General and special funds: FOREIGN [AID (MUTUAL SECURITY)] ASSISTANCE For expenses necessary to enable the President to carry out the provisions of the Foreign Assistance Act of 1961, as amended, to remain available until June 30, [1963] 1964, unless otherwise specified herein, as follows: (22 U.S.C. 2151-2406; 76 Stat. 1163; Foreign Aid and Related Agencies Appropriation Act, 1963.) MILITARY ASSISTANCE Military assistance: For expenses authorized by section 504(a) of the Foreign Assistance Act of 1961, as amended, including administrative expenses authorized by section 636 (g) (1) of such Act, which shall not exceed [$24,500,000] $25,000,000 for the current fiscal year, and purchase of passenger motor vehicles for replacement only for use outside the United States, [$1,325,000,000: Provided, That none of the funds contained in this paragraph shall be available for the purchase of new automotive vehicles outside of the United States] $1,480,000,000. Unobligated balances as of June 30, [1962] 1963, of funds heretofore made available under the authority of the Foreign Assistance Act of 1961, as amended, are, except as otherwise provided by law, hereby continued available for the fiscal year [1963] 1964 for the same general purposes for which appropriated and amounts certified pursuant to section 1311 of the Supplemental Appropriation Act, 1955, as having been obligated against appropriations heretofore made under the authority of the Mutual Security Act of 1954, as amended, and the Foreign Assistance Act of 1961, as amended, for the same general purpose as any of the subparagraphs under "Economic Assistance", are hereby continued available for the same period as the respective appropriations in such subparagraphs for the same general purpose: Provided, That such purpose relates to a project previously justified to Congress and the Committees on Appropriations of the House of Representatives and the Senate are notified prior to the reobligation of funds for such projects and no objection is entered by either Committee within 60 days of such notification]. (Foreign Aid and Related Agencies Appropriation Act, 1963; authorizing legislation to be proposed.) Program and Financing (in thousands of dollars) New obligational authority: "International organizations and programs" "Contingency fund" foreign assistance- 1962 actual 1963 1964 estimate estimate -1,832 65,000 25,000 18,420 79,579 55,071 16,587 144,579 80,071 1,591,632 1,403,827 1,535,071 46,930 306,438-178,534 1,638,562 1,710,265 1,356,537 -14,246 -24,248 -25,000 -43,833-39,985 -6,247 -5,406 -14,572 -45,000 | -52,800 -46,930-306,438 178,534 24.248 25,000 25,000 39,985 5,406 3.135 32 1,577,000 1,325,000 1,480,000 1,600,000 1,325,000 1,480,000 -9,500 -13,500 1,577,000 1,325,000 1,480,000 The military assistance program is designed to strengthen the security of the free world by contributing to the development, maintenance, and training of modern military forces. More than 60 free-world countries are receiving grant aid under this program. They and some others are eligible to buy military equipment on cash or credit terms. Their combined military forces are numerically much greater than the U.S. Armed Forces, and provide freeworld defensive capability, depth in reserves, and flexibility. Many of these countries have joined in regional defense pacts, such as North Atlantic Treaty Organization, Southeast Asia Treaty Organization, and Central Treaty Organization, or in bilateral defense arrangements with the United States. Most of the U.S. contributions to these regional organizations are derived from military assistance program funds. Most of the military equipment and supplies which the United States provides to its foreign allies are obtained by placing orders with the U.S. military services. Military assistance funds are reserved when the orders are placed, 650100-63-5 1,691.9 1,385.5 1,564.0 813.6 1,016.0 760.0 MILITARY ASSISTANCE-Continued and the military services are paid when the items are delivered. The kind of materiel supplied by the United States varies with objectives in each area and the requirements and capabilities of the individual countries. The present emphasis is on modernization of conventional equipment in less-developed areas where U.S. assistance is needed to supplement their production or financial capability. Whenever possible, materiel already on hand but excess to the needs of U.S. forces is supplied, at no charge to the military assistance program except for the cost of rehabili tation and transportation. Grant aid operations: Reservations for requirements ordered from US military services-1. Aircraft. In 1963 and 1964, aircraft will be funded partly through reservations and partly by direct obligations as shown above. Emphasis is to be placed on more advanced aircraft in selected countries. At the same time, the air forces of many less-developed countries are replacing obsolete planes with later model aircraft. 2. Ships.-New construction of patrol, mine-sweeping and other type vessels is included in the 1964 program. Reactivation and rehabilitation of ships from the U.S. "mothball" fleet to meet other naval requirements of our allies can only be met under authority of ship loan legislation. 3. Tanks, other vehicles, and weapons.-Included is combat and support equipment ranging from artillery, tanks, and other heavy vehicles to small arms and jeeps. Some of these items are supplied from existing U.S. stocks. The 1964 program includes continuing replacement of worn-out or obsolete equipment in the forces of lessdeveloped countries. 4. Ammunition. Most of the ammunition to be supplied as grant aid in 1964 will be used for training allied troops. 5. Missiles.-Programing for modernization of forces with ballistic and other guided missiles, primarily in NATO, reached a peak in 1961 and continues at a decreased level in 1964. In addition, the 1964 program provides for maintenance of certain of the equipment previously furnished. 6. Electronic equipment.-The 1964 program continues the modernization of military communications systems in less-developed countries. 7. Military public works. Materiel and equipment directly supplied by the United States for military assistance construction are procured through the military service supply systems. Other U.S. costs for this construction are met initially by the military assistance program and are cited in paragraph 14 below. 8. Other. A variety of special purpose equipment, and other supplies, and repair and rehabilitation of used equipment not covered above are provided through orders placed with the U.S. services. Because of the timelag in manufacturers lead time, and the worldwide supply operation, a large proportion of the items delivered by the U.S. services in any year result from orders placed in previous years. The following table reflects the undelivered orders placed with the military services in prior years, the new items ordered, and the deliveries and payments made (a detail table appears in Defense Military chapter). Undelivered orders at end of year. Payment for deliveries.... Obligations for requirements other than through reservations-9. Offshore procurement. The procurement of equipment and supplies abroad for the military assistance program is subject to the provisions of section 604 (a) of the Foreign Assistance Act of 1961, as amended. handling, storing, and transporting military assistance 10. Supply operations.-The annual cost of packing, materiel varies in proportion to the types, volume, and destination of goods delivered. 11. Training. Training programs in free-world countries are required to insure effective use of the new weapons and equipment supplied through the military assistance program, teach basic skills to forces of less-developed nations, and create favorable attitudes toward the United States and its policies. 12. Administration. The administrative expenses of the program incurred by U.S. military assistance advisory groups, the unified commands overseas, and the departments are included. 13. Contributions to international military headquarters and agencies. Included are the assessments levied against the United States in accordance with cost-sharing agreements for the administrative support of the military headquarters and agencies, including the standing group of the NATO, SEATO, and the CENTO. countries. Included are (a) construction of military and 14. Contributions to construction of facilities in other logistical facilities under the jointly financed NATO infrastructure program, and (b) contract costs, architectengineering services and related overhead items for military assistance construction. 15. Research and development.-Provides technical asdevelopment of weapons and weapons systems of common sistance for prior year projects relating to research and interest undertaken by our allies in certain fields in which their facilities showed promise of prompt success. 16. Other activities. These include U.S. support for programs of coordinated weapons production in Europe. Sales operations.-Military materiel is purchased in the United States by many countries, including some which do not receive grant aid. Most sales financed by the Department of Defense on a credit basis are initially financed by military assistance appropriations. Depending on the circumstances, repayment of credit sales may be in dollars, in local currency, or in materiel. The following table shows the repayments and their reuse for new credit sales (in millions of dollars): 67 9120 MILITARY ASSISTANCE 1,564.0 Full-time equivalent of other positions.. 3,520 38 4 4 26 Supplies and materials.. 212,476 168,028 201,741 Average number of all employees... 3,982 3,454 3.472 eserc 31 Equipment..... 504,554 419,246 644,562 602,394 Number of employees at end of year.. 3,946 3,492 3,501 Average GS grade.. 7.9 8.0 8.0 887,000 Average GS salary.. $7,598 Obligations: Average grade, grades established by the Secre Il Personnel compensation: tary of Defense... Permanent positions... Average salary, salaries established by the Sec 19,144 Positions other than permanent.. retary of Defense..... 42 Other personnel compensation.. 799 Average salary of ungraded positions. $1,682 $1,500 $1,526 tab Total personnel compensation... 12 Personnel benefits.. 7,221 8,857 13 Benefits for former personnel. 8,905 -3 21 Travel and transportation of persons_ Full-time equivalent of other positions.. 60,140 60,698 70,649 Average number of all employees.. 747 775 23 Rent, communications, and utilities.. 2,212 2,222 2,299 Number of employees at end of year. 25 Other services.. 24 Printing and reproduction... 172 193 195 Average grade established by the Foreign Serv 135,572 127,810 26 Supplies and materials.. 121,774 ice Act of 1946, as amended (22 U.S.C. uted 28,172 25,758 31 Equipment.... 27,761 801-1158): 387,270 214,046 32 Lands and structures. 157,842 Foreign Service reserve.. 4.1 4,650 4,199 4,577 Foreign Service staff.. 11.1 41 Grants, subsidies, and contributions.. 63,958 42 Insurance claims and indemnities.. 92,328 88,443 Average salary established by the Foreign Serv -1 ice Act of 1946, as amended (22 U.S.C. Total, Defense-Military... ALLOCATION ACCOUNTS Permanent positions... Positions other than permanent. Total personnel compensation.. 801-1158): Foreign Service reserve. Foreign Service staff.. Average salary of ungraded positions. 22 Transportation of things.... 21 Travel and transportation of persons 39 66 23 Rent, communications, and utilities. 125 1,776 2,159 2,104 31 Equipment... 26 Supplies and materials.. 42 Insurance claims and indemnities. 41 Grants, subsidies, and contributions.. 572 227 2 Total, allocation accounts.. 9,507 9,224 Total, grant aid operations.. Sales operations: 25 Other services... 26 Supplies and materials. 31 Equipment..... Total, sales operations.......... Total program.. Increase (-) or decrease in outstanding reservations for requirements ordered from military services (69 Stat. 438).. Total obligations... 4 9,208 1,575,045 1,259,248 1,455,000 3,005 13,500 12,500 2,303 22,984 11,575 11,280 108,095 55,996 16,587 144,579 80,071 1,591,632 1,403,827 1,535,071 46,930 306,438-178,534 1,638,562 1,710,265 1,356,537 73,048 Navy.. 96,967 627,021 757,855 212,171 273,358 716,815 8,193 572,861 9,224 92,878 605,664 197,096 451,692 9,208 1,314 State.. Air Force.. Agency for International Development. ECONOMIC ASSISTANCE Development grants: For expenses authorized by section 212, [$225,000,000] $275,000,000, to remain available until expended. [American hospitals abroad] Development grants (special foreign currency [program] programs): For assistance authorized by section 214(b) for hospital construction, [$2,800,000 $2,000,000, to be used to purchase foreign currencies which the Treasury Department determines to be excess to the normal requirements of the United States. Surveys of investment opportunities: For expenses authorized by section 232, $1,500,000, to remain available until expended. International organizations and programs: For expenses authorized by section 302, [$148,900,000:1 $181,250,000. [Provided, That no part of any other appropriation contained in this Act, except funds appropriated under this Act for the contingency fund (not to exceed $10,000,000), may be used to augment funds or programs contained in this paragraph and no funds shall be transferred from funds appropriated under any other paragraph of title I of this Act to the contingency fund for the purpose of augmenting funds or programs contained in this paragraph.] Supporting assistance: For expenses authorized by section 402, [$395,000,000] $397,000,000. Contingency fund: For expenses authorized by section 451(a), [$250,000,000 $400,000,000. Social Progress Trust Fund: For expenses authorized by$200,000,000, to remain available until expended. Administrative expenses: For expenses authorized by section 637 (a), [$49,500,000 $57,250,000. Administrative and other expenses: For expenses authorized by section 637(b) of the Foreign Assistance Act of 1961, as amended, and by section 305 of the Mutual Defense Assistance Control Act of 1951, as amended, [$2,700,000] $3,025,000. (Foreign Aid and Related Agencies Appropriation Act, 1963; authorizing legislation to be proposed.) Note. For proposed appropriation language for other Alliance activities see Alliance for Progress-Development loans. 4. International organizations and programs: (a) United Nations technical assistance and special fund.... (b) United Nations Congo-economic 1. Development grants.-These grants are used in less developed countries to (1) provide the advisers, teachers, equipment and supplies required for the improvement of human resources, especially in administrative, educational, technical, and professional skills; (2) assist in the control and eradication of major diseases and other menaces to health; (3) establish and improve institutions, including American-sponsored schools abroad, which further economic and social development; (4) assist in planning and surveys of development programs and projects; (5) establish or improve basic physical facilities, such as communications and transport, in those relatively few countries where the economies are unable to carry the obligations entailed by development loans; (6) pay transportation charges on shipments of supplies by approved American nonprofit voluntary agencies; and (7) finance research concerning the problems of economic. development. 2. Development grants (Special foreign currency programs). This appropriation is for purchase of excess foreign currency on deposit in the Treasury in order to finance completion of a U.S.-sponsored children's hospital in Poland. 3. Surveys of investment opportunities. This program encourages private enterprise to undertake surveys of investment opportunities in the less developed areas of the world. Up to 50% of the total cost of such surveys is paid by AID in the event that the concern sponsoring the survey does not proceed with an investment. If such payment is necessary, the survey becomes AID property for use in attracting other investors. 4. International organizations and programs.—Increases anticipated for contributions to international organizations during 1964 can be attributed to four elements. First, it is anticipated that other countries will have increased their pledges to the United Nations Technical Assistance and Special Fund programs sufficiently to require $55 million in fulfillment of the U.S. pledge of 40% of any total amount pledged up to $150 million. Second, it is estimated that contributions for the United Nations economic program in the Congo will increase substantially. Third, an increased grant to the Indus Basin Development Fund will be required according to present plans. Finally, $2 million is included for the United States contribution to the new United Nations World Food Program. 5. Supporting assistance.-Support is provided through this account to countries which need help in maintaining defensive forces or in attaining economic and political stability of urgent importance to U.S. national security and foreign policy objectives. Provision is usually made on a grant basis and, to the extent feasible, supporting assistance funds are used for purposes which also contribute to development. In several cases country situations have recently stabilized sufficiently to permit significant reductions in supporting assistance and increased concentration on development. Sixty percent of present supporting assistance requirements are in Korea, Vietnam, and Turkey, countries on the immediate periphery of the Sino-Soviet bloc. 6. Contingencies.-These funds are used to meet urgent requirements which cannot be foreseen at the time the budget is prepared. They are available not only to provide emergency assistance in disasters, but also to meet important unforeseen program developments when required in the U.S. national interest. 7. Alliance for Progress.-The Appropriation Act of October 23, 1962 (Public Law 87-872) provided $425 million for development loans and $100 million for development grants to initiate the Alliance for Progress, a new cooperative approach to the development of Latin America. It is proposed that this development program be increased considerably in 1964, reflecting the importance which the United States attaches to the development of this area. With U.S. efforts complementing those of the Latin American countries, this program will make an effective contribution to the economic and social advancement of the area. 8. Social Progress Trust Fund.-In accordance with an agreement of June 19, 1961, between the United States and the Inter-American Development Bank, the Bank administers a Social Progress Trust Fund, financed by the United States, from which loans and technical assistance grants are made to foster social progress in Latin American countries. An appropriation of $200 million is requested to replenish the Fund. The $394 million obligated for the Fund in 1962 will be entirely committed by the Bank by the end of 1963. Funds are not advanced to the Bank until needed to meet disbursements from the Fund. Advances to and disbursements by the Fund are as follows (in thousands of dollars and dollar equivalents): Loans. A major portion of U.S. resources provided through foreign economic programs in less developed countries is in the form of loans. Data on loans made under the development loan activity, under the Alliance for Progress, and under the authority of the Agricultural Trade Development and Assistance Act are shown in separate schedules. A small portion of economic program funds available for grants are loaned each year rather than granted. These loans are made for economic development or essential support purposes, and may be repayable in either dollars or foreign currency. The tables below show the current status of these loans. The following table gives summary data on loans made from current obligational authority, repayable in dollars and foreign currencies, in millions of dollars and dollar equivalents. 1961 actual 1962 1963 1964 actual estimate estimate The table below shows the status of loans in millions of dollars at the end of the respective years. Most of the loans outstanding were made to Europen countries during the early years of the European recovery program and are repayable in dollars. Loans outstanding.. Undisbursed loan obligations... 1961 actual 2,450 1962 1963 1964 actual estimate estimate 2,599 2,398 2,432 Object Classification (in thousands of dollars) AGENCY FOR INTERNATIONAL DEVELOPMENT 11 Personnel compensation: Total personnel compensation.. 12 Personnel benefits... Other services... 26 Supplies and materials. 21 Travel and transportation of persons.. 18,884 18,595 20,000 13,896 14,520 15,000 8,043 7,698 8,450 1,070 Advances to the Fund... 25 264,050 Collections: income and loans.. 10,000 22 Services of other agencies. 25,000 405,100 141,700 33 Investments and loans.. the Fund.... Loan disbursements.. Grants and other disbursements - 120,530 116,000 3,960 50,000 41 Grants, subsidies, and contributions. 42 Insurance claims and indemnities. Unvouchered. Total, Agency for International Develop ment.... ALLOCATION ACCOUNTS 11 Personnel compensation: Permanent positions.... Positions other than permanent.. Other personnel compensation 586 248 247 605 12 Personnel benefits... 378 21 Travel and transportation of persons.. 886 22 Transportation of things... 27,132 27,220 27,220 |