establishment of the cooperative service, and the appointment of the representative of this Government as director thereof; (b) the joint contribution of funds, personnel, equipment, and services; (c) the furnishing of a small group of technicians on the part of this Government; (d) the extension of all rights and privileges enjoyed by other agencies and divisions of the local government and their personnel and employees; (e) the inspection of the accounts and books of the cooperative services by representatives of this Government; (f) control of expenditures through the mutual approval of projects, the periodic advances of funds, material, and equipment on the part of this Government and the legal government as required by work mutually agreed upon or the terms of the agreement and specific authorization for expenditures, and (g) the gradual withdrawal of this Government and the assumption of increasing responsibility on the part of the local government.

The objectives of the programs carried out through these cooperative services are (a) to stimulate the production of focdstuffs in areas where the demand for food has been increased because of large concentrations of troops and war vessels; (b) to provide sufficient quantities of foodstuffs for workers engaged in the procurement of strategic materials; and (c) to produce foodstuffs in areas which could no longer be supplied by shipments from other areas because of the absence of sufficient shipping.

The programs carried out through these cooperative services in Brazil, Paraguay, Peru, and Venezuela, involve work of the following types: Technics! assistance for the increase and improvement of production of foodstuffs, and fiber products; procurement and distribution of supplies and equipment, such as hand tools, insecticides and fungicides, seed and plants; improvement of storage and processing facilities; development of irrigation, and training in practical agricultural methods.

In the remaining countries in which food-supply programs have been carried out, the programs are operated directly (not through cooperative services established within the framework of the local government) under agreements between this Government and the local government.

The objective of the programs carried out in the countries involved is to relieve food deficiencies occasioned by lack of transportation brought about by the war by the stimulation of local production in areas of consumption and, in certain cases, through increasing production for export to neighboring countries.

In Panama and Costa Rica the work carried out has revolved around programs for the production of fruits and vegetables for shipment to the United States armed forces and civilians in the Canal Zone, and for sale to the workers on the Pan-American Highway. The programs involve agreements with farmers for the production of fruits and vegetables, distribution of small quantities of equipment, and supplies (hand tools, seeds, insecticides, fungicides, etc.), and the furnishing of technical assistance.

The programs carried out in Honduras, Nicaragua, and El Salvador were initiated to stimulate increased food production and general agricultural improvement to alleviate food-supply problems accentuated since the advent of the war. The programs involve the following types of work: Dairy, general crop, and food-production projects, development of irrigation and improvement of livestock herds, establishment of demonstration farms for educational purposes, and the distribution of small quantities of hand tools, seeds, insecticides, etc. In each case, technical assistance is made available through the services of trained technicians furnished by this Government.

At the request of, and in cooperation with the Department of State, a program has been undertaken in Haiti to relieve a situation which arose when the cryptostegia areas were abandoned. About 35,000 farm families were left with their land, but no seed, implements, fruit trees, livestock, or food. The program is designed to solve this situation through construction of grain-storage facilities. repair of irrigation systems, and distribution of seed, tools, and stock, and rendering of technical assistance.

Under the provisions of the agreements covering work in the countries involved. the projects to be undertaken must be mutually agreed upon by representatives of this Government and the local government; also the local government shal provide funds, such necessary land, construction materials, tools, equipment, etc.. as may be practicable, and shall extend such other aid, support, protection, rights privileges, freedom from duties, fees, taxes, and other charges, etc., as is necessary for the accomplishment of the purposes of the agreements.

(3) Emergency rehabilitation.The expenditures under this category pertain principally to programs carried out in two countries both of which programs have been completed.

In Ecuador the program related to the rehabilitation of the Province of El Oro which was devastated during the Peruvian-Ecuadoran boundary dispute. The program was developed under the direction of the Department of State and this Office with the approval of the Bureau of the Budget. Because of the devastation in the Province arising out of the war between the two countries, immediate action was necessary to prevent serious economic and physical distress. A small group of technicians was provided by this Government to assist in the carrying out of the rehabilitation program. Programs activities were carried out principally through the Ecuadoran Development Corporation under the terms of a contract with the Institute of Inter-American Affairs. Types of work carried out under the program included construction, repair, and extension of dispensaries and hospitals, renovation and reclamation projects to facilitate shipping operations, and agricultural programs. Agencies in Ecuador contributed to the program in various ways, one being arrangements for the extension, through banking channels, of agricultural credit.

In Honduras work was undertaken pursuant to an agreement between this Government and the Republic of Honduras for a program to alleviate a serious unemployment situation created by the cessation of banana exports due to the lack of shipping during the latter part of 1942. Because of the unemployment situation there was imminent danger of political unrest dangerous to the United States and Honduran interests in an area where Axis propaganda was already actively at work. The Department of State and this Office in coopeartion with the Honduran Government and upon urgent request of the United States Embassy in Honduras planned a program for the repair and reconstruction of sections of the highway between Potrerillos and the Lake Yojea area, and the completion of the highway by continuing construction around Lake Yojea. This Government provided funds, equipment, supplies,and technical personnel. The local government provided land, materials, personnel, maintenance of sanitary and healthful working conditions, tools and road building equipment, etc.

(4) Expenses directly related to cooperative programs.-The expenditures under this category are for the following items:

1. General special projects.—These are projects which relate generally to all of the programs which are carried out by the Institute of Inter-American Affairs and therefore are not susceptible to reporting under any particular program and which do not fall within cooperative agreements with local governments.

2. Field information programs. For insuring that the types of work carried out in the various countries are made known to the peoples of the countries and that this Government receives credit for the work in which it has had a part.

3. Field attorneys.-This items covers the expenses of attorneys located in Central and South America who assist in carrying out cooperative programs by drafting agreements, contracts, etc., and performing other legal functions.

4. Administration of training programs. This item covers the expenses of personnel who administer the training programs under health and sanitation and food supply, which programs are carried on for the purpose of training and developing personnel of the other American republics.

(5) Washington administration.-Expenditures under this item relate to the general administration of the corporation and to legal, administrative, and service operations, such as fiscal, budget, accounting, auditing, recruitment and classification of personnel, procurement of supplies, materials, etc. Also included are expenses for ordinary general administrative operations such as supplies, matériels, equipment, communications, etc.

In addition, noncash facilities made available to cooperative programs are conservatively reported to date equivalent to $1,950,000.

171, 114

65,000

2, 147, 951
1,818,000

1, 342, 865

Architectural design office, Central America.

Present agreements and authorizations—Food Supply Division

Present commitment or authorization

In addition, noncash facilities made available to cooperative programs are conservatively reported to date equivalent to $1,500,000.

Institute of Inter-American Affairs expenditures (estimated) cumulative through fiscal year 1945 and by fiscal years thereafter-Food Supply Division