack.

VI. AVAILABILITY OF FUNDS

During fiscal year 1967, a total of $266,245 was received by transfer from the Office of Emergency Planning to enable the Secretary of Agriculture to coordinate and provide supervision and direction to the civil defense and defense mobilization responsibilities delegated to the Department by Executive Order 10998 and other authorities.

EXHIBIT 1

[Reprinted from Federal Register, Wednesday, May 3, 1967]

DEPARTMENT OF AGRICULTURE

Office of the Secretary

PROCEDURE GOVERNING PETITIONS AND APPEALS

Notice of Proposed Standby Defense Food Order

Notice is given hereby that a standby order is being developed to aid in carrying out the emergency responsibility of the U.S. Department of Agriculture in the event of nuclear attack upon the United States. Such order would be a part of the regular, ongoing defense preparedness plans of the Department, as a standby measure designed to be issued and made effective, under applicable authority, only if this country is attacked with nuclear weapons. It would afford any person affected by any other Defense Food Order an avenue for asserting that compliance therewith would work an exceptional or unreasonable hardship upon him, and a procedure for petitioning for appropriate relief.

The purpose of this notice is to allow and encourage the affected industries to become familiar with the basic framework of management policies and procedures under conditions of the most extreme national emergency, and to afford interested persons the opportunity to submit relevant data, views, and comments..

AUTHORITY: Sections 101, 701-705, 707, 709, 713, 64 Stat. 799 et seq., as amended (50 U.S.C. App. 2071, 2151-2155, 2157, 2159, 2163); E.O. 10480, as amended (50 U.S.C. App., note under section 2153); E.O. 10998 (27 F.R. 1524, 3 CFR, 1959-63 Comp., p. 543); Defense Mobilization Order 8400.1 (28 F.R. 12164, 32A CFR DMO 8400.1).

SECTION 1. Purpose. This order sets forth the procedure for filing petitions, for actions on such petitions, and for appeals from such actions, pursuant to Defense Food Orders providing for petitions and appeals under this order.

SEC. 2. Definitions. (a) “Defense Food Order" means (1) a Defense Food Order, Suborder, or Amendment thereof issued by an authorized representative of the U.S. Department of Agriculture, or (2) other order, regulation, or directive under defense authorities, administered in whole or in part by the U.S. Department of Agriculture.

(b) "Order Administrator" means any person designated to administer the Defense Food Order which is the subject of a petition or appeal.

(c) "Appeals Board" means the U.S. Department of Agriculture Defense Food Order Appeals Board established pursuant to section 6 hereof.

(d) "Petition" means a written request signed by a person, or his authorized representative, seeking relief from the provisions of a Defense Food Order. (e) "Appeal" means a written request signed by a person, or his authorized representative, seeking review by the Appeals Board of final action taken on a petition by the Order Administrator.

SEC. 3. Basis for petitions. The basis for a petition shall be exceptional or unreasonable hardship or other grounds as may be provided in the Defense Food Order under which a petition is filed.

SEC. 4. Procedure for filing and contents of petitions. Petitions shall be filed with the appropriate Order Administrator. Each petition shall set forth all pertinent facts, the Defense Food Order involved, the nature of the relief sought, and the justification therefor.

SEC. 5. Action on petitions and right of appeal. (a) The Order Administrator shall consider the petition and notify the petitioner in writing as to the action taken. Within 10 days after receiving such notification of the action taken, the petitioner may request in writing reconsideration thereof by the Order Administrator, stating new evidence or other basis for such reconsideration.

(b) Following reconsideration, the Order Administrator shall promptly notify the petitioner in writing of his determination. The petitioner may file an appeal, in the manner prescribed in section 7 of this order, within 15 days after receiving such notification of the determination.

SEC. 6. Appeals Board. There is hereby established a U.S. Department of Agriculture Defense Food Order Appeals Board, which shall consider all appeals filed pursuant to this order. The Secretary of Agriculture shall appoint the Appeals Board consisting of three members, each with an alternate, one of whom shall be appointed as Chairman. In the absence of a member of the Board, his alternate shall act in his place. Agreement by two members of the Appeals Board shall constitute a determination by the Board.

SEC. 7. Procedure for filing appeals. An appeal shall be filed with the Order Administrator and shall set forth (1) the name, address, and business of the appelant; (2) the nature of the action appealed from, including but not being limited to, its date, case or other identifying number, and the Defense Food Order involved; (3) the basis for the appeal; and (4) a request for a hearing and the justification therefor, if the appellant desires a hearing in the matter.

SEC. 8 Action on appeals (a) The Order Administrator shall forward such appeal promptly to the Appeals Board. The Appeals Board shall docket such appeal and, in its discretion, may hold a formal or informal hearing on such apppeal either upon its own initiative or upon request by the appellant

(b) If a hearing is to be held, the Appeals Board shall fix the date, time, and place and shall so notify the appellant and the Order Administrator. The Appeals Board may also arrange for participation in such hearing by other ap

propriate persons or Government officials. An appellant may be represented by counsel or other person. If he is represented by counsel or other person but is not present at the hearing, the appellant must notify the Appeals Board in writing that he has authorized such counsel or other person to represent him. (c) (1) The Chairman of the Appeals Board shall notify in writing the appellant, the Order Administrator, and other parties to the appeal, of its decision. Within 15 days following receipt of such notification of the decision of the Appeals Board, the appellant or any other party to the appeal may file a request that such decision be reconsidered. Upon a showing of good cause in such request, the Appeals Board shall reconsider its decision, and promptly notify the parties of its final action.

(2) Additional copies of this proposed standby Order may be obtained from the Defense Programs Branch, Transportation and Warehouse Division, Consumer and Marketing Service, U.S. Department of Agriculture, Room 250, Liberty Loan Building, Washington, D.C. 20250 (Telephone : Dupont 8-7173). Any person who wishes to submit written data, views, or comments concerning the foregoing proposal may do so by filing them in duplicate with the Hearing Clerk, U.S. Department of Agriculture, Washington, D.C. 20250, within 90 days after publication of this notice in the Federal Register.

(3) All written submissions made pursuant to this notice will be made available for public inspection at such times and places in a manner convenient to the public business (7 CFR 1.27(b)).

Done at Washington, D.C., this 27th day of April 1967.

ORVILLE L. FREEMAN, Secretary.

[F.R. Doc. 67-4909; Filed, May 2, 1967; 8:45 a.m.]

FOOD MANAGEMENT

Notice of Proposed Standby Defense Food Order

Notice is given hereby that a standby order is being developed to aid in carrying out the emergency responsibility of the U.S. Department of Agriculture in the event of nuclear attack upon the United States. Such order would be a part of the regular ongoing defense preparedness plans of the Department as a standby measure designed to be issued and made effective, under applicable authority, only if this country is attacked with nuclear weapons. It would provide a framework within which suborders could be issued to meet specific needs at any time and place. It would recognize the possibility of a temporarily fragmented nation by being so designed as to permit issuance and administration at county, State or National levels of the Department's emergency organization as the circumstances may require.

The purpose of this notice is to allow and encourage the affected industries to become familiar with the basic framework of management policies and procedures under conditions of the most extreme national emergency, and to afford interested persons the opportunity to submit relevant data, views and comments. PROPOSED STANDBY DEFENSE FOOD ORDER No. 2

AUTHORITY: Sections 101, 701-705, 707, 709, 713, 64 Stat. 799 et seq., as amended (50 U.S.C. App. 2071, 2151-2155, 2157, 2159, 2163); E.O. 10480, as amended (50 U.S.C. App., note under sec. 2153); E.O. 10998 (27 F.R. 1524, 3 CFR 1959-63 Comp., p. 543); Defense Mobilization Order 8400.1 (28 F.R. 12164, 32A CFR DMO 8400.1); Assignment of Defense Responsibilities in USDA (29 F.R. 3820); as amended; Delegation 1-Emergency Delegation of Priorities and Allocations Powers (29 F.R. 3824).

SECTION 1. Purpose. The purpose of this order is to provide a means for the orderly maintenance of processing, storage, and wholesale distribution of food in the present emergency. It provides also a means of encouraging conservation and efficient utilization of food. It is intended as a temporary mechanism, to be replaced by more specific and specially tailored procedures when conditions improve sufficiently to render such procedures practicable.

SEC. 2. Definitions. As used in this order and in suborders issued pursuant hereto :

(a) “Order Administrator" means the Secretary of Agriculture or any employee of the U.S. Department of Agriculture to whom authority has been or hereafter may be delegated to issue and administer this order or suborders pursuant to its provisions.

(b) “Person” means any individual, corporation, partnership, association, or any other organized group of persons, or legal successor or representative of any of the foregoing. For purposes of this order, the term also includes the U.S. Government and any agency thereof, and the governments of all States, Commonwealths and Territories, the District of Columbia, and any of their political subdivisions and agencies, but such inclusion is with respect only to their status as customers.

(c) "Food" means all commodities and products, simple, mixed, or compound, or complements to such commodities or products, that are capable of being eaten or drunk, by either human beings or animals, irrespective of other uses to which such commodities or products may be put, at all stages of processing from the raw commodity to the products thereof in vendible form for human or animal consumption. For the purposes of this order the term "food" shall also include all starches, sugars, vegetable and animal fats and oils, cotton, tobacco, wool, mohair, hemp, flax fiber, and naval stores, but shall not include any such material after it loses its identity as an agricultural commodity or agricultural product. (d) "Food facilities" means any or all individual plants or establishments in which or from which food is processed, stored, or distributed to customers.

(e) "Food producer" means any person operating a farm, ranch, or other enterprise for the production of unprocessed food for sale.

(f) "Food processor" means any person engaged in the business of altering or converting food from a raw, live, or semiprocessed state to a processed product ready for consumption or further processing.

(g) "Food wholesaler" means any person engaged in the business of assembling food for sale or other distribution to persons other than ultimate consumers. The term includes purveyors to hotels and restaurants; the bulk warehouse operations of any person distributing food primarily to his wholly owned, member, or associated, food retailers; such persons as assemblers or country shippers of fruits and vegetables, eggs and other foods similarly handled; and food producers when selling or distributing food of their own production to other than assemblers, country shippers, processors or ultimate consumers. The term relates only to establishments where food is assembled, stored, packed or repacked or otherwise handled, and excludes brokers and central sales offices located elsewhere.

(h) "Respondent" means any food processor or food wholesaler who is subject to the provisions of this order.

(i) "Food retailer" means any person engaged in the business of distributing food to ultimate consumers, including among others, any person engaged in (1) the operation of food stores which are wholly owned by a chain or are members of or associated with a wholesaling cooperative or association; (2) the operation of an institutional or in-plant food service or other away-from-home eating place; or (3) on-site preparation of food incidental to on-site consumption or sale to ultimate consumers.

(j) "Customer" means any person, other than an ultimate consumer, to whom a food wholesaler or food processor sells or delivers food under the provisions of this order or to whom he customarily has sold or delivered food.

(k) "Ultimate consumer" means any natural person or household procuring, holding, or preparing food for final consumption by such a person or within such a household, and any person receiving food service at an institutional, in-plant or other away-from-home eating place.

(1) "Distribute" or "distribution" means the act of consigning or physically moving, transferring or delivering food to customers.

(m) "Lot" or "shipment" means any specific quantity, usually a number of packages or a bulk quantity by weight or volume, of food being or to be (1) sold,

offered or contracted for sale; (2) processed, offered or contracted for processing; or (3) transported, offered or contracted for transportation.

(n) "Resupply base" means either or both of the specific terms defined as follows:

(1) "Special Product Base" is a quantity to which a special and separate percentage rate of resupply is applied, and means that quantity, in terms of dollar volume, of sugar and sweeteners, or other specified food or group of foods found to be in critically short supply or because of its nature to be inappropriate for inclusion in a General Products Base, which a particular respondent distributed to a particular customer during a specified base period, computed in accordance with section 6 hereof;

(2) "General Products Base" is an aggregate quantity to which a general percentage rate of resupply is applied, and means that quantity, in terms of aggregate dollar volume, of all of the types or kinds of food, except foods excluded pursuant to section 6(c) (3) hereof, which a particular respondent distributed to a particular customer during a specified base period, computed in accordance with section 6 hereof.

SEC. 3. Territorial scope. The provisions of this order and of any suborders issued pursuant hereto shall be applicable within

1

SEC. 4. Applicability. Subject to the exceptions provided for in section 9 hereof, the provisions of this order and of any suborders issued pursuant hereto shall apply:

(a) To any or all persons with respect to the operation and utilization of their respective food facilities; and

(b) To any or all persons with respect to distribution of food, except those persons specifically and individually exempted from the provisions hereof by an applicable suborder issued pursuant hereto: Provided, That no such suborder shall be issued unless and until the Order Administrator is satisfied that distribution of the food stocks of the persons thus exempted is being regulated by the government of the State or a subdivision thereof in a manner having substantially the same effects as those required to accomplish the purposes hereof with respect to distribution of food to civilians.

SEC. 5. Contracts and other obligations. (a) Except with respect to military requirements as provided for in section 7(e) hereof, the provisions of this order and of suborders issued pursuant hereto and the requirements thereunder shall be observed without regard to contracts or obligations heretofore or hereafter entered into, or any rights accrued or payments made thereunder.

(b) No person shall be held liable for damages or penalties for any default under any contact when such default results directly or indirectly from compliance with this order or any suborder issued pursuant hereto or any requirement thereunder.

SEC. 6. Resupply bases—(a) General. Resupply bases shall be one or the other, or both, of the kinds defined in paragraph (n) of section 2 hereof. They shall be established according to the general rules set forth in this section, and to the specific provisions of any applicable suborder issued pursuant hereto. In the event of termination of suborders pursuant to the provisions of section 7(a) (2) (i) hereof, resupply bases established pursuant to any terminated suborders shall remain in full force and effect unless and until a subsequent suborder issued pursuant hereto requires modification or termination thereof.

(b) Who shall establish resupply bases. (1) Each respondent shall establish from his own records resupply bases for each of his regular customers as required under this order or any suborder issued pursuant hereto.

(2) The Order Administrator shall establish resupply bases for persons for whom respondents have no records of prior distribution, and in doing so he may rely upon the records of such persons or upon such other information as is available to him.

(c) General rules for establishment of resupply bases. (1) For purposes of this order, each respondent shall classify his operations according to the following classes: (i) "Continuous," meaning that respondent's distribution of food proceeds at a substantially constant rate throughout the year; or (ii) “intermittent," meaning that respondent's distribution of food characteristically increases or decreases markedly in certain seasons of the year because of the seasonal

1 EXPLANATORY NOTE (Not part of this order): This order may be issued simultaneously at any or all operating levels of the USDA emergency organization. Only this provision and the suborders provided for will vary. The description of the specific jurisdiction to be inserted in this space may be amended from time to time by the Order Administrator at State or higher levels to meet prevailing conditions.