Direct credit authorizations by the Bank from its inception in February 1934 through June 30, 1966, totaled $16.8 billion, including a portion of guarantees subsequently transferred to loans; disbursements were $10.9 billion, of which $6.7 billion has been repaid. Net credits authorized by the Bank in the postwar period, July 1, 1945, through June 30, 1966,

Total, all areas..

Europe..

Latin America.

Asia.

Area

Africa.

Canada.

Oceania.

Unspecified, all areas.

totaled $11.4 billion (see table 21). Europe and Latin America each accounted for approximately one-third of this amount. The bulk of the remainder was authorized for Asia. In the period since July 1, 1960, the largest volume of Bank authorizations has occurred in Latin America, followed by Europe, Asia, and Africa.

In April 1966, the Bank announced various changes in its guarantee and insurance program, designed to improve the facilities offered by increasing the amount of protection available to exporters selling on credit, reducing the cost of this protection in higher risk markets, and streamlining the processing of applications. On September 1, 1966, the Bank instituted a "rediscount" program to alleviate current liquidity problems of banks and other financial institutions and to provide further incentives to the financing of U.S. exports. Private financial institutions, primarily commercial banks, may now obtain loans of up to 1 year against their portfolios of eligible export paper. The important aspects of these changes, including the new discount program, are discussed more fully in the Bank's annual report to the Congress for fiscal year 1966.

Credits authorized directly to overseas purchasers

The total of $1,149 million authorized under this category of the Bank's operations during the period, includes long-term capital, exporter, commodity, and special foreign trade credits. Assisting in financing the purchase of U.S. goods and services, direct longterm capital equipment credit authorizations totaled $944.2 million.

4,085.6

1, 151.3 1,258.6

1,055. 6

240.8

141.6

237.7

Commodity credit authorizations consisted mainly of a $75 million line of credit to assist the Bank of Tokyo in financing purchases of raw cotton from the United States. The Bank also authorized a $90 million special foreign trade credit in favor of Nacional Financiera of Mexico.

Medium-term guarantees

During the 12 months, the Bank authorized 685 medium-term export credit guarantees to commercial banks amounting to $300.1 million.

Short- and medium-term insurance

The facilities of the Foreign Credit Insurance Association (FCIA), a voluntary unincorporated group of major U.S. insurance companies, were actively employed by U.S. exporters during the current period. Established in 1961, the FCIA, in cooperation with the Export-Import Bank, issues credit insurance covering U.S. exports sold on short- and medium-term credit against both commercial and political risks. The program is designed to increase the total volume of U.S. exports. The Export-Import Bank assumes the full political risk under these policies and, in excess of certain limits, shares the credit risk with the FCIA.

FISCAL RESULTS

During the period under review, the aggregate of the Bank's new commitments on account of direct loans, guarantees, and insurance totaled $2,142 million. Disbursements by the Bank amounted to $683.2 million, and principal repayments a g gregated $519.9 million. Gross income for the period was $178.7 million, comprising interest on loans of $175.4 million, insurance premiums and guarantee fees of $3 million, and other income of $0.3 million. The Bank paid $13.8 million in interest on money borrowed from the U.S. Treasury, and $45.9 million in interest to holders of the Bank's participation certificates and to commercial banks which had disbursed funds on behalf of the Bank under letter of credit arrangements. Operating and other expenses were $4.8 million. The resulting net income was $114.2 million. In June 1966, the Bank declared a dividend of $50 million on its capital stock which is held by the Secretary of the Treasury. The Bank's reserves and undistributed earnings reached a cumulative total of $1,008.1 million on June 30, 1966.

STATUS OF BANK RESOURCES

As of June 30, 1966, of the total lending authority of the Export-Import Bank ($9 billion), loans outstanding totaled $3,611.8 million and undisbursed authorizations were $1,876.6 million. Other charges against the Bank's authority included $377.3

The Export-Import Bank of Washington is hereby authorized to make such expenditures within the limits of funds and borrowing authority available to such corporation, and in accord with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Government Corporation Control Act, as amended, as may be necessary in carrying out the program set forth in the budget for the current fiscal year for such corporation, except as hereinafter provided.

280 Stat. 1018.

331 U.S.C. § 849.

[Doc. XII-14] 1071

LIMITATION ON OPERATING EXPENSES

Not to exceed $2,108,241,000 (of which not to exceed $1,330,000,000 shall be for equipment and services loans) shall be authorized during the current fiscal year for other than administrative expenses.

LIMITATION ON ADMINISTRATIVE EXPENSES

Not to exceed $4,134,000 (to be computed on an accrual basis) shall be available during the current fiscal year for administrative expenses, including services as authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a), and not to exceed $9,000 for entertainment allowances for members of the Board of Directors: Provided, That (1) fees or dues to international organizations of credit institutions engaged in financing foreign trade, (2) necessary expenses (including special services performed on a contract or fee basis, but not including other personal services) in connection with the acquisition, operation, maintenance, improvement, or disposition of any real or personal property belonging to the Bank or in which it has an interest, including expenses of collections of pledged collateral, or the

Document XII-15

Message From the President (Johnson) to the Congress, February 10, 1966 (Excerpts)

1

investigation or appraisal of any property in respect to which an application for a loan has been made, and (3) expenses (other than internal expenses of the Bank) incurred in connection with the issuance and servicing of guarantees, insurance, and reinsurance, shall be considered as nonadministrative expenses for the purposes hereof.

Men first joined together for the necessities of life-food for their

None of the funds made available because of the provisions of this title shall be used by the Export-Import Bank to either guarantee the payment of any obligation hereafter incurred by any Communist country (as defined in section 620 (f) of the Foreign Assistance Act of 1961, as amended) or any agency or national thereof, or in any other way to participate in the extension of credit to any such country, agency, or national, in connection with the purchase of any product by such country, agency, or national, except when the President determines that such guarantees would be in the national interest and reports each such determination to the House of Representatives and the Senate within 30 days after such determination."

1 Department of State Bulletin, Feb. 28, 1966, pp. 336-341.

22 U.S.C. § 2370.

5 See ante, doc. V-4.

families, clothing to protect them, housing to give them shelter.

These are the essentials of peace and progress.

But in the world today, these needs are still largely unfulfilled.

Hunger poisons the mind. It saps the body. It destroys hope. It is the natural enemy of every man on earth.

I propose that the United States lead the world in a war against hunger.