General and special funds: EMERGENCY FUND FOR THE PRESIDENT For expenses necessary to enable the President, through such officers or agencies of the Government as he may designate, and without regard to such provisions of law regarding the expenditure of Government funds or the compensation and employment of persons in the Government service as he may specify, to provide in his discretion for emergencies affecting the national interest, security, or defense which may arise at home or abroad during the current fiscal year, $1,000,000: Provided, That no part of this appropriation shall be available for allocation to finance a function or project for which function or project a budget estimate of appropriation was transmitted pursuant to law during the [Eighty-seventh Congress or the first session of the] Eighty-eighth Congress, and such appropriation denied after consideration thereof by the Senate or House of Representatives or by the Committee on Appropriations of either body. (Treasury-Post Office Departments and Executive Office Appropriation Act, 1963.) Program and Financing (in thousands of dollars) Obligations are distributed as follows: State. Treasury National Mediation Board.. 1,000 1,000 12 484 46 181 15 1962 actual 1963 1964 estimate estimate 1962 actual 1963 estimate estimate 1964 basis. Due to the imminent exhaustion of this borrowing authority, a direct appropriation of $108 million was enacted for 1959, thus providing cumulative financing authority of $2,208 million. The following agencies have been designated to carry out programs to expand production capacity as follows: General Services Administration.-Purchase and resale of metals, minerals, and machine tools, and research and 28,414 pilot plant operations to develop new materials, and new techniques for utilizing low-grade domestic ores. (General Services Administration): Proceeds from sale of capital assets___ Revenue..... Nonoperating revenue.. 14 Machine tool program (General Services Department of Agriculture.-Purchase and resale of agricultural commodities. Department of the Interior.-Loans and grants to encourage exploration for strategic and critical minerals. Treasury Department.-Loans to domestic private enterprises. Export-Import Bank of Washington.-Loans to foreign private enterprises. Programs must be certified as essential to the national defense by the Office of Emergency Planning. Allocations of borrowing authority by the Office of Emergency Planning and net borrowing from the U.S. Treasury as of June 30, 1962, were as follows (in thousands of dollars): Authorized agency General Services Administration 1. Treasury Department... Department of Agriculture.. Borrowing authority Borrowings allocated outstanding Net available for borrowing -13 Department of the Interior.. 35,800 31,000 4,800 Export-Import Bank of Washington.... Office of Emergency Planning-reserve.... 20,500 20,500 88,795 130,896 168.114 146,799 82,968 80,728 Financing applied to program.. 1 In addition a direct appropriation of $108 million for liquidation of borrowing from the Treasury was applied to General Services Administration borrowings, thus providing total financing of $1,962 million to that agency. As one of the inducements for expanding production 80,728 most of the contracts provide a guaranteed market for the production from expanded facilities. Significant amounts 35,965 of materials have been delivered to the Defense Production Investment in Act inventory under these contracts. 116,693 inventory of $1,484 million on June 30, 1961, and $1,500 million on June 30, 1962, is expected to decrease to $1,464 million by June 30, 1964. 72,948 40,867 43,510 -219 -1,040 -970 72,729 39,827 11,213 50,057 42,540 74,153 Under the Defense Production Act of 1950, as amended, designated agencies are authorized with' Presidential approval to incur obligations and make expenditures to secure expanded production of critical materials in furtherance of the defense effort. The program is conducted primarily through a revolving fund financed by borrowings from the Treasury. The amount borrowed may not exceed $2.1 billion outstanding at any one time, but the act permits contingent liabilities to be considered as obligations only to the extent of the probable ultimate net costs to the United States, rather than in the full amount of the gross commitments outstanding. To the extent that money must be expended to fulfill commitments even though the expenditures are considered to be ultimately recoverable (through repayment of loans and sale of inventories, for example), portions of the borrowing authority are used for working capital on a current Progress has been made in disposing of Defense Production Act materials primarily by sales to other government agencies and industry and steps are being taken to increase and accelerate the disposal program for these materials wherever this can be accomplished without undue effects on the market. Interest continues to accrue, payable by the fund to the Treasury, not only on the borrowings invested in loans and inventories, but also on the borrowings which have been used to cover expenses and losses. Since there is no way for the fund to recover its realized losses or reduce inventories appreciably in a short period of time, the perpetuation of the interest-bearing arrangement on such expended capital merely makes the cumulative deficit even greater as the interest accrues. General Services Administration.-Financing of $1,962 million has been authorized by the Office of Emergency Planning as of June 30, 1962, to cover the expansion of productive capacity for strategic metals, minerals, and machine tools. This amount includes $1,854 million in borrowing authority and a direct appropriation of $108 million made in 1959. The bulk of the expansion programs have been completed, with the major problems now being custody, main EXPANSION OF DEFENSE PRODUCTION-Con. Public enterprise funds-Continued REVOLVING FUND, DEFENSE PRODUCTION ACT-Continued tenance, and eventual disposition of the materials and facilities. The exercise of option rights by contractors has been carefully examined with a view to reducing deliveries to the Government as far as possible within the terms of the contracts whenever basic stockpiling objectives have been attained. Between July 1, 1957, and June 30, 1962, a reduction of $351.3 million in gross commitments under the Defense Production Act was attained through renegotiation of contracts. A summary of transactions involving strategic minerals and metals (including work-in-process inventory) under this fund follows (in millions of dollars): As of June 30, 1962, a total of $7,508.7 million in gross value of contracts has been entered into by the General Services Administration under Defense Production Act authority. Of this amount a total of $7,218 million has been completed as measured by procurement, expiration of contractors options on guaranteed production, completion of facilities, completed research, etc. The balance of $290.7 million includes a total of $201 million of commodity contracts, of which probable deliveries are estimated at $40.9 million. Department of Agriculture.-The purchase, management, and resale of agricultural commodities, except forest products, were carried out by the Commodity Credit Corporation, which was reimbursed from this fund for the net costs involved. The Secretary of Agriculture has been allocated borrowing authority for this purpose. All programs certified to the Secretary of Agriculture under the Defense Production Act were completed by 1961. Department of the Interior.-Department of the Interior operations to expand defense production under section 303 of the Defense Production Act of 1950, were limited to the encouragement of exploration for strategic and critical mineral commodities. The operations were administered by the Defense Minerals Exploration Administration until September 11, 1958, when the Office of Minerals Exploration was established under authority of Public Law 85-701. As successor agency, the Office of Minerals Exploration was empowered to use appropriated funds to administer the Defense Minerals Exploration Administration contracts under which royalty obligations remain, as well as to conduct a similar exploration assistance program. On June 30, 1962, borrowing authority certified by the Office of Emergency Planning to Interior amounted to $35.8 million and $31 million had been borrowed. On July 1, 1962, notes totaling $16 million became due with interest of $1.5 million which necessitated the executing of a new note for $17.1 million and increased the total of notes outstanding to $32.1 million. The tables attached have been prepared on the assumption additional borrow ing authority will not be required during 1963 and 1964. In preparing the 1964 budget the Office of Minerals Exploration has assumed that interest will continue to accrue. Interest accruals will exceed royalty receipts and interest payable on notes of $5 million which will mature on July 1, 1964, will necessitate additional borrowing. The last 3 of the 1,159 contracts executed under the Defense Minerals Exploration Administration program were terminated and certified during 1962 raising to 399 the total certified. Royalty obligations remaining on 366 contracts amount to $12.3 million. Royalties on production from any of these projects within the specified period (usually 10 years-a few of 31 years) will be applied toward the Government funds spent. Royalties on production from Defense Minerals Exploration Administration projects total $4.3 million and are estimated at $350 thousand each for 1963 and 1964. Losses realized on 793 closed contracts stand at $6.7 million. Treasury Department. The function of making and administering loans to private business enterprises under the authority of section 302 of the Defense Production Act of 1950, as amended, was assigned to the Secretary of the Treasury by Executive Order 10489, dated September 26, 1953. Applications for loans are considered only upon certification of essentiality by the Office of Emergency Planning. No new loans were authorized during 1962. It is anticipated that there will be no additional loans authorized in 1963 and 1964. However, one loan was purchased under a deferred participation commitment during 1962. The changes in loans and deferred participation commitments estimated for 1963 and 1964 are as follows (in thousands of dollars): Export-Import Bank of Washington.-Pursuant to section 311 of Executive Order 10480 of August 14, 1953, which superseded Executive Order 10161, the ExportImport Bank, with funds provided under section 304 of the Defense Production Act of 1950, as amended, is responsible for making and administering all loans under section 302 of the act, upon receipt of certificates of essentiality issued by the Director of Defense Mobilization or the General Services Administrator, where the expansion, development, or production so financed was carried on in foreign countries. No certifications were received and no new loans were authorized in 1962. The Bank does not anticipate any additional certifications, consequently, no additional obligational authority will be required. The net budget receipts for 1962 were $15.3 million and the cumulative net receipts from Export-Import Bank's operation under this program was $5,019 thousand. The balance of the borrowing authority allocated to the Bank and available in 1962 was $20.5 million. of August 15, 1962, the Office of Emergency Planning canceled the entire amount. All obligations due the U.S. Treasury were repaid during 1962. Under date One loan with a balance of $32 thousand was outstanding and past due at June 30, 1962; efforts to recover are cur he Accounts receivable, net. 14,652 15,103 4,748 5,088 4,110 4,329 5,369 6,339 Selected assets: 1 General Services Administration: Advances to other Government Expense. 45,554 38,987 34,365 Supplies... Deferred charges.. Net operating loss (-), minerals and Commodities for sale. d 1,483,656 1,499,946 1,489,466 1,464,063 metals program........ Loans receivable, net. Land, structures and equipment, Machine tool program: net.... Revenue.... Expense. 131,151 108,880 104,731 95,476 21,501 15,381 14,666 14,350 1,656,226 1,644,601 1,619,943 1,586,279 131,282 196,596 211,816 183,023 3,234 2,994 2,984 2,984 134,516 199,590 214,800 186,007 1,970,473 1,964,151 1,975,828 2,015,530 -6,322 11,677 39,702 74,493 1,964,151 1,975,828 2,015,530 2,090,023 Transfers to other agencies or funds net: Minerals and metals program: Equip ment.. -51 Machine tool program: Machine tools... -20 General and special funds: EXPENSES OF MANAGEMENT IMPROVEMENT For expenses necessary to assist the President in improving the management of executive agencies and in obtaining greater economy and efficiency through the establishment of more efficient business methods in Government operations, including services as authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a), at rates for individuals not to exceed $75 per diem, by allocation to any agency or office in the executive branch for the conduct, under the general direction of the Bureau of the Budget, of examinations and appraisals of, and the development and installation of improvements in, the organization and operations of such agency or of other agencies in the executive branch, [$200,000] $100,000, to remain available until expended, and to be available without regard to the provisions of subsection (c) of section 3679 of the Revised Statutes, as amended. (Treasury-Post Office Departments and Executive Office Appropriation Act, 1963.) ALLOCATION ACCOUNTS Average number of all employees.. Number of employees at end of year... 1 0 FOREIGN ASSISTANCE The foreign assistance program is intende free world security and stability and to foster and independent growth of developing nation under the Foreign Assistance Act take sev forms: (a) supply of military materiel and e training of foreign military personnel; (c) loa in support of capital projects and developme (d) technical assistance; (e) supporting a maintenance of free world security where it is or gravely threatened; (f) contributions to pr United Nations and other international encouragement of private investment in le countries. |