the end of 1956, when estimated Indonesian cement requirements will be approximately three times that tonnage. The credit conforms to the terms stipulated in the commitment of February 8, 1950. It will bear interest at the rate of 3/21⁄2 percent per annum payable semiannually and will be repayable in 30 approximately equal semiannual installments beginning March 1, 1956. Union of South Africa Under the commitment of $92,000,000 for financing the construction of uranium-separation plants and related facilities by South African gold mining companies described elsewhere in this report, the Bank established two credits in the amount of $4,178,100 each, in favor of Welkom Gold Mining Co., Ltd., and President Steyn Gold Mining Co., Ltd. In addition, certain previously established lines of credit were increased as shown in table 2 to compensate for exchange fluctuation, and to meet revised estimates of the cost of completion of the projects as well as the cost of certain additions to plant facilities and changes in layout not originally contemplated. Payments in Arrears As of June 30, 1953, installments of $2,996,275.55 principal and $3,791,435.80 interest, a total of $6,787,711.35, were past due on loans which have not been declared in default and written off against reserves because it is believed that the arrearages will eventually be paid. Loans in Default Six loans remained in default in the total amount of $219,076.59 as of June 30, 1953, and were fully reserved on the Bank's books. Collections on loans in this category during the 6 months under review amounted to $1,291.96. Losses previously written off since the establishment of the Bank in 1934 total $279,562.76. CHAPTER III Other Functions and Operations Operations of the Bank as agent for other agencies of government are carried on the books of the Bank independently of operations under the Export-Import Bank Act of 1945. Activities Under the Mutual Security Act of 1951 and 1952 Credits The Bank acts as agent for the Director for Mutual Security in establishing and administering the credits authorized under the Economic Cooperation Act of 1948, as amended, and the Mutual Security Acts of 1951 and 1952 (appendix I). As of June 30, 1953, the cumulative total of credits so established thereunder was $1,571,497,000, against which $1,529,741,000 has been disbursed. The status of these loans and credits is indicated in appendix J. Funds amounting to $11,725,832.61, representing interest collected by the Bank on loans made by it pursuant to section 111 of the Economic Cooperation Act of 1948, as amended, during the semiannual period ended June 30, 1953, were paid over by the Bank to the United States Treasury for application as interest due on notes issued by the Administrator for Economic Cooperation and by the Director for Mutual Security in connection with the loans. Guaranties Under an agreement between the Bank and the Director for Mutual Security, the Bank issues, as agent for and upon terms specified by the Director, currency transfer guaranties and guaranties against loss from expropriation or confiscation in the case of new investments by United States investors approved ized by the provisions of section 111 (b) (3) of the Economic Cooperation Act of 1948, as amended, and section 520 of the Mutual Security Act of 1951. In the 6-month period ended June 30, 1953, the Bank, on authorization by the Director, issued 8 new guaranties and modified the amounts of 15 previously issued guaranties as listed in table 3. These operations resulted in a net reduction of $451,244.79 from outstanding guaranties, which reflected the maximum liability of $34,461,246.44 as of June 30, 1953, consisting of $32,887,015.44 in currency transfer guaranties and $1,574,231.00 in guaranties against loss from expropriation or confiscation. Details concerning these guaranties are supplied in appendix J. Informational Media Guaranties The Bank acts as disbursing agent for the Department of State in the matter of guaranties of convertibility of receipts from the production and distribution of informational media authorized by the Congress under section 111 (b) (3) of the Economic Cooperation Act of 1948, as amended. The function of making and administering the informational media guaranties was transferred by Executive Order 10368, dated June 30, 1952, from the Mutual Security Agency to the Department of State. Lending Operations Under Defense Production Act of 1950, as Amended Section 301 of Executive Order No. 10281, promulgated by the President on August 28, 1951, authorized and directed the Export-Import Bank to make loans (including participations in loans) provided for under section 302 of the Defense Production Act of 1950, as amended (appendix K). Such loans may be made to private business enterprises, upon receipt by the Bank of certificates of essentiality, for the expansion of capacity, the development of technological processes, and the production of essential materials in foreign countries, including the exploration, development, and mining of strategic and critical metals and minerals, upon a finding by the Bank that 265924 0-53- -3 |