Resolution 30 of the meeting of the Ministers of Foreign Affairs of the American republics held in Rio de Janeiro, Brazil, January 15-28, 1942; and to offset the serious economic dislocations created by the war, principally disruption of agricultural production and local industries, caused by restrictions in the export from this country of materials and equipment. The principal activities of the Corporation are conducted in cooperation with the other American republics in accordance with the terms of agreements entered into with the governments of the other American republics. The agreements usually provide for the porgrams to be performed by special agencies or services established within the framework of the particular ministry or department concerned, i. c., Ministry of Health or Ministry of Agriculture, of the governments of the other American republics. Provision is also made for the programs to be approved and conducted by mutual agreement of the parties to the agreement under the general supervision of the chief of party of the technical mission sent to the particular country. The cooperative agreements provide for contributions by both parties of funds, materials, and services, and arrangements are being made for the governments of the American republics to assume increasing responsibility for carrying on the programs with their personnel and funds. Cooperative health and sanitation programs are being carried out with 18 of the Latin-American countries, and cooperative food supply programs with 8 countries. Cooperative programs extend to various States, the latest of which, under present plans, is December 31, 1948. The Corporation is financed by grants made to it by the Office of Inter-American Affairs. The total amount granted or to be granted to the Corporation through June 30, 1945, is estimated at $65,024,404 of which amount it is estimated $51,024,404 will be paid over to the Corporation by June 30, 1945, and the remainder in subsequent fiscal years in accordance with the cash needs of the Corporation for carrying out its programs. Also, in the case of one country, fund contributions of the local government are taken into the Corporation and disbursed directly by it. In the cases of the other countries, the fund contributions of the local governments are disbursed by the special agency or service established within the framework of the local governments through which the cooperative program is carried out. No securities have been issued or money borrowed by the Corporation. The transactions of the Corporation are audited by the General Accounting Office. The receipts, expenditures, and means of financing are shown in detail in the foregoing statement. Does not include fund contributions of local governments where cooperative program carried out through "we al agency or service established within framework of local government. (See statement under Eduaan Division for contributions of local governments to cooperative programs.) Status of funds on cumulative commitment, obligation, and authorization basis Total capitalization... $5,088, 275 Total commitments, obligations, and special project authorizations, 4, 202, 722 Balance... 885, 553 Authorized or to be authorized and required for fiscal years 194648.. Reserve.. 885, 553 0 EXPLANATORY STATEMENT The Inter-American Educational Foundation, Inc., was created under the laws of the State of Delaware on September 25, 1943, pursuant to authority contained in the National War Agencies Appropriation Act, 1944 (Public Law 139, 78th Cong., approved July 12, 1943). This Corporation is a Government-controlled nonprofit membership corporation. The purposes of this Corporation are the development of cooperative educational programs in the other American republics with emphasis on general education in the elementary, secondary, and normal schools; health and vocational education, particularly in rural areas; and the teaching of the English language. The program is carried out through bilateral agreements providing for (1) the interchange of educators; and (2) the preparation and interchange of teaching materials, such as visual aids, textbooks, and pamphlets. Cooperative educational agreements have been signed with 10 Latin-American republics, and it is expected that by June 30, 1945, agreements will have been consummated for programs in most of the other republics. The agreements provide for the cooperative programs to be carried out through the ministry or department of education of the local government with the technical advice and assistance of the field staffs sent to the particular countries. The agreements further provide for contributions by both parties of funds, materials, and services. The programs consist of individual projects which are mutually agreed upon in writing by the representatives of the parties to the agreement and which provide for the specific kinds of work and activity to be undertaken. Under present plans operations under the cooperative programs will extend through the fiscal year 1948. Funds for carrying out the program of the Corporation are made available to it by grants from the Office of Inter-American Affairs. In the case of several countries, the fund contributions of the local government are taken into the Corporation and disbursed directly by it. In other cases, the fund contributions of the local government are disbursed by a special agency or service established within the framework of the ministry or department of education of the local government through which agency or service the cooperative program is carried out. No securities have been issued or money borrowed by the Corporation. The transactions of the Corporation are audited by the General Accounting Office. The expenditures and means of financing are shown in detail in the foregoing statement. Institute of Inter-American Transportation Status of funds on cumulative commitment and obligation basis Total capitalization___ Cumulative commitments and obligations, June 30, 1945_ . Balance, June 30, 1945___ Required for obligations in fiscal year 1946. Reserve for future periods... EXPLANATORY STATEMENT $7, 600, 000 6, 560, 366 1,039, 634 629, 197 410, 437 The Institute of Inter-American Transportation was created under the laws of the State of Delaware on June 18, 1943, pursuant to authority contained in the First Supplemenal National Defense Appropriation Act, 1943 (Public Law 678, 77th Cong., approved July 25, 1942). This Corporation is a Governmentcontrolled nonprofit (stock) corporation. The general purpose of the Corporation, as set forth in its certificate of incorporation, is to assist and improve the means and methods of transportation in the Western Hemisphere whether by land, by air, or by water. The activities of the Corporation to date have been directed toward carrying out the terms of a cooperative agreement, through the United States railway mission in Mexico, to rehabilitate and improve the operating efficiency of certain key sections of the national railways of Mexico as provided in an exchange of notes between the Governments of Mexico and the United States dated November 18, 1942, as amended. The purpose of this work is to bring the right-of-way and rolling stock of the national railways into such operating condition as to permit the expeditious movement of extra wartime traffic in strategic materials necessary for the war effort. Under present plans the work of the United States railway mission in Mexico will be completed at the end of fiscal year 1946. The Office of Inter-American Affairs is the sole subscriber to 1,000 shares of capital stock at a par value of $100 per share. In addition to capitalizing the Corporation through the purchase of capital stock, the Office of Inter-American Affairs has made grants to the Corporation amounting to $7,500,000. No money has been borrowed by the Corporation. The transactions of the Corporation are audited by the General Accounting Office. The expenditures and means of financing are shown in detail in the foregoing statement. Plus total receipts collected and to be collected through June 30, 1946... 739, 263 195, 043 Reserve for future operations---- EXPLANATORY STATEMENT 934, 306 Prencinradio, Inc., was created under the laws of the State of Delaware on July 20, 1942, pursuant to authority contained in the Third Supplemental National Defense Appropriation Act, 1942 (Public Law 353, 77th Cong., approved Dec. 17, 1941). This Corporation is a Government-controlled nonprofit membership corporation This Corporation was formed to further the general purposes of the InterAmerican program through the effective development, operation, and use of all media and facilities, whether written, spoken, or visual, for the dissemination and interchange of knowledge and information. The two projects originally undertaken by the Corporation are now in process of liquidation. The liquidation period in one case runs through June 30, 1948. All funds available for the operations of the Corporation have been derived from grants made to it by the Office of Inter-American Affairs. No money has been borrowed or securities issued by the Corporation. The transactions of the Corporation are audited by the General Accounting Office. The receipts, expenditures, and means of financing are shown in detail in the foregoing statement 1 Represents estimated balance to be returned to the surplus fund of the Treasury. EXPLANATORY STATEMENT The Inter-American Navigation Corporation was created under the laws of the State of Delaware on July 15, 1942, pursuant to authority contained in the Third Supplemental National Defense Appropriation Act, 1942 (Public Law 353, 77th Cong., approved December 17, 1941). This Corporation is a Government-controlled nonprofit (stock) corporation. Its transactions are audited by the General Accounting Office. The Corporation was formed to carry out plans approved at a meeting of the members of the Board of Economic Warfare, held on June 25, 1942, for supplementing existing shipping facilities with a small cargo-vessel program to be carried out through the acquisition and coordination of all existing small tonnage in the Latin-American trades, particularly the Caribbean area, and the construction in Latin-American shipyards of additional small vessels. The Corporation was capitalized by the Office of Inter-American Affairs through the purchase of its entire issue of capital stock. In connection with its cperations, it borrowed $192,952 from the Reconstruction Finance Corporation, which amount has been repaid. On April 30, 1943, an agreement was made with the War Shipping Administration under which the vessels of the Corporation were turned over to that agency for the purpose of coordinating all vessel operations in the Caribbean and LatinAmerican trades. The purpose for which the Corporation was formed having been accomplished, the Corporation is making no further commitments and is proceeding with the liquidation of its assets. Only a small number of items now remain to be handled. The consent to dissolution of the Corporation was filed with the secretary of the State of Delaware on February 25, 1944, and the certificate of dissolution issued and recorded. The receipts, expenditures, and/means of financing are shown in detail in the foreging statement. Mr. TABER. I would like to ask you one question with respect to each one of these items that we have not covered. Why can they not all be done away with; why do you need all of that money for each of them? Mr. HARRISON. Each of the Corporations? Mr. TABER. No; each one of the tabs that we have not gone over. DEPARTMENT OF TRANSPORTATION AND ECONOMIC DEVELOPMENT Mr. HARRISON. Next is the Department of Transportation and Economic Development. Mr. TABER. Yes. Answer the question with reference to that; why can you not do away with those activities? Mr. HARRISON. Why can we not do away with this Department? Mr. TABER. Yes. Mr. HARRISON. I offer for the record the following justification: DEPARTMENT OF TRANSPORTATION AND ECONOMIC DEVELOPMENT Objectives.-The Department of Transportation and Economic Development seeks to assist the other American republics in the economic development of their natural resources and in the conservation of those resources. It seeks to render technical assistance in maintenance of transportation systems and in the increasing of industrialization among certain of the other American republics along sound economic lines, toward the end that greater productivity shall ensue with a consequent rise in the purchasing power of these countries. It seeks to improve and enlarge markets for United States goods, and to make possible a greater flow of necessary raw materials to the United States. There is an increasing inability of transportation systems of the other American republics to move both critical materials important in the war effort, and essential goods within the countries to support a civilian economy. This difficulty is caused by (a) heavy demands on transportation facilities in furnishing United States requirements of strategic and critical materials, and (b) deterioration of equipment resulting from heavy demands and the simultaneous inability of United States manufacturers to supply sufficient replacements of equipment causing still further physical deterioration and loss of operating efficiency. The Department of Transportation and Economic Development endeavors to bring together private enterprise in the United States with private enterprise in the other American republics for economic development on a mutually profitable |