loaned for the economic development in many countries and is used, of course, in part for the expenses of our own Government within the respective countries.

Mr. PASSMAN. I asked the question for this reason. Mr. Benjamin Fairless, the President's coordinator of the foreign aid program, appeared before our committee several weeks ago. He stated that our policy of making these loans repayable in inconvertible currency should be terminated now, that it was bad policy for this country to be in possession of so much of the currencies of some of the other countries. That is why I thought it would be well to clear that up. The main question is that you do not make such loans.

Mr. WAUGH. That is correct. Our loans are all made in dollars and repayable in dollars.

AMOUNT OF OUTSTANDING LOANS

Mr. PASSMAN. What was the total amount of outstanding loans as of June 30, 1955, and if you can give it to us, as of June 30, 1956?

Mr. WAUGH. At the end of fiscal 1956 we had $2,648.3 million outstanding in loans.

Mr. PASSMAN. Is that 1956?

Mr. WAUGH. Yes.

Mr. PASSMAN. Do you have 1955? That was as of June 30, 1956? Mr. WAUGH. Yes, sir; $2,740.1 million for June 30, 1955.

Mr. PASSMAN. How about fiscal year 1957?

Mr. WAUGH. Let me add one other figure to the fiscal year 1956 figure. That same day we had $740.1 million authorizations that were not disbursed. So our total exposure is the total of those two figures, namely, $3,388.4 million.

The same figures for the end of 1957 will be estimated at $3,100.3 million and our undisbursed authorizations as of that date will be $1,093 million.

Mr. PASSMAN. What was the total amount of loans made during fiscal 1956?

Mr. WAUGH. The new credits authorized in fiscal year 1956 were 156 in number for $378.7 million.

Mr. PASSMAN. For fiscal 1957 what is the estimate?

Mr. WAUGH. The estimate for fiscal year 1957 is $1,140 million. Mr. PASSMAN. Could you furnish an estimate for the fiscal year 1958, the number of loans and the dollar amount?

NUMBER OF LOANS ANTICIPATED FOR FISCAL YEAR 1938

Mr. WAUGH. We estimate that there will be $850 million in loans in 1958 and 373 in number. Perhaps I should say, to be consistent, that of actual loans paid out we would have to decrease the first figure for 1957 by $500 million and add that to fiscal year 1958. This is assuming there will be no drawdown on the United Kingdom loan prior to June 30, 1957. I think it is rather interesting to get the increase in number of loans we have made during those years.

In fiscal 1956 we made 156 loans. We have made a larger number than that to date with 2 months yet to go. We estimate there will be 373 loans in 1958. In other words, I believe we will double the number of loans in 2 years.

Mr. PASSMAN. Some of these loans are to countries where you have made loans heretofore?

Mr. WAUGH. Yes, most of these loans are loans of our exporter type, which result in our manufacturers in this country-more manufacturers in this country in number of units selling to countries throughout the world.

LOANS FOR THE PURCHASE OF GOODS AND MATERIALS WITHIN U. S.

Of course, you understand that all of the loans we make to foreign purchasers are for purchases that are made within the United States, and the dollars stay here for goods and services purchased within the United States.

Mr. PASSMAN. Is there no exception to that rule?

Mr. WAUGH. There is no exception to that rule that I know of.

Mr. STAMBAUGH. There have been very minor exceptions in connection with project development credits where, in order to round out a project, it was necessary to buy something off shore. In those cases we have permitted the use of a very small portion.

Mr. PASSMAN. That is a small percentage? Even if the loan is made to a foreign government, they in turn place orders for something produced in this country?

Mr. STAMBAUGH. Yes.

STATEMENT OF LOANS AND AUTHORIZED CREDITS

Mr. PASSMAN. Is there any objection to inserting in the record a list of all loans outstanding as of December 31, 1956, by country?

Mr. WAUGH. The loans by country are in the annual report and in the semiannual report submitted to the Congress. There will be a new report that will be submitted as of June 30 this year.

Mr. PASSMAN. The list of countries is not too voluminous; is it? You would not have to go into detail. Is there any objection to its going into the record?

Mr. WAUGH. Quite the contrary. We are delighted to have it in the record. I thought you meant a detailed statement.

Mr. PASSMAN. Not the details, just the creditor, the name of the country, and the amount. I think Mr. Gary has asked for that in the past.

Mr. GARY. Yes.

Mr. PASSMAN. I think it would be page 1 here.

Mr. WAUGH. Those are terminated credits.

Mr. PASSMAN. You can get the credits there by country.

Mr. WAUGH. You understand, of course, that the loans made by country are not made to the countries themselves. In other words, in calendar year 1956 we made 193 loans and only 10 loans were made to governments.

Mr. PASSMAN. By that I meant the people doing business in the

countries.

Mr. WAUGH. That is what I wanted to clarify. In calendar year 1956, 23 loans were made to individuals with government guaranties but 160 loans were made without a government guaranty.

Mr. PASSMAN. Without objection, we shall insert this entire list. (The information referred to follows:)