Through 1961, a portion of the mutual security dollar appropriations was used to purchase surplus agricultural commodities which were then sold to friendly countries for their currencies. Sales of these commodities are now being made through the Food for Peace program. Local currencies accruing from the sales through 1961 under the mutual security program are deposited in a special account and are used for economic and military activities in furtherance of objectives of the U.S. foreign assistance program. These activities include the local costs of projects, budget support of the less-developed countries and procurement of supplies and equipment for third countries.

Object Classification (in thousands of dollar equivalents)

Authorization to spend foreign currency receipts-permanent.......

In 1961, the Alliance for Progress was formed to launch a hemispheric effort, in which the United States joined as a partner, to stimulate and accelerate the development of the Americas through programs of social and economic. reform. In support of this effort, the United States makes loans to finance the development activities necessary to achieve self-sustained growth. Through 1965, the Congress has appropriated a total of $1,416.8 million for these loans. The nations of Latin America have subscribed to the Charter of Punta del Este and are pledged to seek reforms and institute self-help measures contributing to the development effort. U.S. assistance is supplemented by assistance from other nations, international organizations, and our own private investors, foundations, and educational institutions.

Total Alliance for Progress appropriations of $580.1 million are proposed for 1966. Of this amount, $495.1 million shown in this schedule will be available for loans.

112,580 195,000 228,000

115,962 197,100 231,853 -3,382

-2,100 -3,853