This trust fund is used for military assistance cash sales transactions currently authorized by section 507 of the Foreign Assistance Act of 1961, as amended. In 1965 these sales will be authorized by the new military assistance authorization act. The proposed act authorizes the furnishing of defense articles from the stocks of the Department of Defense and defense services to eligible countries and international organizations if they agree to pay the value thereof in U.S. dollars in advance or within 120 days after delivery. Defense articles sold consist largely of aircraft, ships, combat and other vehicles, missiles and electronic equipment. Generally sales of unclassified defense articles are made to the government of any economically developed country under the provisions of this section only if such articles are not generally available for purchase by such countries from commercial sources in the United States. The proposed act provides also that contracts may be entered into for new procurement without charge to any appropriation or contract authorization if the foreign government will provide the United States with a dependable undertaking (1) to pay the full amount of the contract which will assure the U.S. Government against any loss on the contract, and (2) to make funds available when required to meet the payments under the contract. The full amount of the orders received from eligible foreign governments, whether requiring cash in advance, payment within 120 days after delivery, or based on a dependable undertaking, constitutes the contract authority under the proposed legislation. Sales mostly to European countries under the dependable undertaking procedure will constitute the major portion of this program. Program and Financing (in thousands of dollars) (b) Where not required for an author- 2. Maintenance (contributed funds) 1963 actual 1964 estimate estimate 1965 Program by activities: 1. Construction: (a) Where required for an authorized Federal project: (1) Contributed funds. 18,123 27,048 14,840 (2) Advance funds.. 107 1.515 500 Total program costs, funded. Change in selected resources 1. 27 23 -328 -204 545 -171 -171 275 1 Includes capital outlay as follows: 1963, $11 thousand; 1964, $31 thousand; 1965, $22 thousand. Selected resources as of June 30 are as follows: Unpaid undelivered orders, 1962, $235 thousand; 1963, $188 thousand; 1964, $187 thousand; 1965, $63 thousand. Gifts to the Public Health Service, some of which are limited to specific uses by the donors, are expended for the benefit of patients at Public Health Service hospitals, and for research or other activities of the Service (42 U.S.C. 219). Contributions are made by Indians and others to be served, toward the construction, improvement, extension, and provision of sanitation facilities as provided by Public Law 86-121 (42 U.S.C. 2001-2004). Object Classification (in thousands of dollars) 26 Supplies and materials.. 31 Equipment (expensed). Total costs.. 129 Permanent positions.__ 129 Adjustment in selected resources (inventory)....... 129 2 Positions other than permanent. 19 25 23 Rent, communications, and utilities.. 8 25 Other services.. 239 Services of other agencies. 35 68 31 Equipment..... 37 32 Lands and structures.. 118 41 Grants, subsidies, and contributions.. 17 Total obligations.- - - - 10 275 1. Benefit payments.-The Social Security Act provides disability insurance benefits for certain disabled individuals and their dependents. An amount equal to onehalf of 1% of wages paid and three-eighths of 1% of selfemployment income is deposited to this fund for benefit payments and administrative expenses. The excess of income over outgo and annual interest are invested in Government securities. 2. Administration.-The Secretary of Health, Education, and Welfare determines, at the end of each year, that portion of the administrative expenses of the Department of Health, Education, and Welfare which is a proper charge to this fund. The amount shown herein for the administrative expenses includes interest on the unpaid charges and is subject to further refinement of the processes for allocating costs between the Federal old-age and survivors insurance trust fund and the Federal disability insurance trust fund (42 U.S.C. 401). Annual payments are made between this account and the Railroad retirement account so as to place these funds in the same position in which they would have been if railroad employment had been included under social security coverage. FEDERAL DISABILITY INSURANCE TRUST FUND Financing: Advances and reimbursements from 116,221 2,131,354 Other accounts Non-Federal sources 343 687 -855 -723 661 —655 2,246,920 1,198,387 1,223,622 1 Reimbursements from non-Federal sources are derived from furnishing earn ings and employment data for pension purposes to private pension plans; from State agencies for employment statistics and from furnishing wage record information to individuals for purposes other than establishing eligibility or entitle ment to benefits (42 U.S.C. 1306). |