The Asian Development Bank (ADB) is a regional development financing institution established by Asian member governments, with participation by countries outside the region, for the purpose of financing economic development projects and programs in Asian countries. The authorized capital stock of the Bank is $1.1 billion. Of this, $965 million has been subscribed by the membership: $615 million by the regional members, including $200 million by Japan, and $350 million by nonregional members. On March 16, 1966, the President signed the Asian Development Bank Act, authorizing U.S. membership in the ADB and the appropriation of amounts necessary to meet U.S. subscription obligations. The U.S. subscription to the ADB is $200 million, of which $100 million is to be paid in in five annual installments and $100 million is callable. In addition to its ordinary operations, the ADB's articles also permit the establishment of special funds through (1) the allocation of up to 10% of its paid-in capital, and (2) the acceptance for administration by the Bank of special funds. Such special funds would be used to finance high priority development projects on repayment terms which would be easier than those which would apply to ordinary ADB loans. On September 26, 1967, the President proposed that the Congress authorize the appropriation of up to $200 mil The Bretton Woods Agreements Act of July 31, 1945, authorized the acceptance of membership in the International Bank for Reconstruction and Development. The Bank's total authorized capital stock (June 30, 1967) is $24 billion, of which $22.8 billion has been subscribed by its 106 member countries. The United States paid $635 million of the original subscription in cash and non-interest-bearing nonnegotiable notes. The remaining balance ($5,715 million) has been made available, but will not be called unless required. As of September 30, 1967, the Bank has made net loans totaling $10.7 billion in 83 member countries and territories. FOREIGN ASSISTANCE General and special funds: MILITARY ASSISTANCE Military assistance: For expenses authorized by section 504(a) of the Foreign Assistance Act of 1961, as amended, including administrative expenses [authorized by section 636 (g) (1) of such Act, which shall not exceed $21,400,000 for the current fiscal year], and purchase of passenger motor vehicles for replacement only for use outside the United States, [$400,000,000] $420,000,000 to remain available until expended: Provided, That none of the funds contained in this paragraph shall be available for the purchase of new automotive vehicles outside of the United States[: Provided further, That none of the funds contained in this paragraph and none of the funds contained in the military assistance credit sales revolving fund shall be used to finance directly or indirectly the purchase or acquisition of sophisticated weapons systems, such as missile systems and jet aircraft for military purposes, by or for any underdeveloped country other than Greece, Turkey, Iran, Israel, the Republic of China, the Philippines, and Korea unless the President determines that such purchase or acquisition of weapons systems are vital to the national security of the United States and reports within 30 days each such determination to the Congress: Provided further, That the military assistance program for any country shall not be increased beyond the amount justified to the Congress, unless the President determines that an increase in such program is essential to the national interest of the United States and reports each such determination to the House of Representatives and the Senate within thirty days after each such determination]. (22 U.S.C. 2311 as amended; Foreign Assistance and Related Agencies Appropriation Act, 1968.) 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 regional defense pacts such as NATO, and some have entered into bilateral defense arrangements with the United States. 3.089 55,046 37,348 21,000 25,000 142,665 428,000 -8,000 -10,000 10,000 727,975 380,000 420,000 Military assistance is now substantially reduced from the program level of earlier years. Most Western European 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 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 infrastructure (military facilities constructed for the use of, and jointly financed by, the participating nations of the North Atlantic Treaty Organization) were transferred to the regular Department of Defense appropriations in 1968. 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 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 is included as funds permit. Materiel already on hand, but excess to the needs of U.S. forces, is supplied, whenever possible, at no charge to the military assistance appropriation except for the costs of rehabilitation and transportation. In 1967 and 1968, funds were included in the new obligational authority for military assistance to finance credit sales to various countries of military equipment and supplies produced in the United States and to guaranty exporters, financing institutions, or others doing business in the United States against political and credit risks of loss arising from sales of defense articles and services to eligible foreign countries and international organiza tions. Average GS grade. Average salary, positions authorized by 22 U.S.C. 2151.. Average grades, established by the Secretary retary of Defense... The Foreign Assistance Act of 1967 terminates the credit sales revolving fund (Foreign Military Sales Fund, Average salary, grades established by the SecExecutive) as of June 30, 1968, and provides that beginning 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. Administrative expenses include the administrative costs related to the Foreign Military Credit Sales account and Advances, Foreign Military Sales. Object Classification (in thousands of dollars) 1967 actual 1968 est. 1969 est. Public enterprise funds: FOREIGN MILITARY SALES FUND, EXECUTIVE This revolving fund was established under the authority of section 201(e)(3) of the Foreign Assistance Act of 1965. It terminates on June 30, 1968, in accordance with section 201(h)(3) of the Foreign Assistance Act of 1967. Upon termination of this fund, all of its assets will be transferred to a special account in the Treasury which will be available solely for the purpose of discharging outstanding liabilities and obligations arising from credit agreements and guaranties issued prior to June 30, 1968. Any funds in the special Treasury account in excess of the aggregate amount of such liabilities and obligations will from time to time be transferred to the general fund of the Treasury. Section 201 (h)(3) of the Foreign Assistance Act of 1967 provides that after June 30, 1968, the President may finance new credit sales (and guaranties) only from appro15,935 priations. 71,149 46,408 54,994 147,699 83,884 97,654 236,114 102,410 132,687 232,702 454,962 285,335 37 555 4,875 5,488 14,006 This revolving fund was employed to finance directly the sales of defense articles and defense services to foreign countries and international organizations on cash or credit terms, to guaranty Export-Import Bank and private credit for sales of defense articles and defense services, and to absorb gains and losses, if any, resulting from sales of defense articles and defense services at fixed prices. The capital of the fund was provided by transfer of 37,338 loans outstanding and appropriations from the military assistance appropriation, as authorized by the Foreign Assistance Act. Cash for operations was provided by principal repayments and interest income on credit sales financed by the fund, proceeds from sales to the ExportImport Bank of evidences of indebtedness, and fees and premiums earned on the guaranty of private credit. Expenditures were for payments to suppliers under directly financed credits and overhead expenses relating to military sales activity. A reserve fund was set aside to guaranty publicly and privately financed military credit sales. The reserve requirement was, by law, 25% of "the 428,000 contractual liability related to any guaranty 142, 665 11.1 Permanent positions... - 11.3 Positions other than permanent.... 11.5 Other personnel compensation............. 2,931 585 45,215 4,875 34,179 26.0 Supplies and materials. 6,806 5,876 31.0 Equipment. 41.0 Grants, subsidies, and contributions... 110,927 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 authorized by section 302(b), $12,000,000, to remain available until expended. 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.) GRANTS AND OTHER PROGRAMS Program and Financing (in thousands of dollars) Identification code 04-10-9999-0-1-152 1967 actual 1968 est. 1969 est. |