This $82 million progran is based on priority needs for facilities, without regard for whether the needed projects may be financed with available credits or must be financed with United States dollars. In developing the requirements for dollars and foreign exchange, the following important factors must be taken into consideration: 1. Conversion of available currencies into the currency of other countries. 2. Purchase of equipment and materials in other countries where foreign currencies may be available. 3. Execution of contracts payable in available currencies. 4. Residual balances available under credit agreements. 5. Unrestricted Treasury holdings in excess of current disbursing requirements. 6. Anticipated collections in foreign exchange. No allowance has been made for dollar proceeds of property sales. The annual budget will take into consideration the proceeds of sales actually consummated. In addition, each year a current appraisal of foreign-exchange utilization will be made. It must be emphasized that the dollar requirements reflected in the program are the minimum requirements foreseeable at the present. The problems involved in the use of local currency cited above coupled with the increasing dollar requirements for stateside expenditures for acrhitectural fees, equipment and technical services and third country purchases where an acceptable local currency is not available combine to create a greater demand for United States dollars if the program is to be successful. The program reflects an increasing requirement for property repairs and mainteThis situation results from the following: nance. 1. A steadily increasing worldwide cost of regular repairs and maintenance. 2. The basic repair and maintenance requirement increases as additional properties are acquired. 3. Past estimates for repair and maintenance have been inadequate to properly maintain the capital investment already made in the properties and to assure full and effective utilization of the facilities. The estimates for the cost of individual projects reflected in this program are based on the best knowledge available at this time on local cost and other factors which will affect construction at the post shown. Accordingly the cost of individual projects cannot be considered in any respect firm budget estimates for the projects listed. The Department will present each year a realistic budget estimate for the buildings program that reflects the most urgent needs and that takes into account the Department's ability to overcome the many factors involved in the construction of new facilities in foreign countries. (This program has not been cleared by the Bureau of the Budget.) Summary Proposed foreign buildings program for 4-year period, 1957 to 1960 inclusive KEY HICOG-High Commissioner's office OR-Office and residence ER-Embassy residence CR-Consul's residence SH-Staff housing AR-Attaché's residence 1 The column headed "Potential foreign exchange" reflects balances outstanding on June 30, 1954, under credit agreements with foreign countries and entities. |