the Bank of England was activated, but the swap was shortly reversed as the Federal Reserve again purchased small amounts of sterling in the market as the rate eased.

TITLE IV SALES ON LONG-TERM DOLLAR CREDIT

Title IV of Public Law 480, enacted September 21, 1959, provides for long-term supply and dollar credit sales of U.S. agricultural commodities. Major objectives of this title are to stimulate and increase the sale of U.S. agricultural commodities for dollars, utilize the financial resources made available through their sale on a deferred dollar payment basis to maximize dollar trade and to assist in the economic development of recipient friendly countries.

During the six-month period, July 1 through December 31, 1963, nine additional Title IV government-to-government sales agreements or amendments to agreements were signed with seven foreign countries. As shown in table 21, the estimated export market value of these commodities and applicable ocean transportation costs totaled $32.1 million. From the beginning of the program through December 31, 1963, a total of 33 agreements and amendments have been signed with 17 foreign governments for the export financing of surplus agricultural commodities valued at $176 million, including applicable ocean transportation costs. The financial aspects of these agreements were reviewed by the Council.

During the July-December 1963 period, the United States received from foreign governments dollar payments of $1,366,650 on principal and $758,606 in interest against their obligations under the Title IV program. Through December 31, 1963, the United States received from foreign governments payments of $1,470,446 on principal and $792,438 on interest, or a total of $2,262,883.18

TABLE 21.-Title IV, Public Law 480 commodity sales agreements signed July 1 to Dec. 31, 1963

18 These figures include payments available to the United States Government but not yet credited to the CCC account by that date.

PRIVATE TRADE SALES AGREEMENTS

During the July-December 1963 period, the Department of Agriculture made public the basic policies and procedures for implementing the 1962 amendments to Title IV which authorize the Secretary of Agriculture to enter into long-term dollar credit sales agreements with U.S. and foreign private trade entities. Many inquiries in regard to this new program have been received. Although no private trade agreements had been signed by December 31, 1963, more than a dozen separate applications with a total market value of over $100 million were under active consideration.

UNITED STATES-MEXICAN EXCHANGE AGREEMENT

In December, the Council approved a 2-year extension of the existing exchange agreement in the amount of $75 million between the United States Treasury and the Government and Central Bank of Mexico. The new agreement is designed to assist Mexico in its efforts to promote economic stability and freedom in its trade and exchange system and continues arrangements between the United States and Mexico which have been in effect since 1941.

SALES OF MILITARY EQUIPMENT ON CREDIT TERMS

Under the Foreign Assistance Act of 1961, as amended, the United States is authorized to provide military equipment, materials, and services on a credit basis to friendly countries and international organizations. In the period under review, the Council advised the Departments of State and Defense with respect to the financial aspects of proposed transactions involving the sale of military equipment on credit terms.