Includes new (*) and amended authorizations from Oct. 1, 1963, through Dec. 31, 1963, as follows-Con. 3 Shipments and invoicing complete. Amounts reflected are actual costs. • Less than 500. .New. LONG-TERM SUPPLY CONTRACTS Mr. WHITTEN. What contracts have you entered into under title IV long-term supply contracts, and with what countries? Mr. ESKILDSEN. Would you like to have that for the record, sir? Mr. WHITTEN. We would be glad to have it included in the recor at this point. (The material requested follows:) LONG-TERM SUPPLY CONTRACTS (1) Explanation of program.—Under this program, sales of U.S. surplus ag cultural commodities on a long-term dollar credit basis are made pursuant agreements entered into between the United States and friendly nations, indu ing private trade, or financial institutions acting on behalf of foreign natio The program is designed to assist the economic development of underdeveloped countries and to open up new markets now available on only a cash or shor term credit basis in more highly developed countries. Care is taken to ave displacement of U.S. cash dollar sales or disruption of normal patterns of conmercial trade among friendly countries. Sales agreements provide for delivery of commodities for periods up to 1 years. Commodities, which must be surplus at time of exportation, are to be used for consumption within the recipient country. Credit periods of up 20 years are authorized. The maximum interest rate which may be charged s the cost of funds to the U.S. Treasury. The Commodity Credit Corporation, using its funds and stocks of surp commodities, finances all sales under this program. Costs incurred comprise: 1. Payment at contract price for private stocks exported. 2. The differential between domestic market price and the competitiv world price on commodities exported from private stocks, to be paid in stocks from Commodity Credit Corporation's price-support inventory or in cash f such stocks are not available. 3. Excess of Commodity Credit Corporation's investment value over domestic market value of Commodity Credit Corporation price-support coll modities delivered to exporters. 4. Ocean transportation as authorized. 5. Interest expense on unrecovered portion requiring Commodity Cred Corporation financing, primarily amounts due from foreign governments, t ́ be repaid in future years. Dollar repayments are made by the contracting governments for the exper value of commodities shipped, ocean transportation costs, and interest, as specfied in the agreement. Commodity Credit Corporation absorbs the excess cos of ocean freight as compared with foreign-flag vessel rates on shipments required to be made on U.S.-flag vessels in order to comply with the Cargo Preference Ac (2) Summary of operations, 1963.-Following is a statement of exports a costs for the fiscal year 1963, by commodity: Commodity costs showing amounts financed by CCC (due from foreign governments and from appropriations—Title IV, Public Law 480, fiscal year 1963 1 Represents unused balance of appropriation continued available for 1964 costs. 19, 2150 2,595 73 -46,000,000 1-24, 189,0 Long-term supply contracts: Composition of amounts to be recovered from Balance due from foreign governments at end of year: Principal_- Interest-- Total___ |