TABLE 13.-Development Loan Fund loan commitments 1 and disbursements, Nov. 1, 1957, to Dec. 31, 1960, by area 402. STATUS OF THE INVESTMENT GUARANTEE PROGRAM AS OF JUNE 30, 1960: Report of the National Advisory Council on International Monetary and Financial Problems, May 3, 1961 (Excerpt) 1 1 In the period under review, there developed an increased interest in the ICA investment guarantee program. As a result, on June 30, 1960, there was well in excess of $1 billion in applications for investment guarantees in process for underdeveloped countries, the developed countries having been excluded from the program by the Mutual Security Act of 1959. With the addition of 23 contracts written in the 6 months covered by this Report, the cumulative total of investment guarantees issued from the inception of the program in 1948 through June 30, 1960, was $502 million.3 (See table 12.) 1 Part IX of the National Advisory Council's report on its activities during the period Jan.-June, 1960; H. Doc. 154, 87th Cong., May 4, 1961, pp. 24–23. 2 See sec. 413(b)(4) (A) of the Mutual Security Act of 1954, as amended; American Foreign Policy: Current Documents, 1959, p. 1624. 3 Including convertibility, expropriation and war risk guarantees. in source text.] [Footnote TABLE 12.-Investment guarantees issued by ICA through June 30, 1960, by area, country and type of guarantee1 While the total of all guarantees issued since the beginning of the investment guarantee program in 1948, including war risk guarantees, amounted to $502 million, as of June 30, 1960, the maximum outstanding liability was approximately $400 million. 2 War risk guarantees totaling $676,053 were issued to cover 2 private American investments in Italy. NOTE.-Detail will not necessarily add to totals because of rounding. Source: International Cooperation Administration. Progress was also made in agreements with countries to institute the investment guarantee program. Agreements were signed with El Salvador, Korea, and Nepal during the period under review and negotiations were in progress for agreements with six other countries. As of June 30, 1960, 34 underdeveloped countries, as well as the dependencies of seven economically-developed countries of Western Europe, were participating in the program. (See table 13.)" 403. STATUS OF THE INVESTMENT GUARANTEE PROGRAM AS OF DECEMBER 31, 1960: Report of the National Advisory Council on International Monetary and Financial Problems, September 13, 1961 (Excerpt) s 8 In the period under review, applications for investment guarantees received by the International Cooperation Administration (ICA) totaled in excess of $700 million. These applications relate to projects in less-developed areas only, since the program is no longer applicable to economically developed countries. Under terms and conditions previously approved by the Council, 26 investment guarantee contracts were written in the current 6-month period, and, as indicated in table 15, the cumulative total of all such guarantees-convertibility, expropriation, and war risk-issued through December 31, 1960, was TABLE 15.-Investment guarantees issued by ICA through Dec. 31, 1960, by area and type of guarantee 1 Although this total represents all guarantees issued through Dec. 31, 1960, as of that date, the maximum outstanding liability was $443,634,076. NOTE.-Detail will not necessarily add to totals due to rounding. Source: International Cooperation Administration. TIAS 4459; 11 UST 405; 372 UNTS 3. TIAS 4431; 11 UST 202; 372 UNTS 109. TIAS 4477; 11 UST 1396; 372 UNTS 313. 7 Not reprinted here. 8 Part X of the National Advisory Council's report on its activities during the period July-Dec., 1960; H. Doc. 241, 87th Cong., Sept. 14, 1961, pp. 30-31. $561 million, over one-half of which were approved for projects in 9 countries in Europe. During the current period, investment guarantee contracts were signed with Chile, Colombia,10 Guatemala,11 and Liberia.12 The program in Cuba is presently inoperative. The number of less-developed countries participating in the program as of December 31, 1960, was 35, in addition to the dependent territories of 7 economically advanced countries in Western Europe. (See table 16.) Negotiations for agreements were also in progress with several of the new African countries. TABLE 16.-Countries where ICA investment guarantees are available, as of Dec. 31, 1960, by type of guarantee Although the Mutual Security Act of 1959 excluded economically developed countries for purposes of the Investment Guarantee Program, guarantees are still available for the underdeveloped overseas dependencies of the following countries: Belgium. Denmark. France.. Italy.. Netherlands.. X X 1 Agreement signed by the Executive Branch but must be ratified by the Legislature. Source: International Cooperation Administration. D. The Export-Import Bank 404. OPERATIONS OF THE EXPORT-IMPORT BANK OF WASHINGTON DURING THE PERIOD JANUARY 1 TO JUNE 3, 1960: Report of the National Advisory Council on International Monetary and Financial Problems, May 3, 1961 (Excerpt)1 LOAN AND GUARANTEE OPERATIONS During the 6-month period, January through June 1960, the ExportImport Bank authorized 115 credits totaling $258.9 million. These credits will help to finance U.S. exports to 33 countries and range in amount from $5,700 to $40 million. They include 35 credits aggregating $231.6 million authorized at the request of overseas purchasers of U.S. products and 80 credits totaling $27.3 million set up at the request of U.S. exporters or financial institutions. The authorizations of the Bank from its inception in February 1934, through June 1960, totaled $10.7 billion. Disbursements were $7.3 billion, of which $4.0 billion have been repaid. The Bank has continued to consult with the Council on major credits and credits involving important considerations of U.S. foreign financial policy. Credits authorized at the request of overseas purchasers As indicated in table 7,2 a total of $231.6 million was authorized under this major category of the Bank's loan operations. Three nonproject loans were authorized as follows: two in favor of the Banco Central de Chile, of $10 million in May to finance earthquake reconstruction, and $5 million in June to assist Chile in purchasing capital equipment and services from the United States; and one of $40 million in favor of the Bank of Japan in June for the purchase of raw cotton of U.S. growth and cotton waste. Project credits authorized by the Bank in the period under review totaled $176.6 million. These credits ranged in amount from $12,000 to finance the purchase of equipment for a water treating and bottling plant in Thailand, to $33.2 million for the purchase of machinery, equipment, materials and related services for a nitrogenous fertilizer plant in Indonesia. Credits made at the request of U.S. exporters or financial institutions The Bank continued to assist in financing U.S. exports by authorizing credits at the request of U.S. firms. Some of these credits are established on the basis of individual proposals and are made 1 Part VII of the National Advisory Council's report on its activities during the period Jan.-June, 1960; H. Doc. 154, 87th Cong., May 4, 1961, pp. 13-18. 2 Not reprinted here. |