51 Legislative History of the Committee on Foreign Relations, United States Senate, Eighty-Sixth Congress, January 7, 1959September 1, 1960 (S. Doc. 131, 86th Cong.), pp. 22-23.

690-494-6159

399. INSTITUTION OF THE MUTUAL SECURITY INFORMATION PROGRAM: Report of the Secretary of State (Herter) to the President (Eisenhower), September 17, 1960 52

This paper represents a report of actions which have been instituted by the Department of State and other agencies in compliance with your Memorandum of July 14, 1960 53 requesting the development of a program to keep the American public "fully and fairly informed on a continuing basis about the personnel, operations, accomplishments and problems" of the military and economic assistance programs of the United States.

Your instructions have stimulated and accelerated efforts initiated by the Department of State shortly before receipt of your Memorandum. To carry out the purpose of your instructions, the following actions have been taken:

1. The position of Deputy Assistant Secretary for Public Affairs (for Mutual Security Information) has been established in the Department of State and a qualified officer appointed. This office, working with other agencies of the Government, has drawn up and is now implementing a program to build public understanding of the Mutual Security Program.

2. Four Regional Information Specialist positions have been established in the field: Far East, Near East and South Asia, Africa and Latin America. Each will be responsible for stimulating a flow of factual material on the Mutual Security Program back to Washington. This material will be made available to the wire services, newspapers, magazines, radio, television, and other news media.

3. Plans have been worked out with the Assistant Secretary for International Security Affairs and the Assistant Secretary for Public Affairs of the Department of Defense for the coordinated participation of Defense in the public information program. Similar plans have also been made with the Director, United States Information Agency, the Director, International Cooperation Administration, and with other agencies participating in the program.

4. Discussions have been started with private institutions, business firms and leading citizens to provide information in which they are interested regarding the Mutual Security Program.

Officials of the Department of State and of the other agencies participating in the administration of the Mutual Security Program believe firmly in the importance of providing the American people with the fullest information concerning the Program. The new Mutual Security Information Program will be directed to this purpose.

62

Department of State press release No. 660, Nov. 30, 1960 (text as printed in the Department of State Bulletin, Dec. 19, 1960, p. 928).

ADMINISTRATION OF MUTUAL SECURITY AND RELATED FUNCTIONS: Executive Order No. 10893, Issued November 8, 1960 55

[NOTE: The Executive order clarified the responsibilities of the several departments and agencies involved in administering the Mutual Security program, as follows

400. OPERATIONS OF THE DEVELOPMENT LOAN FUND DURING THE PERIOD JANUARY 1 TO JUNE 30, 1960: Report of the National Advisory Council on International Monetary and Financial Problems, May 3, 1961 (Excerpt)1

LOAN COMMITMENTS

The Development Loan Fund has continued, during the period under review, to direct its resources to specific projects and programs which are intended to stimulate economic growth in the less-developed

25 Fed. Reg. 10731; the Department of State Bulletin, Dec. 5, 1960, pp. 869872. See also post, doc. 412.

Excerpt from White House press release dated Nov. 8, 1960; Department of State Bulletin, Dec. 5, 1960, pp. 867-868.

1 Part VIII of the National Advisory Council's semiannual report on its activities during the period Jan. 1-June 30, 1960; H. Doc. 154, 87th Cong., May 4, 1961, pp. 19-22.

areas of the free world. Through the medium of its loans to intermediate lending institutions, the DLF has also made a significant contribution to the expansion of small business enterprises in these

areas.

As indicated in table 9,2 the DLF in the first half of 1960 authorized new loans totaling $409 million, the bulk of which was approved for development purposes in Asia and Africa ($354 million), including transportation and communications, industrial enterprises, power facilities, and development banks. Of this amount, $208 million, or almost 60 percent, was approved for projects in two countriesIndia and Pakistan. Other loans in Asia ranged in amount from a total of $33 million for 6 projects in Taiwan to $1.1 million to finance a building materials factory in Korea.

In Europe, loans totaling $38.2 million will assist in financing the manufacture of electric switchgear in Spain ($350,000), and the purchase of American-made diesel locomotives ($14.8 million) by Yugoslavia and the establishment of a plastics and chemicals plant ($23 million) in that country.

Four loans in Latin America, totaling $16.8 million, will make possible the expansion of electric power in Honduras and Nicaragua, and will assist in financing the construction of privately owned lowand medium-priced housing in Peru, and the construction of a new commercial international jet airport in Chile.

Through June 30, 1960, the Development Loan Fund had authorized total loan commitments in the equivalent of approximately $1.4 billion, including a total of $109 million to intermediate credit institutions in 14 countries in Latin America, Asia, and Africa. Disbursements were $270 million. This compares with total loan commitments of under $200 million and total disbursements of $1.5 million through June 30, 1958. Of the total of $1.4 billion authorized through the end of the current period, $959 million, or over 70 percent, was approved for countries in Asia. (See table 10.) 2 Transportation and communications projects formed the largest category of enterprise assisted by DLF financing.

401. OPERATIONS OF THE DEVELOPMENT LOAN FUND DURING THE PERIOD JULY 1 TO DECEMBER 31, 1960: Report of the National Advisory Council on International Monetary and Financial Problems, September 13, 1961 (Excerpt)

As described in earlier Semiannual Reports of the Council, the DLF was established in 1957 to assist in the financing of sound public or

Not reprinted here.

8 Part IX of the National Advisory Council's semiannual report on its activities during the period July 1-Dec. 31, 1960; H. Doc. 241, 87th Cong., Sept. 14, 1961, pp. 25-29.

private projects or programs in the less-developed countries of the free world on repayment terms which do not place an undue burden on their economies. In its consideration of prospective loans and credits, the DLF places primary emphasis on financing goods and services of U.S. origin, and does not extend credit if funds are available from other free world sources on reasonable terms. Its resources have been oriented toward the support and promotion of private enterprise and private investment. In the approximately 3 years of its existence, a total of over one-half billion dollars was authorized for the direct benefit and use of the private sector. More recently, under authority of the Mutual Security Act of 1960, the DLF has given special consideration to the development of free economic institutions and the stimulation of private investment, local as well as foreign, in the field of housing.

LOAN COMMITMENTS

In the current period, the DLF made loan commitments of about $500 million, a substantial increase over the preceding semiannual period. As in the two earlier periods, the greater portion of its funds was committed for constructive projects in Asia and Africa. (See table 12.) In this area, the loans ranged in amount from $400,000 to the Nepal Industrial Credit Corporation-the first DLF loan to a private Nepalese enterprise-to a total of $97.2 million for industrial and basic development purposes in India. In Latin America, two credit allocations of $25 million each were authorized to assist in financing resettlement activities in Colombia and Peru, in addition to a total of $20.3 million for highway construction in Guatemala and Panama and low-cost housing in Panama and Venezuela, and $5 million to the Central American Bank for Economic Integration. The largest loan authorized during the current period was for $129.6 milion to assist in financing the establishment of a private steel mill in Turkey. Associated in the financing, construction, and management of this plant are three U.S. firms, a group of U.S. institutional investors, European suppliers, Turkish private investors, and the Turkish Government. Also in Europe, the DLF provided a total of $27.7 million to the Government of Yugoslavia to expand electric power, to assist in the construction of a welded tube mill, and to assist in financing the purchase of diesel locomotives in the United States.

As indicated in table 13, through the end of the period under review, the DLF authorized 183 credits in the equivalent of $1.8 billion in 49 countries, over 80 percent of which were approved for countries in Asia and Africa. Loan disbursements were $391.4 million, an increase of $229 million over disbursements at the end of 1959. On December 31, 1960, over 75 percent of total loan commitments were repayable in currencies other than U.S. dollars.

Ante, doc. 392.

5 Not reprinted here.