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1962 actual


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:
Unobligated balance brought forward (-)--- -312,945 -214,542 -230,642
Adjustment of balance of authorizations to

funded basis.--

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

expended. receipts.

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)

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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

270 --50



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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

Total assets...

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
loans-revolving fund”.

$602.2 million is proposed for 1964 compared with
$426.4 million in 1963, and with $189.6 million financed

189,600 614,600 1,214,600 from Development loans-revolving fund in 1962. The

Retained earnings..

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

74,500 235,400
estimate estimate
Total Government equity--

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

actual estimate

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.

Total obligations...

120,900 426,470 602,300 Financial Condition in thousands of dollars)

1962 actual




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Program by activities:
Capital outlay:
i. Loans to less developed countries...

Administrative reservations, start of year.
Administrative reservations, end of year (-).
Change in selected resources

Total capital outlay-obligations.
Operating costs, funded:
2. Expense (obligations)

Total obligations.

New obligational authority (appropriation) ---
Revenues and other receipts:

Unobligated balance brought forward.
Transfered to "Alliance for Progress-Development loans" (76 Stat. 258)
Unobligated balance carried forward....

Financing applied to program.

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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

of year





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

Treasury balance..

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:
Start of year

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:
Services of other agencies.

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

Total obligations....

559,069 992,009 1,251,000 established by an inter-agency Development Loan Com


1962 actual


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Program by activities:
Capital outlay:
1. Loans repayable in dollars.

49,898 71,246 72,724
2. Loans repayable in local currency.

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)

Total capital outlay-obligations (object class 33).-.-- 248,713 55,925
Revenues and other receipts:
Repayment of loans...

2,598 4,343 4,774
Proceeds from sale of foreign currency.

Interest earned on loans...

6,403 7,420 7,888
Interest on foreign currency bank deposits.
Guarantee fees earned..

Other revenue.

Net gain or loss (-) on foreign currency holdings.
Refund—inspector general....

Total revenues and other receipts..

10,382 11,763 12,662 Unobligated balance brought forward.

335, 257 77,219 21,833 Recovery of prior year obligations...-

Transfer to Treasury of collections no longer available.
Unobligated balance lapsing-
Capital transfers:
Repayment of capital investment (loan repayments).

-4,343 -4,774
Payment of earnings (interest receipts).

-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.

248,713 55,925


5 28,284 121

5 62 171



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1 Balances of selected resources are identified on the statement of financial condition.

1962 actual

1964 estimate

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).

27,257 667

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

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