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honored anew among the developing nations of Africa, Asia, and Latin America.

But this is no time to rest on the achievements of the last 4 years. This is the time to go forward.

In the next 4 years we must double the size and still further raise the quality of the Peace Corps. Nearly every country where volunteers are now serving has asked for more often two, three, or four times more. Many countries are on the "waiting list." We must not lose this practical opportunity to assist friendly nations in their selfhelp efforts in peaceful development.

For the next stage of the Peace Corps, we need applications to serve from about 10 percent of the graduating class of our colleges and universities, we need more applications from skilled workers in our factories and on our farms, we need more experienced teachers, more doctors, more nurses, more senior citizens.

And as 5 to 10,000 volunteers return from 2 years of overseas service we must see that their first-hand experience is put to good use, in our schools and universities, in American private enterprise, in our city and State governments, in our war on poverty, and in all our Federal services, including the Foreign Service.

C. The Export-Import Bank

Document XII-18

Operations of the Export-Import Bank of Washington During the Period January 1-June 30, 1964: REPORT OF THE NATIONAL ADVISORY COUNCIL ON INTERNATIONAL MONETARY AND FINANCIAL PROBLEMS, SUBMITTED JANUARY 29, 1965 (EXCERPT)1

Summary

LOAN, GUARANTEE, AND INSURANCE OPERATIONS

During the 6-month period, January 1 through June 30, 1964, the Export-Import Bank authorized 37 credits totaling $604.9 million, issued 288 medium-term comprehensive risk guarantees for $85.2 million, and 22 new and renewed war risk and expropriation insurance policies on consigned exports of cotton and tobacco amounting to $1.6 million. The Foreign Credit Insurance Association (FCLA) authorized on behalf of itself and the Bank 1,561 new and renewed export credit insurance policies with a face value of $522.9 million. Loan authorizations by the Bank during its 30 years of operation, i.e., from its inception in February 1934 through June 30, 1964, 'H. Doc. 70, 89th Cong., Feb. 2, 1965, pp. 31-35.

totaled $14.5 billion; disbursements were $9.4 billion, of which $5.9 billion has been repaid. As indicated in table 16,2 net credits authorized by the Bank in the postwar period, July 1, 1945, through June 30, 1964, totaled $10.3 billion. Over one-third of this amount, or $3.8 billion, was authorized for Europe, and an almost equivalent amount for Latin America. The bulk of the remainder, or $2.4 billion, was authorized for Asia. In the more recent period, that since July 1, 1960, the largest volume of Bank authorizations has been for Latin America, followed by Asia, Europe, and Africa.

Public Law 88-258, which was signed by President Johnson on January 6, 1964, authorizes the Bank to issue guarantees or extend credit on sales of products to East European countries only if the President determines it is in the national interest and so reports to the Congress. On February 4, 1964, the President determined that it was in the national interest for the Bank to assist in financing the sale of U.S. agricultural products to Bulgaria, Czechoslovakia, Hungary, Poland, Rumania, and the U.S.S.R., and of all products to Yugoslavia. In June 1964, the President also determined that it was in the national interest for the Bank to assist in financing the sale of all products to Rumania.5

In January 1964, the Bank announced a reduction in its standard interest rate applicable to project and trade development loans from 54 to 52 percent. Also during the period under review the Bank, in order to encourage additional private participation in export financing, continued to offer long-term comprehensive risk guarantees to financial institutions willing to provide financing for the purchase of U.S. goods and services employed in projects abroad. These longterm guarantees are offered as an alternative to direct Eximbank financing.

TABLE 17.-Export-Import Bank credits, by area, country, terms, and purpose, Jan. 1 to June 30, 1964

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TABLE 17.-Export-Import Bank credits, by area, country, terms, and purpose, to June 30, , 1964-Continued gor 1996 end nom

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1 Does not include capitalized interest of $0.6 million.

Increase in prior period authorization.

3 Months.

NOTE.-Detail will not necessarily add to totals due to rounding.

Source: Export-Import Bank.

Credits authorized at the request of overseas purchasers

As indicated in table 17, a total of $604.9 million was authorized under this major category of the Bank's loan operations during January-June 1964. The authorizations at the request of overseas purchasers during the period under review comprised project and commodity credits. Assisting in financing the purchase of U.S. equipment and services going into specific projects overseas, project and equipment credit authorizations totaled $429.9 million during the 6 months ended June 30, 1964. These credits have maturities in excess of 5 years and range in size from a $100 million credit to assist Istituto Mobiliare Italiano of Italy in financing machinery and equipment, to a $300,000 credit to assist a private Colombian company in establishing a sawmill and wood products molding plant. Commodity credit authorizations consisted of $100 million in favor of Istituto Mobiliare Italiano covering various commodities and semimanufactured goods, and $75 million in favor of the Bank of Tokyo covering the export of raw cotton to Japan.

Medium-term credits and guarantees

During the period January 1 to June 30, 1964, the Bank authorized 3 medium-term credits aggregating $119.7 million and 277 mediumterm export credit guarantees amounting to $83.9 million. The new credits, included in the above total of $604.9 million, assisted in financing jet aircraft to be sold to Olympic Airways of Greece and Aeronaves de Mexico; and commodities and semi-manufactured goods sold to Italy. New guarantees, mostly issued to commercial banks willing to finance U.S. exporters on a non-recourse basis, ranged in size from $7 million covering the export of a phosphate plant sold to Yugoslavia to a guarantee for $1,800 covering the export of an embossing machine sold to a private Mexican buyer. Other new guarantees included 8 preshipment guarantees totaling $111,800 and 3 guarantees totaling $1.2 million issued directly to U.S. 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 U.S. exporters during the period under review. Individual short-term (sales up to 180 days) FCIA policies, covering a sufficient amount of an exporter's whole annual turnover to give FCIA a reasonable spread of risk, have been issued in amounts as high as $15 million, while medium-term (sales from 181 days to 5 years) policies, usually covering the export of standard items of equipment or machinery, have been issued in amounts up to $1 million. On all FCIA policies, the Export-Import Bank assumes the political risk and prior to June 30, 1964, shared the commercial risk equally with the member private insurance companies. Subsequent to June 30, 1964, the private insurance companies agreed to assume a greater share of the commercial risk on both short- and medium-term policies. Following is a summary of FCIA underwriting activity between January 1, 1964, and June 30, 1964:

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During the period under review, 22 new and renewed war-risk and expropriation insurance policies were issued on consigned exports of cotton and tobacco valued at $1.6 million.

Private participation

During the period under review, the Bank sold to financial institutions its third series of portfolio participation certificates in the amount of $372.5 million. These Series C participation certificates bear interest at the rate of 42 percent with the principal repayable in 7 years beginning October 29, 1964, and are guaranteed by the Bank. Additional private participation in the Bank's activities during January-June 1964 consisted of purchases totaling $11.8 million by U.S. commercial banks and suppliers, for their own account and risk, of early maturities in Bank credits.

FISCAL RESULTS

During the 6 months ended June 30, 1964, new dollar commitments authorized and guarantees issued by the Bank together with insurance authorized for issuance by FCIA totaled $1,214.6 million. Bank disbursements were $187.9 million and the Bank received $240.1 million in repayment of principal. The gross income for the period was $90.1 million and comprised interest on loans of $88.5 million and insurance premiums and guarantee fees of $1.6 million. Interest paid to the Treasury on borrowed money was $15.4 million; interest due holders of Bank portfolio participation certificates was $12.7 million, while operating and other expenses were $2.1 million. Thus, the net income of the Bank was $59.9 million. In June, the Bank declared a dividend of $50 million on its capital stock held by the Secretary of the Treasury. The Bank's reserves and undistributed earnings amounted to $880.2 million on June 30, 1964.

STATUS OF BANK RESOURCES

On June 30, 1964, the total lending authority of the Export-Import Bank was $9 billion. Loans outstanding totaled $3,533 million, while undisbursed authorizations were $1,725.4 million. Other charges against the Bank's lending authority included $277.3 million representing 25 percent of the face amount outstanding under the Bank's

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