67 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 (formerly the Office of Civil and Defense Mobilization). No new loans were authorized during 1964. It is anticipated that there will be no additional loans authorized during 1965 and 1966. 1964 actual 1,500 4 Outstanding June 30, 1964. Changes 1965: Repayments.. Loans outstanding are estimated for 1965 and 1966 as follows (in thousands of dollars): As of June 30, 1964, a total of $7,635.8 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 $7,548.3 million has been completed as measured by procurement, expiration of contractors' options on guaranteed production, completion of facilities, completed research, etc. The balance of $87.5 million covers custodial, Treasury interest and administrative expenses. 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 an allocation to the Secretary of Agriculture from this fund. The program was completed by 1961, but interest expense still accumulates on the loss incurred. 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 uses 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, 1964, borrowing authority certified by the Office of Emergency Planning to the Department of the Interior amounting to $35.8 million and $32.1 million had been borrowed. Available borrowing authority is sufficient to meet interest payments at note maturity during 1965 and 1966. The authorization of $35.8 million will not, however, cover obligations accruing for interest due July 1, 1965. An increase of $878 thousand will be required to meet this obligation. Royalty obligations remaining on 222 contracts amount to $9,432 thousand. The royalty payments to the Government are contingent upon production. 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 totaled $4.875 thousand at the end of 1964 and are estimated at $225 thousand for 1965 and $200 thousand for 1966. administering loans to private business enterprises under Treasury Department. The function of making and authority of section 302 of the Defense Production Act of Outstanding June 30, 1965. Changes 1966: Repayments.. Outstanding June 30, 1966............. 5,319 716 4,603 790 3,813 sponsible for making and administering loans, where the Export-Import Bank of Washington. The bank was reexpansion, development, or production was in foreign countries. The program has been completely liquidated. Revenue, Expense, and Retained Earnings (in thousands of dollars) General Services Administration: Revenue. -70,330-75,739 | -76,164 -1,705 -1,480 -6 -2,770 -4,000 -6,000 -21 -4,277 -4,000 -5,940 -77,261-87,442 -85,353 -3,253 -3,155 -3,282 -960 -1,184 -1,209 2,436 694 1,742 EXPENSES OF MANAGEMENT IMPROVEMENT 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, [$300,000] $250,000, 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. (Executive Office Appropriation Act, 1965.) Program and Financing (in thousands of dollars) Total Government equity....1,302,999 1,318,421 1,280,537 1,190,835 ALLOCATION ACCOUNTS 11.3 Personnel compensation: Positions other 1964 actual 1965 1966 estimate estimate 248 than permanent.. 12.0 Personnel benefits.. 21.0 Travel and transportation of 24.0 Printing and reproduction............ 1 5 25.1 Other services.. 25.2 Services of other agencies. 3 26.0 Supplies and materials. 31.0 Equipment...- 2 The Inter-American Development Bank (IDB) is an intergovernmental institution, corporate in form, whose capital stock is owned by its member governments. Bank promotes economic development in member countries through loans, technical assistance, and guarantees of private investment in development projects. Twenty Western Hemisphere republics, including the United States, are members of the Bank, and all have completed 300 required payments on their authorized subscriptions and quotas. Cuba is not a member of the Bank. 300 INVESTMENT IN INTER-AMERICAN Development Bank For subscription to the Inter-American Development Bank for the [first] second installment on the increase in callable capital stock $205,880,000, to remain available until expended. (73 Stat. 0 Ordinary Capital.-The Bank's authorized ordinary capital is the equivalent of $2,150 million of which $1,285 thousand had been subscribed as of October 31, 1964. Of the total subscribed, the equivalent of $381,580 thousand has been paid in, and the remaining $903,405 thousand is subject to call by the Bank if required to meet its obligations arising out of borrowings or guarantees. The Bank's original authorized capital of $850 million was enlarged to $2,150 million in 1964 through a $1 billion increase in callable capital, to be subscribed by current members in two installments during calendar 1964 and 1965, and a $300 million increase to provide for the possible admission of new members. Public Law 86-147, approved August 7, 1959, authorized U.S. membership in the Bank, and authorized appropriation of $350 million to cover the U.S. subscription to ordinary capital. This original subscription was appropriated in several installments; $150 million was paid immediately and $200 million held by the Treasury against Bank calls. Public Law 88-259, approved January 22, 1964, authorized appropriation of an additional $411,760 thousand to cover an increase in the U.S. callable subscription. One-half of the increase was appropriated and subscribed in calendar 1964. The second half, amounting to $205,880 thousand, is the subject of the present request and must be subscribed during calendar 1965. When this subscription is completed, the United States will have subscribed a total of $611,760 thousand in callable capital. The U.S. subscription to callable capital enables the Bank to raise funds for lending through bond sales in private capital markets in the United States and elsewhere. The Bank has pledged itself to limit borrowings to the amount of the U.S. callable capital subscription. Funds appropriated for the U.S. subscription will remain subject to call by the Bank only as required in the unlikely INTERNATIONAL FINANCIAL INSTITUTIONS Continued General and special funds-Continued INVESTMENT IN INTER-AMERICAN DEVELOPMENT BANK-Con. event the Bank should be unable to meet its obligations arising out of borrowings or guarantees. As of November 30, 1964, the Bank had borrowed a total of $272.6 million equivalent. By the end of December 1964, Bank commitments from ordinary capital had reached $557.8 million on 108 loans. Fund for Special Operations. In addition to its ordinary capital operations, the Bank lends from its Fund for Special Operations in circumstances where ordinary capital financing is not appropriate. The initial resources of this Fund totaled $146.3 million, one-half payable in dollars and one-half in member currencies. The resources of the Fund were increased by 50% in early 1964, bringing total resources to $219.5 million. Public Law 86-147, approved August 7, 1959, authorized payment of the initial U.S. quota of $100 million; Public Law 88-259, approved January 22, 1964, authorized payment of $50 million for the 50% increase in the U.S. quota. The resources of the Fund for Special Operations will be fully committed by early 1965 for loans in support of Alliance for Progress objectives. In April 1964, the Board of Governors of the Bank recommended an increase in Fund resources of $300 million per year for the years 1965, 1966, and 1967. The U.S. share of this increase would be $250 million per year or a total of $750 million. Authorizing legislation for the latter amount is now before the Congress. An appropriation for the first installment is being sought in 1965, with subsequent installments in 1966 and 1967. The first two appropriations necessary to fulfill this commitment are shown below as proposed for separate transmittal. Since 1961, the IDB has administered the Social Progress Trust Fund (SPTF) on behalf of the United States. This Fund now amounts to $525 million, provided entirely by the United States, and is devoted to loans for land settlement and improved land use, low-income housing, water supply and sanitation facilities, and education. With the proposed expansion of the Fund for Special Operations, no further U.S. contributions would be made to the SPTF, and the lending activities of the expanded FSO would be broadened to include those previously carried on by the SPTF. As of December 1964, commitments from the FSO amounted to $164 million on 50 loans. Proposed for separate transmittal: INVESTMENT IN INTER-AMERICAN DEVELOPMENT BANK 1966 estimate The International Development Association is an affiliate of the International Bank for Reconstruction and Development, established to provide long-term, lowinterest loans to its less developed member countries. U.S. membership was authorized by Public Law 86-565 (74 Stat. 293), approved June 30, 1960. The United States joined in August 1960, and the Association began operations in November 1960. The initial subscription of the United States totaled $320,290 thousand, paid in five annual installments, the last of which was paid in November 1964. Seventeen advanced countries agreed in June 1964 to add to IDA's original resources through supplementary contributions totaling $750 million, payable in annual installments during 1966, 1967, and 1968. The U.S. share is $312 million, or $104 million per year. The 1966 250,000 appropriation request is for the first installment of $104 million which must be paid on or before November 8, 1965. Legislation authorizing U.S. participation in the increase 250,000 and appropriation of the necessary amounts was approved on May 26, 1964 (Public Law 88-310). Under proposed legislation, 1965.-A proposed supplemental appropriation of $1,031,250 thousand is anticipated to cover an increase in the United States quota in the International monetary fund. Legislation will be proposed to authorize this quota increase as part of a general increase in quotas by all members of the fund designed to improve the fund's ability to provide needed international credit facilities. One-quarter of the increase is payable in gold and will be promptly expended; the balance of $773.4 million will be made available, but no expenditure is anticipated in 1965 and 1966. Public Law 87-872 contained the necessary appropriation, and on October 24, 1962, the United States formally adhered to the arrangement, which was embodied in a decision of the Executive Directors of the International Monetary Fund of January 5, 1962. The United States now is in a position to lend up to $2 billion to the Fund, but would not be expected to do so in the absence of a substantial further improvement in its balance-of-payments position. INVESTMENT IN INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Program and Financing (in thousands of dollars) Identification code 04-35-0000-0-1-152 Financing: 21.47 Unobligated balance available, start of year: Authorization to expend from public debt receipts.. 24.47 Unobligated balance available, end of year: Authorization to expend from public debt receipts.. 90 New obligational authority.. Relation of obligations to expenditures: Expenditures.. The Bretton Woods Agreements Act of July 31, 1945, authorized the acceptance of membership in the International Bank for Reconstruction and Development and the subscription of $3,175 million to its capital stock. On June 17, 1959 (73 Stat. 80), the Bretton Woods Agreements Act was amended to increase the U.S. subscription to callable capital stock by $3,175 million. The Bank's total authorized capital stock is $22 billion, of which $21.2 billion has been subscribed by its 102 member countries. The United States paid $635 million of the original subscription in cash and non-interest-bearing nonnegotiable notes. The remaining balance ($5,715 million) has been made available, but will not be called unless required to meet the Bank's obligations. Calls on unpaid subscriptions, were they ever to occur, would be a uniform percentage of the amounts subscribed by each member country. By the end of December 1964, the Bank had made net loans totalling $8.2 billion in 74 member countries and territories. MUTUAL DEFENSE AND DEVELOPMENT The mutual defense and development programs contribute to the achievement of United States foreign policy objectives. They provide the means for helping other countries to achieve an adequate defense against attack and subversion and foster a rate of development which promotes the dynamic and independent growth of developcategories-military assistance and economic assistance. ing nations. The programs are grouped into two major |