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80th Congress
1st Session
COMMITTEE PRINT
FOREIGN ASSETS AND LIABILITIES OF THE
UNITED STATES
AND
ITS BALANCE OF INTERNATIONAL
TRANSACTIONS
A REPORT TO THE SENATE COMMITTEE ON FINANCE
BY THE *
NATIONAL ADVISORY COUNCIL ON INTERNATIONAL
MONETARY AND FINANCIAL PROBLEMS
DECEMBER 18, 1947
Printed for the use'of the Committee on Finance
UNITED STATES
GOVERNMENT PRINTING OFFICE
69140
WASHINGTON: 1948
COMMITTEE ON FINANCE
E U G E N E D. M I L L I K I N , Colorado, Chairman
R O B E R T A. T A F T , Ohio
W A L T E R F. GEORGE, Georgia
H U G H B U T L E R , Nebraska
ALBEN W. BARKLEY, Kentucky
OWEN B R E W S T E R , Maine
TOM CONNALLY, Texas
H A R L A N J. B U S H F I E L D , South Dakota
H A R R Y FLOOD BYRD, Virginia
A L B E R T W. H A W K E S , New Jersey
E D W I N C. JOHNSON, Colorado
E D W A R D M A R T I N , Pennsylvania
SCOTT W. LUCAS, Illinois
SHERWOOD B. STANLEY, Clerk
II
CONTENTS
Page
Introduction
Chapter I. Foreign credits and other financial aid by the United States
Government (items 2, 3, and 8)
A. Foreign credits..
World War I indebtedness of foreign governments to the
United States (1917-21)
The German debt, World War (1917-21)
Foreign credits 1934 to July 1, 1947
International Monetary Fund and the International
Bank for Reconstruction and Development
Commitments to extend aid
United States Stabilization Fund Agreementts
B. Other financial assistance to foreign countries
C. Installations and surplus property abroad
Surplus property inventory
Chapter II. International investment position of the United States and
gold reserves of foreign countries (items 1, 4, 5, 6, and 16)
A. American-owned assets in foreign countries
B. Foreign-owned United States assets
C. United States securities and other long-term assets of countries
participating in the European recovery program
United Kingdom
Netherlands
Other European countries
D. Foreign countries' gold and short-term dollar resources
Chapter III. Status of American investments in foreign countries (item 7) A. Treaty provisions
Establishment of and participation in corporations..,
Reciprocal trade agreements
1
Double-taxation conventions and agreements
Aviation agreements
B. Legal status of direct investments in foreign countries
United Kingdom and British Dominions
Europe....:
Latin America
Far East
Africa
C. Default status of private United States loans to foreign countries-.
Chapter IV. National debt, revenue, and income (items 10, 11, 12, 13,
and 14)
General statement and definitions
Government revenue
Government d e b t . . .
*.
National Income
Average interest rate for foreign-government borrowing
Effect of the war on the public debt of the United States
Size of the public debt
Ownership of the public debt
Rate of interest on the public debt
Average interest rate for United States Government borrowing
Chapter V. Balances of payments of the United States (items 9 and 1 5 ) . .
A. Balance of payments of the United States
B. American loans and grants to foreign countries in the international
transactions of the United States
Postwar foreign lending by private United States sources
C. Postwar foreign lending by foreign countries _-_
Chapter VI. Problem of servicing the debt (item 17)
Probable volume of debt service
Conclusion
m
1
3
3
6
13
16
31
33
34
35
41
43
44
45
51
56
58
59
.60
61
67
67
67
68
69
70
73
73
77
91
115
123
124
127
127
128
129
129
137
138
138
139
139
140
142
142
167
168
170
176
177
177
IV
CONTENTS
LIST OF TABLES
Table
1. Credits to foreign countries by t h e United States Government, through
J u n e 30, 1947
2. Other financial assistance to foreign countries b y t h e United States
G o v e r n m e n t , t h r o u g h J u n e 30, 1947
3. Principal a m o u n t of obligations of foreign governments originally
acquired u n d e r t h e various acts of Congress
4. World W a r I d e b t owed t h e United States, as of July 1, 1947
5. Principal a n d interest c o m p u t e d a t t h e rates specified in d e b t agreem e n t s with foreign governments, credit allowances, cash p a y m e n t s ,
a n d t h e t o t a l d e b t as funded
6. Principal of d e b t as funded, interest funded, a n d a m o u n t to be received
over funding period o n account of principal a n d i n t e r e s t .
7. D a t e s of m o r a t o r i u m agreements, a m o u n t s postponed, a n d p a y m e n t s
to be received over t h e 10-year period
8. T o t a l p a y m e n t s received on account of indebtedness of foreign governm e n t s to t h e United States, as of July 1, 1947
9. S u m m a r y of receipts b y fiscal years
10. I n d e b t e d n e s s of G e r m a n y u n d e r t h e funding a n d m o r a t o r i u m agreem e n t s of J u n e 23, 1930, a n d M a y 26, 1932
11. S t a t u s of foreign credits of t h e United States Government, by agency,
b y t y p e of credit, a n d b y country, as of J u n e 30,1945, a n d as of J u n e
30, 1947, a n d activity since J u l y 1, 1945
12. Loans t o foreign governments a n d entities, by country, by agency,
a n d b y s t a t u s , July 1, 1940, t h r o u g h J u n e 30, 1947___*
13. P r o p e r t y credits t o foreign governments a n d entities, b y country, by
agency, a n d b y s t a t u s , July 1, 1940, t h r o u g h J u n e 30, 1947
14. Advances t o foreign g o v e r n m e n t s and entities, by countrv, b y agency,
a n d b y s t a t u s , J u l y 1, 1940, t h r o u g h J u n e 30, 1947_ _ _ 1
15. Financial assistance (other t h a n loans a n d credits), b y country, by
agency, a n d b y t y p e of transaction, J u l y 1, 1940, t h r o u g h J u n e 30,
1947
16. Cost of S t a t e D e p a r t m e n t p r o p e r t y in foreign countries t o which title
was acquired before December 31, 1946
17. P r o p e r t y in E u r o p e , declared surplus b y United States agencies, remaining for disposal as of September 30, 1947
18. E s t i m a t e d value of American-owned assets in foreign countries, b y
g o v e r n m e n t a n d p r i v a t e categories, end of 1946
19. E s t i m a t e d value of American-owned assets in foreign countries, J u l y 1,
1914
20. E s t i m a t e d value of American-owned assets in foreign countries, 1933__
21. E s t i m a t e d value of American-owned assets in foreign countries, 1940- 22. Value of American-owned assets in foreign countries, M a y 3 1 , 1943-_
23. E s t i m a t e d value of American-owned assets in foreign countries, end of
1946
--_
24. E s t i m a t e d value of foreign-owned United States assets, J u l y 1, 1914__
25. Value of foreign-owned United States assets, middle of 1937
26. Value of foreign-owned United States assets, J u n e 14, 1941
27. E s t i m a t e d value of foreign-owned United States assets, end of 1946-_
28. Gold a n d U n i t e d States assets owned in foreign countries, J u n e 30,
1947
29. Gold a n d s h o r t - t e r m dollar resources of foreign countries, as of J u n e
30, 1947
30. S t a t u s of publicly offered foreign dollar bonds, as of December 31,
1946
3 1 . Per capita t a x burden, d e b t burden, a n d national income of t h e United
States a n d of foreign countries, a n d ratio of taxes t o national income, 1939 a n d 1946
32. I n t e r n a l a n d external public d e b t of foreign countries, 1939 a n d 1946_
33. Population a n d exchange rates used in preparation of table 39
34. C u r r e n t yields of foreign g o v e r n m e n t bonds, as of August 1947
35. T o t a l public d e b t of t h e United States outstanding, classified b y issuer,
J u n e 30, 1939
36. E s t i m a t e d ownership of all interest-bearing securities b y governmental
units in t h e United States, J u n e 30, 1939, to J u n e 30, 1946
Page
4
5
6
7
9
10
11
12
13
15
17
20
23
26
35
42
43
45
46
46
48
49
51
51
52
54
56
57
65
126
130
133
135
138
135
140
CONTENTS
Table
3?. Yields on United States G o v e r n m e n t securities, J u n e 30, 1939, t o J u n e
30, 1947
38. T o t a l G o v e r n m e n t receipts in United States, 1939 a n d 1946
39. I n t e r n a t i o n a l transactions of t h e United States, 1914-47
-__
40. Reexports of foreijgn merchandise from t h e United States, 1914-46
41. United States exports, by commodity groups a n d countries, 1914, 1932,
1939, a n d 1946
_•
42. United States imports, b y commodity groups a n d countries, 1914, 1932,
1939, a n d 1946
43. Outflow of United States long-term capital a n d unilateral transfers,
J u l y 1, 1945, to J u n e 30, 1947
44. Foreign credits b y p r i v a t e United States lenders from J u n e 30, 1945, t o
t h e present
45. Postwar Canadian loans a n d advances t o foreign governments
46. Postwar foreign loans b y Latin-American countries
47. Postwar foreign credits b y p r i v a t e British lenders
48. Postwar foreign loans a n d advances by Sweden
49. Postwar foreign loans a n d advances by Switzerland
V
Page
141
141
144
147
148
157
168
169
171
171
173
174
175
LETTERS OF TRANSMITTAL
U N I T E D STATES SENATE,
COMMITTEE ON F I N A N C E .
To the Members of ike Committee on Finance:
There is transmitted herewith a report to the Committee on Finance
by the National Advisory Council on International Monetary and
Financial Problems. The National Advisory Council undertook to
submit this report, as you may recall, when the committee had under
consideration Senate Resolution 103 by Mr. Butler requesting information relative to loans and commitments to foreign governments and
other fiscal statistics. I n view of the restriction placed upon the
information furnished respecting military installations, t h a t information does not appear.
Very truly yours,
E U G E N E D . M I L L I K I N , Chairman.
vn
VIII
LETTERS OF TRANSMITTAL
T H E SECRETARY OF THE TREASURY,
Washington, December 18, 1947.
Hon.
E U G E N E D.
MILLIKIN,
Chairman, Committee on Finance, Suite 310,
bnited States Senate.
M Y D E A R M R . CHAIRMAN: I am transmitting herewith a detailed
report prepared pursuant to my letter to you, dated July 18, 1947,
stating that the National Advisory Council was taking the necessary
steps to collect the data requested in the proposed Senate Resolution
103. This report covers items 1 to 16, inclusive. Data in responseto item 17 of the resolution, now in the course of preparation, will be
forwarded shortly.
The work of bringing this material together in accurate and systematic form was done by a committee composed of representatives of
the Treasury Department, the Department of State, the Department
of Commerce, the Board of Governors of the Federal Reserve System,
the Export-Import Bank, and the Securities and Exchange Commission.
Information with respect to military installations abroad as requested in item 8 is separately attached and should be treated as a
restricted document.
Very truly yours,
J O H N W.
Chairman,
National
SNYDER,
Advisory Council on International
Monetary and Financial Problems.
TREASURY DEPARTMENT,
Washington, January 13, 1948.
Hon.
E U G E N E D.
MILLIKIN,
Chairman, Committee on Finance, United States Senate.
M Y D E A R M R . CHAIRMAN: I am transmitting herewith the response to item 17 of the proposed Senate Resolution 103. This is in
accordance with my letter to you dated December 18, 1947, transmitting the other material requested in the resolution.
This completes the work on Senate Resolution 103.
Very truly yours,
J O H N W.
SNYDER,
Chairman, National Advisory Council on International
tary and Financial Problems.
Mone-
FOREIGN ASSETS AND LIABILITIES OF THE UNITED
STATES AND ITS BALANCE OF INTERNATIONAL
TRANSACTIONS
INTRODUCTION
Tbis report is in response to Senate Resolution 103, submitted by
Mr. Butler on April 9, 1947, and referred to the Committee on Finance
of the Senate. That committee asked the Departments of State and
Treasury for comments on the resolution. When these requests were
discussed by the National Advisory Council on International Monetary and Financial Problems, the Council offered to supply the data
without formal resolution by the Senate. This offer was accepted by
the Committee on Finance on June 27.
Senate Resolution 103 listed 17 items as to which information was
desired, relating to the international financial position of the United
States.
Data on these 17 items have been grouped into six chapters.
Additional information has been included where pertinent and data
have been supplied with respect to all foreign countries when such was
available.
Data in respect to each item is preceded in the report by the item
as stated in Senate Resolution 103. A brief statement precedes each
set of data explaining any technical points necessary to the understanding and correct use of the data. The first 16 items are largely
factual and the data are contained in about 50 tables, many of them
quite extensive. The text is primarily descriptive, not analytical.
Chapter I contains a complete record by countries of all loans to
foreign countries by the Government of the^LJnited States from 1914
to June 1947. I t includes information regarding the repayment status
of the loans, the extent to which they were utilized and to which they
are still unutilized. In addition, information is given regarding the
subscriptions made by this Government to the International Monetary
Fund and the International Bank for Reconstruction and Development. Although the subscriptions of the United States are not direct
loans to foreign countries, they facilitate financial assistance by those
institutions in subsequent periods.
Chapter I I is devoted to statistical data regarding the creditordebtor position of the United States as of several significant dates.
The data for the earlier dates was, in the absence of official studies,
based on private studies. They differ somewhat in completeness and
accuracy from studies made more currently and backed by the
resources of the Government. This chapter includes a table regarding
the total gold and short-term dollar balances of foreign countries,
requested in item 6, and an analysis ol the adequacy of those holdings
for the purposes for which they are normally held.
1
2
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
D a t a regarding the status of American investments in foreign
countries are contained in chapter I I I . Senate Resolution 103 in
item 7 called for the legal and actual status of American direct investments in foreign countries. Chapter I I I includes a short analysis of
United States treaties with foreign countries which affect the rights of
our citizens to do business abroad and a brief survey of the default
status of foreign bonds sold in the United States.
I n the chapter on national debts, taxes and incomes—chapter IV—
there are shown as complete data as could be obtained relating to the
per capita debt and tax burdens of each country and their relation jto
the national incomes of those countries. Supplementary data are
given about the external debts of each country together with some
information concerning the interest rates applicable to government
borrowing.
The balance of international transactions of the United States is
shown in chapter V in standardized form for the period 1914-18 and
by years from 1919 to 1947 together with a detailed tabulation of the
foreign trade of the United States for 1914, 1932, 1939, and 1946 by
major economic groups. Additional to this are data regarding the
principal postwar foreign loans made by countries other than the
United States and a list of the principal foreign loans made by private
institutions in this country.
Chapter VI is devoted to a brief statement, in response to item 17,
relating to the problem of servicing the foreign debt to. the United
States.
I. F O R E I G N C R E D I T S A N D O T H E R F I N A N C I A L
AID BY T H E U N I T E D STATES G O V E R N M E N T
CHAPTER
This chapter brings together replies to items 2, 3, and 8 in the proposed Senate Resolution 103. I t is divided into three main sections:
A. Foreign credits, including capital contributions to the International
Monetary Fund and International Bank for Reconstruction and Development; B. other financial assistance in the form of lend-lease,
civilian supplies, relief and rehabilitation, and financial aid; and C.
assets held abroad in the form of installations and surplus property.
Items 2, 3, and 8 read as follows:
Item 2. The total loans made by the United States Government to foreign
governments and agencies thereof from 1914 to 1933, inclusive, and from 1933
to the date hereof; itemized for each country, with the repayment history of each.
Item 3. Existing commitments of the United States Government or representatives thereof, including alleged moral commitments, to extend American
financial and economic aid to foreign countries and international organizations.
Item 8. The value, classification, and location of United States Governmentowned property in foreign countries to December 31, 1946, including installations
and surplus property.
A. F O R E I G N C R E D I T S
This section contains data regarding the loans to foreign countries
that have been made by the United States Government between 1914
and June 30, 1947, commitments t h a t have been made to extend
further loans to foreign countries and the outstanding indebtedness of
those countries to this country. World War I intergovernmental
debts, as well as loans and credits extended during and since World
War I I , are included.
Part 1 of this section presents data relative to the World War I
loans. This part has been brought up to July 1, 1947. P a r t 2 contains a series of tables relating to loans and credits to foreign countries
by the Government of the United States since 1933. These tables
relate to the total commitments, utilizations or disbursements,
amounts still available for disbursement as of June 30, 1947, repayments and outstanding indebtedness, also as of the latter date.
Tables 1 and 2 summarize all types of loans, credits, and grants to
foreign countries by the United States Government. Further details
by countries and by types are given in subsequent tables.
Loans to foreign countries by the United States Government during
and just after World War I amounted to $10,350,000,000. Of this
amount, $7,077,000,000 was cash advanced before the armistice,
$2,533,000,000 was cash advanced after the armistice and $740,000,000
represents credits extended for surplus property and relief supplies
provided foreign countries. On these amounts, $282,000,000 was paid
on principal and $671,000,000 as interest, prior to the date of funding.
The debts after funding, including amounts not funded by Armenia and
Russia, amounted to $11,909,000,000. This included $1,716,000,000
of unpaid interest accumulated to the dates of the agreements. On the
3
4
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
funded debts, $476,000,000 has been paid on account of principal and
$1,323,000,000 on account of interest.
The serious financial condition of Germany in 1931 led to the proposal for a moratorium by the President of the United States. The
condition of Germany affected the ability of other countries to make
their payments to the United States because each of our principal
debtors had payments due to it directly or indirectly from Germany
in amounts somewhat greater than the payments due from it to the
United States. Intergovernmental debts servicing was completely
suspended for the fiscal year 1932. At the end of that year, however,
most of the debts went into default, and for the most part, payments
have never been resumed. Altogether, interest accrued and unpaid
amounting to $3,892,000,000 has accumulated and has been added to
the total indebtedness (see table 4). Only one debtor country, Finland, has made payments in recent years.
T A B L E 1.—Credits to foreign countries by the U. S. Government, through June
30,1947
[In millions of dollars]
v
Type
Utilization
t o J u n e 30,
1947
P a y m e n t s received t o
J u n e 30,1947
Principal
1914 t o 1933:
Liberty B o n d Acts
S u r p l u s s u p p l i e s sales
Relief s u p p l i e s _
_
_ -
Total
S u b t o t a l loans
1,994
i 15,327
2,135
3 2,050
487
377
66
225
50
1,758
3 2,050
262
. . _.
4,672
602
116
4,070
2,674
1,363
846
141
61
6
1
1
_ _. . -
1,302
841
141
106
309
30
2,350
67
1
2,283
445
169
42
3
129
8
7,191
6,179
711
254
119
53
* 6,481
< 3,127
703
291
456
277
9
246
15
13
2
994
733
9
261
8 15
S u b t o t a l p r o p e r t y credits
T o t a l credits:
1934 t o J u n e 30,1947
J u l y 1,1945, t o J u n e 30,1947.
Total
9,610
599
141
758
Commodity programs (Germany and
Japan)
_ .
Short-term advances:
Agriculture D e p a r t m e n t
Other
Interest
10, 350
1934 t o J u n e 30,1947:
Loans:
Export-Import Bank 2
U n i t e d K i n g d o m Special L o a n
Other loans. _ .
-
P r o p e r t y credits:
Lend-lease .
Surplus property
Maritime
Outstand- Unutilised
i n g o n J u n e balanites
30,1947
J u l y 1,1947
6
3
939
1,700
35
i The principal of these debts as funded amounted to $11,577,000,000 and an additional $127,000,000 of interest was funded under the debt agreements. Unpaid interest accumulated since 1932 accounts for the increase
in outstanding indebtedness notwithstanding repayments of principal totaling $758,000,000.
* The .following additional loan authorizations were announced by the Export-Import Bank between
June 30 and Dec. 1, 1947: U. S. Scientific Export Association, $2,500,000; Austria, $13,505,000; Ecuador,
$2,720,000; Egypt, $5,600,000; Canada, $300,000,000; Turkey, $8,000,000, and Belgium, $50,000,000. The
allocation of European cotton credit to Finland of $7,500,000 and to Germany of $19,000,000 were also announced but were not additions to the total.
3 As of Nov. 25, 1947, utilization and outstanding were $3,350,000,000 and unutilized balance $400,000,000.
* On Sept. 30,1947, the total amount outstanding was $7,862,000,000 and the unutilized balance on Oct. 1,
1947, was $1,807,000,000.
5 On Sept. 30, 1947, the total of outstanding advances was $143,000,000, while the unutilized balance remained at $15,000,000.
Source: World War I data, Treasury Department; data from Jan. 1,1934, to Nov. 25, 1947, Clearing
Office for Foreign Transactions, Department of Commerce.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
5
Of the $10,300,000,000 of loans and other credits extended since 1933,
$9,300,000,000 has been granted and used since 1945. The principal
exceptions were loans made by the Export-Import Bank, which was
established in February 1934, and loans by the Reconstruction Finance
Corporation, .of which the largest was the loan to the United Kingdom in 1942. Since the end of World War II, the loan of $3,750,000,000
to the United Kingdom has been the largest. Export-Import Bank
loans to many countries, lend-lease credits partly for postwar shipments and partly in payment of inventories of lend-lease goods suitable for postwar use, and sales of surplus property have accounted
for the bulk of credits utilized and indebtedness outstanding (see
table 1). The $10,300,000,000 of credits include $7,200,000,000
actually disbursed or utilized by the borrowers prior to June 30, 1947,
and $3,100,000,000 not yet utilized on t h a t date. Much of this
$3,100,000,000 was utilized during the 5 months following June 30.
Other financial assistance to foreign countries by the United States
Government was dominated by lend-lease assistance to our Allies
during the war, amounting to $47,806,000,000 (see table 2). The United
States contribution to the United Nations Relief and Rehabilitation
Administration and the provision of civilian supplies for the prevention of disease and unrest by the War and Navy Departments in
occupied areas are also important. Some of the amounts shown in
table 2 represent outright grants, while others are items as to which
terms of repayment were to be negotiated but have not yet been
settled. Postwar utilization of these forms of aid amounted, up to
June 30,1947, to $5,364,000,000. The unutilized balance as of the same
date, amounting to $2,236,000,000 is comprised principally of civilian
supply commitments for occupied areas, aid to the Philippine Republic, the aid to Greece and Turkey, and the post-UNRRA aid.
T A B L E 2.—Other financial assistance l to foreign countries by the U. S.
through June SO, 1947
Government,
[In millions of dollars]
Utilization
Authorization
to J u n e 30,1947
T y p e of g r a n t
J u l y 1, 1940,
through
J u n e 30,1947
47,806
3,138
2,544
332
400
151
1,212
1,218
1,489
2,445
47,806
2,301
2,528
15
199
80
632
837
16
332
400
71
580
55,583
5,364
53,347
2 2,236
•
Lend-lease3
Civilian supplies
UNRRA*
Post-UNRRA
A i d to Greece a n d T u r k e y
O t h e r aid
.
F i n a n c i a l aid
Total
,
.
Unutilized
balance
J u l y 1,1947 2
J u l y 1,1945,
through
J u n e 30, 1947
i Some of these items were outright grants, while others were subject to negotiations as to terms of repayment. The amount of credits extended or cash received as a result of negotiations have been deducted from
these amounts.
2 Committed but not all appropriated (see explanatory notes, table 18). Utilizations in the quarter ending Sept. 30,1947, are estimated to reduce the unutilized balance on Oct. 1,1947, to about $1,700,000,000.
34 Excluding cash lend-lease.
Utilizations here reported reflect lag in fiscal records; authorizations are understated to extent of the
same lag, estimated at about $150,000,000 as of June 30,1947, which would bring the total authorization to
$2,700,OOQ,000.
Source: Clearing Office for Foreign Transactions, Department of Commerce.
6
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
WORLD
WAR
I
INDEBTEDNESS OF FOREIGN GOVERNMENTS
UNITED STATES (1917-21) 1
TO
THE
Origin
The United States made loans to the Allied Governments before and
after the Armistice for the purpose, in general, of assisting those governments to purchase supplies in the United States in connection with the
prosecution of the war. I n addition the United States, after the
Armistice, sold surplus war and relief supplies on credit to various
countries of Europe, including some of the Allied Governments. At
the conclusion of the war period the Treasury held obligations of
20 nations, payable either on demand or within a short period of time.
The United States acquired obligations of foreign governments as a
result of (1) cash advances made under authority of the various Liberty
Bond acts; (2) sales on credit of surplus war material under authority
of the act of July 9, 1918; (3) sales on credit of relief supplies under
authority of the act of February 25, 1919; (4) sales on credit for relief
purposes of flour by the United States Grain Corporation under authority of the act of March 30, 1920; and (5) services rendered by the
United States Shipping Board Emergency Fleet Corporation.
T A B L E 3.—Principal amount of obligations of foreign governments
acquired under the various acts of Congress
originally
[In millions of dollars]
Total
principal
amount
of obligaP r i n c i p a l a m o u n t of obliga- t i o n s retions received u n d e r L i b e r ceived
ty Bond Acts
for surplus supplies sold
on c r e d i t
under
a c t of
J u l y 9,
P
r
e
P
o
s
t
Total
1918
a r m i s t i c e armistice
Country
Armenia _
Austria.- _
Belgium
C u b a _. __.
Czechoslovakia
Estonia
Finland
France _
Great Britain. _
Greece
Hungary _
Italy
..
Latvia
Liberia
Lithuania
Nicaragua
Poland
Rumania
J
Russia
Yugoslavia
,
_ .
349.2
10.0
62.0
171.8
10.0
177.4
29.9
62.6
20.6
12.2
2,997. 5
4, 277. 0
127.2
1,970.0
3,696. 0
1,027. 5
581.0
127.2
407.3
1,648.0
1, 031.0
617.0
Total principal
a m o u n t of obligations received
for relief supplies
furnished on
credit u n d e r a c t
of-
F e b . 25,
1919
M a r . 30,
1920
8.0
3.9
24.1
6.4
1.8
8.3
2.9
1.7
(2)
.
25.0
187.7
26.8
9,610.4
00
25.0
6 187. 7
10.6
7,077.1
16.2
2, 533.3
2.5
2.6
4.2
3.4
*83. 7
12.9
.4
25.0
599.1
.8
51.7
11.9
24.1
379.1
10.0
91.9
14.0
8.3
3,404.8
4,277.0
27.2
1.7
1,648.0
-5.1
2
5.0
.4
159.7
37.9
192.6
51.8
10,350. 5
()
24.3
4.5
84.1
Total
56.9
i Includes $12,167,000 authorized under the act of Feb. 14,1929.
J $26,000.
3
Includes $289,898.78 canceled under treaty of Apr. 14,1938, between the United States and Nicaragua.
4
Includes $3,736,628.42 acquired by the United States Shipping Board Emergency Fleet Corporation for
services
rendered.
6
Exclusive of $5,000,000 conditional advance not availed of and returned.
1
T h e following account of the origin, development and present status of the World War indebtedness of
foreign countries to the United States, is taken from a "Memorandum covering the World War Indebtedness of foreign governments to the United States (1917-21) and showing the total amounts paid by Germany under the Dawes and Young Plan" prepared by the Treasury Department, Fiscal Service, Bureau
of Accounts, revised July 1,1944, and the July 1,1947, supplement to that memorandum. Further information on the subject may be found in that memorandum and in the Combined Annual Reports of the World
War Foreign Debt Commission.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
7
Cash advances
The Liberty Bond acts authorized the Secretary of the Treasury
with the approval of the President, to establish credits in favor of
foreign governments engaged in war with enemies of the United States,
and, to the extent of those credits, to make advances to such governments through the purchase at par of their respective obligations.
The total principal amount of obligations acquired under this authority,
including a loan of $12,167,000 to Greece authorized by the act of
February 14, 1929,2 was $9,610,403,575.45. Of this total, the sum of
$7,077,114,750 was advanced up to November 11,1918, and $2,533,288,825.45 was advanced after the Armistice (see table 3).
TABLE 4.—World War I debt owed the United States as of July 1, 1947
Country
Funded debts:
Belgium..
.
Czechoslovakia
Estonia.
_.
Finland
France..
__
Germany (Austrian
dfihtp.rJness) 3
Great Britain
Greece __
Hungary
Italy
Latvia
Lithuania..
Poland ..Rumania
Y u g o s l a v i a 6 _ _.
Total
._ _
in_
•_
Unfunded debts:
Armenia
Russia __
Total
_._
Grand total
_.
I n t e r e s t post- I n t e r e s t accrued
poned and pay- and unpaid under
able u n d e r
funding and mormoratorium
a t o r i u m agreeagreements
ments
Total indebtedness
Principal u n p a i d 1
$520,211,077.60
184, 247,307. 74
25,636, 760. 81
8,259, 270. 28
4, 760,727,124.40
$400,680,000.00
165,241,108.90
16,466,012. 87
7,624,499. 59
3,863, 650,000.00
. 26,024, 539. 59
6, 719,464, 782. 58
37, 745,215.10
2,873,678. 38
2,062,176,909. 34
10, 593,416.04
9,495,275. 51
320,829,064.2C
78,527,457. 53
64,012,968. 78
25,980,480.66
4,368,000,000.00
31, 516,000.00
1,908,560.00
2,004,900,000.00
6,879,464. 20
6,197, 682.00
206,057,000.00
63,860, 560. 43
61,625,000.00
131,520,000.00
449,080.00
57,072. 75
2, 506,125.00
205,989.96
185, 930.46
6,161,835.00
44,058.93
2,219,944, 782.58
5,780,135.10
908,045.63
54,770, 784. 34
3, 507,961.88
3, 111, 663.05
108,610,229.20
4
14,666,897.10
2,387,968. 78
14,830,824,847.88
11,230, 586, 368.65
184,599,538.99
3,415, 638,940.24
28, 587,071.07
467,339,367. 69
11,959,917. 49
192,601,297.37
495,926,438.76
204, 561, 214.86
• 15,326, 751,286. 64
11,435,147, 583.51
$3,750,000.00
492,360.20
2 634,645.62
38,636, 500.00
$115, 781,077. 60
19,006,198.84
8,678,387. 74
125.07
858,440,624. 40
16,627,153.58
274, 738,070.32
291,365,223.90
184, 599, 538. 99
3, 707,004,164.14
1
Includes principal postponed under moratorium agreements and principal amounts not paid according
to 2contract terms.
Also includes interest postponed and payable under agreements of May 1, 1941, and Oct. 14, 1943.
3
The German Government was notified that the Government of the United States would look to the
German Government for the discharge of the indebtedness of the Government of Austria to the Government
of the United States.
4
Advance payment of interest June 15, 1933, amounting to $29,061.46 deducted.
8
This Government has not accepted the provisions of the moratorium.
NOTE.—Indebtedness of Germany to the United States on account of costs of army of occupation and
awards under Settlement of War Claims Act of 1928, as amended, not shown in above statement.
Sale of war supplies on credit
Under authority of the act of July 9, 1918, the President, through
the head of any executive department, was authorized to sell any
surplus war supplies on such terms as the head of such department
deemed expedient. Sale was carried out by the United States Liquidation Commission (created on February 11, 1919) and by the Secre- .
taries of War and of the Navy, who received in payment obligations of
the purchasing governments. The total principal amount of obligations thus acquired was $595,386,104.79. (This amount is exclusive
2 This loan, made out of credits established by the Liberty Bond acts, was specifically 'authorized by
Congress in connection with settlement of the Greek war debt to the United States.
8
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
of $3,736,628.42 acquired by the United States Shipping Board Emergency Fleet Corporation for services rendered.)
Sale of relief supplies on credit
American Relief Administration.—The
act of February 25, 1919,
appropriated $100,000,000 as a revolving fund until June 30, 1919,
for the participation by the United States, in the discretion of the
President, in the furnishing of foodstuffs and other urgent supplies
to populations of certain countries of Europe or countries contiguous
thereto. The American Relief Administration was given the authority
of equitably distributing the relief supplies in accordance with the
provisions of the act. Out of the appropriation of $100,000,000 the
sum of $95,050,391.08 was expended, for which there were delivered
to the Treasury obligations in the principal amount of $84,093,963.55
from various foreign governments. Approximately $10,900,000 was
spent for child feeding and other charitable services for which no
obligations were taken.
United States Grain Corporation.—The act of March 30, 1920,
authorized the United States Grain Corporation, with the approval
of the Secretary of the Treasury, to sell or dispose of flour in its possession, not to exceed 5,000,000 barrels, for cash or on credit at such
prices and on such terms or conditions as considered necessary to
relieve the populations in the countries of Europe or countries contiguous thereto suffering for the want of food. The American Relief
Administration acted as the fiscal agent of the United States Grain
Corporation in dispensing this relief. For these supplies there were
delivered to the Treasury obligations of foreign governments in the
principal amount of $56,858,802.49.
Transportation services
The United States Shipping Board acquired obligations in the net
principal amount of $3,736,628.42 from the Government of Poland
for transportation services rendered that Government in connection
with the shipment of supplies to Poland. The Shipping Board transferred these obligations to the United States Treasury for collection.
Summary
Table 3 shows the principal amount of obligations originally
acquired from each foreign government under the acts of Congress
specified above including those acquired by the United States Shipping
Board.
Settlements
Recognizing the fact that in the financially disordered years of 1921
and 1922 the debtor nations could not pay on demand, Congress
originally authorized the debts to be funded on not longer than a
25-year basis and at not less than 4% percent interest. A World
War Foreign Debt Commission was created by act of February 9,
1922, amended February 9, 1923, to deal with refunding. This
Commission negotiated settlements with the various debtor countries
on the basis of their estimated ability to pay. Each settlement
received the approval of Congress before it became effective.
TABLE
5.- -Principal
and interest computed
at the rates specified in debt agreements with foreign governments,
and the total debt as funded
05
cash
I n d e b t e d n e s s a t t i m e of funding
O
C
Funded debt
Country
I
Principal
Interest
Total
Applied on
principal
to
Austria
Belgium.
C zechoslo vakia
Estonia
Finland
France
Great Britain
Greece
Hungary
Italy .
Latvia_.
Lithuania
Poland
Rumania.. .
Yugoslavia
_
__
__ _
.
.
._
__
Total
Cash received u p o n execution of agreements.__ _
C r e d i t allowances
Total
•$24,055,708.92
377,029, 570.06
91,879,671.03
13,999,145.60
8,281,926.17
3,340, 516,043. 72
4,074,818,358.44
3 27,167,000.00
1,685,835.61
1, 647,869,197.96
5,132, 287.14
'4,981, 628.03
159,666,972.39
36,116,972.44
51,037,886. 39
$559,176.08
40, 767, 664.60
25, 978, 742.91
1, 765, 219. 73
727,389.10
684,870,643.17
529,309, 727.30
3,127,922.67
253, 917.43
394,330, 268.38
647, 275.62
1,049, 918.94
18,898,053. 60
8,477,479.10
11,819,226.00
$24,614,885.00
417, 797,234.66
117,858,413.94
15, 764,365. 33 2 $1, 932, 923. 45
9,009, 315. 27
386,686.89
4, 025,386,686. 89
4,604,128,085.74
2, 922. 67
30, 294,922.67
1,939, 753.04
199,466.34
2,042,199, 466.34
5, 779, 562. 76
6, 031, 546. 97
178, 565,025.99
44,594,451.54
4, 451. 54
62,857,112.39
7,112. 39
9, 864,238, 203. 90
1, 722, 582, 624.63
11,586,820,828.53
600, 639.83
a 1,932,9?3.45
4,167, 966.31
i 2,858, 413.94
4, 768, 606.14
4, 791,337. 39
2,533, 563.28
7,026,380.25'
9, 559,943. 53
9,861, 704,640.62
1,715, 556,244.38
11,577,260,885.00
2,533, 563.28
Applied on
interest
1
2
3
_'
Amount of interest written off in compromise settlement with Czechoslovakia.
Allowance for total loss of cargo of steamship John Russ sunk by a mine in Baltic Sea.
Includes 4 percent 20-year loan of $12,167,000 authorized by act of Feb. 14,1929.
w
o
>
%
$24,614,885
417, 780,000
115,000,000
13,830,000
9,000,000
4,025, 000,000
4, 600, 000,000
30, 292,000
1, 939, 000
2,042,000,000
5, 775,000
6,030,000
178, 560,000
44, 590, 000
62,850,000
$17, 234, 66
i 2,8$8,413.94
1,441.88
9,315.27
4,128,085. 74
753.04
4,562. 76
1, 546. 97
5,025. 99
7,026, 380.25
11, 577, 260,885
Ul
>
>
w
GO
o
*i
..
A m o u n t funded
payments,
Credit allowances a n d cash
p a y m e n t s on execution of
agreements
CD
|
credit allowances,
•_____
w
d
M
GO
>
10
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED' STATES
T A B L E 6.—Interest funded under agreements and amount to be received over
period on account of 'principal and interest
P r i n c i p a l of
d e b t as
funded
Country
Austria..
Belgium _
_.. .
Czechoslovakia.
Estonia..
_.
.
France
Great Britain.
Greece .
Hungary.
Italy .
Latvia
. ..
Lithuania .
Poland
-.
Rumania, _ _
Yugoslavia
Total
_
Interest
funded
under debt
agreements
$24, 614, 885
(0
417,780,000
115,000,000 2 $70,071,023.07
13,830,000 2,636,012.87
9, 000,000
4, 025, 000,000
4,600, 000, 000
30, 292,000 2, 205, COO. 00
43, 555. 50
1,939,000
2,042,000,000
5,775,000 1,113,664.20
402,465. 00
6,030,000
178,560,000 28,784, 297.37
44,590,000 2 21,970, 560.43
62,850,000
Total principal
payable
$24, 614,885. 00
417,780,000.00
185,071,023.07
16,466,012. 87
9,000,000. 00
4, 025,000,000. 00
4, 600,000,000.00
32, 497, 000. 00
1,982, 555. 50
2,042,000, 000. 00
6,888, 664. 20
6,432,465. 00
207,344, 297.37
66, 560, 560. 43
62, 850,000. 00
Interest payable
over funding period exclusive of
a m o u n t funded
(see c o l u m n 2)
funding
Total amount
(principal a n d
interest) t o be
received over
funding period
1 $24,614,885.00
727, 830, 500. 00
127,740,410.81
312,811,433.88
37, 707, 645. 76
21,241,632.89
12, 695, 055. 00
21,695,055.00
2,822, 67,, 104.17 6,847,674,104.17
6,505,965,000. 00 11,105,965,000.00
5, 623, 760. 00
38,120, 760. 00
2,771,875.92
4,754,431.42
365,677, 500. 00 2,407,677,500. 00
15,790,523.13
8,901,858.93
15,069,541.57
8, 637,076. 57
481,674,781.29
274,330,483. 92
55,946, 699. 62
122, 506, 260. 05
95,177,635.00
32,327,635.00
$3i6,65b,566.66
_ 11,577, 260,885 127, 226, 578.44 11,704,487,463.44 3 10,554,582,592.83 3 22, 259,070,056. 27
1 See ''Payments postponed."
2 Represents difference between funded principal and total face amount of bonds delivered or to be delivered under the funding agreements, which difference arises through permitting the governments to fund
a part of the interest accruing over the periods specified in the agreements (Czechoslovakia, first 18 years;
Rumania,
first 14 years).
3
Exclusive of $53,870,533.27 interest on payments postponed during the fiscal year 1932 under moratorium
agreements; exclusive of interest on principal amounts postponed in accordance with terms of funding
agreements in certain instances, and exclusive of interest on principal amounts not paid when due.
NOTE.—This table has been prepared on basis of original funding agreements and does not include accrual
of interest in those cases where principal amounts have not been paid as provided for in such agreements.
Table 5 shows 3 in each case the principal and interest at the time of
funding, the credit allowance, the cash payments upon execution of the
agreements, and total debt as funded.
Table 6 shows for each government the amount of the debt as
funded, the interest funded under the debt agreements, the amount
that the United States was scheduled to receive over the funding
period on account of interest (exclusive of interest to.be received under
the moratorium agreements), and the total amount which the United
States was scheduled to have received under the original funding
agreements if the payments provided for in such agreements had been
made in the amounts and on the dates indicated therein.
Concessions in debt settlements.—It should be recognized that the
United States in its settlements with its various debtors did not, with
one exception, directly cancel any of the principal of the debt. This
exception arose in the settlement concluded with Estonia, under which
the United States agreed to a reduction of $1,932,923.45 in the principal
of the Estonian debt-because of the loss of a cargo of surplus war
material when a steamship was sunk by a mine in the Baltic Sea in
September 1919. With this exception the only reductions under the
debt settlements were reflected in a reduction in the interest rate.
The obligations originally acquired by the United States from its
foreign debtors generally bore interest a t the rate of 5 percent per
annum. I n a very few cases the rate was 6 percent. The funding
agreements made with the foreign debtor nations provide for payments
3
It will be noted that 5 countries listed in table 3 do not appear in tables 4 and 5. The explanation is as
follows: The debts of Armenia and Russia were not funded; the debts of Cuba and Liberia were paid in full
prior to funding (see table 8). The unpaid portion of the debt of Nicaragua was canceled by treaty of
April 14. 1938, in consideration of Nicaraguan acceptance of a settlement of certain tax claims against the
United States.
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
11
over a period of 62 years (except in the case of the Austrian settlement,
which provides for a period of 40 years), with interest at varying rates,
all considerably under 5 percent.
Moratorium
In June 1931, to allay the spread of a financial panic that was causing
large withdrawals of funds from Germany, and threatening her banking
and credit structure, President Hoover offered, subject to congressional
approval, to suspend during the fiscal year 1932 all payments due the
United States on account of the indebtedness of foreign governments,
provided that the important creditor powers would take similar action
with respect to reparations and intergovernmental debts due them.
The offer was accepted in principle by all the important creditor
governments. The authority to postpone payments due the United
States was provided in a joint resolution of Congress approved on
December 23, 1931, which provided for the postponement of the
amounts due during the fiscal year 1932 (July 1, 1931, to June 30,
1932), and their repayment over a period of 10 years beginning July 1,
1933, with interest at the rate of 4 percent per annum. I t also
authorized the Secretary of the Treasury to conclude agreements
carrying into effect the moratorium proposal.
Agreements were concluded with the various debtors, making effective the President's proposal.
The following statement shows the date of the moratorium agreement with each foreign debtor, the amount postponed, the annuities
payable over a period of 10 years, and the total amount to be received
over that period by the United States:
T A B L E 7.—Dates of moratorium agreements, amounts postponed,
be received over the 10-year period
Amounts postponed
Country
D a t e of
agreement
Principal
Austria
Belgium _
Czechoslovakia
E s t o n i a __
Finland
France
_ G r e a t B r i t a i n __
Greece. _
-_
Hungary
___
Italy
Latvia
Lithuania
- Poland
Rumania l
-.- Yugoslavia
1982
Sept. 14
J u n e 10
.-.do
J u n e 11
M a y 23
J u n e 10
June 4
M a y 24
M a y 27
June 3
J u n e 11
June 9
J u n e 10
J u n e 11
Total
Amount
payable
each year
including
interest a t 4
percent per
annum
to
Total to be
received
over 10-year
period
$34, 767.23
$287, 556.00
$287, 556.00
$347, 672.30
4, 200,000.00 $3,750,000.00 7,950,000.00
968,907. 76 9, 689,077. 60
3,000,000.00
3,000, 000.00
365, 625. 56 3, 656, 255. 60
492,360.19
108,012.87
600,373.06
73,170. 58
731, 705.80
55,000.00
257, 295.00
312, 295.00
38,061. 00
380, 610.00
11, 363, 500..00 38, 636, 500.00 50,000,000.00 6,093, 759. 44 60,937, 594.40
28,000,000.00 131, 520,000.00 159, 520,000.00 19, 441, 530.10 194,415,301.00
660,000.00
449,080.00 1,109,080.00
134, 274. 76 1,342, 747. 60
12, 270.00
57,072. 75
69,342. 75
8,451.16
84, 511. 60
12, 200,000.00 2, 506,125.00 14, 706,125.00 1, 792,311. 76 17,923,117.60
44, 664. 20
205, 989.96
250, 654.16
30, 548. 52
305, 485.20
k
38, 615.00
185, 930. 46
224, 545.46
27, 366. 52
273, 665. 20
1,325,000. 00 6,161,835.00 7, 486,835.00
912, 459. 42 9,124, 594.20
800,000.00
97, 500.16
975,001. 60
800,000.00
62,094, 618.07 184, 222,188.36 246,316,806. 43 30,018, 733.97 300,187,339. 70
Total
Germany—Army
costs 2
Interest
and payments
M a y 26
RM
25,300,000.00
RM
RM
3,058,098.90 30, 580,989.00
i This government did not accept the provisions of the moratorium, and did not pay the amount due
during the fiscal year 1932 amounting to $250,000.
2 Expressed in reichsmarks.
12
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
Payments postponed
Austria.—The
payments due from the Government of Austria on.
January 1, 1933, 1934, and 1935, aggregating $1,207,742 under the
funding agreement of M a y 8, 1930, and $69,534.46 under the moratorium agreement of September 14, 1932, were postponed at the
request of the loan trustees, as provided for in the funding and moratorium agreements. t In further accord with the agreements, in
exchange for the unpaid annuities during the fiscal year 1937 there
were received from the Austrian Government bonds aggregating
$3,489,482.75; evidencing annuities payable by that Government
annually from January 1, 1944, to January 1, 1968.
Finland.—Under
joint resolutions approved June 15, 1940 (Public
Res. 84, 76th Cong.) and June 12, 1941 (Public Law 110, 77th Cong.),
the Republic of Finland, at its option, could postpone the payment
of amounts payable to the United States during the period from
January 1, 1940, to December 31, 1942, inclusive. In such event,
the Secretary of the Treasury was authorized to make agreements
with Finland for the payment of the postponed amounts. Pursuant
to the first of these resolutions, Finland postponed the payment of
the sum of $235,298 which was payable on December 15, 1940.
Under the terms of an agreement dated M a y 1, 1941, Finland is
required to pay annually $27,390.12, beginning on June 15, 1941,
each payment to be made in two installments. In accordance with
the second of the joint resolutions, Finland postponed payment of
a total of $845,287.24, which had been due over a period from June
15, 1941, to December 15, 1942. The amounts postponed under this
resolution are payable under the terms ol an agreement dated October
14, 1943, by which Finland is required to pay 20 annuities of $42,264.36
each, in semiannual installments, beginning January 1, 1945.
Present status of Allied debts.—Tables 4 and 8 show the status as of
July 1, 1947, of the indebtedness of Allied governments (plus the
Austrian debt referred to Germany) to the United States and total
payments received as of July 1, 1947.
Table 9 shows total receipts by fiscal years on account of these debts
from the time of funding to July 1, 1947.
T A B L E 8.—Total payments received on account of World War indebtedness
governments to the United States as,of July 1, 1947
Country
Belgium
Cuba
Czechoslovakia
Estonia
Finland
France
Germany (Austrian indebtGreat Britain.
Greece
Hungary
Italy
Latvia
Liberia
Lithuania
Nicaragua
Poland
Total
payments
received
Principal
$52,191,273.24 $17,100,000.00
12,286,751.58
20,134,092. 261 19,829,914.17
1,248,432.07
7,854,361.71 1,375,500.41
486,075,891.00 161,350,000.00
Interest
O n d e b t s prior t o funding i
Principal
Interest
$14,490,000.00 $2,057,630.37 $18, 543,642.87
10,000,000.00 2,286,751.58
304,178.09
1,441.88
1,246,990.19|
309,315.27
6,169,546.03
38,650,000.00 64,689, 588.18 221,386,302.82
862, 668.00
862,668.00
, 024,848, 817.09 232,000,000.00 1, 232, 770, 518.42 202,181,641. 56 |357,896, 657.11
1,983,980.00
981,000.00
2,922.67 1,159, 153.34
4,127, 056.01
753.04
482,171. 22,
556, 919. 76
73,995.50,
5,766,708.26
100,829, 8 8 0 1 6 37,100,000.00
364,319.28 57,598, 852.62
621,520.12
9,200.00
761, 549.07
130, 828.95
~~26~666.~66
36, 471.56
10, 474.56
234,783.00
1,001,626.61
1, 237, 956.58i
1, 546.97
l4l,~950.~36
168, 575.84
26, 625.48
297.551
1,287,297.37
22, 646,
19,310, 775.90
2,048, 224.28
See footnotes at e n d of t a b l e , p . 13.
On funded debts
of foreign
FOREIGN ASSETS AND
LIABILITIES OF T H E U N I T E D STATES
T A B L E 8.— Total payments received on account of World War indebtedness of
governments to the United States as of July 1,
194-7—Continued
Total
payments
received
Country
Rumania3Russia
Yugoslavia
O n funded d e b t s
Principal
foreign
O n d e b t s prior t o funding i
Interest
$4, 791,007. 22 $2,700,000.00
8,750,311.88
2,588,771.69 1.225,000.00
._
13
Principal
$29,061.46 $1, 798,632.02
727, 712. 55
Interest
$263,313. 74
8,750,311.88
636,059.14
2, 751,997,084.27 476,129,358.45 1,322, 522,898. 21 281,990,396.99 671,354,430. 62
Total
1
Includes cash received upon execution of debt-funding agreements amounting to $4,768,606.14, of which
amount
$600,639.83 was applied on principal and $4,167,966.31 on interest.
2
The German Government was notified that the Government of the United States would look to the
German Government for the discharge of the indebtedness of the Government of Austria to the Government of the United States.
3 Excludes token payment of $100,000 by Rumanian Government on June 15,1940.
T A B L E 9.—Summary of receipts by fiscal years
Fiscal year e n d i n g J u n e 30—
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
Principal
Interest
$31,567,518.98
396, 755.15
66, 709. 53
69,897.91
72,093.83
74,297. 58
76,509.49
79,729.87
..
_.
_.
.
Total
_
Total
6,844.86
91,353.05
99,272.63
107,198.84
110,432.86
$67,190,207.22
20,033, 594.10
601,114.48
i 477,414. 59518,492.67
513, 773.24
423,943.33
334,017.45
96,996.16
19,656.32
162,100.70
291,007.07
304,227.17
317,335.64
313,899.12
$98, 757, 726.20
20,430,349.25
667,824.01
547,312. 50
590, 586.50
588,070.82
500,452.82
2
413,747.32
96,996.16
19,656. 32
168,945. 56
382,360.12
403,499. 80
424, 534.48
424,331.98
32,818,614.58
91, 597,779.26
124,416,393. 84
(»)3
()
1
2
Includes $1,433.01 on unfunded indebtedness.
Does not include token payment of $100,000 by Rumanian Government on June 15, 1940.
3 Payments due Dec. 15, 1940, to Dec. 15, 1942, inclusive, postponed under joint resolutions approved
June 15,1940, and June 12,1941.
THE
GERMAN
DEBT—WORLD
WAR,
1917-21
The Government of Germany is indebted to the United States on
account of the costs of the American Army of Occupation and the
awards of the Mixed Claims Commission, United States and Germany.
Army costs.—The gross amount originally due the United States
on account of Army costs was 292.7 million dollars. Various German
credit items reduced this sum to 247.9 million dollars. Payments
were received on account of this debt under several successive plans:
(a) The Wadsworth agreement of M a y 25, 1923, provided for the
payment of American Army costs in 12 yearly installments beginning
on December 31, 1923. About 14.7 million dollars was received
from Germany under this plan before it was superseded by the Finance
Ministers' agreement of January 14, 1925, which arranged the distribution of Dawes plan annuities.
(b) By the terms of the Finance Ministers' agreement of January
14, 1925, the United States was to receive the sum of 55,000,000 gold
marks per year on account of Army costs (13.1 millon dollars at 1925
exchange value of 23.8 cents per mark). The total amount actually
received under this arrangement was 39.2 million dollars.
14
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
(c) I n 1929 the Dawes plan was superseded by the Young plan,
which allocated to the United States an average annuity of 66,100,000
reichsmarks a year for 37 years and a flat annuity of 40,800,000
reichsmarks a year for a period of 15 years thereafter. Of the total
allocated to the United States, an average annuity of 25,300,000
reichsmarks a year (about $6,000,000 at 1930 exchange value of 23.8
cents per mark) for 37 years was fixed by the United States as the
amount applicable to the costs of the American Army of Occupation.
At the date (September 1, 1929) on which the Young plan became
effective, the amount due the United States on account of Army
costs had been reduced to 193.9 million dollars. A further reduction
of 29.3 million dollars was effected by United States agreement to
cancel 10 percent of the original sum, in accord with similar cancellations by France and Great Britain, leaving a balance of 164.7 million
dollars.
(d) The funding agreement of June 23, 1930, between the United
States and Germany required the payment of the sums set by the
Young plan on account of Army costs. (The total of the payments
called for, over the 37-year period, at the 1930 par of exchange,
amounts to about 249.7 million dollars. The difference between this
figure and the balance of 164.7 million dollars mentioned above represents, in part, compensation to the United States for the extension of
the repayment period beyond that contemplated in the January 1925
agreement.)
The funding agreement also provided for delivery by the German
Government to the United States of bonds in the principal amount
of 997.5 million marks, as evidence of its indebtedness (see table 10).
The payment of two of these, in the principal amount of 12.65 million
marks each, due on September 30, 1931, and March 31, 1932, was
postponed under the moratorium arrangements of 1932. Subsequent
principal payments on account of Army costs, interest payments, and
annuities under the moratorium agreement have not been paid.
German indebtedness as of July 1, 1947, under the funding agreement of 1930 and the moratorium agreement of 1932, as well as total
payments received on account of Army costs under these agreements,
are shown in table 10.
Mixed claims
A Mixed Claims Commission was created by agreement of August
10, 1922, between the United States and Germany, with authority to
determine and adjudicate the amount of all claims of the United
States and its nationals against Germany based on the terms of existing treaties. This Commission entered and certified to the Treasury
for payment awards in favor of American nationals in the approximate amount of $139,300,000. Under the provisions of the Finance
Ministers' agreement above-mentioned, the United States was to receive out of the Dawes annuities for account of these awards 2% percent
of all receipts from Germany available for reparation payments
(after deducting prior charges), provided that not more than 45,000,000
gold marks could be received in any one year. As indicated above,
the Dawes plan was superseded in 1929 by the Young plan. Of
the 66,100,000 reichsmarks allocated to the United States under the
Young plan, a flat annuity of 40,800,000 reichsmarks for 52 years was
fixed by the United States as the amount applicable to mixed claims
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
15
awards. The funding agreement entered into on June 23, 1930, between Germany and the United States also provides for the payment
of this sum each year on account of these claims, in the same manner
as it provides for payments on account of Army costs.
Under this agreement the United States also received bonds of
the German Government as evidence of its indebtedness, including
interest on all awards to the date of payment, in the principal amount
of 2,121,600,000 reichsmarks ($505,365,120 on basis of par of exchange in 1930), of which it is estimated that 1,496,600,000 reichsmarks ($356,490,120) represent p r i v a t e , awards and 625,000,000
reichsmarks ($148,875,000) represent awards entered in favor of
the United States Government. Payments due from Germany on
account of these bonds are to be made in semiannual installments
of 20,400,000 reichsmarks each for a period of 52 years beginning
March 31, 1930. The principal payments aggregating 102,000,000
reichsmarks due on account of mixed-claims awards from September
30,^ 1931, to September 30, 1933, inclusive, which were postponed
to *March 31, 1934, and principal and interest payments due from
March 31, 1934, have not been paid by the German Government.
T A B L E 10.—Indebtedness of Germany under the funding
of June 28, 1930, and May 26,
Indebtedness
as f u n d e d
Class
A r m y costs 3
M i x e d claims 3
Total 3 . . .
and moratorium
1932
Total indebtedness, J u l y 1,
1947 1
Principal
agreements
I n t e r e s t accrued
and unpaid
_
__
_.
1,048,100,000
2,121, 600, 000
1,084,990, 551. 50
2, 287,350, 000. 00
997, 500,000
2,040,000,000
2 87,490, 551. 50
247,350,000. 00
__
_.
3,169, 700,000
3,372,340, 551. 50
3,037, 500,000
334,840, 551. 50
P a y m e n t s received
Total payments
received a s of
J u l y 1, 1947
A r m y costs (reichsmarks)
M i x e d claims (reichsmarks)
T o t a l (reichsmarks)
A m o u n t s received (in dollars)
.
51,456,406. 25
87,210,000. 00
P a y m e n t s of
principal
50,600,000.00
81,600,000.00
P a y m e n t s of
interest
856,406. 25
5,610,000. 00
138,666, 406. 25
132, 200, 000. 00
6,466,406.25
$33, 587,809. 69
$31, 539, 595.84
$2,048, 213.85
i Excludes amounts on account of Austrian indebtedness.
Includes interest accrued under unpaid moratorium agreement annuities.
Amounts expressed in reichsmarks.
2
3
Summary
Total payments by Germany to the United States on account of
both Army costs and mixed claims, under the Dawes plan, amounted
to 300.4 million dollars, and under the Young plan amounted to 77.0
million dollars.
Payments on account of both Army costs and mixed claims, u p to
July 31, 1947, under the funding agreement of June 23, 1930, and
under the moratorium agreement of M a y 26, 1932, together with the
status, as of July 31, 1947, of German indebtedness to the United
States under these agreements, are summarized in table 4.
Germany (Austrian indebtedness).—In view of the incorporation of
Austria in the German Reich in 1938, t h e German Government was
16
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
notified that the Government of the United States will look to it for
the discharge of the relief indebtedness of the Government of Austria
to the United States under the debt agreement of M a y 8, 1930, and
the moratorium agreement of September 14, 1932. Figures and other
information relating to this indebtedness are included in the preceding
pages.
FOREIGN CREDITS: 1934 TO JULY 1, 1947
D a t a regarding loans, credits, and advances to foreign countries by
the United States Government since the beginning of 1934 are presented in tables 11 to 15, inclusive. Table 11 supplies information
relative primarily to activity in the postwar period with respect to
loans and credits. Tables 12, 13, and 14 relate to data regarding
loans, property, credits, and advances, respectively, cumulated from
July 1, 1940. A detailed explanatory note follows the tables.
Information is also supplied relating to commitments to extend
aid to foreign countries, the relation of the International Monetary
Fund and Bank to the problem of the foreign needs for dollar financing,
and United States Stabilization Fund agreements.
T A B L E 1 1 . — S t a t u s of foreign
credits
of the U. S. Government—by
agency,
June 30, 1947, and activity
As of June 30, 1945
Total
Outstanding
Unutilized
commitments
by type of credit, and
since July 1, 1945
by country;
as of June
Activity in postwar period, July 1, 1945, through
June 30, 1947
Change in
net commitments
Utilizations
Net change
in unutilized
commitments
30, 1945;
and as of
As of June 30, 1947
O
H
M
Repayments
Total
Unutilized
Outstanding commitments
o
>
w
Total»_
$1,110,662,768 $556, 516,960 $554,145,808 $8,763,767,759 $6,190,505,908 $2,573,261,851 $266,095, 847
>, 608, 334. 680 $6,
480,927,021 $3,127, 407, 659
By agency:
158, 547, 995
158, 547, 995
33, 599, 549 124, 948, 446 124, 948,446
Agriculture Department
Export-Import Bank
549, 748, 480 213, 665, 551 336, 082, 929 2, 245, 918,803 1, 643, 365, 918 602, 552, 885 99, 338,480 2, 696, 328, 803 1,757, 692, f "938," 635," 814
171, 597, 373
30, 224,173
672, 600
170, 924, 773 140, 700,600 J 30,224,173
141, 373, 200
Maritime Commission
:...
Reconstruction Finance Corpora35,000, 000
311,887,470 276,887,470 35,000, 000
70,000, 0001
87, 404, 916 294, 482, 554 '259,482,554
70,000,000
tion, proper
1,715,447
18,118, 301 18,118, 301
16,402,854
1, 715, 4471
Office Defense Supplies
109,154
1, 964, 773
1, 964, 773
109,154
Office Rubber Reserve
1, 855, 619
3, 591,122
10, 931, 0601
19, 408, 582
12, 068, 644
U. S. Commercial Company....
2, 358, 790
8, 477, 522 9, 698, 728
2,358,790
29, 9751
44, 065
29, 975
State Department proper
115, 727
101, 637
( 44,065 """"§," 477," 522
115. 727
Office Foreign Liquidation
1,153,459, 0671 844, 500,193 308, 958,874 3, 869, 045 1,149,590,0221 840, 631,148 308, 958, 874
Commission
3, 750,000, 000 2, 050,000, 000 1, 700,000, 000
Treasury Department proper
3, 750, 000, 000 2,050,000,000 1, 700,000, 000
Lend-Lease fiscal operations
228, 434,000 45, 371,121 183, 062, 879| 1,192, 841,191 1, 269, 792, 794 -76, 951, 603 13,152, 419| 1, 408,122, 77211, 302,011, 496 106,111,276
By type of credit:
882, 228, 768 511,145,8391 371,082,929, 6,066, 020, 242 3, 763, 467, 35712,302,552,885 204,166, 933 6, 744, 082, 0774,070, 446, 263 2, 673, 635,814
Loans
228, 434,000 45,371,121 183, 062, 879 2, 519, 862,404 2, 257, 630, 960 262, 231,444 19, 549, 683 2,728,746,721 2, 283,452, 398 445, 294, 323
Property credits.._•:
1,155,423, 840 846, 464, 966 308, 958, 874 5, 724, 664 1,149, 699,176 840, 740, 302 308, 958, 874
Surplus property
Lend-lease
J*
228,434, 000 45, 371,121 183,062, 879 1,192,841,191 1, 269, 792, 794 76, 951, 603 13,152,4191 1,408,122, 772 1,302, 011,496
106,111,276
672, 600
141, 373, 2001
171, 597, 373
30, 224,173
170, 924, 773 140, 700, 600
Merchant ships. 2
30, 224,173
169,407,591
177,885,113
8, 477, 522 42, 379, 231
135, 505, 882 127, 028, 360
Commodity programs
8,477, 522
42, 379, 2311 126, 755, 882 126, 755, 882
169,135,1131
169,135,113
Cotton.
33, 599, 549 124, 948,446
158, 547, 995
124, 948, 4461
158, 547, 995
Material
8, 779, 682
10, 587,118
1,807, 436]
10, 587*118
1, 807,436
Operating expenses
272,478
272, 478|
8,750,000
8,477. 522
8, 750,000i
Raw material
8,477,
522
By country:
202, 694, 2231 -21, 942,806 69, 957, 654 604,499,1781
315, 605,276
288,893, 902
American Republics
493, 705,415 182,868, 707 310,836, 708 180, 751,4171
210, 000
210, 000
210,000
210,000
Argentina
3,022,165
8, 587,165
- 5 , 565,000) 1,052,722
9, 597, 816
9, 935, 000
19, 532, 816
17, 563, 373 2,063, 373 15, 500,000
Bolivia
79,006, 610
56, 670,205
22, 336,405
9,157,853
50, 738, 084
154, 728, 506 103, 990,422
84,879, 749 56,478,070 28,401,679
Brazil
47.047, 300
12, 759,006
34,288,294
8,236,012)
47, 538,294
26,891,477 13,641,477 13,250.000
65, 702, 765
18,164,471
Chile.
--.4,252,1161
12, 649, 405] - 8 , 397,289| 3,414, 721
15,051,567
33,839, 5871 10, 390, 731 23, 448,8561
34, 676, 9821
19, 625, 415'
Colombia
For important qualifications affecting this table, see the explanatory note to this appendix.
•Footnotes at end of table, p. 19.
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TABLE 11.—Status of foreign credits of the U. S. Government—by agency, by type of credit, and by country; as of June 30, 1945; and as of
June 30, 1947, and activity since July 1, 1945—Continued
As of June 30,1945
Total
Outstanding
Activity in postwar period, July 1,1945, through
June 30,1947
Unutilized Change in
commit- net commitments
ments
Net change
unutilized
Utilizations in commitments
00
O
As of June 30,1947
G
Repayments
Total
Unutilized
Outstanding commitments
>
Ul
By country—Continued
American Republics—Continued
Costa Rica
Cuba...
Dominican Republic
Ecuador
.._
Haiti..
Honduras.
Mexico.
Nicaragua
Panama.
Paraguay
Peru
Salvador
._
Uruguay
Venezuela.
Unclassified.
Austria
w.
Bahrein
Belgium
_
_
British Commonwealth
United Kingdom
Australia..
British Honduras
Burma
_
Canada
Newfoundland and Labrador..
New Zealand
Union of South Africa
China
-.
Czechoslovakia
Denmark
Egypt
Ethiopia
Finland
France
._
Germany
_
Greece
CO
$7,000,000 $6, 900,000
$100,000
20, 518.000 2, 718, 000 17,800,000
2,636,834
2, 636,834
15,277,682 4.973,392 10, 304,290
8,972.6501 8, 512, 650
460,000
760,000
2, 565,000
1,805, 000
60.464,654 11,151,205 49,313,449
3,118, 500 3.118, 500
-$15, 000
2,114,!
-100,000!
- 1 , 700, 0001
82, 761,401
$85,000
10,490, 000
-$100,000
-10, 490,000
1,838,650
360, 000
105, 000
52, 373,227
275, 710
-460,000
-1,805,000
30, 388,174
121,000
5, 662,800 4,867,800
795, 000
25,000, 000
25,000, 000
870, 292
826, 000
1, 696, 292
7,077,277 24, 993, 026
32, 070,303
3, 080,167
3,080,167
142. 468, 347 43, 628,9391 98,839, 408
-19,637,113
-250, 000
-17,008,837
600, 000|
327, 415
10, 750, 0001
795,000
5, 289, 393
576, 0001
5, 227. 082
600, 000
34,289,090
1, 304, 715
121,000
-795,000
-24, 926, 506
-826, 000
-22, 235. 919
-
$6,802,975
$182,025
$6,802,975
12,221,125|
986, 875
19, 531,125
$7,310,000
1,630,053
1,006,781
1,630,053
6, 393. 6591 ~~~I6,"58o,"o6o
418. 383
16, 973, 659
7,240,000
1, 632, 650|
7,240,000
577,250
287, 750|
577,250
54,200,278
9.324,154
133, 901, 901
2,289, 500
2,289, 500
829, 000!
79, 701,623
121,000
4, 901,450
l2i,"oo6
761, 350
4, 901,450
5,261,155
28, 238
5,334, 649
73," 494
1, 257, 3721
188, 9201
1. 257, 372
12, 085, 205
219,154
14. 842, 312
2, 028. 500 „ 2,028,500
1, 651, 667
2. 757,107
47,338,630
30, 579, 399 112, 216,363
1, 304, 715 ""64," 877," 733
10, 750,000
209, 205
15,936, 406
209,205
9, 445, 285
146,249,848
2, 750,162
146, 249,848
77, 725,915 4,661,548,995] 2. 917, 666, 956 I,"743,"882,~039
77, 404, 916 4, 629, 482, 554 2, 894, 482. 554 1, 735, 000, 000
7,000, 000
7, 000, 000
443,901
443,901
5, 000, 000
5,000, 000 j
10, 700, 000
5, 000, 000
" 5, 700,000
284, 412
1, 422, 540
1, 422, 5401
5, 500, 000
4,317, 961
1,182, 039
2, 000, 000
2,000, 000
241,960,011
175,903,399
36,957,867
66,056,612
71,996,489
29, 585,066
3,511
42,411,423
-33, 961, 675
9, 445, 285
16,145,611 16,145,611
55, 000, 000
55, 000,000
94,000, 000
149, 000. 0001 -55, 000, 000
314, 061, 413 279, 061, 413 35, 000, 000|4, 425, 213, 4972, 716, 331, 458 1,708,882.039
306.887, 4701 271, 887, 470 35. 000, 000 4, 400, 000, 0002, 700, 000, 000 1, 700, 000,000
7, 000, 000
7, 000, 0001
466, 991
466,991
13, 497
13, 497
5,000, 000
5, 000, 000
5, 000,000 5, 000,000
5, 700, 000
5, 700, 000
1, 706, 952 1, 706, 9521
4, 317,961
5, 500,000
1,182,039
2, 000, 000
2, 000,0001
81,016,142 49,100,951 31,915,191
163,760,315
34,141,421
197,901, 736
29,688,577
72,000,000
42, 411,423
15,086,000
15,086,000
30,000,000
14,914,000
30,000,000
14,914,000
9,337, 691
8,924.360
9,337,691
413,331
8,924,360
646,762
250,000
250,000
646,762 ""~~3,"353,"238
4,000,000
3,353, 238
250,000
4,000,000
32,658,575! 23,869,905
71,358,050
8,788,670
95,227,955
97, 720, 591
26,362, 541
130,379,166
35,151,211
1,907,162,936 ,698,061,884
209,101,052 14,270,500 1,892,892,436 1,683, 791,384
209,101,052
36, 277, 730
36,277,730
44, 755, 252
8,477, 522
44, 755,252
8,477, 522
64, 774, 748
54,650,148
121,298,000
66, 523, 252
66,523,252
124,600' 121,173,400
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Iran.
__
__
Iraq
Italy
Japan
Korea
_
Lebanon
Liberia
_
N e t h e r l a n d s a n d possessions:
Netherlands
...
Netherlands Indies
_
Norway..
_
_
Philippines
Poland
_
P o r t u g u e s e possession: Angola
Saudi A r a b i a . . .
Thailand
Turkey
U . S. S. R
Yemen
Unclassified a r e a s . .
Europe—Special cotton c r e d i t *
Special exporter-importer credits 3 . . .
Various
fioiinjxies
,
12,500,000
1,801,259
65,000,000
65,000,000
10,523,388
3,300, 940
300,000
10,698, 741
10, 523,388
3,300,940
65,000
235,000
26,201, 284
53,174
26,148,110
26,201, 284
53,174
26,148,110
37,000,000
38,068,330
889,350
331, 728,227
148,129,861
25.000,000
5,000,000
6,775,000
10,389, 503
12,999,341
889,350
223, 760, 571
140, 515,350
3, 266,816
2,036, 649
8,848,699
218,393,142
200,000,000
69,462.998
75,983,384
90,000,000
-235,000
27,000.000
10,000,000
40,842,800
241, 560,000
1,000,000
2, 278, 547
41,000,000
256,153,253
69,066,349
10,442, 551
75, 983,384
30,137,002
- 4 3 , 721,453
5,000,000
8, 671, 993
5,009, 915
6, 373, 702
196,191, 602
-18,452,275
-18,452,275
36,900,000
34,316,159
507, 508
327,339,308
105, 750,630
25,000,000
4, 771,167
19,275,000
10, 289, 503
9, 247,170
507,508
219,371,652
98,136,119
3,266,816
1,807,816
10,649,958
59,862, 998
-235,000
18,328,007
4,990,085
34,469,098
680,097
45,368,398
1,000,000
20, 730,822 - 1 8 , 520,170
41,000,000
281,159,907
199,364,407
79, 778.386
65,000,000
93,050,940
60,224
27,000,000
10,000,000
40,162, 703
241, 560,000
1,000,000
47,000,001
41,000,000
253,920,018
68,430,756
10, 234, 551
65,000,000
33,187, 942
60,224
8,671,993
5,009,915
5,693,605
196,191,602
-25,269,178 -18,520,170
5,000,000
1,000,001
5,000,000
121,069
26,610,497
25,068,989
107,967,656
7,614, 511
21, 733,184
2,963,351
-2,073,699
- 3 7 , 760, 111
130,933,651
59,020,447
100,000
3, 752,171
381,842
4,388,919
42,379, 231
228,833
2, 233, 235
635,593
208,000
10, 983,384
250,000
4,776
121,069
26,610,497
25,068,989
107,967,656
7,614, 511
21, 733,184
2,963,351
8,625,042
27, 239,889
130,933,651
69,543,835
59,862,998
18,328,007
4,990,085
34,469,098
45,368,398
1,000,000
46,878,932
41,000,000
878,932
5,000,000
3
O
>
GO
>
E.
1
Exclusive of cash advances on procurement programs, which are predominantly short-term.
Credits resulting from supplying commodities, largely raw cotton, by the U. S. Government to Germany and Japan.
Negativefiguresfor special exporter-importer credits result from reclassification of items principally assignable to unclassified American Republics.
Source: Clearing Office for Foreign Transactions, Department of Commerce.
8*
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a
TABLE 12.—Loans to foreign governments and entities—by country, by agency, by status: July 1, 1940, through June 30, 1941
Utilizations
Commitments
Gross
Total -
Cancellations and
expirations
Net
Unutilized
3,650,930,749 577,375,015 3,073,555,734
938,635,814 2,134,919,920
500,000,000
23,600,816
2,620,196
248, ()32
3,750,000,000
American Republics
1,0*35,411,260 409,222,418
676,188,842
245,071,874
1,082,100,160 408,758,735
924,627
463,683
2,138,441
248,032
673,341,425
460,944
2,138,441
248,032
93,690,000
23,080,643
93,090,000
48,250
20,678,004
300,000
2,102,639
Argentina (EIB)
Bolivia2
._.
.-.
.
.-.*-.
EIB—_
ODS
USCC
Brazil34
EIB
USCC
Chile ( E I B ) .
Colombia ( E I B )
Costa Rica ( E I B ) . .
Cuba (EIB).:
Dominican Republic (EIB)
Ecuador..
EIB
ODS
USCC
Direct
Collections
B y agent
banksi
Principal
Outstanding
Interest
a n d commissions
$7,927,399,793 $581,367,312 $7,346,032,481 $2,673,635,814 $4,672,396,667 $4,353,403,188 $318,993,479 $601,950,404 $115, 586, 548 $4.070, 446, 263
..
Export-Import Bank (EIB)
Reconstruction Finance:
Corporation: Proper ( R F C )
Office Defense Supplies ( O D S )
U . S. C o m m e r c i a l C o m p a n y ( U S C C )
S t a t e D e p a r t m e n t (State)
,
T r e a s u r y D e p a r t m e n t (Treas.)
EIB
ODS _
USCC.__
State
Total
£s|
..
1,815,926,441 318,993,479 377,226,931
465,000,000
35,000,000
500,000,000
465.000,'000
19, 608, 519
19,608, 519
19, 608, 519
3,992,297
2, 620,196
2,620,196
2, 620,196
248,032
248,032
248,032
3,750,000,000 1,700,000,000 2,050,000,000 2,050,000,000
66, 216,362 1,757,692,989
205, 517,446
17, 893, C72
1,108,988
203,967
48,343,238
1,010, 299
16;649
431,116,968
247,234,087 183,882,881 183,039,948
27,186,149
248,077,020
245,071,874
428,269, 551
460,944
2,138,441
248,032
244,386,670 183,882,881 181,387,605
460, 944
377,242
2,138,441
1,071,134
248,032
203, 967
27,168,722
17,427
246,881,946
83,7Q2
1,067,307
44,065
600,000
23,032,393
210,000
9,935,000
390,000
13,097,393
390,000
13,097,393
390,000
3,499, 577
28,376
201,116
9, 597,816
48,250
20, 629, 754
300,000
2,102,639
9,935,000
10,694,754
300,000
2,102,639
10,694,754
300,000
2,102,639
2,129,754
300,000
1,069,823
201,116
8,565,000
270,463,827
86,663,717
183,800,110
47,615, 705
136,184, 405
70, 767,328
65,417,077
46, 516, 503
7, 484, 890
89, 667, 902
270, 433,215
30,612
86,663,717
183,769,498
30,612
47,615,705
136,153,793
30,612
70,736,716
30,612
65,417,077
46, 516, 503
7,484, 890
89, 637,290
30, 612
89,756,008
50,243,456
8,723,000
90,366,535
3,300,000
18,194,817
6,991,378
907,154
1,463,393
26,888,062
16,068
559,513
82,764,630
49,336,302
7, 259,607
63,478,473
3,283,932
17,635,304
47, 538,294
14,864,714
35,226,336
34,471, 588
7,259,607
56,168,473
3,283,932
7,405,304
' 7,525,228
10,947,974
7, 035,878
30,130,973
3,000,000
7,405,304
27, 701,108
23,523,614
223,729
26,037,500
283,932
17,061,865
15,459,320
456,632
43,947,348
1, 653,879
1,011,645
2,021,825
2,462,611
1,178,482
1,044,467
447,913
760,348
18,164,471
19,012, 268
6,802,975
12,221,125
1,630,053
6,393,659
17,565,000
624,627
5,190
95,830
463,683
17,469,170
160,944
5,190
10, 230,000
7,239,170
160,944
5,190
7,239,170
160, 944
5,190
933,092
77,242
1,311
742,921
17,427
6,306,078
83, 702
3,879
,
7,310,000
10, 230,000
.
259, 482, 554
1, 715, 447
1,511,208
44,065
2,050,000,000
1,032,816
Haiti (EIB)
_
Honduras (EIB)
Mexico
_
EIB
State
Nicaragua (EIB)
Panama (EIB)
Paraguay (EIB)
Peru (EIB)
Salvador (EIB).
Uruguay 3
_.
EIB
State.
__
Venezuela (EIB)
Unclassified (EIB)
Austria (-EIB)
Bahrein (ODS)
Belgium tEIB)
British Commonwealth _ _
2,670,000
1,700,000
5, 993,309
10,680,000
1,000,000
148, 294,006
154,069,446
217, 869
5,993, 309
148,076,137
217,869
5,235,000
585,000
4, 500,000 2,012,296
7,800,000
1,600,000
37,450,000 37,000,000
1,726,000
250,000
43,615,163 29, 211,125
4,650,000
2,487, 704
6,200,000
450,000
1,476,000
14,404.038
43. 585,000
30,163
14,373,875
30.163
79, 701, 623
73,494
2, 593, 044
2, 593,044
10,680,000
1,000,000
68, 592,383
.10,680,000
48,714,046
.,000,000
19,878,337
3,440,000
422,750
14,392,105
1,985,050
50,320
2,468,919
7, 240,000
577,250
54, 200, 278
68, 374,514
217, 869
48,496,177
217,869
19,878, 337 14,205,117
186,988
2,468,919
54,169,397
30, 881
4,650,000
2, 487, 704
6, 200.000
376, 506
1,476,000
11,810, 994
11, 780,831
30.163
4,000,000
2,487, 704
6,000,000
376,506
1,476,000
109,038
78,875
30,163
650,009
200,000
11, 701, 956
11, 701, 956
2, 360,500
2,487,704
1,298, 550
28,238
218,628
227, 726
701,857
207, 791
926,380
7,231
167,285
702,258
210, 747
16,979
702,258
2, 289, 500
4,901,450
348, 268
1,257,372
11,583,268
11, 570, 084
13,184
_
4,175.000.000
4,175, 000,000 1. 735, 000,000 2,440, 000, 000 2,440, 000,000
195, 517,446 47, 510,143 2,244,482, 554
425,000,000
3,750.000,000
35, 000, 000 390. 000. 000 390. 000, 000
425, 000, 000
3. 750, 000, 0001, 700, 000. 0002, 050, 000. 0002,050, 000,000
195, 517,446 47, 510,143
1,400, 000 1,400, 000
481, 755
69, 965. 000 33, 580. 000
EIB.
64, 965, 000
5, 000. 000
RFC
India (EIB)
_
16, 000.000
Jamaica (EIB)
25,000
Newfoundland and Labrador (O.DS)
5,628. 614
China (EIB)
221. 737, 080
Czechoslovakia (EIB)..
1
23, 741, 917
Denmark (EIB)
30, 000, 000
Ethiopia (EIB)
3, 500, 000
Finland (EIB)
114, 500, 000
France (EIB).
1, 200,000, 000
Germany (EIB).
3,011,310
Greece (EIB)
25,000,000
Hungary * (EIB).
9, 375,000
Iceland (EIB)
1,000.000
Iran (EIB)
1,130, 000
Iraq (EIB).
100,000
See footnotes at end of table, p. 22.
29.211,125
79, 701,623
2,028, 500
581,236
5, 744,078
42, 551,000 36, 806, 922
5, 744, 078
3,045, 900 • 2,698.178
3, 715, 578
160, 865
3, 757, 794
124. 378,496 74, 766,231
20, 044,815
4, 567,450 24,451,400
24,612,265
49, 612,265
25. 000, 000
750,000
750, 000
750, 000
209, 205
820,865
16,838, 370
17.047. 575
17,047, 575
17,047, 575
17.047, 575
97,249, 848
100, 000,000
100, 000, 000 100. 000, 000
2, 750,152 2, 537,483
100, 000, 000
4,268,500,369 54, 533.614 4. 213, 966, 7551, 740, 700,000 2, 473,266, 7552,473,266, 755
221, 917, 760 49,482,190 2,251, 348, 995
United Kingdom 5
RFC
Treas
_
Australia (EIB)
British Honduras
(USCC)
Canada 6
13,350,000
2, 700,000
154,287,315
33. 580, 000
16, 000. 000
25, 000
3, 528, 614
4, 526,800
947,473
10, 000, 000
7, 596,168
3,006, 751
2, 375,000
410,000
667. 571
100,000
194,482, 554
2, 050, 000, 000
o
w
t—i
O
>
m
H
>
>
3
H
w
481, 755
36, 385, 000
31, 385. 000
5. 000, 000
5, 700. 000
5, 700. 000
2,100.000
38, 376. 360
217,210,280
198, 971
22. 794, 444
20, 000, 000
5, 000, 000
3, 500, 000
2, 700, 000
22, 528, 795
106, 903, 832
1, 200,000, 000 202, 000,000
4 559
25.000i 000
20,100, 000
7,000.000
7, 000,000
590,000
462,429
481. 755
30,685. 000
481, 755
30, 685, 000
37,854
25, 685,000
16. 649
1. 783, 391
443. 901
5. 000, 000
25, 685, 000
5, 000, 000
25, 685. 000
5. 000,000
25, 685, 000
1,129, 474
653, 917
5. 000, 000
2.100, 000
178,833, 920
22. 595,473
15, 000,000
800, 000
84, 375, 037
998,000, 000
4,559
4,900,000
590,000
462,429
"*
2,100,000
677,460
172. 007
146, 373.459 32,460, 461 106. 355. 694 18, 633. 759
4.380
797, 955
56, 009 22, 539. 464
15,000, 000
222, 949
500,000
300, 000
500, 000
12, 724
79, 403, 832 4, 971,205 2, 341, 425 5, 359.462
998, 000, 000
13, 930. 500 6, 544, 047
40
4,559
4,559
46,137
4, 900,000
222, 399
590,000
240,030
590,000
462,429
32, 716
13, 928
1,422, 540
72,478.226
21, 797, 518
15, 000, 000
300, 000
82, 033, 612
984, 069, 500
4, 900,000
w
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d
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W
00
fcO
TABLE 12.—Loans to foreign governments and entities—by country, by agency, by status: July 1, 1940, through June SO, 1947—Continued
Utilizations
Commitments
Gross
Cancellations and
expirations
Net
Unutilized
Total
Direct
to
Collections
By agent
banks 1
Principal
Interest
and commissions
Outstanding
i
M
O
Italy (EIB)
Latvia (EIB)
.
$146,917,386
1,903,000
309,878,142
. _..
Netherlands 8 (EIB)
Netherlands Indies (EIB)
Norway (EIB)
Philippines
$3, 541,121
1,892,218
4,485,000
209,878,142
4,485,000
100,000,000
60. 750,000 10,523.388
95,600,000 25,600,000
$143,376,265 $105, 517,379
10, 782
108,161,812
305.393,142
205,393,142
100,000,000
50,226,612
70,000,000
25, 600,000
70,000,000
25,600,000
52,906,743
5,800,000
9,359,331
4,464,134
43, 547,412
1,335,866
5,500,000
300,000
4, 229,134
235,000
1,270,866
65,000
50,000
5,000,000
1,391,798
10,889,000
10,267,860
517,667
25,000,000
13,681,074
4, 111, 000
28,060,000
_
50,000
30,000,000
15,072,872
15.000,000
38,327,860
517,667
49,871,612
Europe, special cotton credit
Special exporter-importer credits
Various conn trips
41,000,000
3,871,612
5,000,000
EIB
RFC
_ .
Poland 3 (EIB)
Portugal and possession
_. .
Portugal (EIB)
Angola 3 (EIB)
Rumania (EIB)
Saudi Arabia (EIB)
Spain (EIB)
Sweden (EIB)
Turkey (EIB)
Yugoslavia (EIB)
Miscellaneous (EIB)
8,161,812
100,000,000
50,000,000
70,000,000
32,591,691
18,000,000
28,060,000
$144,465
57
2,904,935
$20,093,702
>
194,998,095
GO
GO
197,231,330
2,233,235
2,904,935
194,998,095
226,612
10,000,000
18,927
179,178
60,000,000
10,000,000
179,178
60,000,000
246,472
1,275,642
684,363
137,000
10,709,249
60,224
1,270,866
4,776
131,821
5,179
60,224
197,231,330
226.612
70,000,000
70,000,000
70,000,000
70,000,000
10,955, 721
1,335,866
10,919,543
1,335,866
1,270,866
65,000
1,270,866
65,000
7,000,000
13,681,074
4, 111, 000
7,000,000
112,333
226,612
36,178
=
=
13,568, 741 13,681,074
4, 111, 000 4, 111, 000
539,881
51,467
H
CO
>
E
M
7,000,000
W
O
W
49,871,612
46,878,932
2,992,680
2,992,680
2,871,611
29,446
121,069
41,000,000
3,871,612
5,000,000
41,000,000
878,932
5,000,000
2,992,680
2,992,680
2,871,611
29,446
121,069
i Represents loans of agent banks fully guaranteed by Export-Import Bank.
2 Collections on principal include a portion of 1 loan in Bolivia to an individual, amounting to $888,987, written off.
3 Loans delinquent 90 days or more total $271,023 as follows: Brazil, $142,980; Uruguay,
$64,327; Poland, $3,492; Angola, $60,224.
* Data include participation by another agency of $7,000,000 in loans of Export-Import
Bank.
s The utilization of the loan by the Treasury Department has been increased to
$3,350,000,000 and the unutilized commitments reduced to $400,000,000 through Sept. 30,
1947.
Collections on the Reconstruction Finance Corporation loan do not include $5,852,144
held as unapplied interest and $6,946,523 held in a sinking fund for payment of principal.
Source: Clearing Office for Foreign Transactions, Department of Commerce.
$37,858,886
$37,858,886 $17,765,184
10, 782
10, 782
10,782
197,231,330 $197,231,330
2,233,235
«An Export-Import Bank loan to Aluminum Co. of Canada, Ltd., of $11,730,000 is
excluded, since this loan in effect was paid off as a result of a subsequent advance by
Office
of Metals Reserve, the latter transaction being reflected in advances.
7
On July 31,1947, the availability of this commitment was transferred to "Miscellaneous—Europe,
special cotton credit."
8
Commercial banks participated in a $200,000,000 short-term credit to the Netherlands
in the aggregate amount of approximately $93,000,000 without recourse on or guaranty by
the Export-Import Bank. As disbursements were made by the commercial banks,
amount of Export-Import Bank commitment was reduced correspondingly. The
$4,485,000 cancellation resulted from an equivalent amount of funds becoming available
to the Netherlands from the proceeds of a bond issue after payment of expenses.
M
H
H
CO
T A B L E 13.—Property credits to foreign governments and entities, by country, by agency, by status: July 1, 1940, through June 80, 1947
Commitments and agreements to extend credit
Total
Maritime Commission ( M O .
__
Reconstruction Finance Corporation: Office Rubber
Reserve (ORR)
State Department: Office Foreign Liquidation Commission (OFLC). .
Treasury Department: Lend-lease fiscal operations (LLFO).
American Republics
MC
ORR..._
OFLC
LLFO
Brazil
_
MC..;.
ORR.__
OFLC
Colombia (OFLC)
Ecuador (OFLC)
Panama (OFLC)
Peru
_
_
_
MC.
OFLC...
Uruguay (OFLC)
Unclassified (LLFO)
Gross
Cancellations and
expirations
Net
Unutilized
$2,965,703,717
$169,911,313
$2, 795,792,404
$445,294,323
190,918,686
19,321,313
171, 597,373
30,224,173
141,373,200
672,600
1,964,773
1,855,619
Utilized credit
outstanding *
$802,133
$2,283,452,398
127,417
140,700,600
674,716
840,631,148
1,302,011,496
1,153,459,067
1,619,361,191
150,590,000
1,153,459,067
1,468,771,191
308,958,874
106,111,276
844, 500,193
1,362,659,915
3,869,045
60,648,419
170,301,960
6,405
170,295, 555
43,822,028
126,473,527
58,945,271
67, 528,256
13,470,684
1,964,773
10,721,353
144,145,150
6,405
13,464,279
1,964,773
10,721,353
144,145,150
3,122,379
1,855,619
821,916
39,877,733
10,341,900
1,964,773
9,899,437
104,267,417
57,089,652
10,341,900
109,154
9,899,437
47,177,765
19,302,876
2,358
19,300, 518
3,122,379
16,178,139
1,855,619
14,322, 520
9,367,137"
1,964,773
7,970,966
2,358
9,364,779
1,964,773
7,970,966
3,122,379
6,242,400
1,964,773
7,970,966
1,855,619
6,242,400
109,154
7,970,966
800,000
350,000
121,000
4,912,887
186,853
350,000
121,000
613,147
800,000
350,000
121,000
4,916,934
4,047
4,047
666,000
144,145,150
10,000,000
104,000,000
55,000,000
OFLC
LLFO...
49,000,000
55,000,000
55,000,000
$2,350,498,081 $67,045,683
Interest
1,964,773
Austria (OFLC)
Belgium 2
See footnotes at end of table, p. 25.
Principal
1,964,773
4,103, 547
813,387
•
Collections
Credit
utilized
4,099, 500
813,387
109,154
613,147
4,912,887
4,912,887
4,099,500
813,387
4,099, 500
813,387
666,000
144,145,150
164,063
39,877,733
501,937
104,267,417
10,000,000
49,000,000
8,695,285
1,304,715
49,000,000
361,134
1,304,715
49,000,000
49,000.000
361,134
49,000,000
49,000,000
501,937
47,177,765
57,089,652
bO
CO
TABLE 13.—Property credits to foreign governments and entities, by country, by agency, by status: July 1, 1940, through June 30, 1947—Cont.
C o m m i t m e n t s a n d a g r e e m e n t s to e x t e n d credit
Gross
British Commonwealth
United Kingdom
OFLC
LLFO
Australia
_ _
..._
_
_
OFLC
LLFO
Burma (OFLC)
N e w Zealand ( O F L C )
U n i o n of S o u t h Africa ( O F L C )
China.
_._
;._.
_
_
MC
OFLC.
LLFO....
Czechoslovakia ( O F L C ) 3 . . .
Denmark (OFLC).
Egypt (OFLC)
Ethiopia (OFLC)
Finland..
__
_
MC
OFLC.
MC
OFLC
LLFO
Greece
OFLC
_.
Cancellations a n d
expirations
Net
Unutilized
to
Collections
Credit
utilized
Utilized credit
outstanding '
Principal
o
Interest
a
$3,182,039
>
$669,500,000
$669,500,000
$666,317,961
$666,317,961
650,000,000
650,000,000
650,000,000
650,000,000
60,000,000
590,000,000
60,000,000
590,000,000
60,000,000
590,000,000
60,000,000
590,000,000
Ul
7,000,000
7,000,000
7,000,000
7,000,000
>
6,500,000
500,000
6,500.000
500,000
6, 500,000
500,000
6, 500,000
500,000
5,000,000
5,500,000
2,000,000
5,000,000
5,500,000
2,000,000
1,182,039
2,000,000
5,000,000
4,317,961
=
=
5,000,000
4,317,961
>
M
M
138, 257, 986
$7,150,000
131,107, 986
27, 680, 252
103, 427, 734
$2. 561
103, 425,173
9. 357, 986
70, 000,000
58, 900,000
9, 357,986
70.000. 000
51, 750, 000
9, 357, 986
11.101,629
7, 220, 637
58,898,371
44, 529.363
2, 561
7,150,000
58,895, 810
44, 529,363
50,000. 000
10,000, 000
9,337. 691
1, 000, 000
25, 816, 759
50. 000, 000
10, 000, 000
9, 337, 691
1, 000, 000
25,816, 759
42, 212. 452
9, 914 000
413, 331
7, 787, 548
86,000
8, 924.360
346, 762
13,194,343
816, 759
25.000, 000
816, 759
25,000. 000
816, 759
11, 805,657
13,194, 343
653, 238
12,622, 416
m
m
H
7, 787, 548
86,000
9, 337,691
346, 762
13,194,343
$1, 097
6,503
299, 946
299, 946
H
S
Ul
o
w
13,194, 343
762,164, 437
55,001, 501
707,162, 936
7,101, 052
700, 061,884
340, 000
699, 721,884
O
42,164, 437
300, 000, 000
420, 000, 000
1.501
2, 081, 586
39, 741, 350
300, 000, 000
359, 980, 534
Ul
5,019, 466
40,081, 350
300, 000,000
359, 980, 534
340,000
55, 000, 000
42,162. 936
300,000. 000
365, 000,000
96, 299,139
1,139
96. 298, 000
46, 423, 252
49,874, 748
124. 600
29,426
49, 750,148
W
41,299.139
55,000, 000
1,139
41. 298, 000
55, 000, 000
124, 600
29, 426
46, 423, 252
41, 298, 000
8, 576, 748
41,173, 400
8, 576, 748
>
Hungary (OFLC) *
Iran
os
OFLC
LLFO
£
9
Iraq ( O F L C )
Italy..
&
?
MC
OFLC...
CO
_
'_
.
1 Japan (OFLC)
.
w Korea ( O F L C )
Lebanon (OFLC)
Liberia ( L L F O )
N e t h e r l a n d s a n d possession.
.
1
Netherlands
__
MC
OFLC.
LLFO..
.
Netherlands Indies ( O F L C ) .
Norway
MC
OFLC
.
.__
.
.
.
_
.
._
Philippines ( O F L C )
Poland (OFLC)
Saudi Arabia ( O F L C )
Thailand ( O F L C ) . . .
Turkey
MC
OFLC
.. _
_
U . S. S. R . ( L L F O ) . . .
Yemen (OFLC)
1
19,610, 497
25, 068, 989
10,389, 503
12, 999, 341
100,000
3,752,171
10,289,503
9, 247,170
29, 527. 289
8, 541, 041
29, 527, 289
8, 541, 041
25,068, 989
4, 458,300
8,541,041
193, 404
3,558, 767
4, 264,896
4, 982, 274
889. 350
199, 277, 950
381, 842
2, 450,277
41, 728, 227
160, 000, 000
2, 450, 277
39, 277, 950
160, 000, 000
7,614, 511
21, 733,184
2, 963, 351
8, 625,042
50,011, 728
7,385, 489
3, 266, 816
2, 036, 649
10, 649, 958
127, 988,272
889, 350
201, 741,131
12, 904
12,904
_.
507, 508
199, 277, 950
21, 283
39, 277,950
160,000, 000
21, 283
7,385,489
3, 266, 816
1, 807,816
10,649, 958
127,352,679
11, 434,626
15, 000, 000
25, 000, 000
5, 000, 000
19, 275, 000
178, 000, 000
89, 434,626
11. 434,626
78, 000, 000
19,078, 077
58, 921, 923
58, 921. 923
11, 434,626
30, 000, 000
48, 000, 000
11, 434,626
30, 000, 000
48, 000. 000
19, 078,077
JO, 921, 923
48, 000, 000
10, 921, 923
48,000, 000
100, 000,000
30, 933, 651
69, 066. 349
635, 593
228,833
635. 593
68, 430, 756
37,849,112
7,862,726
29,986, 386
19, 543,835
10,442, 551
208,000
76,708
10,234,551
27,849,112
10,000,000
7,862,726
19,986,386
10,000,000
12,395,186
7,148,649
7,591, 200
2,851, 351
208,000
76,708
7,383, 200
2,851,351
5, 983,384
50,000,000
2,000,000
10,000,000
12,784,812
2,012
2,784,812
10,000,000
2,012
275,000,000
1,000,000
33,440,000
Utilized credit outstanding represents credit utilized less collections on principal
Credit utilized represents (1) reported deliveries of surplus property, except for bulk
sales where entire amount of commitment is used (Office of Foreign Liquidation Commissioner), (2) merchant ships delivered against executed mortgages (Maritime Commission), and (3) billings for goods delivered in the case of lend-lease credits (lend-lease
fiscal operations). See explanatory note for a listing of the totals by country, representing the contracts for future delivery of surplus property.
a For Belgium, the OFLC commitment is based on estimates as to the amount of sur-
889.350
201, 728, 227
15, 000, 000
25, 000, 000
5, 000,000
19, 275, 000
189,434,626
100,000, 000
_
_
30, 000, 000
38, 068, 330
41, 741,131
160, 000, 000
...
.
30,000, 000
38, 068,330
27,271, 307
328,007
4,990,085
6,409,098
5, 983, 384
22,728,693
1,671,993
5,009,915
6,373,702
2,782,800
10,000,000
6,409,098
2,782,800
3, 590,902
241, 560,000
1,000,000
45,368, 398
1,000,000
5, 983,384
50,000,000
2,000,000
10,000,000
12,782,800
196,191,602
___
983,384
,
O
a
>
GO
GO
H
GO
>
W
M
E
M
Co
680,097
5,000,000
22,478,693
1,671,993
5,009,915
5,693,605
680,097
2,782,800
2,910,805
d
196,191,602
h-i
250,000
6,036
O
w
•3
O
plus property available for sale under the war-account settlement dated Sept. 24, 1946,
and consists of a credit of $23,000,000 plus $26,000,000 representing the United States
share which is half the estimated proceeds to be received by the Belgian Government
from sale of United States surplus property.
3 New sales under credit suspended Sept. 13, 1946.
4
New sales under credit suspended June 3,1947.
Source: Clearing Office for Foreign Transactions, Department of Commerce.
1
Co
to
TABLE 14.—Advances to foreign governments and entities—by country, by agency, by status: July 1, 1940, through June 80, 1947
Credit for materials delivered
Commitments
Gross
Outstanding 2
Utilizations
Cancellations
and expirations
to
Principal *
Interest
$993,846,435
$732,642,974
$8,554,126
12,594,317
702,715,239
456,334, U8
49, 741,693
117,090,443
10,281,470
55, 757, 939
281,021
60,000,000
66,681
1, 954, 689
49, 741,693
117,090,443
10, 214,789
53, 803, 250
281,021
60,000,000
49, 741,693
106,622,876
7,998, 723
51,812, 740
132,824
60,000,000
4,343,931
4, 200, 272
4,391
5,532
77, 674
765,169,685
506,675,919
34,848
258, 493, 766
66,681
10,993
690,178,840
30,969, 570
10, 208,409
33, 531,845
281,021
446,203,402
20,796, 281
7,992,343
31, 551,069
132,824
24,968
4,348
5,532
243,975,438
10,173, 289
2, 216,066
1,980, 776
148,197
5,000
2,093,962
Net
Unutilized
$1,008, 462,122
$14,615,687
715,309,656
§
>
Total
_
_
Agriculture Department (Agr)„
_
Reconstruction Finance Corporation:
Office Defense Supplies (ODS) ._
Office Metals Reserve (0MR) . . .
Office Rubber Reserve (ORR)
U. S. Commercial Company (USCC)..
State Department (State)
_
Treasury Department (Treas)
_
_
__. ._
_
.__ . .
_
Argentina (USCC)
Bolivia
$9,366,391
715,309,556
American Republics
Agr._
OMR
ORR...
USCC
State
_ $1,017,828,513
.
.
._
.
50,000,000
126,172,027
10,307, 970
55, 757, 939
281,021
60,000,000
258,307
9, 081, 584
26,500
765,469,316
221,957
765, 247,359
195,457
26, 500
690,178,840
30,969,570
10, 275,090
33, 542,838
281,021
690,178,840
31,165,027
10, 301, 590
33, 542,838
281,021
$261,203,461
w
246,381,121
H
10,467,567
2,216,066
1,990,510
148,197
3,990
5, 954,296
3,990
5,954, 296
3,990
5,954,296
3,990
3,860,334
150,000
5,158,858
645, 438
150,000
5,158,858
645,438
150,000
5,158,858
645,438
27,006
3, 749,118
84, 210
5,000
122,994
1,409,740
561, 228
26,500
2,018,885
2,018,885
1,267,921
7,075
750,964
25,000
1,024,358
996,027
26, 500
25,000
997, 858
996, 027
25,000
997,858
996, 027
25,000
871,339
371,582
26
1,517
5, 532
126,519
624,445
Chile (USCC).
Colombia
27, 655,862
1, 539,368
3,000
27, 655,862
1, 536, 368
27, 655,862
1, 530, 497
27,272,140
1,345,091
1,335
383, 722
185,406
OMR
ORR..
USCC
3,000
1,408,100
128, 268
1,335
158,899
26, 507
OMR
ORR
USCC
_ . ._
_
Brazil..
OMR
ORR
USCC
2,045,385
_
3,000
5,871
>
>
w
M
CO
O
*l
•3
H
d
M
H
O
s
H
|
1,408,100
128, 268
5,871
1
1, 408,100
122,397
1,249. 201 !
95,890
Costa Rica.
|
ORR-.
USCC.
1
Cuba
USCC
Ecuador (ORR)
Guatemala
ORR-
"~__~~~~~~
1
1
_
USCC
Mexico
OMR...
ORR.
._._
USCC
Nicaragua ( U S C C ) . . . .
Panama (ORR)
Peru...
._
_
Agr
OMR
ORR
USCC
Uruguay State
Venezuela.
ORR
574,282 |
492,081 1
1,042 1
82,201
420,195
420,195 1
154,087 |
409,994
82,087
1,042
154,087
420,195
154,087
10, 201
72,000
690,202, 551
690, 202, 551
690,202,551
446,205,307
243,997, 244
690,128,840
73,711
690,128,840
73,711
690,128,840 1 446,153,402
73,711 |
51,905
243,975", 438
21,806
539,330
35,532
539,330
35,532
33, 674
1,858
33,674
1,858
1,858 1
32,653
1,858
35, 516
1,021
a
>
1,021
CO
CO
a
33,648,705 1
23, 475, 711
10,172,994
GO
1
30, 662,027
5,000
3,174,135
192,457
30,469, 570
5,000
3,174,135
30,469,570 1
5,000
3,174,135 |
20, 419,889
5,000
3,050,822
10,049, 681
>
1
_
____
See footnotes at end of table, p. 28.
33,674
454
503,814
34,511
33, 648, 705
276,383
22,898'
1, 716, 951
45,121
276,383
22,898
1,671,830
126, 097
11, 484
1,190,991
416,051
50,000
325,000
925,900
416, 051
39, 999
5,122
50,000
325,000
885,901
410,929
50,000
324, 386
423,145
393, 460
281,021
' 780,305
281,021
780,305
26,682
281,021
753,623
132,824
753, 623
763, 277
763, 277
17,028
736, 595
17,028
736, 595
17,028
50,000
325,000
925,900
Australia (USCC)
British Guiana (ORR)
British Honduras (USCC)
Canada
OMR.
USCC
India (USCC)
Newfoundland and Labrador (OMR).
Nigeria (USCC)
Northern Rhodesia (USCC)...
_.
539.330 1
35,532
192,457
_
British Commonwealth
.^
o
33,841,162
|~
USCC
574,282
1
1
__
574,282
1
i
17,028
101,180, 392
886
1,690
322, 503
92,176, 380
1
90,455, 000
1, 721, 380
276,383
22,898
1, 716, 951
26, 682
8,886,127
92, 294, 265
92, 294, 265
91, 990, 253
8,734,127
886
1,690
322, 503
83,442, 253
886
1,690
322, 503
83,442, 253
886
1,690
322, 503
83,442, 253
81, 720,873
1, 721,380
81, 720,873
1, 721,380
81, 720, 873
1, 721,380
8,734,127
123,313
19,942
19,942
150, 286
11,414
480,839.
w
614
E
H
462, 756
17,469
co
148,197
o
1
2,015
2,015
*1
w
4,026,473
304,012
d
M
43
H3
4,001, 215
co
H
4,001, 215
i
2, 015
120,000
68,117
5,862, 585
I-I
%
2,015
120," ooo"
CO
68,117
5, 862, 585
68,117
5,862, 585
58, 383
5,862, 585
9,734
TABLE 14.—Advances to foreign governments and entities—by country, by agency, by status: July 1, 1940, through June SO, 1947.—Continued
Credit for materials delivered
Commitments
Gross
Cancellations
and expirations
fcO
00
Outstanding 2
Utilizations
Net
Unutilized
Principal
1
Interest
1
H-l
o
British Commonwealth—Continued
Sierra Leone (USCC)
$492,966
57,443
32,000
25, 443
OMR
USCC
Trinidad and Tobago (ORR)
-
OMR
USCC
-
China (USCC)
French possession* Algeria (USCC)
Netherlands possessions
Netherlands Indies (Agr)
Surinam (OMR)
Agr
ORR
_ .
---
-
_
Portuguese possessions
Angola (USCC)
..
Mozambique (USCC)
Spain (USCC)
U. S. S. R .
ODS
Treas
--
-
_
$32,000
32,000
$492,966
25,443
$492,966
25,443
$492,966
25,443
>
GO
GO
25,443
25,443
25,443
1,690
2,074,117
1,690
2,074,117
1,690
2,074,117
1,690
1,779,839
$25,215
$294,278
1, 400,000
674,117
1, 400,000
674,117
1, 400,000
674,117
1,105, 722
674,117
25,215
294,278
9,400,000
2,023,188
18,000,000
9,400,000
2, 023.188
18,000,000
$1, 943,696
7,456,304
2,023,188
5,405,683
7,456,304
2, 023,188
3,000,000
148,874
15,000,000
3,000,000
15,000, 000
3,000,000
12, 594,317
2,405, 683
3,000,000
3,000, 000
148,874
10,133, 716
10,133, 716
10,133, 716
10,133, 716
10,130, 716
3,000
10,130, 716
3,000
10,130, 716
3,000
10,130, 716
3.000
W
1, 517, 905
1, 517,905
1, 517, 905
1, 517,905
d
764,405
753,500
764, 405
753, 500
764,405
753, 500
764,405
753, 500
12, 594,317
GO
w
h-l
103, 996
110,000,000
258,307
103,996
109, 741, 693
103, 996
109, 741,693
103, 996
109, 741, 693
4,343, 931
50, 000,000
60,000, 000
258,307
49, 741,693
60,000,000
49, 741,693
60,000,000
49, 741,693
60,000,000
4,343, 931
2,405,683
E
2,405,683
GO
i Includes $2,320,672 reported as written off: Bolivia, $7,023; Brazil, $9,756; Colombia, $30,745; Cuba, $40,850; Ecuador, $11, 388; Guatemala, $3,736; Mexico, $182,593; Peru, $50,000'
Venezuela, $27,301; Southern Rhodesia, $23,928; and Surinam. $1,933,352.
2 Includes $1,426,337 delinquent 90 days or more: Bolivia, $540,797; Brazil, $624,445; Colombia, $26,507; Costa Rica, $72,000; Cuba, $21,806; Mexico, $123,313; and Peru, $17,469.
Source: Clearing Office for Foreign Transactions, Department of Commerce.
>
O
GO
•
CO
FOREIGN ASSETS AND LIABILITIES OF THE UNITED STATES
EXPLANATORY NOTE—FOREIGN CREDITS TABLES
29
11-14
The majority of property credits were extended beginning in the latter part of
1945 under lend-lease pipe-line agreements, war-account settlements, and in connection with the sale of surplus property. The greater part of the loan activity
also has occurred since July 1, 1945. In order to maintain uniformity of presentation, however, July 1, 1940, is cited as the beginning date for all cumulative
tables presented.
In the case of the Export-Import Bank, data are reported on all loans made
since February 12, 1934, when the bank was established. The EIB reported the
following status of its loans as of June 30, 1940:
Gross commitments
$437, 581, 531
Cancellations and expirations
119, 103, 091
Net commitments
318, 478, 440
Undisbursed commitments
1
158, 435, 206
Total disbursements
160, 043, 234
Principal collections
*
61, 525, 058
Outstanding
98, 518, 176
Interest and commissions
Q)
i Not reported.
Another agency known to have extended foreign credits in the period between
World Wars I and II is the Reconstruction Finance Corporation. Although not
included in the tables of this appendix, the essential facts are as follows:
V. S. S. R.—On July 18, 1933, the RFC authorized a loan to the Cotton
Export Finance Corporation of New York in the amount of $1,500,000, and an
additional loan of $1,300,000 1 week later. These loans were secured by notes of
the Amtorg Trading Corp., which were endorsed by the State Bank of U. S. S. R.
Against these amounts $2,722,902 was disbursed and subsequently repaid. Two
other loans to Amtorg of $51,247 and $29,295 were made on July 21 and August
14, 1933, respectively, and have been repaid.
China.—The RFC authorized a loan of $50,000,000 to China on July 10, 1933.
This authorization was reduced on February 16, 1934, to $20,000,000, against
which $17,100,000 was disbursed. Payments by China to the RFC reduced this
amount to $13,500,000, and the outstanding notes were sold on April 8, 1936, to
the EIB. Only the amount of the loan purchased by the EIB is included in
this report.
Norway.—On January 12, 1940, the RFC authorized a loan of $10,000,000 to
the Kingdom of Norway. The entire amount of this authorization was subsequently canceled.
Transactions covered.—The following types of United States Government
transactions are included:
1. Loans.—These represent cash loans to foreign governments and private
entities in foreign countries which result in a debtor-credit relationship, anticipating repayment in cash of principal plus interest. Commitments reported by the
EIB represent authorizations resulting from approval of loans by the Board of
Directors. As of June 30, 1947, certain loans had not been formalized by credit
agreements or, in the case of exporter credits, by letter agreements, in the amounts
shown for the following countries:
Argentina
$210, 000 China
$4, 243, 750
Brazil
27, 826, 521 Finland
2, 500, 000
Ecuador
1, 000, 000 Italy
100, 000, 000
Mexico
53, 800, 000 Netherlands Indies
100, 000, 000
Austria
750, 000
Canada
5, 700, 000
Total
296,030,271
2. Property credits.—These represent credits, other than cash loans and advances, extended to a foreign government or private entities in a foreign country
in connection with the disposal of surplus property, ships, or other property, the
sale or disposition of or the settlement for lend-lease articles and services, the
settlement for civilian supplies and relief and rehabilitation items, or any other
transactions, the result of which is to create an obligation of such foreign government or entity to the United States Government, anticipating repayment of
principal and interest in accordance with the credit terms. •
3. Advances.—These represent cash advances to or for the account of foreign
governments or private entities in foreign countries which give rise to an obligation to repay by deliveries of material or services or by repayment in cash. Cumu
30
FOREIGN ASSETS AND LIABILITIES OF THE UNITED STATES
lative repayments data include $24,805,033 of principal repaid in cash, of which
$14,154,504 was received from other countries for sugar delivered under the advance to Cuba by the Commodity Credit Corporation of the Agriculture Department. Data also include $578,340 of interest repaid in cash and $59,361,829 of
principal paid in gold.
4. Commodity programs for Germany and Japan.—Credits resulting from
Commodity advances by the United States Government to Germany and Japan
are included in table 11. Raw materials are being shipped to these countries for
manufacture into finished goods, part of which is retained by the occupied area
as a processing fee. The other part is exported to adjacent areas for dollar proceeds, which are used to reimburse the United States Government for the cost of
the raw materials and the handling charges and administrative expenses incurred.
Any balance of these proceeds will accrue to the respective military government
for the procurement of civilian goods for shipment to the occupied area. The
major commodity advanced to Germany and the only commodity advanced to
Japan has been raw cotton made available by the Commodity Credit Corporation
through the U. S. Commercial Company. .
The total collections of principal and interest recorded for Japan represent funds
realized by USCC from the sale of Japanese textiles. The collections recorded
for CCC represent funds transferred from USCC to CCC through June 30, 1947,
plus the funds available for transfer on that date.
Credits arising as the result of the following bulk sales of surplus property have
been considered utilized as of the dates agreements were signed: Belgium,
$49,000,000; China, $55,000,000; France, $300,000,000; Italy, $160,000,000;
Philippines, $5,000,000; and United Kingdom, $60,000,000. This was done
because ultimate deliveries under bulk sales are expected to approximate the
amounts specified in the agreement. Commitments are treated as equivalent to
utilizations.
In all cases other than bulk sales, utilization figures regularly have been based
on actual deliveries of surplus property, including merchant-ship sales, or bills
rendered for goods delivered under lend-lease credits. However, if unfilled contracts for the sale of surplus property were assumed to result in the immediate
utilization of related credits, the figure for utilized surplus-property credits would
be increased as follows:
Colombia
$184, 933 Japan
$3, 596, 906
Austria
156, 000 Korea
13, 127, 390
New Zealand
69, 938 Netherlands
5, 378, 464
China
3, 985, 859 Norway
27, 784
7, 598, 112
Ethiopia
80, 000 Poland
Finland
1, 349, 157 Turkey
2, 346, 393
Greece
21, 731, 878
Hungary
6, 178, 372
Total
65,811,186
Credits utilized and outstanding under lend-lease fiscal operations for the
United Kingdom are stated in the amount of $590,000,000, although billings to
June 30, 1947, of $250,000,000 for post-VJ-day pipe-line transfers plus $472,000,000
lend-lease VJ-day inventories ttotal $722,000,000. Under the lend-lease settlement
of December 6, 1945, the post-VJ-day transfers estimated at $301,000,000 plus
the lend-lease VJ-day inventories ($472,000,000) less an offset estimated at
$183,000,000 for the reverse lend-lease pipe line and allowed claims are expected
to approximate $590,000,000.
Commitments as of June 30, 1947, for China and France under lend-lease
fiscal operations show a reduction as compared with March 31, 1.947, of $7,150,000
and $55,000,000, respectivelv, bringing the net commitment figures for these
two countries to $51,750,000 and $365,000,000. The revised figures represent
the estimated value of lend-lease aid furnished and to be furnished under the
reported credits. With the recording of additional data during the September
quarter, it is presently estimated that the net commitment figure as of September
30,1947, will be reported in the amount of $385,000,000 for France.
DEFINITIONS
Because of the wide variety of transactions and differences in the accounting
procedures of the lending agencies, it was impossible to prepare simple definitions applicable to all. cases, but the classifications used are as consistent in principle as possible.
Sales of surplus property against foreign currencies and other property when
the currencies have been paid to the account of the United States, or title to the
FOREIGN ASSETS AND LIABILITIES OF THE UNITED STATES
31
other property has been transfeired, are considered as cash, not credit, transactions, even though there are quantitative limitations on the use of the foreign
currencies which prevent their complete utilization for a year or more. On the
other hand, sales against foreign currencies, services, or property which are to
be paid, performed, or transferred upon demand are considered as credit transactions to the extent that demand has not been made.
"Net commitments" covers all loans and credits approved by the responsible
officials of the lending agencies from available funds even if they have not in every
case been signed or formalized by credit agreements. Cancellations and expirations up to June 30, 1947, have been deducted from the amounts authorized.
"Utilized" is defined as follows:
(a) Loans such as those by the Export-Import Bank and the Reconstruction
Finance Corporation; also, the loan to the United Kingdom—disbursed under the
terms of the agreements.
(6) Credits by the Office of the Foreign Liquidation Commissioner—amounts
reported as actually delivered on normal sales plus the complete amount of bulk
sales regardless of delivery.
(c) Settlements for lend-lease transfers—billings presented to foreign governments. Work completed, as reported to the Treasury Department, was the basis
for determining utilization under the Liberian agreement.
(d) Ship sales by the Maritime Commission—principal amount of mortgages
received by the Commission from foreign purchasers. The Ship Sales Act provides that vessels may be sold for 25 percent cash and the balance on credit
.terms. In all sales where credit is involved, mortgages are received when the
ships are delivered to the purchaser.
"Repayments" are confined to repayments on principal account. They are
exclusive of repayments on debts arising out of World War I.
"Outstanding indebtedness" is usually the net of utilization less repayments
of principal.
International Monetary Fund and the International Bank for Reconstruction and Development
By the Bretton Woods Agreements Act, Public Law 171, Seventyninth Congress, first session, approved July 31, 1945, the United States
was authorized to accept membership in the International Monetary
Fund and the International Bank for Reconstruction and Development. Both of these institutions are now in operation.
The contribution of the United States to the capital of these institutions was largely made during 1946 and early 1947 in the following
forms:
United States payments to the International Fund and Bank
[In millions of dollars]'
International
Monetary
Fund
Form
Gold
Dollars.. . __. .
_. . . . . .
Demand notes (in place of dollars).
Total
^
_
. . __.
International
Bank for Reconstruction
and Development
687.5
280.5
1,782.0
69.2
565.8
2, 750. 0
635.0
The payments to the fund covered the full amount of the United
States quota. The payments to the bank covered the 20 percent of
the United States subscription which was subject to call when the
bank was ready to start operations. The other- 80 percent of the
subscription—$2,540,000,000—is subject to call by the bank when and
if required to meet obligations of the bank arising out of its direct
issues or those guaranteed by it.
32
FOREIGN ASSETS AND LIABILITIES OF THE UNITED STATES
"The capacity of the International Monetary Fund and the International Bank for Reconstruction and Development to assist in the
task of financing the world's needs for United States dollars is restricted by the articles of agreement under which both organizations
operate. These restrictions are of two types, first, actual limitations
as to amounts available, and, second, qualitative requirements which
must be met before currencies can be purchased from the Fund or
loans can be made by the Bank.
International Monetary Fund.—The quantitative limitations on
the right of member countries to acquire United States dollars from
the Fund are stated in article V, section 3, of the Articles of Agreement. I n general a member's aggregate purchases of currency from
the fund are limited to the amount of its quota plus the amount of
gold that the member has paid in. Also, members may ordinarily
not borrow more than 25 percent of their quotas in any one year,
unless special exception is made.
The total amount of United States dollars t h a t the fund can furnish
to all countries is limited by the amount of dollars and gold possessed
by the fund. The balance sheet for June 30, 1947 showed gold holdings amounting to $1,344,000,000, and dollar deposits and dollar*
securities held amounting to $2,005,000,000, a total of $3,349,000,000.
The qualitative limitations on the rights of members to use the
facilities of the fund are many. The principal ones are listed below:
(1) The member must be in good standing.
(2) The member must represent that the currency to be acquired
is presently needed for making in that currency payments which are
consistent with the fund agreement.
(3) The member must not be using the resources of the fund in a
manner inconsistent with the purposes of the fund.
(4) The funds acquired may not be used to meet a large or sustained outflow of capital.
I n general, the aim of these and other provisions is to limit the
fund's resources to the financing of short-term balance-of-payments
deficits.
The operations of the fund according to its report as of August 31,
1947, are shown below:
Currencies acquired by its members from the International Monetary Fund, as of
August 31, 1947
Amount of currency acquired
Country acquiring currency
Millions of
dollars
France
Netherlands
Mexico
-
100.0
18.0
13.5
Other
i 6.0
i In millions of pounds sterling.
According to public releases, the following countries have acquired
currency from the fund between August 31, and November 30, 1947:
Chile, $7,500,000, Denmark, $3,400,000, France, $25,000,000, Mexico,
$9,000,000, Netherlands, $12,000,000, Turkey, $5,000,000, and United
Kingdom, $240,000,000.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
33
International Bank,—The bank's capacity to make loans of United
States dollars is limited to its holdings of dollars plus its ability to
sell its obligations for dollars. As shown by its balance sheet, on
September 30, 1947, its holdings of dollar deposits and securities
amounted to $741,000,000. The bank had yet to make dollar disbursements of $263,000,000 on loans already authorized. In July it
sold $100,000,000 of a 10-year 2%-percent issue and $150,000,000 of a
25-year 3-percent issue at 100.
Qualitative restrictions on the bank's ability to lend, as stated in
its second annual report (pp. 15 ff.), are:
(1) Loans may not be made for relief or for political purposes;
(2) There must be reasonable prospects for repayment; and
(3) Specific'projects or programs for development or reconstruction
must be presented. General balance-of-payments deficits are not to
be financed by the bank.
The loans authorized by the bank through November 1947 are as
follows:
[In millions of dollars]
Authorized
amount
Borrowing countryFrance
Netherlands... ._
Denmark
Luxemburg
Total
1
__
Amount utilized (through
Sept. 30 only)
250.0
195.0
40.0
U2.0
202.4
30.0
i 497.0
232.4
Including $2,000,000 to be disbursed in Belgian francs.
The bank has also received loan applications from Italy, Poland,
Czechoslovakia, Iran, Mexico, and Chile.
Commitments to extend aid
Commitments by the United States Government to extend aid to
foreign countries, requested in item 3, are shown in the preceding
tables as unutilized balances. A few other commitments which are
not susceptible to statistical treatment are discussed below.
Mexico.—Under Public Law 422, Seventy-ninth Congress, Congress
authorized United States Government aid to Mexico in the campaign
to eradicate the foot-and-mouth disease.
I n consequence, the United States Government helped to form and
is supporting the Joint Mexican-United States Commission for the
Eradication of Foot and Mouth Disease.
United States expenditures under this program, out of funds advanced by the Department of Agriculture, average 5 to 8 million
dollars per month.
The United States Government commitment in this matter is
expressed in an exchange of notes with the Government of Mexico.
Panama.—The
following are the outstanding commitments to
Panama (see exchange of notes dated M a y 18, 1942, executive agreement series 452):
1. The transfer to the Kepublic of Panama of certain railroad lots
in Panama and Colon.
2. The construction at Balboa by the United States of a tunnel or
bridge to allow transit under or over the Canal.
34
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
3. The removal from their present site to some other suitable site
in the Republic of Panama of the terminal facilities of the Panama
Railroad in Panama including the station, yards, and other appurtenances.
4. Under paragraph 6 of point No. 5 of the above-mentioned note
of M a y 18, 1942, the United States Government is committed to
bear one-third of the current maintenance cost of the roads in Panama
being used periodically or frequently by our armed forces. This
commitment was made in view of wear or damage caused to such
roads by movements related to defense activities.
Scientific and cultural cooperation.—The programs and projects conducted by the Department of State through the Interdepartmental
Committee on Scientific and Cultural Cooperation provide for cultural, scientific, and technical cooperation and interchange with all
the American Republics in accordance with the resolutions, conventions, and agreements entered into at the Inter-American Conference
for the Maintenance of Peace held at Buenos Aires in 1936 and the
Eighth International Conference of American States held at Lima in
1938. These programs are carried out pursuant to congressional
authorization contained in Public Law 355, Seventy-sixth Congress,
and Public Law 63, Seventy-sixth Congress. Inasmuch as these
programs are carried out in agreement with and with financial cooperation of the government and people of the other American Republics, they are looked upon as actual and moral commitments within
the limitations of the annual congressional appropriations and appropriation language.
These programs are administered by some 16 agencies of Government, including the Department of State through funds appropriated
to the Department of State. None of them are direct financial-aid
programs but they do constitute economic aid in the broad sense of that
term. Although the program includes such varied activities as the
exchange of students and professors, the establishment of cooperative
agricultural field stations, the training of public administrators and
public-health officers, and the translation of official United States
publications into Spanish and Portuguese, they are all designed to
render closer and more effective the relations between the American
Republics and to foster economic and social well-being of the people
of this hemisphere.
Commitments in fiscal 1948.—The Congress has made available to
the Department of State a total of $4,000,000 for expenditure during
the fiscal year 1948 and this total sum may be regarded, in light of the
above, as a commitment to extend United States economic aid to the
countries of Latin America.
United States Stabilization Fund agreements
United States Stabilization Fund now has three agreements which
are still in effect, namely, agreements with Brazil, Mexico, and Cuba.
The period in which additional exchanges of cruzeiros and dollars
can take place under the agreement with Brazil has now expired, but
$80,000,000 of the $100,000,000 maximum provided for by the agreement was utilized before the expiration date. The agreement contains provisions for the repayment.
*
Several stabilization agreements with Mexico have been made since
1936. The new and enlarged form of the agreement now in effect
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
35
was announced in M a y 1947. Under it, the United States Stabilization Fund undertakes for a period of 4 years commencing July 1,
1947, to purchase Mexican pesos to an amount equivalent to
$50,000,000 for the purpose of stabilizing the United States dollarMexican peso rate of exchange. The agreement fully provided for
coordination of this agreement with the articles of agreement of the
International Monetary Fund in which both Mexico and the United
States are active members.
The stabilization agreement with Cuba was first announced in
July 1942. Under it the Government of the United States undertakes to sell gold to the Government of the Republic of Cuba from
time to time with payment to be made within 120 days after delivery
of the gold. The unpaid-for amount of gold shall not at any time
exceed $5,000,000. This agreement has been extended until June
30, 1949. Cuba has repeatedly purchased gold under this arrangement and made payment within the allowed 120-day period.
B. OTHER FINANCIAL ASSISTANCE TO F O R E I G N COUNTRIES
This section contains data covering grants and other forms of
financial assistance other than loans and credits to foreign countries
by the United States Government during World War I I and through
June 30, 1947. Table 15 is a summary of authorizations and utilizations through June 30, 1947. Amounts are shown separately for (1)
lend-lease; (2) civilian supplies, relief, and rehabilitation; and (3)
financial aid. Some of these items were outright grants, while others
were subject to negotiations as to terms of repayment.
Unutilized balances as of July 1, 1947, as shown in table 2, and
subject to the qualifications noted therein, amounted to $2,236,000,000.
T A B L E 15.—Financial assistance {other than loans and credits)1 by country,
agency', by type of transaction: July 1, 1940, through June 30, 194-7
Total
Total
: __•
Lend-lease
Relief a n d
rehabilitation
47,805,800,000
47,805,800,000
47,805,800,000
47,805,800,000
C i v i l i a n supplies, relief, a n d r e h a b i l i t a t i o n , .
4,908,476,220
4,908,476,220
72,698,495
24,905, 528
72, 598,495
24,905,528
Financial aid
Commerce Department (Com)
F e d e r a l Security A g e n c y ( F S A )
F e d e r a l W o r k s Agency ( F W A )
Interior D epartment (Int) - _ _
Maritime Commission ( M C )
Philippine W a r Damage Commission
(PWDC)
See footnotes at end of table, p. 39.
Financial
aid
$53,346, 612, 576 $47,805,800,000 $4,908,476,220 $632 336, 356
Lend-lease
T r e a s u r y D e p a r t m e n t : Lend-lease fiscal
operations ( L L F O )
A m e r i c a n R e d Cross ( A R C )
N a v y Department (Navy)
State Department:
P r o p e r (State)
U N R R A ( U n i t e d S t a t e s share)
(UNRRA)
Treasury Department:
Lend-lease fiscal operations ( L L F O )
W a r Refugee B o a r d ( W R B )
W a r D e p a r t m e n t (War)
*_
Navy and War Departments (N&W)
by
3,988,967
3,988,967
2, 527,635, 054
2,527,635,054
134,486, 768
3,356, 720
2,137,091,807
4,412,881
134,486, 768
3,356, 720
2,137,091,807
4,412,881
632,336,356
632,336,356
196,360
859, 750
242,363
442,812
40,163
196,360
869,750
242,363
442,812
40,163
2,655,281
2,655,281
36
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
•TABLE 15.—Financial assistance (other than loans and credits)1 by country, by
agency, by type of transaction: July 1, 1940, through June 80,
1947—Continued
Total
Financial aid—Continued
Reconstruction Finance Corporation:
Office of Defense Supplies ( O D S )
State Department:
P r o p e r (State)
Office F o r e i g n L i q u i d a t i o n C o m mission ( O F L C )
T r e a s u r y D e p a r t m e n t (Treas) _ .
_
W a r D e p a r t m e n t ( W a r ) .__
_ __
American Republics
444,156, 751
ARC „
ODS
State .
LLFO
.
$2, 435,325
68, 517,632
68,517,632
53,959,000
500,000,000
2,977,670
53,959,000
500,000,000
2,977,670
1,319,371
Argentina
O D S _.
State —
.
Bolivia
ODS
State
Brazil
_
ODS
State
_.
_
Relief a n d ' F i n a n c i a l
rehabilitation
aid
$2,435,325
3,794
2,435,325
68, 517,632
373, 200,000
.
Lend-lease
$373,200,000
$3,794
70,952,957
3,794
2,435,325
68,517,632
373, 200,000
*
1,319,371
4,876
1,314,495
4,876
1,314,495
2, 794,333
2,794,333
25,000
2, 769,333
25,000
2, 769,333
14, 578,603
14,578,603
328,507
14,250,096
328,507
14,250,096
5,586,499
5,586,499
2,642,916
2,642,916
999
2,641,917
999
2,641,917
C o s t a R i c a (State)
__
C u b a (State)
D o m i n i c a n R e p u b l i c (State)
E c u a d o r (State)
G u a t e m a l a (State)
_
2,263,803
250,987
686,029
4,537,132
1, 782,051
2,263,803
250,987
686,029
4,537,132
1, 782,051
Haiti
1, 982,951
3,794
3,794
1,979,157
3,794
G h i l e (State)
Colombia
__ _
ODS
State
ARC
State
_
_
__
H o n d u r a s (State)
Mexico (State)
N i c a r a g u a (State)
P a n a m a (State)
P a r a g u a y (State) __
Peru (State).
Salvador ( S t a t e ) . .
„
__
__.
Uruguay
ODS
State
._
_
Unclassified
Oi)S
State
LLFO
Albania ( U N R R A )
1,228,187
1,228,187
10,414
1,217,773
10,414
1,217,773
3,225,469
376,842,254
373,200,000
2,065, 529
1,576,725
373,200,000
373,200,000
3,642,254
2,065,529
1,576,725
18,879,181
18,879,181
_
See footnotes a t e n d of t a b l e , p . 39.
2,898,127
11,202,247
1,211,139
962,403
3,171,322
3,760,157
1,230,771
151,626,959
Austria
UNRRA
War
1,979,157
2,898,127
11, 202,247
1, 211,139
962,403
3,171, 322
3,760,157
1,230,771
3,225,469
Venezuela ( S t a t e ) . .
1,979,157
.
151,626,959
68,947,665
82,679,294 |
68,947,665
82.679,294
*
FOREIGN ASSETS AND LIABILITIES OF THE UNITED STATES
37
TABLE 15.—Financial assistance (other than loans and credits)1 by country, by
. agency, by type of transaction: July 1, 1940, through June 80, 1947—Continued
Total
1 $133,732,228 J $132,700,000
Belgium. _
ARC
UNRRA
LLFO
1
British Commonwealth
17,153
1,015,075
132,700,000
_
230,120,100,000 1
China
24,515,364
16,206, 589
8,308,775
| 30,120,100,000
16,206, 589
8,308,775
1236,120,166,666
990
300,803
329,856
368,223
77,088
3,490
2,552
2,308,546,085
-
ARC
UNRRA
TreasLLFO
_
.
.
ARC...
UNRRA
LLFO.
Egypt
-.
ARC
UNRRA
LLFO....
Ethiopia
_.
UNRRA
LLFO
ARC
UNRRA_
6,451,630
297,194,455
500,000,000
1,504,900,000
1
_
France
ARC
UNRRA
LLFO
ARC.__
UNRRA..
War
_
F r e n c h E q u a t o r i a l Africa ( A R C )
French Indochina ( U N R R A )
F r e n c h Morocco ( A R C ) . _
__
Germany. _
UNRRA...
War
See footnotes at end of table, p. 39.
_
260,810.
108,433
152,377
,
990
300,803
329,856
368,223
77,088
3,490
2,552
1,504,900,000
303,646,085 $500,000,000
500,000,000
1,504,900,000
600,000
75,363
185,419,289
600,000
600,000
C r 10,765,764
C r 13,500,000
__ 185,494,652
75,363
185,419,289
1,545,433
1,188,803
C r 13, 500,000
C r 13,500,000
5,531,937
5,200,000
2,734,236
1,545,433
1,188,803
331,937
331,937
5,200,000
3,138,066
3,138,066
1,652, 206
1,485,860
' 1,652,206
1,485,860
2,569,413,419
2,540,800,000
28,613,419
2,553,178,012
2,540,800,000
12,378,012
9,594,726
2,783,286
2,540,800,000
2,540,866,666
9,594,726
2,783,286
16,048,411
16,048,411
283,490
747,389
15,017,532 |
15,017,532 1
283,490
747,389
118,448
457
Il8,448 1
457
68,091 |
68,091 1
510,591,131
7,998,683
502,592,448
_,
6,451,630
297,194,455
186,094,652
331,937
5,200,000
Finland.
25,859,176
1 30,144,615,364 *30,120,100,000
108,433
152,377
Bermuda (ARC)
British E a s t Africa ( A R C ) . . .
Eire (ARC)
Hong Kong (ARC)
_„
India (ARC)
Jamaica (ARC)
Trinidad and Tobago (ARC)
Czechoslovakia
$1,032,228
17,153
1,015,075
260,810
ARC...
UNRRA
Financial,
aid
132,700,000
30,145,959,176
United Kingdom..
ARC
UNRRA
LLFO
Relief a n d
rehabilitation
Lend-lease
510,591,131
1
7,998,683 1
502,592,448
,
38
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
T A B L E 15.—Financial assistance (other than loans and credits)1 by country', by
agency, by type of transaction: July 1, 1940, through June
30,1947—Continued
Total
Greece
ARC
U N R R A ._
LLFO
$358,968,679
$81,400,000
1,420,567
276,148,112
81,400,000
81,400,000
-
Hungary (UNRRA)
Relief a n d
rehabilitation
ARC._
LLFO
Iran
1,420, 567
276,148,112
Iraq ( L L F O ) .
I t a l y a n d possessions:
Italy
ARC
UNRRA.__
LLFO
War
...„
Eastern Mediterranean islands
(UNRRA)
Eritrea (ARC)
._
J a p a n a n d r e l a t e d areas:
Former mandates:
UNRRA
War
ARC
War
2,352, 983
Cr
100,560
Cr
99,440
200,000
Cr
200,000
Cr
8,446,791
Cr
8,800,000
Cr
353,209
8,800,000
Cr
8,800,000
Cr
4,000,000
Cr
4,000,000
_.
Cr
200,000
99,440
99,440
353, 209
353, 209
955,982,358
955,982,358
3,183,112
408,206,057
134,486, 768
410,106,421
3,183,112
408, 206,057
134,486, 768
410,106.421
1,580,961
14,625
1, 580,961
14, 625
388,415,153
388,415,153
815,179
5,109,043
446,951
815,179
5,109, 043
446,951
45,411,069
45,411,069
308, 786
45,102, 283
308,786
45,102,283
29,157, 781
29,157, 781
12, 558
18,447, 932
6,284,410
4,412,881
12, 558
18,447,932
6, 284,410
4,412,881
86,423
86,423
32, 744
32,744
Luxemburg ( U N R R A ) :
ARC
UNRRA
LLFO
182, 720, 267
173, 000,000
9, 720, 267
174,989,895
173,000,000
1,989, 895
121, 889
1,868,006
173,000, 000
173,000,000
121, 889
1,868,006
7, 730,372
7, 730,372
ARC
UNRRA
LLFO
Philippines
ARC
C om
FSA
FWA
INT
MC
PWDC
OFLC
_.
..
_.
_
.
See footnotes a t e n d of t a b l e , p . 39.
37,981,490
37,100,000
241,045
640,445
37,100, 000
37,100,000
151,154,834
__
1
458,384
196, 360
869, 750
242, 363
442, 812
40,163
2, 655, 281
53, 959, 000
Financial
aid
$277, 568,679
2,352,983
Iceland
ARC
LLFO
Lend-lease
881,490
241,045
640,445
~~
89,771,435
$61,383,399
458,384
196,360
869, 750
242,363
442,812
40,163
2, 655,281
53, 959,000
FOREIGN ASSETS AND LIABILITIES OF THE UNITED STATES
39
TABLE 15.—Financial assistance (other than loans and credits)1 by country, by
agencyj by type of transaction: July 1,1940, through June SO, 1947—Continued
Total
Philippines—Continued
UNRRA..
War
$8, 900, 349
83,390, 372
Poland
ARC
UNRRA
LLFO
._
_.
P o r t u g u e s e possession: C a p e V e r d e I s l a n d s
(ARC)
.
Saudi Arabia ( L L F O )
Spain (ARC)
Sweden
.-
-
ARC
UNRRA
Switzerland ( U N R R A )
Turkey (LLFO)
U . S. S. R
ARC
UNRRA
LLFO
Yugoslavia
-
ARC
UNRRA
LLFO
I n t e r n a t i o n a l organizations:
I n t e r g o v e r n m e n t a l C o m m i t t e e o n Refugees
_
State
WRB
UNRRA (UNRRA).
_
Unclassified areas:
Europe
.
B r i t i s h zone ( W a r ) __
U n i t e d States zone ( W a r )
Balkans (War)
_
..
Other
ARC
UNRRA
LLFO
WRB
Lend-lease
_
_
_
$8,900,349
80, 412, 702
383, 452,841
$16, 300,000
913,494
366,239, 347
16, 300, 000
16,300,000
971
17,800, 000
1, 759, 204
Relief a n d
rehabilitation
Financial
aid
$2.977,670
367,152,841
913,494
366, 239, 347
971
17,800,000
1,759,204
1, 585, 629
1, 585, 629
815,355
770, 274
815, 355
770.274
1,802,644
34, 900, 000
34,900,000
11,137, 962,893
10, 940, 000, 000
17,005,388
180,957, 505
10, 940,000, 000
16,940,6667666
320,834, 296
32,100, 000
719,122
288,015,174
32,100, 000
32,100,000
1,802,644
197,962,893
17,005,388
180,957, 505
288, 734, 296
719,122
288,015,174
6, 006,841
6, 006,841
3, 988, 967
2, 017, 874
3,988, 967
2,017,874
308,859,151
308,859,151
598, 751,192
598, 751,192
231, 518,718
277, 229, 029
90, 003,445
231,518,718
277, 229,029
# 90,003,445
1, 918, 309, 904
1, 822, 200, 000
8.271,774
86,499, 284
1, 822. 200, 000
1,338,846
1,822, 200, 666
96,109, 904
8,271,774
86,499, 284
1.338,846
» Some of these items were outright grants, while others were subject to negotiations as to terms of repayment . The amounts of credits extended or cash received as a result of negotiations has been deducted from
these
amounts.
a
See explanatory note which follows.
Source: Clearing Office for Foreign Transactions, Department of Commerce.
EXPLANATORY NOTE
OTHER FINANCIAL ASSISTANCE
The aid to Greece and Turkey, and the post-UNRRA programs were initiated
before June 30, 1947. However, reporting procedures were not established and
these programs are not included in the data in this appendix. Some small
activity had taken place with the funds advanced to the State Department by the
Reconstruction Finance Corporation under Public Laws 75 and 84, Eightieth
Congress, respectively; appropriations for the programs were not made until after
June 30, 1947.
Lend-lease
Lend-lease-aid figures presented in table 15 reflect the estimated value of such
aid furnished on a grant basis (often referred to as straight lend-lease). This
40
FOREIGN ASSETS AND LIABILITIES OF THE UNITED STATES
estimate is derived by reduction of the gross lend-lease-aid totals by the amount
of (1) lend-lease aid furnished on a credit basis, including the amount of credit
retroactively determined in settlements; (2) the amount of cash received in lendlease settlements; (3) lend-lease aid originally furnished on a cash basis; and
(4) the military civilian supplies program for Italy (so-called YB program), made
available from lend-lease appropriated funds, which is excluded because of its
inclusion in the relief and rehabilitation total. The grants totals include approximately $300,000,000 in silver and ships and other goods of undetermined value
which are to be returned to the United States Government. Due to the fact that
data on retransfers (mainly by the United Kingdom) of lend-lease goods to third
countries are not available and therefore have never been included in the lendlease records, the total cash and credit lend-lease for certain smaller countries
exceeds the aid recorded. The original lend-lease data are derived from the
official fiscal records maintained by lend-lease fiscal operations, Treasury Department.
Lend-lease estimates are broken down by requisitioning governments and are
shown only for major areas. Thus grants appear against the United Kingdom
for the British Commonwealth, against France for all French areas, etc., and for
the American Republics, in total against the entry "Unclassified American Republics." Hence, the other financial assistance grants-data totals in table 15 and
particularly the figures for individual countries, are arithmetic sums including an
estimate and must be interpreted in the light of these qualifications.
Relief and rehabilitation
Transactions covered.—This table covers data on relief and rehabilitation
financed and furnished by the United States Government to foreign governments
or other foreign entities abroad, directly or through international organizations.
Specifically, relief and rehabilitation covers:
1. Military civilian supplies, including (a) sales and issues of civilian supplies
by the Navy Department on the Pacific islands; (b) supplies furnished by the
United States Army for civilian use abroad; and (c) supplies financed from lendlease appropriations and furnished to the War Department for the Italian relief
program.
2. Other than military civilian supplies, including supplies, services, and funds
furnished by the United States Government to international or national agencies
for relief abroad, in particular to UNRRA, the Intergovernmental Committee on
Refugees, and the American Red Cross.
The War Department reports do not reflect the diversion of the stock pile in
the Balkans to UNRRA, although the UNRRA data include $28,000,000 representing the estimate of the value of the United States share of this stock pile
remaining from the combined supply operation in the Balkans, to which the United
States Government originally contributed $90,000,000 in supplies. The relief and
rehabilitation totals in this report are therefore overstated, in the cumulatives,
by approximately $28,000,000.
The United States Army has individual responsibility for furnishing civilian
supplies necessary to prevent disease and unrest that would endanger the occupying forces in Japan, the Ryukyu Islands, and the United States zones of Korea
and Austria. Since January 1, 1947, when the United States and British zones
were economically integrated, expenses for civilian supplies in the German bizone
were to be split on a 50-50 basis with the United Kingdom. For operating purposes, all shipments which arrived in Germany after January 1, 1947, were considered bizonal; however, some shipments are still being made to the bizone on an
individual-responsibility basis. The shipments on the basis of individual responsibility and some shipments procured by the War Department with United Kingdom funds are included in this report in the data presented for Germany.
The data on relief and rehabilitation provided through UNRRA cover only
those goods, services, and funds provided by the United States Government. The
data shown on United States contributions to UNRRA through June 30, 1947,
include $94,000,000 in supplies transferred to UNRRA by the War Department
and the Office of Foreign Liquidation Commissioner, without reimbursement,
under the authority of section 202, of the first UNRRA appropriation act. Of
this, $13,000,000 represented part of the Balkan stock-pile transfer by the War
Department.
In most cases UNRRA shipments are destined for the country where they are
to be used, and data are reported accordingly. In some instances, however (for
example, in the case of certain shipments to Egypt that were actually used in
Balkan refugee camps), goods were later transshipped and the reported country
of destination was not the country actually utilizing the supplies. The dollar
value of supplies so transshipped is small relative to the total. The shipments to
FOREIGN ASSETS AND LIABILITIES OF THE UNITED STATES
41
Norway, Switzerland, and (mostly) to the United Kingdom represent replacement
from the United States, of commodity advances made by these countries to the
actual recipient area. Food packages procured from the War Refugee Board in
Switzerland are included in the UNRRA unclassified items since no country breakdown as'to distribution is available. UNRRA supplies unclassified by country
also include (July 1, 1944, through June 30, 1947) $35,927,378 representing supplies transferred to UNRRA but reported to be in warehouses in the United States,
and $28,718,722 representing surplus procurement overseas for which complete
information is not available.
Cumulative transfers to UNRRA reported through June 30, 1947, are short by
about $175,000,000 from the total available funds of $2,700,000,000. This represents mostly recording lag as of June 30, 1947.
Financial aid
Transactions covered.—This table covers data on financial-aid transactions including direct expenditures or expenditures through controlled or affiliated agencies
for the benefit of foreign countries; grants of cash, materials, equipment, or services which do not create an obligation to repay ori the part of the recipient; and
cash advances to foreign governments with the definitive terms upon which they
are made available left to future determination. Excluded from the data on
financial aid are transactions which create an obligation of a foreign government
or entity to the United States Government and grants of cash, materials, equipment, or services under lend-lease or relief programs. Specifically, financial aid
covers:
1. Aid in cultural and economic programs for the American Republics, as
reported by the former Office of Inter-American Affairs (transferred to the State
Department by Executive Order 9710), except for $2,434,729 committed and
disbursed by the Reconstruction Finance Corporation, Office of Defense Supplies.
2. Aid to China, reported by Treasury Department.
3. Financial aid under the first three titles of the Philippine Rehabilitation Act
of 1946, as follows: (a) Title I, disbursements for compensation for war-damage
claims and related administrative expenses, $923,653 reported by the PWDC;
(b) title II, fair value of surplus property transferred, $53,959,000 (as of May 31,
1947) reported by the OFLC; and (c) title III, disbursements for the restoration
and improvement of public property and essential public services, $6,500,746
reported by the agencies to which the State Department has allocated funds for
executing the programs.
C. INSTALLATIONS AND SURPLUS PROPERTY ABROAD
Information, as called for in item 8, is available regarding properties
held by the State Department for use as embassies and legations in
connection with its normal operations. D a t a with respect to installations of a military nature have been presented to the Committee on
Finance as a restricted document.
Installations of both types held abroad by the United States Government amounted to $1,600,000,000 on June 30, 1947, of which
$1,573,000,000 was the cost of military installations and $22,000,000
the cost of State Department property. This compares with a high
of $4,200,000,000, representing the total United States cost of all
installations held or acquired abroad at any time during the war or
postwar periods.
The cost of State Department property is shown in table 16. The .
value of these properties has increased in recent years, largely as a
result of activities under Public Law 547, Seventy-ninth Congress,
which provided for an appropriation not to exceed $125,000,000, of
which $110,000,000 shall be available exclusively for payments representing the value of property or credits acquired through lend-lease
settlements, the disposal of surplus property abroad, or otherwise.
The State Department has reported acquisitions at cost, through
December 31, 1946, of approximately $6,500,000 as a result of this
program.
69140—48
4
42
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
T A B L E 16.—Cost of State Department property in foreign countries, to which title
was acquired before Dec. 81, 19^6
[ I n t h o u s a n d s of dollars]
Property acquired-
Country
Africa:
Belgian Congo..
B r i t i s h Africa..
Egypt
Ethiopia
Liberia
Morocco
T o t a l , Africa..
Asia:
Arabia
China
__..
India
_*-..
Iran
Iraq
Japan
Korea
Malaya
Philippine Republic
Penang, Straits Settlements _
Siam
Turkey
T o t a l , Asia-
O u t of a p propriated
funds
U n d e r lendlease a n d
surplus
property
agreements1
52
614
158
16
523
81
72
1,197
4
24
2,272
25
27
183
2,152
2,654
Europe:
Albania
Austria
Czechoslovakia...
Denmark
Finland
France
Germany
!_._
Italy
Norway
Spain
Sweden
United Kingdom.
240
2,742
1,763
1,105
125
276
240
131
" 1.260"
Total, E u r o p e . -
6,885
3,191
L a t i n America:
Argentina
British Honduras
Brazil
Chile
Colombia
Costa Rica
Cuba
Dominican Republic
Ecuador
Haiti
Mexico
Netherlands West Indies _
Nicaragua
Panama
Paraguay
Peru
E l Salvador
Uruguay
Venezuela
Total, Latin America.
North America:
Canada
Greenland
Newfoundland _
Total, North AmericaSee footnotes a t end of t a b l e , p . 43.
84
59
120
75
1,360
15
1. 031
158
33
40
455
201
28
129
214
197
356
32
185
116
206
35
4,789
1,866
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 16.—Cost of State Department property
was acquired before Dec. 31,
in foreign countries,
1946—Continued
to which
43
title
[In thousands of dollars]
Property acquired—
Country
Oceania:
Australia
New Caledonia
Society Islands
Out of appropriated
funds
171
.
5
Total, Oceania
Total, all areas
Under lendlease and
surplus
property
agreements 1
._
40
Total
171
40
5
176
40
216
15,146
6,519
21, 665
1
Value is the dollar equivalent of local currency cost at official rate.
2 Properties held were given to the United States.
Source: Department of State.
SURPLUS PROPERTY INVENTORY
Detailed statements by standard commodity classification and
countries of location as of December 31, 1946, as requested in item 8,
are available in the report of the Clearing Office for Foreign Transactions. In view of the fact that this information is now out of date
and would be practically meaningless, it is not included in this report.
Except for certain minor amounts of movable goods and some aircraft and maritime equipment, almost all of the surplus property
located overseas outside Europe has been committed for sale. The
inventory of surplus property in the European areas as of September
30, at original cost, is shown by countries in table 17. Strenuous
efforts are being made to dispose of the property represented by this
inventory, and sales are taking place every day, with the result that
much of the property outside Germany represented by this inventory
is not, in fact, available today.
T A B L E 17.—Property in Europe, declared surplus by United
remaining for disposal as of Sept. SO, 1947
States
agencies
[Cost to Government, in thousands of dollars]
COUNTRY—continued
Austria
485
46
Belgium a n d Luxemburg
3 Gibraltar
4, 856
Czechoslovakia
84 M a l t a
Denmark
61 Union of Soviet Socialist R e publics
15
France (and African posses21
44 Yugoslavia
sions)
G ermany
637, 294
Subtotal
656,395
3
Greece
Libya
6,653
Liberia
93
RETURNED LEND-LEASE
Netherlands
107
3,711 Ireland
1
Norway
Portugal
206 Italy
294
1,244
Azores
Malta
2, 015
Spain
146 United Kingdom
25,287
Sweden
5
Switzerland
5
Subtotal
27, 597
United Kingdom
1,201
112
Gold Coast
Grand tot al
683, 992
I I . I N T E R N A T I O N A L I N V E S T M E N T POSITION OF
T H E U N I T E D STATES A N D GOLD R E S E R V E S OF FOREIGN COUNTRIES
CHAPTER
The first eight items in Senate Resolution 103 are concerned with
American investments abroad, foreign investments in the United
States, and gold reserves of foreign countries. Items 2, 3, and 8 deal
with foreign assets of the United States Government itself and are
considered in chapter I. This chapter will consider items 1, 4, 5, 6,
and 16, while item 7—which, unlike the others, is not of a statistical
nature—is reserved for separate treatment in chapter I I I .
Item 1. The grand total of indebtedness on loans, investments, commitments,
or other obligations outstanding as of December 31, 1946, of all foreign governments, their agencies, and their private citizens to the United States Government,
its agencies, and its private citizens; and the same shown separately for public
indebtedness and for private indebtedness.
Item 4. The amounts of American portfolio and direct investments abroad, by
country, as of the end of 1914, 1932, 1939, and 1946.
Item 5. The amount of foreign portfolio and direct investments in the United
States, by country, at the end of 1914, 1932, 1939, and 1946.
Item 6. Gold reserves, dollar balances, and other hard-money assets, as of the
end of 1946, of countries whose governments are now in debt to the United
States Government or with whom loan and investment discussions have been
held by any American official since 1937.
Item 16. Assuming the ultimate necessity of gold settlements under estimated
total economic transactions (exclusive of extensions of American loans and
credits) between foreign countries and the United States within the next 5 years,
what gold is available for such settlements and how is it distributed so that
nations likely to be liable for gold settlements to the United States will have the
gold to make them?
This chapter is divided into four sections. Section A contains data
regarding American-owned assets in foreign countries. Section B
relates to foreign-owned United States assets. Sections C and D
relate to special phases of foreign-owned gold and dollar assets,
particularly action in foreign countries with respect to the mobilization of their dollar assets and to the need for some reserves and working balances.
The data presented in the accompanying tables include direct investments (mainly branches and subsidiaries of American companies),
portfolio investments (stocks and bonds, including government
bonds) and other investments, such as real estate and interests in
estates and trusts. Short-term refers to claims payable on demand
or with an original maturity of less than 1 year; all other assets
are classed as long-term. The following assets are not included in any
of the tables, unless otherwise clearly indicated:
1. Government property held for governmental use, such as embassies and military installations.
2. Personal property and other movable goods.
3. Property of religious and charitable organizations.
I n general, the tables on American investments abroad include the
assets of all residents of the United States, regardless of citizenship,
while table 26, on foreign investments in the United States, includes
the assets of Americans permanently residing abroad. Most of the
44
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
45
data on international investments have been collected in connection
with balance-of-payments analysis, where residence rather than
citizenship is the criterion employed.
The United States includes not only continental United States b u t
Alaska, Hawaii, Puerto Rico, the Canal Zone, the Virgin Islands,
and certain other island possessions of the Unite States.
The bases of valuation differ somewhat from table to table, and are
indicated, together with sources, at the foot of each table. The term
"government," as it applies to foreign countries, includes local and
provincial, as well as national governmental entities. T h e intergovernmental debts arising out of World W a r I have been omitted from
all tables, b u t have been discussed in detail in chapter I.
Table 18, showing the estimated value of foreign assets owned in the
United States, by government and private categories, is submitted
in answer to item 1 in Senate Resolution 103:
T A B L E 18.—Estimated value of American-owned
assets in foreign
Government and private categories, end of 1946
countries,
by
[In millions of dollars]
United States owner
Foreign "debtor"
Government
Private
._.
_
_.
TotaU
Total
Private
Government
Long-term
Short-term
Long-term
Short-term
4,680
35
510
55
2,025
12,355
1,225
7,215
13, 670
4,715
565
14,380
1,225
20,885
NOTE.—U. S. Government assets at stated value; private assets estimated on the following bases: Direct
investments, book value; securities, market value; deposits, stated value; and other assets, estimated value.
Source: Based on calculations made in the Department of Commerce and the Treasury Department.
A.
AMERICAN-OWNED
A S S E T S IN F O R E I G N
COUNTRIES
D a t a by country are not available for the exact dates specified in
item 4 of Senate ^Resolution 103, although the following global estimates have been made (in billions of dollars):
July 1, 1914
Dec. 31, 1931
3. 5 | Dec. 31, 1939
15. 9 | Dec. 31, 1946
12.5
20. 9
Tables 19, 20, 21, and 22 show details by country for the years
nearest the specified ones for which data are available. Table 22
differs from the others in t h a t it includes the property of American
citizens residing abroad. A break-down of the 1946 total by types of
assets is presented in table 23.
Estimates for 1939, 1943, and 1946 are based on the most complete
coverage of American assets ever obtained: All known forms of investment are included and for 1939 and 1946 omission estimates
were included for assets not reported for 1943. However, the figures
for American investments abroad on M a y 31, 1943 (table 22), also
include the property of American citizens residing abroad, personal
property, and other movable goods, and the property of religious and
charitable organizations, which are not included in the data for other
years. Moreover, the data for 1943 include about half a billion
dollars of securities which are classified as direct investments in 1939
and 1946. The data for 1914, 1933, and 1946 are less complete in
46
FOREIGN ASSETS A N D LIABILITIES OF T H E UNITED STATES
almost every category of investment and in general exclude the assets
in foreign countries of American citizens residing abroad.
T A B L E 19.—Estimated value of American-owned
1914
assets in foreign countries, July 1,
[In millions of dollars]
Area
Africa
Asia
Europe
Portfolio
_ ._
Latin America:
West Indies
.
Mexico
Central America
South America
...
.
..
_
._
Total, Latin America
North America: Canada
Oceania
International (hanking)
..
0.2
126.4
118.5
13.0
119.5
573.3
13.2
245.9
691.8
55.0
266.4
3.6
42.6
281.3
587.1
89.6
323.1
336.3
853.5
93.2
365.7
367.6
1,281.1
1,648.7
248.8
618.4
17.0
30.0
867.2
17.0
30.0
861.5
2,652.3
3,513.8
.„
Total, all areas
_
Total
Direct
NOTE.—Value of short-term assets believed to be negligible. Portfolio investments generally at par.
Direct investments at book values.
Source: Lewis, Cleona, America's Stake in International Investments, The Brookings Institution
Washington, D. C , 1938, p. 606.
T A B L E 20.—Estimated value of American-owned
assets in foreign countries, 1933
[In millions of dollars]
Long-term
Country
Direct
Africa:
Algeria
British Africa
Egypt
French Africa
Portuguese Africa
Other Africa
Total, Africa
Portfolio
3
'_
_
Asia:
British Malaya
China
India
Iraq
Japan
Netherlands Indies
Palestine, Cyprus, Syria
Iran
Philippine Islands
I
Europe:
Austria
Belgium
Bulgaria
Czechoslovakia
Danzig
Denmark
Eire
Estonia
Finland
France
._
Germany
Greece
Hungary
See footnotes at end of table, p . 47.
(*)
131
(*)
(*)
(*)
20
132
31
20
418
191
8
1
157
2
92
65
20
132
31
20
418
191
8
1
157
425
553
978
16
60
1
5
4
17
85
160
14
28
3
131
3
4
63
193
977
42
100
101
220
15
33
7
148
5
6
64
2
1
155
_.
131
2
129
2
1
1
1
3
98
7
1
9
13
3
98
7
1
9
13
264
6
13
7
358
123
Total
longand
shortterm *
(*)
(*)
(*)
98
7
1
9
11
20
125
31
20
60
68
8
1
Total, Asia
Total
long
term
Shortterm i
. 348
1,241
48
113 1
8(*)
8
8
(*)
<•)
(2)
19
O
(*)
(*)
(*)
<*)
(*)
978
120
220
15
33
7
148
5
6
64
415
67
261
1,502
(*)'30
48
143
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 20.—Estimated value of American-owned
Continued
assets in foreign
countries,
47
1933—
[In millions of dollars]
•
Long-term
Country
Direct
E urope—C o n t i n u e d
Italy
1
L a t v i a -_
Lithuania
Luxemburg.
Netherlands
Norway
1
Poland
P o r t u g a l . __i
Rumania.Saar T e r r i t o r y .
S p a i n __
Sweden.
Switzerland
Turkey
U n i o n of Soviet Socialist R e p u b l i c s
United Kingdom
Yugoslavia
_
_ ._
__
_.
__
_.
_
."___
Total, West Indies
C e n t r a l A m e r i c a a n d Mexico:
Costa Rica
Guatemala
Honduras . .
'
Nicaragua
__
Panama
Salvador..
Mexico
...
T o t a l , C e n t r a l A m e r i c a a n d Mexico
S o u t h America:
Argentina
Bolivia
Brazil
Chile _•
Colombia
Ecuador
Guianas
Paraguay
Peru
Uruguay
Venezuela
,
:_.
_
Total
longand
short-1
term
193
380
8
4
7
129
192
153
13
49
3
70
51
45
24
12
805
78
651
4,783
531
8
15
3
3
30
15
14
12
81
70
1,485
2,647
4,132
840
70
14
21
30
111
15
11
951
85
25
21
30
(*)
(*)
C)
(*)
C)
951
85
25
21
30
975
137
1,112
(*)
1,112
20
68
66
13
25
29
632
12
4
17.
4
3
32
72
66
13
42
33
635
(*)
(*)
(*)
(•)
(*)
(*)
(*)
32
72
66
13
42
33
635
853
40
893
(*)
893
345
62
197
411
124
12
6
13
116
29
234
408
56
355
271
148
3
753
118
552
682
272
15
6
13
189
86
234
<*)
(•)
(*)
(*)
C)
C)
C)
C)
(*)
C)
753
118
552
682
272
15
6
13
189
86
234
C)
2,920
.»__
-.
Shortterm 1
363
8
4
7
111
192
153
13
49
3
70
51
33
24
12
612
78
67
21
18
10
Total, Europe
L a t i n America:
West Indies:
Cuba
Dominican Republic
Haiti
Jamaica
Other West Indies
116
2
2
1
44
22
50
13
34
Portfolio
Total
long
term
247
6
2
6
67
170
103
73
57
17
(•)
<*)
(*)
18
<*)
(*)
(•)
(*)
C)
12
(*)
C)
(*)
C)
Total, South America
1,549
1,371
2,920
Total, Latin America
3,377
1,548
4,925
160
5,085
N o r t h America: C a n a d a a n d N e w f o u n d l a n d
Oceania: Australia a n d N e w Zealand
2,070
156
1,880
257
3,950
413
2 32
3,982
413
T o t a l , all a r e a s .
Add: Bank capital3
. _ _ __
D e d u c t : E s t i m a t e d n e t p u r c h a s e s b y foreigners
7,642
125
6,887
899
855
14, 529
125
855
15,428
125
855
6,032
13,799
899
14,698
!Net t o t a l
3
_. .
7,767
*Not shown separately.
i Area totals may include short-term data that are not available for specific countries.
country data are therefore less than the totals shown for Europe and Latin America.
J
Asia, Africa, and Oceania total $56,000,000," added to "Total, all areas."
3 Not readily allocable by specific countries.
()
The sums of
NOTE.—Direct investments, book value; portfolio, par value; short-term, stated value.
Source: Department of Commerce, Trade Information Bulletin No. 819, The Balance of International
Payments of the United States in 1933, pp. 53-62, Government Printing Office, 1934.
48
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 21.—Estimated value of American-owned
assets in foreign countries^ 1940
[In millions of dollars]
Long-term
Country
Africa:
B r i t i s h AfricaO t h e r Africa
.
T o t a l , Africa
Portfolio
Total
longterm
78
53
2
78
35
(*)
(*)
78
55
131
2
133
(*)
133
46
38
71
91
176
2 13
(*)
37
2 59
144
71
128
176
59
200
71
128
176
422
156
578
120
698
17
117
<349
75
18
26
541
277
15
8
U03
74
2 305
32
125
<452
149
18
26
541
2 582
2
6
40
2
2
1
25
31
34
131
492
151
20
27
566
613
1,420
505
1,925
109
2,034
560
114
61
13
621
127
(*)
(*)
621
127
674
74
748
(*)
748
3
23
71
2 358
143
(*)
(*)
(*)
71
358
143
546
26
572
(*)
572
388
240
414
112
262
135
191
255
184
122
579
495
598
234
262
276
(•)
(*)
(*)
(*)
(*)
(*)
579
495
598
234
262
276
1,551
893
2,444
(*)
. ._
2,771
993
3,764
129
3,893
„ _ .
2,103
1,390
3,493
46
3,539
98
22
95
193
22
(*)
(*)
120
95
215
C)
6 33 5 1, 000
1,033
56
1,039
11,141
410
11, 551
...
-~
Asia:
China
Japan
N e t h e r l a n d s Indies.__ ._
Philippine Islands
O t h e r Asia
__
__.__
__
T o t a l , Asia
Europe:
Belgium..
France .
.
.
_ _
Germany . . .
.
Italy
Netherlands
Sweden
United Kingdom
Other Europe
__ _.
. . . - ._•-
__
..
__ _
^
__
__
Total, Europe
_
..
Latin America:
West Indies:
Cuba
Other West Indies
...
. .
__
Total, West Indies
Central America a n d Mexico:
Guatemala
Mexico
Other Central America
--
_
T o t a l , C e n t r a l A m e r i c a a n d Mexico
South America:
Argentina
.
Brazil
Chile
Columbia
Venezuela.. _ . .
Other South America...
_ _. _
_ __ _
. _
Total, South America
Total, L a t i n America
-
North America, C a n a d a and Newfoundland _ .
Oceania:
Australia.
N e w Zealand
...
_. ._
T o t a l , Oceania
International-__ _._
T o t a l , all areas
__ __
___
.
.,
_.
Total
longand
shortterm i
Direct
.
_
Shortterm i
...
...
68
358
12ff
7,000
106
(2)
141
4,141
3 56
(*)
(*)
2,44
193
22
215
*Not shown separately.
1
Area totals may include short-term data that are not available for specific countries. The sums of the
country
data are therefore less than the totals shown for Asia and Latin America.
2
Certain
bond issues of China, Mexico, and Russia, long in default, are omitted.
3
Includes Chosen and Manchuria.
4
Includes
Austria.
6
Holdings not readily allocable by countries.
NOTE.—Direct investments, at book value: portofolio investments at par value; short-term, stated value.
Data not comparable with global totals for 1939 and 1946 presented in text, which were based on more complete data from the Treasury Department census.
Source: Long-term data: Hearings before the Committee on Banking and Currency, House of Representatives, 79th Cong., 1st sess. on Bretton Woods Agreements Act. vol. 1, pp. 299-307.
Short-term data: Treasury Bulletin, March 1941.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 22.—Value of American-owned
assets in foreign countries,
49
May 81, 1943
[In millions of dollars]
P r o p e r t y classes
Country
N o r t h America:
Canada..
Newfoundland
French North America
Total, North America
C e n t r a l America a n d Mexico:
British Honduras
Costa Rica
Guatemala
Honduras
Nicaragua
Panama.
E l Salvador
Mexico
Total, Central America and
Mexico
West Indies and Bermuda:
Bahamas
__
Bermuda.
British W e s t I n d i e s , n . e. s
Cuba
Dominican Republic.
French West Indies..
__ _
Haiti...
_-_
Jamaica
Netherlands West Indies
Total, West Indies and
B e r m u d a _.~
South America:
Argentina
_._
._
Bolivia
B r a z i l . . . .__
British G u i a n a . _._
Chile
Colombia.
__
Ecuador
.
French Guiana
Paraguay
__
Peru
.
Surinam..
Uruguay
Venezuela
Total, South America..
_
Europe:
Albania
Austria
Belgium
British M e d i t e r r a n e a n possessions
.....
_ __
Bulgaria
Czechoslovakia
Danzig
Denmark
_
Eire
Estonia
Finland
France
Germany
_
Greece.
Hungary
Iceland
Italy
Latvia
Lichtenstein
_
Lithuania...
Luxemburg.
_.
Netherlands
• Norway
__
Poland
Portugal
_
Rumania
Spain
Sweden
See footnotes at end of table, p. 50.
Interests
in controlled enterprises i
1,707.0
20.5
.2
1, 727. 7
.7
30.9
87.3
37.2
4.2
110.8
15.1
287.3
Securities
2,349.5
5.4
2.354.9
2
Bullion,
currency,
and deposits
Real
property
76.1
.1
76.5
.1
76.2
76.7
2
2
()
()
1.1
1.4
.9
1.0
20.1
1.7
21.4
.6
.3
.4
()
2.9
.2
13.0
.4
1.6
.4
5.9
3.6
1.0
21.7
(2)
Interests
in e s t a t e s
and
trusts
23.7
.2
186.3
2 .9
23.9
187.1
(22)
( 2)
()
2.4
16.1
(3)
784.0
.2
1.3
2.4
1.7
21.5
3.2
.1
.8
.5
3.0
23.0
15.6
11.7
590 5
80.5
.5
17.7
8.5
38.0
76.1
2.7
4.9
17.6
1.8
7.7
529.0
71.5
.1
14.2
6.2
32.6
.5
3.9
.5
24.1
3.2
.3
1.3
.5
2.3
.3
.3
.2
.5
.3
3.3
5.7
1.2
11.8
21.8
.5
.1
1.7
.5
680.7
36.3
381.9
3
84.1
6.0
52.6
.1
39.1
31.4
.3
()
236.1
2.6
329.3
117.6
3
( 3)
()
9.4
71.2
7.8
5.8
372.9
1, 559. 5
(2)
40.4
63.2
6.1
6.6
67.1
1.1
22.1
4.7
.6
6.1
171.2
513.6
11.6
21.7
.2
90. Q
3.8
1.7
2.8
2.7
59.7
30.2
108.8
14.1
52.4
124.3
32.9
(2)
11.8
(2)
8.8
7.8
242.0
8.3
25.3
(2)
1.4
11.7
.2
23.2
.6
.3
1.8
40.8
125.4
4.3
13.0
(2)
51.4
.3
.2
.1
2.5
84.6
16.5
20.0
1.8
1.9
35.7
6.6
6.0
25.5
3.0
34.4
785.9
4.8
2.9
.5
4.5
.2
2.7
3.0
.5
2 1.5
22.5
.6
38.2
.4
16.6
25.8
3
.4
4.1
.3
4.3
10.4
128.3
497.5
24.0
334.7
3.3
388.1
178.9
13.3
.3
10.0
88.8
8.6
19.3
398.6
1,965.6
.1
29.2
15.6
1.3
138.1
123.3
(2) •
6.1
11.8
148.0
2.2
52.5
6.8
1.4
10.2
397.0
1, 079.8
67.0
62.3
.9
272.7
8.3
2.5
4.9
8.4
238.2
56.3
220.2
19.4
66.1
176.7
46.0
(2)
2
(2)
1.6
36.7
93 0
42.2
13.5
154.4
20.4
422.2
106.0
34.6
.5
.7
.5
4,419.2
27.2
• .2
4,446.5
(3)
17.4
()
Total
.9
47.6
2.1
.6
1.4
()
.9
3.7
2.4
3
()
(3)
(2)
573.6
(2)
Miscellaneous
2.6
()
.3
1.0
.1
(2)
(2)
.7
.2
.8
10.5
.2
1.0
.3
.2
6.4
22.4
()
.1
2 .1
()
2
()
2 .1
()
.3
• 2.7
(2)
1.2
46.1
16.7
(2)
(2)
(2)
(2)
8.2
1.3
1.1
13.7
.1
1.0
.3
(2)
1.2
8.3
56.6
6.1
1.7
.1
34.3
.4
(2)
(2)
.2
5.6
1.0
4.6
.5
.7
4.5
1.7
1.4
28.4
.5
2.3
.5
.3
.3
74.5
189.4
37.1
14.2
2
()
71.1
2.5
.1
1.8
1.5
37.0
2.2
56.4
.6
4.7
5.4
4.7
5.9
1.2
.2
6.2
(2)
1.2
.3
(2)
14.2
50.7
1.9
1.3
3.6
.1
2 .3
()
.8
8.4
.3
13.0
.2
1.1
.6
.5
(3)
( 3)
()
1.1
20.9
.3
2.7
.4
.2
.6
88.0
144.0
6.0
10.4
.8
22.2
1.2
.2
.2
.8
43.0
6.1
17.4
2.2
5.4
6.2
2.6
50
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 22.—Value of American-owned assets in foreign countries, May SI,
Co n t i n u e d
1943—
[In millions of dollars]
P r o p e r t y classes
Country
Europe—Continued
Switzerland
_.
U n i o n of Soviet Socialist R e p u b l i c s - -_
United Kingdom
_._
Yugoslavia
Total, Europe
Africa:
Algeria
__
Belgian Africa
... _ _
B r i t i s h E a s t Africa
- B r i t i s h S o u t h Africa
B r i t i s h W e s t Africa
Egypt
Ethiopia.
._
F r e n c h Africa
F r e n c h Morocco
F r e n c h W e s t Africa
I t a l i a n Africa
Liberia
P o r t u g u e s e Africa
S o a n i s h Africa
__
,
Tangier
Tunisia _
U n i o n of S o u t h Africa
T o t a l , Africa
'._
Asia:
Afghanistan
Arabia (autonomous)
B r i t i s h A r a b i a . __
British Malaya
Burma
China
-___
_
F r e n c h Asia
Hong Kong
India
Iran.
Iraq _
Japan_
__.
Palestine a n d T r a n s j o r d a n . . . .
P h i l i p p i n e R e p u b l i c - __ __ __
P o r t u g u e s e Asia _
Syria
,
Thailand
Turkey
O t h e r Asia ( a u t o n o m o u s )
T o t a l , Asia
Oceania:
Australia...
B r i t i s h Oceania
F r e n c h Oceania
N e w Zealand
T o t a l , Oceania.__ . . ._
T o t a l , all areas _
Interests
in controlled enterprises i
45.1
(2)
520.2
22.0
2, 047. 0
4.9
5.0
4.2
19.1
6.0
21.0
.2
.5
3.0
3.2
.3
18.1
2.2
.2
.8
.8
50.7
140.2
(3)
6.3
3.3
29.4
507.0
114.7
.3
.4
13.8
129.2
7, 365.0
Real
property
19.2
5.2
9.6
.6
312.4
3.9
814.1
8.5
54.5
.7
222.1
.5
17.8
9.1
634.9
(2)
(2)
.8
.4
1.0
.6
5.1
2
()
.5
2 .1
()
1.1
(2)
.2
.2
(2)
22.8
32.9
(3)
(3)
27.0
2.8
87.1
1.0
-0.2
65.3
1.8
2.5
43.7
80.3
8.0
99.3
Bullion,
currency,
and deposits
Securities
.6
1.8
x
(2)
2
2.9
.4
1.2
3.5
()
(2)
43.7
3.2
2 1.9
36.4
()
.1
1.7
97.4
41.2
(2)
1.2
42.4
3,667. 7
.1
.2
.1
.3
.6
(2)
.1
(2)
.2
(2)
(22)
(2 )
()
.2
.3
.3
.3
(2)
1.8
(2)
.1
1.7
.1
.1
(2)
(2)
1.7
3.3
(3)
(2)
.2
1.1
(2)
.5
1.6
(2)
.2
16.7
• .7
2.0
3 2.7
()
2
.1
()
.5
.5
4.0
9.9
Interests
in e s t a t e s
and
trusts
15.0
98.7
33.6
11.4
161.6
3.6
88.9
3.2
538.4
13.2
1,027.6
50.3
4, 418. 3
.1
.3
.2
.3
.7
1.6
5.2
6.5
5.3
20.8
7.7
30.3
.2
.7
6.0
3.4
.7
19.3
2.3
.6
1.6
1.6
86.6
198.9
(2)
(2)
(2)
(22)
C)
(2)
.5
.8
.1
.1
.2
(2)
8.5
(2)
.2
.3
• .7
(2)
(2)
()
40.4
10.0
2.1
1.2
3.1
(2)
.6
2.7
36472"
.1
.1
.1
.2
.1
.3
6.9
11.8
(23)
()
(3)
1.9
.2
20.0
.3
3.0
4.2
1.0
.5
13.3
1.7
2.0
20.8
3
()
.4
.5
4.9
.8
.1
25.9
2
(2)
.1
.7
()
(2)
1.4
.1
.2
2
1.4
.1
11.0
(3)
75.3
6.5
(2)
.3
.2
1.7
846.1
Total
4.6
(3)
.5
1.7
.2
.3
1.8
.3
13.1
7.2
Miscellaneous
.1
.1
1.4
8.0
3.2
210.1 1,089. 2
(2)
37.6
13.0
32.4
3.1
122.2
1.8
5.0
84.8
3.0
3.5
119.4
86.3
27.3
167.1
.4
8.2
3.9
36.9
2
()
755.9
168.8
.3
.8
17.3
187.1
* 13, 542. 2
" For statistical purposes only, control was determined on the basis of the ownership by one person or by
an affiliated group of persons of 25 percent or more of the voting stock of corporations, and analogous interests in partnerships and. other organizations.
2 Less than $50,000.
*4 Included in the totals.
It is estimated that less than $600,000,000 of foreign assets which should have been reported on Form
TFR-500 according to the regulations were actually not reported, a margin of error of less than 5 percent.
In addition, it is possible that property exempted from the reporting because of its small value may have
aggregated as much as $300,000,000.
All amounts given in this table are gross assets, without deduction for liabilities. Property reported
herein was collateral for indebtedness amounting to approximately $100,000,000.
NOTE.—The figures are rounded and will not necessarily add to the totals.
Source: Treasury Department, based on Census of American-Owned Assets in Foreign Countries ( T F R 500) Government Printing Office, 1947. Values as follows: Interests in controlled enterprise, book value;
securities, market value; deposits, principal amount; other assets*, estimated value.
FOREIGN ASSETS AND LIABILITIES OF THE UNITED STATES
51
TABLE 23.—Estimated value of American-owned assets in foreign countries,
end of 1946
[In millions of dollars]
United States investments abroad
Private United States investments
Long-term
Direct investments
Portfolio investments
Dollar bonds
Foreign currency securities
Estates and trusts
Other
Short-term
Deposits
Other
United States Government investments
Long-term
Short-term
20, 885
15, 605
14, 380
8, 500
5, 880
1, 535
2, 900
210
1,235
1,225
4^0
785
5, 280
4, 715
565
'
NOTE.—Direct investments, book value; private securities, market value; government loans and shortterm assets, stated value.
Source: Based on Treasury Department, TFR-500 data, adjusted by the Department of Commerce and
Treasury Department on the basis of current information.
B.
F O R E I G N - O W N E D U N I T E D STATES
ASSETS
In the absence of by-country data for the dates specified in item 5 of
Senate Resolution 103, the following global estimates are supplied (in
billions of dollars):
July 1, 1914___.
Dec. 31, 1931
7. 21 Dec. 31, 1939
3. 8 | Dec. 31, 1946 (see table 27)
12. 8
16. 1
Again, details by country are shown only for certain years, namely,
1914, 1937, and 1941. See tables 24, 25, and 26.
Of the data presented in this section, the figures for 1939, 1941, and
1946 represent the most comprehensive coverage ever attained in this
field. AH known forms of investment are included and for 1939 and
1946 omission estimates were included for assets not reported in 1941.
However, the figures of foreign assets in the United States on June •
14, 1941 (table 26), include personal property and other movable
goods, and the property of religious and charitable institutions, which
are not included in the data for other years. The data for 1914 and
1937 are less complete in almost every category of investment. Unlike the estimates for other years, the 1937 figures exclude the assets
in the United States of Americans residing abroad. The 1914 data
partly include the value of such assets.
TABLE 24.—Estimated value of foreign-owned United States assets, July 1, 1914
[Par values, in millions of dollars]
Type of security
Country
Railroad
Direct investments
Total
Other
50
30
Austria-Hungary, Turkey, and Bulgaria 70
150
75
45
France
290
410
350
300
Germany
300
950
135
Netherlands
300
200
635
600
United Kingdom
850
4,250
2,800
50
95
275
Canada
1
i 130
50
420
90
All others
2 280
1,210
3 7,540
1,710
4,170
Total (par value)
3,933
1,607
1,210
3
7,200
Total (with common stock at market value).
1
Includes $82,000,000 of direct investments.
2
Includes $3,200,000 of direct investments.
3
Includes an estimated $450,000,000 of short-term credits for which a geographic break-down is not available.
Source: Lewis, Cleona, America's Stake in International Investments, Brookings Institution, Washington, D. C , 1938, p. 546.
52
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
T A B L E 25.—Value of foreign-owned
States assets, middle of 1937
United
[In millions of dollars]
Long-term
Portfolio
Country
Direct
Africa:
British Africa _
Ecvpt
Ethiopia
French Africa.. _
Liberia— __
Spanish Africa
Other Africa
Total, Africa
Asia:
British Malaya
China
_
French Indochina. _
India
Iran
_
Iraq
Japan., __ _
Netherlands Indies _. _
Palestine
___
Philippine Islands.. - .
Thailand (Siam)
Syria
_
Turkey
_
Total, Asia
_
Europe:
Albania
Austria
Belgium
_
Luxembourg
Monaco
.
_
.
Netherlands
Norway
Poland
_.
Portugal .
Rumania.Spain
Sweden
__
Switzerland...
_.
Union of Soviet Socialist
Republics
United Kingdom
Corporate
bonds
Miscellaneous
investments 1
2
6
I
1
2
(33)
()
3
()
(3)
(3)
6
1
(3)
41
(3)
(3)
3
()
(3)
(3)
10
()
()
(33)
()
(3)
57
71
6
5
70
2
6
1
5
1
1
29
(3)
12
()
(3)
(S)
8
8
(3)
12
3
50
15
10
11
"564
6
1
1
179
2
(3)
(3)
1
30
74
5
(3)
16
588
(3)
833
1
5
(3)
215
10
2
67
93
470
19
12
3
5
()
(3)
=
64
29
1
5
22
6
«1,482
1
5
3,043
3
(3)
(3)
( ).
3
3
11
4
5
1
1
8 237
25
3
8
1
4
1
2
1
12
6.
1
C3)
(3)
8
(3)
(3)
2
1
8
T5
(*)
(3)
12
(33)
()
48
7
5
28
3
()
(3)
1
160
(3)
9
3•142
()
(3)
5
17
1
1
*408
124
3 5
(3)
()
14
3 48
20
3
1
2
12
2
1
1
()
3
3
34
<3)
(8)
335
(3)
534
7
4
11
14
13
»970
10
2
2
21
51
38 763
8( )
2,743
15,3841
(3)
(»)
Shortterms
(•)
(•)
<*>
(*)
3
9
()
(3)
2
33
(3)
1
58
(3)
(3)
3
57
55
1
See footnotes at end of table, p . 53.
10
4
()
8
(3)
1
43
6
3 «48
1,337
Latin America:
West Indies:
British West Indies
Cuba
:
Dominican R e p u b l i c . .
Haiti
Netherlands West
Indies
Total, West Indies._.
1
(3)
2
(3)
(3)
(33)
()
1
4
1
3
3 12
3
1
1
10
Czechoslovakia
Danzig
Denmark'
Estonia
Finland
. _
France.
Germany
Greece _ _ _
Hungary
_
Iceland
Ireland (Eire) . . _
Italy
Lichtenstein
Common
and preferred
shares
Total
longterm i
30
26
2
58
(*)
(•)
(*)
(*)
(*)
(*)
O
(*)
(*)
<*)
<*)
<*)
(*)
(*)
(4)
(•)
(*)
(*)
C)
C)
C)
(*)
(*)
(*)
Total
long- and
shortterm l*
(3)
(3)
(*)
3
()
(33)
()
(3)
(3)
(*)
(*)
(•)
(*)
(*)
152
(*)
(•)
(*)
(*)
h
336
(*>392
1,346
(*)
8
8
(*)
2
1
15
1
58
12
48
7
5
28
1
<160
(3)
3
()
(3)
217
41
8
8 23
3
9
(33)
)
3
()
(3)
9
142
5
17
1
1
625
165
5
14
71
20
14
13
1,122
10
2
2
3
( ) 21
51
1,099
3
()
3,135
1
6,730
(83)
()
30
26
2
58
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 25.—Value of foreign-owned
United States assets, middle of
53
1937—Continued
[In millions of dollars]
Long-term
Portfolio
Country
Direct
Latin America—Continued
Central America and Mexico:
British Honduras.
Costa Rica
Guatemala..
Honduras
Nicaragua
Panama
Panama Canal Zone
' Salvador
Mexico _
Total, Central America and Mexico
South America:
Argentina
Bolivia
Brazil
British Guiana
Chile
Colombia
Ecuador
French Guiana
Paraguay
Peru
Surfnam
Uruguay
Venezuela
Total, South America
Total, Latin America.
North America:
Canada
N ewfoundland
Total, North America
Oceania:
Australia
New Zealand
Total, Oceania
__
Unknown
Total, all areas
Miscellaneous
investments l
2
2
10
2
5
2
19
2
19
2
6
29
(*)
9
C)
C)
(*)
(3)
(3)
(3)
Corporate
bonds
Shortterm 2
(*)
(*)
(•)
(*)
(•)
(*)
(*)
(*)
(*)
(33)
()
(3)
Common
and preferred
shares
Total
longterm i
1
2
8
(3)
(3)
(33)
()
3
()
3
()
1
1
1
1
(33)
3
(3)
(3)
3
()
2
2
1
8
2
1
2
(3)
(3)
(33)
2
1
1
1
3
5
18
2
1
()
3
()
(3)
2
1
2
(3)
2
1
(*)
(*)
(*)
(*)
(*)
(*)
8
(*)
5
2
40
10
22
127
5 586
13
«599
53
78
2
80
» 1,180
15
5
1,195
(*)
9
1
10
2
6
1
7
18
4
22
4
i 6, 907
(*)
(44)
()
24
19
76
463
1
2
3
4
17883"
()
6
11
463
1
• 3,808
.
53
2
565"
MJ5T
(*)
Total
long-and
shortterm i a
(3)
(3)
2
1
1
1
3
2
19
29
(3)
(3)
(33)
9
5
18
2
1
()
(3)
21
2
40
459
586
224
1,404
15
1,419
224
2 2,426
18
4
4 22
M
i 2 9} 333
1
Exclusive of $100,000,000 of estimated foreign holdings of United States National,State,and municipal
Government bonds. These holdings were estimated in total because of a lack of data for a by-country
distribution.
2 Area totals include short-term data that are not available for specific countries.
3 Less than $1,000,000.
4
Short-term investments of Africa, Asia, Oceania, and unknown totalled $397,000,000. This figure is not
shown in the total for any specific area but is included in the totals for all areas combined.
8 After deducting $148,000,000 from Canada and adding $3,000,000 to Belgium, $50,000,000 to France,
$20,000,000 to Netherlands, $30,000,000 to Switzerland, and $45,000,000 to United Kingdom. That amount
represents the estimated investment held by Canadian nominees for non-Canadian owners. No data
were
available on which to estimate similar holdings in other foreign countries.
6
To put the preferred stock in this figure on a market-value basis, it would be necessary to deduct $117,000,000 from this total.
4
*Not shown separately.
NOTE.- -Direct investments, book value; bonds and preferred stocks, par value; common stocks, market
value.
Source:
Long-term data: Department of Commerce, Economic Series No. 11, Foreign Long-Term Investments in the United States, 1937-39, Government Printing Office, 1940.
Short-term data: Treasury Department, Statistics of Capital Movements Between the.United
States and Foreign Countries, etc., Report No. 4, Washington, D . C , 1937, adjusted.
54
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 26.—Vnlue of foreign-owned
United States assets, June 14, 1941
fin millions of dollars]
C o u n t r y (of r e p o r t e d address)
N o r t h America:
Canada
F r e n c h N o r t h A m e r i c a _ __
Newfoundland
Total, N o r t h America
South America:
Argentina
Bolivia
Brazil.
_
British Guiana
Chile
Colombia..
Ecuador
._ _
French Guiana
_.
Pa'raguay
__
P e r u . . _.
__ ._
Surinam (Netherlands
Guiana). .
._ __
Uruguay
__
_.
Venezuela
Total, South America
C e n t r a l America a n d Mexico:
British H o n d u r a s
Costa Rica.
Guatemala
Honduras
._
..
Nicaragua
Panama...
E l Salvador
.. ...
Mexico...
Total, Central America
a n d Mexico
West Indies and B e r m u d a :
B a h a m a s . . . _.
Bermuda
B r i t i s h W e s t I n d i e s , n . e. s.
Cuba
:
Dominican RepublicFrench West Indies . . . . .
Haiti
Netherlands West Indies...
Total, West Indies and
Bermuda.
.
Europe:
Albania
Austria
Belffium
B r i t i s h M e d i t e r r a n e a n Possessions. __
Bulgaria
Czechoslovakia
Danzig
Denmark
._
Eire
Estonia
Finland
France
_
...
Germany
Greece
Hungary
Iceland
_
Italy
Latvia
Lichtenstein.
__
Lithuania
Luxemburg
Monaco
Netherlands.
Norway
Poland..
Portugal
Rumania
Spain
Sweden
Bullion,
currency,
and
deposits 1
424.2
00
Real
property
530.9
16.5
00
5.7
429.9
11.9
542.9
119.7
8.9
60.6
.2
35.6
26.2
2.9
.1
.3
12.9
51.4
2.4
13.6
.1
10.2
2.9
.6
1.6
7.2
28.7
304.7
i
3.8
7.0
100.1
.2
4.1
10.7
3.2
3.9
52.0
5.5
73.9
1.2
1.0
2.0
2.8
.2
53. 3
1.7
27.6
153.4
16.5
(3)
(3)
.1
7.9
.5
.2
.1
.2
.1
.1
I n t e r e s t s Foreignconin estates
trolled
and
entertrusts
prises 2
34.5
34.5
3.1
00
2.8
( 3 ).
.5
.1
3 5.6
()
()
.1
00
33.6
1,742.8
19.7
14.2
1.3
.8
39.0
3.3
55.6
.4
20.8
14.1
1.4
.1
2.1
12.6,
233.4
28.8
134.1
.7
76.0
44.1
5.2
.2
2.5
35.0
14.7
1.9
61.4
2.3
3.5
41.0
196.2
4.0
29.4
79.3
672.9
.1
.9
1.5
9.1
3.3
30.5
1.1
39.1
1.5
6.6
15.6
15.2
7.6
170.1
8.7
159.8
8.0
.5
.2
.7
.1
1.0
3 .1
1,709.2
4.7
" 189. 2
00
00
.2
.6
9.2
184.5
(3)
Total
11.3
529.8
1.3
.2
.1
1.3
(3)
(3)
518.5
00
Other
assets
(3)
00
.4
00
.1
28.6
.4
9.4
1.8
8.0
89.9
8.1
9.4
39.1
85.4
385. 3
1.2
2.3
.7
52.9
8.4
2.4
4.0
21.1
12.5
9.5
3.9
66.2
4.6
.2
1.2
4.5
.6
.2
'.2
.'9
.1
5.2
6.2
2.3
7.4
.1
3.4
2.4
.2
15.9
.3
.1
9.4
4.2
2.4
28.5
10.4
.3
1.0
8.6
32.3
24.8
9.7
171.8
23.9
2.9
6.7
34.3
93.0
102. 5
22.3
65.0
306. 4
1.2
82.9
.1
.7
60.1
.3
6.0
312.7
.2
.9
128.1
.2
.8
3.2
.2
16.0
14.7
4.3
8.6
516.4
7.5
34.3
4.1
. 1.4
23.9
7.0
.3
1.5
23.0
2.9
205.4
104.5
4.0
43.7
12.7
14.8
238.0
See footnotes at end of table, p . 55.
Domestic securities
(33)
()
2.0
00
.1
.5
1.8
34.9
.8
.1
.8
(3)
(3)
5.3
3 9.3
()
.6
186.4
12.4
3.9
1.4
33.0
.1
.8
.2
3.5
4.7
319.8
11.3
.5
7.4
1.0
15.4
35.9
.4
.1
(3)
00
1.3
6.2
.1
.2
.9
.3
.3
1.1
.1
10.0
4.8
.8
.1
4.7
3
()
(3)
W
21.6
.9
1.2
.3
.1
.4
.1
8.7
.6
(3)
(*)
00
6.7
3.8
3.8
13.1
()
.3
122.2
50.1
2.1
1.3
47.9
00
.2
.3
.1
5.4
13.1
3.0
2.1
2.5
.4
5.5
7.1
.5
2.0
2.2
00
3
(4)
(«)
3.8
99.6
105.1
4.5
4 .1
() .
10.0
00
.8
5.1
.1
336.0
5.0
.7
.3
.1
6.4
34.4
00
16.0
3.0
4
() >
7.0
105.9
18.1
24.1
2.9
(4)
10.0
.2
.2
.2
1.7
1.5
101.3
30.6
1.9
5.4
5.2
9.0
50.2
1.9
1.6
9.4
.2
48.1
45.0
10.6
20.3
1,040. 5
198.0
69.7
9.9
2.0
129.6
7.3
2.3
2.2
33.4
15.5
976.7
154.7
9.3
59.7
19.5
59.8
366.2
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 26.—Value of foreign-owned
United States assets, June 14,
55
1941—Continued
[In millions of dollars]
C o u n t r y (of r e p o r t e d address)
Europe—C ontinued
Switzerland
U n i o n of Soviet Socialist
Republics
United Kingdom.
Yugoslavia
_
Total, Europe
Africa:
Algeria
Belgian Africa
British E a s t Africa
British South Africa
(excl. of U n i o n of S o u t h
Africa)
British W e s t Africa
Egypt
Ethiopia
F r e n c h Africa, n . e. s
F r e n c h Morocco
F r e n c h W e s t Africa
I t a l i a n Africa.
__
Liberia
.
P o r t u g u e s e Africa
..
,.
Spanish Africa
Tangier
Tunisia.
U n i o n of S o u t h Africa
T o t a l . Africa
Asia:
Afghanistan
Arabia (autonomous)
British A r a b i a
British Arabia, n . e. s
British M a l a y a
Ceylon
China
French Indochina..
.
Hong Kong
India
Iran
Iraq
Japan
Netherlands East Indies
Palestine a n d T r a n s j o r d a n .
P h i l i p p i n e I s l a n d s . ._ _.
P o r t u g u e s e Asia
Syria
Thailand..
Turkey.
Other Asia ( a u t o n o m o u s ) . .
T o t a l , Asia
Oceania:
Australia
British Oceania
F r e n c h Oceania
N e w Zealand
T o t a l , Oceania
Unknown
Grand total
Bullion,
currency,
and
deposits 1
Domestic securities
494.8
417.2
12.8
384.0
28.4
2, 342.8
.2
587.5
1.0
1, 697.1
(3)
.4
20.9
.3
.3
.2
.4
.8
.5
(3)
.1
8.4
.1
5.8
3
()
(3)
.9
4.1
3 1.2
.5
(3)
3
.3
.7
.4
6.0
.5
20.7
65.4
.2
.1
1.4
.1
6.2
16.3
()
1.1
.1
.1
.9
19.4
1.8
238.6
22.6
52.8
11.3
14.1
2.3
94.1
95.7
4.4
«227.8
2.4
7.0
28.0
824.5
27.2
.1
1.4
5.3
34.0
1.1
4,248.8
()
.1
3 .1
()
.2
1.8
.1
53.7
.2
19.9
4.8
.1
.4
11.7
9.9
6.1
18.4
Interests
Real
i n estates
property
and
trusts
10.0
42.2
.4
87.8
(3)
(33)
()
(3)
(3)
()
3 .3
()
.6
1.7
1,210. 5
5.0
1,109.5
5.7
1, 672.9
28.1
3,238.9
37.1
8,127. 6
.6
27.6
1.0
.1
1.4
49.8
3.2
2.0
(3)
.2
4.7
(33)
.8
.4
.6
(4)
2.1
.4
.1
.7
.2
2.1
10.0
(3)
1.5
(3)
(3)
(3)
.3
4.7
9.4
(4)
(3)
1.6
(3)
16.7
(4)
( 3)
()
1.8
(3)
.6
.8
.5
.3
.4
2.3
578~
12.6
.2
.2
74.2
2.2
2.9
.4
.5
1.2
124.8
(3)
.7
.6
3.5
8.9
867.3
.2
.6
.1
(5)
.7
2.2
.1
.1
.7
.4
1.8
1.9
(33)
(3)
()
(4)
5.1
(3)
.3
(4)
(33)
()
.1
.4
.3
3 .5
(3)
.6
.5
.1
.7
140.8
.5
.5
7.8
1.8
2, 699.1
88.3
9.4
711.5
.9
1, 569.4
(33)
7.1
.1
6.1
6.7
137.8
(3)
()
Total
.7
404.3
.7
757.6
()
3 .1
Other
assets
62.4
.4
.5
(3)
(3)
.1
.1
Foreigncontrolled
enterprises 2 •
3.9
3.1
4 .8
()
35.1
3.6
.6
3 8.0
( 4)
()
2.4
5.3
1.7
2,312. 6
.5
.2
1.0
.2
22.3
59.8
(*)
.1
.2
.3
13.3
1.4
445.2
()
6.7
26.2
4 3.4
()
17.1
49.1
2.0
319.9
(4)
()
1.1
3.0
199.5
15.1
(3)
.2
1.8
17.1
1.0
2,486.1
.9
26.6
(3) 1.1
5.9
1.3
(3)
.5
1.5
.8
9.7
1.0
56.6
162.5
6.4
.4
.3
1.5
36.5
3.3
356.4
25.0
84.3
48.1
18.5
4.6
160.5
158.7
15.5
8
276.8
3
11.9
8.2
40.0
.2
1,257.3
()
54.5
.1
2.8
10.6
68.2
15.7
12, 738. 7
1
Excluding gold held under earmark for foreign account by the Federal Reserve Bank of New York,
which amounted to $1,916,000,000.
2
For statistical purposes only, control was determined on the basis of the ownership of 25 pereent or more
of the voting stock of corporations and analogous interests in partnerships and other organizations.
8 Less than $50,000.
4
Included in the totals.
6
Taxes, amounting to about $37,850,000, collected under Sec. 503 of the Sugar Act of 1937, to be made
available for public relief and civilian defense in the Philippine Islands, are not included in this figure.
NOTE.—The figures are rounded and will not necessarily add to the totals.
Foreign-controlled enterprises, book value; securities, market value; deposits, stated value; other assets,
estimated value.
Source.—Treasury Department, Census of Foreign-owned Assets in the United States, pp. 61-^3, Government Printing Office, 1944.
56
FOREIGN ASSETS AND LIABILITIES OF THE UNITED STATES
TABLE 27.—Estimated value of foreign-owned United States assets, end of 19^6
[In millions of dollars]
Foreign investments in the United States
Private United States "obligations"
Long-term
Direct investments
Portfolio investments
.
Corporate shares
Corporate, State, and municipal bonds
Estates and trusts
Other
Short-term
Deposits
Brokerage balances 1
Other short-term
U. S. Government obligations
Long-term
Short-term
16, 145
12, 805
7,670
2,560
3,515
2,990
525
665
930
5, 135
1
4, 670
135
330
3,340
315
2
3, 025
i Includes $78,000,000 of deposits for international organizations.
Includes $396,000,000 held for international organizations.
Notes.—Direct investments, book value; securities, market value; short-term assets and U. S. Government
obligations, stated value.
Source: Based on Treasury Department, TFR-300 data, adjusted by the Department of Commerce and
Treasury Department on the basis of current information.
2
C.
U N I T E D STATES SECURITIES AND O T H E R L O N G - T E R M ASSETS
OF COUNTRIES PARTICIPATING IN THE EUROPEAN RECOVERY
PROGRAM
Because of the special interest in the subject, estimates of long-term
foreign investments in the United States of the 16 countries participating in the European recovery program have been prepared for the
information of the committee. (See table 28.) The total long-term
assets of these countries as of the middle of 1947 amounted to
$4,930,000,000. About $2,200,000,000 consisted of stocks and bonds,
the bulk of which are probably of a readily marketable character.
Direct investments accounted for an additional $1,700,000,000; these
consist of the American branches and subsidiaries of foreign corporations and other United States companies 25 percent of whose voting stock is held abroad. Interests in estates and trusts and other
miscellaneous assets, including real estate, account for the remaining $1,000,000,000.
The character of these assets and the measures taken by the principal countries with respect to them are discussed by countries below:
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 28.—Estimated foreign-owned
gold reserves and United States assets June
1947 1
57
30,
[In millions of dollars]
United States assets
Country or area
Countries participating in European recovery program:
Austria
*
Belgium 2
Denmark
Eire
France 3
Germany
Greece
Iceland
Italy
Luxemburg
Netherlands 4
Norway
Portugal
Sweden
Switzerland
Turkey
United Kingdom 3
Total, participating countries..
Canada and Newfoundland
Other areas 5
,
Undistributed
T o t a l , all areas..
Gold
Shortterm
assets Securities
Other
Total
3
55
10
14
225
3
130
24
26
240
6
185
34
40
465
10
659
32
11
700
320
20
1
60
172
52
18
316
27
32
7
187
22
220
91
*44
133
396
51
396
214
77
390
168
1,355
191
2,360
6,568
310
7,122
Total
Total
and
United gold
United
States
States
assets
assets
Long-term assets
2,164
2,574
1,510
6,836
32
14
5
580
20
12
50
645
10
600
415
30
65
225
2,248
680
760
2,682
730
745
3,688
4,157
63
13
995
50
21
115
870
16
2,025
4,930
1,410
1,505
6
357
781
27
64
7
250
35
1,215
141
65
248
1,266
67
2,422
16
1,016
118
69
1,481
347
84
8
310
35
1,429
218
455
416
2,621
258
4,781
7,094
1,998
4,079
1,410
13,662
2,308
11, 201
1,510
14,681
28,681
i Holdings of International Monetary Fund and International Bank for Reconstruction and Development
excluded. The United States assets of these and other international organizations on this date, amounted
to 2$2,714,000,000.
Including Belgian Congo.
3
Including dependencies.
4
Including
Netherlands West Indies.
6
Short-term foreign assets not broken down by countries include $110,000,000 of brokerage balances,
$900,000,000 of estimated holdings of United States currency and claims against the United States Government and an omission estimate of $500,000,000.
NOTE
Gold: Data represent total holdings of governments and central banks without regard to location.
Short-term assets: Composed principally of deposits in American banks and holdings of U. S. Government
Treasury bills and certificates.
Long-term assets: Securities item is composed of holdings of stocks and bonds of United States corporations and bonds of the U. S. Government. The "Other" item is composed of controlling interests in United
States corporations, interests in estates and trusts, and other types of property holdings. These assets vary
widely as to availability and liquidity.
The differences between thistable and table 27 are explained as follows: (1) Table 27 includes $474,000,000
of assets of international organizations. Such assets were excluded from table 28. (2) Between Dec. 31,1946,
and June 30, 1947, the liabilities of United States banks to foreigners decreased by $680,000,000, principally a
reduction in U. S. Government bills and certificates held for foreign account. (3) Various changes in other
items including a reduction in the market value of United States common stocks and net sales of United
States securities by foreigners.
Source: Based on Treasury Department, TFR-300 data, adjusted by the Department of Commerce
and Treasury Department on the basis of current information.
69140—48
58
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
UNITED KINGDOM
Among the countries participating in the European recovery
program the United Kingdom held by far the largest amount of
long-term assets in the United States. The holdings of the United
Kingdom were estimated to have a value over $2,000,000,000 as of
the middle of 1947. The United Kingdom and its nationals hold
substantial amounts of stocks and bonds issued by United States
corporations. I t is estimated that the current market value of these
securities is about $600,000,000.
British subjects also have substantial interests in foreign-controlled
United States enterprises. These interests, called direct investments,
have a current book value in excess of $1,000,000,000.
Insurance companies account for about half of the direct-investment
total. These consist of 87 fire,-marine, and casualty companies, of
which 43 are incorporated in the United States and 44 are branches
of British companies. Investments in these companies are carried,
in table 28 at $450,000,000, which is their estimated net worth.
The companies', assets consist .largely of high-grade stocks and bonds
together with real estate and mortgages which in 1946 produced a
net investment income of 20.3 million dollars, in addition to the
earnings from their underwriting business.
Similarly, all other direct investments—British and other—shown
in table 28 have been entered at book values, i. e., the equity of the
foreign owners in the capital stock, surplus, and liabilities of the
American company or branch. There is no adequate method of determining a fair market value for most of these investments. There
is no public market for their stock, and the price that could be secured
either from public offering or private sale of their securities would
depend on a large number of variables. Among these might be
mentioned (1) the condition of the capital markets, (2) the degree
of political pressure placed on the owning countries to liquidate, and
(3) the position of any particular company to be sold in the American
industry of which it is a part, including the past earnings, history,
character of the management, value of patents owned, value of good
will, condition and location of the physical equipment, and many
other factors.
The only instance in which a British direct investment was liquidated was the sale in the early days of the war of about 90 percent of
the stock of American Viscose Corp., the largest producer of rayon
yarn in the United States. The stock of this company was vested by
the British Government in 1941 and publicly offered in the United
States through a banking syndicate. The British Treasury realized
only about $54,000,000 net on this sale, after paying commissions
and other expenses, in spite of the fact that the company had a net
worth of more than $100,000,000. I t was largely because of the
failure to secure what was considered a fair value on this investment
that no further steps were taken toward vesting and liquidating other
direct investments. Instead, the unsold marketable securities still
available to the British Government and most of the direct investments that had any sizeable value were pledged against a loan from
the Reconstruction Finance Corporation of $425,000,000. Only
$390,000,000 was ever drawn, and by the end of August 1947 about
half of it had been repaid out of the proceeds of income received on
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES,
59
the pledged securities. The estimated va'lue of the collateral held is
about $900,000,000; the balance of the loan outstanding is about
$136,000,000.
However, before securing the R F C loan, the British Government
had vested and sold in the United States about $700,000,000 of American securities previously owned by its nationals. The private holders
were paid in sterling at the equivalent of the dollar value of the
securities at the time they were vested.
Except for securities already vested or loaned to the British Government, British holders since October 1, 1947, are no longer required
to sell their American securities to the Government on its request.
Under the new Foreign Exchange Control Act which went into force
on that date, holders of such securities may sell them and reinvest
the proceeds in other American securities or may transfer their
American securities freely against payment in sterling.
According to estimates of the Department of Commerce, income
paid on United Kingdom investments in the United States in 1945
amounted to about $86,000,000, of which $43,000,000 was earned by
the insurance companies. The earnings of the latter, due to large
underwriting losses, dropped to about $11,000,000 in 1946, thus reducing the total to about $59,000,000 in the latter year. Most of this
income, of course, went to service the R F C loan. In any event, in
view of the effective administration of British exchange control, it is
probable that substantially all the dollars received as a result of this
income do become available to the British Government.
NETHERLANDS
Of the countries participating in the European recovery program,
the Netherlands is the second largest holder of United States investments. A much larger proportion of the Dutch holdings consists of
marketable securities than is the case for British holdings. There
have been no vestings by the Netherlands Government of American
securities. Dutch holdings of American stocks, estimated at about
$400,000,000, represent chiefly interests in large United States corporations and are therefore securities of a high degree of liquidity.
They have been traditionally held in Holland in the form of bearer
certificates issued by the Dutch administration offices, who in turn
hold the original American stock certificates. In addition, the Dutch
for many years have held substantial amounts of American corporate
bonds, particularly railroad. The estimate for Dutch holdings of
direct investments includes the # full value of the Shell Union Oil
Corp. stock owned by the Batavian Petroleum Co. Batavian in
turn is owned partly by the Royal Dutch Co. and the British Shell
Co., and partly in other countries. As a matter of fact, the estimates
presented in table 28 are based in all instances on recorded addresses,
and it may well be that in some cases the actual owners are residents
of third countries.
Under the foreign-exchange-control decree of 1945 and the Netherlands banking regulation of July 1946, the Netherlands Government
has been granted authority to take over the foreign exchange and
foreign securities held by its nationals. Pursuant to this authority
the Netherlands Bank has taken control of all privately held gold and
foreign currency. The Government has required registration of the
60
FOREIQN ASSETS AND LIABILITIES OF T H E UNITED STATES
securities and other investments of its nationals, but it has not vested
them. The Government has attempted to induce private holders of
dollar investments voluntarily to liquidate them. I t has attempted
to stimulate such liquidation by offering a Netherlands bond in
dollar denominations and payable in guilders at the rate of exchange
at the due date, which may be purchased with the proceeds of sales
of United States dollar securities. According to reports received from
the Netherlands only nominal amounts of this offering have been taken
up. I t appears that net sales of these United States securities for
Netherlands accounts have been at the rate of less than $100,000,000
a year. I t is understood that the Netherlands Government has
agreed with the Export-Import Bank to liquidate United States
dollar securities or other obligations owned by its nationals in such
amounts as shall be necessary to liquidate outstanding advances under
the credit of $200,000,000 which was granted to that Government on
January 1, 1946.
I t is felt that results of the census taken by the Dutch authorities,
which correspond closely to .the results obtained by the United States
census, are reliable. Also the Dutch foreign-exchange controls are
effective and, therefore, the $28,000,000 annual income which the
Department of Commerce estimates is earned on these assets is available to the Dutch Government as well as the dollar proceeds from
sales of these assets.
OTHER EUROPEAN
COUNTRIES
Switzerland
The third largest holder in this group of countries is Switzerland,
with total United States assets of $870,000,000. I t is believed,
however, that a substantial portion of these assets is beneficially
owned by nationals of other countries. In particular, it has been
frequently alleged that French citizens have invested capital in the
United States through the intermediary of Swiss banks. The French
Government has made efforts to secure information on this matter,
but because of the strictness of banking secrecy code in Switzerland,
no progress has been made. Most of the investments held in Swiss
names are in stocks and bonds which are listed on one or more United
States securities exchanges and enjoy an active market.
All Swiss dollar investments are privately owned. The Swiss
Government has not taken a census of these assets or any other steps
to utilize them. An agreement has been reached with United States
authorities whereby the Swiss Government through accredited banks
certify to the nonenemy ownership of United States securities as a
condition to their being unblocked for transfer and withdrawal of
the proceeds. The Swiss exchange controls permit the free transfer
of these securities by its nationals. The Department of Commerce
estimates the annual income received by Swiss nationals on these
investments is about $21,000,000.
France
Of the $465,000,000 of long-term assets estimated for France, a
study of available data indicates that perhaps half may be assets
which were reported to the United States Treasury but have not been
declared to the French authorities.
The French Government authorized a census and mobilization of
foreign assets held by its citizens in January 1945. The census was
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
61
taken shortly thereafter and in July 1947 an order was issued vesting
in the Government the dollar securities of French citizens. French
citizens were compensated in francs for their property on the basis of
.July 1947 prices. As it was indicated above, it is generally believed
that the results of this census and vesting order were incomplete due
to the failure of some French citizens, in reliance upon the protection
<of Swiss and United States authorities, to disclose their holdings,
particularly those held outside of France.
The French Government has in discussion with the United States
on several occasions indicated its intention of utilizing the vested
Umited States securities by sales in the open market. According to
the Department of Commerce estimates, France receives income of
abotut $6,000,000 per year on these investments. I t may be t h a t
even this small amount of dollar income is not altogether available to
the French Government.
Italy
Italian holdings of United States assets are relatively unimportant.
As of'the middle of 1947 they are estimated to have a total value of
$63,000,000. Of this amount $40,000,000 is estimated to represent
nitilizable forms. Holdings of stocks are estimated about $12,000,000
and bonds at $2,000,000. I t is not known that the Italian Government has made any efforts to mobilize or utilize these assets of its
nationals. According to the Department of Commerce estimate, the
income received on these investments is about a half million dollars
per year and even this amount may not be available to the Italian
Government.
Sweden
In October 1947 *the Swedish Government took steps to mobilize
all private holdings of short-term foreign assets held by its nationals.
According to available data, Swedish nationals own about $115,000,000
of United States assets in the form of stocks, bonds, and direct investments. The Swedish Government has taken a census of these longterm assets but has not taken steps to vest or mobilize them.
Belgium
Of the^remaining countries participating in the European recovery
program, only Belgium holds United States assets of an appreciable
amount. The holdings of this country in the form of stocks, bonds,
direct and miscellaneous investments had an estimated value as of
the middle of 1947 of $185,000,000. A census of foreign assets was
taken shortly after the liberation, but the Government has not
sought authority to acquire the assets.
D. FOREIGN COUNTRIES' GOLD AND SHORT-TERM DOLLAR RESOURCES
At the end of June 1947, the gold and short-term dollar resources
of all foreign countries totaled around 19 billion dollars. Out of this
total, sterling-area countries held 4.2 billion * dollars. Among the
other countries that participated in the Paris European recovery
program discussions, Switzerland, Portugal, and Turkey held about
2.4 billion dollars and the remaining participants 3.1 billion*dollars.
Other European countries (including the U. S. S. R.) are estimated to
have held somewhat less than 4 billion dollars, Asiatic countries
about 1.7 billion dollars, Latin America about 3.3 billion dollars, and
62
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
Canada 0.9 billion dollars. Table 29 gives the available figures for
individual countries. 1
Most of these resources constituted reserves needed by their
holders to finance the current flow of international trade or to back
their currencies. Holdings not so required may be estimated roughly
as follows: (a) About 1.5 billion dollars held by Switzerland, Portugal, and Turkey and about 1 billion dollars held by some LatinAmerican countries constituted reserves which might be judged to
be over the holders' minimum needs; (b) if there were applied to the
Philippine Republic the same general standards applied to other
countries, its dollar holdings would seem to be about 250 million
dollars over minimum requirements; (c) the holdings of South Africa
as of June 30 may have been over that country's minimum needs by
300 million dollars or more, but there has since been announced a
loan by South Africa of 325 million dollars of gold to the United
Kingdom.
Foreign countries' total resources included about 14 billion dollars
in gold stocks held abroad or earmarked in the United States and
5.3 billion dollars in short-term dollar assets held on the books of
banks and bankers in the United States. Of these resources, the
entire gold stocks and 2,160 million dollars in dollar balances were
iield officially (by foreign governments, their agencies and central
banks), while the remaining dollar balances—3,170 million dollars—
were held privately (by commercial banks, business firms, individuals, and others).
I t may be noted that private dollar balances are considerably larger
than official dollar balances. This represents a change from the
situation which prevailed before February 1946, and is the result of
an accelerated contraction of official balances and a gradual expansion of private balances. In large part these private balances actually represent the working funds of foreign commercial banks and
business firms engaged in international finance and trade activities,
and their "increase reflects the expansion of the volume and value of
their transactions after the war. The remainder (probably a small
part only) consists of "refugee" funds held in the United States for
safety and stability by private individuals, and their use in financing
foreign needs will depend on the degree of control which foreign
governments can exercise, or the. willingness of private holders to
repatriate, them.
Net sales of gold to the United States and drawings on official dollar
balances by foreign governments amounted during 1946 to 1,835
million dollars, and during the first half of 1947 they amounted to
2,275 million dollars. For the 1 ^-year period as a whole, the liquidation of gold and dollar balances proceeded at approximately equal
rates: Net gold sales came to 2,085 million dollars and net drawings
on official balances to 2,020 million dollars. The net decline in gold
stocks and official balances during the period was 4,000 million dollars
(inclusive of addition from gold production and deduction for contribution to the International Monetary Fund). A further loss of
gold and dollars of around 650 million dollars has occurred in the-third
i These figures cover all official gold stocks (using available estimates where figures are not officially
published) and both official and private dollar balances as reported by bankers in the United States to
Federal authorities. The figures do not, however, include gold and United States dollar notes that may be
privately hoarded in foreign countries or short-term liabilities of brokers, commercial concerns, and the
Commodity Credit Corporation. Thus they do not include $1,510 million carried as "undistributed"
short-term assets in table 28. No deduction has been made for foreign countries' gold and dollar liabilities.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
63
quarter of 1947. This contraction of gold and dollar resources has
been unevenly distributed, with the result that a number of foreign
countries have already reduced their reserves below the levels t h a t
prudence would require them to keep, although a few countries, as
noted above, continue to hold resources which might be regarded as
over their minimum needs. Even these latter countries, with but a
few exceptions, have recently been losing reserves, and they could
hardly be expected to supply any great amount of loans «of gold or
dollars of the type needed to overcome other countries' dollar shortages.
The amount of reserves that a country needs depends upon a
complex set of considerations including not only financial and economic
but also psychological factors involving confidence in the country's
currency, as well as political and historical factors. When a country's
reserves are reduced below the amount t h a t a prudent man would
consider safe, the country may be fortunate and be able to maintain
its financial stability; however, it subjects itself to the risks of economic
and possible political dislocation arising from external and internal
doubts and lack of confidence. A country may have to weigh the
question of maintaining a safe level of reserves against the immediate
need of imports vital to its economy, and in such a case may decide to
hold a lower level of reserves than prudence at other times would
dictate. For all these reasons, it is n o t possible to devise any simple
general formula for determining the needs of different countries.
Neither can the amount of reserves needed be judged by a simple
comparison with levels prevailing before the war. The erratic price
rises since then and the^shifts in composition of foreign trade would
alone nullify the usefulness ^©f such comparisons. More important,
however, is the fact that throughout the thirties most countries
already suffered from reserve deficiencies, and it was these deficiencies
that led to their imposing restrictions on foreign trade and exchange.
The longer-term objective of the United States—freer multilateral
world trade—requires the avoidance of such restrictions.
. Hence, in the last analysis, the amount of reserves needed by a given
country at a given time is a matter t h a t requires determination on the
basis of the most expert arid responsible judgment.
. For purposes of the present discussion, the needs of each country
have been estimated very roughly by taking a*figure based on the
country's volume of current payments to other countries for goods
and services, to represent the amount of working balances needed, and
adding a second figure based on its volume of currency in circulation,
to represent the amount needed for domestic ! monetary reserves.
Even though such approximations cannot represent any real judgment as to the need of any particular country, it is quite apparent
that, even allowing for a considerable margin of error, there are few if
any countries, outside of the groups previously listed as having surplus
holdings, that are in a position to make further drafts on their gold and
dollar resources without serious danger to their future financial
stability.
.'-*.-•
. The implicit assumption that each country needs to hold working
balances proportional to its volume of current payments to other countries arises from normal business practice and procedures. The particular figure used in the present calculations—3 months' payments to
other countries—is an arbitrary figure which is undoubtedly too high
for some countries and too low for others. Most working balances
64
FOREIGN ASSETS AND LIABILITIES OF THE) U N I T E D STATES
for trading purposes have in the past been privately held separately
from monetary reserves; government participation in foreign trade
and monopoly of exchange resources has tended to shift trade working
balances from, private to official accounts and to add them to the
monetary reserves of central banks or exchange authorities. I n
normal times such working balances would be distributed among the
various currencies of the major trading countries. Nowadays, however, for most imports of foreign countries, settlement is ultimately
made in gold or dollars. 2
The particular figure used for monetary reserve requirements—25
percent of the notes and other demand liabilities of the central bank
(or other issuing institution)—corresponds to the level to which the
legal requirement in the United States (for Federal Reserve notes and
deposits) was lowered in June 1946. This figure is considerably lower
than the 40 percent ratio which was required as a standard for purposes of currency stabilization in the period *after World War I. The
monetary laws of most countries still provide for reserve requirements
in gold and exchange at levels between 25 and 50 percent, or even
higher. However, because of the decline in their reserves and the
expansion of their currencies, many countries have been forced to
suspend legal-reserve requirements and currency convertibility, and
to introduce rigorous exchange controls.
In view of the general abandonment of the gold standard and the
adoption of managed currency systems, a gold reserve is no longer
technically required to meet demands for gold payments within any
country. I n these circumstances monetary reserves may logically be
considered not as internal reserves, b u t as funds (supplemented, to a
limited extent, by the possibility of drawing upon the International
Monetary Fund) for meeting contingencies in international payments
and for the stabilization of exchange rates. I t is clear that the amount
of international currency a country needs is not directly related to
the volume of its central bank's sight liabilities, or even to the amount
of its domestic money supply (currency plus demand deposits).
While the traditional reserve ratios of central banks are open to this
technical criticism, they nonetheless command the attention and
respect of the general public in the countries concerned. Hence;
governments continue to regard seriously any decliire in the reserve
ratio and to impose increasingly stringent restrictions on foreign
payments whenever this ratio tends to fall below what is customarily
regarded in the country concerned as a safe or minimum level.
While, in the present €risis, many foreign countries have already
drawn their reserves below what would ordinarily be regarded as a
prudent level, it is clear t h a t such use of monetary reserves for meeting current deficits must in the long run delay and jeopardize the
restoration of international convertibility of currencies. The depletion of reserves of foreign countries makes it impossible for them to
relax import and exchange controls, and thus ultimately runs counter
to the United States objective of expanded multilateral trade.
2
For purposes of this discussion, trade between countries within the same monetary area (such as the
sterling area) is regarded as internal trade, not foreign trade.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 29.—Gold and short-term
dollar resources of foreign
1947
countries
as of June
65
30,
[In millions of dollars]
Dollar balances
Country
T o t a l resources
Official
Europe:
Austria
_.
Belgian m o n e t a r y area (including L u x e m b u r g a n d Belgian
Congo)
Bulgaria
-- - -Czechoslovakia,
Denmark
__
Finland
F r e n c h m o n e t a r y area
_
France
.
D e p e n d e n c i e s i n c l u d e d in I n t e r n a t i o n a l M o n e t a r y
F u n d , q u o t a of F r a n c e
- .
Germany .
_
Greece..
.
Hungary
-Italy
Netherlands and Netherlands West Indies
...
Norway
__
Poland
.
P o r t u g a l a n d dependencies
.
Rumania
.___ _
Spain a n d dependencies
_
-_ _Sweden
._
_
Switzerland
Turkey . _
U . S. S. R
,
Yugoslavia
_
Other E u r o p e (except sterling area)
_
_
T o t a l , E u r o p e (except sterling area)
British C o m m o n w e a l t h ( a n d other sterling area c o u n t r i e s ) :
United Kingdom
D e p e n d e n c i e s i n c l u d e d in I n t e r n a t i o n a l M o n e t a r y F u n d
q u o t a of U n i t e d K i n g d o m
_ _
Australia -.
- .
Egypt
Eire
_
Iceland
_
_India
Iraq
_
N e w Zealand
_ .
_
U n i o n of S o u t h Africa . .
T o t a l , sterling area, as of J u n e 30,1947Canada and Newfoundland
Total
--
Asia:
China
French Indochina
Iran
_ _
Japan
__
Netherlands Indies
Philippines
Siam
.
Syria a n d L e b a n o n
O t h e r Asia, e t c _-
__ __
,__
_
._
__
-_
--
-
See footnotes at end of table, p. 66.
-
'_
_ _
__ -
T o t a l , Asia
L a t i n America:
Argentina
__
Bolivia
Brazil
. __
Chile
2
Gold*
- -
Private
10
659
25
11
32
10
700
(680)
28
1
9
17
15
106
(88)
17
35
8
210
(182)
853
26
37
84
23
1,016
(950)
(20)
320
20
37
60,
214
77
60
390
268
111
168
1,355
191
2,500
76
100
(18)
11
15
1
79
65
29
5
12
3
4
24
67
16
49
9
16
(28)
16
17
3
108
155
62
12
32
5
8
109
329
35
1
3
17
(66)
347
52
41
247
434
168
77
434
276
123
301
1,751
242
2,550
88
133
7,384
581
1,348
9,313
2,360
48
281
2,689
95
53
11
1
274
1
17
3
3
3
13
23
757
1
34
66
31
20
15
4
28
3
7
5
67
143
76
29
8
315
3
31
796
3,574
310
123
299
460
289
4,157
898
3,884
422
749
5,055
95
260
27
7
79
10
12
16
16
54
1
10
3 16
434
37
146
222
275
450
50
17
49
127
206
181
1
35
3
33
78
395
14
4
166
-
681
785
214
1,680
- --
630
22
354
45
93
118
8
38
15
28
147
9
47
35
14
895
39
439
95
135
66
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D
T A B L E 29.—Gold and short-term
dollar resources of foreign
1947— C o n t i n u e d
countries
STATES
as of June
30,.
[In millions of dollars]
Dollar balances 2
Country
T o t a l resources
Gold*
Official
Latin America—Continued
C o s t a Rica._
Cuba
Dominican Republic
Ecuador
Guatemala
Haiti
H o n d u r a s __
_
Mexico
__
Nicaragua
Panama
__
Paraguay
Peru.
Salvador
Uruguay
Venezuela.. _
Unidentified
__
-____
__
_ ____
131
4
v
.
-__
_ _.
-__
I
_
_- _
_-
-_
-
Total, Latin America
G r a n d total
2
259
2
20
27
2
_
-_
_
_
20
15
189
235
3
27
8
13
12
10
1
13
2
3
1
11
14
4
20
20
Private
5
263
12
4
16
6
3
113
3
67
1
29
6
12
34
32
10
549
22
37
55
18
4
257
9
70
3
60
35
205
289
52
2,051
369
858
3,278
14,000
2,157
3,169
19,326
1 Official gold holdings; for countries whose holdings have not been published, available estimates havebeen
used. •
2
Deposits and other short-term dollar resources, as reported by banks and bankers in the United States;
to the Federal Reserve banks and the U. S. Treasury.
* Includes $10,000,000 held by Ethiopia, Liberia, Greenland, and unidentified countries.
CHAPTER
III.
STATUS OF A M E R I C A N I N V E S T M E N T S I N
FOREIGN COUNTRIES
This chapter is based on a survey of available data regarding the
status of American investments in foreign countries in response to
item 7 of Senate Resolution 103. I t is nonstatistical and primarily
legal.
Item 7. The legal and actual status of American direct investments under the
laws and current practices of the respective foreign countries in which such
investments have been made.
The discussion has been divided into three parts. First is a discussion of the provisions of treaties between the United States and
foreign countries to the extent that they affect American direct investments abroad. Second is a brief survey of foreign laws and decrees that affect American-owned property, together with available
data regarding the administration of such laws and decrees if it is in
any manner discriminatory against this country. I n addition to this
material on direct investments, there is appended, as the third part
of this chapter, a note on the status of defaults on foreign bonds
publicly offered in the United States.
A. TREATY PROVISIONS
So far as the legal status of American direct investments abroad is
concerned, the laws of the respective foreign countries are affected by
applicable treaty provisions in force between the United States and
such foreign countries. Such provisions may be classified, in general,
as follows: (1) those which expressly accord rights to nationals or
corporations to engage in commercial activity, enterprise, or business;
(2) those which, while not expressly according such rights, do extend
(a) most-favored-nation treatment, either conditional or unconditional, so that for all practical purposes American nationals or corporations would be entitled to the rights in question if the nationals or
corporations of any third country were accorded such rights, or (6)
national treatment, according the same rights as the rights of nationals
or corporations of the country in which the activity is carried on; and
(3) those which modify or implement the local law in connection with
the exercise of an expressed or implied right.
ESTABLISHMENT OF AND PARTICIPATION IN CORPORATIONS
Under the first heading in the attached tabulation, those countries
are identified with which treaty provisions deal specifically with rights
concerning the establishment of, and participation in, corporations.
The earliest of the 11 treaties indicated in that column is the one with
Germany concluded on December 8, 1923. Articles X I I and X I I I
of that treaty are typical. Article X I I relates to the recognition of
the juridical status of corporations of one country which have central
offices in the other country, it being provided, nevertheless, that the
67
68
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
right of such corporations to establish themselves within such other
country and to establish branch offices and fulfill their functions
therein shall depend upon, and be governed solely by, the consent of
the government of such other country as expressed in its national,
state, or provincial laws. Article X I I I relates to the rights of the
nationals of one of the countries, reciprocally and upon a most-favorednation basis and upon certain conditions, with respect t o the organization of and participation in corporations.
.
These specific provisions are in addition to provisions of the customary type relating to entry, residence, and establishment (covered
under heading I I ) . In earlier treaties it was not customary to refer
to corporations specifically. In fact, many of the existing treaties of
the United States were made at times when corporations were virtually unknown in international commercial relations. The position
has been taken that treaty provisions which accord certain rights to
nationals or citizens of foreign countries with respect to establishment or the carrying on of trade or business do not apply, in general^
to corporate bodies. The general principle applicable in this country
to a corporation doing business beyond the limits of the sovereign
authority under which it was created has always been that the corporation, being the mere creation of local law, can have no legal
existence beyond those limits. (See, e. g., Paul v. Virginia, 8 WalL
168, 181.) I t is an accepted doctrine in this and in other countries
that foreign corporations may be subjected to conditions and restrictions not imposed upon domestic corporations and are forbidden to
engage in some activities permitted to domestic corporations. I t is.
true that there has been an evolution in American public law away
from the extreme or harshly restrictive theory in regard to foreign
corporations, with a tendency toward adoption of the doctrine of
compulsory recognition.
Treaty provisions dealing specifically with this matter are, as indicated above, of comparatively recent origin, and corporations as suci*
are not in a tenable position in claiming rights under treaty provisions
which accord rights to nationals or citizens without specifying that
corporations shall be accorded similar rights. This is true despite the
fact that where the treaty provisions are readily capable of a liberal
interpretation, so as to cover corporate activity, there is an increasing
tendency to extend to corporations privileges which are not inconsistent
with local law. Apart from the 11 treaties mentioned above, the
provisions in force between the United States and foreign countries
respecting the legal status of corporations and their right to carry
on business are comparatively few.
RECIPROCAL TRADE AGREEMENTS
The third heading in the tabulation refers to " Provisions otherwise modifying or implementing law." This, is in the nature of a
catch-all column to cover provisions, not otherwise covered in other
columns, which might have some bearing, directly or indirectly^
upon the status of American direct investments abroad by requiring
or facilitating the modification or implementation of local law. For
the most part, the provisions which are referred to in the fifth column
are those which are contained in reciprocal trade agreements and
have relation (1) to the establishment or maintenance by either
TKXREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
69
contracting party of a monopoly for the importation, production, or
sale of a particular commodity; or (2) to the establishment or maintenance by either contracting party of any form of exchange controls
(control of the means of international payment); for example, articles
V I I I and I X , respectively, of the trade agreement of 1939 with
Venezuela (Executive Agreement Series 180).
I t would be impossible in the case of most of the provisions to
undertake any authoritative statements as to how the provisions would
apply under specific circumstances, inasmuch as this involves interpretations, sometimes by the courts. Nevertheless, it appeared
advisable to include some reference to them because of their possible
application.
DOUBLE TAXATION CONVENTIONS AND AGREEMENTS
For over a quarter century section 131 of the United States Internal
Revenue Code has provided that income and profits taxes paid to
foreign governments may be credited against income tax otherwise
due to the United States Government. This provision is most helpful to American foreign investment. However, it has been found
desirable to supplement it with bilateral treaties for the avoidance of
double taxation and for administrative cooperation for the prevention of tax evasion.
Conventions relating to taxes on income are in force between the
United States and four countries, namely, the United Kingdom,
Canada, France, and Sweden. Conventions relating to taxes on the
estates of deceased persons—commonly referred to as estate taxes or
death duties—are in force between the United States and two countries, namely, the United Kingdom and Canada.
The imposition and collection of taxes upon the same income or
upon the same estate by both the United States and a foreign country
may, and often does, result in double taxation of a severe character.
The conventions above mentioned have been concluded and brought
into force for the purpose of avoiding such double taxation, so far as
practicable, modifying certain conflicting principles of taxation for
this purpose, and establishing certain procedures for the exchange of
information in relation to taxation. I t is considered (1) that provisions of income-tax conventions constitute a definite step toward
the removal of undesirable impediments to international trade and
stabilize to a considerable degree the conditions under which nationals
and corporations of one of the countries carry on their business and
investment operations in the other country, and (2) that the provisions of estate-tax conventions go far toward eliminating double
taxation in connection with the settlement in either country of estates
in which nationals and corporations of the other country have interests.
The avoidance of double taxation is achieved, in general, by either of
two methods, namely, (1) by the specific exemption of certain types of
income or property from taxation in one of the countries, or (2) by the
allowance of a credit by one of the countries for taxes paid to the other
country upon certain types of income or property. The double taxation conventions are somewhat unique in comparison with other international agreements. While not diminishing in any respect any right,
deduction, or credit which taxpayers may have under existing legislation, the conventions have for their primary object the modification
70
FOREIGN ASSETS AND LIABILITIES OF THE UNITED STATES
of existing law so as to extend additional benefits to taxpayers or the
"freezing" of existing law in order that taxpayers may be relieved of
unnecessary apprehension regarding their tax status abroad.
The income-tax conventions with Sweden, France, and the United
Kingdom contain national-treatment provisions whereby nationals
(citizens or subjects) of one of the countries residing within the other
country are accorded treatment, in regard to taxes, no less favorable
than the treatment accorded the nationals (citizens or subjects) of
such other country. I n the case of the convention with France these
provisions are extended to apply to corporations, but are restricted
expressly to the taxes which are the specific subject of the convention.
I n the case of the convention with the United Kingdom, the latest to
enter into force, the national-treatment provisions are broad, covering
taxes of every kind or description whether National, Federal, State,
Provincial, or municipal, and extending not only to nationals in the
sense of United States citizens and British subjects but also to all legal
persons, including corporations, partnerships, and associations. In
the more recent discussions with representatives of foreign governments with a view to determining the possible bases for. double taxation conventions, it has been the established policy of the United
States representatives to propose the inclusion of a broad nationaltreatment provision along the following lines:
The nationals of one of the contracting states shall not, while resident within
the other contracting state, be subjected therein to other or more burdensome
taxes than are the nationals of such other contracting state residing in the territory of such other state. The term "nationals" as used in this article includes
citizens and likewise all corporations, partnerships, and other legal entities
created or organized in, or under the laws in force in the territory of, the respective
contracting states. The term "taxes" as used in this article means taxes of every
kind or description, whether national, state, provincial, or municipal.
As indicated in the last column of the tabulation, the United States
has agreements with 13 countries relating solely to relief from double
taxation on shipping profits. I t has been customary for these agreements to be effected by exchanges of diplomatic notes. So far as the
United States is concerned, the agreements are made under existing
law, as expressed in section 212 (b) of the Revenue Act of 1928 (45
Stat. 791), as follows:
• The income of a nonresident alien individual which consists exclusively of
earnings derived from the operation of a ship or ships documented under the laws
of a foreign country which grants an equivalent exemption to citizens of the
United States and to corporations organized in the United States, shall not be
included in gross income and shall be exempt from taxation under this title.
The agreements made with other countries under this provision of
law have the character, in each case, of a joint declaration by the two
countries that under their respective laws the profits derived by nonresident aliens, nationals of the other country, and by corporations
of the other country from the operation of ships documented under the
laws of such other country are exempt from taxation.
AVIATION AGREEMENTS
Agreements regarding air transportation, commercial aviation, and
air navigation were not included in the attached tabulation. However, in order to complete the record it should be pointed out that such
agreements, which contain provisions affecting the rights and obliga-
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
71
tions of American air lines with respect^to the operation of aircraft
within or over the territory of foreign countries, may have a bearing
upon the legal or actual status of American direct investments abroad.
It appears that any determination regarding the application of such
agreements would depend upon the particular circumstances.
The following bilateral agreements are in force between the United
States and foreign countries:
(1) Air transport agreements with Argentina, Australia, Austria,
Belgium, Brazil, Canada, Chile, China, Czechoslovakia, Denmark,
Ecuador, Egypt, France, Greece, Iceland, India, Ireland, Lebanon,
New Zealand, Norway, Paraguay, Peru, Philippine Republic, Portugal, Siam, Spain, Sweden, Switzerland, Syria, Turkey, Union of
South Africa, United Kingdom, and Uruguay.
(2) Commercial aviation agreement with Colombia.
(3) Air navigation agreements with Canada, Denmark, France,
Germany, Ireland, Italy, Liberia, Norway, Sweden, Union of South
Africa, and United Kingdom.
(4) Agreements regarding recognition of certificates of airworthiness for imported aircraft with Belgium, Canada, Denmark, Germany,
New Zealand, Norway, Sweden, Union of South Africa, and United
Kingdom.
(5) Agreements relating to issuance of pilots' licenses with Canada,
Denmark, Norway, Sweden, Union of South Africa, and United
Kingdom.
(6) Air facilities service agreements with Australia, Burma, Ceylon,
Czechoslovakia, Denmark, France, Italy, Netherlands, Norway, Siam,
Spain, Sweden, Switzerland, and United Kingdom.
(7) Provisional arrangements with Finland, Iran, Italy, and Saudi
Arabia granting unilateral rights to United States air lines.
The following multilateral agreements are in force between the
United States and numerous foreign countries:
(1) Inter-American convention concerning commercial aviation,
adopted at Habana February 28, 1928, effective for the United States
August 26, 1931 (Treaty Series 840). Denounced by the United
States, effective November 29, 1947.
(2) International convention for the unification of certain rules
relating to international transportation by air, and additional protocol,
signed at Warsaw October 12, 1929, effective for the United States
October 29, 1934 (Treaty Series 876).
(3) International sanitary convention for aerial navigation, signed
at The Hague April 12, 1933, effective for the United States, November 22, 1935 (Treaty Series 901).
(4) International sanitary convention for aerial navigation, 1944,
signed at Washington for the United States January 5, 1945, effective
for the United States May 29, 1945, modifying the convention (above)
of April 12, 1933 (Treaty Series 992).
(5) Protocol, signed at Washington for the United States April 30,
1946, effective for the United States August 6, 1946, prolonging the
international sanitary convention for aerial navigation, 1944 (Treaties
and Other International Acts Series 1552.)
(6) International Civil Aviation Conference documents, signed at
Chicago December 7, 1944:
(a) Convention on international civil aviation, effective for the
United States April 4 , 1947-(Treaties and Other International Acts
Series 1591.)
72
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
(b) Interim agreement on •international civil aviation, effective for
the United States, June 6, 1945 (Executive Agreement Series 469).
(c) International air services transit agreement, effective for the
United States February 8, 1945 (Executive Agreement Series 487).
Countries with which the United States has treaties or other agreements
containing
provisions which appear to have a bearing on the legal status of American
direct
investments in foreign countries are marked with an X
II
IV
Right of nationals to engage
III
in commercial activity,
Provisions
Rights of J enterprise, or business
otherwise
establish- 1
modifying
ment of and
or impleparticipation in cor- Granted M F N National menting
law i
porations expressly treat- treatment
ment
Relief from double
taxation
I
Country
Argentina
Belgium
.
_
Belgo-Luxemburg Economic
Union
.___ _ _ _ _ _
Bolivia
_
Borneo
Brazil _ _ _
Canada
__
Chile..
China
Colombia
Costa Rica
Cuba
Denmark
Ecuador
El Salvador
Estonia '
Ethiopia
Finland.__
France 2
Germany _
Greece _ _ __
Guatemala
Haiti
Honduras
Hungary:
Bilateral 2 __
Iceland
Iran
Iraq
Ireland
Italy:
Bilateral 2
Peace treaty
-_
X
X
X
X
x
X
x
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
x
x
X
X
X
X
X
X
X
X
x
x
x
x
X
\
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Liberia
Morocco _
Netherlands _
Nicaragua
Norway..
Panama
Paraguay
Peru
Poland .
Portugal
_
Rumania:
Bilateral 2
Peace Treaty
Siam
Spam .
Sweden
Switzerland
Tonga
lurkey
United Kingdom
Uruguay
Venezuela _
Yugoslavia
X
Conven- Separate
agreetion of
ment on
broad
shipping
scope
profits
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
.-
X
x
x
X
X
X
X
X
X
X
X
X
X
x
X
X
X
._
t
x
x
X
X
_. _
X
X
x
x
x
x
X
X
x
x
x
x
x
x
X
X
X
X
X
xX
X
X
x
X
i E.g., exchange controls, etc.
The possible effect of the war upon the operation of the treaties with these countries is not dealt with.
2
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
73
B. LEGAL STATUS OF D I R E C T INVESTMENTS IN F O R E I G N C O U N T R I E S
The statements concerning conditions in individual countries should
be evaluated bearing in mind the following:
(1) Under present conditions in Europe the value of the statutory
rights of foreign investors depends entirely on administrative procedure. This is particularly true of all laws concerning rights to do
business, since the ability to do business depends on administrative
action in allocation of foreign exchange, raw materials, etc.
(2) In many important instances, for example, in the matter of
foreign exchange control, the statutes and regulations only contain
the authority for administrative action, while the actual decisions
and practices affecting American business undergo frequent changes
on which up-to-date information is often not available.
(3) Statutes concerning the taxation of businesses are lengthy,
complicated, and subject to changes. The matter of taxation therefore has been gone into only where taxes on foreign business materially
differ from those applicable to domestic businesses.
(4) Statutes concerning the right of foreigners to do business and
the formalities to be complied with by foreign businesses are frequently,
voluminous and complicated, but are usually similar to each other
in that they concern the proof of the legal status in the country of
domicile, the appointment of a fully authorized representative in the
foreign country, proof that the bylaws do not interfere with the public
interest, an undertaking to abide by local laws and certain regulations
concerning publication of financial statements, changes in the bylaws
of capitalization, and sometimes a prohibition to acquire land in
frontier districts. For this reason the matter has been gone into only
where there is special evidence of discrimination or other subjects of
particular interest. In many cases the formalities applicable to the
establishment of a foreign business can be minimized by incorporating
a local subsidiary.
THE UNITED KINGDOM AND THE BRITISH DOMINIONS
Right to do business.—The British Companies Act of 1939, as
amended, contains no provisions designed to discriminate between
nationals and foreigners in the formation and operation of British
companies. Furthermore, an American corporation or.other person
in establishing a British subsidiary encounters no special nationality
requirements such as with respect to directors and shareholders.
When a foreign corporation establishes a place of business within
the United Kingdom, it must, within 1 month, register as a branch of
the foreign corporation with the Registrar of Companies. This involves .the filing of certified copies of its charter, articles of association,
etc., the payment of registration fees, and the submission of the
annual statement of the company. Such an organization is accorded
under the law substantially the same privileges and is subject to the
same requirements as a British enterprise.
In all of the Dominions of the British Commonwealth the company
laws are adaptations of the 1939 British Act (a consolidating and
amending act) or earlier British legislation on this subject. Consequently, the company laws of the Dominions are to a large extent
similar to the United Kingdom act and contain no discriminatory
provisions against foreigners.
74
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
M a n y of the controls over industrial activities exercised during
the war in the United Kingdom continue in effect in modified form,
such as the allocation ofmcertain raw materials in short supply, control
of industrial construction, and the location of new industries.. Many
products, especially consumer goods remain subject to price controls.
In the administration of these controls American branch plants are
apparently being treated on the same basis as national enterprises.
The Borrowing Control and Guarantees Act, 1946, applying both
to residents and citizens of the United Kingdom and to resident
foreigners in the United Kingdom provides that the borrowing of
money or the issuance of securities in excess of £50,000 in any year
requires the prior consent of the British Treasury. In addition, under
the Exchange Control Act, 1947, all loans of any kind made by United
Kingdom residents to any corporation or branch business resident in
the scheduled territories which is by any means controlled by residents
outside the scheduled territories are subject to the permission of the
British Treasury. (Scheduled territories are roughly equivalent to
those formerly comprising the sterling area.) Consequently, American
subsidiaries and branches operating in the United Kingdom and
scheduled territories cannot borrow money in the British money
market, whether in the form of bank loans or of securities, without
the consent of the British Treasury and subject to such conditions as
may be imposed.
There is no Commonwealth companies law in Australia so that
foreign companies desiring to establish a place of business in Australia
are, as in the United States, subject to the licensing requirements
of the individual States, or they may incorporate a subsidiary under
the Companies Act of one of the States. The latter type of company
is subject to licensing requirements when establishing a place of
business in other Australian States to the same extent as an exAustralian company. There are no discriminatory provisions in the
companies acts of any of the Australian States.
Three methods are available for an American corporation intending
to operate in Canada: (1) Registration of a branch as an extra-Provincial company"in a Canadian Province; (2) formation of a Provincial
company as a subsidiary; and (3) formation of a Dominion company
as a subsidiary. As among the States of the United States, a foreign
corporation (whether incorporated in a foreign country or in another
Province) is required to take out a license in each Province in which
it carries on business through a branch establishment. There are
no nationality restrictions in the several Canadian company laws.
As of August 15, 1947, two separate Dominions were established,
designated as India and Pakistan, which, by June 30, 1948, will decide
whether they desire to continue as Dominions of the British Commonwealth, or to sever this tie completely. The existing Indian Companies Act, based on British company law principles, does not contain nationality restrictions. I t may be stated that there exists in
both India and Pakistan considerable sentiment for the imposition
of requirements for local participation in industrial enterprises operated by foreign nationals, but this is counterbalanced to some extent
by the recognition of a need to encourage foreign technical assistance
in the development of the industrialization programs.
Taxation.—United States tax conventions with the United Kingdom for the avoidance of double taxation with respect to income taxes
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
75
and estate taxes have removed most of the tax difficulties encountered
by American investments and business interests in the United Kingdom. The United States also has conventions similar in scope and
purpose with Canada with respect to Dominion income and estate
taxes. Conventions for the avoidance of double income and estate
tax conventions were signed on December 13, 1946, and April 10,
1947, respectively, by the United States and the Union of South
Africa, but the ratification procedures have not as yet been accomplished.
The income tax laws of both Australia and New Zealand have
broad definitions of what constitutes doing business in their jurisdictions so as to render nonresident firms liable to income tax on the
profits made from sales. When an American firm makes sales in
Australia or New Zealand through traveling salesmen, commission
agents, or other intermediaries who are "instrumental" in obtaining
orders, whether or not concluding contracts on its behalf, such firm
is liable to tax on the profits therefrom. Consequently, only direct
sales through mail or cable orders or to distributors who buy and
sell in their own name are exempt from tax.
Section 19A of the Indian Income Tax Act stipulates that the
principal officer of every company shall furnish the names and addresses of its shareholders, and section 3, explanation 3, provides that
"a dividend paid without British India shall be deemed to be income
accruing and arising in British India to the extent to which it has
been paid out of profits subjected to income tax in British India."
Although this provision has apparently not been heretofore enforced
against American companies operating in India only through registered
branches, one American company, at least, was requested to supply
the list of its shareholders as a condition to the registration of a branch
it sought to establish in India. After representations were made, the
finance member issued instructions that this requirement should not
be applied, and indicated that an amendment to the tax law would
be recommended.
While a nonresident is made liable to Indian income tax only on
income derived from sources in India, the total world income of such
taxpayer is made the basis for determining the rates of tax to be
applied to that Indian income. As a result a nonresident may be
subject to a substantially higher rate on his Indian income than would
be indicated by the tax rate schedules.
Labor.—Directors and employees of managerial status of branches
or British subsidiaries of American firms have in general encountered
little difficulty in obtaining permission to enter and remain in the
United Kingdom. In the case of technical employees it is necessary
to establish that British subjects with the necessary qualifications are
not available, and when permission to enter is granted it is usually
rstipulated that they may remain only so long as it may be necessary
for these employees to train local employees to do the work. The
bringing in of unskilled labor is generally not permitted. The Dominions have, in general, applied similar regulations.
The Canadian contract labor regulations of 1929 established practices similar to those described in the preceding paragraph, but due to
the current scarcity of numerous classes of labor in Canada an order in
council dated April 11, 1947, has suspended the 1929 regulations.
76
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
Foreign exchange controls.—Exchange controls are in effect in the
United Kingdom and all the Dominions. Excluding the Dominion
of Canada, the regulations and policies governing exchange transactions are similar in all these countries, subject only to minor variations
resulting from particular local conditions. In order to transfer funds
for the purchase of goods or services it is necessary for the resident
remitter to obtain a permit from the local exchange control authorities,
unless the recipient is also a resident in a sterling area country. This
requirement extends as a general rule to payments of interest, profits
and dividends, whether by individuals or firms. The customary
policy which has been followed for some time is to permit transfers
of this type to be made on application, subject only to the possible
submission of reasonable proof that the transfer represents a bona
fide transaction and the funds involved accrue from current operations. Transfers of capital, on the other hand, are permitted under
very special circumstances as determined by the merits of each case
presented to the authorities. Sums realized from the sale of capital
assets are, therefore, ordinarily "blocked," but it is the policy of the
authorities to permit reinvestment of these sums and to allow returns
to be transferred as they accrue. By following a prescribed form
nonresidents purchasing securities in London with newly remitted
funds may sell these securities subsequently and transfer the proceeds
in the same currency as the original funds were transmitted. Although
royalty and rental payments are permitted under prewar agreements,,
new licensing or leasing arrangements between foreign and domestic
companies must be approved in order that transfer of payments
arising therefrom may be made without difficulty.
Although the Union of South Africa is a member of the sterling
area and has an exchange control system similar to those of the
United Kingdom, Australia, New Zealand, and other parts of the*
area, it has in practice been able by virtue of its large gold production
to anply the controls without as rigid supervision.
The Canadian exchange control mechanism differs in several
respects from that of the United Kingdom or its sister Dominions..
Canada has not, of course, been a member of the sterling area, and
has not shared in the freedom of monetary transfer in transactions
with that area as have the other Commonwealth countries. The
movement of funds between Canada and the United States is controlled, but all current transactions not otherwise prohibited are
eligible for payment in official exchange, that is, United States dollars;
are supplied at the established rate of exchange by the Canadian
authorities. Thus, interest, profits and dividends may be remitted
at the official rate. The control over capital transfers is more complex, but under present regulations new capital investments other
than in bonds and debentures by nonresidents may subsequently be
liquidated and transferred if originally registered with the authorities
at the time the investment was made. The authorization to liquidate
given by the authorities does not carry with it access to official exchange and the proceeds may be transferred only in Canadian dollars.
This situation has given rise to a "free" market in the United States:
where Canadian dollars are sold at a varying discount against United".
States dollars. Since the Canadian dollars so acquired cannot be
used to purchase Canadian goods for export, the chief sources o f
demand for them are tourists and investors wishing to purchase
Canadian securities or real estate.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
77
Nationalization.—The nationalization program in the United Kingdom has been applied to the Bank of England, the coal mines, inland
transportation systems, air services, and cable services. Foreign investments in the nationalized industries were apparently negligible,
and equitable compensation to private investors, whether British
nationals or foreigners, has been provided for in the pertinent legislation. The nationalization of the electric and gas industries is programed for consideration by the current session of Parliament, and
public ownership of the iron and steel industry is on the agenda for
future action.
The, Cabinet of the Commonwealth has submitted to the Australian
Parliament a proposal to nationalize all private trading banks. Sinceconsiderable controversy has resulted over this issue, the ultimate
outcome of the proposal is uncertain.
Eire
Right to do business.—The British Companies Act in effect on
December 6, 1921, was by section 73 of the Constitution of the Irish
Free State, and by the Adaptation of Enactments Act of December
20, 1922, applied in the then Irish Free State. There have been no
subsequent enactments to change the company law then in effect,
so that there are no discriminatory provisions in the Companies Act
with respect to the incorporation or registration of companies in Eire.
Under the Control of Manufactures Act, 1932, as amended, a
foreign controlled manufacturing business may not be established in
Eire without a license from the Minister of Industry and Commerce;
if it was established before 1932, it cannot extend the scope of its
manufacturing activities without such license. The Minister may,
at his absolute discretion, grant a license to do' all the things specified
in the application or to do some or only one of the things specified
or refuse to grant a license.
Since July 2, 1934, it has not been lawful for any company to
engage in manufacturing in Eire without this special license unless
51 percent of its issued shares are owned by a national of Eire or by a
qualified body corporate. A qualified body corporate (or holding
company) must have at least 51 percent of its shares held by qualified
persons (i. e., nationals of Eire or ordinary residents of Eire for 5 years
before July 2, 1934), at least two-thirds of any class of shares carrying
voting rights must he similarly held and a majority of the directors
(other than a full-time managing director) must be nationals of Eire.
Individuals cannot engage in manufacturing without a special license
unless they are qualified persons.
The same act empowers the executive council to declare the manufacture of a particular commodity to be a reserved commodity which
no one shall be permitted to engage in without a hcense, subject to
such conditions as the Minister may attach to it. The purpose of
this part of the act is apparently to encourage industries hitherto
nonexistent in Eire by granting a monopoly position or assurance of
limited competition.
EUROPE
Belgium
Right to do business.—No known law exists in Belgium to prohibit
the right of foreigners to establish and operate business concerns or to
prohibit the manufacture of merchandise, but decree laws have been
78
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
instituted to restrict the activities of foreign corporations and the
employment of foreigners.
A decree law was passed in 1923 limiting the acquisition of realty
and the conclusion of leases by foreigners (except those governed by
Belgian law) to 9 years without special authorization of the Ministry
of the Interior.
In order to own or lease property for a period greater than 9 years,
the foreign company is required to have a Belgian president, Belgian
manager, Belgian managing directors and more than 50 percent of its
board of directors of Belgian nationals, and its principal place of
business in Belgium.
The Belgian Government furthermore reserves the right to reject
or prohibit the establishment of foreign branch factories, subsidiaries,
and the like, if such establishment meets with the disapproval of
Belgian trade associations. This was exemplified by the objections
of the Belgian glass industry on the grounds that "There is no room
for a competitor/' when the Pittsburgh Plate Glass Co. in 1947
applied for the establishment of a branch factory.
By a decree of 1935 the Belgian Government reserves the right to
oppose the operation of a foreign company or the extension of an
already existing foreign company, if the Belgian Government deems
it inexpedient for the country's economy.
The Belgian Government reserves the right to request that a certain
percentage of locally manufactured goods be used by a foreign company. For example, by a gentlemen's agreement the United States
automotive assembling plants have agreed to utilize at least 40 percent
of locally made automotive parts and accessories in the assembling
of all automotive vehicles.
Taxation.—A 1938 law gave the Belgian Government the right to
assess a local company on any profits realized directly or indirectly
through it by a foreign controlling company of the local concern.
Furthermore, the company is required to deposit with the Belgian
tax authorities guarantee for payment of taxes, and is required to
file with its tax declaration the latest balance sheet and profit-andloss account not only for the local branch company or subsidiary but
for the parent or controlling company.
Because of the difficulty inherent in determining the profits of
foreign firms operating branches in Belgium, the tax authorities
assessed these firms on an arbitrary basis if their profits fell below the
average earnings of local firms of a similar nature.
Labor regulations.—A 1930 decree requires foreigners entering the
country for employment to obtain an authorization from the Ministry
of Justice, an identity card, and to submit an employment contract
from an employer established in Belgium. By a 1939 decree all
foreigners who apply for employment in Belgium must pay 500 francs
upon application for their identity card which in addition is subject to
a stamp tax.
Foreign exchange controls.—Foreign exchange is under strict control.
Present indications are that current earnings are being transferred but
no export of capital seems possible.
Competition with Government-owned companies.—The
merchant
marine is Government-owned. Railroads and communications are
semiprivate monopolies.
Nationalization.—Belgium
has not followed a postwar policy of
nationalization.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
79
Czechoslovakia
Right to do business.—Before World War I I foreign corporations
doing business in Czechoslovakia were restricted by requirements
for special licensing (particularly as far as acquisition or lease of real
estate in frontier zones was concerned), for special reports, requirements for the employment of citizens in key positions, certain regulations referring to the employment of foreigners and restrictions on
residents in frontier zones. There were also special provisions
restricting the operations of foreign insurance companies in Czechoslovakia. Although all these regulations are probably still in effect,
their importance is minimized through the nationalization legislation
passed after the war, which is dealt with below.
Taxation.—There appears to be no evidence of discriminatory
taxes against foreign enterprises.
Labor regulations.—According to 1936 legislation, the employment
of foreigners in industry was subject to license.
Foreign exchange control.—Tight foreign exchange control is maintained. Since all major industrial investments have been nationalized
as outlined below, the question of transfer of capital and earnings does
not arise except in minor instances.
Nationalization and competition with Government-owned companies.—
The law provides for nationalization of key industries, notably power,
mining, iron and steel, chemical, banks and insurance, and of all
industries if the number of employees exceeds 150 to 500, depending
on the industry. Railroads, communications, motion-picture, tobacco,
and salt industries are Government monopolies.
In an exchange of notes with the United States Government in
November 1946 the Czech Government pledged itself to make adequate compensation for nationalized American-owned property.
Negotiations for the implementation of this undertaking have been
carried on, but so far have not been brought to a conclusion. According to press reports it has been an obstacle to the negotiations that no
agreement could be reached concerning the treatment of claims held
by recently naturalized American citizens who had been Czechs.
Denmark
Right to do business.—A foreign stock company which in the opinion
of the Minister of Commerce is lawfully organized in its own country
may do business in Denmark, but may not conduct a retail business.
The fact that th« company is foreign and its nationality must be
indicated in its name. The usual formalities have to be complied
with.
As far as companies organized under Danish law are concerned,
members of the board of directors who reside abroad and who are
not Danish citizeiis can sign in the name of the company only collectively with persons residing in Denmark. Except in the case of
companies which bore their present name before January 1, 1918, a
Danish company may incorporate in its name the name of a Danish
locality or of Danish nationality only if all the members of the board
are either citizens or have resided in the country for the last 5 years.
Taxation.—The Danish tax law treats a foreign corporation as an
individual. The consequent difficulties make it advisable for a foreign
corporation to operate in Denmark through a Danish subsidiary.
Labor regulations.—With the exception of the restrictions on foreign
directors 6i corporations, there is no evidence of labor regulations
80
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
discriminating against foreigners. However, since the employment of
foreigners is subject to license in practically all European countries,
it must be assumed that corresponding regulations exist also in
Denmark.
Foreign exchange control.—Foreign exchange is tightly controlled
and it appears unlikely that capital can be exported from the country.
There is no evidence concerning the transfer of earnings.
Competition with Government-owned
companies.—Transportation
and communications have been Government monopolies since before
the war. There is a state organization for the import of coal and the
Government exercises some control of industry through the allocation
of imported articles and exportable goods.
Nationalization.—Denmark
has not followed a postwar program of
nationalization.
France
Right to do business.—Little material is available on prewar France
but the; data on hand indicate an absence of joint-participation requirements, with some exceptions noted below.
While there was no general requirement that the majority of the
directors of a French corporation be French nationals, it was a common practice to put French nationals in a majority position on the
board because during the First World War the nationality of a company had been determined by the complexion of its board of directors
and some firms had been taken over by the Government on that basis.
Certain general aspects of French law tend to discourage American
investment. For instance, the presidents and boards of directors of
corporations are liable for debts of the company.
Exceptions: (1) a 1938 decree required that a French company importing petroleum have a majority of French citizens on its board of
directors and also a French president and a French general manager;
(2) officers of French shipping companies had to be nationals; (3)
foreigners were excluded from bidding for public works and for supply
contracts. However, foreign-owned companies organized in France
were not excluded, because French jurisprudence considered all companies incorporated in France as French.
All French and foreign businessmen must obtain a "Carte de commercant" before engaging in business. This is a permit to do business granted by the local prefects of police only after consultation with
the professional organization in the field concerned. Even if granted
it may take 3 # months to a year to obtain a permit. I n fields regarded
as already overcrowded permits are not granted. Owing to shortages
of fuels, raw materials, and manpower, many domestic fields are overcrowded, as is foreign trade due to the shortage of exchange. Many
areas of trade are therefore more or less closed to newcomers for the
time being.
Taxation.—There was some double taxation on foreign investment
in France which was alleviated in respect to American investments by
the Franco-American Treaty for the Elimination of Double Taxation,
effective January 1, 1946.
Labor regulations.—Prewar
France had extensive limitations on
foreign labor in the country which may still exist in part.
Foreign exchange control.—Foreign exchange is tightly controlled and
transfer of capital not possible except in hardship cases where small
sums are involved. As to profits and interest, the French Govern
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
81
ment has given the assurance that it would permit the transfer of
current returns on American investments, but there is no information
available to show how difficult it is in practice to obtain the transfer,
which seems t6 take place sporadically. The import of capital is
also controlled.
At the present time, persons who want to bring in capital to start a
business in France must show that such capital importation will either
produce foreign exchange or that it will increase over-all production
of necessities. In connection with the latter point, the over-all
shortages of raw materials, energy and manpower in France are
such that additional drains on these resources are not welcomed
unless they produce positive over-all benefits.
For foreign exchange reasons, certain insurance risks must be covered with French companies.
Competition with Government-owned companies and nationalization.—
After the war the French Government undertook an extensive program of nationalization affecting the major French banks and insurance companies, coal mines and gas and electric companies, &s*wel
as the air lines and merchant marine. Through confiseation of
German-owned property and property of collaborators, the Government also acquired an interest in two major automobile manufacturing
companies and some aircraft plants. Foreign companies operating
in France in fields'which are not subject to nationalization or which
are only partly nationalized (such as banks) are permitted to carry on
under certain regulations, and theoretically even new ones could be
established with permission of the Government.
Greece
The right to do business.—Law No. 2190 governing the establishment of corporations in Greece makes no distinction between Greek
and foreign companies. Foreign companies are treated on an equal
footing with Greek, provided reciprocal treatment is accorded by the
company's home country, as is the case between United States and
Greece.
An American or foreign company may operate in Greece by one
of the following methods:
(a) By appoifrting-a resident agent or* &fiekkrepres#nfc&tive3 foreign
or Greek.
(6) By opening a branch office:
(i) Certain documents must be filed with the Greek Ministry
of National Economy; legalized certificate containing
information about the company, a power of attorney,
and a copy of the statutes of incorporation,
(ii) Payment of dues and fees for obtaining permission t o
operate.
(c) By establishing a Greek corporation of which the foreign
company is a stockholder.
(i) Statutes must be filed with the Ministry for approval.
(ii) Statutes must be notarized and are subject to stamp taxes
and fees,
(iii) Payment of dues and fees for obtaining permission to oper•ate.
(iv) Must establish a domicile in Greece.
(v) Books must be kept in Greek.
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FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
Taxation.—(a) Foreign companies:
(i) License tax or tax on professions.
(ii) Net income tax (40 percent of the net profits after a deduction of 24,0.00,000 drachmas on which no tax is
collected),
(hi) Operating tax (based on the actual or presumed rent on
the premises and installations occupied by the company).
(b) Foreign representatives of foreign firms:
(i) Net income tax (as above).
(ii) If employed on a salary basis, they are subject to a specific
category of salaried services of the net income tax
(1 percent of the annual earnings after deduction of a
-y ,*
tax-free amount of 1,440,000 drachmas).
(iii) Composite income tax (collected on the aggregate annual
income from all sources after deduction oi tax-free
amount of 25,000,000 drachmas) is fixed at from 10 to
90 per cent on aggregate income,
(iv) License tax or tax on professions.
Labor regulations.—There is no information available concerning
thie employment of foreign labor.
Foreign exchange controls.— Strict exchange control is exercised and
transfers of earnings as well as capital appear impossible at the
%
present time.
Competition with Government-owned, companies.— The Government
has a monopoly on salt, matches, cigarette paper, kerosene, and some
minor items. I t also handles the importation and distribution of
materials imported through Allied aid, but utilizes the services of
private importers and distributors to some extent.
Nationalization.— Greece has not engaged in a postwar policy of
nationalization.
Italy
The right to do business .—Under Italian law, it is possible for any
foreign citizen to trade, acquire property, or set up establishments in
Italy in the same way as an Italian citizen or company. However,
authorization from the Italian Ministry of ike Treasury is required
for foreign entities to set up a commercial company in Italy, or to
participate financially in an Italian commercial company (e. g., acquisition of bonds, shares of stock, etc.); according to R D Law No. §07,
of July 24, 1946, repeating legislation of 1942.
* >,,,
According to II Globo, Rome economic daily, the Council of Ministers has decided to revoke the aforesaid authorization requirement
in a program designed to facilitate the influx of foreign capital into
Italy. We do not have information that the aforesaid decision has
become effective.
Moreover, all trustee* and auditing companies, including branches of
foreign firms, undertaking to administer estates for the account of
third parties, organize and audit accounts of firms, and represent share
and bondholders are required to have (a) two-thirds of the board of
directors, as well as the president and managing director, Italian
citizens; (b) auditing comptrollers inscribed in the Italian professional
rolls and the personnel, other than those assigned to routine work,
eligible for admission to such rolls. (Decree No. 1966 of November
23, 1939, published in the Gazetta Officiate, of January 10, 1940.)
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
83
There are no legal conditions prerequisite to doing business in Italy
except those mentioned above.
Taxation.—The Italian fiscal regime is based on the principle of
identical treatment of Italians and foreigners. Income realized or
property owned in Italy by foreigners is taxed in the same way as if
Italian citizens were concerned. The extraordinary property tax
(postwar capital levy) applies to foreign corporations as far as their
assets in Italy are concerned.
Labor regulations.—There does not appear to be any material showing special requirements for the employment of foreigners in Italy.
Foreign exchange controls.—Foreign exchange is tightly controlled
and none is made available for the payment of earnings or capital at
the present time.
Competition with Government-owned companies and nationalization.—
The Italian Government has a monopoly on tobacco and matches.
The railroads are Government owned. Through the Italian Credit
Consortium for Public Works and the Public Utility Credit Institute,
the Government has provided loans to industrial and public utility
companies in substantial amounts. Through the Institute for Industrial Reconstruction it has practical control of the banking system
and is a dominating shareholder in some of the basic industrial enterprises of the country, notably shipbuilding, electric manufacturing,
the mechanical industry, iron and steel, communications, synthetic
rubber, mining, and to some extent in the real estate business.
Unofficial estimates put the state ownership at approximately
one-fourth of the electric power plants, with the remainder operated
under 60-year concessions; 70 percent of the iron mines; 75 percent
of pig-iron production; 45 percent of steel production; about 40 percent
of shipbuilding and the four largest shipping companies; and in addition, large percentages in other industries, notably a large majority
in mechanical industry enterprises accounting for about 60 percent
of total mechanical production.
There is, therefore, already a high degree of nationalization in
Italy, but although the problem of nationalization in general has
been discussed, no uniform policy in that direction has developed so
far.
Netherlands
Right to do business.—All new enterprises, whether owned by Netherlands subjects or foreigners, must be licensed by the Government.
I t has been the policy of the Netherlands Government recently to
use this requirement for regulating production in certain industries.
A license is usually issued only if the product in question is not yet
being manufactured in the Netherlands and if, by establishing such
an industry, the foreign-exchange position of the country is being
improved. I t is not known whether this principle has been applied
to the establishment of periodicals or newspapers. I t should be
noted, however, that the Government favors American participation
in old or new Netherlands industries whereby the American partner
puts in up to 25 percent of the capital, if possible in the form of machinery or other capital goods.
Wholesale trade in certain commodities is being exempted from the
license requirement as their products become plentiful. However,
this fact has to be considered in connection with the allocation of
raw materials mentioned below.
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FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
There appear to be no restrictions on the number of foreigners who
may serve as directors of corporations.
Taxation.—There does not appear to be any discriminatory taxation of foreign busin essoin teres ts or foreigners.
Labor regulations.—Foreigners require a permit for working in the
Netherlands.
Foreign exchange control.—Foreign exchange is tightly controlled
and the export of capital appears to be prohibitive except in unusual
cases. However, the regulations of the exchange control appear to
permit the transfer'of dividends and interest on investments owned
by nonenemy foreigners without interruption since M a y 10, 1940.
I n the case of direct investments each case is apparently considered
separately. There appears to.be little information on the* practical
execution of a ruling permitting the repayment of maturing obligations.
There are special regulations covering the earnings of insurance
companies.
Competition with Government-owned companies.—The Government
owns the railroad and communications systems. I t also has a
very substantial interest in the country's coal mines, as well as in the
only existing blast furnace company and its subsidiaries, which,
among other things, produce fertilizer. The only existing air line is
Government controlled. Through the Bank of Reconstruction the
Government has become a lender to, and an influence in, numerous
industrial enterprises.
Agricultural and industrial products are with few exceptions controlled through bureaus which are partly composed of Government
representatives, so t h a t in this way the Government has an influence
on the entire business life of the country. Through its foreignexchange control and the import-export licensing system it controls
foreign trade. The Government has on certain occasions itself
entered foreign trade, and all foreign trade with Germany and Japan
goes through Government channels.
Nationalization.—A bill for the nationalization of the Netherlands
Bank is pending.
Norway
Right to do business.—Under the Norwegian law, a foreign company, properly organized in its own country, may open a branch
office and engage in legitimate business activity under the management of a special board of directors, and subject to the provisions of
the Norwegian law. The board must file a notification in the office
of the Handelregister (Commercial Registrar) duly executed, that
the capital is entirely paid up.
The notification must be signed by the members of the board of
directors and accompanied by a certified statement from proper
foreign authorities, certified by the Norwegian consul, to the effect
that the company is duly incorporated in its own country, and has
its head office there. The members of the board are individually
and collectively liable if the notification is neglected. In the case of
any change in the organization, bankruptcy included, the registrar's
office must be notified. Only the amount paid up can be designated
as the capital of the company. The foreign company's name must
always be followed by the words "Utenlands Aktieselskap" (foreign
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
85
company) on stationery, advertising matter, and other
documents.
Foreign corporations, issuing shares "to bearer" must publish the
company's annual balance sheet at the end of each year in the official
Norwegian publication, Norsk Kundgjerelsestidende.
Although the majority of the voting stock may be owned by foreigners, the board of directors of a corporation, incorporated under
Norwegian laws, must be Norwegian citizens or resident foreigners,
who may be elected to membership on the board only after a residence
of 2 years.
After the company is properly organized, a license must be secured
by the managing director, and if he is not on the board of directors,
at least one member of the board must secure such a license. To
secure it, he must be a resident of Norway; continue to reside there;
he must be 21 years of age, and have a certain proficiency in bookkeeping and accountancy.
According to prewar information, the Norwegian Government
always tried to control the sale of the natural resources of the country
in such a manner as to prevent foreign capital and influence from
gaining too strong a foothold. Foreign persons and foreign corporations had to obtain special concessions to acquire such natural
resources as land, forests, waterfalls, mines, peat bogs, limestone
quarries, and fishing rights. Norwegian companies also had to
obtain special concessions if 35 percent of their shares were owned
by a foreign -concern.
In general the shares of bank companies could be held only by
Norwegian citizens, but in certain special cases foreigners were permitted to own one-third. Ships of Norwegian registry had to be
under two-thirds Norwegian ownership, and the boards of directors
of shipping companies had to consist entirely of Norwegian citizens.
Taxation.—It appears that foreign corporations pay income taxes
at a somewhat higher rate than domestic corporations.
Labor regulations.—Although
there is no material on this point,
restrictions of employment of foreigners are so common in Europe
that it must be assumed that they also exist in Norway.
Foreign exchange control.—Foreign exchange is tightly controlled
and transfers of capital do not seem possible. The transfer of interest
and current earnings appears to be difficult at times.
Competition with Government-owned companies.—The Government
operates a grain monopoly, the railroads, the telephone and telegraph
system, the broadcasting system, and a wine monopoly. State electrical enterprises operate nine important hydroelectric power plants.
The Government is establishing a new steel mill. Also, through
confiscation of German property it has acquired the Nordic-Scandinavian Light Metal project started by the Germans, as well as an
aluminum producing project still under construction.
Nationalization.—Nationalization
of the Bank of Norway has been
proposed by the Government.
Poland
Information regarding Poland is scarce and thus does not lend itself
to a break-down as used in the case of other countries.
Poland is engaged in an extensive program of nationalization
affecting all basic industries regardless of size, all other industrial
86
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
enterprises capable of employing more than 50 workers per shift,
and generally any enterprise regardless of size if in the opinion of the
competent minister it holds "a production monopoly in an important
branch of the national economy/' On the other hand, all establishments in the building industry are exempt from nationalization and
the Government may exempt, other enterprises. The Government
has established a procedure under which persons engaged in trade, if
in doubt, can ascertain whether they will be Dermitted to continue
as a private enterprise.
According to Polish law, new industrial and commercial businesses
in the category subject to nationalization may be established by anyone fulfilling certain legal requirements, and such new businesses will
constitute private property which may be disposed of in accordance
with the regulations in force even if they employ more than 50 persons.
The application for a license should be submitted to the appropriate
Ministry (i. e., Ministry of Industry, Ministry of Transport, or Ministry of Supply and Trade) having jurisdiction over the proposed
enterprises, with a copy for the President of the Central Board of
Planning. The following are to be enclosed with the application:
A copy of the commercial registration of the enterprise or a similar
document; a statement as to the purpose of the enterprise and the
scale of production; and a summary of the financial arrangements of
the enterprise..
A foreigner applying for a license has to submit, in addition to the
above, a certificate from the Polish consulate in his country testifying
that Polish enterprises established on the territory of his country
enjoy the same rights as do the domestic enterprises.
A license is not required for the establishment of an enterprise
"which does not fall within the category of those subject to nationalization. However, the kind of enterprise might be prohibited by
special regulations.
Strict control is maintained over all transactions in foreign trade.
State organizations go into the field of export and import particularly
of- agricultural products, and of course the products of nationalized
industries such as coal.
~*
Foreign exchange is at present apparently not being made available
for the payment of either earnings or capital due.
The matter of compensation to American citizens for nationalized
properties is still under negotiation but there does not seem to be any
evidence that the Polish Government intends to discriminate against
former American owners.
There is no up-to-date information on the taxation of private
enterprise.
Portugal
Right to do business.—As a rule, foreign businessmen and manufacturers are permitted to exercise their activities in Portugal under
conditions of absolute equality with national businessmen and manufacturers.
However, national firms only are permitted in the operation or
exercise of (a) public services or property.of public domain; (b) activities governed by a special regime, such as those of tobacco, refineries, and tanning industries; and (c) other activities which are
of fundamental importance for the defense of the state or the economy
of the nation.
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
87
In order to qualify as a national company, 60 percent of the ownership must be Portuguese. This percentage may be raised by the
Government. In companies existing at the time of the enactment b y
the Government of the law (1943) Portuguese-owned shares must
first be offered to Portuguese before being sold to foreigners, while
Portuguese-owned stock in new companies cannot be alienated.
There is no law regulating the nationality of directors except in
mining companies. Only all-Portuguese companies can acquire
ships.
I t appears that companies constituted abroad having their headquarters in Portugal are considered as Portuguese except in businesses
reserved for nationals.
Taxation.—There appears to be no special taxation of foreigners.
Labor regulations.—The technical director and president of mining
companies must be Portuguese; also crews of ships.
Foreign-exchange control.—Although official foreign-exchange control
does not exist, the Bank of Portugal exercises some control over
foreign transactions. Payment of current earnings and interest
appears to be possible but the policy regarding capital transfer is not
clear.
Competition with Government-owned companies and nationalization.—
There does not appear to be any Government competition with private
business and no postwar policy of nationalization has been followed.
Rumania
Right to do business.—After the First World War the rule was
established in the new provinces of Transylvania, Bukovina, and
Bessarabia that 75 percent of the directors should be Rumanian
nationals in the case of all business enterprises, including existing
firms. The Rumanian mining law of 1924 required that the president
and two-thirds of the directors of every mining company should be
Rumanian; existing companies were given 10 years to transform
their boards accordingly, although it was necessary that Rumanians
at all times constitute a majority of the directors.
Foreigners could not buy rural land, but they could rent it for a
period of 90 years. Foreign corporations had to obtain authorization from the Government to open an agency or a branch in
Rumania, and had to submit-proof of reciprocity in the countries of
their origin.
In general, Rumanian joint stock companies had to have a board
of directors at least one-third Rumanian in complexion. A 1934 law
raised the required participation to 50 percent, although it is not
clear whether this law applied to the general run of Rumanian joint
stock companies. In addition, certain companies subject to the law
for the commercialization and control of the economic enterprises of
the state (the scope of which is not clear) were required to maintain
boards of directors that were at least two-thirds Rumanian.
For vessels to be of Rumanian registry it was necessary that at
least two-thirds of the capital of the owning company be Rumanian,
and that three-fourths of the board members be Rumanian. Although
definite information is difficult to obtain, it appears that at present
80 percent of the personnel of the vessel (in exceptional cases subject
to license, 50 percent) must be Rumanian. The chairman of the
corporation is required to be an ethnic Rumanian.
88
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
Contracts between agents and foreign firms are subject to Government approval.
Foreigners are restricted from buying farm land.
Taxation.—No information regarding the taxation of foreigners in
Rumania appears to be available.
Labor regulations.—The employment of foreigners is subject to
Government control.
Foreign exchange control.—Foreign exchange is strictly controlled
and no transfers of either current earnings or interest at present
appear possible. Transfer of capital also appears to be impossible.
Competition with Government-owned companies and
nationalization.—The country being under Russian occupation, the so-called
Sovrom companies (joint Soviet-Rumanian enterprises) are increasingly dominating the fields in which they operate: transportation, including air transport; petroleum; textiles; and some bauxite-producing
and aluminum-producing companies. Although other petroleum and
textile companies exist, it would appear that competition with the
Sovrom companies will be subject to increasing difficulties.
Spain
Right to do business.—All companies carrying on manufacturing
and similar operations in Spain must be domiciled in Spain, which
limits foreign corporations practically to trading, selling, and export
and import. However, it is sometimes possible to overcome this
difficulty through technical contracts. A 1939 law provides that at
least three-quarters of the capital of any new industrial enterprise
must be Spanish-owned while in the case of industries producing
military goods, the entire capital must be Spanish-owned. No new
industry may be established and no existing industry may be expanded or transplanted without permission of the Government.
Membership in syndicates (groups comprising enterprises in any
given field through which certain controls are exercised) is compulsory.
Changes of capitalization and liquidation of companies as well as the
transfer of shares to foreigners are subject to permit. The same
applies to the sale of portfolio securities to foreigners under certain
conditions. Existing industrial enterprises may not sell more than
25 percent of any issue of new securities to foreigners and the ownership of industries producing war materials may not under any circumstances be transferred to foreigners. In the case of insurance
companies two-thirds of the capital must be Spanish-owned and the
majority of the board of directors, as well as the manager, must be
Spaniards. Rigorous regulations apply to the operation of branches
of foreign insurance companies.
Taxation.—The available material does not indicate any tax discrimination against foreigners. Taxes incidental to the establishment of a typical corporation have been estimated at approximately
2.6 percent of paid capital, but it is not possible to say whether this is
higher than the corresponding organizational taxes on a domestic
business.
Labor regulations.—The law imposes severe restrictions on employment of foreigners in technical and administrative positions and
provides that no more than one-quarter of the directors of an industrial
enterprise may be foreigners.
In the case of new enterprises 25 percent of the technical and admin
istrative personnel may be foreigners for the first 3 years, after which
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
89
time such foreign personnel has to be reduced to 10 percent unless
an exemption is granted.
Foreign exchange control.—Foreign exchange is tightly controlled,
preventing the export of capital in the case of earnings. The Spanish
Government has apparently given certain oral assurances t h a t 6 to
7 percent earnings can be transferred, but as a practical m a t t e r it
has been next to impossible to obtain transfer of earnings due to the
extreme shortage of foreign exchange. The Government has, however, made payments under its contract with International Telephone
& Telegraph Co. for the purchase of the majority of the telephone
company.
Competition with Government-owned enterprises and nationalization.—
The principal railroads are Government property and the petroleum,
tobacco, and motion-picture industries are Government monopolies.
The Government also controls the telephone system.
The Spanish Government owns, in fact, a considerable share of
Spanish industries, mostly through the Instituto Nacional de Industria
including all of the capital stock of leading enterprises such as mining,
Uquid-fuels production, hydroelectric industry, the only existing air
line, shipping, aluminum, and mechanical industries, as well as minority in the airplane, fertilizer, and electric machinery industries.
These factors, combined with the strict allocation of raw materials,
gives the Government practical control of every branch of trade.
Sweden
Bight to do business.—While in general foreign citizens enjoy the
same legal rights as Swedish subjects, a foreigner cannot, without
Government consent, purchase or hold real estate, engage in any kind
of business, or conduct mining operations. The right of a foreign
company to do business in Sweden is not absolutely and definitely
dealt with in Swedish law, hence foreign firms doing a substantial
business in the country have generally found it expedient to operate
as a Swedish company.
At present the formation and incorporation of Swedish share companies are governed by the provisions of a law dated August 12, 1910,
which went into effect on January 1, 1912. This law provides that
in forming a share company there must not be less than five founders,
all of whom are required to be Swedish subjects domiciled in Sweden.
These founders are required to draw up and individually sign the
articles of association, stating the object of the company's formation;
the amount of the capital stock, which must not be less than 5,000
crowns and may be made up in property and personal services as
well as cash, the value of the shares (not less than 50 crowns), the
location of the company, and the composition of the board of directors.
According to information furnished by the American commercial
attache in Stockholm, the stock may be held partly or wholly by
foreign owners, but a foreign citizen or Swedish subject domiciled
abroad may not be elected a member of the board of directors unless
authorization has been granted by the Swedish Government.
Before the war, foreign ships were ordinarily prohibited from engaging in coastal trade. For a ship to be of Swedish registry it was
necessary that the financial interests of foreigners not exceed Onethird.
A new corporation law was enacted in 1944 and will come into force
on September 1, 1948. I t generally tightens the control of the Govern69140—48
7
90
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
ment over corporations, especially with respect to intercorporate
relationships. So far no English version of this law has become
available.
Taxation.—In general, there are some discriminatory features
against foreigners in the Swedish tax laws but they do not appear to
be coiisiderable. Also, there is an agreement in force between the
United States and Sweden for the elimination of double taxation.
Labor regulations.—Without
special permission, a foreigner cannot
seek employment in Sweden, nor is he permitted to follow any occupation except that of commercial traveler.
Foreign exchange control.—Foreign exchange is controlled. While
interest and earnings are generally transferred, transfer of capital
in each case is subject to special license.
Competition with Government-owned companies and nationalization.—
The Swedish Government operates a majority of the railroads and is
gradually acquiring the remaining railroads. The telephone and
telegraph systems, radio, and the tobacco and liquor monopolies are
operated by the Government. The import of sugar is a Government
monopoly but rented out to private enterprise.
The Government has acquired some other industrial interests, but
has not followed a policy of nationalization.
Switzerland
Laws affecting the establishment and operation of American business concerns:
Right to do business. —With the exception of the importation, production, and sale of alcohol, salt, and gunpowder, which are monopolies
operated by the Federal and cantonal governments, and the establishment of publishing firms, which is restricted to Swiss nationals,
American business firms enjoy the same rights to engage in commercial
activities as Swiss nationals or citizens of other foreign countries.
Public utilities, such as the railroad, telegraph, and telephone systems,
are owned and operated by the Government.
American firms can establish either a branch or a corporation in
Switzerland in order to carry out commercial activities. Under
Swiss law, a branch must be recorded in the Register of Commerce
at the place where the branch is maintained. Registration is made
in the name of the foreign corporation, but there are restrictions upon
names which may be so registered. Proof must be furnished that
the parent organization has been created and recognized by the state
of its creation.
As regards the establishment of a corporation, said corporation
must have a capital of at least 50,000 Swiss francs. Shares may be
issued either to bearer or a specified person. Both types of shares may
be issued at the same time in a proportion fixed by bylaws. Shares
are issued only at par or for sums in excess of par. Stockholders are
jointly liable for the debts of the corporation to the extent of its
capital. Before issuing shares, the corporation must be recorded in
the Commercial Register. The board of directors must be composed
of one or more persons, all of whom are stockholders. If the board
consists of one person only, he must be Swiss; if composed of several,
the majority must be Swiss citizens residing in Switzerland.
Taxes, labor laws, etc.—American business concerns in Switzerland
are subject to the same labor laws, tariffs, and exchange controls as
firms owned and operated by Swiss nationals. As regards income-tax
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
91
levies, a branch is taxed by the Swiss Government in accordance with
the amount of business done by the branch office. If a Swiss corporation is formed, only the property and profits pertaining to the
local enterprise are considered in the Federal and cantonal tax assessments.
LATIN AMERICA
Argentina
Right to do business.—The status of foreigner does not in general
constitute a limitation on the right to engage in business in Argentina.
As regards foreign companies, the commercial code merely imposes
certain conditions which vary with the manner in which operations
are to be carried on in that country:
(a) A foreign company with no establishment or representative in
Argentina may freely carry on occasional lawful commercial acts
therein or trade directly with residents of Argentina.
(6) Firms organized abroad whose principal operations are carried
on in Argentina are regarded, for all purposes, the same as domestic
firms and are subject to the provisions of Argentine commercial law.
(c) Foreign organized firms may establish a branch or any other
kind of company organization within Argentina by complying with the
usual legal requirements as to registration, etc. Such an organization
is accorded under the law substantially the same privileges and is
'subject to the same requirements as an Argentine enterprise.
There are, however, limitations specifically provided in connection
with the establishment of banks, insurance companies, mining and petroleum companies, public utilities, and the manufacture of armaments.
Taxation.—The Argentine income tax is applicable to income derived
from Argentine sources and is payable on such income regardless of
the nationality, domicile, or residence of the recipient thereof.
The net earnings of branches or affiliates of foreign companies from
Argentine sources is determined on the basis of the separate accounts
carried by such local establishments. Foreign transportation companies in Argentina, engaged in international traffic between Argentina
and other countries, international news agencies, foreign insurance
companies, and foreign motion-picture exploitation in that country
are accorded different treatment from that applying to local companies.
The income-tax rate on both domestic and foreign corporations
operating in Argentina is 15 percent of net earnings or of dividends
declared, whichever is greater. An additional 5 percent is, however,
collected on dividends remitted abroad.
The remittance or credit abroad of any class of income derived from
Argentine sources is likewise subject to the total 20 percent tax.
This applies to interest from bearer bonds or other bearer securities
(except bearer stocks, which are covered under the 15 and 5 percent
tax mentioned above). Valid Argentine recipients of such income
tax are subject to the norma] tax of 5 percent, plus any corresponding
surtax which is levied on net income of 5,000 pesos. Provision is
made to prevent evasion of the tax on remittance of income abroad.
Argentine individuals who habitually reside abroad are subject to
an absentee surcharge of 30 percent of the normal tax and surtax on
income derived from real property ownership or agricultural activities
in Argentina. Foreign corporations are likewise subject to the absentee surcharge of 30 percent of the normal corporate tax on such income.
92
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
The excess-profits tax and capital gains tax are likewise levied on
income from Argentine sources and are applicable alike to nationals
and foreigners. The sales tax, stamp tax, license tax, excise taxes,
commercial travelers' tax, real-estate taxes, and the municipal service
taxes are also collected without discrimination as to nationality.
Labor.—There is no general law fixing the percentage of nationals
to be employed in commerce and industry. However, in the field of
public telecommunications there are regulations providing that 80
percent of the higher technical and administrative personnel employed
by a concessionary must be Argentineans. Of the subordinate employees this percentage is fixed at 50. Measures are being taken so
t h a t eventually all employees will be nationals.
I n the case of public-works projects it has long been the requirement
t h a t a given percentage of nationals be employed. A like requirement
is being applied in the so-called mixed company enterprises being
formed.
Foreign exchange controls.—For several years there were no restrictions on or control over such transactions, except t h a t upon buying
amounts in excess of $250 for such purposes, the buyer was required
to file with the selling institution a declaration as to the purposes for
which the funds were to be used. The same rate, free market, was
applied to all such exchange sales except those for the financial services of foreign-owned railways (British and French), in which case,
the preferential buying rate was applicable. The difference in these
rates has been small, the preference to the railways amounting to 1.5
to 2.8 percent in recent years.
A recent circular of the Argentine Central Bank, No. 788 of July 7,
1947, limits withdrawals of capital and the payment of interest,
dividends, etc., on foreign capital invested after July 8, 1947, as follows:
Duration and nature of investment
Short term (1 year) sundry investments
Capital reimbursement upon
expiry of—
12 months
Financial services
Net profit: Interest or dividendl
exceeding 5 percent per annum.
Net profit: Interest or dividend
exceeding 7 percent per annum.
3 years.
Net profit: Interest or dividend
exceeding 8 percent per annum.
Medium term: 2 Fixed investments in indus- / 4 years.
Net profit: Interest or dividend
trial or agricultural activities.
exceeding 9 percent per annum.
5 years
_ Net profit: Interest or dividend
exceeding 10 percent per annum.
6 years
Net profit: Interest or dividend
exceeding 12 3percent per annum.
Long term
__
By agreement- By agreement.
(2 years
not
not
not
not
not
not
i Profits exceeding these margins must remain in the country, being then considered as Argentine capital.
2 Reinvestment, after 2 years, of medium-term capital may be authorized when it is justified, within the
terms of investment, provided that it is effected within the same group of activities; but it will be necessary to apply for this authorization from the Central Bank, for the purpose of retaining the right to reimbursement
and to the scale of financial set vice remittance.
3
Such agreements will contain a clause allowing for the coparticipation of Argentine capital.
Detailed regulations implementing the'provisions of circular No. 788
as to capital invested after July 7, 1947, were issued on August 29, 1947,
and on September 29 as to foreign capital invested prior to July 7,1947.
The limitation of remittances at the above rates to truly foreign capital,
which excludes reinvested earnings is of considerable concern to several
large firms which have reinvested in Argentina all or a substantial part
of the earnings of their Argentine branches.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
93
Competition with Government-owned companies.—Especially
since
mid-1946 the Argentine National Government has directly and indirectly extended its influence over many sectors of Argentine business. Through the central bank controls are exercised over credit and
foreign exchange. Direct engagement in exporting and importing is
effected through the central bank's subsidiary, the Argentine Trade
Promotion Institute. This organization exercises a monopoly over the
export of certain principal products, such as grains, meat, hides,
vegetable oils, etc. I t purchases from Argentine producers at fixed
official prices and sells on the world market. The profits are retained
by the Government for financing, in part, the 5-year plan. The Trade
Promotion Institute is also engaged in importing of vehicles, machinery, and industrial equipment, and other articles in short supply.
In some business activities the Government operates its own enterprises in direct competition with private interests. For example, the
National Government has long participated in commercial banking
through official banking institutions. The Government petroleum
organization, known as the Y P F , has long dominated the production
and marketing of petroleum products. Private companies also oper.ate in this field. The Argentine State Railways is a long-established
enterprise. Through the acquisition of the British and French railway holdings the entire common-carrier mileage in Argentina will be
government-owned. The state merchant fleet, established during
World War I I , and which is now being greatly expanded, competes
with private Argentine and foreign shipping companies. The wholly
government-owned enterprise, Fabricaciones Militares operates various activities connnected with Xhe manufacture of military materials
and the development of certain basic industries, in which it is authorized to participate with private interests.
In 1946 a basic law, replacing special prior legislation, was enacted
authorizing the establishment of "enterprises composed of both government and private Argentine capital, to be known as mixed companies.
Under this corporate form the government has entered such fields as
commercial aviation, security investment, insurance, mining, chemicals, and certain other manufactures. The government-ow^ned telephone system is also a so-called mixed company and it is expected
that the railways will be operated by such a company. The new
steel-producing industry is likewise to be of mixed capital.
Nationalization.—The
movement toward the national recuperation
of public-service industries in Argentina became more strongly defined
in 1946. During the year, or shortly thereafter, the national government arranged to purchase from private interests the French-owned
railways, the British-owned railways, the United States-owned telephone system of Buenos Aires and two privately owned gas companies. Consequently, public ownership was extended to 90 percent
of the country's telephones, all of the common carrier railways, and
90 percent of the country's gas services. The internal telegraph
services have long been operated by the national government. Although present electric-power facilities continue to be largely under
private ownership, the national government's development program
envisages an integrated, publicly owned power system. The nationalization of the Central Bank was completed in 1946.
94
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
Bolivia
Right to do business.—There are no restrictions under Bolivian law
as to the nationality of stockholders, partners or other owners of
business enterprises. The only restriction respecting the nationality
of directors, officers or employees of business enterprises is contained
in article I I I of the Ley General del Trabajo (general labor law),
which provides t h a t foreign employees may not exceed 15 percent of
the total number of employees.
Bolivian law is silent concerning the right of foreign individuals or
companies to engage in various kinds of business in Bolivia. However, the existence of the Government petroleum monopoly, Y P F B
(Yacimientos Petroliferos Fiscales Bolivianos) has effectively prevented the entry of foreign capital into the field of petroleum exploitation. Similarly, the match monopoly held by Compania de Fosforos
de Bolivia, a subsidiary of a Swedish company, has limited participation in that industry.
Ownership of land and water and power, mining, subsoil and air
rights involves no discrimination against foreigners as compared with
Bolivian citizens with one exception: Article 19 of the Political Constitution of the State of 1945 provides that "within 50 kilometers of
the national frontiers foreigners may not, directly or indirectly,
individually or in partnership, acquire or process any soil or subsoil
concessions or properties.'' Failure to comply with this limitation
may constitute sufficient grounds for the Government to confiscate
the concession or property acquired. However, exceptions may be
made in cases of national necessity so declared by law.
Taxation.—A distinction is made, in Bolivia between the taxation
of incomes of business organizations other than mining companies and
that on incomes of mining enterprises, with the result that the tax
burden on the large foreign-owned mining companies is greater, the
latter being subject to a graduated tax ranging from 4 percent on
profits of between 1 and 5 percent to 50 percent on profits of 150
percent plus a flat tax of 10 percent on dividends distributed, while
the former are taxed at a fixed rate of 12 percent of net profits. Interpretation and administration of the income tax with respect to the
large mining companies has been a source of dispute and litigation,
and a cause of confusion and concern among the large mining interests.
Although no exemptions from income or other internal taxes are
known to have been granted, exemptions from the, payment of import
duties have been provided through special contracts with the Bolivian
Government. Several large enterprises, among them Panagra, Urania
Tungsten Corp., and Ferrocarril de Antofagasta-Bolivia (the Britishowned railway system) are so favored. Subsidies are also granted to
air lines and other enterprises through the same type of arrangement.
Labor. —As indicated above, the genera] labor law provides that
foreigners may not constitute more than 15 percent of the number of
employees of an enterprise.
Foreign exchange controls.—In accordance with the exchange control
regulations the Central Bank of Bolivia assigns quotas of exchange to
the commercial banks of the country each month, and designates the
purposes for which such exchange may be sold. These purposes do not
include interest, profits, etc. However, it is reported that on occasions
special arrangements have been made with the central bank on a
case by case basis. Furthermore, capital entering the country under
.FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
95
contract with the Minister of Finance in accordance with a decree of
October 16, 1945, is guaranteed the right to withdraw profits not in
excess of 15 percent per annum of the amount invested, and to withdraw capital at the rate of 20 percent or 30 percent per year, depending
upon the type of investment. There is also an "extra-legal" exchange
market in Bolivia in which it is understood that some exchange may
be acquired for purposes other than those designated in the monthly
directives of the central bank to commercial banks regarding the sale
of exchange.
The above provisions do not in practice affect remittances of profits,
etc., by large mining enterprises, all of which are foreign-owned. This
is due to the fact that such enterprises are required to return to Bolivia
only specified portions of the foreign exchange proceeds of their exports.
The remainder may be retained abroad for use in the payment of
expenses, interest, * dividends and other items customarily payable
in foreign currency. Amounts not used for these legitimate purposes
are required to be returned to Bolivia.
In recent years the companies have been charged by members of the
Bolivian Congress with .failure to return to Bolivia the amounts of
exchange that should have been returned, and action to force such return
has been urged. On August 26, 1947, the Minister of Finance was
reported to have issued a resolution requiring the large mining interests
to submit within 30 days an accounting for about $237,000,000 in
foreign exchange they have been permitted to retain abroad since 1939.
Competition with Government-owned companies.—So far as is known
the Bolivian Government does not own any important business undertaking except Y P F B , mentioned above. That, however, is a monopoly.
Nationalization.—At
the end of 1936 the Bolivian Government
established Y P F B (Yacimientos Petroliferos Fiscales Bolivianos) as
the official agency of the Government in the petroleum field and
granted it a monopoly in the exploitation of petroleum and derivatives.
This was followed early in 1937 by the expropriation of the Standard
Oil Co. of Bolivia, a subsidiary of the Standard Oil Co. of New Jersey,
and since that time all Bolivian petroleum operations have been controlled by the Y P F B . Recently there have been indications t h a t the
Bolivian Government would permit foreign private capital to operate
petroleum concessions in Bolivia, but to date there are no foreign
companies in the field, although a contract with the Superior Oil Co.
of California for the development of petroleum reserves in the Bolivian
Chaco region is now under consideration by Bolivian authorities.
During 1947 the Bolivian Congress considered measures authorizing
the nationalization of the mining industry, largely foreign owned, and'
of the foreign owned railroads, without, however, reaching a decision
on these matters.
Brazil
Right to do business.—For general business operations, there are in
Brazil no restrictions with reference to the nationality of the owners
or partners of business firms or with reference to the nationality of
shareholders of Brazilian corporations. In the case of specific lines
of business, restrictions did exist, but certain of these were modified
by the new Brazilian constitution, which was promulgated in September 1946. The former constitution provided that authorization
to engage in mineral exploration and development could be granted
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FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
only to Brazilian citizens or to companies formed entirely of Brazilian
citizens, whereas the new constitution permits such authorization to
be granted to Brazilian citizens or to companies organized in Brazil.
The petroleum law and mining code are at present under revision in
order to give effect to this provision of the new constitution, and until
their completion it is not known under what terms foreign capital will
be permitted to engage in petroleum development or in new mining
enterprises. (Mining companies in which foreign capital participated
are permitted to operate if they were in operation prior to the adoption
of the 1934 constitution.) The provisions relating to water power
were similarly liberalized by the new constitution.
Other exceptions to the general rule that there exists no restriction
as to the nationality of owners or shareholders of a business relate to
aviation operating companies, shipping companies, journalistic and
radio-broadcasting enterprises, insurance companies, companies manufacturing pharmaceutical products, and companies owning property
located on the borders of the country. In each case special legislation
is applicable, affecting the proportion of stock which must be owned
by Brazilians, and other matters.
Taxation.—In general, juridical entities which are wholly or partially owned by foreigners are taxed at the same rate as their counterparts that are wholly Brazilian owned. However, the Brazilian
Treasury has ruled that in the case of a foreign corporation operating
with a branch in Brazil, the nonresident's 10 percent income tax is
payable on all profits shown by the annual balance sheet and profitand-ioss account of the branch, whether or not these profits are
remitted abroad to the head office; this is on the theory that the profits
belong to the foreign corporation even though it chooses to allow them
to remain in Brazil. The 10 percent tax is in addition to the 8 percent
income tax assessed against the branch as a juridical entity operating
in Brazil.
I n the case of individuals residing abroad who hold investments in
Brazil, any income accruing to them, regardless of its nature, arising
from Brazilian sources, is subject to deductions of income "tax at the
source at the rate of 10 percent. I t is difficult to compare this rate
with t h a t applicable to income accruing to resident Brazilians and to
other individuals residing in Brazil for more than 12 months. A proportional rate is assessed, according to the source of the income, on
annual incomes of over 24,000 cruzeiros (about $1,200), and in addition a tax at a progressive rate is assessed after deductions for family
maintenance, interest, accidental losses, contributions, etc.—the progressive rate varies from 1 percent on taxable income between 24,000
and 30,000 cruzeiros (about $1,200 to $1,500) to 30 percent on taxable
incomes of over 700,000 cruzeiros (about $35,000).
Labor.—Two-thirds
of all employees of commercial and industrial
firms must be Brazilian and two-thirds of the entire pay roll must be
paid to Brazilians. (The main establishment is considered as a unit
and branch offices as separate units.) Directors of sociedade anonima
companies, elected by the stockholders, are not considered to be employees for the purpose of this law. However, managers of companies
are considered to be employees, unless they are in the above category
or in cases where the manager is also a partner or shareholder and
the capital contributed by him exceeds 30,000 cruzeiros (about $1,500
United States currency).
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
97
If a Brazilian and a foreigner are performing similar duties, the
Brazilian cannot receive remuneration less than that given the foreigner. Government control is effected by requiring an annual report
of all employees indicating their positions or duties. Moreover, each
firm must maintain for inspection in its office a labor registry book
legalized by the Government.
The Brazilian Constitution in effect until September 1946, when
the present constitution was promulgated, restricted the practice of
the professions to Brazilian citizens. The new constitution provides
that the practice of any profession shall be free, in accordance with
such conditions of capacity as may be established by law. However, the regulatory laws have not yet been passed by the Brazilian
Congress.
Foreign exchange controls,—For several years the only control over
such remittances was approval of each transaction by the Bank of
Brazil, the granting of which depended upon the available supply of
exchange. At present the following additional conditions prevail:
(1) After providing for requirements of the Federal Government
exchange accruing to Brazil is sold in accordance with a priority
schedule consisting of five categories. Essential imports constitute
the first category in this schedule, and interest, profits, royalties, and
capital, the second category.
(2) The ^remittance of interest and profits in respect of any one
year is limited to an amount equal to 8 percent of the capital registered with the authorities, plus 20 percent of the total of interest and
currently declared profits in excess of 8 percent of registered capital.
The remaining 80 percent may- be remitted in four equal annual
installments. The reexport of registered capital is permitted in
five equal annual installments, subject to changes which changes in
the exchange market may necessitate. The regulations make no
provision for unregistered foreign capital b u t registration may be
effected at any time.
Competition with Government-owned companies.—The Brazilian Government has granted duty-free entry or tariff reductions for machinery,
apparatus, or supplies imported by specified industries which it desired
to foster. Such an exemption was granted to the National Steel Mill
(the Government owns the majority of the stock of this company) and
in September 1946 the exemption was extended to materials, including
railway and steamship equipment required for the company's coal
mines in Santa Catarina. This legislation also exempted the company
from the payment of consumption tax on its imports and from the
payment of customs and fiscal fines. I t is believed that this is the
first time that any organization in Brazil, whether or not owned or
controlled by the Government, has been granted a blanket exemption
from fines. Another decree law, also issued in September 1946, declared the National Steel Mill a public utility and exempted it from
taxation, including property and income taxes as well as taxes on
products and byproducts of its manufactures that it sells. The exemption from the consumption and income tax is to cease when the
company distributes a minimum annual dividend of 6 percent to the
holders of its common and preferred stock during three consecutive
years.
Nationalization.—There
is no nationalization movement in Brazil
at present in the sense of the Brazilian Government taking over complete operation of any of the economic activities of the country.
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FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
The Government operates certain of the railway systems of the
country (the management of all lines, based on mileage, is approximately as follows: Federal Government, 40 percent, state governments, 30 percent, private companies, 30 percent); Government participation in railway operations originally developed through force of
necessity, when concessionaires failed to raise the required capital,
and other railway systems later fell into the hands of the Government
as a result of financial difficulties of the operators. Government
participation in shipping developed along similar lines; the Government-owned Lloyd Brasileiro is by far the principal shipping company
of Brazil, and the Government also operates a shipping service in the
Amazon Valley.
The Government has, since the beginning of World War II, participated in the financing of enterprises for which Export-Import Bank
loans were obtained. These are the National Steel Mill at Volta
Redonda, the Cia Vale do Rio Doce and the Itabira iron ore development, the National Motor Factory, near Rio de Janeiro, and the new
caustic soda and soda ash plant to be constructed at Cabo Frio. In
addition, the Government has financially participated in the formation
of a company for water power development in the Sao Francisco Valley and a refinery in Bahia.
Regulatory agencies, commonly known as "defesa" institutes, have
been established to rationalize the production and improve the marketing of coffee, cacao, mate, sugar, tobacco, rice, and a number of
other products. The decrees governing these organizations ordinarily
extend to the industries something approaching a public utility type
of regulation, although they leave to the representatives of the industry themselves considerable latitude in the formulation of the controls
instituted. Governmental authority is employed to supervise, enforce, or veto the regulatory measures.
Chile
Right to do business.—There are no Chilean laws that restrict in
any way the nationality of owners of shares, or of partners or other
interest holders in business firms. However, firms domiciled outside
the country are barred from certain kinds of business activity,
including insurance; electric power production and distribution;
telegraphic, cable, and radio communication; and railway construction
and operation, but foreign-owned companies to engage in these businesses may organize under Chilean law.
Taxation.—While no distinction is made between foreign and
domestic firms in the so-called " basic'' Chilean income tax law, foreignowned companies operating in Chile are subject to an "additional"
assessment, which amounts to 13 percent of their incomes. Income
from mining operations, which are carried out principally by foreign
firms, are subject to special rates of taxation, substantially in excess of
the general income tax. For example, copper companies—overwhelmingly foreign-owned—pay taxes totalling 36 percent of their taxable
income, and, in addition, through the use of an artificial exchange
rate, pay what amounts to a disguised tax of about 37.5 percent of
their total cost of operations in Chile. The Chilean Government also
participates in the gross income of copper companies through a tax
based on the difference between 10 cents (United States) per pound and
the actual New York price of copper. The tax is applied as follows:
If the New York price exceeds 10 cents per pound by 1% cents or less,
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
99
the entire excess accrues to the Chilean Government; if by more t h a n
1% cents but by not more than 2% cents, all of this addition accrues to
the companies; and if in excess of 2}'2 cents the excess is divided equally
between the producers and the Chilean Government.
Labor regulation—-The Chilean Labor Code provides t h a t at least
85 percent of the employees of a private enterprise employing more
than 5 persons must be citizens of Chile, and t h a t at least 85 percent
of the pay roll must be paid to Chileans. The restriction does not
apply to technical experts who cannot be replaced by Chileans.
Foreign exchange controls.—Purchase of exchange at the rate genally applicable to commercial transactions (31 pesos per dollar for
several years) requires official authorization, the granting of which
depends upon the availability of exchange. The supply is currently
so limited that little if any is being sold for dividends, etc. However,
foreign-owned firms are not forbidden to buy exchange for these
purposes in the free market, where the rate is substantially higher than
in the official market. I t has recently been as high as 55 pesos per
dollar.
The foreign-owned mining companies that operate in Chile are not
affected by these restrictions since of the proceeds of their exports they
are required to sell in Chile only enough foreign currency to obtain
the pesos for meeting their necessary expenditures in Chile. The
rate at which they sell such exchange, however, is fixed at 19.37
pesos per dollar as compared with 31 pesos per dollar paid to other
exporters.
Competition with Government-owned companies .—The Chilean Government has been active in the development of industries, principally
through its agency, the Fomento Corporation. The fields in which
it has participated actively include mining, electric power and other
basic industries, as well as large-scale purchasing, notably agricultural
machinery. A large part of the Government's activity, however,
has been in the development of enterprises, which normally would
remain dormant for lack of private investment capital. The Chilean
Government likewise has established virtual monopolies over the sale
and export of nitrates, and over domestic petroleum production and
distribution.
Nationalization.—There
are several instances of nationalization in
Chile, the outstanding of which are the Government's acquisition of
the country's railroads and municipal acquisition of certain street
railway and electric power interests. While it is not improbable that
most, if not all of the public utilities will eventually be publicly owned,
there does not appear to be a trend toward nationalization of other
existing industries at the present time.
Colombia
Right to do business.— There are no restrictions regarding the
nationality of owners of shares or partners in Colombia except in the
case of airline companies. Partners or shareholders may all be
foreigners or Colombians without distinction or discrimination. I n
the case of airline companies Law 89 of 1938 requires that 51 percent
of the shares must belong to Colombian nationals or to entities controlled by Colombian nationals. Firms owned wholly (except air
lines) or partly by foreigners, irrespective of the country or organization, may engage in any kind of legal business as provided in the
contract or organization.
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FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
Taxation.—There is no discrimination between domestic and foreign capital in the tax structure of Colombia. However, certain payments under the country's social-security laws, which are applicable
alike to foreign and domestically owned businesses, are regarded as
onerous by business.
Labor.—Under various laws industrial, agricultural, commercial,
petroleum, or other enterprises, with a pay roll exceeding 1,000 pesos
per month are subjected to special requirements regarding the employment of aliens. Not more than 10 percent of the wage earners
engaged in continuous work for more than 3 months, nor more than
20 percent of the salaried employees may be aliens. Special requirements regarding the training of Colombians for technical work have
also been enacted.
Foreign exchange controls.—By the terms of article 3 of decree No.
568 of February 20, 1946, withdrawals of capital from Colombia
without limitation are approved in principle "as long as the Ministry
of the Treasury and Public Credit does not deem it necessary to limit
or suspend them for economic or other reasons * * *." To date
there have been no indications that the Ministry has taken steps to
prevent the unrestricted issue of exchange permits for this purpose.
Resolution No. 175 of the Office of Exchange, Import and Export
Control of August 20, 1947, regulating the importation of capital
pursuant to decree No. 568, provides that capital imported into Colombia may be reexported or the return on such capital remitted abroad,
provided certain conditions are met, the most important of which are
that capital funds be sold to the Bank of the Republic upon entry,
that the amount and form of the capital be registered with the Office
of Exchange, Import and Export Control, and that the investment be
made for a minimum of 5 years (petroleum and mining industries
excepted) in industrial, commercial or agricultural enterprises beneficial to the Colombian economy in the opinion of the Ministry of
National Economy. The return on the capital invested may be
transferred quarterly following the sixth month after the introduction
of the capital into the country. All such movements of capital, both
into and out of the country, require the approval of the Office of
Exchange, Import and Export Control.
Like other remittances abroad, remittances on account of capital
are subject to the Colombian stamp tax of 4 percent.
Under the Colombian system of exchange control export permits
must be obtained for practically all exports. Export permits are
issued upon condition that the foreign exchange proceeds of the sale
of the products abroad be sold to the Bank of the Republic. One
notable exception to this requirement is made in favor of the petroleum industry. Export permits are not required for exports of petroleum, nor must the foreign exchange value be returned to the Bank
of the Republic. However, when the Colombian balance of payments position requires it, the Government may require the return
of as much as one-fourth of the foreign exchange value of petroleum
exports. The return of such funds and any subsequent retransfer
abroad are free of all taxes. Furthermore, such foreign exchange as
is sold to the Bank of the Republic by the petroleum companies is
not subject to the requirement, imposed upon exporters of major
products such as coffee, bananas, gold, silver, platinum, cattle,
cowhides, and 'textiles, that 5 percent of the proceeds of export transactions be used to purchase Colombian Treasury bonds.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
101
Competition with Government-owned companies.—In addition to the
types of businesses mentioned under nationalization the Colombian
Government has monopolies in the production and sale of salt and
emeralds, and through its Institute of Industrial Development and
the Agricultural, Industrial, and Mining Bank has promoted the establishment and expansion of a number of business enterprises.
The competitive advantages of these officially sponsored businesses is
not readily apparent. However, exemption from certain taxes for
limited periods may give them some advantage.
In 1946 the Governments of Colombia, Venezuela, and Ecuador
established a shipping company, the Flota Mercante Grancolombiana,
South America. This company is exempt from the payment of Colombian port taxes, dues, and fees, and the National Coffee Federation, the coffee price and sales controlling agency, has stipulated t h a t
all coffee purchased from it must be carried in vessels of Grancolombiana.
Nationalization. —With the possible exception of the field of utilities
there is no trend toward the nationalization of private enterprises in
Colombia. All important railways of the country, the telephone,
radiotelephone and radiotelegraph systems and several important
electric power systems are publicly owned, having been acquired b y
negotiation or expropriation. With these exceptions public bodies
have not acquired any important business undertakings. Nor has
there been any recent legislation or discussion indicating a change
in the traditional policy of the country.
Costa Rica
Right to do business.—The Costa Rican law for the nationalization
of commerce, of December 28, 1943, forbids the establishment of new
commercial enterprises in Costa Rica which may be owned or managed
by other than Costa Rican citizens. An exception is provided in the
case of certain countries which have treaties of amity and commerce
in effect with Costa Rica. The United States is one such country,
as there has been such a treaty in effect since 1851, and United States
citizens are therefore perfectly free to establish commercial enterprises
in that country. I t should be noted that this law restricts the
establishment of commercial enterprises only, e. g. sales and distribution. No such restriction is placed on production enterprises, such as
agriculture, manufacturing, or food processing. Foreign-owned businesses (protected by treaties of amity and commerce), regardless of
whether they are domiciled in Costa Rica or abroad, may engage in
any business except the distilling of alcohol and liquors, the manufacture and importation of salt, and insurance underwriting, all of
which are state monopolies. For such businesses, there are no
regulations as to nationality of owners of shares. According to the
constitution, however, power, subsoil, and air rights, including wireless services, are the property of the state and may be exploited only
under concessions granted by the state for limited periods.
Taxation.—Taxation
of business in Costa Rica is low and applied
without discrimination to domestic and foreign enterprises.
Labor requirements.—The Costa Rican Labor Code of 1943 provides
that 90 percent of the total employees of a business enterprise must be
Costa Ricans, and that 85 percent of the entire pay roll must go to
nationals. A reduction of 10 percent in both these percentages may
be made for a period not to exceed 5 years, if a lack of technical
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FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
personnel exists. Administrators, supervisors, directors, and managers are not affected by these provisions, unless there are more than
two such persons employed in each enterprise.
Foreign exchange controls.—Remittances
for these purposes in
exchange acquired at the official rate (5.67 colones per dollar)
require authorization by the Board of Export Control. Due to severe
shortages, evidenced by delays of as much as 5 months in making
payment for essential imports, it is highly improbable that any
official exchange is sold for capital remittances. There is, however,
an uncontrolled market in which the rate is substantially higher
(6.50 colones per dollar) and in which it may be possible to obtain
exchange. Technically, transactions in any form of exchange except
foreign coins and bank notes without specific authorization is prohibited, b u t it is understood that some trading in drafts, checks,
etc., does take place outside the ordinary channels. Coins and
bank notes may not be exported.
Competition with Government-owned companies.—The Government
is prohibited by the constitution to grant any monopolies; the only
state monopolies, those of alcoholic liquor and salt, are chiefly for
revenue purposes. I n other lines, there appears to be no difficulty
in competition with Government-owned companies.
Nationalization.—There
is no noticeable trend toward nationalization in Costa Rica, except in the sense of limitation on the right of
foreigners to do business in that country as explained above.
Cuba
Right to do business.—According to title 17, section IV, article 272
of the Cuban Constitution of 194€, foreigners are granted the same
rights to engage in "agricultural, industrial, commercial, banjdng, and
other enterprises or business" as nationals of the country.
Taxation.—There is no distinction between foreigners and Cuban
nationals in matters concerning taxation. However, there is a tax of
2 percent on all payments, remittances of funds, transfers of credits,
valuables and products, and any other operations which directly or
indirectly result in an exportation of money or its equivalent from
Cuba. I n some kinds of transactions the tax is refunded if within
6 months of the export assets equivalent to those exported are returned
to Cuba. Since dividends, etc., paid to foreigners are generally not
returned to Cuba this in a sense could be regarded as discriminatory
against foreign capital.
Labor regulation.—The law for the nationalization of labor provides
that at least 50 percent of the pay roll must be paid to native Cubans
and at least 50 percent of the wage-earning and salaried personnel must
be native Cubans. Vacancies and positions created must be filled by
native Cubans if qualified personnel is available. In the release of
employees, aliens must be let out first. This law does not apply to
establishments employing less than three persons. Foreign technicians must be employed only when it is shown that a qualified Cuban is
not available. Technicians permitted to enter Cuba usually can
remain for no longer than 1 year and must train Cuban apprentices who
will replace them.
Foreign exchange controls.—The Cuban Government does not regulate transactions in foreign exchange for any purpose. There are
therefore no restrictions or formalities in connection with the transfer
of funds abroad on capital account.
FOREIGN ASSETS AND LIABILITIES OF THE UNITED STATES 1 0 3
Competition with Government-owned companies.—Since the Cuban
Government does not own companies instances of competition of the
Government with private enterprise are almost nonexistent.
Nationalization.—Cuba
has followed a policy of private ownership
and to date has not nationalized any industries. In a few instances as
a result of labor difficulties the Government has appointed a Government inter venor who exercises control of the industry or public
utility until such time as the labor questions are resolved. Such cases
are extremely rare, however, and usually concern public utilities in
which the interruption of services would result in extensive injury to
the general public. However, nationality of ownership of affected
interests has had no significance in past instances of intervention.
Dominican Republic
Right to do business.—The Dominican Republic confers upon
foreigners the freedom to engage in commerce, develop any kind of
industry, and the enjoyment of the same rights in such activities as
nationals.
Taxation.—No special taxes are imposed on the organization or
operation of foreign companies. The same equality of treatment
between domestic concerns and foreign enterprises applies to special
exemptions, subsidies, or concessions.
Labor regulations.—Law No. 51 of December 1938 requires t h a t at
least 70 percent of the personnel of all enterprises or establishments be
Dominican nationals, and that their remuneration must equal 70
• percent of the total pay roll.
Foreign exchange controls.—The^ Dominican Republic does not control or restrict in any way the transfer out of the country of interest,
profits, or capital.
Nationalization.—According
to article 96 of the Constitution,
mineral deposits belong to the state and may be exploited by private
individuals only under concessions or contracts granted in accordance
with provisions of law. Special laws' deal with exploitation of certain
minerals. The right to explore, exploit, manufacture, refine, and
transport petroleum carbons and other mineral fuel substances is
obtained through concessions granted by executive decree, which do
not confer ownership of a deposit, but only exploration and exploitation rights for a definite period and under conditions determined by
law. The Dominican Government, through the Department of
Public Works, owns and operates the only public railway in the
Republic.
Ecuador
Right to do business.—There are no restrictions, limitations, or
other special provisions in Ecuadoran law as to the nationality of
owners of business enterprises. Neither does the law provide for
distinction as to nationality in the granting of licenses to engage in
business. However, subsoil and such natural resources as waterfalls
in which there is a public interest are considered properties of the
state. Concessions to exploit these resources may be granted by
the President or the Legislature to foreign or domestic concerns.
In order to remit profits, interest, etc., out of the country in accordance with the foreign exchange regulations discussed below, foreign
capital must be registered with the Central Bank. This bank may
refuse such registration in case the investment is regarded as not in
the national interest.
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FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
Taxation.—There is no evidence of discrimination against foreignowned firms in Ecuador's income tax laws.
Labor regulations.—The Ecuadoran law of alienship requires that
80 percent of the employees of all establishments employing more
than five persons must be Ecuadorans.
Foreign exchange controls.—Under the exchange control regulations
the Central Bank is required to provide without limitation and at
the official rate (13.50 sucres per dollar) exchange necessary to meet
interest and amortization payments on loans contracted abroad, provided the respective foreign capital has been previously registered
with the bank. I t is also required to provide annually at the official
rate up to 15 percent of registered capital for the transfer of profits,
dividends, and amortization of investment. Larger percentages may
be fixed by the bank on a uniform basis for all capital. Amounts in
excess of these fixed percentages may, according to the regulations,
be obtained in the free market without restrictions. The free rate has
recently been stable at about 17.50 sucres per dollar.
Competition with Government-owned companies.—The Government
of Ecuador maintains monopolies over the distribution of alcohol,
tobacco, salt, and matches. The Government also has established
control over the production, importation, and distribution of sugar
and other essential foodstuffs, in an attempt to assure sufficient
domestic supplies at reasonable prices. I t is noteworthy in this
connection that Ecuador is a party to the Flota Mercante Grancolombiana shipping enterprise.
Nationalization.—The
Guayaquil and Quito Railway Co., operating the most important railroad in the country, was nationalized by
presidential decree in June 1944; however, this is the only important
instance of such action in recent years, and does not appear to indicate a positive trend toward nationalization.
El Salvador
Right to do business.—Foreigners who wish to' transact business in
El Salvador may do so, according to the Commercial Code of El
Salvador, even though their domicile, branch, or legal representative
is located outside the country. In other instances, where the company is located in the country or has a branch in the country, it is
subject to the same laws as Salvadorans. When companies organized
in foreign countries have their principal operations in El Salvador,
they are considered as Salvadoran companies and subject to laws
governing locally organized companies. Under the present Constitution of El Salvador (that of 1886 amended in 1945), foreigners may
acquire all kinds of properties which, however, shall be subject to the
same obligations as are established by laws concerning the properties
of Salvadorans.
Taxation.—Low taxation is imposed alike, without discrimination,
on foreigners and nationals.
Labor requirements.—The law for protection of commercial employees, M a y 31, 1927, provides that at least 80 percent of all employees in commercial establishments must be Salvadorans. Although
this requirement applies specifically to commercial employees, it has
also been applied to industrial employees. I n actual practice, it
affects only the upper strata of skilled workmen, technicians, specialists,
and administrators, many of whom might ordinarily be brought from
foreign countries.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
105
According to a new Labor Code, not yet acted upon by Congress,
only 10 percent of the unskilled workers and 30 percent of the technicians may be foreigners, and only 25 percent of the total pay roll
may go to these aliens. Persons in administrative positions, up to
the number of four, are exempt from the above limitations.
Foreign-exchange controls.—El Salvador exercises no control over
transactions in foreign exchange. Consequently there are no restrictions on the transfer of funds out of the country for any purpose.
Competition with Government-owned companies.—Government
monopoly in El Salvador is primarily for revenue purposes. The
Government has the exclusive monopoly of the manufacture, importation, and sale of rum. The Government also has a monopoly of the
importation of saltpeter and explosives, and cigarette paper can be
imported only by private individuals with the permission of the
Government. The motion-picture theaters in El Salvador are controlled by the National Theater Council, a Government monopoly.
Nationalization.—While
the Government of El Salvador has tended
to follow the traditional pattern of the Central American Republics
generally—that is, of being a free-enterprise nation—there has been
some indication recently in El Salvador of a trend toward nationalism,
though not necessarily nationalization, in the protection afforded
the match and motion-picture industries. Also, in some instances it
exerts effective direction over operations of organizations engaged in
international trading and affords some protection to industries.
Guatemala
Right to do business.—There are no_special provisions in Guatemalan
law as to the participation by foreigners in the capital or management
of business enterprises. Nor is there any limitation on the type of
business in which foreign domiciled or locally domiciled foreignowned firms may engage. However, no corporation may own any
land within 15 kilometers of the frontier, nor in the Department of
the Peten, nor within 1,500 meters of the Sarstun River. Ownership
of land along the shores of certain navigable lakes is also restricted,
but such lands may be leased from the Government for periods of
not more than 25 years.
Taxation.—Taxation
of business in Guatemala is low by United
States standards, and generally the same rates apply to native and
foreign enterprises. There is, however, an annual tax, in the nature of
a franchise tax, levied on all foreign business associations doing business in that country, amounting to about $300 annually. Furthermore, a tax of 1 percent of the par value is levied upon the transfer of
shares in foreign corporations doing business in Guatemala.
Labor regulations.—The Guatemalan Labor Code, which became
effective on May 1, 1947, provides that " employers are prohibited
from employing less than 90 percent of Guatemalan workers and of
paying them less than 85 percent of the total salaries paid out in their
enterprises." These percentages may be decreased by as much as
10 percent under specified conditions. The provisions are not
applicable to managers, directors, administrators, superintendents,
and general chiefs of enterprises, as long as the total does not exceed
two in each enterprise.
Foreign exchange controls.—Guatemala does not control transactions
in foreign exchange, and there are no restrictions on the transfer of
funds out of the country for any purpose.
69140—48
8
106
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
Competition with Government-owned companies.—Monopolies
of all
kinds are specifically prohibited by article 20 of the Guatemalan
Constitution. The Guatemalan Government, however, reserves to
itself the right to import cigarette paper, arms, and munitions of war,
including gunpowder, saltpeter, cartridges, and ammunition. In
other lines, there appears to be no difficulty in competition with
Government-owned companies.
Nationalization.—There
has been a definite nationalistic emphasis
in Guatemala during the last 2 years, although not in the sense of
governmental expropriation of private enterprise. One instance of
this emphasis was a proposed law (November 1946), which would
require all foreign firms to be represented in Guatemala by persons
domiciled in the country. This project is in line with the provisions
of a number of laws which require resident representatives in specific
business enterprises, subjection to Guatemalan courts in disputes,
and the renunciation of diplomatic recourse. Another proposal,
made in November 1946, also aimed at restricting the activities of
foreign interests, was the proposed capital investment law, which
provided for the reinvestment by foreign firms of 40 percent of their
annual profits, when they have operated in the country for as long as
15 years. Guatemalan firms were required to reinvest 60 percent of
their annual net profits.
Haiti
Right to do business.—Retail trading is barred to foreigners, the
new constitution providing that only Haitians of origin can "practice
retail commerce, direct the works of small industries, and devote
themselves to all other commercial and professional activities as the
law shall determine." A resident foreigner may own but one residential building in the same locale and may not engage in the rental of
property.
Taxation.—Taxation
in Haiti is discriminatory in that the foreigner
pays twice the rate applicable to a Haitian for a national and local
license, in order to engage in either industry or commerce. Also,
exports of certain industries, e. g., sugar and bananas, which are
foreign-owned are taxed heavily. There is no discrimination against
foreign capital in the existing tax on profits.
Labor regulations.—There is no law restricting or prohibiting the
employment of foreigners. Although there is no law requiring that
a given percentage of the labor employed be of Haitian nationality,
in practice, concession contracts generally fix a percentage of Haitians
to be employed in such individual enterprises.
Foreign exchange controls.—The Haitian Government does not control or restrict in any way transactions in foreign exchange. Therefore, interest, profits and capital may be transferred out of the country
without Government interference.
Nationalization.—There
is no nationalization of industries in Haiti
in the true sense of the word.
Under the new political regime, however, there has been an apparent
tendency toward nationalization in the form of legislation vesting
more and more control in the state over local industries. The slogan
"Haiti for the Haitians" has a wide popular appeal, but it has not
been implemented by expropriating or otherwise molesting foreignowned property.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
107
Honduras
Right to do business.—Both foreign and domestic companies, in
order to transact business in Honduras must have the Executive's
approval. They must submit annual reports of their operations to
the Honduran Minister of Finance, must have two-thirds paid-in
working capital, and, if their working capital is over $7,500, they
must have their books kept by native-born Hondurans. Foreign
companies, legally established abroad, in order to carry on a business
in Honduras/must maintain a representative in Honduras with general
power of attorney and must submit proof of the company's volume
of business, specifying real estate, cash, Honduran and foreign stockholders, and the quantity, nature and volume of the company's
business.
Taxation.—Taxation
of business in Honduras is very low and applied without discrimination to domestic as well as foreign enterprises.
Labor regulations.—There appear to be no legislative or administrative restrictions in Honduras applying to the employment of aliens.
A bill for the enactment of a labor law, pending in the Congress since
1933 but not yet passed, contains no provisions regarding the percentage of foreigners who may be employed by business firms. The
Embassy ascertained from the Ministry of Interior in December 1943
that development contracts and concessions usually contain a provision
that a certain percentage of the employees must be Hondurans, and
that when a factory is involved, some provision is made for training
apprentices.
Foreign exchange controls.—Authorization
to transfer funds out of
the country is required, but in view of the ample supply of exchange,
obtaining this authorization has been little more than a formality.
The principal American-owned companies have not been hampered
in their transfers of profits, etc., since under the regulations they
return to Honduras only a part of the foreign currency value of their
exports.
Competition with Government-owned companies.—It does not appear
that Government-owned companies in Honduras offer serious competition to foreign investors, since the only Government monopoly in the
country is the manufacture of alcohol and aguardiente (popular drink
of the people) and this is for the specific purpose of raising Government
revenue. Also, the Honduran Government reserves to itself the exclusive right to import arms and ammunition.
Mexico
Right io do business.— The participation of foreigners in most
types of Mexican enterprises requires that the permission of the
Ministry of Foreign Relations be obtained. Such permission may
be, but is not required to be conditioned on the requirement that
51 percent of the capital stock of the enterprise be owned by nationals
and that the majority of directors or partners be Mexican. There
appears to have been no definite pattern as regards insistence by the
Government on the 51 percent participation by nationals, each case
apparently being judged on its own merits. Purely commercial
activities do not fall within the compass of this requirement, and
foreign commercial firms may engage in all types of enterprises
except those which relate to public services rendered by the Government, such as domestic telegraph. Furthermore, foreigners wishing
108
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
to acquire ownership of lands, waters, and their appurtenances or to
obtain concessions for working mines or for the utilization of waters
or mineral fuel must agree to consider themselves as Mexicans in
respect to such property and bind themselves not to invoke the protection of their governments in matters relating thereto. The Mexican
law covering immigration specifies that immigrant investors must
prove t h a t they possess a minimum capital of 100,000 pesos (about
$20,000) to establish a business in the Federal District (including
Mexico City); 20,000 pesos (about $4,000) in one of the State capitals;
and 5,000 pesos (about $1,000) elsewhere.
Taxation.—Taxation,
except of mining activity, is very light in
Mexico when judged by United States standards, and there is no
evidence of taxation discriminatory against foreign capital. The
same tax rates apply regardless of nationality. Heavy taxation of
the mining industry, which happens to be largely foreign-owned,
is now reportedly a matter of study by the Mexican Government
since minerals constitute a significant portion of Mexico's exports,
which the Government realizes must be increased to improve the
country's international balance of payments. Foreign capital invested in new manufacturing industries seems to enjoy the same
liberal tax-exemption privileges accorded by the Government to any
capital invested in such enterprises.
Labor regulations.—In most cases at least 90 percent of employees
must be Mexicans, but this restriction does not apply to managers,
directors, administrators, superintendents, or the general heads of
concerns. Employers must, in general, give preference to Mexicans
over aliens.
Foreign exchange controls.—Mexico" does not control or restrict in
any way the transfer of funds out of the country for any purpose.
Competition with Government-owned companies.—Because
of the
solidly entrenched tradition of Government intervention in economic
life in Mexico there always exists the threat of private capital's
incurring competition from Government-owned companies. In certain fields, such as petroleum, the Government exercises a monopoly
and competition by private firms is an impossibility. But even in
this politically controversial field, economic considerations seem to
be initiating a trend toward renewed limited participation by technically superior private interests, as evidenced by recent moves to
award contracts for exploration and development to private United
States firms. In most other fields, Government participation appears
to be limited to lending assistance to new private enterprises that
might otherwise not be initiated, and competition with Governmentowned companies does not seem to be a matter of concern at present.
Nationalization.—Nationalization,
both in the sense of State ownership or control of economic enterprises and in that of State intervention in or regulation of enterprises privately owned or controlled, has
long been a characteristic feature of the Mexican economy. I t was
intensified during the regime of President Cardenas in the period
1934-40. Expropriation and direct State control, in fields such as
petroleum and the railways, have been politico-social in motivation
while intervention, as through cooperative organizations and Government participation in certain new industries, has had as its purpose
the improvement of economic conditions. Since 1940 there has been
less emphasis on nationalization for political reasons although there
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
109
has been no slackening of intervention and regulation for economic
reasons. Judging from postwar United States private interest in
Mexico as a market for investment, particularly in manufacturing,
numerous well-known United States firms are apparently convinced
that the expropriatory nationalization activities of the Cardenas
period are not a matter of concern in the present or foreseeable future.
The attitude of the present regime, as indicated both in official pronouncements and in concrete acts, seems to be very friendly toward
the investment of foreign capital that will participate in its program
of industrialization and economic improvement, although it quite
definitely reserves the right to regulate such investments.
Nicaragua
Right to do business.—No legal distinction is based on the nationality
of owners of shares or of partners or other owners of business concerns
in Nicaragua. Foreign-owned firms, irrespective of their domicile,
may engage in any business in which locally owned concerns may
engage.
Taxation.—Low taxation is assessed without discrimination on
domestic and foreign enterprises alike.
Labor requirements.—A law of February 6, 1941, which applies both
to individuals and companies, provides that every enterprise and commercial house, whether domestic or foreign, must engage as employees
and laborers, not less than 75 percent Nicaraguans. This apparently
does not apply to directors and officers of enterprises.
Foreign exchange controls.—All transactions in foreign exchange,
except the purchase and sale of foreign paper money and coins, must
be approved by exchange control authorities. Withdrawals of capital
must in addition be approved by the President of the Republic.
Competition with Government-owned companies.—The
monopoly
manufacture of cigarette paper is exercised by the Nicaraguan Government, as is the importation of the following articles: cigarette paper,
tobacco (leaf or manufactured); matches (wax or wooden); electric
cigarette lighters; aguardiente (rum); certain firearms and explosives;
lead (crude and manufactured); and certain medicaments. I n other
lines, there appear to be no difficulties stemming from competition
with Government-owned companies.
Panama
Right to do business.—In general no limitation on the right to engage
in business is based on nationality except as to retail trade and possibly
as to wholesale trade.
Article 234 of the Constitution adopted in 1946, limits the right to
engage in retail commerce to Panamanian citizens, except that foreigners who were engaged in retail merchandising in the Republic at the
time the new Constitution was enacted may continue to do so. Article
234 also states that retail commerce may be engaged in by nationals
of those nations which maintain, on the Isthmus of Panama, enterprises or organizations in which Panamanian citizens find facilities for
employment, provided such nationals are legally residing in territory
under the jurisdiction of the Republic. This gives United States
citizens the right to engage in retail trade in the Republic of Panama.
Wholesale commerce may be carried on by any individual or concern, although the law may, when it is deemed necessary to protect
wholesale commerce of Panamanians, restrict the exercise of such
110
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
commerce by foreigners. I n no case will such restrictions injure
foreigners who, at the time the regulations enter into effect, are
engaged legally in wholesale commerce; nor will such restrictions
apply to citizens of nations which maintain on the Isthmus of Panama
enterprises or organizations in which Panamanian citizens find
facilities for employment.
On the other hand, the Government has granted concessions to
various firms, domestic and foreign, under which the concessionaires
are granted tax exemptions or other valuable consideration.
Taxation.—The tax laws of Panama do not discriminate against
foreign capital. Moreoever, there is a double-taxation treaty between Panama and the United States under which reciprocal exemption from double taxation on the profits of shipping companies is
granted.
Labor regulations.—Panama
labor law requires that 75 percent of
the pay roll of any industry or firm must be paid to Panamanians. An
exemption may be granted in the case of technicians.
Foreign exchange controls.—Panama does not control or restrict in
any way the remittance abroad of funds for any purpose.
Competition with Government-owned companies.—Through its Banco
Agropecuario (Agricultural and Livestock Bank) the Government has
competed with private enterprise in the importation of agricultural
and livestock equipment, supplies, and products. The Government
has also assisted in financing construction of hotels and low-cost
housing projects.
Nationalization.—There
have been no instances of nationalization
of private industries by the Government of Panama. However,
article 218 of the constitution of 1946 makes provision for such
nationalization.
Official monopolies over i m p o r t e d articles or those not produced in t h e countrym a y be established by t h e law as financial revenue. On establishing a monopoly
b y virtue of which a n y person is deprived of t h e exercise of a legitimate business
or i n d u s t r y , t h e S t a t e will previously compensate. those persons or enterprises
whose business has been expropriated in t h e t e r m s referred t o in this article.
Paraguay
Right to do business.—The basis of Paraguayan commercial law is
the commercial code adopted by Argentina in 1889. Although subsequent amendments provided for specific changes, it is understood
t h a t there are few basic differences between Paraguayan and Argentine law on the establishment and control of ordinary commercial and
industrial organizations. Foreign enterprises are subject to the same
restrictions and requirements that apply to strictly domestic companies. There appears to be little or no evidence of discrimination
between national and foreign capital.
Taxation.—There appears to be no discrimination in taxation levied
on domestic and foreign concerns.
Labor regulations.—It is required by law that 90 percent of labor
personnel and 95 percent of the other employees of any industrial
commercial business be of Paraguayan nationality. Where the employment is not more than four persons there is exemption from this
provision. I n determining the proportion of nationals to be employed, all specialist technical personnel are excluded except when
they can be replaced by Paraguayans capable of performing the same
duties.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
H I
Foreign-exchange controls.—Under decree law No. 10043 of August
29, 1945, the basic Paraguayan exchange-control law, the importation
of foreign capital is encouraged through the establisnment of a register
of foreign capital, uncer the supervision of the Bank of Paraguay, in
which investors may elect to register, thereby obtaining the right to
purchase stipulated amounts of official exchange to cover subsequent
dividend, profit, and amortization payments. Application for such
registration is approved by the bank, provided the investment meets
certain requirements, the most important of which are that it contribute to the social and economic development of the country and
that it does not exercise an unduly inflationary effect on the Paraguayan economy.
Registered capital entering Paraguay is converted into guaranties
at the official exchange rate, whereas unregistered capital may enter
at the higher free-market rate. However, investors who elect not to
register with the Bank of Paraguay have no assurance t h a t official
exchange will be made available to them for the purpose of remitting
dividends, interest, and profits abroad or for withdrawing their funds
from the country, and must be prepared to effect all such remittances
at the less advantageous free-market rate, should the state of the
exchange market require it. Capital invested in Paraguay prior to
the effective date of decree law No. 10043 may also qualify for registration by meeting requirements similar to those prescribed for new
capital.
I t is understood that at the present time the foreign-exchange
situation in Paraguay is such that official exchange is being allocated
only for remittances on account of registered capital.
Competition with Government-owned companies.—The Government
of Paraguay participates in the shipping: trade through its Flota
Mercante del Estado, but this agency transports only a small portion
of the country's water borne international traffic. The Paraguay
Central Railway (principal line serving the country) is privately
owned. However, the Government owns and operates a very small
line, the Concepcion-Horqueta Railway.
A monopoly over the supply and distribution of meat within Paraguay is exercised by the Corporacion Paraguay de Carnes, a corporation owned jointly by the Government and private capital. The
Alcohol Corporation, composed of all alcohol producers, is Governmentcontrolled. The sugar industry also is Government-controlled.
The National Administration for Public Enterprises, a new Government organization, was authorized by a decree of August 30, 1947,
to engage in the following activities: quarrying, cattle raising, manufacturing of wood pulp, paper, cement, and other products and may
assume a monopoly for the domestic distribution of petroleum products. I t is too early to determine the extent to which these functions
will be implemented.
During the war the National Subsistence Administration was
established in order to control imports of essential commodities for
allocation among importers. I t continues to function and imports
on its own account, for resale, certain bulk-purchased commodities
such as wheat, salt, cement, caustic soda, etc. Private firms are
represented on its governing board.
Nationalization.—Commercial
telephone, telegraph, and telecommunication services, also domestic air transport, are exclusive Government enterprises in Paraguay.
112
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
Peru
Right to do business.—Under the terms of the Peruvian Code of
Commerce foreign. nationals as well as companies organized abroad
may engage in business in Peru. The national constitution guarantees
freedom of work not inimical to morals, health, and public security.
The nationality of shareholders is unrestricted, except in the case
of insurance companies and oil companies. A majority of the shares
of insurance firms must be owned by Peruvian nationals, and oil
companies are obliged to place at least 25 percent of their capital
stock with the state or with Peruvian investors. Otherwise, there is
no restriction on the nationality of company owners nor as to the
type of business in which foreign firms may engage.
Taxation.—There is no evidence of serious discrimination against
foreign-owned companies under Peru's income-tax laws. The only
instance in which income earned by foreign nationals or firms is taxed
at a different rate from that of domestic organizations is in the case
of complementary income tax. Under this tax, dividends on registered snares held by residents abroad, net profits obtained by foreign
firms, interest paid by affiliate companies to main offices abroad, and
Certain other income received by residents abroad are subject to a
fixed rate of 12 percent. The tax on similar income of Peruvian
residents ranges from 2 percent on 10,000 soles to 30 percent on
income exceeding 100,000 soles.
Labor regulations.—-Under Peruvian labor law, not less than 80
percent of all persons employed by an enterprise must be Peruvian
nationals, and 80 percent of the pay roll must be paid to Peruvian
citizens.
Foreign exchange controls.—All sales of exchange at the "official"
rate of 6.50 soles per dollar require approval of the exchange and
import control authorities. I n addition there is a free market in
which transactions are not controlled and in which the rates fluctuate
widely, ranging in recent months from 9 to 18 soles per dollar. Since
the foreign-owned mining and petroleum companies are principal
suppliers of exchange in Peru, it is understood that they obtain exchange for all their legitimate requirements, including the importation of supplies, and the payment of interest, dividends and salaries,
at the rate at which they deliver their export proceeds to the authorities, viz, 6.50 soles per dollar. In view of the current serious shortage of exchange, however, it is unlikely that other foreign interests
can obtain exchange for dividends at the official rate, although the
authorities are empowered to authorize sales at that rate.
• Competition with Government-owned companies.—The
Peruvian
Government maintains monopolies in the distribution of salt, matches,
industrial alcohol, tobacco and tobacco products, guano, playing
cards, and explosives, and engages in the direct manufacture of salt,
tobacco products, denatured alcohol, and the extraction of guano.
' T h e Government likewise participates directly in the production and
distribution of petroleum products, but not on a monopolistic basis.
Various other enterprises in which the Peruvian Government has been
active include coal mining, large-scale construction projects, hydroelectric development, and distribution of basic foodstuffs.
Nationalization.—No
nationalistic trends which would operate
severely against existing foreign-owned enterprises have been noted.
In opposition to this has been the need, generally recognized by the
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
113
present administration, for foreign capital investment in Peru.
However, discussions of present pending petroleum legislation have
indicated the existence of strong sentiment for the reservation of
decided advantages for the state or domestically owned companies
in the exploitation of Peru's petroleum resources.
Uruguay
Right to do business.—Foreigners may operate freely, with the same
rights and privileges as Uruguayan citizens in the engagement in
business in that country. The participation of foreign capital which
may be invested in such private commercial or industrial enterprises
is not limited b a t is, of course, subject to the provisions regulating the
entry of capital into that country,
Special laws apply to the establishment of banks, insurance companies, public utilities, and certain other enterprises referred to under,
"competition with government-owned companies."
Taxation.—Taxation on industry and commerce does not distinguish
between nationals and foreigners. The only exception is in the case
of the real-estate tax, in which there is a surcharge for absenteeism
when property owners reside abroad or are Uruguayans remaining
outside the country for more than 6 months. The tax on absenteeism
affects individuals and business organizations domiciled outside the
country.
Labor regulations.—Ordinary
commerce and industry .are not required to employ a fixed percentage of workmen who are Uruguayan
nationals. However, organizations which will require a large personnel are sometimes required under a special clause in their charter
to engage a certain percentage of Uruguayans. This percentage may
vary from 60 to 90. In the case of public works, regalations specify
a minimum of Uruguayans who must be employed.
Foreign exchange controls.—While-such remittances from Uruguay
do not require specific authorization in each instance, as in some other
countries, general supervision is exercised by the exchange control
authorities through requiring all nontrade remittances to be effected
through the free market, regulating the supply of exchange available
in the free market, regulating free-market rates, and the requirement
that all free-market transactions shall be reported.
Competition with Government-owned companies.—The National Administration of Fuels, Alcohol, and Cement (ANCAP) has a monopoly
on the refining of petroleum products; distribution is shared with private companies, with ANCAP retaining about one-half oi this business. The organization also maintains a monopoly of alcohol distillation, and is the exclusive supplier of cement for public works.
The Frigorifico Nacional, Government meat-packing establishment,
has a monopoly on meat packing for distribution in Montevideo.
Private companies engage in meat packing for export.
Canoprole, the National Cooperative of Milk Producers, is owned
jointly by Government and private capital. I t exercises a monopoly
of milk processing and distribution in Montevideo, and for export.
Sulfuric acid and phosphates are produced by Government-owned
plants.
The National Government of Uruguay participates in banking
activities and also through its Banco de Seguros conducts an insurance
business. Only the private companies now in business are permitted
to operate in this field.
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FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
Mining activities are restricted to Uruguayan citizens.
The municipality of Montevideo operates two hotels, two gambling
casinos, arid a cabaret.
Nationalization.— The National Government of Uruguay owns and
operates all of the country's commercial telegraph services, the principal telephone system, one-fifth ol the railway mileage, port ot Montevideo facilities, and most of the country's water-supply systems,
including Montevideo. The National Government also owns and
operates electric power plants and contemplates a completely
iutegrated Government-operated system when additional facilities
are completed.
Venezuela
Right to do business.—Foreign companies may carry on business,
take part in, litigation, establish agencies or branches, exploit natural
resources, or introduce any industry in Venezuela (except water power,
timber, aviation, and subsoil rights which are permissible only under
concessions from the Government), provided they comply with the
formalities of Venezuelan law. In these respects no distinction is
made between foreign and Venezuelan companies. Foreigners have
the same civil rights as Venezuelans, except political rights, which
accrue only to Venezuelan citizens.
Taxation.—There is some distinction in current Venezuelan incometax laws between income of residents and that of nonresidents derived
from wages, salaries, pensions, and other emoluments. The rate is 1
percent in the case of residents and 3 percent for nonresidents. The
surtax on income in excess of 9,000 bolivares, which ranges up to 26
percent on incomes exceeding 28,000,000 bolivares, while not directly
discriminating against foreign-owned firms, nevertheless imposes a
heavy burden on foreign petroleum companies operating in Venezuela,
in view of their relatively large incomes in comparison with domestic
companies. Moreover, the rates applicable to the exchange sold
in Venezuela by the oil companies and by other exporters, 3.09 and
3.32 bolivares per dollar, respectively, are in effect a tax paid by the
oil companies that is not paid by the exporters of products other than
petroleum.
Labor regulations.—According to the 1936 labor law, at least 75
percent of salaried employees and laborers must be Venezuelan,
except where, for technical reasons, a temporary reduction of this
percentage is permitted.
Foreign exchange controls.—Exchange for these purposes may be
obtained in and remitted from Venezuela without official intervention
of any kind.
Competition with Government-owned companies.—Through its various
dependencies, the Government of Venezuela has participated in an
increasing number of economic activities, including air transport,
shipping, and the distribution of essential foodstuffs. Notable is
the control recently established over sugar. The Government maintains a direct monopoly on matches.
Nationalization.—While
continuing efforts are made to secure all
possible advantage for the State, notably from the exploitation of
Venezuela's natural resources, it is not believed that there exists at
present a marked general trend toward actual nationalization.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
115
FAR EAST
Republic of China
Treaties.—The present legal position of American commercial
interests in China stems out of the treaty between the United States
and China for the relinquishment of extraterritorial rights in China
and the regulation of related matters, which treaty was signed on
January 11, 1943, and became effective on M a y 20, 1943. By the
provisions of this treaty, the jurisdiction of the United States over its
own nationals in China is disavowed, and such nationals made subject
to the jurisdiction of the Chinese Government in accordance with
the principles of international law and pra3tice. The treaty further
provides for the indefeasibility of existing rights or titles of Americans
to real property in China, for the rights of American citizens to travel,
reside, and carry on trade throughout China, and for national treatment by both countries with respect to all legal proceedings, matters
relating to the administration of justice, and taxation.
I t is, moreover, provided in the above treaty that the two nations will
enter negotiations for the conclusion of a comprehensive modern
treaty of friendship, commerce, navigation, and consular .rights.
Finally, it is stipulated that pending the conclusion of said comprehensive treaty, if any questions aflPecting the rights in China of
nationals (including corporations or associations) or of the Government
of the United States should arise in the future and are not covered
by the treaty of relinquishment or by provisions of existing treaties,
conventions, or agreements between the two nations, and are not
abrogated by or inconsistent with this treaty, such questions shall be
discussed by representatives of the t w o governments and decided in
accordance with generally accepted principles of international law
and with modern international practice.
Upon this background, and after negotiations lasting many months,
there was signed on November 4, 1§46, a treaty of friendship, commerce, and navigation.
Although not yet ratified by the Senate, this treaty, representing the
results of discussions of representatives of both nations, may conceivably be considered binding pro tempore within the meaning of the
treaty of relinquishment, and in fact has been used as a framework of
reference for representations regarding alleged discriminations against
Americans. Although technically still operative in part, the treaty
as to commercial relations of October 8, 1903, which was the last
previous treaty on this subject between the nations, is in practice
obsolete.
The unratified 1946 treaty deals with a large number of subjects:
The right to travel; reside; carry on trade; acquire, hold, and dispose
of real and personal property; matters of taxation; customs; import,
export, and trade regulations; monopolistic practices; remittances of
funds and foreign exchange; navigation rights; arbitration; and protection of industrial and intellectual property. Most-favored nation,
national treatment, and reciprocal treatment are variously applied.
Chinese Government policy.—The Chinese Government's industrial
and financial policies with respect to foreign investments in China
were most recently stated on August 13, 1947, in a press release of
the Government Information Office, and can be summed up as follows:
With the exception of arsenals, • mints, main railway lines, and large-
116
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
scale hydroelectric power plants, which are to be State-operated, and
other industries which, according to the provisions of Chinese laws
(discussed specifically below), are specifically reserved for Chinese
nationals or corporations, the remaining industries are open to direct
investment of foreign capital. The investment of such capital is
particularly invited in the manufacture of motive-power machinery,
tool-making machines, automobiles, locomotives, aircraft, and large
steamships.
The mining of iron, petroleum, copper, and high-quality coal suitable for metallurgical or refining purposes is reserved for the Government, b u t may be leased by the Government to others to be prospected and exploited, provided the lessees are citizens of the Republic
of China. In addition, it is provided in the mining enterprise statute
that special lots of other minerals may be determined by the Ministry
of Economic Affairs to require conservation and set aside as Government-reserved lots where no prospecting or exploitation shall be
allowed. Both domestic and foreign capital may be invited to participate in Government-operated mines under a corporate organization, the Government to take part in the business and personnel
management of such companies in the role of stockholder, while at
the same time exercising such administrative supervision as is prescribed by law.
Registration and authorized scope of commercial activity.—The Chinese company law of 1946 provides^for the admission of foreign companies to do business where reciprocal rights are extended to Chinese
companies. Such foreign companies must secure authorization to do
business in China, based on the submission of various documents
including copies of articles of incorporation, statements as to capitalization, officers, directorate, and anticipated scope of business in
China.
If a foreign company desires to engage in those types of business
which require the special permission of the Chinese Government—
such as, for example, banking and insurance—such business can be
undertaken only after the special permission has been received. In
the ease of foreign banks a license to engage in the banking business
must first be secured from the Ministry of Finance, and then, additionally, the foreign banking company must register under the provisions of the revised company law.
A foreign company is not entitled to a certificate of authority to
do business in China if the purpose or business is repugnant to the
law, to public order, or the "decent customs'' of the Republic of
China; if "the place of the branch office" is not open to residence by
aliens or its business "is not open to aliens"; if it misrepresents any
particular in its application for admission; or "if its purpose is to escape
the law of the country it belongs in, or to make use of the laws of a
third country in order to obtain juristic personality and admission
into China with the view of enjoying the rights and privileges of a
citizen of a third country."
A foreign company may purchase and hold such land as is necessary for the transaction of its business if it has secured the prior
approval of the central competent authority, and if "its own country"
grants the same rights and privileges to Chinese companies. I t
would appear in the case of the United States that the expression
"its own country" means the laws of the particular State under which
the company is incorporated.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
117
A foreign company is not allowed to be a shareholder of unlimited
liability in another company, nor a partner in a partnership business.
I t may become a shareholder of limited liability in other companies,
but in such cases the total amount of such investments cannot exceed
one-half the amount of its own paid-in capital. B u t it is not so
limited if its "exclusive" business is to invest in other companies,
nor does the limitation apply to investments in "productive" enterprises.
The degree of participation allowed foreign investors in Chinese
companies created under the company law varies according to the
type of company created. Thus noncorporate foreign investors may
participate in Chinese unlimited companies, which consist of two or
more members of unlimited liability. They may also participate in
unlimited companies with limited-liability shareholders. I n both the
above cases half the total number of shareholders must be domiciled
in China.
Chinese limited companies consist of 2 to 10 shareholders, half of
whom must be domiciled in China, and whose liability is limited to
the amount of subscription. However, the chairman of the board
of directors must be a Chinese citizen and resident, while the remaining managing directors must be residents.
In a company limited by shares, which consists of five or more
shareholders, whose liability is limited to the amount of subscription
(somewhat simliar to an American corporation), more than half the
stockholders, half the directors, all the managing directors, and the
chairman of the board of directors must be residents, and the chairman of the board must also be a Chinese citizen. The same restrictions are applied to a company limited by shares with stockholders of
unlimited liability.
The Chinese banking law was made effective on September 1, 1947,
and permits foreign banks the same scope of operations as native
banks, except that the former are prohibited from conducting business
as savings banks or trust companies. However, since none of the
foreign banks in the past engaged in the trust business, and inasmuch
as they are not interested in savings accounts because of the vast reserves required to be maintained, these prohibitions are deemed to
have little import.
This statute further provides that the Government may, in accordance with the requirements of international trade and productive
enterprise, designate. regions in which foreign banks may establish
branches.
Although it is too early to report the actual operation of this law,
it is understood that foreign banks are satisfied that the law itself is
reasonable and workable, and that the provisions governing the operation of foreign banks are fair and nondiscriminatory.
Laws affecting operations and administration thereof.—Following the
relinquishment of extraterritorial rights in 1943, foreign commercial
interests in China at the close of the Far Eastern war in 1945 were for
the first time exposed to the direct operation of Chinese laws, particularly in the field of taxation, banking, foreign exchange, snipping,
mining, and trade controls.
In the field of taxation, the Chinese Government has sought greatly
to increase its revenues by the enactment of a series of statutes designed to tap every possible source, and applicable, theoretically at
least, with equal effect to both Chinese and foreigners. Included are
118
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
a business tax, stamp tax, land tax, commodity tax, income tax, and
excess-profits tax.
Much of the burden of these taxes has been passed off to the ultimate consumer in the form of higher prices, and there have been no
complaints of discrimination against foreigners save in the interpretation and application of the income-tax law. Arbitrarily, companies
whose head offices are outside China (all foreign corporations) are
placed into a different category from companies whose head offices are
in China (practically all Chinese companies). 'By this categorization
the rate of tax on Chinese companies is determined by the ratio of
income to capital, while the rate of tax on foreign companies is based
solely on the amount of income. The net result is that Chinese companies are permitted to readjust their capitalization in accordance
with changing economic conditions, thus falling into lower tax brackets, while foreign corporations can do nothing, in the face of the same
changing economic conditions, including the very rapid depreciation
of the Chinese dollar, to avoid being taxed in the hitherto inflexible
higher brackets.
According to the Chinese Government's August 13, 1947, statement
on industrial and financial policies with respect to foreign investments
in China, foreign businessmen operating within Chinese territory shall
pay the same taxes under Chinese tax laws or ordinances as Chinese
nationals. The results of recent representations by the United States
and other foreign governments with respect to the discriminatory
nature of this law are presently being awaited.
Foreign-exchange controls.—Because
of the highly inflationary
nature of the Chinese economy and a rapidly deteriorating balance-ofpayments position, the Chinese Gc-vernment has found it necessary
to impose stringent foreign-exchange and trade controls, the most
recent revisions of which were announced on August 17, 1947*
Under the trade regulations, all permitted imports into China require a license issued only to registered importers and firms. Additionally, certain commodities—e. g., lumber, tobacco leaf, wheat,
flour, raw cotton, pharmaceuticals, dyes, et cetera—are imported
under both license and quota requirements.
Importers are financed at the "official" open market rate, which is
subject to daily readjustment.
Exporters, also, are now required to sell their foreign exchange to
appointed banks at the open market rate.
The. restriction on the export of foreign currency, gold, silver,
coins, and bullion, coupled with the absence of any provision for the
sale of exchange for remittances, not only makes it impossible presently
for foreign firms to remit profits, but also to withdraw capital investment. In the Chinese Government's policy statement of August 13,
1947, however, assurances were given that profits of foreign investments may be remitted in principle, and that regulations are currently
being drawn whereby an appropriate portion of profits realized from
foreign investments in industrial enterprises may be remitted.
The administration of the exchange and trade control regulations has
been the subject of considerable criticism on the part of the foreign
commercial community, such criticism dealing with the alleged favored
position as to licenses and quotas of state trading organizations and
private Chinese concerns, the encroachment of Government monopolies into fields not previously defined as fields of Government monopo-
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
119
lies, and the alleged arbitrary enforcement of newly promulgated
exchange and trade regulations without affording sufficient protection
for commitments already made.
Competition of Government-owned corporations.—The Chinese Government through agencies such as the National Resources Commission
and the Alien Property Administration has entered into fields of
industrial activity, such as cotton textiles, not formerly invaded by
the Chinese Government.
Although recent policy statements indicate that the Chinese Government intends to sell certain industrial enterprises taken over from
the Japanese and recently run by Government corporation, Chinese
Government participation in industry has in the meantime greatly
increased over prewar levels.
British Malaya
Right to do business.—There are, generally speaking, no legal provisions restricting the rights of foreigners to do business in Malaya.
Apart from certain "Malay reservation" areas in the Malay States
and certain "customary lands" in Malacca where land may be held
by Malays only, there is no discriminatory legislation which would
prevent the acquisition of mining rights by an American company.
However, the control of mining and mining properties, as well as the
conditions under which individuals and companies are granted permission to operate is such as to insure that the British Government
and its citizens will not at any time be seriously handicapped by
operations on the part of foreigners or foreign concerns.
Taxation.—In 1941 legislation was enacted for a war tax on incomes for that year. Late that year the law was extended for another
year. Under the law all companies were to pay tax at the rate of 12
percent on their income. While no definite information has been
received, it is assumed that this war tax on incomes is still in effect.
No other forms of income tax, war profits and excess profit taxes
were in effect prior to the war.
Labor regulations.—So far as available information goes, there are
no laws which restrict the employment of foreigners in British Malaya.
Since more than half the total population is "foreign"—notably
Chinese and Indians—and immigration of foreigners is encouraged
to provide both skilled and unskilled labor on plantations and in
mines, it is most probable that no restrictive measures are contemplated.
Foreign exchange controls.—All transactions involving use of dollar
exchange are under strict control. Upon approval of applications,
remittances can be made outside the sterling area for "income arising
from investments in Malaya, e. g. interest, dividends, rents, and
profits of nonresident-owned Malayan companies (after deduction of
Malayan taxes), etc. There is nothing to indicate t h a t American
companies operating in Malaya are having difficulties remitting profits.
Competition with Government-owned companies.—Except
for trade
in opium, there is no known Government monopoly of business in
British Malaya.
Netherlands Indies
Right to do business.—A foreign company, operating legally in the
country where it has its principal office, is recognized as a legal person
in the Netherlands Indies and may carry on its activities there. If
1 2 0 ' FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
an office is established in the colony, registration in the Commercial
Register is required.
A foreign company contemplating the holding of real property, the
taking up of Government land, the holding of concessions from the
Government or taking part in any other transactions involving obligations to the State, is required to establish itself as a Dutch entity.
Therefore any company desiring to secure concessions in Netherlands
Indies is required to form a limited company registered either in
Netherlands Indies or Holland, whose managing directors or the
majority of i,ts directors are Netherlanders or reside in Holland or in
Netherlands Indies.
Although the mining law itself does not discriminate against foreigners, and article 5a of the mining law expressly authorizes the
Indies Government to reserve lands and to enter into contracts with
persons or companies for the exploration of the land and the exploitation of the minerals reserved to itself, the law further provides that
legislative approval must be obtained of any contracts so formed;
therefore American rights with respect to minerals reserved to the
Government depend in each instance upon satisfactory negotiations
with the Government of the Netherlands Indies and also upon favorable parliamentary action.
The Agrarian Decree of 1870, revised and amended, provides in
article 11 that only the following can be leaseholders: (a) Subjects of
the Netherlands; (b) residents of the Netherlands; (c) residents of
the Netherlands Indies; (d) limited companies established in the
Netherlands or Netherlands Indies. A resident of the Netherlands
Indies is a person of any nationality who has resided in the colony
for more than 18 months and who "does not leave the colony for more
than 1 year at a time.
The insurance law of April 15, 1941, contains provisions which
might prove so burdensome as to prevent foreign insurance corporations from engaging in business within the.Indies.
Taxation.—An income tax is payable by all persons or firms earning
income in the Indies. Prior to the war there were no requirements
relating to the employment of labor. In the event the Netherlands
Indies become independent, the Indonesian Government will no doubt
enact legislation regarding labor and its employment.
Foreign exchange controls.—In normal times the Netherlands Indies
has had available large amounts of foreign exchange and no control
was necessary. Owing to the present severe shortage of foreign
exchange, controls are strictly applied, exchange being authorized
only for absolute necessaries. All exchange derived from exports
must be turned over to the Exchange Institute, which makes payment
in guilders.
As far as is known nationalization of American-owned companies
in the Netherlands Indies has not taken place.
Competition with Government-owned companies.—In prewar years the
Government of the Netherlands Indies operated three monopolies,
viz, pawnshops/ opium manufacturing, and salt production.
To assist the Dutch quinine monopoly, the Netherlands Indies
Government prior to the war imposed on all producers of cinchona
bark a limit on annual exports and restricted • the planting of new
trees to the replacement of old ones. The monopoly, which is in
control of 90 percent of the world's supply of quinine, is operated as
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
121
a syndicate, comprising planters in the Netherlands Indies and three
manufacturers—two with plants in the Netherlands and the third
with a factory in Java. The Netherlands Indies Government which
is the owner of a large cinchona plantation is a member of the
syndicate.
Republic of the Philippines
Eight to do business.—The Republic of the Philippines has gone
on record as entirely receptive to American capital and American
business enterprise. Moreover, in accordance with provisions of the
executive agreement signed in Manila July 4, 1946, the Philippine
Constitution was amended, following a plebiscite of the Philippine
people in March 1947, to provide that the exploitation of all natural
resources and the operation of public utilities should, if open to any
person, be open to citizens of the United States and to all forms of
business enterprise owned or controlled directly or indirectly by such
citizens.
The Philippine Trade Act of 1946 provides specifically that the
executive agreement, which implements the act, shall be terminated
in the event of discrimination against any form of United States
business enterprise on the part of the Government of the Republic
of the Philippines or any of its political subdivisions.
A bill to repeal laws granting special privileges to American citizens
and corporations—unless such laws affected rights vested under the
constitution or by treaty or agreement—was passed by the Philippine
Congress in 1946.
Registration under the corporation law of the Philippines is necessary to the conduct of business I n the Republic. A license must be
obtained from the chief of the Mercantile Register of the Securities
and Exchange Commission, upon filing of a statement certifying to
certain details of capital stock, assets, liabilities, etc. Acknowledgment and authentication of certain documents pertaining to the establishment of a branch office, articles of incorporation, etc., are also
necessary. Fees collected for the filing of articles of incorporation
and for registration are based on the capital stock of the foreign corporation.
Taxation.—Taxation
includes an income tax, a corporation tax,
and an undistributed profits tax, as well as a fixed tax upon business.
Certain enterprises pay specified annual taxes, while annual privilege
taxes are collected on certain occupations. Special taxes are provided
for the mining industry, and all business pays specific, sales, and/or
compensating taxes, as applicable. A residence tax is imposed on
-corporations as well as on individuals. I n recent months negotiations have been under way for a tax treaty between the United States
and the Philippine Republic under which double taxation of Americans doing business in the Philippines, and of Filipinos operating in
the United States, would be avoided.
Labor regulations.—An 8-hour labor law is in force and a minimumwage law applies to public works. Legislation also provides for workmen's compensations, and inspections of working conditions are made
by the Department of Labor. The only industrial establishments
required to register systematically with the Department are mines,
quarries, and metallurgical operations.
69140—48
9
122
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
Foreign exchange controls and tariff.—Under terms of the executive
agreement between the United States and the Philippine Republic,
trade between the two countries is on a reciprocally free basis for a
period of 8 years beginning July 4, 1946, with declining trade preferences for 20 years thereafter.
Stabilization of Philippine currency in relation to .the United States
dollar also is provided by the agreement, which stipulates further that
no restrictions may be imposed on the transfer of funds from the
Philippines to the United States, except by agreement with the
President of the United States.
Government-owned corporations.—Government-owned
corporations
have not offered serious competition in the Philippines. The declared
purpose of Government participation in industry and trade has been
to stabilize prices and assist producers and importers. In its plans
for postwar economic recovery, however, the Government may take
a somewhat more active part in the rehabilitation of industry and
trade. Some of the new projects proposed for industrialization will
be financed by the Government, if private capital is not interested.
To meet criticism that expanding governmental activities constituted
an unfair competitive threat to private business, legislation was
recently enacted to subject agencies owned or controlled by the
Government to all taxes and charges required of private business.
Nationalization.—There
has been no nationalization of American
property in the Philippines since^establishment of the Republic, nor
does such a development appear likely. Proposed legislation to
nationalize labor—directed specifically at the Chinese—lacked
administration support and failed to pass.
Actual administration.—There
h&s been no indication in the actual
practices and administration of the law, since establishment of the
Philippine Republic, of discrimination against American interests.
Siam
Right to do business.—-The Kingdom of Siam generally imposes no
restrictions on the doing of business by foreigners in that country.
A royal sanction or concession must be obtained in order to carry
on a commercial undertaking of public utility. The following commercial undertakings are deemed of public utility: Railways, tramways, canals, aerial navigation, water supply, irrigation, electric
power station, and such other undertakings affecting the public safety
or welfare as may, from time to time, be specified by royal decree.
The provisions of special laws must be complied with by all persons
or firms in order to carry on a business of insurance, banking, savings
bank, credit foncier, or undertaking of a similar nature.
The Siamese Mining Act of 1919 stipulates that all lands and minerals are crown property, .and the right to prospect or mine must
be expressly granted by the Government. A royalty is payable on
minerals produced. For the purpose of collecting royalties on tin,
the Government raised the arbitrary basis of calculating the metallic
content of tin ore to 72 percent in 1923 from a former level of 70
percent.
The cutting of teak wood is only permitted under concession. To
avoid excessive tie-up of lessees' capital, the major royalty on teak
is collected not at the time of tree felling but by fiscal stations main-
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
123
tained by the forest department at certain down-river points where
the teak companies assemble their loose logs into rafts.
Siamese law does not require the qualification of foreign business
organizations. Foreign companies engaging in business in Siam are,,
however, required to register in the business registration office.
Companies, partnerships, or juristic persons established under the
law of Siam or established under the law of foreign countries and carrying on business in Siam must pay an income tax.
There are no labor laws discriminating against foreigners.
Foreign exchange controls.—Foreign exchange control is administered
by the Bank of Siam, under direction of the foreign exchange board,
which was established on June 21,. 1947. Private importers desiring
foreign exchange may file applications to cover imports of priority
goods as listed on the revised priority list. Exchange at the official
rate is granted subject to the amount in the central exchange control.
Exporters of all commodities, except rice, rubber, teak, and tin are
free to utilize 100 percent of their foreign currency proceeds to pay for
imports of any commodities. As of June 16, 1947, exporters of
rubber from the port of Bangkok are required to surrender to the
Bank of Siam only 20 percent of foreign currency proceeds; from Singora to points outside Asia, 20 percent; from all other ports 25 percent.
Exporters of teak and tin are required to surrender only 50 percent
of foreign exchange proceeds. Sellers of rice to the rice bureau are
permitted to buy credit in pounds sterling amounting to 10 percent
of the value of rice sold to the bureau. This sterling may be used as
desired.
Competition with Government-owned companies.—The
followingenterprises are Government owned and operated: 1 sugar mill, 2
paper mills, 1 canning factory, 1 cigarette factory, 1 cotton mill, 1
distillery, 11 rice mills, 1 mineral and 1 vegetable oil refinery, 1 airplane factory, 1 arsenal, 1 lumber mill, all the railway systems, and
the postal, telegraph, and radio broadcasting systems. A semigovernmental firm purchased vessels during 1940 to carry on overseas
trade, and another semigovernmental aviation concern holds t h e
monopoly of internal commercial flying in Siam.
AFRICA
Egypt
Right to do business.—In an effort to bring business, which has been
for so long almost exclusively in the hands of foreigners, under the
control of Egyptian nationals, drastic action is reflected in newly
established regulations. A new company law which became effective
August 11, 1947, provides that at least 40 percent of the directors of
the board of any joint stock company shall be Egyptian. The Council
of Ministers shall have the power to waive this provision in the case
of companies whose activities are mostly abroad.
Under the provisions of the company law, at least 51 percent of t h e
shares of joint stock companies shall be earmarked for Egyptians
whether on founding a company or on the occasion of increasing the
capital.
If the full percentage referred to has not been subscribed to within
the period fixed, which shall not be less than 1 month, the Minister
of Commerce and Industry is authorized to extend the closing date
1 2 4 FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
for subscriptions for a further period not exceeding 1 month, or to waive
the requirements for this percentage in whole or in part.
Labor regulations.—The number of Egyptians employed by a joint
stock company shall not be less than 75 percent of the total number of
its employees, and their total salaries and allowances shall not be less
than 65 percent of the total amount of salaries and allowances paid by
the company. "Employee" means persons performing administrative, technical, clerical, or accounting work. The number of Egyptian
workmen shall not be less than 90 percent of the total number of
workmen, and their total wages shall not be less than 80 percent of the
total amount of wages paid by the company.
The Minister of Commerce and. Industry shall have the power to
authorize the employment, for the period to be fixed by him, of technical managers and expert advisers of foreign nationalities in cases
where it proves impossible to find suitable Egyptians.
In analyzing the application of the above provisions in reference
to labor, it should be kept in mind that Egypt at the present time is
faced with a serious unemployment problem. The population of
non-Egyptian workers is not large, and it would seem unlikely that
additional non-Egyptian workers would seek employment in Egypt.
Egypt is not self-sufficient in skilled technical personnel, which means
t h a t there are many non-Egyptians employed at the present time in
this capacity. I t is expected that a number of years will be required
to train a sufficient number of Egyptian employees in technical skills
before strict obervance of the provisions of the law can be enforced,
and in the meantime and thereafter, the Minister of Commerce and
Industry has the power to authorize the employment of needed technicians.
Exchange control.-—A new exchange control law has been enacted
which places all foreign currency transactions under the control of the
Egyptian Government. Under this law, all transactions in foreign
bank notes, transfers of currency to and from Egypt, and all commitments specified in foreign currency are strictly forbidden imless they
conform to the conditions and forms which are laid down by an order
issued by the Egyptian Minister of Finance.
C.
D E F A U L T STATUS OF PRIVATE U N I T E D STATES LOANS TO FOREIGN
COUNTRIES
The first important period of American lending to foreign countries
was during World War I. From 1914 to 1917 American private
capital had subscribed to about 2,500 million dollars of foreign bonds.
These were principally the issues of the United Kingdon, France,
and Italy. These issues were all repaid in full during the next 10
FOEEIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
125
years- Prom 1917 to 1922 the United States Government made its
first extensive foreign loans, those made to assist the Allies to procure
ammunitions, foodstuffs, and other supplies from this country as well
as advances for postwar relief and sales of surplus war materials on
credit. The story of these loans and credits is told in chapter I.
Prom 1920 through 1930 the private investors in the United States
subscribed to more than 10,000 million dollars of foreign bonds (after
deducting refunding issues). About 45 percent of these were the
issues of European countries, 25 percent Latin American, 20 percent
Canadian, and 10 percent far eastern. Out of these and earlier
flotations, and as a result of transactions in these and other foreign
securities, the United States accumulated a portfolio which reached a
peak about 1930 of approximately 7,000 million dollars.
Early in 1931, when there had been a serious decline in the prices of
raw materials and the world was in the midst of depression, some of the
Latin-American countries defaulted on their foreign debt. Within the
next few years other borrowers, especially European, also defaulted.
During the later years of that decade a few of the defaults were adjusted by temporary or by more permanent arrangements for the
reduction of interest payments and extension of amortization over a
longer period.
During the period of defaults, transactions in foreign dollar bonds *
continued and resulted in net sales by investors in this country including substantial net sales of defaulted bonds to the issuing countries.
These sales and the regular amortization of the nondefaulted issues
reduced the par value of such bonds presently held in this country to
about 2,000 million dollars, approximately two-thirds of which are
Canadian issues. As of the end of 1946, 50 percent of the issues originally sold in this country were in default, either complete or partial
(see table 30). As of the same date, only 25 percent of foreign dollar
bonds held by persons resident in the United States were in default.
The difference resulted from the large repatriations of the defaulted
bonds reducing the holding of that type, and net purchases of Canadian issues which increased the investment in nondefaulted obligations.
Data in table 30 are based on the total of foreign dollar bonds outstanding and take no account of the location of the owners. Furthermore, in some countries part or even all of the issues in default are
those of state, municipal, or private corporate borrowers. Detailed
information on the course and present status of defaults by countries
is available in condensed form in reports of the Foreign Bondholders
Protective Council, Inc.
1
Foreign dollar bonds are bonds of foreign governments and corporations expressed in terms of United
States dollars. Usually they were originally sold to American investors in large blocks through public
Offerings by investment bankers.
126
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
T A B L E 30.—Status of publicly offered foreign dollar bonds as oj Dec. 31, 19J+6
P r i n c i p a l a m o u n t on which—
D e b t service
paid in full t o
D e c . 31,1946 1
Country
Asia:
China
Japan
..
.
_.
_
T o t a l Asia
Europe:
A u s t r i a __
Belgium
Bulgaria
Czechoslovakia
Danzig
Denmark
Estonia.
Finland
_
France
Germany
Greece
Hungary
Eire
Italy
Norway
Poland
.
Rumania
Russia
Yugoslavia.
.
. .
.
_
_
._
_
.
6, 522,085
283,267, 700
1,022,085
288,767, 700
289,789,785
36, 710, 600
39, 705, 779
5 10,938,000
75,000,000
65,912,494
36,710, 600
28, 223, 600
16,634,500
3, 536,800
3,422,000
114,293,000
3, 271, 500
8, 561,500
11,456,300
665,121,'417
26,942, 500
51,830,490
609, 500
150, 602,600
79,251,000
39, 705,779
10,938,000
75,000,000
65,912,494
146, 210,000
1,148,936,080
1,392,023,580
49, 201, 600
759,400
59,422,000
48,288, 645
138, 743,500
107,176, 500
8,099,505
9,185,856
46,963,700
238,585,534
974,000
85,656,500
1,560,000
49,961,000
59, 422,000
204,146, 795
155,086,000
149,059,402
8,099, 505
91,782,856
10, 909,000
9,231,056
6, 094,479
273,582,034
15,576,156
85, 656, 500
48, 523,700
455,570,364
701,825,140
1,167,130, 483
1,426,842,501
5,543,400
1,432,385,901
1,426,842,501
5,543,400
1,432,385, 901
18,679,600
16, 634, 500
2, 844, 200
3, 422, COO
32, 504, 500
3, 271,500
___
8,561,500
11, 456,300
3 665,121,417
26,942, 500
51,830,490
609, 500
150,602,600
._
73,706,000
_
. ..
-
...
155, 858,150
16,342, 500
41,882,902
:
..
_
N o r t h America: Canada
Total North America
82,597, 000
7,268,500
5,857,356
34,996,500
14,602,156
Total Latin America
Grand total
5, 500,000
283, 267,700
__
Total Europe
Total Oceania..
T o t a l principal a m o u n t
outstanding
1,022,085
692, 60C
.
__
_
Latin America:
Argentina,.
Bolivia
Brazil
Chile
Colombia.
_ ..
Costa Rica
Cuba
Dominican Republic
'
El Salvador
Haiti
Mexico
Panama:__
Peru
Uruguay
Oceania: A u s t r a l i a
I n t e r e s t in
default 2
...
4
3,373,700
225,755,000
225,755,000
225,755,000 1
225,755,000
2,255,399,950
2,145,072, .320
6
4,507,084,749
1
2
3
4
6
6
Includes non-interest-bearing scrip issued in full or part payment of matured coupons.
Most issues in default as to interest are also in default as to sinking fund.
Includes $355,752 non-interest-bearing fractional certificates.
Includes $4,469 non-interest-bearing fractional certificates.
Estimated amount of American tranche of Kingdom of Rumania Monopolies Institute loan.
Bonds in default on sinking fund or principal only not included in the first 2 columns, amounted to
$106,612,479, divided as follows: Dominican Republic, $3,640,500; Haiti, $6,094,479; Belgium, $9,544,000;
Denmark, $81,788,500; Norway, $5,545,000.
Source: Institute of International Finance of New York University, Statistical Analysis of Foreign Dollar
Bonds, appendix B, pp. 32-33, Bulletin No. 150, June 30, 1947.
CHAPTER
IV. NATIONAL D E B T , R E V E N U E , A N D
INCOME
This chapter brings together the data in reply to five items in
Senate Resolution 103 that relate to internal matters. These questions were as follows:
Item 10. The effects of the war on the public debt of the United States.
Item 11. The per capita tax burden of the people of the United States classified
as (1) Federal, (2) State and local, and (3) to^al; and the total per capita tax
burden of the people of each of the countries now in debt to the United States or
with whom loan and investment discussions have been held by any American
official since 1939.
Item 12. The total per capita debt burden for each of the countries mentioned
in item 11.
Item 13. The latest reasonably reliable report on the national income, reduced
to a per capita basis, for each country mentioned in item 11.
Item 14. The average interest rates for Government borrowing, according to
the latest reasonably reliable report, in each of the countries mentioned in item 11.
GENERAL STATEMENT AND DEFINITIONS
The interpretation of data comparing the public debt, the per capita
tax burden, or the national income of various countries is always
subject to severe limitations. This is true not only because the data
on which this information is based are usually incomplete and the
series differ in their composition, but also because the same relative
tax or debt figures do not necessarily imply a comparable economic
impact or a comparable burden for the individual.
These difficulties are compounded at the .present time when, as a
result of the war, internal debts in some countries are being practically wiped out by inflation, when tax collections are slow and
ineffective and cannot catch up with the progressive inflation of
values, and when the yield of the tax system is greatly reduced by
the low level of productive activity. Furthermore, in conditions of
that kind, the measurement of government revenues and national
income is most difficult and the results, particularly for purposes of
comparison with prewar and with other countries, are of questionable
validity.
All three sets of data—public debt, tax burden, and national income—have been brought together, in table 31, because the principal
value of the data is in the relationship between them. The relationship between the tax burden and national income is probably most
significant and that has been shown in the table in the form of a ratio.
However, it should be pointed out that the economic impact of the
same relative per capita burden might differ considerably as between
countries, depending upon the structure of their tax system. The
same total revenue could be raised in one case by a tax system in
which a graduated income tax would provide the bulk of the revenue,
while in another country the chief reliance would be put on customs
and excise taxes. The effect in either case on production, consumption, and incomes might be quite different.
Furthermore, the type of expenditures to be financed from the tax
revenue should also be taken into consideration. I n some cases the
127
128
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
difference in the tax burden indicates merely a different degree of
government participation in the economic life of the country; and
government expenditures, such as for social-security benefits, are
merely an alternative to private expenditures for the same services in
other countries. The Government of the United Kingdom, for instance, has held the cost of many of the necessities of life down to a low
figure by absorbing a large part of the cost itself. This adds to t h e
cost of government in the United Kingdom, while in countries that do
not follow this practice the additional cost is borne by individuals as a
personal expenditure outside of the tax structure. Instances of thiskind can be multiplied; and, unless the data are limited to comparable
functions of government, comparisons will in general only point to the
differences in the services performed.
A further point to bear in mind is that in some countries the national
governments perform many functions performed by local governments
in other countries. For example, in times of peace the tax collections
of the national government of the United States have been less than
those of State and local governments combined (see table 38), and in
Canada and Switzerland the national government receipts are normally the least important, while in France the national government
is the dominant factor and local revenue receipts are a small part of
taxes collected. Furthermore, since the war, many national governments act as purchasing organizations for some of the essential imports of foodstuffs and industrial raw materials. This makes their
revenues and expenditures higher in proportion to their national
incomes than would be the case for other countries.
Intercountry comparison of per capita tax and debt burdens is
meaningful, therefore, only as a measure of the degree of participation
of the government in the economy. Taxes and government debt are
payments for goods, services, and additions to national wealth provided by governments. The greater the volume of goods provided
and services rendered under government auspices, the higher the tax
and/or debt burden.
Supplementary tables are included in this chapter, partly as a
service to persons using the data to enable them to see in what manner
the gross foreign currency data were put into the form of per capita
amounts expressed in dollars. For this purpose table 33, Population
and Exchange Rates, was prepared. In table 32, the national debt is
divided into its internal and external components. The latter
reveals the countries which are most dependent financially upon
foreign countries. In a few cases, such as Hungary, the relationship
between the internal and external debts is the result primarily of the
postwar inflation which, for all practical purposes, wiped out the
value of internal obligations.
Government revenue
In the answer to the item 11, the term tax burden was interpreted
broadly to include other revenues which constitute a part of the burden
imposed on the people for the support of the government. Insofar as
possible data were collected regarding all foreign countries. However,
it was impossible to obtain any substantial amount of information
regarding state and local taxes and revenues and, accordingly, the
data supplied relate exclusively to national governments.
The taxation and other revenue figures shown in table 31 are for the
calendar years 1939 and 1946; or where the country is on a fiscal-year
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
129
•
basis, for the fiscal years which include the most months in 1939 and
1946. Actual taxes and revenues collected rather than budget estimates were used in all cases where the data were obtainable. Budget
estimates are used when actual revenues are not available. These
data were culled from a variety gf sources including consular dispatches, official publications of the various governments, and Moody's
Governments and Municipals. The publication, Tax Systems of the
World, was especially useful for 1939 data concerning Latin America.
Taxes include direct and indirect taxes such as excise, sales, estate,
income, corporation, unemployment compensation and other socialsecurity taxes, customs duties, fees, and licenses. " Other re venues''
include government royalties, interest, and dividends from government
investments, proceeds from U N R R A sales, sales of public land,
confiscated property and surplus property, but exclude loan proceeds,
grants-in-aid, and reparation 'receipts. Net profits derived from
government enterprises include such government undertakings and
monopolies as the post office and railroads, telephone and telegraph,
commodity monopolies, and exchange control. Each government
enterprise in this category has been treated as a separate unit; consequently, where the expenditures exceeded receipts, the deficit was
not deducted from the profits of some other unit. The total resultant
revenue receipts, expressed in the local currency, was then converted
to United States dollars at the average official exchange rate for the
period.
Government Debt
The same procedures were followed in compiling the public debt of
the various countries. Whenever available, the debt as of December
1939 and 1946, or the nearest available date, is broken down into its
foreign and domestic components. Debts of government-owned
corporations, to the extent that they are held outside of the government, are included. World War I debts to the United States have
been excluded, as these are being shown separately in chapter I.
Loans to private companies guaranteed by the government are
excluded unless the government has been called upon to make good
on its guaranty. Municipal debt guaranteed by the Federal government is considered as municipal rather than Federal. I n addition to
the above sources for the Government revenue, other main sources
of debt data were the League of Nations' Statistical Yearbook and the
Statesman's Yearbook.
National income
D a t a regarding the national incomes of various countries were obtained from official estimates where those were available. There is,
however, considerable divergence among them with respect to the
methods and principles of compilation and evaluation, particularly
the inclusion and exclusion of a number of items. Sometimes these
differences are due to the nature of the available statistics and sometimes they arise out of the peculiar structure of the economies to which
they relate, and sometimes they are due to conceptual differences with
regard to the content of national income.
Another difficulty marring the comparability of the per capita
figures in dollar terms is the selecting of a proper exchange rate for
translating the foreign currencies into dollars. As a consequence of
government control of the exchange rates and the internal maladjust
130
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D
STATES
ments brought about by thp war, the foreign exchange rates of m a n y
countries are kept at an artificially high level which does not correspond to the actual purchasing power of their currencies in their
domestic markets.
In general, the estimates relate to national income at factor cost;,
t h a t is, the aggregate earnings of Tabor and property which arise from
the current production of goods and services.
D a t a regarding the national income of the United States were obtained from figures released by the United States Department of
Commerce. Those relating to foreign countries were obtained from
various sources. I n the first place data contained in a paper prepared
by Dr. J. B . D . Derksen, Chief, National Income Statistics Research
Section, Statistical Office, United Nations Secretariat, were used (the
Comparability of National Income Estimates, delivered before the
World Statistical Congress, Washington, D . C , September 1947).
Second, other data were received from reports of the United States
consular service.
T A B L E 31.—Per capita tax burden, debt burden and national income of the United'
States and of foreign countries, and ratio of taxes to national income, 19S9 and
1946
[In dollars. Available data nearest to date specified]
1946
1939
Country and area
RatioRatioNaNaTax
Tax
taxes to Debt
taxes to
Debt
tional national
tional national
burden burden income
b u r d e n burden income
income
income
x
AFRICA
Anglo-Egyptian Sudan
Angola _ _ _ _
Belgian Congo
.
Cape Verde Islands
_..._.,
Eritrea
Ethiopia
Gambia
Egypt
Gold Coast
Italian East Africa
Kenya
Liberia
Libya
Mauritius
Mozambique
Nigeria
„ __ _
Northern Rhodesia
Nyasaland
Portuguese Guinea
St. Helena and Ascension Islands
Sao Tome and Principe Islands. _
Seychelles
__
Sierra Leona
__
Somaliland (British)
Somalia ._
i
Southern Rhodesia
Spanish Guinea
Spanish Morocco
Spanish West Africa
Tanganyika
Tangier ._ _
Uganda. _- _ _ __
Union of South Africa
Zanzibar
C1)
6
19
2 6
(2)
()
1
27
11
0)
20
5 1
()
30
5
6
13
0)
0)
3
3
(2)
38
7
3
113
ASIA
Aden _
_
Afghanistan
(3)
Burma
_
12
Ceylon
_
11
•2
China
See footnotes at end of table, p . 132.
3
1
2
5
2
( )
(2)
5
11
4
2
3 5
()
(5)
14
5
1
5
2
3
22
8
13
3
2
2
()
13
0)
2
0)
2
10
2
18
9
2
1
4
7
3
()
5
11
20
5
(22)
()
85
(3)
1
26
7
1:7.7
(4)
28
246
(5)
(3)
C1)
5
7
0)
2
3
(2>
104
1:8.0
C1)
61
1:10.4
3
206
5
188
0)
(3)
63
29
1:9.6
1:145.0
15
17
3
5
3
5
5
8
1
5
17
5
(4)
8
1
20
22
5
2
7
2
5
60
8
23
5
9
3
26
2
8
3
3
21
3
45
10
4
4
4
16
1
(4)
.
1:5.1
231
•
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES 1 3 1
T A B L E 31—Per capita tax burden, debt burden and national income of the United
States and of foreign countries, and ratio of taxes to national income, 1939 and
1946—Continued
[In dollars. Available data nearest to date specified]
1939
C o u n t r y a n d area
Tax
Debt
burden burden
1946
National
income
Ratio—
NaTax
taxes t o
Debt
tional
national b u r d e n b u r d e n i n c o m e
income
Ratio—
taxes t o
national
income
ASIA—continued
French Indo China
Hong Kong _
..
India
..
Iraq _ _ _ _
..
Iran
Indonesia
Japan
Korea._ . . .
..
Macao (Portuguese),
M a l a y a n Union and Singapore. _
Palestine
Philippines
Portuguese India
Siam__ _ _ _ _
Syria-Lebanon
Saudi Arabia
.
Transjordan
.._ . .
Turkey
_
EUROPE
2
4
12
1
5
11
76
3 7
()
9
10
2
1
2
0)
0)
2
26
0)
1
10
1
9
9
5
18
6
5
13
12
4
4
3
5
3
5
12
34
1:34.0
22
93
1:4.4
1:5.2
§1
1:6.8
1:8.0
32
4
19
2
12
9
85
6 13
0)
0)
12
2
1
4
1
3 5
()
35
0)
12
5
16
10
0) '
41
6 20
7
14
41
7
3
4
26
5
7
33
45
1:9.0
65
1:1.6
280
88
1:6.8
1:12.6
88
517
166
232
1:3.5
1:3.3
1:6.9
1:3.6
562
345
1:8.4
1:5.0
214
1:1.7
109
1:3.6
94
1:6.3
321
505
70
1:2.4
1:5.5
1:2.7
635
1:5.1
653
1:2.3
78
1:6.5
v
Albania
_
Austria
Belgium,
Bulgaria. .
Czechoslovakia.
C y p r u s -_
Denmark
Eire.
Finland
.
France.
Germany
Gibraltar
...
. . . . . _.
Greece .
. ._
Greenland
1
... .
Hungary
Iceland . _
Italy
Luxembourg
Malta
Netherlands
Norway
...
Poland
P o r t u g a l (including Azores a n d
Madeira)
Rumania
_
Spain
Sweden
_
Switzerland
United Kingdom.
U n i o n of Soviet Socialist R e publics _ __
Yugoslavia
__ .
36
73
176
81
1
259
122
29
5
37
46
15
20
12
33
52
37
43
157
45
14
65
23
35
28
40
23
54
46
12
33
39
93
100
338
667
11
13
19
51
31
97
436
445
468
1:8.5
1:14.3
1:4.8
34
32
129
9
509
96
1:3.9
1:10.7
47
37
4
9
4
40
10
40
30
9
4
5
2
24
4
6
76
48
45
50
71
45
61
1:8.4
1:12.0
1:9.0
1:25.0
1:3.0
1:11.3
1:10.2
118
35
28
56
99
15
24
6
6
19
20
6
218
47
45
1:9.1
1:7.8
1:7.5
174
76
1:8.7
1:12.7
15
89
190
70
111
10
64
99
29
283
87
0)
166
261
109
134
338
248
184
283
520
"
1:4.0
. 1:5.7
1:7.3
1:6.7
1:10.2
1:4.8
1:5.0
1:6.6
1:3.3
(0
204
684
136
159
28
472
105
199
, 433
94
136
1:9.7
125
1:5.4
140
1:5.0
25
51
85
190
338
279
95
1:6.3
1:6.1
1:7.9
648
• 459
0)
0)
V)
49
09
213
468
603
2,095
137
0)
12
25
159
24
65
30
67
69
184
127
91
38
70
30
223
15
225
61
136
92
26
17
4
33
125
18
279
C1)
297
23
LATIN AMERICA
C e n t r a l A m e r i c a a n d Mexico:
British H o n d u r a s
Costa Rica
Guatemala
Honduras
Nicaragua.
Panama
E l Salvador
.
..
Mexico
South America:
Argentina
Bolivia
Brazil
British G u i a n a
Chile
Colombia
.>
.
See footnotes at end of table, p. 132.
31
59
1
6
6
32
9
23
27
12
9
7
4
52
7
18
195
43
19
43
86
24
40
8
13
6
16
(
56
186
1:14.0
1:3.6
111
1:6.2
312
1:7.8
113
1:8.7
359
110
1:10.0
1:6.9
132
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 31.—Per capita tax burden, debt burden and national income of the United
States and of foreign countries, and ratio of taxes to national income, 1939 and
1946—Continued
[In dollars. Available data nearest to date specified]
1946
1939
Country and area
RatioRatioNaNaTax
taxes to
Tax
taxes to Debt
Debt
tional national
tional national
burden burden income
burden burden income
income
income
LATIN AMERICA—continued
South America—Continued
Ecuador
Falkland Islands
French Guiana
Paraguay
Peru
Surinam .
Uruguay
_.
Venezuela
West Indies and Bermuda:
British West Indies:
Bahamas _
Barbados
Bermuda
Cayman
Jamaica
Leeward Islands
Trinidad and Tobago
Turks and Caicoa Isles..
Windward Islands
_.
Cuba
Dominican Republic
French West Indies:
Guadalupe
Martinique
Haiti
Netherlands West Indies:
Curacao
10
C1)
11
25
3
140
1
12
8
7 13
()
25
14
34
4
44
9
3
100
0)
9
5
15
28
32
26
12
56
5
13
14
23
9
6
16
7"
10
7
11
2
0)
4
44
1:14.7
39
72
1:4.3
1:14.4
56
92
1:2.0
1:2.9
25
47
1
164
2
12
12
106
5
26
4
42
98
51
1:6.1
1:7.3
8
36
8
50
1:25.0
9
17
3
60
0)
13
0)
6
133
38
1:6.3
0)
13
12
32
41
77
40
1:3.3
112
115
1:2.7
1:1.5
32
31
114
12
24
26
44
17
2
43
15
262
86
1:6.1
1:5.7
20
1:6.7
11
0)
133
1,365
308
1,830
193
87
313
845
159
1
30
27
17
4
237
2
4
1
10
NORTH AMERICA
Canada
Newfoundland
United States
384
342
351
43
37
43
389
554
1:12.9
219
16
42
6
19
17
6
2
102
2
6
1
6
403
1:9.6
1:9.0
772
1:4.0
1,262
1:4.0
577
1:3.6
591
1:2.5
OCEANIA
Australia
British North Borneo
Brunei
Fiji (British) .
.
Gilbert and Ellice Islands
New Hebrides ._
New Zealand
Solomon Islands
Sarawak
Timor
Tonga
1
8
3
4
_
30
._
668
3
Not available.
Iicluded
in Italian East Africa.
Le c s than 50 cents.
See Eritrea, Ethiopia, and Somalia.
B Provinces incorporated in territory of Italy.
6
These figures are for South Korea only.
7
Combined with Jamaica.
0)
28
396
1:3.9
1,150
3
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
133
T A B L E 32-—Internal and external public debt of foreign countries, 1939 and 191+6
[In millions of dollars. Available data nearest to date specified]
1939
1946
Arcea a n d c o u n t r y
Internal
External
Total
Internal
External
Total
AFRICA
Anglo-E gy ptiam S u d a n
Angola ._
Belgian Congo
Cape Verde Islands._.
Egypt-.
EritreaEthiopia,
Gambia..
Gold Coast
I t a l i a n E a s t Africa
Kenya _
Liberia
.
L i b y a ..
Mauritius
._
.
-_
.._
__
0)
(33)
()
__
7
40
197
1
447
3
440
(33)
()
( 3)
()
(2)
42
, 0)
2.
(2)
Nigeria
__
N o r t h e r n R h o d e s i a . _. .
Nyasaland
__
Portuguese Guinea
•
Sao T o n 6 a n d P r i n c i p e I s l a n d s
Sierra Leone .
Somalia
_
Somaliland (British)
S o u t h e r n R h o d e s i a ..*
Tanganyika
.._
Uganda
U n i o n of S o u t h Africa
61
(22)
()
(4)
1
(4)
,
•
(3)
(3)
(2)
738
422
0)
11
100
15
(0
0)
(3)
34
115
9
8
101
9
22
s..
.
69
2
13
0)
..
418
36
43
1
209
(2)
479
2
()
5
1
54
1
11
1,160
58
42
2,296
56
80
470
1
273
38
977
5,806
4
113
8
157
5,089
17
580
0)
6
100
31
11
2,352
ASIA
Aden
Afghanistan.
Burma
Ceylon
.
China
__ _
French Indcchina.
H o n g Kong...
India .
14
215
43 I
2,196 -
Iraq
_
Iran
__ __
Japan...
Korea
M a c a o (Portuguese)
. . .
M a l a y a n U n i o n a n d Singapore
Palestine
___
___
Philippines.
_
Portuguese India
Saudi A r a b i a
Siam
Syria-Lebanon
Transjordan
Turkey.
__ __
.
__
._
..
„
1
203
62
796
54
4
4
3,532
729
4
65
5,070
4
295
47
16
EUROPE
Albania
Austria
Belgium
Bulgaria
Cyprus
Czechoslovakia
Denmark
Eire
Finland
France
Germany
Greece
Greenland
Hungary
Iceland
Italy
Luxembourg
Malta
Netherlands
Norway _
Poland
1
203
48
581
11
4
1,336
...
4
27
300
170
(2)
I
303
1,374
308
16
296
221
1544
1,490
106
288
32
11,307
133
140
1
75
342
0)
0)
518
109
0)
0)
_
118
8
7,670
2 17
()
_.
See footnotes at end qf table, p. 134.
1
2,287
218
535 1
208
1
101
2 7
()
140
208 |
69
5,365
158
21
(0
0)
(1)
47
16
40
1
38
5
31
1
470
16
599
1,595
462
4
1,623
246
289
107
11,649
0)
627
0)
326
7,771
2,287
24
358
743 1
391
0)
1,336
5,561
858
4
1,782
1,779
310
538
16, 257
0)
0)6
102
()
6
3,202
33
0)
5,460
1,313
0)
0)
1
273
118
1 447
0)
4
5,919
704
3
174
5,669
5
260
0)
0)
25
23
(2)
268
90
176
95
213
158
1
233
906
599
(0
228
1
659
20
0)
642
82
0)
(2)
21
37
1
25
61
5
659
(0
1,426
5,737
953
13
1,995
1 937
311
771
17,163
0)
701
0)
228
7
3,861
53
0)
6,102
1,395
0)
134
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D
STATES
T A B L E 32.—Internal and external public debt of foreign countries,
1946—Continued
[In millions of dollars.
1939 and
A v a i l a b l e d a t a n e a r e s t t o d a t e specifiee]
1939
1946
Area a n d country
Internal
External
146
291
2,292
634
1,421
31, 873
5,849
288
112
492
92
210
258
783
2,384
634
1,421
31,873
5,849
498
6
2
7
1
4
4
68
18
10
3
3
18
14
701
3
24
12
10
4
22
18
769
1,116
14
763
439
102.
375
114
28
2
349
111
27
15
5
137
162
1
138
3
Total
Internal
External
367
2
5, 426
3,167
2,684
100,052
26,037
34
1
327
Total
E UEOPE—continued
P o r t u g a l ( i n c l u d i n g Azores a n d Madeira)__
R u m a n i a . _,
.
_
.
Spain
.
Sweden.
_.
Switzerland
United Kingdom
TJ. S. S. R__
_
Yugoslavia
3,097
171
(0
0)
401
3
5, 753
3,167
2,684
103,149
26,208
(0
LATIN AMERICA
Central America a n d Mexico:
_
British Honduras
Costa Rica
Guatemala.
.
_
Honduras
. _
Nicaragua
,
Panama...
. . . ___
.._ . . .
E l Salvador..
M e x i c o . __
.
South America:
Argentina
Bolivia
Brazil.
British Guiana
_ __ _ .
Chile
Colombia
.._
Ecuador
French Guiana
.
Paraguay
Peru .
Surinam
Uruguay
Venezuela
_
W e s t Indies a n d B e r m u d a :
British West Indies:
Bahamas
_
Barbados
Bermuda
Cayman Islands
Jamaica
_
Leeward Islands
T r i n i d a d a n d Tobago._
_
W indward Islands
Cuba
*_
Dominican Republic
French West Indies:
Guadalupe
Martinique
Haiti
Netherlands West Indies: Curacao _
(7)
1,555
116
1,138
17
463
139
29
63
126
15
2
8
26
1
2
5
16
15
283
3,103
21
733
34
138
165
178
164
10
293
86
34
14
147
15
174
356
8
128
2
2
46
2
7
6
20
18
523
3,137
159
898
16
471
250
44
(i)
0)
11
152
(2)
300
4
1
2 2
(7 )
()
(J)
(0
-
20
1
5
• 1
- 4
3
240
30
1
16
1
189
15
2
( ) 484
10
(2)
(2)
10
1
2
4
35
78
4
102
13
24
2
180
17
1
9
3
4
10
3
0)
29
321
0)
0)
N O R T H AMERICA
3,889
Canada.
Newfoundland
0)
439
0)
4,328
100
16,339
7
460
91
16,799
98
1,535
5
6
1,091
1
5,590
678
6,268
1,570
493
7
2,063
1
OCEANIA
Australia
__
British N o r t h Borneo
Fiji ( B r i t i s h ) „
_ . __.
N e w Zealand
Timor
..
821
714
494
597
- _ .
%
i Not available.
•*3 Less than $500,000.
Included in Italian East Africa.
4
See Eritrea, Ethiopia, and Somalia.
* South Korea only.
• Old internal debt liquidated by the stabilization of the currency, 1946. Recent short-term debt negligible.
i Combined with Jamaica.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 33.—Population
1
and exchange rates used in preparation
135
of table SI
[Available d a t a n e a r e s t t o d a t e of d e b t a n d r e v e n u e d a t a used]
1939
Area a n d c o u n t r y
Population
(in
thousands)
1946
Exchange rate
(cents p e r u n i t of
foreign currency)
Debt
Revenue
Population
(in
thousands)
Exchange rate
(cents p e r u n i t of
foreign currency)
Debt
Revenue
7,300
4,075
10, 425
190
18,100
800
12, 000
250
4,650
413.8
4.06
2.28
4.057
413. 85
403.0
100.0
403.0
403.0
3
413.8
4.115
2.28
4.057
413. 85
403.0
100.0
403.0
403.0
4,060
1,600
1.013
430
5,550
21, 336
1,663
2,231
360
5
61
402.9
100.0
403.0
403.0
4.06
403.0
402.9
402.9
Currency unit
(1939 a n d 1946)
AFRICA
Anglo E g y p t i a n S u d a n
Angola
Belgian Congo
C a p e Verde Islands
v
Egypt
Eritrea
Ethiopia
Gambia
Gold Coast
I t a l i a n E a s t Africa
Kenya
Liberia
Libya
Mauritius
Mozambique
Nigeria
Northern Rhodesia
.Nyasaland
Portuguese C u i n e a
St. H e l e n ; u n d Ascension
Islands.
Sao T o m e a n d P r i n c i p e
Islands.
Seychelles
Sierra Leona
Somaliland (British)
Somalia
S o u t h e r n Rhodesia
S p a n i s h G uinea
Spanish Morocco
S p a n i s h W e s t Africa
Tanganyika
'Tangier
Uganda
U n i o n of S o u t h Africa
Zanzibar..
6,500
3,738
10, 328
174
16, 2522
393.0
3.32
4.038
480.0
2
443.5
3.711
3.40
4.038
480.0
2
200
3,787
12. 200
3,500
1,500
4
393. 0
403.5
5.20
393.0
92.40
4
443.5
426.3
5.20
443.5
92.40
413
5,081
20, 477
1,400
1,680
350
4
403.5
403.5
393.0
393.0
393.0
410.1
4.038
426.3
443.5
443.5
4.06
443.5
31
1,600
350
2
393.0
393.0
393.0
2
443.5
443.5
443.5
2
1,436
163
795
21
5.260
60
3,728
10, 251
403.5
426.3
()
(*)
(2 )
()
()
()
(2 )
()
(*)
60
()
240
()
()
(3)
35
1,769
365
1,255
1,635
170
1,284
37
5,590
125
4,035
11,368
5.60
5.60
393.0
2.51
393.0
398.0
443:5
2.51
443.5
440.0
393.0
443.5
403.5
7.666
35.9
34.6
7.487
22.3
403.5
30.179
403.5
5.84
53.107
648
426.3
8,400
7.666
35.9
17, 700
34.6
6,760
11.879 417,400
25.1
25, 500
426.3
1,072
32.5
310, 625
426.3
4,100
5.45
13, 900
53. 335 72, 000
25.963 67,230
25. 963 19, 369
385
4.038
6,200
443.5
250
()
403.0
4.057
403.0
403.0
. 0)
403.5
100.0
403.0
403.0
4.05
403.0
403.3
403.3
4.057
403.0
4.057
403.0
403.0
9.13
9.13
9.13
402.9
.40
403.0
403.5
403.0
403.0
403.0
403.0
403.0
9.13
9.13
9.13
403.3
.40
403.0
403.5
403.0
403.0
403.5
7.666
30.05
30.05
.030
403.5
7.660
30.05
30.05
.050
403.5
30.12
403.5
3.08
37. 789
r s 6.67
.8 2.00
6.67
403.0
403.5
30.12
403.5
3.08
37.813
[ 6.67
6.67
4.057
403.0
403.0
50.0
4.06
6.67
50.0
403.0
50.0
4.057
23.44
50.0
ASIA
Aden
_.
648
Afghanistan
7,750
Burma
16,824
Ceylon
5,922
•China
|416,100
French Indochina..
23,250
Hong Kong
1,050
286,201
India
Iraq
3,700
Iran
*
12, 672
Indonesia
69.435
Japan
71.253
Korea
24,100
M a c a o (Portuguese)
340
M a l a y a n U n i o n a n d Singa5,416
pore.
Palestine
1,502
Philippines
16,300
Portuguese India
624
•Siam
15, 600
Syria-Lebanon.
3,700
Saudi Arabia..
Transjordan..
Turkey
Albania..
Austria. .
Belgium.
403.5
50.0
36.59
43.0
45.6
426.3
50.0
4.038
43.0
45.6
1,810
18,300
650
15, 717
4,170
4,500
100.0
100.0
5,250
100.0
100.0
309
17,800
403.5
76.0
426.3
76.0
400
19,100
403.5
35.7
403.5
65.9
1,064
6,760
8,396
See footnotes a t e n d of t a b l e , p . 137.
23.441
23.441
32.0
393.0
9
32. 669
18.892
3.379
19.47
18. 916
3.370
1,140
7,000
8,389
10.0
2.280
.361
10.0
2.283
Egyptian pound.
Angolar.
Belgian franc.
Escudo.
Egyptian pound.
Pound.
U n i t e d States dollar.
Pound.
Do.
Lira.
Pound.
L i b e r i a n dollar.
Pound.
Do.
Escudo.
Pound.
Do.
Do.
Escudo.
Pound.
Escudo.
Pound.
Do.
Do.
Do.
Do.
Peseta.
Do.
Do.
Pound.
F r e n c h franc.
Pound.
S o u t h African
pound.
Pound.
Pound.
Afghanistan rupee.
Indian rupee.
Rupee.
Dollar ( C N ) .
Piaster.
Pound.
Rupee.
Dinar.
Rial.
Guilder.
Yen.
Yen.
Escudo.7
Pound.
Palestine pound.
Peso.
Escudo. 8
Bant.
Syria-Lebanon
pound.
U n i t e d S t a t e s dollar.
Pound.
Turkish pound.
Franc.
Schilling.
Franc.
136
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 33.—Population 1 and exchange rates used in preparation
of table
31—Con.
[Available data nearest to date of debt and revenue data used]
1939
Area and country
Population
(in
thousands)
1946
Exchange rate
(cents per unit of
foreign currency)
Debt
Population
(in
thouRevenue sands)
Exchange rate
(cents per unit of
foreign currency)
Debt
Currency unit
(1939 and 1946)
Revenue
EUROPE—continued
Bulgaria
>
Czechoslovakia..,
Cyprus
Denmark
;
Eire
Finland
France.Germany
Gibraltar
-.
Greece
-•
Greenland
Hungary
,
Iceland
Italy
Luxembourg
Malta
Netherlands
Norway
Poland
Portugal (including Azores
and Madeira).
Rumania
Spain
Sweden
Switzerland
United Kingdom
U. S. S. R
Yugoslavi?
6,620
14,603
380
3,777
2,934
3,702
41,100
69. 317
20
7,201
1.211
3.422
467.032
20. 912
468. 538
1.814
2.614
.716
18
9,106 i° 19. 613
120
15. 448
5.260
44,213
3.369
300
269 403.5
8,334
53.208
2,929
23. 524
34, 849
18. 909
' 7, 722
3.604
19, 934
25, 774
6,341
4,206
47, 761
172, 000
15,703
1.211
3.467
443. 539
21. 825
443. 539
1.995
2.510
40.164
443. 539
.815
20. 346
io 19.238
15.448
5.261
3.370
443. 539
55. 335
23.226
18.860
4.038
.80
7,022
.350
2.006
2.006
13, 047
449 403. 37 403.28
20.877
20.876
4,102
2,953 403. 38 403. 28
. 7353
.735
3,877
.841
.841
39, 600
65,891
403. 28
21
. .02
7,450
.02
20. 876
20
8.58
8.58
9,309
130
15.45
15.45
.237
45, 646
.253
280
2.280
2.283
285
403.28
37. 788
9,421
37.813
20.197
3,040
20.176
1.0
23, 625
4.05
4.05
8,223
7711 16, 472
.714
. 00281
. 0029
10. 039
9.322 26, 992
9.132
9.132
23. 796 23. 99
27. 821
25. 859
6,764
22. 422 22. 525
23. 636
23. 636
4,450
403.5
403. 28
443. 539 49,226 402. 73
18 867
18. 867
18. 867 191,500
18.867
2.278
.. 2
2."312 15, 400
Lev.
Koruna.
Pound.
Crown.
Pound.
Markka.
Franc.
Reichsmark.
Pound.
Drachma.
Crown.
Forint.
Crown.
Lira.
Franc. •
Pound.
Guilder.
Krone.
Zloty.
Escudo.
Leu.
Peseta.
Krona.
Franc.
PoundRuble.
Dinar.
LATIN AMERICA
Central America and Mexico:
59
British Honduras
639
Costa Rica
Guatem ala
Honduras
1,108
975
Nicaragua
Panama
550
El Salvador
1,744
Mexico
19, 413
South America:
Argentina
13,132
3,352
Bolivia.,
Brazil
_ _. 40, 259
311
British Guiana
4,677
Chile
8,973
Colombia
2,923
Ecuador
3
Falkland Islands
(12)
French Guiana
988
Paraguay
6,102
Peru
178
Surinam
2,135
Uruguay
.3, 512
Venezuela..
West Indies and Bermuda:
British West Indies:
Bahamas
Barbados.
_.
196
Bermuda
32
Cayman Islands
7
Jamaica
1,174
Leeward Islands
93
Trinidad and To473
bago
Turks and Caicoa
5
Isles
Windward Islands..
277
See footnotes at end of table, p. 137.
393:0
17. 825
100.0
50.0
20.0
100.0
40.0
20.0
443.5
17. 825
100.0
50.0
20.0
100.0
40.0
19. 303
59
772
3,706
1,201
1,082
632
1,997
22, 753
403.5
17. 825
100.0
50.0
20.0
100.0
40.0
20. 618
31. 2167J 30. 8504 16,108
29. 773
2.3809
2.76
3.916
3,723
5. 4053
6. 05761 6. 0027 j46, 726
393.0
443.5
376 403.5
3. 2258
5.1705
5.1727| 5,479
57.0217 57.0608 10,350
57.140
3,350
6.67
6.65
6.743
3
443.5
403.0
17. 825
100.0
50.0
20.0
100.0
40.0
20. 618
Pound.
Colon.
Quetzal.
Lempira.
Cordoba.
Balboa.
Colon.
Peso.
29. 773
2. 3801
5.34
403.5
3.2258|
b7. 306
6.818
403.0
Do.
Boliviano.n
Cruzeiro.
Pound.
Peso.
Do.
Sucre.
Pound.
32.365
15. 384
53.158
65.830
30. 303
Guarani.i3
Sol.
>d
Guilder.
Peso.
Bolivar.
(12)
.003
17.52
53.128
65.830
32. 362
393.0,
403.5
393.0
(14)
468.5
393.0
85.00
393.0
49. 908
17.301
53.128
62. 011
31. 546
443.5
393.0
443.5
393.0
480.5
443.5
85.00
443.5
443.5
1,165
6,838
181
2,946
4,300
P
35
7
1,326
109
557
6
252
32.365
15.384
53.158
65.830
30.303
403.5
403.
403.5
403.5
403.5
40.3.5
84.00
403.
403.5
403.
403.
403.5
403.5
403.
84.00
403.
403.
Pound.
Do.
Do.
Do.
Do.
Do.
Trinidad dollar^
Pound.
Do.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES 1 3 7
T A B L E 33.—Population 1and exchange rates used in preparation
of table
81—Con.
[Available data nearest to date of debt and revenue data used]
1939
Popu
lation
(in
thousands)
Area and country
1946
Exchange rate
(cents per unit of
foreign currency)
Debt
Population
(in
thousands)
Revenue
Exchange rate
(cents per unit of
foreign currency)
Debt
Currency unit
(1939 and 1946)
Revenue
LATIN AMERICA—continued
West Indies and B e r m u d a Continued
Cuba
Dominican Republic
French West Indies:
Guadalupe
Martinique
Haiti
Netherlands West Indies:
Curacao
4,253
1,690
100.00
100.00
304
247
2,600
20.00
2. 5103
2.878
20.00,
53.00
53.00
90.909
90.099
96.018
99.773
12,307
318
7,414
280
10
259
35
50
1,793
373.0
403.0
403.0
403.0
403.0
403.0
325.0
372.0
403.0
403.0
403.0
403.0
403.0
325.0
94
475
5^0
40
403.0
403.0
4.057
403.5
403.0
403.0
4.057
403.5
4.5103
N. A,
100.00
100.00
5,052
2,029
335
262
3,000
100. 00
100. 00
100.00
100.00
Peso.
United States dollar.
1.782
2,0
20.00
N. A.
20.00
French franc.
Do.
Gourde.
53.00
53.00
Guilder.
100. 00
90.909
95.198
95.198
Dollar.
Do.
.843
N O R T H AMERICA
Canada
Newfoundland
...
11,267
291
OCEANIA
Australia
1
British North Borneo
Brunei
Fiji (British)
Gilbert and Ellice Islands.. _
New Hebrides
New Zealand
Solomon Islands.
Sarawak
Timor
__
Tonga
6,997
302
37
211
35
43
1,634
323.7
393.0
393.0
393.0
403.5
393.0
301.0
324.0
443.5
443.5
443.5
410.1
443. 5 '
343.0
94
443
480
34
403.5
393.0
3.604
403.5
426.3
443.5
4.038
410.1
Australian pound*
Pound.
Do.
Do.
Do.
Do.
New
Zealand
pound.
Pound.
Do.
Escudo.
Pound.
i Main sources for population: 1939, United Nations, Monthly Bulletin of Statistics, September 1947
p. 21, table 1; 1946, State Department, World Population Estimates, March 1947.
Included in Italian East Africa.
3
See Eritrea, Ethiopia, and Somalia.
4
Provinces
incorporated in territory of Italy.
6
External.
6
Internal.
7
The unit of currency in 1939 for debt is pataca.
8
The unit of currency in 1939 for debt is rupee.
9
Albanian
debt is in gold francs; revenue is in paper francs.
10
Unit of currency for 1939 is pengo.
11
The
unit
of currency in 1939 is milreis.
*23 Not available.
1u The unit of currency in 1939 for debt is paper pesos and for revenue gold pesos.
See Jamaica.
AVERAGE INTEREST RATE FOR FOREIGN GOVERNMENT BORROWING
Comparable data regarding interest rates effective in foreign
countries are not available. I n most countries current borrowing
has been primarily in the form of advances from the central bank or
intergovernmental. Loans of either of these two types would not be
indicative of the real cost of money to the foreign country. A better
indication of the real cost is given by current yields on foreign government bonds in those countries' domestic markets as calculated and
published by the United Nations Statistical Office. Table 34 attached presents such yields.
69140—48
10
138
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
'TABLE
34.— Current
yields of foreign government bonds, as of August 194.7
Area and countryAfrica:
Egypt...
Union of South Africa.
Asia: India
Europe:
Belgium
Denmark
France
Italy
Netherlands
Norway
Portugal
Sweden
Switzerland
United Kingdom
Latin America:
South America:
Chile
Colombia
Uruguay
Brazil
North America: Canada
Oceania:
Australia
New Zealand..
__
Remarks
Yields
_
..
._
Percent
2.67
2.62
2.29
Vyi percent bonds.
3 percent bonds, 1951-56.
3 percent bonds, 1951-54.
3.28
3.60
4.00
4.60
2.99
2.49
3.10
3.02
3.13
2.99
3 percent irredeemable bonds.
?>Yi percent irredeemable bonds.
3 percent irredeemable bonds.
33^ percent irredeemable bonds.
3 percent state loan bonds.
2M percent bonds.
8.33
7.31
4.49
6.47
2.55
7 percent bonds.
6 percent bonds.
3 ^ percent funded debt bonds.
5 percent bonds.
15-year bonds.
3.18
12-year bonds. Estimated from securities maturing in 10 or more years.
3H percent bonds, 1953-57.
3.00
3 percent bonds, 7 loans.
Yield of 12 loans.
2H percent bonds.
Source: Monthly Bulletin of Statistics, Statistical Office of the United Nations, September 1947, pp.
117-118.
EFFECT
OF T H E
WAR
ON T H E
PUBLIC
DEBT
OF THE
UNITED
STATES
The public debt of the United States has been defined for the
purposes of this report as (1) the gross debt of the Federal Government
including guaranteed obligations not owned by the United States
Treasury and (2) the net interest-bearing debt of State and local
governments. (See table 35, footnotes 1 and 2.) Gross debt data
for State and local governments comparable to the gross debt figures
of the Federal Government are not available.
I t should be noted that the total public debt in the United States
includes Government securities owned by Federal agencies and
trust funds, and by trust and investment funds of State and local
governments. The holdings of these agencies and funds amounted
to $40,800,000,000 on June 30, 1947. These holdings have not been
deducted from the total public debt as they represent assets accumulated for specific purposes. Consequently, they should not be
considered as an offset against the public debt in the sense that
securities held in sinking funds are an offset. Securities held in
sinking funds of State and local governments have been excluded
from the net interest-bearing debt of State and local governments,
and, therefore, are not included in the totals.
Size of the public debt
The total public debt of the United States—Federal, State, and
local—increased by $209,400,000,000 from June 30, 1939, to June 30,
1947. The debt of the Federal Government increased $212,500,000,000 during this period, reflecting the cost of the war which was borne
almost entirely by the Federal Government. However, the Federal
debt reached a high of $279,800,000,000 on February 28, 1946, and
by June 30, 1947, had been reduced $21,400,000,000 as a result of
drawing down the general fund balance of the Treasury from wartime
to peacetime levels and of a surplus of $754,000,000 for the fiscal
year 1947.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 35.—Total public debt of the United States outstanding,
June 30, 1939-June 30, 1947
classified by
139
issuer,
[Billions of dollars]
United
States i
Date
J u n e 30—
1939
1940
1941
1942
1943
1944..
1945
1946
1947
_
._
-.
_.
45.9
48.5
55.3
77.0
140.8
202.6
259.1
269.9
258.4
State and
local 2
17.7
18.1
18.1
17.6
16.4
15.1
14.2
13.6
14.6
Total 3
63.6
66.6
73.4
94.6
157.2
217.7
273.3
283.5
273.0
H e l d b y governmental
funds 4
8.5
10.0
11.9
14.3
18.3
24.2
31.5
36.4
40.8
1
Gross debt, including guaranteed obligations not held by the United States Treasury; gross debt consists
•of interest-bearing debt, matured debt on which interest has ceased, and debt bearing no interest. Source:
Treasury Bulletin, July 1947, p. 20: Daily statement of United States Treasury, July 1, 1947.
2 Interest-bearing debt less amount of interest-bearing securities issued by Federal, State, and local governments held in sinking funds of States, localities, Territories, and possessions. (The small amount of
securities held in sinking funds of Territories and possessions is included.) There is only a very small amount
of non-interest-bearing debt of State and local governments outstanding. Source: Annual Report of the
Secretary
of the Treasury for the fiscal year ended June 30,1947.
3
Including obligations of Federal, State, and local governments held by Federal agencies and trust funds
and
by
trust
and investment funds of States, localities, Territories and possessions.
4
Obligations of Federal, State, and local governments held by Federal agencies and trust funds and by
trust and investment funds of States, localities, Territories and possessions. Does not include securities
held in sinking funds. Source: Annual Report of the Secretary of the Treasury for the fiscal year ended
June 30, 1947.
The debt of State and local governments, however, decreased
3.1 billion dollars from the end of June 1939 to the end of June 1947.
The decrease in State and local debt resulted Irom increased revenues of
these governmental units and from the postponement of State and
local expenditures for some functions, such as public works.
Ownership oj the public debt
Through an intensive sales effort and the use of savings bonds and
other bank-restricted securities, it was possible to achieve a wide distribution of the Federal debt among various classes of investors.
Table 36 shows the estimated ownership of all interest-bearing securities of Federal, State, and local governments in the United States.
The reduction effected in the Federal debt by drawing down the
Treasury balance from wartime to peacetime levels, has been concentrated in bank-held debt. As a consequence, the proportion of
the interest-bearing Federal debt in the hands of nonbank investors
was 64 percent on June 30, 1947, compared with 60 percent on June
30, 1946, and on June 30, 1939.
Rate oj interest on the public debt
Although the war resulted in a large increase in the debt of the
Federal Government, this debt was financed at a decreasing rate of
interest (table 37). The computed average rate of interest on the
direct and guaranteed interest-bearing debt of the Federal Government was 2.107 percent on June 30, 1947, although all except a very
small amount of the public debt outstanding was taxable. On June
30, 1939, the computed average rate of interest was 2.53 percent; at
that time interest on all of the debt was exempt from the normal tax
and a part of it from the surtax. The lowest computed average
interest rate was 1.92 percent at the end of December 1944.
140
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
The recent increase in the average rate of interest on the public
debt has resulted principally from a shift from short-term to longterm securities concurrent with the reduction in bank-held debt.
Recent issues of Treasury bills, certificates of indebtedness, and
Treasury notes have been sold at higher interest rates, although the
rate on long-term Government bonds, except for savings bonds, has
remained at 2.50 percent, as pointed out in the reply to item 14.
T A B L E 36.—Estimated ownership of all interest-bearing securities issued by governmental units in the United States June 30, 1989-June 30, 1947
[Par value. 1 Billions of dollars]
Held by nonbank investors
Held by banks
Date
June 30—
1939,,..
1940
1941
1942
1943
1944
1945
1946
1947
Total
amount
outCom- Federal
stand- Total mercial
Reserve Total
ing
banks banks
65.1
67.9
74.8
96.0
158.0
218.3
273.2
284.3
271.8
21.1
22.2
25.6
32.3
62.9
86.8
109.8
112.3
96.9
18.5
19.7
23.4
29.6
55.7
71.9
88.0
88.5
75.0
2.6
2.5
2.2
2.6
7.2
14.9
21.8
23.8
21.9
Individuals 2
43.9
18.3
45.7
17.9
49.2
18.8
63.7
25.5
95.0 ^ 37.8
131.5
52.2
163.4
65.4
172.0
69.7
174.9
72.9
U.S.
Other
GovInsur- Mutual corpo- State
ernand
ance savings rations local
ment
com- banks and as- govern- agenpanies
socia4 cies and
tions 3 m e n t s
trust
funds
7.9
8.7
9.3
11.4
14.8
18.9
24.1
26.5
20.1
3.6
3.7
3.9
4.3
5.5
7.5
9.7
11.6
12.2
3.8
3.7
3.5
6.5
16.6
26.8
30.6
25.9
20.9
4.1
4.2
4.5
4.7
5.3
6.6
8.2
8.9
9.5
6.4
7.6
9.2
11.4
14.9
19.7
25.4
29.6
33.3
Figures are rounded and will not necessarily add to totals.
i Figures represent par values with the following exceptions: (1) The holdings of commercial and mutual
savings banks of State and local governments, Territories, and possessions are book values, (2) the holdings
of these securities by individuals are residuals, and so deviate from par values in those cases where the figures
for commercial and mutual savings banks are book values, (3) in the case of data which include United States
savings
bonds series A-D, E, and F, the figures for these bonds represent current redemption values.
2
Includes partnerships and personal trust accounts.
3 Includes savings and loan associations, dealers and brokers, and investments of foreign balances in this
country.
4
Comprises trust, sinking, and investment funds of State and local governments, territories, and possessions.
Source: Annual Report of the Secretary of the Treasury for the fiscal year ended June 30,1947.
AVERAGE INTEREST RATE FOR UNITED STATES GOVERNMENT BORROWING
The computed average interest rate on the outstanding direct and
guaranteed public debt of the United States on June 30, 1947, was
2.107 percent.
At the present time there are four issues of securities continuously
on sale by the Government. These are series E, F , and G savings
bonds and Treasury savings notes, series C. Series E savings bonds
yield 2.9 percent, if held 10 years to maturity; series F a n d G savings
bonds yield 2.53 percent and 2.50 percent, respectively, if held 12 years
to maturity; Series C savings notes yield 1.07 percent, if held 3 years to*
maturity.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES 1 4 1
The rate of interest paid on other securities issued b y the United
States varies with the term and maturity of the issue. Ninety-day
Treasury bills are offered weekly. The issue dated December 4,
1947, sold at an average discount rate of 0.944 percent. The issue
of Treasury notes, dated December 1, 1947, is a l}£-pereent, 13-month
security. From September 29 through October 8, 1947, the Treasury
Department offered a 2%-percent Treasury bond, investment series
A-1965, at 100 to institutional investors holding savings, insurance,
and pension funds, and commercial banks holding savings deposits.
T A B L E 37.—Yields on United States Government securities June 30, 1939-June
1947
State a n d
local
United States
Date
Treasury
bills i
J u n e 30:
1939
1940
1941
1942
1943
0.005
.046
.066
.362
.374
Longterm
bonds 2
Computed
average
r a t e of
interest3
Municip a l b o n4 d
yield
Percent
2.22
2.40
2.01
2.43
2.45
Percent
2.53
2.51
2.44
2.26
1.98
2.58
2.68
2.05
2.28
1.95
State a n d
local
United States
Date
Treasury
bills i
J u n e 30:
1944
1945
1946
1947
Longterm
bonds 2
Percent'
2.49
2.35
2.16
2.22
0.375
.375
.375
.376
S0>
Computed
Municiaverage pal b o n d
yield *
r a t e of
interest3
Percent
1.92
1.94
2.00
2.11
1.80
1.54
1.56
1.84
1
2
Average discount rate on last issue of Treasury bills sold prior to June 30.
Monthly average yield on Treasury bonds having 15 or more years to earliest call date. Yields for 1939,
1940, and 1941 are for partially tax-exempt bonds; for 1942 and subsequent years, the yields are for taxable
bonds.
3
Computed average annual interest rate on total direct and guaranteed interest-bearing debt outstanding
on4 June 30.
Dow-Jones twenty 20-year municipal bonds. Yields for 1939 and 1940 are for the last Saturday in June
and for 1941-47 are for the last Friday in June.
Source: Discount rates on Treasury bills from Annual Reports of the Secretary of the Treasury; yields
on long-term Treasury bonds and computed average rates of interest from the Treasury Bulletin; and
municipal bond yields from the Dow-Jones averages, published by Barron's Financial Weekly.
T A B L E 38.—Total Government
receipts in United States,
1939 and
1946
[Millions of dollars]
1939
-Federal: i
T a x collections
O t h e r receipts 2 . .
T o t a l F e d e r a l receipts
State and local:3
T a x collections.2 _l
O t h e r receipts
T o t a l S t a t e a n d local receipts
T o t a l F e d e r a l , S t a t e a n d local r e c e i p t s . - .
_
1946
5,484
184
40,767
3.471
5,668
44,239
7,899
762
10,470
922
8,661
11,392
14,329
55,631
i For fiscal years ending June 30.
A separate classification of receipts from Government enterprises is not available.
For calendar years.
Source: Federal Government: Annual Report of the Secretary of the Treasury for the fiscal years ended
June 30, 1939 and June 30, 1946. State and local: National Income, Supplement to Survey of Current
Business, July 1947.
2
3
CHAPTER V. B A L A N C E OF P A Y M E N T S OF T H E UNITED^
STATES
In this chapter material concerning balance of payments or aspects
thereof, has been assembled. The data are in reply to two questions
contained in Senate Resolution 103, namely:
Item 9. So far as possible, the total value of American goods exported and
services performed for foreigners, excluding reexports and financial and security
transfers, annually from 1914 to 1946; together with the corresponding items
supplied by foreigners to the United States in the same period.
Item 15. An estimate year by year of the probable expenditure of foreign
countries for American goods and services as a result of the loans, credits, grants,
and other forms of financial aid, contracted with this country publicly or privately
since VE-day.
A discussion of item 9 and a presentation of data on United States
exports and imports in the years 1914, 1932, 1939, and 1946 appear in
section A. Section B covers a discussion of item 15 and supplies
data relative to private United States lending abroad, and section C
gives certain supplemental data regarding postwar lending by foreign
countries.
A. BALANCE OF PAYMENTS OF THE U N I T E D STATES
Table 39, which follows, shows, as item I A, total goods exported
and services performed for foreigners in the respective years or periods,
while item I I A represents the corresponding items supplied by foreigners to the United States. More specifically, goods and services
include all exports or imports of movable goods and so-called invisible
items. The latter include shipping, travel, insurance, rents and
royalties, property income (interest, dividends, and profits) and
others. Exports are credits (or receipts) since in each case the country is giving up an asset; contrariwise, imports (payments) are debits
because the country is acquiring an asset.
Items I B and C, I I B and C, and IV represent the financial and
security transfers which served to finance the net surplus of exports
or imports of goods and services. Items I B and I I B cover unilateral
transfers, or gifts, contributions, and other transfers of value not
involving a quid pro quo in the form of goods, services, gold, or
capital assets. Under this heading are included not only cash gifts,
such as immigrant remittances, but also the value of gifts in kind,
such as U N R R A or lend-lease shipments. Thus unilateral transfer
debits (or payments) reflect the value of all gifts, contributions, and
similar items to foreign countries, whether in cash or other capital
claims, or in the form of goods or services.
Items I C and I I C, long-term capital movements, represent shifts
in capital claims, of indefinite maturity or of a maturity of more than
one year. They include not only securities (stocks, bonds, mortgages,
etc.) but real property (farms, branch factories, and real estate).
Real property purchased by the Government for its own use, how142
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
143
ever, has- been included in services, while all expenditures of religious
and charitable institutions are included in unilateral transfers, even
if they involve the purchase of fixed assets.
Investments of the United States abroad are assets; foreign investments in the United States are liabilities. The principle for determining credits or debits has already been stated.
Item IV, short-term capital and gold, includes all capital movements other than long-term, i. e., movements of bank deposits and
other claims payable on demand or with an original maturity of. less
than 1 year. Until 1919 the gold entry in the balance of payments
was the net international movement of gold in all its forms. Beginning in 1919, however, the gold entry is the net change in the monetary
gold stock, including stabilization fund holdings. Thus the gold
stock is considered a special kind of international asset, all increases
in which are debited and decreases credited in the balance-of-payments
statement. Offsetting entries occur in the merchandise account:
If the gold stock, increases because domestic production exceeds
domestic nonmonetary use, such excess is treated as an export or
credit; if domestic consumption exceeds production, the excess is
treated as an import and may be considered to be that part of the
imported gold used as merchandise and not added to the gold stock.
This was the case in the years 1943-46. The algebraic sum of the
merchandise entry and the monetary gold entry, it should be noted,
still equals the net international gold transactions.
TABLE 30.—International transactions of the United States, 1914-i9Jft
[In millions of dollars]
Item
I. Receipts, total
-..
A. Goods and services, total
1. Goods
2. Income on investments
3. Other services.
B. Unilateral transfers
C. Long-term capital, total
1. Movements of United States capital invested abroad
2. Movements of foreign capital invested in United States
II. Payments, total
A. Goods and services, total
1. Goods
_
2. Income on investments
3. Other services
B. Unilateral transfers
C. Long-term capital, total
1. Movements of United States capiital invested abroad
\_
2. Movements of foreign capital invested in United States
III. Excess of receipts (+) or payments (—), total
A. Goods and services
B. Unilateral transfers
Net goods and services and unilateral
transfers
C. Long-term capital
IV. Net inflow (+) or outflow (—) of funds on gold
and short-term capital account, total
A. Net increase (—) or decrease (+) in United
States gold stock
B. Net movement of United States shortterm capital abroad
C. Net movement of foreign short-term
capital in United States
V. Errors and omissions
July 1,
1914Dec. 31,
1918
25,232
24, 793
22,974
900
919
312
127
3
W
1919
1920
1921
1922
1923
1924
1925
H
1926
M
O
11,464
10, 784
8,891
719
1,174
276
404
10,983
10, 272
8,481
596
1,195
66
645
5,920
5,512
4,586
445
481
60
348
404
645
332
166
16
4,869
3,391
2,572
105
714
568
910
27
5,358
3,972
3,184
105
683
409
977
5, 219
4,961
3,929
670
362
65
193
7,058
6,464
6,344
5,919
4,741
762
416
72
353
6,964
6,348
5,011
912
425
47
569
7,038
6,381
4,922
953
506
61
596
173
148
248
481
358
5,567
4,668
3,866
130
672
414
485
205
6,029
4,577
3,684
140
753
427
1,025
321
6,823
5,272
4,291
170
811
439
1,112
115
4,500
200
864
433
1,292
7,333
5,400
4,240
240
920
418
1,515
6,090
5,494
4,259
840
395
65
531
4,982
981
501
70
524
524
127
26, 250
14, 022
11,166
540
2,316
711
11, 517
10, 352
5,917
3,995
130
1,792
1,319
3,116
9,146
6,750
5,384
120
1,246
744
1,652
9,205
2,901
1,374
957
465
1,005
1,092
1,272
1,465
2,312
-1,018
+10,771
215
+1,112
+4, 867
-1,043
278
+1, 837
+3, 522
-678
20
+1.051
+2,121
-508
20
-139
-344
20
+523
+826
-349
20
+315
+1, 342
-355
20
+141
+1,076
-392
20
-251
+817
-372
50
-275
+1, 064
-348
+10, 372
-11,390
+3,824
- 2 , 712
+2, 844
-1,007
+1,613
-562
+645
-784
+477
+46
+987
-672
+684
-543
+445
-696
+716
-991
-1,039
+166
+68
-269
-137
-6
+326
-1,044
+166
. +68
-269
-256
+100
7,289
5,564
>
Ul
W
M
tr1
W
o
W
d
M
-315
+113
+5
-82
-109
-46
-36
-349
+2, 057
+49
-175
+228
-178
-60
-135
+455
-75
+934
-423
-1,278
-1,905
+408
O
CO
H
>
00
Item
I. Receipts, total
A. Goods and services, total..
_.
1. Goods
2. In come on investments
3. Other services . _
B. Unilateral transfers
0 . Long-term capital, total..
1. Movements of United States capital invested abroad
2. Movements of foreign capital invested in United States
II. Payments, total
___ _ . . . .
A. Goods and services, total
1. Goods
2. Income on investments
3. Other services
_
B. Unilateral transfers
_.
C. Long-term capital, total
_
1. Movements of United States capital invested abroad
2. Movements of foreign capital invested in United States
III. Excess of receipts (+) or payments (—), total
A. Goods and services.
B. Unilateral transfers
Net goods and services and unilateral
transfers
_
C. Long-term capital
__ .
IV. Net inflow (+) or outflow (—) of funds on gold
and short-term capital account, total
A. Net increase (—) or decrease (+) in
United States gold stock
B. Net movement of United States shortterm capital abroad
C. Net movement of foreign short-term
capital in United States
V. Errors and omissions
1928
7,815
6,850
5,249
1,080
521
72
893
1929
7,929
7,042
5,347
1,139
556
78
809
1930
1931
1933
1932
1934
1935
6,376
5,450
3,929
1,040
481
58
868
4,324
3,641
2,494
766
381
36
647
2,841
2,474
1,667
527
280
17
350
2,754
2,402
1,736
437
229
17
335
3,214
2,975
2,238
437
300
20
219
1937
1936
3,840
3,265
2,404
521
340
21
554
4,412
3,539
2,590
569
380
22
851
5,131
4,553
3,451
577
525
29
549
410
431
782
561
350
155
219
219
236
289
483
7,601
5,483
4,159
275
1,049
427
1,691
378
7,398
5,904
4.463
330
1,111
445
1,049
' 86
5,907
4,428
3,104
295
1,029
390
1,089
86
3,912
3,137
2,120
220
797
' 343
432
2,415
2,079
1,343
135
601
243
93
180
2,487
2,056
1,510
115
431
213
218
2,615
2,384
1,763
135
486
182
49
335
3,458
3,157
2,462
155
540
183
118
615
3,728
3,455
2,546
270
639
199
74
260
4,548
4,268
3,181
295
792
252
28
1,671
1,029
1,069
412
67
203
34
103
59
13
20
+469
+1,022
-332
20
+412
+504
-307
26
+426
+395
-226
15
+227
+346
-196
15
+629
+591
-162
15
+382
+108
-162
15
+684
+84
-177
15
+583
+285
-223
+197
+215
+169
+150
i -177
+429
1+200
-54
+436
-93
+62
+521
20
+214
+1,367
-355
20
+531 /
+1,138
-367
+1,012
+771
-240
+690
-221
-147
-789
-504
-143
-310
+133
-200
-191
+628
+196
-384
-288
+320
-1,265
+92
-798
-110
+238
-231
-117
-104
+257
-499
-53
+227
-673
+73
-288
-1,044
-750
+131
-1,266
-1,822
+35
+96
+424
-454
+61
+126
+415
+648
+368
+777
r 841
-1,272
+55
+376
+157
-1,008
-1,364
+45
+311
+425
i The net long-term capital transactionsfigurefor 1933 includes $40,000,000, and that for 1934 includes $30,000,000 representing the net transfer of funds in security arbitrage operations. These transactions cannot be divided between domestic and foreign securities in these years,
GO
•3
TABLE 39.—International transactions of the United States, 1914-19%1—Continued
OS
[In millions of dollars]
Item
I. Receipts, total
A. Goods and services, total..
___
1. Goods
2. Income on investments
3. Other services
B. Unilateral transfers
C. Long-term capital, total
1. Movements of United States capital invested abroad
2. Movements of foreign capital invested in United States
II. Payments, total
A. Goods and services, total
1. Goods
2. Income on investments
3. Other services
B. Unilateral transfers
C. Long-term capital, total
1. Movements of United States cap• ital invested abroad
2. Movements of foreign capital invested in United States
III. Excess of receipts (+) or payments (—), total
A. Goods and services
B. Unilateral transfers
Net goods and services and unilateral transfers
C. Long-term capital
IV. Net inflow (+) or outflow ( - ) of funds on gold
and short-term capital account, total
A. Net increase (—) or decrease (+) in
United States gold stock
B. Net movement of United States shortterm capital abroad
O. Net movement of foreign short-term capital in United States
V. Errors and omissions
1940
1938
1941
1942
JanuaryJune 1947
1944
1943
4,551
4,336
3,243
585
508
40
175
4,636
4,432
3,347
541
544
38
166
5,780
5,355
4,124
564
667
59
366
7,210
6,896
5,343
544
1,009
43
271
103
166
209
193
219
402
406
157
4,344
3,636
2,713
210
78
6,578
4,486
3,486
187
813
1,179
913
87
13,159
5,356
3,965
159
1,232
7,338
465
43
23, 732
8,096
5,427
155
15,044
592
234
26,154
8,986
5,589
161
3,236
16,549
619
72
3,345
3,056
2,173
200
683
211
78
3,721
3,377
2,409
230
738
205
139
63
713
269
439
13, 077
11, 769
9,187
514
2,068
1,002
306
21, 716
19,134
15,115
508
3,511
2,137
445
2,514
24, 485
21,438
16, 969
572
3,897
2,407
640
19, 249
16, 073
12, 222
555
3,296
2,591
585
16, 474
15, 264
12,140
611
2,513
219
991
10,872
9,927
8,301
391
1,235
324
621
555
990
614
30
21, 009
9,424
5,829
168
3,427
9,628
1,957
1
14, 793
7,131
5, 264
* 173
1,694
3,329
4,333
7
11, 431
4,002
3,025
97
880
1,550
5,879
>
GO
>'
a
53
192
294
486
560
1,803
3,992
5,807
w
15
+1, 206
+1, 280
-171
405
+632
+2, 410
-1,136
171
-82
+6,413
-6,336
106
- 2 , 016
+11,038
-12,907
59
- 1 , 669
+12,452
-14,142
154
- 1 , 760
+6,649
- 7 , 037
341
+ 1 , 681
+8,133
-3,110
72
-559
+5, 925
-1,226
Ui
+915
+1, 055
-167
247
+1,436
+ 1 , 719
-210
+1,109
+97
+888
+27
+1, 509
-73
+1, 274
-642
+77
-159
-1,869
-147
- 1 , 690
- 1 , 372
+5,023
-v3, 342
+4, 699
- 5 , 258
W
- 1 , 455
-1,704
—2,713
-1,108
+90
+1,982
+1, 888
- 1 , 799
+171
-1,799
-3,174
-4,243
-719
+23
+757
+548
-623
-711
-313
-293
-457
+1, 653
-128
-883
+118
+1, 339
+388
+27
+211
+177
+11
-115
+3
+317
+249
+1,259
+789
+1,353
+1,277
-400
+476
+182
+1,222
+34
+21
+1, 706
+1,350
-153
+509
-37
Source: International Economics Division, Office of Business Economics, Department of Commerce, Data regarding the period July 1,1914-Dec. 30,1918, were rearranged from
the Review of Economic Statistics, Supplement, Preliminary Vol. 3, June 1921, p. 201.
3
O
d
d
H
H
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
T A B L E 40.—Reexports of foreign merchandise from the United States,
147
1914-46
[In millions of dollars]
_.v329.1 1928
1914-18
1919...
170.6 1929
- 147.5 1930
1920.
1921
.- 106.1 1931
1922
66.7 1932
1923
76.8 1933
93.3 1934
1924
91.1 1935
1925
96.9 1936
1926
1927
106.5 1937
Source: Department of Commerce.
98.2
83.9
62.0
46.3
34 9
27.8
32.7
39.8
37.0
50.2
1938
1939
1940
1941
1942
1943
1944
1945
1946
....
37.3
53.8
87.0
127.2
75.9
123.4
97.1
217.4
237.0
Reexports of foreign merchandise
Reexports of foreign merchandise are included in item I A - l , but
are offset by also being included in imports, item I I A - l . The
amounts involved in the respective years are shown in table 40.
Reexports are exports of goods of foreign origin which have not
been changed in form or value during their stay in this country.
Such goods would have been entered into the import statistics and
again in the export statistics, in the latter case classed as reexports.
Exports of sugar of Cuban origin, which has been further refined in
this country, would be changed in value and therefore classed as
exports of domestic products. On the other hand, Canadian wheat
passing through this country en route to Europe would be considered
as intransit trade and not entered in either the import or the export
statistics. Often nondutiable goods merely passing through the
country are included in the statistics as imports and as reexports.
Tables 41 and 42, which follow, contain data regarding total United
States exports and imports for the years 1914, 1932, 1939, and 1946
and similar data by economic classes for the years 1932, 1939, and
1946.
TABLE 41.— Jjnited States exports* by commodity groups and countries—^1914, 1932, 1939, and 1946
00
[NOTE: The grand total and continent totals include countries not shown. Data by commodity groups not available for 1914]
[Value in thousands of dollars]
T o t a l exports of U n i t e d States m e r c h a n d i s e
Animals and animal products,
edible
Animals and animal products,
inedible
1932
1932
Country
Total
N o r t h e r n N o r t h America
C a n a d a .__ ._Newfoundland a n d Labrador
S o u t h e r n N o r t h America
.
.__
Mexico
Guatemala
E l Salvador
Honduras
Nicaragua...
C o s t a Rica
P a n a m a , R e p u b l i c of
P a n a m a , C a n a l Zone
Cuba
Haiti
Dominican Republic
Curacao (N e t h e r l a n d s W e s t Indies)
S o u t h America
*
-
__
_.
__
- -
Colombia
Venezuela
Ecuador
Peru
Chile
---
a
1914
1932
1939
1946
2,329, 684
1, 576,151
3.123, 343
9, 499, 520
69, 554
75, 593
936,207
36,195
43, 598
335, 615
232,817
478,255
1, 437,215
2,309
6,674
10,327
5,229
9,253
24,138
i-3
Co
329, 791
5,697
228,438
4,097
468, 907
8,774
1, 404, 683
* 20,121
1,502
800
5,440
1,225
8,293
1,965
5,078
141
9,005
226
23,154
545
>
i 174. 350
i 118, 040
299, 973
1, 054, 364"
»10, 709
12, 750
59,037
i 3,481
5,794
17,590
M
37,081
3,580
2,111
4,780
2,563
3,451
2 22,440
31.624
2,794
2,269
4,432
1,972
2,423
215,496
80,800
8,510
4,138
5,766
4,250
9.705
12,675
19, 805
80, 830
5,076
6,687
38, 264
496, 402
23,034
13, 675
18, 550
12,076
22, 567
46,264
28, 449
267, 077
12,479
29,295
34, 341
2,980
160
23
243
66
263
2 1,811
17,520
441
97
223
168
1,416
2,160
4, 638 26, 078
319
300
3,394
553
128
156
260
120
89
2 287
2,655
423
338
408
1,383
165
30
131
65
445
1.122
1,964
4,999
201
289
730
1,058
202
186
216
82
195
262
313
2,293
42
221
369
7,055
289
211
298
177
235
707
1,990
4,220
103
342
860
2,539
12, 331
557
1,202
71
109
23
150
246
10
131
1,254
1,918
112
409
98
400
3,417
447
3,991
17, 598~
94,145
1,170
1,73*
6,467
1,599
(3)
.
w
a
(3)
1939
1946
(3)
67, 798
5,432
4,863
901
124, 061
28, 396
3,941
4,535
6,443
95, 969
326, 548
1,143, 580
1,623
7,078
19, 793
1,205
98
197
93
850
6,690
5,352
2,951
7,116
1,144
17, 409
29, 843
5,636
45, 054
10,497
10, 111
1,734
3,904
2,160
3, 553
28, 546
3,194
30, 988
50,639
61.588
5,765
18, 841
4,496
26, 638
79,886
5,127
70,62r
144, 687
210, 836
22,148
63,047
21,671
76, 555
353,277
47, 373
190,824
147
818
154
191
25
5
63
8
107
1,884
4,239
292
233
72
63
50
30
99
2,444
11, 776
535
1,122
936
94
2,035
145
431
179
213
39
63
8
25
111
4
175
1,264,609
3, 932,910
49,336
42,189~
764, 664
22, 222
94,164
31,816
203, 573
77,680
407
290
3,437
465
308
123
1,470,314
14, 643
9.064
7667593"
17,042
6,865
1,192
220
1939
1946
171, 548
>
CO
co
M
•H
M
M
H
co
o
*j
W
H
d
i—i
H
H
O
CO
CO
D e n m a r k (including F a r o e Islands) _
United Kingdom
Eire
Netherlands
Belgium and Luxemburg
France
.Germany
Austria
Czechoslovakia
Switzerland
Finland
..
Poland and Danzig
U . S. S. R . (Russia)
Spain
Portugal
Italy.
Yugoslavia.
Greece
Asia..
TurkeySyria
Iran-.
Palestine and Transjordan
Saudi Arabia
I n d i a a n d dependencies
Ceylon
French Indochina and French I n d i a British M a l a y a . .
Netherlands Indies
Philippine Islands
___
China
Hong Kong
'_
Japan
Oceania.
Australia
New ZealandAfrica .
F r e n c h Morocco
_.
Algeria.__
Tunisia..
Egypt
B r i t i s h W e s t Africa
Belgian Congo
U n i o n of S o u t h Africa..
See footnotes a t e n d of t a b l e , p . 156.
15, 586
<578, 763
511, 625
111,160
59, 507
155, 591
341,876
7 22, 305
24, 866 ]
498, 661
9,786
96, 588
64,195
180,192
6 44,491
8
31, 253
30,196
5,217
73, 738
99
1,113
11,946
282, 063
4,179
43, 770
39, 710
108,150
130, 535
825
1,793
6, 577
2,716
7,075
12, <*99
26, 564
4,612
48, 260
439
7,746
141,395
290, 299
3,902
io 3, £
(12)
" 10,847
586
327
4,181
3,677
27, 268
15 24, 662
10, 638
16 52,354
1,506
1,455
1,082
1, 670
13 76
H 24,851
737
1,484
2,487
7,757
44, 870
15 55, 722
9,618
18133, 771
3,734
17, 898
13,172
15,987
51, 807
25, 857
9,916
58, 469
2,970
6,298
37,585
841,359
27,820
219, 019
255,020
686,168
78,450
43,924
104, 418
100,355
31,174
170,336
351, 941
42,345
59, 012
326, 935
122, 292
134, 740
372
29,401
96
3,523
1,123
620
11,958
1
61
115
243
36
2
190
14
734
560,011
1,328, 254
4,812
8,252
3,181
4,407
7,627
13 4,182
42, 706 <
If 594
8,220
9,790
35,348
99, 758
is 55,460
17, 980
231, 645 J
36,164
17,-034
22,139
18, 219
19,170
179,599
10,118
8, 077
13, 934
73, 252
295, 570
460, 573
45, 758
98,400
1
12
()
63
131
36, 654
118
632
1,316
495
277
10, 231
7
1,110
451
2,004
4,630
167
145
540
4
716
2
161
25
1,171
5
96
13
ol
393
4
170
118
14,361
1,320
9,509
9,993
7,109
345
136
2,830
5,484
218
11, 750
6,550
173
917
1,767
6,028
6,645
4,977
70,887
3,801
5,659
16,066
45
5
2
12
39
65
8
25
451
56
678
239
245
81
37
725
15
14
6
262
6,520
6,467
661
6 191
8
( ) 118
442
102
19
11
4
303
(x)
122
30
6
147
203
2,698
90
39
21
495
280
3,531
15 329
15 74
490
16 633
179
22
49
158
161
845
771
13, 871
1,254
•168
762
9,140
21, 960
20, 518
680
(x)
116, 369
483
1,238
83, 328
27,947
364
93
(x)
13
(x)
135
9,922
29
647
336
1,136
«334
80
252, 369
197
15,018
52, 861
84, 357
1,039
16, 422
38, 496
11, 265
310
67,463
91, 847
190
143
42, 371
42, 456
41,446
13 39
8
( ) 100
662
112
93
(x)
44
13 (X)
(x)
55
13 2
511
4
2
97
74
875
602
7
7
42
162
1,745
15 3 7 2
15 421
203
16 1, 239
146
1,857
1,055
251
1,103
532
1,010
169
644
323
115
133
559
538
168
243
(x)
56,063
36, 525
79,139
45, 663
8,915
26, 625
9,206
61, 272
16, 476 1
27,887
35,907
114,808 |
486,828
282
685
10, 444
362
1,652
6,746
18 2, 955 1
2,048
1,028
2213, 822
4,700
2,481
69,045
31,258
61,183
15, 248
35,177
11, 046
23, 776
227, 022
18H
2012
(21)
22 11
18 1
18 1
20 1
22 98
51
9
85
39
44
404
667
1,734
482
2,336
626
472
2,212
18 3 8
is 2, 754
is 2,131
20 2,695
49
702
19
186
26
509
4,661
(21)
221, 930
3,608
103
2314, 821
(21)
22 2, 702
3,805
487
15, 803
1
(21)
22 125
(x)
(x)
222
1
2
22 131
2
8
1,438
o
g
o
>
>
>
w
e
l-H
w
o
W
a
d
M
H
©
GO
H3
%
GO
CO
TABLE 41.— United States exports* by commodity groups and countries—1914, 1932, 1939, and 1946—Continued
Or
O
[Value in thousands of dollars]
M e t a l s a n d m a n u f a c t u r e s , except
m a c h i n e r y a n d vehicles
Nonmetallic minerals
Wood and paper
Country-
..I
Southern North America.-.
1932
1939
1946
57,500
100, 310
211,106
277, 834
504,167
935, 467
84, 769
462, 581
725, 926
Ul
8,374
17, 226
33, 675
79, 896
125,033
335. 623
17,110
52, 349
142, 351
8,212
140
16, 818
400
32, 582
407
79, 686
103
124,410
561
332, 890
2,300
16, 962
128
51, 675
625
140, 231
1,115
a
m
6, 643
15, 620
35, 629
i 16,813/
47,049
63, 597
i 10, 364
39, 202
103, 827
1,475
72
60
282
45
115
2 605
3
14, 506
759
384
359
196
593
1,248
1,}10
10, 651
207
1,014
1,051
4,470
315
158
439
118
241
2,232
3
3,183
343
545
3, 068
6,735
946
333
456
351
1,065
692
4,333
7,653
559
663
21, 279
31, 988
1,390
687
862
486
958
1,559
1,356
16, 505
431
2,315
1,512
3,738
189
86
445
154
140
31,738
1,714
117
184
107
4,944
321
412
28
347
12
71
219
266
3,240
3,403
483
139
285
72
1,021
759
1,127
4,410
183
268
768
1,734
153
303
675
13, 619
1,505
346
878
541
1,813
1,569
3,108
9,101
494
881
3,064
55, 835
2,974
1,413
2,778
1,238
3,132
2,651
1,782
21, 777
805
3,617
2,214
Mexico
Guatemala
E l Salvador
Honduras
Nicaragua
Costa Rica
P a n a m a , R e p u b l i c of
P a n a m a , C a n a l Zone
. . .
Cuba
Haiti
Dominican Republic
C u r a c a o ( N e t h e r l a n d s W e s t Indies)
South America
Colombia
Venezuela
Ecuador
Peru
Bolivia
Chile
Brazil
Uruguay
Argentina
12,348
1,016
1,911
108
1,139
176
365
1,270
304
5,802
24, 400
3,852
5,654
347
3,110
619
945
3,350
1,365
4,831
11, 734
542
559
173
307
194
884
4, 682
701
3, 511
29, 508
1,922
2, 613
408
1,168
303
4, 872
11, 480
648
5,867
65, 848
6,783
8,238
835
2,532
919
4,455
26, 577
3,388
11, 614
8,856
1, 501
1,310
135
377
78
358
1, 531
540
2, 943
57, 300
9,426
12,635
930
3, 558
554
5,173
15, 362
1,146
8,131
188, 562
22, 638
37, 054
2,244
9,632
2,503
12, 586
57, 693
8,836
33, 688
23,736
33,467
50,201
106,126
191,326
351,123
30,632 1
163,014
174,311
100
170
172
13,776
172
614
755
656
21,909
294 1
1, 591
1,307
171
17,177
700 1
__
1
. _•
_
__
._ _
()
_
_
*
_.
'.
Sweden
D e n m a r k (including Faroe I s l a n d s ) . . .
. ....
United Kingdom
.. _ .. ..
Eire
. _.
1
G
1946
N o r t h e r n N o r t h America
Canada
Newfoundland and Labrador._
w
*-*
1939
1932
Total.i
*J
O
()
3,811 1
1,327
2,405
39, 220
1,023
16,004
4,383
6, 827
53,108
753 1
28,689 1
9,019
11,421
96,194
178 1
1932
()
1,253
591
457
9,131
77 1
1939
1946
>
15, 596
4, 983
1, 256
42, 444
279 1
26, 943
5,404
2, 699
22,075
414
>
>
td
I—I
H
Ul
O
w
c\
H3
O
Ui
%
Ui
Netherlands
.
.
_ .
Eelgium and Luxemburg.
France .
.
__"_-_._
_ . _ . _
. _ _.
Germany
_ _ _
_
A u s t r i a _Czechoslovakia
.
- - -. _ . . _ _
Switzerland...
Finland.. _
Poland and Danzig _ _ _ _ _ _ _
U . S. S. R . ( R u s s i a ) , . .
Spain
_
Portugal
Italy
Yugoslavia
__
Greece
1,689
1,705
1,802
1,417
13
29
75
5
28
11
1,018
44
1,423
(x)
56
___
10,874
Asia _
Turkey
Syria
Iran
Palestine a n d T r a n s j o r d a n
Saudi Arabia. . . . . _
I n d i a a n d dependencies
Ceylon
__
French Indochina and French India
British M a l a y a
Netherlands Indies
Philippine Islands
China
'
Hong Kong
Japan
._
...
_ __
13
12
7
3
22
(x)
391
11
5
102
495/
1,272
is 2, 469
724
16 5, 270
13,184 1
4,246
27,125
6 7,109
1,455 1
1,600
6,506
4,497
23
23
262
. 238
74
404
436
24
3,269
3
62
7,791
6,523
23,914
9,116
58
139
194
497
53
128
2,862
535
6,127
38
199
14,639 1
9,647
35, 698
614,086
8
38
124
34
90
4
437
107
1,310
3
145
12,472
6,601
5,679
12,869
66
41
153
746
7
220
50
367
613
731
343
646
112
2,047
1,639
273
3,020
9,365
2,834
14,415
308
1,095
20,407 1
25,133
79,967
393
46
2,594
8,352
4,128
4,630
8,431
6,878
5,837
35,003
974 1
2,601
44,500
34,456
79, 676
57,661
15, 677
291
2,160
2,267
5,072
17,867
912
945
14,618
13
770
135,925
66
15
4
96
13 137
949
•16
5
316
1,000*
3,528
is 1, 997
619
3,604
752
514
1,015
1,263
959
8,283
1,169
116
142
546
7,551
16, 810
3,150
55
83
37
7
53
1340
2,855
107
761
316
994
4,462
is 6, 763
1,3F3
16 16, 262
1,710
301
161
179
13 355
5,366
183
1,053
892
2,693
8,887
is 3,110
1,812
46,392
2,977
524
549
593
613
8,580
446
1,375
1,508
515
10.496
22, 882
5,019
79
45
163
59
141
13 1
989
31
40
116
454
4,578
is 2,188
642
16 5, 965
852
525
314
541
13 1,014
3,986
195
2,353
2,275
5, 548
15, 385
is 7, 030
1,609
87, 210
2,218
2,109
1,656
6 839
(8)
()
12, 780
8,169
35,026
118
78
1,224
10,150
1,402
1,114
22,189
813
6,305
10,479
3,462
2,832
(8)
69,864
'
7,136
1,367
932
1,952
2.815
6,487
92
1,174
867
2,231
14, 366
26, 741
2,073
3
1,245
3,089
4,119
19, 789
16, 239
22, 676
1,093
4,341
10, 408
902
298
2,211
812
3,450
463
14, 290
5,243
12, 269
3,557
14, 886
6,910
859
187
3,516
753
7,826
2,286
_
1,683
6,089
18, 582
9,020
15, 337
38, 939
1, 038
10, 450
36, 603
French Morroco
Algeria
Tunisia
Egypt
__
British W e s t Africa.
Belgian C o n g o . . .
U n i o n of S o u t h Africa
18 14
20 292
187
610
1,506
462
2, 391
81
381
10, 671
is 246
20 546
18 564
451
74
22 l, 863
1,148
421
5, 630
4,242
6,446
1, 471
3. 693
540
834
16,144
18 39
2042
i«26
9
2,143
3,064
1,609
1,857
446
3,070
17, 300
Oceania
Australia
New Zealand.
Africa.
_
See footnotes at end of table, p. 156.
__ _
(21)
22 61
21
(x)
623
197
11
22 233
424
2
3,428
(21)
22 345
1,827
223
2,259
(21)
2292
6
44
576
i
9
22 2 , 066
263
67
6,011
TABLE 41.— Lnited Stales exports* by commodity groups and countries- -1914, 1932, 1939, and 1946— Continued
[Value in thousands of dollars]
Vegetable food p r o d u c t s a n d
beverages
Vegetable products, inedible,
except fibers and wood
1932
1939
1932
1939
1946
1932
1939
171,983
236, 662
1, 230,197
114,520
176, 201
713. 219
408,804
357,441
20,435
34, 688
125, 580
9,331
11,918
39,833
15, 610
31,798
142,392
DO
19, 540
846
32, 628
1,833
119, 048
4,588
8,920
342
11,311
551
37,834
1,174
14,940
645
30,587
1,173
138,718
2,536
CO
_
113.369
29,805
119,605
5,401
10, 562
39,769
19,007
33, 571
142.437
_
726
574
311
499
290
401
2
1,817
3
37, 993
1,340
683
1,087
•
893
1,515
3,382
5,096
51, 504
1,272
2,210
4,747
1, 552
87
56
106
121
98
231,186
1,062
142
106
214
2,505
208
135
171
111
293
787
856
3,151
215
224
771
16, 285
1,133
616
538
699
799
2,296
1,344
9,691
831
1,135
2,203
2,328
660
911
1.037
'654
658
21,159
3
4,846
772
492
632
4,332
633
382
476
265
837
1,252
2,081
14, 458
446
665
1,441
26,830
4,450
3,734
3,165
2,491
5,044
8,255
4,471
52,618
4,959
• 7,833
7,148
14,333
8,963
64, 211
4,611
12, 228
58,173
6,775
1,305
1,452
334
10,802
3,395
1,403
1,176
663
1,130
812
1,487
851
16,301
1,681
1,086
1.563
15, 692
67,004
301
1,178
242
231
39
86
10,886
131
1,097
1,442
3,790
756
436
86
68
1,454
122
556
3,486
13,096
1,427
3,548
2,430
161
34,932
4,185
391
461
383
49
179
47
203
1,041
233
1,941
2,194
1,530
298
722
148
1,257
2,836
382
2,700
9,154
7,109
1,035
2,203
1,208
3,491
6,375
3,315
22, 439
3,053
828
460
326
341
844
435
395
3,829
6,845
2,698
262
616
309
2,679
681
287
1,170
14,161
18,961
2,027
4,568
2,283
7,711
3,467
6,155
5,348
108,053
138,547
644, 605
67,354
93,102
431,168
229, 553
183, 427
442,146
15
2,748
1,386
3,228
46, 280
1,335
6,184
5, 851
2,632
66,038
5,024
18,701
16,124
146
83, 920
2,964
1,545
956
958
39, 464
947
8,268
3, 209
3,672
48,875
1,129
20,155
10, 662
5,465
237,140
10,420
2,858
583
1,142
59,763
85
13, 685
2,<x52
2,243
65,840
128
21, 724
16,323
518
39,914
4,894
Ul
Textile fibers and manufactures
Country
Total
_
..-
Northern N o r t h America
Canada
Newfoundland and Labrador
L
Southern N o r t h America
Mexico..
Guatemala
E l Salvador
Honduras
___
Nicaragua
Costa Rica
P a n a m a , R e p u b l i c of
P a n a m a , C a n a l Zone
_
Cuba
Haiti
Dominican R e p u b l i c .
C u r a c a o ( N e t h e r l a n d W e s t Indies)
S o u t h America
__
()
_
!"_
_
__
.
Colombia
Venezuela
Ecuador
Bolivia .
Chile
Brazil
Uruguay.
Argentina
_
_
__
._
-_
Europe.
Norway
-D e n m a r k (including F a r o e Islands)
United Kingdom
Eire
.
v
_
-
-
1946
1
()
1
()
1946
1, 280, 645
g
o
•
>
I—I
M
Ul
O
*j
W
d
M
H
H
O
Ui
H
M
Netherlands
Belgium a n d L u x e m b o u r g
France
Germany
__
Austria
-Czechoslovakia
:
Switzerland
Finland_
Poland and Danzig, i
U . S. S. R. (Russia)
Spain
Portugal
-Italy
Yugoslavia
Greece
1
-'
-__
_
-
..
..
Asia..
Turkey
Syria __Iran
Palestine a n d T r a n s j o r d a n
S a u d i Arabia
I n d i a a n d dependencies
Ceylon
French Indochina and French India
British Malaya
Netherlands Indies
Philippine Islands
China
Hong Kong
Japan
Oceania
Australia
N e w Zealand
-
_
.
1
_..
11,318 1
*
7,087
10,185
15,284
47
83
179
366
585
11
274
14
1,462
2
5,992
21, 617
15,722
6,320
e 1,148
13, 232
20, 235
100, 767
130,148
49
125
229
25
13 11
2,693
171
24
334
1,914
3,645
15 8, 282
1,285
161,918
351
206
948
267
13 195
3,987
431
591
243
1,622
1Q, 377
15 7,601
2,106
1,738
2,144
585
2,288
1,835
1,298
11,003
1,164
502
1,536
1,948
27,939
34,690
10,534
2
7
163
5
73
13 3
'
8,712
34
414
157
347
11,517
15 22,144
342
16 86,144
83,336
361,993
263
349
8
114
13 22
2,239
30
1,261
349
1,201
17, 738
1515,782
421
43,181
4,029
7,072
8,827
2,852
1, 522
5,534
2,777
3,083
3,140
17,896
71,637
127,232
3,098
97,974
10, 649
19,425
1,247
2,339
6, 521
146
526
416
753
825
2,446
859
8,448
2,131
14,332
4,707
1,057
129
1,870
420
4,031
1,617
1,839
3,075
59,672
3,529
5,912
24,084
2,436
7,278
118,152
i 8 65
38
8
22 739
612
99
988
11,034
21,806
2,683
3, 111
873
1,121
10, 217
18 148
20 215
is 190
45
76
22 1, 152
969
52
1,949
21
18 51
20 65
( )
22 522
359
32
480
1
(21)
22 215
1,145
19
581
l-H
a
>
m
Ul
Ul
3,335
;
See footnotes at end of table, p. 156,
31,830
57
_
_
20,958
()
1,674
._
_
214,850
27
2,423
541
199
35
138
1,122
812
36
339
(8)
24,334
39,163
88,907
15, 711
891
14,668
5,082
6, 564
12, 237
8,009
14,005
681
95,952
18,295
11,828
1,288
722
F r e n c h Morocco _
Algeria
Tunisia
Egypt
British W e s t Africa
Belgian Congo
U n i o n of S o u t h Africa
2,061
1,797
119
1,719
294
26
657
6
445
12,846 1
2,445
4,099
6 2,439
14
266
50
689
1, 776
69,863
2,320
18
1, 542
10, 296
64,372
51, 701
7,049
(x)
_._
Africa
(8) 279
9,369 1
6,232 1
6, 564
9, 402
33,594
22,699
68,708
e 11,194
8
29
80
2,166
176
2,058
809
l,31i
4,500
5,175
4
9
13,042
10,301
2,695
1,402
27,412 •
20,408
3
1,686
593
64
20,793
18, 297
34,860
1,247
1, 786
5,968
11,913
2,372
6,476
15, 456
3,736
7,586
9,247
3,042
3,384
4,123 I
2,652
5,427
5,572
122
292
1,267
176
438
58
1,380
463
1,134
23
97
26
81
43
1,004
13 128
610
68
67 '
685
796
7,679
is 5,917
1,694
599 |
6
33
1
52
13 1
374
45
47 i
180
293
3,628
is 5, 291
1,706
161,409
_
_
37,434 1
4.5,290
81,7*1
47,651
17,714
25,487
16,955
7,445
33,021
12,039
4,401
17,092
107, 423
25,910
40,993
1,303
2,072
583
3, 749
2, 659
1,075
5, 740
2I
18 37
202
( )2293
27
23
2,008
18 55
(x)
(x)
22 335
23
90
6,445
4, 229
10,414
3,011
2,132
4,016
8,810
58,951
>
>
w
1—1
K
M
Ul
o* j
M
H
1
Ul
IS
TABLE 41.—United States exports* by commodity groups and countries—1914, 1932, 1939, and 1946—Continued
£
[Value in thousands of dollars]
M a c h i n e r y a n d vehicles
C h e m i c a l s a n d related p r o d u c t s
Miscellaneous
Country-
Total
._
Northern North America
_
Canada.
_
Newfoundland and Labrador
_
Southern North America...
Mexico
__
Guatemala
_
E l Salvador
.
_ ._
Honduras
Nicaragua..
__
Costa Rica
P a n a m a , R e p u b l i c of
P a n a m a , C a n a l Zone
Cuba.
_
Haiti.
._
Dominican Republic
C u r a c a o ( N e t h e r l a n d s W e s t Indies)
_-_
__
_ _
_
.
__
._
_ .
_
Europe
Sweden
Norway
D e n m a r k (including Faroe I s l a n d s ) .
United Kingdom
Eire
1939
_.
__
_ .
__ __
1946
221,745
896,027
2,223,706
40,280
128,893
405,309
- 39,879
363
127,498
1,334
116,868
8,372
276
189
484
122
160
i 2,249
3
1932
1946
70,407
164,374
500,113
62,839
106,386
571,388
14,173
29,372
78;.822
20,070
31,052
99,165
396,666
3,714
13,894
268
28,940
412
77,846
591
19,825 1
232
30,596 1
97,42
432
1,186
en
69,756
316,789
i 8,527
20,'719
77,900
i 6,857
15,083
78,185
211, 381
5,640
2,845
6,125
3,087/
4,848
16,169
3,052
40, 788
2,236
6,443
5,501
2,713
188
156
432
203
157
2
1,094
3
1,933
169
297
374
7,102
772
370
928
348
616
945
836
4,994
241
569
1,068
35,415
2,788
1,878
2,022
1,612
2,480
3,562
1,950
17, 581
717
2,163
3,255
1,007
111
174
149
4,970
323
250
279
190
288
914
1,278
3,438
241
339
789
41,593
1,830
1 127
1,095
1,029
1,548
3,677
1,660
15 664
599
1,925
2,455
>
o
2 2, 282
307
448
392
27,179
32,298
1,870
792
1,284
1,093
2,319
2,886
3,058
10, 033
772
1,482
6,423
146,382
468,708
6,377
21,946
91, 783
4,659
12,563
82, 767
2,370
2,968
228
1,142
1,077
672
7,267
556
10,707
19,294
25, 093
1,935
7,869
2,324
9,350
'39,457
1,621
38, 549
53,324
81, 553
10,036
24,304
7,929
34, 928
160,458
14,396
78,318
981
1,008
154
507
85
231
1,045
208
2,062
3,702
3,266
459
2,163
295
1,679
4,297
341
5,426
15, 560
11, 818
1,978
6,767
1,852
6,412
26,347
2,678
17,345
642
434
74
235
255
173
1,266
152
1,374
2,357
2,612
247
827
206
982
2,754
236
2,191
12 030
13,658
1,573
4,853
895
5,372
28,626
2,463
12,426
86,451
326, 643
677,730
24,145
49,608
129,444
18,985
25,689
173,373
GO
2,628
1,005
2,232
19,053
242
25,460
5,759
6,436
119,000
* 1,699
637
162
426
6,625
126
4,246
1,643
535
21,924
143
745
274
277
9,119
68
1,745
829
342
12,948
189
13, 835
3,741
1,249
8,281
756
55
47,333
10,132
14,549
47,179
5,018 1
()
14,698
2,904
1,170
22,749
958 1
1932
O
1939
()
South America.
Colombia.
Venezuela
Ecuador
Peru
Bolivia
ChileBrazil
Uruguay
Argentina..-
1932
1939
2,717
144 !
135
204
80
101
2
919
3
()
.
1946
>
CD
a
H
H-l
&
f
M
Ul
O
W
d
M
H
M
GO
Netherlands
.
Belgium and Luxemburg
France
.
Germany
Austria
Czechoslovakia
Switzerland
Finland
Poland and Danzig
U. S. S. R. (Russia)...
Spain
Portugal-.
Italy
Yugoslavia
Greece
I
Asia
Turkey
Syria
Iran
Palestine and Transjordan
Saudi Arabia
India and dependencies..
Ceylon
French Indochina and French India.
British Malaya
_._
Netherlands Indies
Philippine Islands
China
Hong Kong
_
Japan
Oceania
Australia
,
New Zealand..
_
_
4,410
10,417
14,408
4,998
247
753
3,201
306
410
11,415
4,881
558
3,678
209
394
16,955 1
14,494
73, 399
e 2.641
33,171
140,043
1,176
750
659
1,079
13 16
4,644
•
114
170 '
456
1,945
6,902
u 3, 532
1,493
8,726
' 3,980
1,438
2,644
4,937
13 1,989
18,149
305
2,574
2,325
17,329
17,405
is 9, 255
7,387
38, 526
3,251
3,710
5,107
6 3, 628
7,674
1,709
1,092
6,514
3,058
46
51
196
37
78
> 6
1,664
144
1,125
31
58
199, 349
12, 850
3, 805
5, 508
5, 360
7,854
21, 733
315
1, 275
2, 957
27, 861
26, 966
73, 045
4, 028
37
53,758
33, 356
219, 763
198
1, 649
3, 353
13, 236
1 3, 746
r i i , 016
169, 045
7, 563
12, 793
3,774
10, 744
(8) 421
4,321
4, 596
4,150
28,502
3,418
2,817
3,568
730
2,771 1
t
76
730
314
393
439
178
209
505
71
161
11,621
8,137
17,415
11, 546
4,730
6,377
5,082
3,918
18,648
16,378
956
3,651
11,447
8,203
12,056
9,191
13, 083
96,963
38
66
104
150
133
1,157
52
12
270
308
2,319
is 1,741
863
1,961
270
82
26
154
13 129
2,029
87
203
1,016
1,291
4,865
15 957
763
615
2,060
1,231
1,300
1,835
810
15,370
153
204
949
1,389
23, 734
40,406
4,040
249
871
460
404
213
729
400
1,480
113
311
6,764
8,942
24,152
136
432
3.267
12,090
1,063
3,761
1,947
3,264
3,393
8,738
2,836
4,636
420
496
3,175
1,297
74
137
371
36
158
458
654
76
725
123
137
13,980
32,773
95, 354
50
35
8
51
13 1
2,402
139
4
314
730
2,975
i«2,412
487
» 4,244
236
124
256
269
13 170
4,697
234
85
1,152
3,426
8,620
is 3, 317
1,244
7,901
3,475
1,274
1,263
915
715
18,151
412
147
524
1,168
20, 030
40, 079
5,426
(x)
(8) 105
1,230
766
2,458
6 879
(8)
5,346
29,798
36,555
1,369
4,724 ~
7,057
1,645
4,330
6,349
4,044
1,212
23,408
5,961
28, 326
7, 220
1,102
244
4,175
507
5,075
1,799
1,299
283
3,390
874
4,534
1,554
See footnotes at end of table, p. 156.
3
TABLE 41.— Lnited States exports* by commodity groups and countries—1914, 1932, 1939, and 1946—Continued
OX
[Value in thousands of dollars]
M a c h i n e r y a n d vehicles
C h e m i c a l s a n d related p r o d u c t s
s
Miscellaneous
Country-
M
1932
Africa
French Morocco.
Algeria
Tunisia.
Egypt
__- .
B r i t i s h W e s t Africa
Belgian Congo
U n i o n of S o u t h Africa
_ -_
1946
12,449
54, 513
119, 266
is 1, 568
201,470
is 1,957
1,281
825
22 6. 078
973
1,591
35,796
5,396
9,113
4,411
11,018
1,294
5,046
66, 322
(21)
_ _
1939
22 738
314
109
6,798
1932
1,837
18 6
20 31
(21)
**345
31
6
1,124
(x) Less than $500.00.
•Fiscal year 1914; calendar years 1932, 1939, and 1946.
i Includes trade, with the Virgin Islands, which is excluded in 1939 and 1946.
2 Includes Canal Zone.
3
Included with Panama, Republic of.
4
Excludes the northern part of Ireland.
5 Includes the northern part of Ireland,
o Includes Austria.
i Austria-Hungary.
89 Included with Germany.
Serbia, Montenegro, and Albania.
io Includes Asia Minor, Armenia, Kurdistan, Mesopotamia, Syria, and Arabia. .
ii2 Included with Turkey.
i Included with Turkey.
13
Includes Arabian Peninsula states n.e.s.
H
Includes Burma.
is Includes Manchuria.
io Includes Chosen.
17 Includes Spanish Morocco.
189 Includes Tangier.
1 Includes Tunis and ot>her French Africa n.e.s.
20 Included with Tunisia.
21 Included with Algeria.
22 Includes Anglo-Egyptian Sudan.
23
Includes other British South Africa.
Source: Special Programs Division, Areas Branch, Office of International Trade, Department of Commerce.
1939
1946
5,232
19, 753
18 32
22
11
22 761
197
56
3,312
752
1,607
287
2, 828
152
1,067
10,453
1932
1,432
18 11
20 18
(21)
2*154
26
19
1,047
1939
1946
4,586
34, 586
18 20
5
13
22 427
51
52
3,644
833
1,820
231
1,877
334
1,391
24, 350
a
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GO
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%
M
CO
TABLE 42.— United States imports* by commodity groups and countries—1914, 1932, 1939, and 1946
[NOTE.—The grand total and continent totals include countries not shown. Data by commodity groups not available for 1914.]
. [Value in thousands of dollars]
O
Animal and animal products,
edible
Total merchandise import s
"Animal a n d a n i m a l p r o d u c t s ,
inedible
Country
1914
1932
1939
1946
1932
1939
1946
1932
1939
1946
w
H-l
O
>
ui
Total
Northern N o r t h America
.
Canada
..
Newfoundland and Labrador.
_
__
Southern North A m e r i c a . . . .
Mexico
_
Guatemala.
E l Salvador
Honduras
Nicaragua
Costa Rica.
_
P a n a m a , R e p u b l i c of
P a n a m a , C a n a l Zone
Cuba
Haiti
Dominican Republic
_ .._
C u r a c a o ( N e t h e r l a n d s W e s t Indies)
South America.
Colombia
Venezuela
Ecuador
Peru
Bolivia
_
Chile
Brazil...
Uruguay
Argentina
_
._
2,276,099
4,934,645
45,028
95,424
152, 495
80,112
149, 750
466,955
181, 737
341,194
915,166
10,653
30,673
72, 580
5,532
16,260
40,774
160,690
1,315
174,101
7,133
332, 568
6,592
882, 222
26, 213
9,967
673
29,093
1,262
64,101
6,865
5,148
170
14,881
257
35,467
1,450
i 265,353
i 157,109
226,180
732,018
i 1,815
7,618
27, 303
i 1, 454
2,909
17, 538
92,691
4,079
1,158
3,130
1,395
3,570
2 3 4, 510
37, 423
4,501/
1,143
9,004
1,964
3,687
2 3, 530
3
54,432
10, 721 •
6,877
7,016
2,903
3,229
3,583
480
101,086
3,034
5,787
19, 580
232, 736
31, 218
15, 210
9,409
6,436
10,604
5,801
2,071
323,021
17,685
20,197
46,133
1,736
6,899
24,632
1
(x)
677
9
4
3
17
1
2 20
444
40
57
45
9,399
1,651
7
2
25
47
3
4
2
658
86
lo9
17
11,141
205
11
175
212
11
51
45
4,042
1,004
347
16
23,457
93, 397
169
189
18
146
1
200
3,120
318
5,237
131
309
22
523
17
440
6,108
720
15,140
1,940
708
171
1,537
124
2,314
22,104
5,129
59,128
()
222,677
_
16,051
9,763
__
3,59-J
_
__
_.
__
See footnotes at end of table, p. 166.
1, 322, 774
162,133
131, 304
692
3,877
513
_
__
_
_
1,893,926
_
12,176
(x)
25,722
101,329
7,715
45,124
()
58, 330
611
3,380
24,182
200,902
300, 726
1,094, 608
60,846
20, 294
2,386
3,685
6
12,278
82,139
2,104
15, 779
48, 944
23,415
3,523
13,827
804
30,951
106, 305
8,587
58>549
156, 563
119,623
13, 219
35,906
24,023
83,880
408,004
48,221
194,254
(x)
3
()
(x)
5
8
22
24
371
7
347
(x)
33
143
17
1
66
3,002
(x)
1,034
847
10,436
23,277
(x)
10
10
(x)
1,023
1
1,918
77
48
1,389
1,387
123
1,867
3,017
4,835
1,011
732
3,762
14,673
2
3
(x)
.
(3)
03
>
o
>
w
t—I
E
H-I
Ui
O
W
d
M
H
o
m
%
H
02
TABLE
42.—United States imports* by commodity groups and countries—1&14, 19S2, 1989, and 1946—Continued
00
[Value in thousands of dollars]
Animal and animal products,
inedible
Animal and animal products,
edible
Total merchandise imports
Country
Europe
Sweden
Norway
D e n m a r k (including F a r o e Islands)
United Kingdom
Eire:
Netherlands
_
_
Belgium and Luxemburg
France
..:.__
Germany
Austria
Czechoslovakia
Switzerland
_
Finland
. _
Poland a n d Danzig
_
.
U . S. S. R . (Russia)
_
Spain..
Portugal
_
Italy
Yugoslavia
_
__
Greece..
_
_.
_
_
_
Turkey
_._
Syria
Iran _
._
Palestine and Transjordan
Saudi Arabia
I n d i a a n d dependencies
.
C e y l o n . __
French Indochina and French India
British Malaya
Netherlands Indies
Philippine Islands
China._
Hong Kong
Japan
__
389, 246
609,928
796,179
22, 726
32, 976
20,062
43,188
53,772
114,661
11,590
9,197
3,270
* 275,848
8
17,813
36,294
41,036
141,446
189, 919
7
20, 111
42,100
21,825
3,775
151,309
1,478
28,272
62, 926
61,376
«54,665
8
88
2,894
297
1,284
51
821
88
1,401
715
36
36
2,778
77
8
2,191
510
1,129
7,997
12
175
857
6,419
622
180
18
340
195
646
2,782
2,619
560
11, 593
393
338
1,584
6,672
6
(x)
1,781
3,026
56
14
642
1,295
262
12,361
15
833
1,616
5,017
11,892
386
2,670
406
344
372
2,114
604
61
1,619
141
170
595
3,648
201
11,122
19
2,066
3,268
9,044
61,617
8
5,538
30„403
20,664
11,790
24,494
10,060
6,347
38,808
5,547
15,891
47,060
13, 231
4,276
156,436
2,174
22, 906
77,352
62, 789
3,158
1,494
19,159
98,479
12,129
258
100, 572
48,310
23,273
68,657
1,225
23,662
279
4,957
1,018
590
31
1,278
220
1,184
8 M99
23,320
24,659
6,165
56,408
9
1,950
3,867
24,480
10,439
1,328
74,631
371
22,430
21,927
44, 738
73, 572
2,611
13,021
12,493
8,179
1, 256
9,735
11,406
2,798
42, 403
438
7,550
310,922
361,848
694, 633
907,676
5,843
10,214
3,085
16,310
5,388
806
2,764
91
"201
i* 33, 204
5,915
76
34,806
29,827
80,877
16 26,177
4,277
is 134, 011
15,294
3,096
4,482
647
"896
66,329
21,066
9,596
149,059
93,156
91,906
is 60,341
3,549
161,095
68,321
8,541
31,192
22, 947
1,792
237, 664
31,875
41,840
126,801
33, 770
39, 712
92,691
1,481
109,883
280
84
113
(x)
274
257
205
33
360
46
10
1
(18)
13 1
257
333
885
29
7
138
_
10
20,843
1,948
(12)
i* 73, 631
11,965
_.
1946
889,709
-
_
1939
1946
__
_
1932
1939
_
_
1946
1939
1932
25,330
117
Asia
1932
1914
26,308
5,334
18,162
"39,383
3,086
« 107,364
()
i*33
(x)
1
26
181, 207
271
is 3, 709
()
23
3,142
228
7,369
1,610
215
1,236
6,798
154
130
198
2
102
1
444
161, 284
112
6,758
(x)
32
1,763
932
6,627
1,378
27
666
131
(U)
u 3,014
(x)
9
11
1,246
49
16 8,330
203
16 2, 548
()
1,336
723
.
418
1,355
13.630
144
199
965
731
222
33,698
569
129
623
34
13 395
6,144
t6
ho
116
895
41
1613, 786
51
3,980
71,196
1,835
310
6,099
694
2,394
125, 980
4,680
256
9,343
178
180
33,006
13
228
54
91
605
37, 529
28
808
o
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CO
CO
H
CO
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>
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Oceania
._
Australia.
N e w Zealand
Africa
F r e n c h Morocco
Algeria
Tunisia
Egypt
B r i t i s h W e s t Africa
Belgian Congo
U n i o n of S o u t h Africa
:
_
.._
23,982
7,691
27,893
183, 376
896
2,392
4,900
2,582
11,013
38,343
17,089
5,125
4,643
2,158
15,753
11,554
145,477
34, 772
415
480
1,107
1,285
586
4,308
1,584
990
5,101
5,870
28,319
9,273
19,149
24, 241
75,544
305, 622
92
1,115
1,289
1,647
8,641
36, 263
1M50
i fl 845
18 472
201,211
is 1,405
2,031
724
22 6,818
17,483
1,582
27, 750
1,692
1,719
619
23,922
36, 553
18,533
150, 575
18 80
20 1
18 196
233
60
22 273
2,029
9
4,346
437
163
1,835
40
23,664
(21)
_
__
_
_
._
22 13,311
633
35
23 2,470
(21)
22 4,849
8,932
1,204
2,302
22 1
18 612
71
1
22 61
47
9
355
1,136
(21)
57
18 27
2073
(21)
22 361
349
(x)
549
124
M
a
>
GO
See footnotes at end of table, p. 166.
Til
K
CO
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CO
TABLE 42.—United States imports* by commodity groups and countries—1914, 1932, 1939, and 1946—Continued
o
[Value in thousands of dollars]
V e g e t a b l e food p r o d u c t s a n d
beverages
Vegetable p r o d u c t s , inedible, except
fibers a n d w o o d
T e x t i l e fibers a n d m a n u f a c t u r e s
Country
Total _
-
N o r t h e r n N o r t h America
_
Canada
Newfoundland and Labrador
_
_'
-
-.
_
Southern N o r t h America
_
Mexico
__
Guatemala
E l Salvador
__
Honduras
_ _ _
Nicaragua
C o s t a Rica..
__
_
P a n a m a , R e p u b l i c of
P a n a m a , C a n a l Zone
Cuba1
Haiti
.__
Dominican Republic
Curacao (Netherlands West Indies).
_
-- -_ ._
..
_.
South America
Colombia
Venezuela
Ecuador
Peru
Bolivia
Chile
Brazil
Uruguay
Argentina...
___ _
_
._
_
Europe
Sweden
Norway
D e n m a r k (including F a r o e Islands)
United Kingdom
_
_
1932
1939
361,863
508, 752
10,392
30, 468
*.
1932
1939
1946
1,184, 987
125,206
352, 244
632, 043
244,038
359, 822
809, 720
85,474
892
2,049
16, 815
1,192
2,181
10,115
10,301
91
30,148
321
85,174
301
i 89, 519
143, 556
394,485
11, 232
4,419
1,077
8,832
1,810
3,598
2
33,133
46, 929
179
3,038
4
13, 547
9,600
6,796
6,709
2,625
2,719
3,394
109
86,230
2,403
5,349
6
63,760
24,941
14. 936
7,803
4,513
9,138
4,429
1,000
230, 221
10, 444
17,340
5
133,999
134,106
478,350
48, 744
6,006
1,093
17
136, 951
23,832
.
4,139
3,657
513
46, 593
3,250
2,516
1,134
32
486
78, 636
6
1,314
33,137
153
18
105
7,152
()
702
76, 857
_
._
1946
'1932
1939
1946
>
892
2,043
2
16, 813
2
1,089
6
2,157
3
11,113
15, 734
75, 656
i 7, 709
6,944~
1,831
1
25
11
31
21,963
4,456
109
428
1,094
285
384
10
43.982
1,117
173
184
6,995
(x)
23
8.236
106
3
66
8,768
4,976
759
29
3
97
19
16
12
8,472
39
5
228
41,019
113,054
3,642
292,170
'
122
13,732
96
31
132
64
3
7
1,427
5
6,900
134
113
353
286
68
37
15,499
807
22, 570
1,594
1,415
1,367
3,794
2,149
337
57, 841
6,980
33,916
79.403
103,433
27, 971
34, 668
249
54
494
37,096
95
38
1,153
21, 732
5
4
235
2,694
343
123
530
1,609
(x)
1
2
(3)
3
5,584
1
34
(x)
(x)
9,887
(x)
433
168
5
60
1,721
770
448
4
38
18, 612
127, 894
147
22
298
232
409
1,090
3
65
974
221
524
3,905
12,439
512
1
6.053
8,281
g
4,880
9,052
31 669
67,372
57,051
72, 552
101, 636
132,067
169
255
650
1,161
10
13
(x)
22, 716
90
45
113
47,280
2,819
689
9
48,077
2§
(x)
(x)
(x)
(x)
CO
CO.
H
H3
co
>
45, 501
37,162
884
127
385
4
197
645
32
1,273
4 450
95
4
(3)
a
>
l-H
f
H-l
H
CO
o
w
d
M
O
co
>
H
CO
Eire
Netherlands
Belgium and Luxemburg
France
Germany
Austria
Czechoslovakia
Switzerland
Finland
Poland and Danzig
U. S. S. R. (Russia)
Spain
_
Portugal
Italy
Yugoslavia..,
Greece
Asia
_ _ _ -.
_ ...
_ _
_
_
_
_.
_ _ . __
_
_
,
1
_
_
__
.__
_
.
_.
_
_
Turkey
Syria
Iran
Palestine and Transjordan
Saudi Arabia
India and dependencies
Ceylon
French Indochina and French India
British Malaya
Netherlands Indies
Philippine Islands _
China
Hong Kong..
Japan.
_
1
._ _
.
__
Oceania
Australia
New Zealand.
Africa
_
French Morocco
Algeria
Tunisia
Egypt
..
British West Africa
Belgian Congo
.
Union of South Africa..
.,
_
_.
See footnotes at end of table, p. 166.
._
_.
-
21 1
1.657
273
2,873
1,088
21
62
102
6
236
478
6,295
393
11,113
105
732 1
702 1
2.584
782
11,530
e 8 1,140
185 1
1,052
82
24,445
34
110
243
21
263
43
17
7,536
828
10, 928
225
2,602
37,161
3,076
11.639
150
2,093
182
475
1,245
67
4,735
82
5,966
85,251
102, 688
81,106
588
133
150
32
13 200
3,589
3,092
12
276/
10, 740
59, 336
is 1, 301
1,080
is 2,993
487
271
253
82
13 476
8,475
7,354
23
230
15, 761
57,118
is 3, 356
633
6,405
6,805
2,311
1,383
204
38
34, 599
16,420
408
773
3,775
1,217
5,247
439
2,845
113
260
1,326
1,049
782
3,b84
23
76
19
48
460
382
186
195
223
521
9,452
18, 270
40, 813
3, 875
7,282
18 106
20 100
(21)
22 104
6,668
18 186
71
352
22 86
11, 503
506
18
281
62
27
15
25, 241
331
207
18 76
20 356
21
18 150
365
221
22 715
340
701
248
59
()
675
73 1
13 1
6,061
627
1,402
3,449
18
469
66
(x) I
4,953
487
1,926
6 2,184
8
()
615
20
12 1
9,279
515
3,392
2,229
12
3,656
351
1,086
1,141
15. 902
7,708
4
61
1,315
15, 971
978
()
285,232
246
1,931
2,057
9
13 18
40, 340
31
31
9
5,515
11,297
is 23,160
29
122, 536
395
4,284
14, 337
57
10
126,290
448
46
253
189
6,455
25,697
51
99,734
1,672
11,135
128, 702
1,312
1,262
1,436
236
7,441
3,689
32, 734
4,943
9,459
4
4,297
1,316
537
2,414
376
18,932
71, 538
333, 049
3,545
170
96
14
13
(x)
4,771
2,627
22
24, 068
12,900
14, 800
15 3,486
506
16 3, 747
12,635
461
1,284
16
13 1
6,447
13, 270
9,404
101, 272
64,124
19, 757
15 12,120
1,308
7,093
51, 242
1,246
4.890
62
11
26, 268
13,923
41,155.
122, 967
20, 735
30,196
14, 555
202
216
22 301
1, 519
1,203
23
594 I
2,469
14,864
13,334
e 1, 999
8
1,664
4,829
5
642
960
8
386
11,265
104
21
209,855
558
1.229
200
549
2,240
2,285
11,953
250,
711
( )
78 1
871
4.542
12.130
9,486
604
4,683
3,958
2
20
832
150
7
11,209
(x)
23
285
96
(x)
271
521
4,830
1,993
154,250
219
329
2,353
4
13
(x)
20, 341
15
(x)
3, 551
5,604
is 10, 245
44
16 111, 299
18 123
2054
(21)
22 3, 963
15
206
18 132
2
43
22 5, 373
79
20
2,343
5,183
54
90
30,073
1
3
•
109,379
19, 316
O
>
1-3
>
s
5
M
M
O
*1
H3
W
d
80, 208
271
(x)
2
22,451
274
28
43, 222
O
QQ
%
O
TABLE 42.—United States imports* by commodity groups and countries—1914, 1982, 1989, and 1946—Continued
to
[Value in thousands of dollars]
Wood and paper
M e t a l s a n d m a n u f a c t u r e s , except
m a c h i n e r y a n d vehicles
Nonmetallic minerals
Country
o
w
H
1932
1939
1946
168,115
260,268
554, 350
96,138
136,624
' 432, 369
74,156
227, 272
385,961
112,835
175, 741
457,196
5,214
16,763
36,677
14,649
38,795
108, 293
1939
1932
1946
1932
1939
1946
a
Total..
-
N o r t h e r n N o r t h America
.
...
Canada
_
Newfoundland and Labrador
...
S o u t h e r n N o r t h America.__
Mexico
Guatemala.__
__
E l Salvador
__
Honduras
Nicaragua
Costa Rica
P a n a m a , R e p u b l i c of
P a n a m a , C a n a l Zone
Cuba
_
Haiti
Dominican Republic
C u r a c a o ( N e t h e r l a n d s W e s t Indies)
S o u t h America.__
Colombia
Venezuela
Ecuador. _
Peru.
Bolivia
Chile
Brazil
Uruguay
Argentina...
_
_.
_._
_
107,169
5,667
171,305
4,435
1557
1,871
265
15
1
2
26
23
3 2 32
346
161
()
(x)
• 20
(x)
247
7
47
59
(x)
67
_
(x)
.
__
_
118
143
_.
,
20,153 .
14,655
634
7
498
543
,428
158
17
592
358
1,048
(x)
16,143
62
35,849
12
14,172
477
38,616
179
104,646
3,517
i 32,667
22,810
64,986
i 6, 385
19, 251
52,179
12,092
2
5,142
(x)
(x)
(x)
1
15,645
34
(x)
36,850
9
1
2
(x)
(x)
16
52
15,027
2
4
127
cc
O
H
6,679
(x)
24
(x)
145
1
(x)
(x)
23,770
2
18,510
2
8
7,592
29
67
44, 739
()
Sweden
Norway .
D e n m a r k (including F a r o e Islands)
United Kingdom..."
_
_.
_
()
23
3,860
25,991
22,345
117,269
11, 500
33, 507
109,489
14
193
145
78
49
552
173
11,091
13,873
790
102
898
19,102
13,118
90, 569
(x)
55
453
24
1,917
60
839
15,999
21, 728
58, 760
3,255
20
999
10
42
2,536
(x)
245
44
43
51,413
75,168
64,644
27, 983
50,098
96,056
25,015
59, 484
53,142
20,766
4,274
13
1,477
32,411
5,558
45
2,190
31,116
21
422
3,179
46
20
128
4,469
278
103
711
5,842
730
70
143
14,878
1,627
1,621
55
6,388
5,829
4,326
302
22,394
5,525
2,009
163
19,149
(x)
74
-
1
105
3
372
1
114
(x)
-
1,234
(x)
2
2
(x)
(x)
(x)
(x)
3,518
(x)
2
24
(x)
3
(x)
Europe.
(x)
(x)
1
1
2,227
2
84
,
.-
3,812
(x)
(x)
917
(x)
2
37
123
_.
_
*
5,040
744
5
8
10,346
662
16,901
512
1
605
(x)
„
_„
277
443, 583
13,613
>
.00
78
(x)
8
12,678
23
501
(x)
2,412
2
7,328
205
>
>
w
I—I
F
M
•3
M
*}
W
d
H-1
H
M
O
H
Eire
...
Netherlands
Belgium and Luxemburg..
France...
Germany
Austria
C zechoslo v a k i a
Switzerland
Finland
Poland and Danzig
U . S. S. R . (Russia)
Spain
Portugal
Italy
Yugoslavia
Greece
AsiaTurkey.
Syria
Iran..
Palestine a n d Transjordan
'..
Saudi Arabia
I n d i a a n d dependencies
Ceylon
French Indochina and French India.
British M a l a y a . _
Netherlands Indies
Philippine Islands
China
Hong Kong
Japan
_
2
130
415
5,459
6,442
312
849
79
7,541
208
895
579
994
532
56
(x)
1
291
550
5,083
6
82,469
2,273
1
4
(x)
2
32
(x)
2,331
7,600
1,846
5,183
206
1,739
21
67
55
1,550
702
(x)
1,018
7
5
4,316
2,982
3,357
128
4
(x)
15
(x)
1,008
35
1
32
28
553
1,002
74
25
6
1
(x)
(x)
173f
286
« 145
155
16 1,407
(x)
7
(x)
9
13
(x)
193
27
4
28,
257
1,049
16 373
133
1,833
460
76
32
(x)
665
1
1*207
22
i6l,873
146
383
44
145
(x)
379
4
614
1,873
5,471
18 38
20 433
1874
837
2
2299
309
(x)
1
535
1,197
(x)
273
2,700
17
4
(13)
38
23
Oceania..
Australia
New Zealand.
Africa. .
F r e n c h Morocco
Algeria
Tunisia
Egypt
B r i t i s h W e s t Africa
Belgian Congo
U n i o n of S o u t h Africa..
(21)
22 7
5
(x)
()
294
116
19,058
471
317
627
2,887
842
23
21
464
289
1
(x)
22
59
10,860
55
4,183
11, 217
2,617
4,797
24,207
2,694
• 6, 215
8
()
541
208
172
178
1,469
743
8
1,492
63
121
11
7,983
51, 513
3,746
46
1,398
8,207
2,562
144
11
1,163
586
546
2,292
19
1
2,341
1,856
1,429
6,661
173
406
435
3
24
950
327
(x)
326
15
378
39,819
14,060
362
1,327
304
49
(x)
1,032
6
16 348
24
4,207
55
(x)
166
22,103
1,514
9,084
1,016
(x)
201
14
2
2,209
56
1,188
44
45
41
(x)
»(x)
204
(21)
22 2
(X)
729
()
.293
1,891
302
224
3,309
285
60
188
1,940
290
64,169
20
145
2,491
2,186
4
4
976
1,596
9
85
16, 556
771
270
1,153
1
7
29, 722
O
I
o
>
H
Ul
>
10,353
288
(x)
i £ 537
1,546
16 319
2,833
52
34
47, 254
5,463
1,141
16 4,156
1,009
1,172
4,625
57
22
53
1
6,072
3
(x)
2,492
8,938
268
2,235
16
4,781
237
393
1,163
3,824
45
(x)
235
(x)
307
(x)
882
(x)
3,399
16
16,999
77,325
2,153
10,904
W
d
l 8 (X)
3
1
(x)
20
709
1,669
72,467
l 8 (X)
29,312
3
H
31
(x)
8^
4
13 1
(13)
3
2,015
7,481
2,622
« 5, 514
8
10
11
22 47
6
217
15,894
(13)
(x)
7
587
49
20 99
(21)
4
15
38
(13)
18 20
31
10
22 2
229
350
3,193
123
4,317
450
19
296
122
33
5,253
11, 584
7,329
>
M
I—I
*-<
H
Ul
O
>
GO-
See footnotes at>nd]of table, p . 166.
00
TABLE 42.— United States imports* by commodity groups and countries—1914, 1932, 1939, and 1946—Continued
[Value in thousands of dollars]
M a c h i n e r y a n d vehicles
C h e m i c a l s a n d related p r o d u c t s
Miscellaneous
Country1932
Total
-
-
N o r t h e r n N o r t h America
_
47,852
79,479
100, 044
71,771
91,369
171,128
27, 973
5,284
11, 769
30, 735
14,477
14,039
28, 535
Ul
Ul
614
2,457
(x)
27,961
5,284
(x)
11,769
30, 693
42
14,423
49
13,955
70
28,048
411
Ul
1101
71
266
1469
805
21, 761
i 5, 321
4,611
12,191
51
47
213
1
282
448
2,806
11
2,532
58
13
155
74
2 58
3 328
(x)
17, 922
69
2
723
661
118
205
232
1,478
160
15
162
68
117
148
319
614
50
143
720
7,463
86
15
118
63
198
104
902
1,315
211
270
334
21,659
1,655
2,254
6,329
145
107
14
92
1
151
317
311
468
419
588
23
86
24
79
423
21
520
449
1,921
96
376
5
219
1,978
90
923
(x)
4.
(x)
(x)
3
(x)
(x)
22
43
2
(x)
3
(x)
8
12
30
1
4
1
1
._
_
2
_
_
1
2
22
(x)
:_
_
(x)
(x)
2
13
_.
.
_
(x)
(x) ,
(x) •
()
S o u t h America
Colombia
Venezuela
Ecuador
Peru
Bolivia..
Chile
Brazil
Uruguay
Argentina
>
44, 596
___
. . .
1946
2,457
S o u t h e r n N o r t h America
_
1939
15,095
(x)
__
1932
1946
1939
614
_
Mexico.. _
Guatemala.
E l Salvador
_
Honduras
_
Nicaragua.
Costa Rica
__
P a n a m a , R e p u b l i c of
. __ _ __
P a n a m a , C a n a l Zone
Cuba
Haiti
D o m i n i c a n R e p u b l i c ._
_
Curacao (Netherlands West I n d i e s ) . ,
1932
1946
8,493
__
Canada
Newfoundland and Labrador . _ ..
1939
_.
(x)
(x)
2
()
129
1
3
4,581
55
3
484
(x)
(x)
(x)
(x)
1
3
5
4
23
(x)
3
21
3,812
10
15
202
316
(x)
38
14, 062
29
(x)
206
12, 661
132
108
923
(x)
45
117
9
12,667
5,655
426
2,742
>
5
I—I
F
M
M
Ul
O
*1
W
d
O
Ul
15
H
Ul
Europe.
Sweden..
_
__
Norway..
D e n m a r k (including Faroe Islands)
United Kingdom,.
Eire .
^
Netherlands
_
Belgium and Luxemburg.
France
. ._
Germany
__•_
Austria _
Czechoslovakia
__ __ .
Switzerland
_ .
Finland
Poland and Danzig
U . S. S. R . (Russia)
_
Spain
Portugal
,
Italy
Yugoslavia.. .
•___
Greece
._
.
_.
_
__
_.
__.
-.-
16,147 |
34, 701
48,409
20,279 ,
43,969 i
62, 635
118,638
1,075
78
90
3,110
(x)
112
308
554
« 5,192
8
1,064
57
72
11, 721
60
134
54
2,775
3
6,354
3,609
2,945
14, 562
35
108
2,331
(x)
23
86
725
126
675
17
58
346
2,440
108
5,276
8
4,288
6,277
5,055
615, 792
8
214
211
67
4,766
(x)
858
2,231
4,785
46
(x)
35
4,071
718
159
137
11, 847
41
946
1,143
9,982
10, 292
790
1,950
2,090
88
124
165
266
21
3,078
4
44
604
493
164
14, 798
119
3,419
4,482
8,349
6 12,045
8
1,691
843
414
19,999
443
1,505
1,978
8,231
764
18
3,142
68,883
38
146
217
718
248
9,097
2
168
Oceania
_.
_\
See footnotes at end of table, p. 1166.
166
395
688
23
()
4
1,664
(x)
72
774
183
1
4
(x)
2
1
277
(x)
124
99
(x)
(x)
863
1,161
Turkey
Svria
Iran..
Palestine and Transjordan
Saudi Arabia-.
I n d i a a n d dependencies
_ .
Ceylon__
_ .. . ... . . . . . .
French Indochina and French India
B r i t i s h M a l a y a - . . ._
.
...
Netherlands Indies . . - _
_
Philippine Islands.
China
. ...
Hong Kong
__.. .
Japan
.
11,679
364
6
42
1,269
146
86
159
253
3,802
31
49
228
51
4
(x)
1
-.
Asia...
Australia
N e w Zealand
6,590
147
2,612
.__
•
_
_
.
__.
_
.
. . . .
'
(13)
(x)
(x)
(13)
3
1
1
14
(x)
(x)
(13)
1
(x)
.
.
.... .
.
..
47
6,131
164
79
1,163
174
125
757
7
2
3,899
03)
142
751
352
1,617
3,623
2
2
344
16
3
765
5
7
...___.
.
38
1
()
_ __
. . .
_.__.
....
1
(x)
()
5,194
544
12,327
120
238
731
128
68
3, 208
15
530
6, 656
24
31
42
17
13
(x)
333
30
2
72
83
730
15 560
162
16 3,085
66
34
38
78
135
368
22
32
48
107
908
i8l,164
155
3,541
2,932
133
47
166
229
31
435
11
' 4
28
1
388
1 245
65
85
i«12
4
843
114
33
178
44
i« 159
289
16 1,873
18
13
30
107
49
1,385
671
658
901
2
16
12
1
20
11
12
25
29
21
1,294
90
492
140
517
114
438
112
1
1«1
(x)
16 1,159
(x)
142
i« 582
90
2,726
i
2,192
418
168
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Oi
TABLE 42.— United States imports* by commodity groups and countries—1914, 1982, 1989, and 1946—Continued
[Value in thousands of dollars]
M a c h i n e r y a n d vehicles
C h e m i c a l s a n d related p r o d u c t s
Miscellaneous
a
Country1932
Africa
F r e n c h Morocco
_._ ._
Algeria
.._
T u n i s i a __ . , _ _ _ _ _
_
Egypt
B r i t i s h W e s t Africa
Belgian Congo
U n i o n of S o u t h Africa.. _
1939
1
-..
__.
..
__L
_ _ _ _ _
._
(18)
(20)
(21)
(22)
3
(x)
(18)
1939
98
(18)
(x)
M
1946
O
602
485
515
1,602
92
18
19
210
18 22
203
20
101
18 4
9
1
22 150
24
6
222
25
48
13
438
19
14
624
225
1
1
5
(x)
1
1939
485
2
20 88
1932
1946
18 29
400
23
224
(21)
(22)
x Less than $500.
*General imports, 1914,1932, and 1946; imports for consumption, 1939.
1 Includes trade with the Virgin Islands, which is excluded in 1939 and 1946.
2
Includes Canal Zone.
3
Included with Panama, Republic of.
4
Excludes the northern part of Ireland.
«Includes the northern part of Ireland.
• Includes Austria.
78 Austria-Hungary.
Included with Germany.
9
Serbia, Montenegro, and Albania.
i°
Includes Asia Minor, Armenia, Kurdistan, Mesopotamia, Syria, and Arabia.
11
Included with Turkey.
12 Included with Turkey.
1932
1946
(21)
22 103
25
1
275
13 Includes Arabian Peninsula states n. e. s.
14 Includes Burma.
is Includes Manchuria.
16
Includes Chosen.
17 Includes Spanish Morocco.
18
Includes
Tangier.
18
Includes Tunis and other French Africa n. e. s.
20 Includes Tunisia.
21
Included with Algeria.
22
Includes Anglo-Egyptian Sudan.
23
Includes other British South Africa.
Source: Special Programs Division, Areas Branch Office of International Trade,
Department of Commerce.
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Ul
H
Ul
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Ul
FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
B.
167
AMERICAN LOANS AND GRANTS TO FOREIGN COUNTRIES IN THE
INTERNATIONAL TRANSACTIONS OF THE U N I T E D STATES
I t can be assumed, in response to item 15, t h a t all aid—whether in
the form of loans or grants—made available to foreign countries since
the end of World War I I has been spent on American goods and services, whether directly by the receiving country or by other countries
to which the funds were transferred.
The amounts involved are approximately 15.6 billion dollars for the
period covered—July 1, 1945, to June 30, 194.7. Of this total, loans
and credits accounted for about 7.9 billion dollars and gifts and grantsin-aid for about 7.7 billion dollars. Government loans and credits included as major items, lend-lease credits, surplus property credits, disbursements by the Export-Import Bank, dollar disbursements by the
World Bank and Fund, and advances under the British loan are included under this heading.
Capital outflow on private account consists mainly in the repurchase, redemption, or amortization of United States obligations to
foreigners. A list of new loans by private persons in the United States
to foreigners since June 30, 1945, is given in table 44.
Gifts and grants-in-aid, or unilateral transfers as they are called in
technical terminology, included straight lend-lease, contributions to
UNRRA, and other transfers by the Government, and gifts in cash
and in kind by private individuals and organizations in this country.
With two significant exceptions, all loans and grants made by the
United States Government have been " t i e d " to the export of American
goods and services. The first of these exceptions was the 10-percent
"free fund" contribution to U N R R A , amounting to about $270,000,000, which that organization was free to spend where it wished.
Actually, the money was spent mostly in Canada and Latin-American
countries' which, since they were importing more from us than we
were from them, must be considered to have respent the money in the
United States.
The second major exception was the British loan, which in effect
became part of the general dollar resources of the United Kingdom.
As of August 20, 1947, the British had drawn $3,350,000,000 on the
loan, of which $3,115,000,000 had been spent. During the same
period, according to public statements by the Chancellor of the Exchequer, the British spent $1,800,000,000 on United States goods and
services for their own use and for shipment to Germany. Against this
they had sales to us of $450,000,000, leaving a net of $1,350,000,000.
Of the remaining $1,765,000^)00 (i. e., $3,115,000,000 minus $1,450,000,000), $960,000,000 was used to make purchases in Canada and
Latin America, $150,000,000 for dollar purchases elsewhere, mainly
in Europe. An additional $620,000,000 (net) was made available to
other sterling area countries for expenditures in the United States and
foreign countries. The remaining $35,000,000 is accounted for by the
subscription to the International Bank.
Between August 20 and December 1, 1947, the United Kingdom
drew upon its gold reserves by $412,000,000 and purchased $240,000,000 of dollars from the International Monetary Fund. Canada and
the sterling area countries had also used part of their reserves to pay
for excess imports from this country.
168
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
Thus it is fair to say that as of December 1, substantially all of the
postwar loans and grants by the United States Government have
been used, directly or indirectly, to purchase American goods and
services. T h e amounts of such loans and aid by quarters from July
1, 1945, to June 30, 1947, are shown in table 43.
TABLE 43. —Outflow of United States long-term capital and unilateral transfers,
July ly 1945 to June 80, 1947
[In millions of dollars]
5
321
71
25
1
1
495
271
135
137
173
414
333
LT<D
'J
Total Jul
1945 to
30, 1947
Second
quarter
First
quarter
Fourth
quarter
1947
Third
quarter
First
quartet
Fourth
quarter
Third
quarter
Loans and other investments:
Government:
Lend-lease credits
Credits on sales of surplus property
Export-Import Bank
Dollar disbursements by World Bank
and F u n d . _
._
__
British loan
Other
Second
quarter
1946
1945
78
110
231
24
201
270
14
113
280
6 1,382
89 1,133
249 1,530
400
17
200
2
500
27
148 148
950 2,050
96
48
501
418
543
920
836
697
178
251
177
226
201
69
679
669
720 1,146 1,037
Gifts and grants-in-aid (unilateral transfers):
Government
___ __ __ 1,627
119
Private
j
988
140
768
184
736
203
636
191
391
220
590
185
567 6,303
209 1,451
Total gifts and grants-in-aid
1, 746 1,128
952
939
827
611
775
776 7,754
Grand total
2,425 1,797 1,672 2,085 1, 864 1,377 2,034 2, 382]15,636
Total Government
Private
Total outflow of United States longterm capital
_.
934 1,490 6,339
325
116 1,543
766 1,259 1,606 7,882
Source: International Economics Division, Office of Business Economics, Department of tUommerce.
POSTWAR FOREIGN LENDING BY PRIVATE UNITED STATES SOURCES
A list of foreign loans by private lenders in the United States is
attached as table 44. I t is believed to be relatively complete. Except for the stock issues and a few short-term loans, the issues were
predominantly for refunding purposes and did not supply foreign
countries new capital. T h e figures for each issue represent the principal amount of bond and debentures and the amount a t offering
price for stock issues. Approximately 85 percent of these amounts
were subscribed in the United States. The other 15 percent were
subscribed abroad and do not represent foreign lending by this
country.
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES 1 6 9
T A B L E 44.—Foreign credits
Country
Argentina..
Australia..
by private United States lenders from June 30, 1945, to
July 1, 1947
Date
Description of credit
February 1947..
August 1946--.
Swift International Co., Ltd., certificates for capital sharesCommonwealth of Australia bonds, 10 years—334 percent
due 1956; to redeem State of N . S. W. external 5 percent
of 1958.
Commonwealth of Australia bonds, 33^ percent—20 years
due 1966; to redeem State of N . S. W., 5 percent of 1959
and State of Queensland, 6 percent of 1947.
Sydney County Council, N . S. W., external sinking fund,
3^5 percent 10 years due 1957; to redeem city of Sydney
external sinking fund, 5 ^ percent due 1955.
Commonwealth of Australia, 3% percent—15 years due
1962; to redeem 43^ percent bonds due 1946.
Commonwealth
of Australia, external sinking fund bonds,
Zx/i percent—10 years due 1957; to redeem external 5 percent due 1957.
Commonwealth of Australia, external sinking fund bonds
V/2 percent 20 years due 1967; to redeem external 5 percent due 1957.
Based on gold collateral
Province of Alberta serial bond, 2%-Z\i percent, maturing
1951-60; to provide funds for debt reorganization plan of
1945.
New Brunswick debentures, 1\i percent, due 1961, to redeem 4 percent debentures due 1947.
Canadian Pacific Ry., 2 percent equipment trust certificates, series H, due 1955; to redeem all the collateral trust
4H percent, due 1946.
Province of Alberta, serial debentures
Northwestern Utilities, Ltd., first mortgage 4 percent
sinking fund bonds A Jan. 1,1966.
Newcor Mining & Refining, Ltd., common shares (no par
value).
Canadian Utilities Co.:
First mortgage 4 percent series 1971
First mortgage 3% percent B Feb. 1,1971
Canadian Pacific Ry, series F , equipment trust certificates.
1.6 percent due August 1946 to February 1953.
British Columbia Telephone Co. (1971) first mortgage 25year bonds, 3% percent, series A.
Dominion Steel & Coal Corp., Ltd., first mortgage 15-year
2>YL percent bonds, series A, 1961.
Saguenay Power Co., Ltd., first mortgage 3 percent sinking fund bonds, series A, Mar. 1,1971.
Gaspe Oil Ventures, class A common stock
±
Shawinigan Water & Power Co. (Mar. 15,1971) first mortgage coll. tr. bonds, series M, 3 percent.
Winnipeg Electric Co. 4 percent, series sinking fund first
mortgage bonds, 1971.
MacLaren-Quebec Power Co., 3 percent first mortgage
sinking fund bonds, series A, May 1,1969.
Nova Scotia Light & Power Co., Ltd., 3% percent first
mortgage sinking fund bonds, May 1,1971.
Canadian Pacific Ry., series G, equipment trust certificates, 1}6 percent, due December 1946 to December 1953.
Saguenay-Quebec Telephone Co., 334 percent, series A and
4 percent series B, 1966.
Great Lakes Paper Co., Ltd., first mortgage sinking fund
bonds, 3H percent, 1966.
Gatineau Power Co., 3 percent first mortgage bonds,
series C, June 15,1970.
2% sinking fund debenture, June 15,1961
Gold City Porcupine Mines, Ltd., common stock (P. V.
$1 Canadian).
Cardiff Fluorite Mines, Ltd., common stock P . V. $1
McCall-Frontenac Oil Co., Ltd. (Oct. 1, 1971) 3 percent
first mortgage and coll. tr. bonds 1946 series.
Northwestern Utilities, Ltd., 25-year 33^ percent bonds...
Buffonta Mines, Ltd., common capital stock (P. V. $1
Canadian).
Giant Yellowknife Gold Mines, Ltd., common shares
( P . V . $1).
Housing Enterprises of Canada, Ltd., 2\i percent fixed
interest debentures, Mar. 1,1966.
Fraser Companies, Ltd., 3 percent first mortgage and
coll. tr. bonds Jan. 1,1967.
Northern Electric Co., Ltd., 334 percent first mortgage
bonds due January 1967.
Canadian Admiral Corp., Ltd., common stock
December 1946.
January 1947, _.
February 1947..
Junel947
Bolivia..
Canada. .
l
April 1947..
June 1945..
September 1945.
October 1945-..
December 1945.
January 1946. _.
do
February 1946..
.—.do
March 1946.
do
do
do
do
April 1946.. .
May 1946__do
June 1946...
July 1946--.
July 1946-...
do
do
do
September 1946.
____do
November 1946.
do
—.do.
December 1946.
....do.
January 1947
....do.
69140—48-
-12
Amount
Mil.ofdol.
3.9
20.0
25.0
8.5
45.0
19.0
19.0
5.0
26.1
4.5
20.0
2.0
1.0
.2
1.0
2.5
12.6
3.5
1.8
23.2
.7
23.3
3.0
1.0
5.0
19.5
.3
4.8
45.0
9.5
.1
.2
.4
1.7
.5
.2
3.7
3.5
6.0
.1
1 7 0 FOREIGN ASSETS AND LIABILITIES OF T H E UNITED
T A B L E 44.—Foreign credits
Country
Canada -
Date
l
STATES
by private United States lenders from June 30, 1945f to
July 1, 1947— Continued
D e s c r i p t i o n of credit
....
Amount
F e b r u a r y 1947--. T h e C i t y of M o n t r e a l refunding d e b e n t u r e s Oct. 15,1967..
P r o v i n c e of N e w B r u n s w i c k 5 y e a r 2H p e r c e n t d e b e n t u r e s
A p r i l 1947
M a y 1,1952.
D o n n a c o n a P a p e r C o . , L t d . , 15-year 3 H p e r c e n t b o n d s . _ .
M a y 1947
Gurney F o u n d r y Co., Ltd., 3 percent mortgage bonds
J u n e 1947.:
A p r . 1,1948 t o 1952.
N e w B r u n s w i c k Oil F i e l d s , L t d . , c a p i t a l shares (no p a r
Do
value).
Chile
1947
A d v a n c e s for taxes o n copper as follows: M a r . 21, 1947—
$10,000,000; F e b . 1947—$7,000,000.
T a x e s o n copper sales for 1946 t o t a l e d $13,300,000 t h e r e b y
l e a v i n g a b a l a n c e of $3,700,000.
T o finance s h i p m e n t s of r a w c o t t o n
.
China.
A p r i l 1947
E x p r e s o Aereo I n t e r - A m e r i c a n o S. A . , 4 p e r c e n t conCuba
N o v e m b e r 1946..
v e r t i b l e n o t e s , d u e N o v e m b e r 1951.
O r a n g e - C r u s t d e C u b a , S. A . ( C u b a ) , c o m m o n stock, P .
J a n u a r y 1947
V . $1.
B o w a t e r ' s N e w f o u n d l a n d P u l p & P a p e r M i l l 3 ^ percent
NewfoundlandM a y 1946
b o n d s d u e J u n e 1, 1968: t o retire other b o n d s a n d t o
finance i m p r o v e m e n t s a n d a d d i t i o n s .
E x p o r t - I m p o r t B a n k a n d 50 commercial b a n k s each t o
Netherlands
... Do..
.
p a r t i c i p a t e i n a b o u t half of $200,000,000 loan—1 a n d 2
years a t 234 p e r c e n t .
10-year informal a g r e e m e n t b e t w e e n K L M Airlines,
J u l y 1946
N e t h e r l a n d s , a n d K i d d e r P e a b o d y , N e w Y o r k , for p u r chase of n e w e q u i p m e n t i n t h e U n i t e d S t a t e s .
10-year external s i n k i n g fund, 3% percent; to finance postM a y 1947
war reconstruction.
3-year r e v o l v i n g credit, 2 percent for 2 years a n d 2\i
J u l y 1946
Norway
percent thereafter.
K i n g d o m of N o r w a y E x t e r n a l 10-year, V-A percent d u e
A p r i l 1947
A p r i l 1957, to increase dollar exchange reserves.
L o a n t o N a t i o n a l B a n k of N i c a r a g u a t o r e h a b i l i t a t e agriNicaragua
J u n e 1947
c u l t u r e , 3 ^ percent for 8 y e a r s . B a s e d o n gold.
Panama
T A C A A i r w a y s , S. A., capital stock P . V . $5
M a y 1946
(
P
e
r u v i a n I n t e r n a t i o n a l A i r w a y s , 50-cent convertible prePeru...
J a n u a r y 1947
1 ferred s t o c k , - a n d c o m m o n stock.
T A C A A i r w a y s , S. A . 4 percent convertible notes J u l y 15,
do
Panama
__
1959.
M a r c h 1947
4 years a t 2H p e r c e n t over c u r r e n t A m e r i c a n discount rates;
Rumania
t o finance g r a i n s h i p m e n t . Based on gold.
Spain.
T o Spanish E x c h a n g e I n s t i t u t e t o finance c o t t o n purchases
October 1946
in United States.
U n i o n of S o u t h N o v e m b e r 1946. _ A m e r i c a n - A n g l o T r a n s v a a l I n v e s t m e n t C o r p . , L t d . ,
c a p i t a l stock.
Africa.
\Mil.ofdol.
77.8
5.0
5.5
.2
.3
3.7
40.0
.3
.1
7.5
93.3
8.0
20.0
16.0
10.0
4.5
6.8
2.1
.1
1.0
7.0
2.2
1.0
iExcludes the $250,000,000 International Bank debentures sold to the American public in July, 1947.
C.
POSTWAR FOREIGN LENDING
BY FOREIGN
COUNTRIES
Several countries have made foreign loans since VJ-day and have
made advances to other countries connected with the financing of
current trade balances. Principal among these lending countries is
Canada as a result of loans to eight countries amounting to $594,000,000 plus the $1,250,000,000 credit to the United Kingdom. The
total amount advanced by Canada under these loans was, as of June
18, 1947, $1,059,000,000 (see table 45). Sweden also has made
financial aid available to foreign countries in substantial amount.
The largest credits were to the U. S. S. R., Norway and the United
Kingdom. Total utilization of all Swedish loans as of December 31,
1946, amounted to $204,000,000. The amounts authorized totaled
$765,000,000. Loans by the Argentine Government (as listed in table
46) totaled about $970,000,000 but no data are available relative to
the amount utilized.
Many of these credits have been the result of payments agreements
which provide for the accumulation of balances by either country
depending on the relative volume of imports and exports. In most
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES 1 7 1
<cases a maximum amount to be accumulated was specified, any excess
to be paid in gold or some transferable currency. T h e usual period
is 1 year with the possibility of renegotiation after that time.
Others among the listed loans are still in the course of negotiation,
or have not been ratified by one or by either of the countries involved.
This is particularly true of the Argentine loans. Even among the
loans or credits that have been made effective there is a scarcity of
current data regarding the extent of utilization.
Lists of the available data regarding foreign loans made b y countries
other than the United States are given in tables 46 to 49. They are
not complete b u t are given primarily for purposes of illustration.
T A B L E 45.—Postwar Canadian
loans and advances to foreign governments
1
[In millions of Canadian dollars]
Country
Amounts
authorized
Drawn to
Dec. 31,
1946
100.0
60.0
19.0
242.5
125.0
15.0
30.0
3.0
1, 250. 0
52.6
16.5
3.9
143.8
64.0
5.4
16.4
540.0
1,844. 5
845.5
Export credits:
Belgium
China
Czechoslovakia
France
Netherlands
Netherlands Indies
_.
Norway
U. S. S. R.2
Other loans: United Kingdom
Total
2.9
EncumAdvanced
as of
as of June bered
June
18,
18,1947
1947
56.0
23.3
5.2
169.3
87.1
6.7
18.9
2.9
690.0
10.5
6.2
16.7
1
The terms of the export credits were 2*4 to 3 percent interest, 54 years maturity, and payments of principal beginning 1 to 6 years from date of loan. The loan to Britain bears 2 percent interest, and is repayable in 50 annual installments beginning in December 1951.
2 Excluding the wheat loan to U. S. S. R. of $10,000,000 which was granted in 1943 and 1944 and thus was
not a postwar loan.
T A B L E 46.—Postwar foreign
loans by Latin-American
countries
ARGENTINA
Borrowing country
Amount
In millions
110 (pesos)
Belgium-Luxemburg.
Bolivia (in 3 parts).. 50 (pesos)
100 (pesos)
do
Chile (in 3 parts)
do
300 (pesos)
do
<
Date
Remarks
Maximum accumulation of balances,
no interest. Repayment in goods
within 3 years.
Signed Mar. 26, 1947, Finance balance of trade. Interest,
ratified by Bolivia
3.5 percent. Repayment in 10
May 26, 1947, and
semiannual installments.
Argentina, Sept. 23,
1947; not yet effective as of Sept 30,
1947.
do
_
Finance development corporation.
Interest, 4 percent.
do.
Finance public-works program. Interest, 3.75 percent. Repayment
in 50 years through semiannual
payments beginning in tenth year.
Negotiated Dec. 13, Finance trade deficit. Revolving
1946 (not yet raticredit. Interest, 3.5 percent. Refied).
payment in 5 years beginning at
end of 3 years.
do
Finance public-works p r o g r a m .
Bonds to be purchased at 96 percent of par. Interest, 3.75 percent.
Repayment in 25 years.
do.
._
Finance economic development. Interest, 4 percent.
_- May 14,1946
1 7 2 FOREIGN ASSETS AND LIABILITIES OF T H E UNITED STATES
T A B L E 46.—Postwar foreign
loans by Latin-American
countries—Continued
ARGENTINA-Continued
Borrowing country
Czechoslovakia
Date
Amount
In millions
_ _ 20 (pesos)
Remarks
July 2, 1947
Finance exchange of goods. Interest, 3 percent. Repayment, end of
each year.
__ 75 (pesos)
Not yet formalized. Finance purchase of Argentine prodFinland
May 1947.
ucts.
France .
150 (oesos)
__ _
Oct. 22, 1945
Finance balance of payments deficit.
Utilized Dec. 31, 1946: 150,000,000
pesos. Interest, none. Repayment after 3 years.
450 ( a d d i t i o n a l July 23, 1947
Finance balance of payments deficit.
Provides 600,000,000 peso credit
pesos).
which incorporates previous 150,000,000 peso credit. Repayment
after 3 years (or 5 years by mutual
consent). Utilized Dec. 31, 1946—
94,000,000 pesos (in advance of
formal signature).
To finance purchases of cereals, raw
]!taly
700 (pesos)
Oct. 13, 1947
materials, etc. Agreement runs
through 1951. Terms apparently
similar to other
recent Argentine
agreements. 1
Rumania
25 (pesos)
Oct. 10,1947
For purchase Argentine products.
Credit available only against gold
collateral. Interest- 3 ^ percent.
Repayment not specified. Agreement expires July 31,1950.
Spain
30 (pesos)*
Apr. 30,1946
Finance purchases of foodstuffs.
Interest, 2.75 percent. Repayment, 3 years.
350 (pesos)
Oct. 30,1946-—
_ Revolving credit to finance purchases of Argentine products. Interest, 2.75 percent. Repayment,
subject to negotiation after 3 to 5
years.
400 (pesos)
do
Bonds purchased at 96 percent to
repay outstanding debts. Interest,
3.75 percent. Repayment in 25
years.
United Kingdom._. Open end until Sept. June -14,1940 and Sept. Cover all trade and payments; bal17, 1946; no fur17, 1946.
ances also used for debt repatriather credit under
tion. Argentina's blocked sterling
Sept. 17, 1946, arrose from equivalent of 1.4 billion
pesos in August 1945 to 1.75 billion
rangement.
at the end of 1946, representing a
credit extension of 350 million pesos
or about 100 million dollars.
The Sept. 17, 1946, agreement provided convertibility of current
sterling and some,blocked sterling;
the blocked balance in August or
September 1947 was reported as
1.58 billion pesos—a decline of about
50 million dollars since Dec. 31,
1946. The balance now blocked,
plus about 180 million dollars more,
is to be used for purchase of Britishowned utilities under present
plans.
i New York Times, Oct. 14,1947.
BRAZIL
Belgium.
10 (Belgian francs) 2_ May 17,1946.
Czechoslovakia.
20 (United
dollars).
Finland.
10 (United
dollars).
States
May 31,1946.
France.
25 (United
dollars).
States
Mar. 8,1946..
States
Oct. 16,1946
Finance current payments. Repayment within 3 years after expiration
of agreement. Agreement duration
2 years and thereafter until terminated on 3 months' notice.
Finance current payments. Interest, 2 percent. Repayment in 5
years beginning in 1952. $10,000,000
available in 1947.
Finance purchase of Brazilian products. Interest, 4 percent. Repayment by 1960 beginning in 1951.
Finance balance of payments deficits.
Utilized Dec. 31, 1946, $3,700,000.
Utilized June 30, 1947, $25,000,000.
Interest and repayment terms not
known.
* A confidential agreement apparently provides either that the credit may reach : ,000,000,000 Belgian
francs or perhaps that the equivalent of 500,000,000 cruzeiros shall be the maximum.
FOREIGN ASSETS AND LIABILITIES OF THE UNITED STATES 1 7 3
TABLE 46.—Postwar foreign loans by Latin-American
countries—Continued
BRAZIL—Continued
Borrowing country
Date
Amount
In millions
United Kingdom... Open end until
June 2, 1947; no
further credit under June 2, 1947,
arrangement.
June 20, 1940, and
June 2,1947.
Remarks
Cover all trade and payments; balances also used for debt repatriation. Brazil's blocked sterling rose
from about $181,000,000 in August
1945 to roughly $200,000,000 at the
end of 1946, an increase of about
$20,000,000. The partial agreement
effective June 2,1947, provided convertibility for current sterling.
Brazilian blocked sterling on Apr.
1,1947, was $245,000,000.
URUGUAY
Belgium,
. . 5 (Belgian francs) _ _ _ June 14,1946-
Czechoslovakia
1
(United
dollars).
France
6 (pesos)
Italy
3 (pesos)
United Kingdom
Open end
States Jan. 2, 1947
Sept. 17,1946
_. Signed Feb. 26, 1947,
but not yet effective.
Sept. 16, 1940 (July
1947 a g r e e m e n t
never signed.)
Effective on ratification. Finance
current payments. Interest, none
mentioned. Repayment within 3
years after expiration of agreement.
Agreement duration 1 year and
thereafter until terminated on 3
months' notice.
Not effective until ratified. Finance
current payments. Interest and
repayment terms not known.
Finance purchases of Uruguayan
products. Terms not available.
Finance purchases of wool. Terms
not available.
Covers all trade and payments.
Uruguay's blocked sterling rose
from 52.4 million dollars in August
1945 to 68.7 million dollars on Dec.
31, 1946, an increase of 16.3 million
dollars. As of June 30, 1947, this
balance was 69 million dollars.
VENEZUELA
1 (United States dol- June 6,1946
lars) .
Ecuador.
Finance Ecuador's investment in
shipping concern. Utilized Dec.
31,1946,0.2 million dollars. Repayment in 18 annual payments ending 1966. •
TABLE 47.—Postwar foreign credits by private British lenders
Country
Austria
Czechoslovakia
France
Hungary
Italy
Amount
Date
Description of credit
Dollar
equivalent
in
Mil.ofdol.
6 November 1946— To finance Austrian purchase of wool from Australia or
United Kingdom, processed wool to be delivered by
Austrian factories to United Kingdom interests for
sale.
4 March 1946
For raw material imports; arranged by principal
Czechoslovak banks and guaranteed by National
1
Bank of Czechoslovakia to be renewed from year to
year.
50 January 1947
For French woolen industry; revolving credit with all
London banks participating.
4 Late in 1946 . . For raw material imports. Exchange risks guaranteed
by Bank of France.
.
2 1947
For purchase of certain raw materials of sterling.area
origin.
40 Unknown
Cidino construction firm received amount for construction of hydroelectric plant near Costa.
1 7 4 FOREIGN ASSETS AND LIABILITIES 0 ^ THE UNITED STATES
TABLE 48.—Swedish contributions to the reconstruction of other countries
[Million kronor]
1. Gift contributions:
(a) Government appropriations for—
help to refugees in Sweden (Sw. kronor)
relief work abroad (partly in Sw. kronor)
contributions according to the Washington Agreement of 1946 (not yet disbursed) _.
422
500
(b) Private contributions: Financial aid to relief work abroad (about)
Total (about)
2. Credits granted before or in close connection with the cessation of hostilities.
Amounts
granted
(a) C r e d i t s t o F i n l a n d d u r i n g t h e w a r
(6) C r e d i t s for n o n c o m m e r c i a l p u r p o s e s ( c o n s u m p t i o n expenses i n
Sweden):
Denmark:
E x p e n s e s of D a n i s h legation i n S t o c k h o l m , including
t r a i n i n g of police corps_
_
______
E x p e n s e s for D a n i s h refugees i n S w e d e n (credit w r i t t e n
off)
N e t h e r l a n d s : E x p e n s e s for r e p a t r i a t i o n , s h i p p i n g expenses._
Norway:
F o r auxiliary p u r p o s e s a n d o t h e r expenses for refugees /
in S w e d e n (credits w r i t t e n off)
_ _
\
E x p e n s e s of N o r w e g i a n legation i n S t o c k h o l m
- _
T r a i n i n g of police corps, e t c
T o t a l (6)
(c) C o m m e r c i a l credits e x t e n d e d before t h e cessation of hostilities
(in some cases final a g r e e m e n t s h a v e , for t e c h n i c a l reasons, n o t
been concluded until somewhat later):
D e n m a r k , reconstruction purposes
__
Finland, reconstruction purposes
Netherlands, reconstruction purposes.
_
Norway:
Reconstruction purposes
S h i p b u i l d i n g credit
G r e a t B r i t a i n , sterling b a l a n c e s t o b e h e l d b y S w e d e n in
accordance w i t h a special p a y m e n t s a g r e e m e n t of 1947 _
T o t a l (c)
:__..
(d) O t h e r c o m m e r c i a l c r e d i t s e x t e n d e d before A u g . 1,1945:
France, current payments
Netherlands, current payments
T o t a l (d)
(c) O t h e r c r e d i t s e x t e n d e d :
G r e a t B r i t a i n (this credit w a s e x t e n d e d d u r i n g t h e w a r a n d
is i n t h i s respect referable t o (a) a b o v e ; i t w a s , h o w e v e r ,
consolidated d u r i n g t h e s p r i n g of 1945 a n d is therefore inc l u d e d u n d e r (c) ...,
.;
E t h i o p i a (this credit is i n t e n d e d for salaries t o Swedish
officials a n d is therefore of a n o n c o m m e r c i a l n a t u r e — a s in
t h e case of t h e c r e d i t s u n d e r (6)—but w a s g r a n t e d a t a
later date)
T o t a l (e)
T o t a l c r e d i t s (a) t o (e)
_
.
J
1
165
132
125
922
Disbursed
D i s b u r s e d u l y 1, 1946
as p e r J u n e Jto
J u n e 30,
30, 1947
1947
218
218
70
61
1
50
25
50
24
2
100
50
15
180
100
50
3.5
80
390
368.5
110
150
12
75
94
150
8
73
200
140
129
40
11
9
190
19C
774
684
-2
1
6
29
80
13.5
80
13.5
11
93.5
93.5
11
50
50
7.5
7.5
57.5
57.5
1,533
1,421.5
41
i Credits extended against receipts of sterling, tied up for a period to be settled at a later date. Theamounts are quoted on the basis of the exchange rates prevailing in 1945.
FOREIGN ASSETS AND LIABILITIES OF THE UNITED STATES 1 7 5
TABLE 48.—Swedish contributions to the reconstruction of other countries—Con.
3. Credits granted during the postwar period:
Amounts
granted
Denmark (purchases of wooden barracks)
Finland (current payments)
Yugoslavia (current payments).-.
Poland:
Current payments
Financing specified Swedish exports to Poland
Great Britain (see under 2 (c) above).
U. S. S. R. (financing specified Swedish exports to U. S. S. R.)
Czechoslovakia (current payments).
_'
Disbursed Disbursed
as per June July 1,194630, 1947 June30,1947
10
30
5
100
21.6
4. Reciprocal overdraft facilities within the framework of general payments agreements:
Belgium
Denmark
France
Netherlands
Norway
Hungary.
90
49
2
1,000
24
1,190.6
Total.
19
4
_
180
121
Mutual overdraft
facilities
100
30
60
31.6
30
5
Total overdraft facilities
256.6
Source: Memorandum on The Long-Run Economic Outlook from the Board of Directors of Sveriges
Riksbank to the King-In-Council, dated Oct. 17, 1947, pp. 14 to 16, inclusive, Stockholm, 1947.
TABLE 49.—Postwar foreign loans and advances by Switzerland
[Amounts authorized in millions of Swiss francs]
Commercial credits by Government of Switzerland:1
Belgium-Luxemburg
France
United Kingdom
Netherlands
_^
Norway
Czechoslovakia
Total. _*
Private loans:
Belgium telegraph and telephone service
Denmark
Netherlands 5
2
3
4
41. 0
300. 0
260. 0
26. 0
5. 0
10. 0
642. 0
50. 0
30. 0
50. 0
Total
130.0
Total, all types
772. 0
1
Mostly credits under payments agreementsrto be utilized within from l to 5 years; repayment terms
have
in general been left for later negotiation.
2
Original credit of 50,000,000 reduced.
s4 Original credit of 260,000,000 and raised August 1946.
Credit expressed as 15,000,000 pounds sterling.
8
85 percent guaranteed by the Swiss Confederation, duration 5 years.
CHAPTER
y i . P R O B L E M OF S E R V I C I N G T H E D E B T
This chapter is limited to a discussion of the problem raised by item
17 of the proposed Senate Resolution 103—the problem of servicing
the debt.
Item 17. What changes are necessary in this country's import tariffs to make
possible the repayment of the loans and investments already made and contemplated by the United States and by private interests?
I t is impossible to state in precise quantitative terms the effect of
tariff changes on the flow of imports. Tariff reductions, by augmenting the outflow of dollars, increase the ability of foreign countries to
meet interest and amortization payments on external obligations.
However, the problem of servicing such obligations is not one of tariffs
alone, nor should the effects of tariff changes be considered in isolation
from other factors bearing on the international transactions of the
United States. The most favorable conditions for debt service include not only the reduction of tariffs but related objectives of United
States economic policy, notably:
1. The continuance of conditions of high employment in the United
States and of normal long-term growth of the economy.
2. The recovery and expansion of European production and foreign
trade.
3. The recovery of devastated areas elsewhere in the world and the
development of relatively unindustrialized areas.
4. A reduction in the obstacles to the freer flow of goods and capital
across national boundaries.
5. The continuing investment abroad of a small percentage of
United States net savings.
There are two possible means by which foreign countries can service
their debts to the United States: First, by utilizing their existing gold
and dollar assets; and, second, by acquiring additional foreign exchange. The acquisition of additional dollars by the outside world
depends on the ability of foreign countries to market goods and services
in this country and to attract United States capital. Individual countries can undertake measures to increase their foreign exchange earnings by stimulating exports and decreasing imports, but it is only by
an over-all increase in dollar disbursements by the United States that
foreign countries as a whole can increase their dollar receipts and
service their external debts without sacrificing imports of goods and
services from this country.
Consideration should be given/among other factors, to prospective
population growth, which will add to the need for expansion of production and foreign trade in many countries and will, where excessive,
hamper their efforts to achieve the necessary balance in their international payments.
176
FOREIGN ASSETS AND LIABILITIES OF T H E U N I T E D STATES
177
PROBABLE VOLUME OF DEBT SERVICE
As of the end of 1946 American private investments in and obligations due from foreign countries, plus those due to this Government
other than World War I debts, amounted to $21,260,000,000. At
that time commitments had been made which when utilized will add
$5,100,000,000 to that figure. During 1946 the investment income
received in the United States from foreign countries amounted to
$611,000,000; 1 preliminary estimates indicate that the 1947 total was
about $200,000,000 higher. Of the 1946 receipts about $21,000,000
was interest from obligations due to the Government. Receipts from
the latter will increase on the basis of present commitments to a peak
of about $200,000,000 in 1951-52. Receipts on private investments
are particularly difficult to forecast. However, it is estimated t h a t
total investment income received in 1952 will probably be between
$800,000,000 and $1,000,000,000—excluding income on any loans not
yet committed as of December 1, 1947.
Existing contracts require annual repayments (amounting in 1952
to $250,000,000) of principal on the debt due this Government. To
this must be added about $160,000,000 of repayments of private
portfolio investments. I n 1952, therefore, foreign countries should
be paying to the United States as service (interest and amortization)
on loans and investments about $1,200,000,000 to $1,400,000,000.
Additional loans in connection with the European recovery program
will add to these amounts.
CONCLUSION
If the conditions stated above as the objectives of United States
economic policy are realized, it is reasonable to expect t h a t the magnitude of our imports, tourist expenditures, and capital exports will be
such as to provide enough dollars to^ enable the world to pay for a high
level of dollar imports and to service existing and contemplated
foreign investment. Under these conditions, any adjustments which
foreign countries as a whole might be required to make to insure
payment of interest and amortization would entail little sacrifice.
However, failure to realize any of the foregoing objectives would make
such expectations less reasonable.
i Department of Commerce, Survey of Current Business, March 1947, International Transactions of the
^United States in 1946.
O
@FedFRASER