the period under review, the Bank issued 285 medium-term comprehensive risk guaranties for $131.6 million, and 30 new and renewed war risk and expropriation insurance policies on consigned exports of cotton and tobacco amounting to $1.3 million. The Foreign Credit Insurance Association issued 957 new and renewed export credit insurance policies with a face value of $221.6 million.

Loan authorizations by the Bank from its inception in February 1934 through December 31, 1963, totaled $13.9 billion; disbursements were $9.3 billion, of which $5.7 billion has been repaid. As indicated in table 16, net credits authorized by the Bank in the post-war period, July 1, 1945, through December 31, 1963, totaled $9.8 billion. Over one-third of this amount or $3.5 billion was authorized for Europe, and an almost equivalent amount for Latin America. The bulk of the remainder or $2.3 billion was authorized for Asia. In the more recent periods since July 1, 1950, however, the largest increases in Bank authorizations have occurred in Latin America, followed by Asia and Europe.

On August 20, 1963, President Kennedy signed into law legislation which extended the life of the Bank to June 30, 1968; 11 increased its lending authority from $7 billion to $9 billion; and increased its guaranty and insurance authority, subject to a 25 percent reserve, from $1 billion to $2 billion. Prior to December 31, 1963, the Congress also enacted legislation, signed by President Johnson on January 6, 1964,12 under which the Bank may issue guaranties or extend credit on sales of products to eastern European countries only if the President determines it is in the national interest and so reports to the Senate and the House. On February 4, 1964, the President determined that it was in the national interest for the Bank to assist in financing the sale of United States agricultural products to Bulgaria, Czechoslovakia, Hungary, Poland, Rumania, and the U.S.S.R., and all products to Yugoslavia.13

The Bank has continued to consult with the National Advisory Council on major credits, large guarantees or those extending beyond five years, and other of its activities affecting United States foreign financial policy.

Credits authorized at the request of overseas purchasers

As indicated in table 15, a total of $141.5 million was authorized under this major category of the Bank's loan operations during July-December 1963. The authorizations at the request of overseas purchasers during the period under review comprised project and commodity credits. Assisting in financing the purchase of United States equipment and services going into specific projects overseas,

11 Supra.

12

Reference to title III of the Foreign Aid and Related Agencies Appropriation Act, 1964; see ante, doc. XII-17.

13 See the two letters of Jan. 28, 1964, from the President (Johnson) to the President pro tempore of the Senate (Hayden) and the Speaker of the House of Representatives (McCormack); texts in the Department of State Bulletin, Feb. 24, 1964, pp. 298-299.

TABLE 15.-Export-Import Bank credits, by area, country, terms, and purpose, July 1 to Dec. 31, 1963

1 Credit authorized for $3,000,000 with $800,000 transferred to guaranties.

NOTE.-Detail will not necessarily add to totals due to rounding. Capitalized interest of $400,000 is not

included.

Source: Export-Import Bank.

TABLE 16.-Net credits authorized by the Export-Import Bank, July 1, 1945, to

Dec. 31, 1963

[In millions of dollars]

1 Less cancellations, expirations, participations, and transfers to guaranties. Source: Export-Import Bank.

project and equipment credit authorizations totaled $139.3 million during the six months ended December 31, 1963. These credits ranged in size from $27 million to assist a private Indian company in establishing a fertilizer plant to $500,000 for a variety of construction and communication equipment purchased by the Government of Iceland. Commodity credit authorizations consisted of $3 million, covering the export of raw cotton to Austria of which $0.8 million was later transferred to a guaranty basis.

Medium-term credits and guaranties

During the period July 1 to December 31, 1963, the Bank authorizea three medium-term credits in the amount of $30.9 million and 285 medium-term export credit guaranties amounting to $131.6 million (not including $52.9 million authorized as loans prior to July 1, 1963, and transferred to guaranties after July 1, 1963). New credits for $12.9 million, $9.2 million, and $8.8 million assisted in financing jet aircraft sold to Japan Air Lines. New guaranties, mostly issued to United States commercial banks willing to finance United States exporters on a nonrecourse basis, ranged in size from $11.5 million covering the export of two jet aircraft sold to Iberia Air Lines of Spain to a guaranty for $4,800 covering the export of a pellet feed mill to Mexico. Other new guaranties comprised 8 preshipment guaranties totaling $109,750 issued directly to United States exporters.

Short- and medium-term insurance

The facilities of the Foreign Credit Insurance Association, a "partnership" of over 70 private insurance companies with the Export-Import Bank, were actively employed by United States exporters during the period under review. Individual short-term FCIA policies, covering an exporter's whole annual turnover or a substantial portion thereof, have been issued in amounts up to $10 to $15 million, while medium-term policies, usually covering the export of individual items of equipment, have been issued in amounts up to $1 million. On all FCIA policies, the Export-Import Bank assumes

the political risk and shares the commercial risk equally with the member private insurance companies. Following is a summary of FCIA underwriting activity between July 1 and December 31, 1963:

During the period under review, 30 new and renewed war-risk and expropriation insurance policies were issued on consigned exports of cotton and tobacco valued at $1.3 million.

Private participation

Private participation in the Bank's activities during July-December 1963 consisted of purchases totaling $51.5 million by United States commercial banks and suppliers for their own account and risk of early maturities in Bank credits.

FISCAL RESULTS

During the six months ended December 31, 1963, new dollar commitments authorized and guaranties and insurance issued by the Bank totaled $527.3 million. Bank disbursements were $210.5 million and the Bank received $377.6 million in repayment of principal. The gross income for the period was $91.6 million and comprised interest on loans of $90.5 million and insurance premiums and guarantee fees of $1.1 million. Interest paid to the Treasury on borrowed money was $19 million; interest due holders of Bank portfolio certificates was $10.6 million, while operating and other expenses were $2 million. Thus, the net income of the Bank was $60 million. This amount was added to the Bank's reserves and undistributed earnings which amounted to $870.4 million on December 31, 1963.

STATUS OF BANK RESOURCES

On December 31, 1963, the total lending authority of the ExportImport Bank was $9 billion. Loans outstanding totaled $3,610.5 million, undisbursed authorizations were $1,372 million, and $267.9 million had been allocated to cover short- and medium-term guaranty, FCIA, and war risk insurance programs. Other charges authorized against the Bank's lending authority included a $25 million reservation to entertain applications under a U.S. government consortium pledge to Pakistan, and a $5 million contingent liability on notes sold with recourse. Ás a result, the uncommitted lending authority of the Bank was $3,719.6 million on December 31, 1963.

Part XIII

THE INTERNATIONAL INFORMATION, EDUCATIONAL EXCHANGE, AND CULTURAL

AFFAIRS PROGRAMS

XIII-1

THE MISSION OF THE UNITED STATES INFORMATION AGENCY: Memorandum From the President (Kennedy) to the Director of the USIA (Murrow), January 25, 1963 1

1

Memorandum for: The Director, U.S. Information Agency.

The mission of the U.S. Information Agency is to help achieve U.S. foreign policy objectives by (a) influencing public attitudes in other nations, and (b) advising the President, his representatives abroad, and the various departments and agencies on the implications of foreign opinion for present and contemplated U.S. polícies, programs and official statements.

The influencing of attitudes is to be carried out by the overt use of the various techniques of communication-personal contact, radio broadcasting, libraries, book publication and distribution, press, motion pictures, television, exhibits, English-language instruction, and others. In so doing, the Agency shall be guided by the following:

1. Individual country programs should specifically and directly support country and regional objectives determined by the President and set forth in official policy pronouncements, both classified and unclassified.

2. Agency activities should (a) encourage constructive public support abroad for the goal of a "peaceful world community of free and independent states, free to choose their own future and their own system so long as it does not threaten the freedom of others"; 2 (b) identify the United States as a strong, democratic, dynamic nation qualified for its leadership of world efforts toward this goal; and (c) unmask and counter hostile attempts to distort or frustrate the

1Text as printed in Legislation on Foreign Relations With Explanatory Notes, March 1964 (Joint Committee Print of the Senate Committee on Foreign Relations and the House Committee on Foreign Affairs, 88th Cong., 2d sess.), p. 222. Quotation from the annual message of President Kennedy to the Congress on the State of the Union, Jan. 11, 1962; text in American Foreign Policy: Current Documents, 1962, pp. 1-8.

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