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FOREIGN ASSISTANCE-Continued

[In millions of dollars)

1962 General and special funds-Continued

actual

Undelivered orders at beginning of year.. 1.738.8 1. MILITARY ASSISTANCE-continued

New items ordered..

803.7 Deliveries...

850,7 1, and the military services are paid when the items are delivered.

Undelivered orders at end of year. 1,691.9 1, The kind of materiel supplied by the United States

Payment for deliveries....

813.6 1,0 varies with objectives in each area and the requirements and capabilities of the individual countries. The present Obligations for requirements other than emphasis is on modernization of conventional equipment tions9. Offshore procurement.—The procur in less-developed areas where U.S. assistance is needed to

ment and supplies abroad for the mili supplement their production or financial capability program is subject to the provisions of se Whenever possible, materiel already on hand but excess the Foreign Assistance Act of 1961, as am to the needs of U.S. forces is supplied, at no charge to the military assistance program except for the cost of rehabili- handling, storing, and transporting mili

10. Supply operations.The annual cc tation and transportation.

materiel varies in proportion to the type Grant aid operations: Reservations for requirements ordered from U.S. military services—1. Aircraft.-In 1963

destination of goods delivered. and 1964, aircraft will be funded partly through reserva

11. Training.-Training programs in fr tions and partly by direct obligations as shown above.

tries are required to insure effective use of t! Emphasis is to be placed on more advanced aircraft in and equipment supplied through the mili selected countries. At the same time, the air forces of program, teach basic skills to forces of many less-developed countries are replacing obsolete

nations, and create favorable attitudes tow planes with later model aircraft.

States and its policies. 2. Ships.--New construction of patrol, mine-sweeping 12. Administration.-The administrativ and other type vessels is included in the 1964 program. the program incurred by U.S. military assis Reactivation and rehabilitation of ships from the U.S. groups, the unified commands overseas, a "mothball" fleet to meet other naval requirements of ments are included. our allies can only be met under authority of ship loan 13. Contributions to international militar legislation.

and agencies.--Included are the assessments 3. Tanks, other vehicles, and weapons. Included is the United States in accordance with costcombat and support equipment ranging from artillery, ments for the administrative support of tanks, and other heavy vehicles to small arms and jeeps. headquarters and agencies, including the s Some of these items are supplied from existing U.S. stocks.

of the NATO, SEAŤO, and the CENTO. The 1964 program includes continuing replacement of

14. Contributions to construction of faci worn-out or obsolete equipment in the forces of less

countries. Included are (a) construction o developed countries. 4. Ammunition. Most of the ammunition to be sup

logistical facilities under the jointly fin plied as grant aid in 1964 will be used for training allied

infrastructure program, and (b) contract co

engineering services and related overhead i troops. 5. Missiles.- Programing for modernization of forces

tary assistance construction. with ballistic and other guided missiles, primarily in

15. Research and development.-- Provides NATO, reached a peak in 1961 and continues at à de

sistance for prior year projects relating to creased level in 1964. In addition, the 1964 program

development of weapons and weapons systei provides for maintenance of certain of the equipment

interest undertaken by our allies in certain 1 previously furnished.

their facilities showed promise of prompt su 6. Electronic equipment.The 1964 program continues

16. Other activities. These include U.S. the modernization of military communications systems in programs of coordinated weapons productie less-developed countries.

Sales operations.-Military materiel is pui 7. Military public works.-Materiel and equipment di United States by many countries, includin; rectly supplied by the United States for military assistance do not receive grant aid. Most sales fine construction are procured through the military service Department of Defense on a credit basis supply systems. Other U.S. costs for this construction financed by military assistance appropriatio are met initially by the military assistance program and ing on the circumstances, repayment of cre are cited in paragraph 14 below.

be in dollars, in local currency, or in materi 8. Other. -A variety of special purpose equipment, and The following table shows the repaymer other supplies, and repair and rehabilitation of 'used

reuse for new credit sales (in millions of doll: equipment not covered above are provided through orders placed with the U.S. services.

43.8 Unused collections, beginning of year.

40. Because of the timelag in manufacturers lead time, and

Collection of credit sales..

14.6 the worldwide supply operation, a large proportion of

Collections reused.--

18.4

79. the items delivered by the U.S. services in any year result Unused collections, end of year..

40.0

5. from orders placed in previous years.

The following table reflects the undelivered orders Local currency repayments may be use placed with the military services in prior years, the new finance additional programs or converted in items ordered, and the deliveries and payments made finance additional credit sales. Such dolla: (a detail table appears in Defense Military chapter). are included in the above table.

1962 actual 1963 esta

45.

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76

MILITARY ASSISTANCE

MILITARY ASSISTANCE Grant aid operations:

Total number of permanent positions..

4,245 3,516 3,520 Reservations:

Full-time equivalent of other positions..

38 25 Other services.

88,524 57,288 82,865
Average number of all employees..

3,982 3,454 3,472 26 Supplies and materials. 212,476 168,028 201,741 Number of employees at end of year.

3,946 3,492 3,501 31 Equipment.-504,554 419,246 602,394 Average GS grade....

7.9

8.0 8.0 Subtotal.. 805,554 644,562 887,000 Average GS salary...

$6,911 $7,452 $7,598

Average grade, grades established by the SecreObligations:

tary of Defense...

5.4 3.7 3.7 11 Personnel compensation:

Average salary, salaries established by the Sec-
Permanent positions...

18,491 18,079 19,144
retary of Defense.

$13,349 $13,874 $14,014 Positions other than permanent ---- 67

42

42
Average salary of ungraded positions..

$1,682 $1,500 $1,526 Other personnel compensation....

866

655 799 Total personnel compensation.... 19,425 18,776 19,984

ALLOCATION ACCOUNTS 12 Personnel benefits....

7,221 8,857

8,905
Total number of permanent positions..

850 13 Benefits for former personnel.

1,003

850 21 Travel and transportation of persons.

5 Full-time equivalent of other positions..

5 51,197

5
56,362
50,576

747

Average number of all employees.22 Transportation of things.....

775 775 60,140 60,698 70,649 Number of employees at end of year.

788 800 800 23 Rent, communications, and utilities... 2,212 2,222 2,299 24 Printing and reproduction.

Average grade established by the Foreign Serv

172 193 195 25 Other services.

135,572 127,810 121,774

ice Act of 1946, as amended (22 U.S.C. 26 Supplies and materials..

28, 172 25,758 27,761
801-1158):

4.1 31 Equipment.--

387,270 214,046

Foreign Service reserve.. 157,842

11.1 32 Lands and structures.

4,650 4,199 4,577

Foreign Service staff. 41 Grants, subsidies, and contributions... 63,958 92,328 88,443

Average salary established by the Foreign Serv42 Insurance claims and indemnities.-

ice Act of 1946, as amended (22 U.S.C.

801-1158):
Total, Defense Military-
759,984 605,462 558,792 Foreign Service reserve.

$11,617
Foreign Service staff..

$5,256 ALLOCATION ACCOUNTS

Average salary of ungraded positions.

$1,194 $1,574 $1,574 11 Personnel compensation: Permanent positions.--

1,240 1,220 1,220 Positions other than permanent..

8
8

8 Other personnel compensation.

103

76 Total personnel compensation. 1,352 1,304 1,304

ECONOMIC ASSISTANCE 12 Personnel benefits...

39
8

8 21 Travel and transportation of persons.

Development grants: For expenses authorized by section 212, 66 30

30 22 Transportation of things.--

125
110 110

[$225,000,000] $275,000,000, to remain available until expended. 23 Rent, communications, and utilities.

1,776 2,159 2,104

[American hospitals abroad] Development grants (special foreign 24 Printing and reproduction...

3

currency [program] programs): For assistance authorized by sec4

4 25 Other services...

4,596 3,940 3,979

tion 214(b) for hospital construction, [$2,800,000] $2,000,000, to 26 Supplies and materials.

750 925 925

be used to purchase foreign currencies which the Treasury Depart31 Equipment..

572 738 738

ment determines to be excess to the normal requirements of the

United States. 41 Grants, subsidies, and contributions.

227

6 42 Insurance claims and indemnities.

Surveys of investment opportunities: For expenses authorized by 2

section 232, $1,500,000, to remain available until expended. Total, allocation accounts.--

9,507 9,224 9,208 International organizations and programs: For expenses authorTotal, grant aid operations...

1,575,045 1,259,248 1,455,000

ized by section 302, ($148,900,000:] $181,250,000. [Provided, That Sales operations:

no part of any other appropriation contained in this Act, except 25 Other services.

3,005 13,500 12,500

funds appropriated under this Act for the contingency fund (not to 26 Supplies and materials.

2,303 22,984 11,575

exceed $10,000,000), may be used to augment funds or programs 31 Equipment..

11,280 108,095 55,996

contained in this paragraph and no funds shall be transferred from

funds appropriated under any other paragraph of title I of this Act Total, sales operations..

16,587 144,579 80,071 to the contingency fund for the purpose of augmenting funds or

programs contained in this paragraph.] Total program.--

1,591,632 1,403,827 1,535,071 Supporting assistance: For expenses authorized by section 402, Increase (-) or decrease in outstanding reser

[$395,000,000] $397,000,000. vations for requirements ordered from mili

Contingency fund: For expenses authorized by section 451(a), tary services (69 Stat. 438)

46,930 306,438-178,534 [$250,000,000] $400,000,000. Total obligations. 1,638,562 1,710,265 1,356,537

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. Obligations are distributed as follows:

Administrative and other expenses: For expenses authorized by Secretary of Defense..

73,048 96,967 92,878

section 637(b) of the Foreign Assistance Act of 1961, as amended, Army.

627,021 757,855 605,664

and by section 305 of the Mutual Defense Assistance Control Act Navy.

212,171 273,358 197,096

of 1951, as amended, [$2,700,000] $3,025,000. (Foreign Aid and Air Force

716,815 572,861 451,692 Related Agencies Appropriation Act, 1963; authorizing legislation to State.

8,193 9,224 9,208

be proposed.) Agency for International Development.

1,314

Note. For proposed appropriation language for other Alliance activities see Alliance for Progress-Development loans.

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New obligational authority:
Appropriation..

1,202,100 1,173,900 1,617,025
Transferred from "Military assistance" (75
Stat. 442).

23,000
Transferred to (-)--
"Advance acquisition of property(75
Stat. 441

-5.000
"Operating expenses, Public Buildings

Service," General Services Administra-
tion (76 Stat. 728) --

-178
Appropriations (adjusted).

1,220,100 1,173,722 1,617,025

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Total development grants.... 2. Development grants (special foreign cur

rency programs)---3. Surveys of investment opportunities.. 4. International organizations and programs: (a) United Nations technical assistance

and special fund. (b) United Nations Congo-economic

program... (c) United Nations Relief and Works

Agency --(d) United Nations Children's Fund.. (e) Atoms for Peace.... ( World Health Organization, special

programs. (g) North Atlantic Treaty Organiza

tion, science program. (h) African Regional Programs.. (i) United Nations Emergency Force.-(j) United Nations Congo-military

operations... (k) International Control Commission,

Laos... (1) OAS Assistance to Dominican Re

public... (m) Indus Basin development. (n) Asian productivity organization..

Total, international organiza

tions and programs. 5. Supporting assistance:

(a) Far East...
(b) Near East and South Asia.
(c) Europe and Africa..
(d) Latin America.
(e) Nonregional..

Total, supporting assistance...
6. Contingencies ---
7. Alliance for Progress:

(a) Development grants.
(b) Chilean reconstruction program.

Total, Alliance for Progress..
8. Investment in Social Progress Trust Fund.
9. Administrative expenses (Agency for In-

ternational Development) 10. Administrative expenses (State).

Total, obligations
Financing:
Comparative transfers to or from (-) other

accounts...
Unobligated balance brought forward (-):

Annual appropriation acts.-
Other legislative authority: Authorization

to expend from public debt receipts... Recovery of prior year obligations

45,000 50,000

1. Development grants.- These grants are used in less 43,000 34,300

developed countries to (1) provide the advisers, teachers,

equipment and supplies required for the improvement of 17,938 17,200 12,000 12,000

human resources, especially in administrative, educa650 1,250

tional, technical, and professional skills; (2) assist in the

control and eradication of major diseases and other 3,400 674

menaces to health; (3) establish and improve institutions, 1,387

including American-sponsored schools abroad, which 1,473 181,250 1,850 600

further economic and social development; (4) assist in 1,800 1,320

planning and surveys of development programs and

projects; (5) establish or improve basic physical facilities, 20,256

such as communications and transport, in those relatively 300

few countries where the economies are unable to carry the obligations entailed by development loans; (6) pay

transportation charges on shipments of supplies by ap34,500 30,000 211 200

proved American nonprofit voluntary agencies; and (7) finance research concerning the problems of economic

development. 182,292 149,074 181,250

2. Development grants (Special foreign currency pro

grams).- This appropriation is for purchase of excess 279,926 305,485

foreign currency on deposit in the Treasury in order to 270,273 89,966

finance completion of a U.S.-sponsored children's hospital 86,874 35,986 407,000 in Poland. 107,350 17,993 400

3. Surveys of investment opportunities.--This program 744,780

encourages private enterprise to undertake surveys of 449,830 407,000

investment opportunities in the less developed areas of 250,575 400,000 the world. Up to 50% of the total cost of such surveys

is paid by AID in the event that the concern sponsoring 94,716 124,803 105,000

the survey does not proceed with an investment. If such 100,000

payment is necessary, the survey becomes AID property 194,716_124,803 for use in attracting other investors. 394,000

200,000

4. International organizations and programs.-Increases

anticipated for contributions to international organiza51,094 52,061 57,250 tions during 1964 can be attributed to four elements. 5,036 2,851 3,025

First, it is anticipated that other countries will have 1,862, 194 1,303,207 1,647,025 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 46,011

40% of any total amount pledged up to $150 million

Second, it is estimated that contributions for the United --656,693 -61,785

Nations economic program in the Congo will increase -312 --545 -545

substantially. Third, an increased grant to the Indus -95,394-67,700 – 30,000 Basin Development Fund will be required according to

03, 105,000

1961 actual

1963 estimate

1964 estimale

actual

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1962

1963 estimate

estimate

present plans. Finally, $2 million is included for the Loans.-A major portion of U.S. resources provided United States contribution to the new United Nations through foreign economic

through foreign economic programs in less developed World Food Program.

loans Data on loans made 5. Supporting assistance. Support is provided through under the development loan activity, under the Alliance this account to countries which need help in maintaining for Progress, and under the authority of the Agricultural defensive forces or in attaining economic and political Trade Development and Assistance Act are shown in stability of urgent importance to U.S. national security separate schedules. A small portion of economic program and foreign policy objectives. Provision is usually made funds available for grants are loaned each year rather on a grant basis and, to the extent feasible, supporting than granted. These loans are made for economic deassistance funds are used for purposes which also con velopment or essential support purposes, and may be tribute to development. In several cases country situa- repayable in either dollars or foreign currency. The tables tions have recently stabilized sufficiently to permit below show the current status of these loans. significant reductions in supporting assistance and in The following table gives summary data on loans made creased concentration on development. Sixty percent of from current obligational authority, repayable in dollars present supporting assistance requirements are in Korea, and foreign currencies, in millions of dollars and dollar Vietnam, and Turkey, countries on the immediate equivalents.

1962 periphery of the Sino-Soviet bloc. 6. Contingencies. These funds are used to meet urgent

Loan obligations incurred:

31 Repayable in dollars..

227 62 50 requirements which cannot be foreseen at the time the

Repayable in foreign currency.

45 15 budget is prepared. They are available not only to Loan disbursements made: provide emergency assistance in disasters, but also to Repayable in dollars..

16 147 132 75 meet important unforeseen program developments when

Repayable in foreign currency.

69 51 14 14

Loan principal repayments: required in the U.S. national interest.

Dollars...

49 46 342 48 7. Alliance for Progress.—The Appropriation Act of Foreign currency.

1

3 5 7 October 23, 1962 (Public Law 87-872) provided $425

Interest collections:
Dollars.

39

39 39 million for development loans and $100 million for develop

Foreign currency -

12 26 31 35 ment grants to initiate the Alliance for Progress, a new cooperative approach to the development of Latin

The table below shows the status of loans in millions of America. It is proposed that this development program dollars at the end of the respective years. Most of the be increased considerably in 1964, reflecting the importance loans outstanding were made to Europen countries during which the United States attaches to the development of the early years of the European recovery program and are this area. With U.S. efforts complementing those of the repayable in dollars.

1961

1964 Latin American countries, this program will make an

actual actual effective contribution to the economic and social advance Loans outstanding

2,450 2,599 2,398 2,432 ment of the area.

Undisbursed loan obligations.

160 204 120

81

2 Interest past due..

2 8. Social Progress Trust Fund.-In accordance with an agreement of June 19, 1961, between the United States

Object Classification (in thousands of dollars) and the Inter-American Development Bank, the Bank

1962 administers a Social Progress Trust Fund, financed by the

actual estimate estimate United States, from which loans and technical assistance grants are made to foster social progress in Latin American AGENCY FOR INTERNATIONAL

DEVELOPMENT
countries. An appropriation of $200 million is requested
to replenish the Fund. The $394 million obligated for

11 Personnel compensation:
Permanent positions.

71,439 78,872 83,631 the Fund in 1962 will be entirely committed by the Bank

Positions other than permanent.

1,796 2,381 2,430 by the end of 1963. Funds are not advanced to the Bank Other personnel compensation

6,656 7,065 7,488 until needed to meet disbursements from the Fund. Ad

Total personnel compensation.

79,891 88,318 93,549 vances to and disbursements by the Fund are as follows 12 Personnel benefits...

8,481 9,358 9,810 (in thousands of dollars and dollar equivalents):

21 Travel and transportation of persons. 18,884 18,595 20,000 22 Transportation of things..

13,896 14,520 15,000 1962 actual 1963 estimate 1964 estimate 23 Rent, communications, and utilities

8,043 7,698 8,450 2,153 Balance brought forward.

616

927 24 Printing and reproduction...

947 1,070 Advances to the Fund.. 10,000 45,000 117,000 25 Other services..

231,538 246,783 264,050 Collections: income and loans..

22 1,396

2,914
Services of other agencies..

23,882 23,663 25,000 26 Supplies and materials.

353,539 361,458 405,100 Total available for disbursement by

31 Equipment.--

124,094 127,734 141,700 the Fund. 10,022 48,549 120,530 33 Investments and loans..

242,540 62,100 50,000 Loan disbursements.. 6,323 44,000

202,957
41 Grants, subsidies, and contributions.
116,000

213,247 239,965
64
6

5 Grants and other disbursements

42 Insurance claims and indemnities.
1,546 3,933 3,960
Unvouchered

5
5

5 Balance carried forward... 2,153

616
570

Total, Agency for International Develop-
ment.---

1,308,741 1,174,432 1,273,704

ALLOCATION ACCOUNTS 9. Administrative expenses (AID).-These funds are used

11 Personnel compensation: by the Agency for International Development in Wash

Permanent positions.

5,202 6,075 6,709 ington and overseas missions to administer economic

Positions other than permanent.

586 248 247 programs.

Other personnel compensation..

545 588 605 10. Administrative and other expenses (State). --Admin

Total personnel compensation.

6,333 6,911 7,560 12 Personnel benefits...

378 493 istrative expense funds are requested for the Department

542 21 Travel and transportation of persons.

886 798

814 of State for support of personnel involved in the admin

22 Transportation of things--

27,132 27,220 27,220 istration of the foreign assistance program and in admin 23 Rent, communications, and utilities.

122 138 istration of the Battle Act.

24 Printing and reproduction..

67 56 59

1963

1964

121

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Personnel Summary

AGENCY FOR INTERNATIONAL DEVEL

OPMENT

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Total number of permanent positions--
Full-time equivalent of other positions.
Average number of all employees
Number of employees at end of year..
Average GS grade..
Average GS salary-
Average grade, grades established by the For-

eign Service Act of 1946, as amended (22

U.S.C. 801-1158):
Foreign Service Reserve officers.

Foreign Service Staff.
Average salary, grades established by the For-

eign Service Act of 1946, as amended (22

U.S.C. 801-1158):
Foreign Service Reserve officers...

Foreign Service Staff..
Average salary of ungraded positions.

Through 1961, a portion of the mutual appropriations was used to purchase surpl

commodities which were then sold to frie 13,075 for their currencies. Sales of these commo 228

being made through the Food for Peace pro 12,170 12,154

currencies accruing from the sales through 9.5

mutual security program are deposited in a s $8,757 and are used for economic and military

furtherance of objectives of the U.S. foreign

gram. These activities include the local cos 4.0 budget support of the less-developed coun 8.2 curement of supplies and equipment for thir

Object Classification (in thousands of dollar equiv

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