An Act to amend title 10, United States Code, to exempt certain contracts with foreign contractors from the requirement for an examination-of-records clause
PL 89-607 (H.R.3041), enacted 09/27/1966

850 
PUBLIC LAW 89-607-SEPT. 27, 1966 
[80 
STAT. 
Notice to 
Congress. 
oiScers on active duty in the Air Force occur within a short period of 
time and that such changes seriously impede promotions to the grade 
of major and lieutenant colonel as determined by the Secretary of the 
Air Force, who shall notify the Committees on Armed Services of the 
Senate and of the House of Representatives not later than 60 days 
following the utilization of any of the numbers covered in this sentence. 
Approved September 26, 1966. 
Public Law 89-607 
September 27, 1966 
[H. R. 3041] 
Certain con-
tracts. 
Examination-of-
records clause, 
exemption. 
70 A Stat. 127. 
70A Stat. 132; 
7 2 Stat. 967; 
76 Stat. 529. 
AN ACT 
Exceptional 
conditions. 
Report to 
Congress. 
65 Stat. 700. 
To amend title 10, United States Code, to exempt certain contracts with foreign 
contractors from the requirement for an examination-of-records clause. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That chapter 137 
of title 10, United States Code, is amended as follows: 
(1) Section 2310(b) is amended— 
(A) by striking out the words "or section 2307(c)" and in-
serting the words "section 2307(c), or section 2313(c)" in place 
thereof; and 
(B) by striking out the words "or (4)" and inserting the 
words " (4) clearly indicate why the application of section 2313 (b) 
to a contract or subcontract with a foreign contractor or foreign 
subcontractor would not be in the public interest, or (5)". 
(2) Section 2313 is amended— 
(A) by striking out the word "Each" in subsection (b) and 
inserting the words "Except as provided in subsection (c), each" 
in place thereof; and 
(B) by adding the following new subsection at the end thereof: 
"(c) Subsection (b) does not apply to a contract or subcontract with 
a foreign contractor or foreign subcontractor if the head of the agency 
determines, with the concurrence of the Comptroller General or his 
designee, that the application of that subsection to the contract or 
subcontract would not be in the public interest. 
However, the con-
currence of the Comptroller General or his designee is not required— 
" (1) where the contractor or subcontractor is a foreign govern-
ment or agency thereof or is precluded by the laws of the country 
involved from making its books, documents, papers, or records 
available for examination; and 
"(2) where the head of the agency determines, after taking 
into account the price and availability of the property or services 
from United States sources, that the public interest would be best 
served by not applying subsection (b). 
If subsection (b) is not applied to a contract or subcontract based on 
a determination under clause (2), a written report shall be furnished 
to the Congress." 
SEC. 2. Section 304(c) of the Federal Property and Administrative 
Services Act of 1949, as added by the Act of October 31, 1951, chapter 
652 (41 U.S.C. 254(c)), is amended by adding the following new 
sentences at the end thereof: "Under regulations to be prescribed by 
the Administrator, however, such clause may be omitted from con-
tracts with foreign contractors or foreign subcontractors if the agency 
80 STAT. ] 
PUBLIC LAW 89-608-SEPT. 30, 1966 
851 
head determines, with the concurrence of the Comptroller General of 
the United States or his designee, that the omission will serve the best 
interests of the United States. However, the concurrence of the 
Comptroller General of the United States or his designee is not re-
quired for the omission of such clause— 
" (1) where the contractor or subcontractor is a foreign govern-
ment or agency thereof or is precluded by the laws of the country 
involved from making its books, documents, papers, or records 
available for examination; and 
"(2) where the agency head determines, after taking into 
account the price and availability of the property or services from 
United States sources, that the public interest would be best 
served by the omission of the clause. 
If the clause is omitted based on a determination under clause (2) a 
written report shall be furnished to the Congress. The power of the 
agency head to make the determination specified in the preceding 
sentences shall not be delegable." 
SEC. 3. Section 3(b) of the Act of August 28, 1958 (50 U.S.C. 
1433(b)) is amended by adding the following new sentences at the 
end thereof: "Under regulations to be prescribed by the President, 
however, such clause may be omitted from contracts with foreign con-
tractors or foreign subcontractors if the agency head determines, with 
the concurrence of the Comptroller General of the United States or 
his designee, that the omission will serve the best interests of the United 
States. However, the concurrence of the Comptroller General of the 
United States or his designee is not required for the omission of such 
clause— 
(1) where the contractor or subcontractor is a foreign govern-
ment or agency thereof or is precluded by the laws of the country 
involved from making its books, documents, papers, or records 
available for examination; and 
(2) where the agency head determines, after taking into ac-
count the price and availability of the property or services from 
United States sources, that the public interest would be best served 
by the omission of the clause. 
If the clause is omitted based on a determination under clause (2), a 
written report shall be furnished to the Congress." 
Approved September 27, 1966. 
Exceptional 
conditions. 
Report to 
Congress. 
7 2 Stat. 972. 
Exceptional 
conditions. 
Report to 
Congress. 
Public Law 89-608 
AN A C T 
September 30, 1966 
To extend the authority for the payment of special allowances to evacuated 
[H. R. 11979] 
dependents of members of the uniformed services, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 2 of 
the Act of May 22, 1965, 79 Stat. 117, is amended by striking out 
"June 30, 1966" and substituting in lieu thereof "June 30, 1971". 
SEC. 2. Section 405a(a) of title 37, United States Code, is amended 
by striking out "from places outside the United States to places inside 
the United States". 
Approved September 30, 1966. 
Uniformed serv-
ices. 
37 u s e 405a 
note.