Bombay is a seaport of 3.5 million inhabitants on the west coast of India. It is the principal business and financial center of India, accounting for about 35 percent of the country's total trade. Its climate is tropical, hot, and humid. USIS activities in Bombay are now housed inadequately at three separate locations in 16,000 square feet of space leased at an annual rental of $23,000. It has not been possible to date to lease suitably located quarters to consolidate and to accommodate adequately all USIS activities in a single location. It is believed essential and would be less costly to acquire a site and construct a modern, efficient building specifically meeting the needs of USIS. It is extremely difficult to find suitable privately rented living quarters in Bombay. Landlords generally require long-term leases, and in some cases, "key money." Agents demand excessive commissions for assisting in locating rental properties. Employees who cannot be accommodated in Government-owned or leased quarters must rely on hotels or other temporary housing for an indefinite period. Building program The Department plans to utilize Public Law 480 funds to acquire an adequate office building site for USIS and to purchase a suitable residence for a senior officer of the consulate general. 1963 request India, New Delhi: Office building for USIS, acquisition___. Present situation $600,000 Negotiations to repurchase the Bahawalpur property in New Delhi thus far have been unsuccessful. However, recent negotiations indicate that the Indian Government's reluctance to resell this property may be overcome and permission to acquire it will be granted the United States. Should these negotiations fail, alternative space must be acquired to enable USIS to consolidate its operation and effectively meet its objectives and requirements at this very important post. The present lease on the Bahawalpur property expires February 28, 1963. In the event the property cannot be purchased, the Indian Government has indicated a desire that it be vacated upon termination of the present lease. Because of increasing land values in New Delhi, it appears now that $600,000 will be required to purchase the Bahawalpur property or suitable alternative quarters for USIS. However, the purchase can be funded with surplus Indian rupees held by the U.S. Treasury, exchanging the surplus local currency for a valuable real estate holding. A substantial saving in increased rent payments, which undoubtedly would be demanded by a private landlord if USIS moved to other leased space, would thus be realized. Building program The equivalent of $600,000 in Public Law 480 foreign currency is requested to purchase suitable office quarters for USIS in 1963. 1963 request Pakistan, Dacca: Consulate general office building, residence, and staff housing, 16-units site--‒‒‒ Present situation $250,000 Dacca, the capital of East Pakistan, will remain an important post in the foreseeable future. In the long term, it would appear to be in the Government's best interests to construct a modern, well-designed, and secure office building and appropriate living quarters for the principal officer and his staff. Land values are exceptionally high in Dacca. The Department has been searching for a site for some years, and during this period has observed a sharp increase in the price of available sites. Current prices range in rupee equivalent, from $84,000 to $126,000 per acre. In view of the large U.S. holdings of Pakistan rupees and the continuing upward trend in land prices, it appears prudent to acquire a building site in Dacca without further delay, using surplus Public Law 480 local currencies for its purchase. The consulate general presently is located in the best space available for lease in Dacca, on the top floor, the sixth, of the city's tallest building. USOM occupies the fifth floor, and the lower floors are occupied by other than U.S. Government tenants. As an indication of the inferior construction found in Dacca, during the May 9 typhoon water actually was driven through the walls by the force of the wind, and bucket-brigades were organized to control the situation. Frequent electric power failures interrupt the elevator service, forcing visitors and employees to walk six flights. The presence of other tenants presents a security problem. The residence leased for the consul general is inadequate and is poorly arranged for entertaining groups of guests. As an example of the staff housing which is available for lease, the Alipor House has tiny, depressing rooms which cannot be furnished attractively because of their small size. Plumbing and bathroom facilities are poor; there is no hot water in the bathroom. Kitchens are inadequate and cannot be equipped properly because of their small size. Naked light bulbs illuminate these midget apartments. Building program In 1963 the Department, using surplus Public Law 480 Pakistani rupees, plans to acquire a site adequate for future construction of facilities needed by the consulate general in Dacca. 1963 request Pakistan, Lahore: Consulate general office building and staff housing, 8 units; site $225,000 Senior officer's residences, 2; acquisition__ Total----- Present situation 90,000 315,000 Lahore, the capital of West Pakistan, is a city of about 1.2 million located in the heart of the predominantly agricultural Punjab. It is the cultural and educational center of West Pakistan, and will continue to be an important consulate general in the foreseeable future. The present leased facilities no longer are adequate for the consulate general. The Government of West Pakistan has offered to reserve a limited acreage for the United States in subdividing a large estate, in which area land usage will be controlled by the Government. Since it appears that the United States will be represented in Lahore for some time to come, it would seem desirable to acquire land in this choice area for future construction. Reports from Lahore indicate that rentals are grossly inflated and that the demand for rental of decent residential property sharply exceeds the supply. The post also reports that this does not appear to be a temporary or short-term situation. In these circumstances it appears prudent to acquire a modest number of residences, using surplus Public Law 480 currency, to meet the long-range housing needs of officers representing the United States in Lahore. This can be accomplished either by purchasing existing improved properties or by arranging for the construction of residences to be sold to the United States when completed. Building program Using surplus U.S. holdings of Public Law 480 Pakistani rupees, the Department plans to acquire a site in 1963, at a cost estimated at approximately $225.000, and two residences for senior officers of the consulate general at an average cost equivalent to $45,000 each. Pakistan, Peshawar: 1963 request Consulate office building and staff housing, 4 units, site. Senior officer's residence, acquisition-- $150,000 100, 000 45,000 Total_ 295, 000 Present situation Peshawar is in a primitive area, and is primarily a major base of the Pakistan Army. An essential link with Kabul, it functions as a transshipment and supply point for our Embassy and USOM activities there. Improved properties appropriate for our requirements are subject to requisition by the military. In order to assure adequate office space and staff housing for the consulate, a site should be purchased and construction undertaken. The Department desires to convert surplus Pakistani rupees into a valuable site in Peshawar as the location of the future consulate office building and staff housing. In addition, the Department wishes to acquire permanent residences for the consul and one other senior officer of the consulate. Building program Using surplus U.S. Treasury holdings of Public Law 480 Pakistani rupees, the Department in 1963 plans to purchase a site for future construction of office and staff housing facilities for the consulate in Peshawar, and to purchase two suitable residential properties for the principal officer and a senior officer. 1963 request Yugoslavia, Belgrade: USIS information center, acquisition.. Present situation $500,000 The present lease provides approximately 10,500 square feet of unsatisfactory and inadequate space from both the standpoints of size and location. The building also has apartments occupied by Yugoslav tenants which share the common stairwell and which add to the security problems. It is unsound structurally, which further restricts USIS activities because of necessity to stay within certain loading limits. Additionally, it is located at the apex of two converging streets and is scheduled to be razed to enable proposed municipal street widening. Alternative leased quarters are practically nonexistent and what might be available for lease is even less satisfactory than the present quarters. The only apparent solution is to acquire a suitable building which can be adapted and/or expanded to meet USIS requirements. At this post, which is located within a Communist-dominated country permitting information activities, a critical need exists for approximately 25,000 square feet of office space suitable for a library, exhibits, auditorium, and printing facilities. Building program An amount of $500,000 is requested in fiscal year 1963 for the purchase of an existing building which can be suitably adapted and renovated to serve as an information center, using Public Law 480 funds. USE OF PUBLIC LAW 480 AND OTHER FOREIGN CURRENCIES Regulations prescribed by the U.S. Treasury require all agencies of the U.S. Government needing foreign currency to purchase it from U.S. Treasury holdings to the extent that it is available. When the Treasury cannot provide foreign currency, it must be purchased with a charge to the dollar limitation of the appropriation. The question of whether Treasury holdings will be sufficient to meet building program disbursing requirements 1, 2, and even 3 years hence presents a difficult problem in both the planning and management of the building program. Although the Department consistently uses Treasury foreign currency to the greatest extent feasible, many foreign currency disbursements become dollar costs, since Treasury holdings in the country concerned may be depleted or reserved for selected uses. Some dollar costs occur because present property holdings at all diplomatic and consular establishments must be operated and maintained regardless of the U.S. Treasury foreign currency position. Additional dollar requirements occur because it is not feasible to program capital projects only where there are ample holdings of foreign currency by the U.S. Treasury. To do this would contradict the longstanding and primary objective of providing buildings and facilities where there is the greatest need and/or economic justification. Although the exchange of Public Law 480 foreign currencies for tangible assets in the form of real property is an ideal objective, the appropriation for the purchase of Public Law 480 foreign currencies has a limited application and can rupees and the continuing upward trend in land prices, it ar acquire a building site in Dacca without further delay, us Law 480 local currencies for its purchase. The consulate general presently is located in the be lease in Dacca, on the top floor, the sixth, of the city's occupies the fifth floor, and the lower floors are oc Government tenants. As an indication of the inf Dacca, during the May 9 typhoon water actually by the force of the wind, and bucket-brigades situation. Frequent electric power failures i forcing visitors and employees to walk six flights presents a security problem. The residence leased for the consul gener ranged for entertaining groups of guests. which is available for lease, the Alipor Hor cannot be furnished attractively because bathroom facilities are poor; there is no are inadequate and cannot be equipped Naked light bulbs illuminate these midg Building program In 1963 the Department, using s plans to acquire a site adequate fo the consulate general in Dacca. Pakistan, Lahore: Consulate general office bui Total Present situation Lahore, the capital of in the heart of the pred educational center of V consulate general in the The present leased f The Government of V the United States ir be controlled by th be represented in acquire land in th Reports from demand for rer The post also situation. In of residences housing nee accomplish for the cor Building Using ment r $225,0 aver? Pa деп he area, and is primarily a major tase of the Pak USOM activities there. Improved patie Lenstruction undertaken. The get go manent residemes for the end o ASTAN mount of u unimproved are available. u would go into a project eign currencies at Rawalpindi, scal year 1963, Mr. Chairman. status of that? still negotiating, Mr. Chairman. We have ,otiation on that yet. OJECTS AT NEW DELHI, INDIA nder this you would invest over a million in foreign pees at New Delhi, India; is that right? STONE. In fiscal 1962; yes, sir. This would include an annex to the office building in which, a brandnew building, was opened, when? JOHNSTONE. This is called an annex, Mr. Chairman, but actually parate office building. ROONEY. The point is that you just got finished erecting a brandbuilding in New Delhi not too long ago? 1964, Mr. Chairman. MJOHNSTONE. That is correct. I believe it was completed in Mr. Mr. ROONEY. We are only in 1962 now. JOHNSTONE. This building is primarily for the TCM or AID activities. staff, but it will also include certain facilities for the normal Embassy It was not contemplated Mr. ROONEY. The point is that the building was only completed within the past 2 years and already you are off on plans to put up another building which would cost, how much, and which would house how many? How much was the cost of this building? |