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or foreign firms for facilities aiding in the utilization of ECONOMIC ASSISTANCE-Continued
U.S. agricultural products abroad. General and special funds-Continued
Analysis of Expenditures (in thousands of dollar equivalents) INFORMATIONAL FOREIGN CURRENCY SCHEDULES-continued
1962 1963 1964 Foreign Currency Realized Under the Agricultural Trade Development
actual estimate estimate and Assistance Act, as Amended (7 U.S.C. 1704, 104(e) Loans) Program and Financing (in thousands of dollar equivalents)
Obligated balance brought forward..
14,605 9,373 8,573 Obligations incurred, net.
29,783 31,500 33,600 1963 1964 Adjustment due to changes in exchange rates -435
estimate estimate Obligated balance carried forward (-) .. -9,373 -8,573 -8,873 Program by activities:
34,580 32,300 33,300 Loans to private enterprises (obligations) (object class 33).
29,783 31,500 33,600 Financing:
Public enterprise funds:
LOAN AND GUARANTEE PROGRAMS
Alliance for Progress---Development Loans Adjustments due to changes in exchange rates. 2,287 Unobligated balance carried forward. 214,542 230,642 246,542 Alliance for Progress [, development loans: For assistance au
thorized by section 252, $425,000,000, to remain available until Authorization to expend foreign currency
42,317 47,600 49,500 Alliance for Progress, development grants: For expenses author
ized by section 252, $100,000,000]: For assistance authorized by
section 252, including not to exceed $100,000,000 for grants, $700,A portion of the foreign currencies received from the 000,000, to remain available until expended. (Foreign Aid and Resale of agricultural surplus commodities is used by the lated Agencies Appropriation Act, 1963; authorizing legislation to be Agency for International Development to make loans to
proposed.) American firms for business development, and to domestic
Note.-Proposed appropriation language includes grants as well as loans. For
grant activity, see Grants and other programs" above. Program and Financing (in thousands of dollars)
Pursuant to authorization in section 252 of the Foreign Assistance Act of 1961, as amended, the Congress appropriated $425 million in 1963 to be used for development lending under the Alliance for Progress to remain available until expended.
In the Latin American region a dramatic change is taking place in the programs of assistance. A small bilateral program primarily emphasizing technical assistance has been changed to a major cooperative effort in which the United States is a partner with its free Latin American neighbors. This effort is a joint attack upon the economic and social problems of the hemisphere. A major aspect of United States participation in the Alliance for Progress is lending for economic development keyed to steady progress in making vital social and economic reforms. Var
End of year.
ious facets of this changed direction in giving assistance
Financial Condition (in thousands of dollars)--Continued are reflected in (1) emphasis on specific reforms and “selfhelp" measures, (2) development of sound plans and pro
actual estimate estimate grams, (3) elimination of numerous minor activities, (4) involvement of other industrialized nations, other financial
Assets-Continued institutions and U.S. land-grant universities, (5) orienta
Accounts receivable, net.
350 850 tion of the program towards major goals, such as economic integration, (6) relation of assistance programs to com
189,870 615,970 1,218,170 modity and trade problems, and (7) reorientation of field Government equity: missions. The development lending program has as its Non-interest-bearing capital: objective the rapid progress of the Latin American
Start of year
189,600 614,600 economies to the point of self-sustaining growth.
425,000 600,000 An Alliance for Progress development loan program of
Transfer of net assets from “Development
189,600 614,600 1,214,600 from Development loans-revolving fund in 1962. The
270 1,370 3,570 increase will enable the Agency to give greater emphasis Total Government equity..
189,870 615,970 11,218,170 to the use of development loans for such purposes as housing, agricultural development, industrial development, assistance to small business, and education.
Analysis of Government Equity (in thousands of dollars) Revenue, Expense, and Retained Earnings (in thousands of dollars)
Undisbursed loan obligations
46,400 311,870 682,170 Unobligated balance.--
68,970 68,700 68,700 Invested capital and earnings...
467,300 1963 1964
189,870 615,970 1,218,170 Revenue.
270 1,200 2,300 Expense 1
1 The changes in this item are reflected on the program and financing schedule. Net operating income for year270 1,100 2,200
Object Classification (in thousands of dollars) Retained earnings, start of year.270 1,370
1964 Retained earnings, end of year. 270 1,370 3,570
25 Other services: For pro rata share of expenses of Office of Inspector General, Foreign Assistance. Other administrative expenses for Alliance for Progress-Revolving fund are to be Services of other agencies..
100 financed by the regular appropriation for Administrative expenses of the Agency 33 Investment and loans...
120,900 426,370 602,200 for International Development.
120,900 426,470 602,300 Financial Condition in thousands of dollars)
Program by activities:
Administrative reservations, start of year.
Total capital outlay-obligations.
New obligational authority (appropriation) ---
Financing applied to program.
1 Balances of selected resources are identified on the statement of financial condition.
mittee. The Committee is chaired by the Administrator ECONOMIC ASSISTANCE-Continued
of Agency for International Development, and has as
its members the President of the Export-Import Bank Public enterprise funds-Continued
of Washington, the Assistant Secretary of the Treasury for LOAN AND GUARANTEE PROGRAMS-continued
International Affairs, the Assistant Secretary of State for Development Loans-Revolving Fund-Continued
Economic Affairs and the Assistant Administrator for
the Office of Development Finance and Private Enterprise. Summary of Sources and Application of Funds (in thousands of dollars) A development loan program of $1,250.8 million is pro
posed for 1964 compared with $991.8 million in 1963 and 1962 1963 1964 actual estimate estimate
$906.6 million in 1962. This increase reflects the
growing need for development assistance as a result of (1) Obligations (from program and financing). 559,069 992,009 1,251,000 an increase in effective development planning in many Increase (-) in gross unpaid obligations. -548,591 –766,991-952,100 countries, (2) the increasing ability of countries previously Gross expenditures.
10,478 225,018 298,900
receiving supporting assistance grants to utilize dollar
repayable loans for long term economic development Revenues and other receipts (from program and
purposes, and (3) an enlarged capacity among growing financing)----
8 920 3,000 countries to utilize new development capital. Increase (-) in accounts receivable, net.
-8 --422 -600 Applicable receipts.
Revenue, Expense, and Retained Earnings (in thousands of dollars)
2,400 Budget expenditures... 10,478 224,520 296,500
1962 1963 1964 actual estimate estimate
8 920 3,000 Under the Foreign Assistance Act of 1961, a five-year Expense 1
169 210 250 long-range program for development loans of $7.2 billion was authorized to be administered by the new Agency Net operating income or loss (-) for year.. -161 710 2,750
-161 549 for International Development. This program replaces Retained earnings or deficit (-), start of year. the Development Loan Fund which was abolished No
Retained earnings or deficit (-), end vember 3, 1961. $1,112.5 and $975 million have been
-161 549 3,299 appropriated under the new program for loans during 1962 and 1963, respectively.
1 For pro rata share of expenses of Office of Inspector General, Foreign Assistance.
Other administrative expenses for development loans are to be financed by the Development loans are repayable in U.S. dollars on such
regular appropriation for administrative expenses of the Agency for Internaterms and conditions as may be determined by the Presi tional Development. dent. In view of the relative incapacity of most develop
Financial Condition (in thousands of dollars) ing countries to service needed long-term loans repayable in foreign exchange, most development loans from this fund
actual estimate estimate are very long term (30–40 years), carry a %% credit fee in lieu of interest, and provide for a grace period up to 10
Assets: years prior to commencement of repayments. Loans to
912,422 1,662,902 2,614,402 financially stronger countries may be on harder terms. A Loans receivable.
10,309 235,117 533,767 revolving fund was created into which all loan repayments Accounts receivable..
8 430 and interest collections are deposited. These receipts,
Total assets... which are estimated to be $498 thousand in 1963 and $2,400
922,739 1,898,449 3,149,199 thousand in 1964, together with all funds appropriated, Government equity: continue available until expended. Dollar and foreign
Non-interest bearing capital:
922,900 1,897,900 currency receipts generated by loans entered into prior
1,112,500 975,000 1,248,000 to 1962 by the Development Loan Fund are returned to
Transfer of net assets to "Alliance for Progthe Treasury and are not available for this revolving fund. ress-development loans" (76 Stat. 258).-189,600 Development loans are being made to promote the
End of year.
922,900 1,897,900 3,145,900 economic development of less-developed friendly countries
Retained earnings or deficit (-)-
3,299 and areas, with emphasis upon existing long-range plans
Total Government equity
922,739 1,898,449 3,149,199 and programs designed to develop their economic resources and to increase their productive capacities. Criteria for the development loans are delineated in the statutes. In
Analysis of Government Equity (in thousands of dollars) making development loans, the Agency for International Development must take into account (1) whether free Undisbursed loan obligations !
548,591 1,315,582 2,267,682 world financing is available on reasonable terms, (2) the Invested capital and earnings
363,839 347,750 347,750
10,309 235, 117 533,767 economic and technical soundness of the activity to be
Total Government equity.
922,739 1,898,449 3,149,199 financed, (3) whether the development of economic resources or the increase of productive capacities gives
1 The changes in this item are reflected on the program and financing schedule. reasonable promise of being furthered, (4) consistency with other development activities or realizable long-range
Object Classification (in thousands of dollars) objectives, (5) the extent to which the recipient country is demonstrating its determination to take effective self
estimate estimate help measures and (6) possible effects upon the economy of the United States. Development loans will not be
25 Other services:
169 210 250 made unless there is a finding of a reasonable prospect of 33 Investments and loans...
558,900 991,799 1,250,750 repayment. Additional loan criteria and standards are
559,069 992,009 1,251,000 established by an inter-agency Development Loan Com
Program by activities:
49,898 71,246 72,724
296,764 339,901 346,619 Total capital outlay, funded.
346,662 411,147 419,343 Change in selected resources ?
-105,133 -355, 222-419,343 Adjustment in selected resources (loan obligations)
2,598 4,343 4,774
6,403 7,420 7,888
10,382 11,763 12,662 Unobligated balance brought forward.
335, 257 77,219 21,833 Recovery of prior year obligations...-
-6,881 -7,569 Unobligated balance transferred to "Foreign investment guarantee fund" (75 Stat. 424).
-27,114 Unobligated balance carried forward..
-77,219-21,833 -22,152 Financing applied to program.
5 28,284 121
5 62 171
1 Balances of selected resources are identified on the statement of financial condition.
Summary of Sources and Application of Funds (in thousands of dollars) governments in order to provide capital for projects and
programs contributing to the economic growth of less1963
developed free countries. estimate
Under the Foreign Assistance Act of 1961, the DevelopObligations (from program and financing) 248,762 55,925
ment Loan Fund corporation was abolished and its funcIncrease (-) or decrease in gross unpaid obli
tions were transferred, effective November 3, 1961, to the gations..
105,609 355,966 419,343 New Agency for International Development. As of this Unpaid obligations transferred to "Foreign in
date the fund had approved 217 loans and allocations and vestment guarantee fund" (75 Stat. 424) - -748 Adjustment for reconversion of foreign currency
3 guarantees for development assistance in 50 countries assets to Treasury --
64,417 44,708 49,994 amounting to $2,008.5 million. Of this total, 203 loans Adjustment for recovery of prior year obliga
and guarantee agreements had been signed totaling tions..
$1,887.7 million of which $632.9 million was actually Gross expenditures
411,284 456,599 469,337 disbursed, leaving $1,254.8 million undisbursed loan and
guarantee agreements still outstanding. In addition, the Revenues and other receipts (from program and
fund had $120.8 million unobligated funds outstanding to financing)
51,725 58,051 64,588 Increase (-) or decrease in current receivables,
provide for approved but unsigned loans. The agreenet.
-4,036 -2,119 -2.251 ments were in such fields as power, irrigation, transportaIncrease (-) or decrease in foreign currency in
tion, and industry which contribute to basic economic banks (in dollar equivalents).
development. Approximately 24% of all loans were re
payable in dollars and 76% in foreign currencies. A total Applicable receipts.
74,946 56,599 62,337
of $2,000 million was appropriated for the fund, in addition Budget expenditures..
336,338 400,000 407,000 to which receipts from operations totaling approximately
$15.5 million were also available, including $5.8 million
realized from foreign currency receipts sold to the U.S. The Development Loan Fund was established as a Treasury for dollars. corporation by the Mutual Security Act of 1958 to extend Subsequent to November 3, 1961, the fund has reloans, credits, and guarantees to American or foreign in- mained open for the purpose of liquidating outstanding dividuals, businesses, financial institutions, or foreign obligations and approved but unsigned loans. As of