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1968 est.

1969 est.

1968 est.

1969 est.

joined the Association in August 1960, and the institution lion to be provided over a 4-year period for a U.S. conbegan operations in November 1960.

tribution to multilateral special funds of the ADB. The As of September 30, 1967, the Association had made

U.S. contribution would comprise less than one-half of credit commitments for high priority economic develop, the total ADB special funds, and would be used for the ment projects totaling $1,702.4 million in 38 countries and

purchase of U.S. goods and services. territories. As of the same date, membership in the Association, which is open to all members of the World Bank, totaled 97 countries. Total capital resources are $1,768 million, of which $1,519 million is payable in hard INVESTMENT IN INTERNATIONAL BANK FOR RECONSTRUCTION AND currencies.

DEVELOPMENT

Program and Financing (in thousands of dollars)
ASIAN DEVELOPMENT BANK

Identification code 04-08-0001-0-1-152 1967 actual
For payment of the third installment subscription on paid-in capital
stock to the Asian Development Bank, $20,000,000, to remain available
until expended. (22 U.S.C. 285-285h.)

Financing:

21.47 Unobligated balance available, Program and Financing (in thousands of dollars)

start of year: Authorization

to expend from public debt Identification code 0408-0076-0-1-152

receipts...

-5.715,000 -5,715,000 -5,715,000 1967 actual

24.47 Unobligated balance available,

end of year: Authorization Program by activities:

to expend from public debt 10 Investment in Asian Development Bank

receipts...

5,715,000 5,715,000 5,715,000 (object class 33.0).. 20,000 20,000 20.000

New obligational authority Financing: 21 Unobligated balance available, start of year...

-140,000 -120,000 -100,000 24 Unobligated balance available, end of year 120.000 100,000 100,000 The Bretton Woods Agreements Act of July 31, 1945,

authorized the acceptance of membership in the Inter40 New obligational authority (appropriation)

20,000

national Bank for Reconstruction and Development. The

Bank's total authorized capital stock (June 30, 1967) is Relation of obligations to expenditures:

$24 billion, of which $22.8 billion has been subscribed by 71 Total obligations (affecting expenditures) 20,000 20.000 20,000 72 Obligated balance, start of year..

its 106 member countries.

10,000 20,000 74 Obligated balance, end of year.

- 10,000 -20,000 -30,000 The United States paid $635 million of the original

subscription in cash and non-interest-bearing nonnego90 Expenditures...

10,000 10,000 10,000

tiable notes. The remaining balance ($5,715 million) has Expenditures are distributed as follows:

been made available, but will not be called unless required. 02 Out of prior authorizations...

10,000 10,000 10,000 As of September 30, 1967, the Bank has made net loans

totaling $10.7 billion in 83 member countries and terriThe Asian Development Bank (ADB) is a regional tories. development financing institution established by Asian member governments, with participation by countries

FOREIGN ASSISTANCE outside the region, for the purpose of financing economic development projects and programs in Asian countries.

General and special funds: The authorized capital stock of the Bank is $1.1 billion.

MILITARY ASSISTANCE Of this, $965 million has been subscribed by the membership: $615 million by the regional members, including Military assistance: For expenses authorized by section 504 (a) of $200 million by Japan, and $350 million by nonregional

the Foreign Assistance Act of 1961, as amended, including adminis

trative expenses [authorized by section 636 (g) (1) of such Act, which members.

shall not exceed $21,400,000 for the current fiscal year], and On March 16, 1966, the President signed the Asian De- purchase of passenger motor vehicles for replacement only for use velopment Bank Act, authorizing U.S. membership in the

outside the United States, [$400,000,000] $420,000,000 to remain

available until expended: Provided, That none of the funds contained ADB and the appropriation of amounts necessary to meet in this paragraph shall be available for the purchase of new automoC.S. subscription obligations. The U.S. subscription to the

tive vehicles outside of the United States [: Provided further, That

none of the funds contained in this paragraph and none of the funds ADB is $200 million, of which $100 million is to be paid in

contained in the military assistance credit sales revolving fund shall in five annual installments and $100 million is callable. be used to finance directly or indirectly the purchase or acquisition In addition to its ordinary operations, the ADB's

of sophisticated weapons systems, such as missile systems and jet

aircraft for military purposes, by or for any underdeveloped country articles also permit the establishment of special funds other than Greece, Turkey, Iran, Israel, the Republic of China, the through (1) the allocation of up to 10% of its paid-in Philippines, and Korea unless the President determines that such

purchase or acquisition of weapons systems are vital to the national capital, and (2) the acceptance for administration by the

security of the United States and reports within 30 days each such Bank of special funds. Such special funds would be used determination to the Congress: Provided further, That the military to finance high priority development projects on repay

assistance program for any country shall not be increased beyond ment terms which would be easier than those which would

the amount justified to the Congress, unless the President deter

mines that an increase in such program is essential to the national apply to ordinary ADB loans.

interest of the United States and reports each such determination On September 26, 1967, the President proposed that the

to the House of Representatives and the Senate within thirty days

after each such determination]. (22 U.S.C. 2311 as amended; Congress authorize the appropriation of up to $200 mil- Foreign Assistance and Related Agencies Appropriation Act, 1968.)

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Program by activities:
Grant aid operations:
Reservations for requirements or-

dered from U.S. military
services (22 U.S.C. 1819):
1. Aircraft.
2. Ships.
3. Tanks, other vehicles, and

weapons. 4. Ammunition. 5. Missiles. 6. Electronic equipment. 7. Military public works. 8. Other.. Adjustment of prior year

reservations

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Expenditures distributed

follows: Out of current authorization.. Out of prior authorization.

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-22, 443

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102, 304

The military assistance program strengthens the security of the free world by contributing to the development,

maintenance, and training of modern military forces 285, 335 through the grant of defense articles. The military forces

of countries receiving military equipment on a grant basis provide free world defensive capability, depth in reserves,

and flexibility. Many of these countries have joined 3.089 regional defense pacts such as NATO, and some have 55, 046

entered into bilateral defense arrangements with the 37, 348

United States. 21,000

Military assistance is now substantially reduced from

the program level of earlier years. Most Western European 25,000

countries no longer receive defense articles as grant military assistance. Moreover, other countries throughout the world are assuming an increasing share of the costs of their military forces as their economic capacities increase.

Responsibility for the programing, budgeting, and funding 1, 182

of the Logistics Center in Japan was transferred to the U.S. Army in 1967. The costs of military assistance to Laos and Thailand and of the U.S. share of NATO infra

structure (military facilities constructed for the use of, 142, 665 and jointly financed by, the participating nations of the

North Atlantic Treaty Organization) were transferred to

the regular Department of Defense appropriations in 1968. 428,000

Unexpended balances of the above programs were also transferred to the military departments during 1968.

The major portion of the military equipment and supplies which the United States furnishes under the military assistance program is produced in the United States and is obtained by placing orders with the U.S. military services. Military assistance funds are reserved when the orders are placed and the military services accounts are

reimbursed when the items are delivered. The materiels 428,000

supplied by the United States vary with our objectives and the requirements and capabilities of individual countries. The current emphasis is on the maintenance

of existing forces and materiel, although modernization -8,000

is included as funds permit. Materiel already on band, but excess to the needs of U.S. forces, is supplied, whenever possible, at no charge to the military assistance appropri

ation except for the costs of rehabilitation and trans- 10.000

portation.

In 1967 and 1968, funds were included in the new

obligational authority for military assistance to finance 10,000 credit sales to various countries of military equipment and 420.000 supplies produced in the United States and to guaranty

exporters, financing institutions, or others doing business

732, 225

389, 931

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1967 actual

1968 est.

1969 est.

in the United States against political and credit risks

Average GS grade.

8. 1
8.2

8.2 of loss arising from sales of defense articles and services

Average GS salary.

$9,618 $10,035 $10, 464 to eligible foreign countries and international organiza

Average salary, positions authorized by 22
U.S.C. 2151...

$23, 726 $24, 167 $24, 334 tions,

Average grades, established by the Secretary The Foreign Assistance Act of 1967 terminates the of Defense...

3.4 3.8 3.8 credit sales revolving fund (Foreign Military Sales Fund,

Average salary. grades established by the SecExecutive) as of June 30, 1968, and provides that begin- Average salary of ungraded positions...

retary of Defense..

$15, 137 $15, 997 $16,142

$2,005 $2,277 $2,278 ning in 1969, military credit sales and guaranties will be financed with appropriated funds. In 1969, funds for financing credit sales and guaranties are shown in a new Foreign Military Credit Sales account.

Public enterprise funds: Administrative expenses include the administrative costs related to the Foreign Military Credit Sales account

FOREIGN MILITARY SALES FUND, EXECUTIVE and Advances, Foreign Military Sales.

This revolving fund was established under the authority Object Classification (in thousands of dollars)

of section 201(e) (3) of the Foreign Assistance Act of 1965.

It terminates on June 30, 1968, in accordance with secIdentification code 04-09–1080-0-1-057

tion 201(h)(3) of the Foreign Assistance Act of 1967.

Upon termination of this fund, all of its assets will be transALLOCATION ACCOUNTS

ferred to a special account in the Treasury which will be Grant aid operations:

available solely for the purpose of discharging outstanding Reservations:

liabilities and obligations arising from credit agreements 25.1 Other services..

71,149 46,408 54,994 and guaranties issued prior to June 30, 1968. Any funds 26.0 Supplies and materials.

147,699 83,884 97,654 31.0 Equipment..

236,114 102,410 132,687

in the special Treasury account in excess of the aggregate

amount of such liabilities and obligations will from time Total, grant aid operations.--.-. 454,962 232,702 285,335 to time be transferred to the general fund of the Treasury.

Section 201 (h) (3) of the Foreign Assistance Act of 1967 Personnel compensation: Obligations for requirements other than through

provides that after June 30, 1968, the President may reservations:

finance new credit sales (and guaranties) only from appro11.1 Permanent positions..

15,672 16,011 15,935 | priations. 11.3 Positions other than permanent...

84
76

37

This revolving fund was employed to finance directly 11.5 Other personnel compensation..-

417 335 328

the sales of defense articles and defense services to foreign Total personnel compensation..-

16,173 16,422 16,300

countries and international organizations on cash or credit 12.0 Personnel benefits, civilian personnel.. 1,651 1,616 1,573 terms, to guaranty Export-Import Bank and private credit 12.1 Personnel benefits, military personnel. 4,502 3,396 3,283 for sales of defense articles and defense services, and to 21.0 Travel and transportation of persons... 24,538 23,635 22,133 22.0 Transportation of things...

38,119

absorb gains and losses, if any, resulting from sales of

37,495 3.0 Rent, communications, and utilities... 2,848 2,931 2,935

defense articles and defense services at fixed prices. 24.0 Printing and reproduction...

639
585

555

The capital of the fund was provided by transfer of 25. 1 Other services.

45, 303 45, 215 37, 338

loans outstanding and appropriations from the military 25.2 Services of other agencies.

4, 875 4, 875 26. O Supplies and materials.

assistance appropriation, as authorized by the Foreign

6, 806 5,876 5,488 31.0 Equipment.--

25, 757 15, 183 14,006

Assistance Act. Cash for operations was provided by 41.0 Grants, subsidies, and contributions ... 110, 927

principal repayments and interest income on credit sales

financed by the fund, proceeds from sales to the ExportTotal, obligations for requirements other than through reserva

Import Bank of evidences of indebtedness, and fees and tions... 277, 263 157, 229 142, 665 premiums earned on the guaranty of private credit.

Expenditures were for payments to suppliers under Sales operations:

directly financed credits and overhead expenses relating 31.0 Equipment...

3, 102

to military sales activity. A reserve fund was set aside to Total, sales operations --

3, 102

guaranty publicly and privately financed military credit

sales. The reserve requirement was, by law, 25% of "the 99.0 Total obligations/reservations.... 735, 327 389, 931 428,000

contractual liability related to any guaranty

The Foreign Assistance Act of 1967 limited the amount Obligations are distributed as follows: Secretary of Defense..

116, 250

of publicly and privately financed credit which the re

4, 682 4, 710 Army.

347, 778 226, 954 247, 781 volving fund could guaranty in 1968 to $190,000 thousand, Navy.

99, 428 46, 842 51,097 Credit sales financed in 1967 totaled $354,459 thousand Air Force.

167, 035 106, 578 119,537

and are estimated at $262,000 thousand for 1968. The State

4,836 4, 875 4, 875

outstanding balance, including commitments, was $844,539

thousand as of the end of 1967 and is estimated at $967,360 Personnel Summary

thousand as of the end of 1968. Total number of permanent positions.-

The administrative expenses related to the Foreign

2, 706 2, 289 2, 211 Fül-time equivalent of other positions.

21

7

Ź military credit sales program were funded from military Average number of all employees.

2, 535 2, 244 2, 184 assistance appropriations.

34, 179

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Assets:

Treasury balance..
Loans receivable..
Portion financed by Export-

Import Bank
Transferred to “Liquidation of

foreign military sales fund,
Treasury" (22 U.S.C. 2316).

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Financing:
11 Receipts and reimbursements from:

Federal funds:
Sale of loans to Export-Import Bank –114,196 -228,185
Change in Export-Import Bank

commitment to purchase future
loans.

-398,340 47,185 14 Non-Federal sources: Loan repayments.

-61,979 -126,437 Change in advance payments received...

-15,207 20.000 Portion collected for Export-Import Bank....

19,093 52,400 Interest on loans receivable..

-7,766 -15,100 Portion collected for Export-Import Bank..

7,013 14,200 Fees and premiums on guaranty of private credit.

-62

-63 21.98 Unobligated balance available, start of year..

-5,006 -14,111 22.98 Unobligated balance transferred from other accounts.

-6,154 24.98 Unobligated balance available, end of year---

14,111 New obligational authority.---.. 53,600 20,000

Total assets. Liabilities: Deferred credits (advance pay

ments). Transferred to "Liquidation of

foreign military sales fund,

Treasury" (22 U.S.C. 2316).
Government equity:
Non-interest-bearing capital:

Start of year.
Treasury balance.
Loans outstanding.
Advance payments.
Appropriation...
Transferred to "Liquidation of

foreign military sales fund,
Treasury" (22 U.S.C.
2316).

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End of year. Retained earnings

Total Government equity.

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Analysis of Government Equity (in thousands of dollars)

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General and special funds:

ECONOMIC ASSISTANCE Technical cooperation and development grants: For expenses authorized by section 212, [$180,000,000] $835,000,000: Prorided, That no part of this appropriation shall be used to initiate any project or activity which has not been justified to the Congress : Provided, however, That no more than $20,000,000 shall be used for family planning).

93 94

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(e) International Atomic

Energy Agency opera

tional program.
(f) United Nations peace-

keeping:
(1) Emergency force..

(2) Cyprus
(g) World Food Program...
(h) Indus Basin Develop-

ment Fund Grant...
(i) International Secretariat

for Volunteer Service.. (i) United Nations Institute

for Training and Re

search...
(k) World Health Organiza-

tion, medical research.
(1) Special contributions for

Vietnam..
(m) UN Population Programs
(n) WMO-World Weather

Watch.
(o) UN Special Programs for

Southern Africans....

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American schools and hospitals abroad: For expenses authorized by section 214(c), ($11,500,000] $15,100,000.

'Surveys of investment opportunities: For expenses authorized by section 232, [$1,250,000] $3,000,000.

International organizations and programs, grants: For expenses authorized by section 302(a), ($130,000,000] $ 148,255,000: Provided, That the President shall seek to assure that no contribution to the United Nations Development Program authorized by the Foreign Assistance Act of 1961, as amended, shall be used for projects for economic or technical assistance to the Government of Cuba, so long as Cuba is governed by the Castro regime: Provided further, That no part of this appropriation shall be used to initiate any project, activity, or program which has not been justified to the Congress.

International organizations and programs, loans: For expenses au-, thorized by section 302(b), $12,000,000, to remain available until Ez pended.

Supporting assistance: For expenses authorized by section 402, [$600,000,000] $595,000,000.

Contingency fund: For expenses authorized by section 451(a), [$10,000,000) $45,000,000.

Alliance for Progress, technical cooperation and development grants: For expenses authorized by section 252(a), ($80,000,000] $110,000,000.

[Alliance for Progress, partners of the alliance: For expenses authorized by section 252(b), $330,000.]

Administrative expenses: For expenses authorized by section 637(a), [$55,300,000] $58,775,000.

Administrative and other expenses: For expenses authorized by section 637(b) of the Foreign Assistance Act of 1961, as amended, and by section 305 of the Mutual Defense Assistance Control Act of 1951, as amended, [$3,255,000] $3,870,000.

Unobligated balances as of June 30, [1967] 1968, of funds heretofore made available under the authority of the Foreign Assistance Act of 1961, as amended, except as otherwise provided by law, are hereby continued available for the fiscal year [1968] 1969, for the same general purposes for which appropriated and amounts certified pursuant to section 1311 of the Supplemental Appropriation Act, 1955, as having been obligated against appropriations heretofore made under the authority of the Foreign Assistance Act of 1961, as amended, for the same general purpose as any of the subparagraphs under "Economic Assistance are hereby continued available for the same period as the respective appropriations in such subparagraphs for the same general purpose: Provided, That such purpose relates to a project or program previously justified to Congress and the Committees on Appropriations of the House of Representatives and the Senate are notified prior to the reobligation of funds for such projects or programs. (Foreign Assistance and Related Agencies Appropriation Act, 1968.)

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GRANTS AND OTHER PROGRAMS

Program and Financing (in thousands of dollars)

3, 320

4, 199

3,870

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2. American schools and hospitals

abroad. 3. Surveys of investment oppor

tunities... 4. International organizations

and programs-grants: (a) United Nations develop

ment program. (b) United Nations Technical

and Operational As

sistance to the Congo.. (c) United Nations Relief

and Works Agency.--(d) United Nations Chil

dren's Fund..

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71

Obligations affecting expendi

12,000

12,000

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13,000

tures.

300-100-686

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