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FOREIGN ASSISTANCE PROGRAMS AND otherwise specified) shall be paid from foreign currencies SPECIAL EXPORT PROGRAMS-Continued acquired under title I. The Department of Defense

reimburses the Corporation for the foreign currencies used. General and special funds-Continued

Pursuant to section 2681(b) of title 10 U.S.C. as amended, PUBLIC LAW 480—Continued

the estimates reflect payment to the Corporation of $6

million each year for amounts due under Public Law 480 1. Sale of surplus agricultural commodities for foreign and the French housing barter transaction discussed under currencies (title I).-Under this title, the United States Commodity Credit Corporation. It is estimated that $4 accepts foreign currency in payment for surplus agricul- million will be applied against Public Law 480 amounts due tural commodities and their products. The main purpose

with a balance of $52.7 million remaining unpaid as of is to increase sales to countries unable to expand commer

June 30, 1966. cial purchases because of a lack of dollar exchange. As the Sales agreements have been signed with 49 countries. economies of countries improve, a gradual shift from title They cover sales of commodities at an export market I purchases to dollar purchases occurs.

value of over $8.9 billion. Major items are wheat, Sales are made only to "friendly nations”-as defined in cotton, and fats and oils—74% of the market value section 107 of Public Law 480, 83d Congress.

total. Foreign currencies received are deposited to the account Agreements signed under title I prior to January 1, 1965, of the U.S. Treasury and can be used only as stated in provide that the United States will finance in dollars thé section 104. The dollar value of such deposits through total U.S.-flag ocean transportation costs, and that the June 30, 1964, amounted to $8.1 billion.

United States will receive foreign currencies in an amount Public Law 88–638 established an advisory committee equivalent to the foreign-flag rates. For shipments reto review the status and use of foreign currencies and quired to be made in U.S.-flag vessels under agreements recommend to the President as to how to assure maximum signed after December 31, 1964, the foreign countries must benefits to the United States from the use of foreign cur- finance in dollars the freight costs equivalent to the foreignrencies and returns from sales made under title I. The flag rate. committee consists of the Secretary of Agriculture, the Agreements may be entered into under title I through Director of the Bureau of the Budget, the Administrator December 31, 1966, which will call for appropriations to of the Agency for International Development, the chair- reimburse Commodity Credit Corporation in a total man and ranking minority member of the House Com- amount not in excess of $2.7 billion plus the unused portion mittee on Agriculture and of the Senate Committee on of prior years' authorizations for title I and dollar reimAgriculture and Forestry: Certain proposals for use of bursements from foreign currency sales. Agreements may currencies or use of principal or interest repayments

not be made during either of the last 2 calendar years of (except pursuant to appropriations) are to be submitted this period which would call for an appropriation in excess to two

of $2.5 billion. Uses fame into two groups—those of benefit to the of The following table reflects the composition of approforeign country, mainly loans and grants to promote priations for 1964, 1965 and 1966 (in thousands of dollars): economic development, and to support common defense, and those of benefit to the United States. The latter includes, among others: Expenses of the U.S. Government Expenses of shipments: abroad; agricultural market development; educational

Commodity Credit Corporation stocks 453,632 209,657 195,164
Private stocks..

1,024,766 1,081,790

1,023,870 exchange; construction of military family housing; sales Ocean transportation..

141,717 145,773

79,484 of foreign currency to U.S. citizens and American tourists.

Foreign currencies for U.S. uses are subject to the Subtotal, expenses of shipments.. 1,620,115 1,437,220 1,298,518 appropriation process. Sales agreements specify particu

unrecovered balance...

16,122 6,001 1,278 lar uses, and in those entered into after December 31, 1964, the amount subject to the appropriation process Total

expenses of shipments... 1,636,237 1,443,221 will increase, with certain possible exceptions, from the Net proceeds from sales of currencies, previous minimum of 10%. Such uses reduce dollar

and loan repayments.-

-13, 188 outflow and the deficit in the balance of payments of the Total current year's costs recoverUnited States. The Corporation is reimbursed for the

able from appropriation.--- 1,636,237 1,430,033 dollar value of currencies so used. In 1964 and 1965, such Unrecovered 1963 costs paid from 1964

funds.. receipts have been applied to reduce prior years' unre

270,730

Unrecovered 1964 costs paid from 1965 covered costs due the Commodity Credit Corporation. funds ...

-454,967 454,967 Dollar repayments of foreign currency loans have also Unrecovered 1965 costs financed by CCC been applied to repay the Corporation. It is anticipated until subsequent appropriation ---

-273,000 that prior years' costs will have been fully paid during

Total available or estimate. 1,452,000 1,612,000 1965. Thereafter, such proceeds will be applied against Proposed supplemental, 1965.

273,000 current costs. The appropriation estimate reflects these as a reduction in the appropriation needed.

Appropriation or estimate...... 1,452,000 1,885,000 Section 509 of Public Law 86-500, approved June 8, 1960 (7 U.S.C. 1704b note) provides that at least 75% of The following table reflects the costs incurred by fiscal the total cost of foreign military housing projects (unless year (in thousands of dollars):

1964 actual

1965 estimate

1966 estimate

Interest expense

on

1.299,796

-155,796

1,144,000

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1,144,000

1, 144,000

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1958. 1959

4M under

1965 estimate

1966 estimate

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Total

Interest

273

Program

for costs incurred of more than $400 million, plus any expenditures Interest

Total 1955.

129,165 355 129,520

unused prior authorization. 1956.

616,964 7,263 624,227 The following reflects the composition of the appropri1957. 1,361,973 34,400 1,396,373

ations for 1964, 1965, and 1966 (in thousands of dollars):
1,089,008 55,710 1,144,718
1,089,071 24,183 1,113,254

1964
1960.
1,279,581 28,388 1,307,969

actual
1961.

1,513,472 43,843 1,557,315 Expenses of shipments:

1,588,020 1962.

18,071 1,606,091 Commodity Credit Corporation stocks. 150,057 140,863 217.007 1963.

1,721,137 18,234 1,739,371 1964.

1,620,115 16,122 1,636, 237 Ocean transportation: 1965 (estimate) 1,437,220 6,001 1,443,221

On above commodities

26,447 25,575 42,354 1966 (estimate) 1,298,518 1,278 1,299,796

On section 416 donations.

51,695 44,100 41,262 Cumulative totals.... 14,744,244 253,848 14,998,092

Total, ocean transportation... 78, 142 69.675 83,616 Deduct sales of currencies, loan repay

Total expenses of shipments. 228, 199 ments, and receipts from Defense De

210,538 300,623 partment...

1,394,288 Purchase of foreign currencies for use in
self-help activities

5,000 Net costs

13,603,804
-13,551,104
Total expenses -

228.199 210,538 Appropriations through June 30, 1966..

305,623

1963 funds applied to 1964 costs -9,956 Unreimbursed costs. June 30, 1966, representing amounts due from

Unrecovered 1964 costs paid from 1965
Defense Department (financed by CCC borrowing authority)... 52,700

funds.

-2,792 2,792 1965 funds not applied to program

7,123 1965 funds to be applied to 1966 costs.

-7,123 2. Commodities disposed of for emergency famine relief to

Appropriation or estimate... 215,451 220,453 friendly peoples (title II).—Under this title, surplus stocks

298,500 of the Commodity Credit Corporation are transferred, on a grant basis, to friendly nations or friendly peoples to meet The following reflects the costs incurred in carrying out famine or other urgent or emergency relief needs. Grants

this program by fiscal years (in thousands of dollars) : are also made under authority of this title to promote economic and community development in underdeveloped

Program

expenditures countries. The Agency for International Development is 1955.

86,623

86,896 responsible for administering the title II programs.

1956.

91,277 2,308 93,585 Public Law 88-638 amends section 203 to provide that

1957.

120,430 4,461

124,891

1958. $7.5 million each year may be spent under this title to

116,001 5,445 121,446 1959.

95,511 2,417 buy foreign currencies accruing under title I to meet

97,928 1960.

93,161 2,339 95,500 (other than personnel and administrative) of cooperating 1961 .

196,109 2,456

198,565 sponsors, distributing agencies, and recipient agencies, such

1962

241,939

241,939 as those for essential tools and equipment. This is to

1963.

215,593

215,593

1964. assure that commodities furnished under titles II and III

228,199

228,199 1965 (estimate)

210,538

210,538 are used to carry out more effectively the purposes for 1966 (estimate).

305,623

305,623 which these commodities are furnished and to promote community and other self-help activities which would

Cumulative totals ..

2,001,004 19,699 2,020,703 alleviate the causes of the need for such aid. In the past 10 years, transfer authorizations were issued

Appropriations through June 30, 1966..

2,020,703 for about $1,446 million worth of food under this title including ocean freight costs. Of this total, $989 million 3. Long-term supply contracts (title IV).—This title, (69%) was for the relief of victims of floods, earthquakes,

which was added in 1959, and amended in 1962, provides droughts and plagues, and for refugees, $165 million (11% for sales of U.S. surplus agricultural commodities under for child feeding, and $292 million (20%) for economic long-term credit and supply contracts. The major obdevelopment. Also, about $280 million was authorized jective is to stimulate and increase sales for dollars through for ocean freight costs on commodities donated under

credit thereby helping the development of foreign markets section 416 of the Agricultural Act of 1949, as amended,

and the economies of friendly nations. making total authorizations of $1,725 million for the 10 years this program has been in effect.

Generally, agreements providing for the delivery of

surplus agricultural commodities over periods of up to 10 Section 203 provides for appropriations to cover costs of these programs. These include commodity costs, ocean

years may be entered into with the governments of friendly

nations, including financial institutions acting on behalf freight on shipments under this title and ocean freight of such 'nations, or with United States and foreign private on shipments under section 416. Also authorized for pay- trade entities. Payments in U.S. dollars for commodities ment from such appropriations are charges for general delivered in each calendar year, with interest, are made average contributions arising out of ocean transport of commodities furnished under the above two laws as well

over periods of up to 20 years, except in certain cases in as section 308 of Public Law 480 and section 9 of the act charged from the date of last delivery of commodities

which payment must be made within 5 years. Interest is Through December 31, 1964, a total of $2,300 million interest may not be set at less than the minimum rate

under the agreement in each calendar year. Rates of of appropriations were 'authorized. Since 1958, these required by the Foreign Assistance Act for dollar repayable II, as amended by Public Law 88-638, provides that where at the rate of $300 million per calendar year. Title development loans. grams of assistance shall not be

undertaken under title II 1964, amounted to $355.7 million cost value including

pro- Total agreements made since the inception to June 30, during any calendar year beginning January 1, 1965, and ocean freight. Major commodities were wheat, cotton,

| rice, oils and oilseeds. Repayments for the period

of September 6, 1958.

Net costs.

1964 actual

1965 estimate

1966 estimate

FOREIGN ASSISTANCE PROGRAMS AND

The following table reflects the costs incurred by fiscal SPECIAL EXPORT PROGRAMS—Continued years on actual and estimated shipments (in thousands of

dollars): General and special funds-Continued

Program

expenditures Interest Total PUBLIC LAW 480--Continued

1962.

28.955

17 28,972 1963

79, 228 1,133 80,361 amounted to $4.9 million of which $3.1 million was applied 1964.

62,920 2,207 65,127 to principal and the rest to interest.

1965 (estimate)

212,164 2,800 214,964 1966 (estimate).

226,385

226,385 Appropriations are provided to cover costs of this program but no definite limitation is stated. Previously, Cumulative totals...

609,652 6,157 615,809 appropriations were requested to cover generally the differ

Deduct recoveries from foreign governments.

26.394 ence between total Commodity Credit Corporation costs

589, 415 and the agreement or export value to be paid by the foreign Appropriations through June 30, 1966 ...

-589,415 governments less anticipated repayments during a particular fiscal year. However, as this program has pro

Unreimbursed costs, June 30, 1966, financed by CCC borrowing augressively increased, $125.6 million of costs were due

thority... from the foreign governments as of June 30, 1964. The Amounts due from foreign governments June 30, 1966, to be applied Corporation bears this charge against its borrowing against costs and reduce subsequent appropriations.

458,692 authority which will not be collected for many years. Therefore, it is proposed to include this amount in the

Proposed for separate transmittal: 1965 supplemental appropriation estimate as well as 1965 costs not included in the enacted 1965 appropriation.

PUBLIC LAW 480 Appropriation requests thereafter will cover total esti

Program and Financing (in thousands of dollars)
mated costs less repayments to be received during the
year. This will relieve the borrowing authority for use Identification code
in its mandatory price support and related operations. 05-48-2274-1-1-154
The foreign governments or private entities would con-
tinue to make repayments as stated in the agreements. Program by activities:
As repayments actually are received each year, they will

1. Sale of surplus agricultural commodities
for foreign currencies..

273,000 be applied against current costs.

2. Long-term supply contracts..

233,400 The following reflects the composition of the appropria

10 tions for 1964, 1965, and 1966 (in thousands of dollars):

Total program costs, funded-obliga-
tions (object class 41.0).

506, 400
1964 actual 1965 estimate 1966 estimate
Expenses of shipments:

Financing: Commodity Credit Corporation

40 New obligational authority (proposed supstocks... 13,331 41,415 44,646 plemental appropriation).

506,400 Private stocks...

45.090 150,449 159,000
Ocean transportation..
4,499 20,300 22,739

Relation of obligations to expenditures:
Total expenses of shipments... 62,920 212,164 226,385 71 Total obligations (affecting expenditures)--

506,400 Interest expense on unrecovered balance. 2,207

2,800
90 Expenditures

506,400 Total expenses.

65,127

214,964 226,385 Repayments from foreign governments including interest (paid to CCC)... -4,671 -10.700 --10,885

Under existing legislation, 1965.A supplemental apNet expenses.

60,456 204,264 215,500 propriation of $506.4 million is proposed to repay the Changes in amounts due from foreign

Commodity Credit Corporation for (1) additional estigovernments to be recovered in sub

mated costs in 1965 under title I, Sale of surplus agriculsequent years (financed by CCC)... -45,193

tural commodities for foreign currencies, $273 million; Total current year's costs recover

and (2) additional current year costs and prior year unable from appropriations... 15,263 204,264 215,500 recovered costs under title IV, long-term supply contracts, 1963 funds applied to 1964 costs. -24, 189

$233.4 million. Projections of the demands on the CorSubtotal...

-8,926 204,264 215,500 poration's $14.5 billion borrowing power indicate that it Reimbursement to Commodity Credit

will be exhausted during January 1965. This approCorporation for unrecovered prior

priation would help the Corporation to finance its manyears' costs due from foreign govern

datory operations during the remainder of 1965. ments

125,577 1963 funds applied to 1965 costs.

8,926 -8,926 1964 funds to be applied to 1965 and prior year costs. 52,515 -52,515

SPECIAL EXPORT PROGRAMS Subtotal... 52,515 268,400 215,500

In addition to the Foreign assistance programs de

scribed, the Commodity Credit Corporation conducts Total available or estimate.

52,515 35,000 215,500 other special export programs under specific legislative Proposed supplemental, 1965..

233, 400

authority. These are: International Wheat Agreement Appropriation or estimate...--- 52,515 268, 400 215,500

(7 U.S.C. 1641-1642); and Bartered materials for supplemental stockpile (7 Ú.S.C. 1856).

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Financing:

Relation of obligations to expenditures: 40 New obligational authority (appropriation). 86,218 31,838 27,544

71 Total obligations (affecting expenditures) -

54,956 90 Expenditures.

54,956 Relation of obligations to expenditures: 71 Total obligations (affecting expenditures)-- 86,218 31,838 27,544 90 Expenditures

86,218 31,838 27,544

Under existing legislation, 1965.-A supplemental appropriation of $54,956 thousand is proposed to repay the

Commodity Credit Corporation for unreimbursed prior The International Wheat Agreement Act of 1949, as

years' costs. Projections of the demands on the Corporaamended, authorizes the President, acting through the

tion's $14.5 billion borrowing power indicate that it will Corporation, to make available or cause to be made avail- be exhausted during January 1965. This appropriation able wheat and flour at such prices as are necessary to

would help the Corporation to finance its mandatory

operations during the remainder of 1965. exercise the rights, obtain the benefits, and fulfill the obligations of the United States under the International Wheat Agreement which terminates July 31, 1965. The BARTERED MATERIALS FOR SUPPLEMENTAL STOCKPILE maximum and minimum prices in the current agreement

For expenses during fiscal year [1965] 1966 and unrecovered are $2.02%, and $1.62% per bushel, respectively, for the prior years' costs related to strategic and other materials acquired as basic grade of wheat, No. 1, Manitoba Northern, at Fort a result of barter or exchange of agricultural commodities or products William/Port Arthur, Canada.

and transferred to the supplemental stockpile pursuant to Public

Law 540, Eighty-fourth Congress (7 U.S.C. 1856), [$92,860,000] The Corporation causes wheat and flour to be made $52,500,000, to remain available until expended.(Department of available under the agreement through payments in kind

Agriculture and Related Agencies Appropriation Act, 1965.) to exporters of wheat and cash payments to exporters of

Program and Financing (in thousands of dollars) flour. Such payments cover the difference between the export price and the cost of wheat to exporters. If the

Identification code

05-48-2275-0-1-351 domestic market price of wheat falls below the agreement price, exporters will make commensurate refunds of pay

Program by activities: ments previously received.

10 Bartered materials for supplemental stockAppropriations are authorized to cover costs of this

pile (costs, funded-obligations) (object
class 41.0)--

82,860 program. The following reflects the composition of the

92,860 52.500 appropriations for 1964, 1965, and 1966 (in thousands of

Financing:
40 New obligational authority (appropri-
ation).

82,860 92,860 52,500 Expenses of shipments:

1964 actual Commodity Credit Corporation stocks. Private stocks and operating costs... 115,046 24,500 23,600

Relation of obligations to expenditures: 10,069 4,393 3,944

71 Total obligations (affecting expenditures)-- 82,860 92,860 52,500 Subtotal, expenses of shipments. Interest on unrecovered balance.125, 115 28,893 27,544

90
1,063
Expenditures..

82,860 92,860 52,500

1964 actual

1965 estimate

1966 estimate

dollars):

1965 estimate 1966 estimate

668

125,783

29,956

27,544

Total.
Unrecovered 1963 costs paid from 1964

funds.
Unrecovered 1964 costs brought for-

ward.

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Total available or estimate. Proposed supplemental, 1965..

Appropriation or estimate..

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Under title II of the Agricultural Act of 1956 (7 U.S.C. 1856), the Commodity Credit Corporation transfers to the supplemental stockpile, strategic and other materials acquired from the barter and exchange of agricultural commodities. This does not cover those acquired for the national stockpile or for other purposes.

Appropriations are authorized for the value of materials transferred to the stockpile. This is based on the lower

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Public enterprise funds:

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FEDERAL CROP INSURANCE CORPORATION FUND Not to exceed $3,638,000 of administrative and operating expenses may be paid from premium income: Provided, That in the event the Federal Crop Insurance Corporation Fund is insufficient to meet indemnity payments and other charges against such Fund, such additional amounts as may be necessary may be borrowed from the Commodity Credit Corporation under such terms and conditions as the Secretary may prescribe, but repayment of such amount shall include interest at a rate not less than the cost of money to the Commodity Credit Corporation for a comparable period.

(U.S.C. 1516(a); 78 Stat. 933; Department of Agriculture and Related Agencies Appropriation Act, 1965.)

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