The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
80th Congress, 1st Session
House Document No. 365
REPORT OF ACTIVITIES OF THE NATIONAL
ADVISORY COUNCIL ON INTERNATIONAL
MONETARY AND FINANCIAL PROBLEMS
TO MARCH 31, 1947
MESSAGE
FROM THE
PRESIDENT OF THE UNITED STATES
TRANSMITTING
REPORT FROM THE NATIONAL ADVISORY
COUNCIL COVERING ITS OPERATIONS FROM
FEBRUARY 28, 1946, TO MARCH 31, 1947, AND
DESCRIBING
PARTICIPATION
OF THE
UNITED STATES IN THE INTERNATIONAL
MONETARY FUND AND THE INTERNATIONAL
BANK FROM OCTOBER 31, 1946, TO
MARCH 31, 1947
JUNE 26, 1947.—Referred to the Committee on Foreign Affairs
and ordered to be printed
UNITED STATES
GOVERNMENT PRINTING OFFICE
63532
WASHINGTON : 1947
LETTER OP TRANSMITTAL
To the Congress of the United States:
On March 8, 1946, I sent to the Congress a report of the National
Advisory Council on International Monetary and Financial Problems
describing the operations of the Council during the preceding 6 months
in coordinating the foreign financial activities of the Government.
On January 13, 1947, I sent to the Congress a National Advisory
Council Report on Participation of the United States in the International Monetary Fund and the International Bank for Reconstruction and Development to October 31, 1946.
I have now received from the National Advisory Council a report
covering its operations from February 28, 1946 to March 31, 1947,
and describing, in accordance with section 4 (b) (5) of the Bretton
Woods Agreements Act, the participation of the United States in the
International Monetary Fund and the International Bank from
October 31, 1946 to March 31, 1947.
The report is attached hereto.
H A R R Y S.
T H E WHITE HOUSE,
TRUMAN.
June 26, 1947.
m
TABLE OF CONTENTS
I. Organization of the Council:
Statutory basis
Reports
Membership
Procedure
II. Activities of the Council from February 28, 1946, to March 31,1947
(other than those relating to the International Monetary Fund and
the International Bank):
The Anglo-American financial agreement
_—
Export-Import Bank credits
The Philippine loan
War settlements arrangements and credits
Office of Foreign Liquidation Commissioner credits
United States Maritime Commission foreign credits
War Assets Administration foreign credits
Credit terms
Relief
Other Council activities
President's Committee for Financing Foreign Trade
III. Activities of the Council from October 31, 1946, to March 31, 1947,
relating to the International Monetary Fund and the International
Bank for Reconstruction and Development:
Par values
Fund's service charge
_Other Council actions on Fund matters
Changes in rules and regulations of the Fund
Organizational change in the Fund
International Bank loan applications
Terms and conditions of Bank loans
Use of United States capital and flotation of securities
Organizational changes in the Bank
Membership in the Fund and Bank
United States payments to the Fund
United States payments to the Bank
IV. Survey of postwar foreign financial assistance extended by the United
" States Government:
Scope of opeiations through March 31, 1947
Present status
„,_„___
Pa
*#
1
1
2
2
3
4
6
6
7
8
9
9
10
11
12
13
14
14
15
15
15
15
16
16
16
17
17
18.
21
APPENDIXES
A. Sections of the Bretton Woods Agreements Act relating to the National
Advisory Council
B. Statistical appendix
Explanatory notes
26
27
27
Tables
1. United States Government loans and credits available to foreign
countries, July 1, 1945, to December 31, 1946, by country and
by lending agency
2. United States Government loans and credits utilized by foreign
countries from July 1, 1945, to December 31, 1946, by country
and by lending agency
3. Balances of United States Government loans and credits unutilized as of December 31, 1946, by country and by lending
agency
4. Repayments on United States Government loans and credits
from July 1, 1945, to December 31, 1946, by country and by
lending agency
5. Outstanding indebtedness of foreign countries on loans and
credits by the United States Government as of June 30,1945,
and December 31, 1946, by country and by lending agency.
6. Other postwar aid furnished by the United States Government
for use in foreign countries, as of December 31, 1946, by
country and by type
7. United States Government foreign financial aid agreements
July 1, 1945, to December 31, 1946, by country
8. Assistance to foreign countries through the United Nations
Relief and Rehabilitation Administration, by country
v
29
30
j
32
33
34
36
36
37
REPORT OF ACTIVITIES OF THE NATIONAL ADVISORY COUNCIL
ON INTERNATIONAL MONETARY AND FINANCIAL PROBLEMS
TO MARCH 31, 1947
I. ORGANIZATION OF THE COUNCIL
STATUTORY
BASIS
The National Advisory Council on International Monetary and
Financial Problems was established by the Congress in the Bretton
Woods Agreements Act (59 Stat. 512, 22 U. S. C. 286b), which was
approved by the President on July 31, 1945. The statute directs
the ©ouncil to coord&iate the policies and operations of the representatives of the United States on the International Monetary Fund and
the International Bank for Reconstruction and Development, the
Export-Import Bank of Washington and all other agencies of the
Government "to the extent t h a t they make or participate in the
making of foreign loans or engage in foreign financial, exchange, or
monetary transactions." The Council is also directed to advise and
consult with the President and the United States representatives on
the Fund and the Bank on major problems arising in the administration of the Fund and the Bank; and to recommend to the President
general policy directives for the guidance of the representatives of the
United States on the Fund and Bank. Portions of the statute stating
the duties and powers of the Council are presented in appendix A.
REPORTS
Since its first meeting on August 21, 1945, the Council has submitted three formal reports to the President and to the Congress as
follows:
Statement of the Foreign Loan Policy of the United States
Government by the National Advisory Council on International
Monetary and Financial Problems, forwarded to the President,
and transmitted by the President to the Congress on March 1,
1946 (H. Doc. No. 489, 79th Cong., 2d sess; subsequently
included as appendix B to H. Doc. No. 497, 79th Cong., 2d sess.).
Report of the National Advisory Council on International
Monetary and Financial Problems for the Period of the Last
Six Months, forwarded to the President, and transmitted by the
President to the Congress on March 8, 1946 (H. Doc. No. 497,
79th Cong., 2d sess.).
Report by the National Advisory Council on International
Monetary and Financial Problems with respect to the Participation of the United States in the International Bank for Reconstruction and Development and in the International Monetary
1
2
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
Fund to October 31, 1946, forwarded to the President, and
transmitted by the President to the Congress on January 13,
1947 (H. Doc. No. 53, 80th Cong., 1st sess.).
The present report covers the activities of the Council from February 28,1946, to March 31,1947, and includes a survey of foreign financial assistance extended by the United States Government since the
end of the war. I t also includes (see pt. I l l below) the second report
by the Council on participation of the United States in the International Bank for Reconstruction and Development and in the International Monetary Fund, covering the period from October 31, 1946,
to March 31, 1947.
MEMBERSHIP
The present members of the Council, according to law, are the
following:
The Secretary of the Treasury, John W. Snyder, Chairman.
The Secretary of State, George C. Marshall.
The Secretary of Commerce, W. Averell Harriman.
The Chairman of the Board of Governors of the Federal Reserve
System, Marriner S. Eccles.
The Chairman of the Board of Directors of the Export-Import
Bank, William McChesney Martin, Jr.
By agreement, the following serve as alternates:
Andrew N . Overby, Special Assistant to the Secretary of the
Treasury.
William L. Clayton, Under Secretary of State for Economic
Affairs.
Thomas C. Blaisdell, Jr., Assistant to the Secretary of Commerce;
J. Burke Knapp, Assistant Director of Research and Statistics,
Board of Governors of the Federal Reserve System.
Herbert E. Gaston, Vice Chairman of the Board of Directors of
the Export-Import Bank.
Harold Glasser, Director of Monetary Research in the Treasury
Department, is the Secretary of the Council.
The United States Executive Directors on the International Monetary Fund and the International Bank for Reconstruction and Development regularly attend the meetings of the Council.
PROCEDURE
The Council ordinarily meets each week and holds such special
meetings as are required. Since February 1946, the Council has held
53 meetings, including several joint meetings with the President's
Committee for Financing Foreign Trade. Members of the Council
also formed a special committee which was charged with carrying
through the financial negotiations with representatives of the Provisional Government of France in the spring of 1946.
The Council has made use of the services of the existing personnel
of its five member agencies. As described in previous reports, its
Staff Committee, consisting of technical representatives of member
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
3
agencies and a representative of the Securities and Exchange Commission, collects and analyzes information and prepares reports and
recommendations for the Council. Secretariat functions are performed by personnel of the Treasury Department. Through this
procedure, the Council has not only operated economically but has
also maintained the close interagency liaison essential for successful
performance of its coordinating function.
In accordance with its statutory responsibility, the Council has coordinated a wide variety of foreign financial transactions by agencies
of this Government, including foreign loans, financial settlement of
war accounts, and credits to foreign governments or their nationals
for purchase of United States Government surplus property. Its
objective has been to achieve a consistent United States foreign financial policy. Problems which before the institution of the Council had
been dealt with by individual agencies and, in many cases, with only
incidental coordination, have been made the subject of joint discussion
and joint decision. The Council considers various criteria for foreign
loans, among which are the purpose of the loan, the need for the loan,
the borrower's ability to repay, the allocation of available loan funds
among applicant countries, the alternative sources of loan funds,
and the possible effects of the use of loan proceeds on the United States
domestic economy. On the basis of these criteria the Council approves or disapproves consideration by the lending agency of a
proposed loan or credit. Thus, through an over-all analysis, the
Council offers its best judgment to a lending agency with regard to
particular loan applications.
Similarly, through continuous consultation with United States representatives on the International Fund and Bank, and through exercise of the special powers granted to the United States in the Bank's
Articles of Agreement over the Bank's operations involving United
States dollars, the Council has assured coordination between the operations of these international institutions and the foreign financial
operations of the United States Government.
II.
ACTIVITIES OF THE COUNCIL FROM FEBRUARY 28, 1946, TO M A R C H
31, 1947 (OTHER T H A N T H O S E RELATING TO THE INTERNATIONAL
MONETARY F U N D AND THE INTERNATIONAL B A N K )
THE ANGLO-AMERICAN FINANCIAL AGREEMENT
On July 15, 1946, President Truman signed the joint congressional
resolution which implemented the financial agreement of December 6,
1945 with the United Kingdom, and the agreement became effective
immediately. The resolution implementing the agreement authorized
the Secretary of the Treasury, in consultation with the National
Advisory Council, to carry out the agreement of December 6, 1945.
The initial drawing under the line of credit provided for by the
financial agreement was made by the British Government on July 18,
1946. Six subsequent withdrawals brought the total drawings to
$1,300,000,000 as of April 1, 1947.
63532—47
2
4
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
To implement the joint congressional resolution which provided
t h a t "the Secretary of the Treasury, in consultation with the National
Advisory Council on International Monetary and Financial Problems,
is hereby authorized to carry out the agreement dated December 6,
1945 between the United States and the United Kingdom/' the Council
directed its Staff Committee to coordinate the study of problems
arising under the agreement.
On September 17, 1946, the United Kingdom signed an agreement
with Argentina, providing for the settlement of sterling balances
accumulated by Argentina during the war. Since implementation of
one clause of this agreement involved a potential violation of the
principle, embodied in the Anglo-American financial agreement, that
sterling balances should not be used as a device for discriminatory
expansion of British exports, the National Advisory Council recommended t h a t the Secretary of the Treasury write to the British
Chancellor of the Exchequer, with respect to this clause of the Argentine agreement. There followed an exchange of letters between the
Secretary and the Chancellor, which was made public on February 5,
1947. Chancellor Dal ton gave assurances that the clause objected
to would not be written into any subsequent agreement for the settlement of sterling balances held by other countries. Subsequently,
Argentina and the United Kingdom have agreed to liquidate Argentina's total sterling balances through use of these balances to purchase
British-owned railways in Argentina. Such liquidation is consistent
with the financial agreement.
The United Kingdom has also negotiated a series of agreements
with other countries to carry out the obligations under the AngloAmerican financial agreement which become effective July 15, 1947.
I n December 1946, the United Kingdom signed an agreement with
Canada, under which sterling was made freely transferable between
Canadian, American, and Argentine accounts, and Canada agreed to
accept sterling in payment of exports from a large number of countries.
I n February 1947, the United Kingdom signed three supplementary
agreements amending the monetary agreements with Belgium, the
Netherlands, and Portugal, making sterling balances held by these
countries immediately available for current payments in any currency
area.
EXPORT-IMPORT BANK CREDITS
From the beginning of its operations on August 21, 1945, through
March 31, 1947, the. Council approved (or referred) for consideration
by the Export-Import Bank approximately $2,000,000,000 of credits
(excluding $600,000,000 earmarked for China and Italy) which were
subsequently authorized by the Board of Directors of the ExportImport Bank. Several credits, also available for postwar use, were
authorized or negotiated by the Bank, some between July 1, 1945,
and the beginning date of Council operations, and some, which were
associated with earlier Bank commitments, after the beginning of
Council operations. The following table shows the distribution of
credits by country and object of financing:
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
Net credits authorized by the Export-Import
l
Bank,
July 1, 1945, to Mar, 31, 1947
[In millions of dollars]
Object of credit financing
Area and country
Europe:
Austria
Belgium
Czechoslovakia
Denmark..
Finland
Lend-lease
requisitions
.__
Reconstruction
55.6
45.0
550.0
20.0
62.5
650.0
25.0
Hungary
Italy
Netherlands
Norway
Poland.
Unallotted cotton credits._
50.0
»201.1
50.0
40.0
Total, Europe
655.0
1,093.6
-
Latin America:
Argentina. _
Bolivia._.
_Brazil
Chile
Colombia.,..
Ecuador _. ^. .
Mexico. .
.- _Peru Venezuela
__
Total, Latin America.
Asia and Africa:
China
.
Netherlands Indies _
Saudi Arabia
Turkey...
__ . . . ___ .
Ethiopia
33.8
100.0
3.0
Total, Asia and Africa...
136.8
Miscellaneous
Total, all areas
Development
Cotton 2
purchases
3 0.8
20.0
*2.0
7.0
«10.0
7.0
25.0
<5.0
41.0
100.0
1,230.4
17.8
0.8
100.0
22.0
20.0
79.5
1,200.0
25.0
7.0
30.0
251.1
50.0
40.0
41.0
1,866.4
0.2
3.0
53.8
47.4
3.5
1.8
7.0
.1
.6
.2
3.0
53.8
47.4
3.5
1.8
7.0
.1
.6
117.4
117.4
66.8
100.0
25.0
28.1
3.0
33.0
25.0
28.1
53.1
33.0
10.7
655.0
Total
Other
181.2
133.0
=
17.8
222.9
107
2,217.4
i Cancellations and expirations deducted. Numerous small exporter-importer loans extended by the
Bank, July 1,1945 through Mar. 31,1947, are excluded.
2 Credits extended by the Export-Import Bank under general approval of the Council.
3
Revolving credit.
4
For financing tobacco purchases.
* For financing food purchases.
• Excludes $49,000,000 participation by private banks through Mar. 31,1947.
In March 1946 the Council approved consideration by the Bank of
the extension to Chinese Government agencies and private enterprises of credits aggregating $500,000,000 for the purchase in the
United States of materials, equipment, and services to assist in the
rehabilitation and development of the Chinese economy. The Bank
earmarked this amount for the extension of credits for specific projects submitted to the Bank and approved by it prior to June 30, 1947.
As of March 31, 1947, no credits had been approved.
In January 1947 the Council approved consideration by the Bank
of credits to Italy totaling not more than $100,000,000. The Bank
has earmarked this amount for the extension during 1947 of credits
for the purpose of financing imports from the United States and,
thereby, assisting specific parts of Italian industry in the restoration
6
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
and expansion of export markets. Stable conditions in Italy and
that country's ability to provide for other essential imports are prerequisites to the extension of credits under the agreement. As of
March 31, 1947, no credits had been approved.
Several additional loan applications, which the Council approved
for consideration, are under study by the Bank. As of March 31,
1947, the unutilized lending capacity of the Bank, after deduction of
the earmarked amounts for China and Italy, was approximately
$320,000,000.
THE PHILIPPINE LOAN
During M a y 1946 the President-elect of the new Philippine Republic
conferred with President Truman, congressional leaders and various
Government officials concerning the financial situation of that country
and the possibilities of obtaining sizable loans from the United States
for budgetary and trade purposes.
On the basis of available information the Council during July
reached the conclusion that a loan of not more than $75,000,000 would
suffice to carry the Philippine Government through its financial difficulties during the current fiscal year. The Council agreed that such
a loan, because of its special nature, should be presented to the Congress for direct authorization; and that a Joint Philippine-American
Finance Commission should make a thorough study of the entire
financial and budgetary situation of the Philippine Government.
Congress, by Public Law 656 (79th Cong.), approved August 7,1&46,
authorized the Reconstruction Finance Corporation to extend credits
during the fiscal year 1947 to the Philippine Government of up to
$75,000,000 upon such terms as that agency, after consultation with
the National Advisory Council, should deem to be warranted by the
financial position of the Philippine Government. A formal request for
an initial advance of $25,000,000 under this authorization was subsequently received in Washington. On the basis of this request the
Council approved consideration by the Reconstruction Finance
Corporation of a loan of $25,000,000 to the Philippine Government
with interest at the rate of 2 percent per annum and maturing on
January 1, 1952. This recommendation was accepted by the Reconstruction Finance Corporation and the Philippine Government.
The Joint Finance Commission recommended by the Council was
established by agreement between the two Governments and has been
working in Manila since the end of January. The Commission is
expected to report to the two Governments during the spring of this
year.
WAR SETTLEMENTS ARRANGEMENTS AND CREDITS
The Council has continued to coordinate policy governing the
financial settlements with foreign countries arising from the war.
This work includes lend-lease settlements, general financial terms for
the disposal of surplus property located abroad, adjustment payments
for the expenditures of United States armed forces in foreign countries,
and settlement of other war claims. The Department of State has
primary responsibility for agreements concerning lend-lease and
surplus property located abroad, under general principles approved
by the Council.
I n many cases all pending war accounts with a particular country
have been negotiated at one time, as a means of facilitating agreement
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
7
between the parties. An over-all settlement was concluded with
France on M a y 28, 1946, and similar types of settlement were concluded with Belgium on September 24, 1946, and with the Union of
South Africa on March 21, 1947.
The agreement with France was reviewed by the Council. This
over-all war settlement resulted in a net French obligation to the
United States of $720,000,000. The amount of this obligation covers
final settlement of lend-lease and reciprocal aid, transfer of certain
surplus property to France and French North and West Africa on
long-term credit, adjustment of the United States share of civilian
supplies received by the French through combined military channels,
and the settlement of other financial claims of each Government
arising out of the conduct of the war.
The agreement reached with Belgium covers final settlement of
lend-lease and reciprocal aid, transfer of surplus property in Belgium
on long-term credit, the adjustment of the United States share of
civilian supplies received by the Belgians from combined military
channels, and the settlement of other financial claims of each Government arising out of the conduct of the war. An ancillary agreement
signed with Luxemburg settled outstanding claims of the United
States and Luxemburg Governments. The settlement with the
Union of South Africa covers lend-lease and reciprocal aid, mutual
financial claims arising from the war, and certain surplus property
items.
Lend-lease and surplus property agreements were also concluded
with India on May 16, 1946, with Australia on June 7, 1946, and with
New Zealand on July 10, 1946. An agreement covering transfer of
certain surplus property was signed with China on August 30, 1946.
There remain some unsettled war accounts on which the Chinese
Government has been requested to negotiate. Most of the major
aspects of lend-lease accounts with La tin-American countries have
been settled. Negotiations on over-all settlements with Norway and
the Netherlands are now well advanced. I n the case of Greece and
Czechoslovakia, discussions are in the initial stages. Formal negotiations with the Union of Soviet Socialist Republics did not begin
until after March 31, 1947.
I n accordance with a recommendation of the Council and after consultation with appropriate committees of the Congress and clearance
with the Comptroller General, the Department of State, at the direction of the President, announced t h a t payments would be made to
the Italian Government of dollars already set aside in the Treasury
to cover expenditures made by United States armed forces in allied
military lira currency for the procurement of supplies, services, and
facilities in Italy.
OFFICE OF FOREIGN LIQUIDATION COMMISSIONER CREDITS
The general policies established by the Council for the guidance of
the Office of the Foreign Liquidation Commissioner, Department of
State, with regard to the financing of surplus property sales abroad
may be summarized as follows:
(a) Cash payment shall be obtained in United States dollars
insofar as this can be done without unduly reducing total proceeds.
8
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
(6) Where cash sales are not possible, credits repayable in
dollars may be extended by the Foreign Liquidation Commissioner who will endeavor to make provision for this Government's
right to obtain accelerated payments in the debtor country's
currency to meet United States Government expenditures in such
country.
(c) Where dollar credits are extended, the terms shall not be
more favorable to recipient countries than 2% percent interest
and 30-year final maturity, except in the case of surplus property
sales made in connection with an over-all settlement of war
accounts.
(d) I n exceptional circumstances local currency may be accepted by the Foreign Liquidation Commissioner in amounts and
under conditions considered appropriate by the State Department in consultation with the Treasury Department.
(e) Insofar as practicable, Export-Import Bank funds should
not be used for the purchase of goods in the United States of
the same types as are anywhere available as United States surplus
property.
When foreign countries make purchases of surplus property on
credit terms consistent with the Council's general policies, the individual transactions are not usually referred to the Council for its
consideration, b u t the Office of the Foreign Liquidation Commissioner
informs the Council of the credits t h a t have been extended. In the
case of proposed surplus property sales to Japanese agencies involving
different payment terms from those established by the Council's
general policies, the Council passed upon specific credit terms.
Public Law 584, Seventy-ninth Congress, approved August 1, 1946,
and known as the Fulbright amendment to the Surplus Property Act
of 1944, established the Department of State as the sole disposal
agency for surplus property located outside the continental United
States, its Territories and possessions; and substantially broadened
both the authorized types of consideration that might be accepted in
the disposal of surplus property located abroad, and the authorized
use of the proceeds from the disposal of this property.
UNITED STATES MARITIME COMMISSION FOREIGN CREDITS
Under the Merchant Ship Sales Act of 1946, the United States
Maritime Commission was authorized, with certain limitations, to
sell war-built vessels to noncitizens at #ot less than the statutory
sales price and upon terms and conditions not more favorable than
those extended to United States citizens. Under its statutory
authority the Maritime Commission, after consultation with the
Council in each case, has extended the following credits for which
contracts had been signed as of March 31, 1947:
Amount of credit
(*n millions of dollars)
Country:
Brazil
France..
Greece
Italy
Peru..
Turkey
Total,
.
.
2. 1
28.8
4.0. 1
20.4
2.8
2.8
97.0
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
9
Ships for which mortgage contracts were not yet signed as of
March 31, 1947, have also been delivered to Norway under special
custody agreements.
WAR ASSETS ADMINISTRATION FOREIGN CREDITS
After discussions with representatives of the War Assets Administration, the Council approved in principle the extension of credits by
that agency to finance sales of domestic surplus property to foreign
governments. The details of coordinating such a program with the
over-all foreign financial operations of this Government were worked
out and confirmed by an exchange of correspondence between the
Chairman of the Council and the War Assets Administrator in the
early part of this year. Several foreign applications for credits for
the purchase of United States domestic surplus property have been
acted on by the Council. As of March 31, 1947, no contracts covering
such purchases had been signed.
CREDIT TERMS
The establishment and coordination of credit terms to foreign
countries obtaining loans or credits from various United States
Government agencies has been a continuous concern of the Council.
In view of this Government's interest in the work of reconstructing
war-devastated countries and in promoting economic development
in underdeveloped countries, the Council recognized the need for
liberal credit terms which would facilitate and assist in this work
and which borrowers could be expected to meet without undue burden
on their balances of payments. At the same time, the Council took
cognizance of the cost of loan funds to the United States and the need
for the various foreign lending agencies of the Government to conduct
their foreign credit operations on a self-sustaining basis.
At the beginning of its operations the Council was confronted with
the problem of determining charges on Export-Import Bank longterm loans to countries disrupted by the war. An interest rate of
3 percent was established on 20- to 30-year loans. On Export-Import
Bank loans to finance the purchase of goods requisitioned by foreign
governments prior to VJ-day under lend-lease arrangements, it was
considered appropriate to apply the terms contained in the LendLease 3 (c) agreements and established pursuant to section 3 (c)
of the Lend-Lease Act. Accordingly, the Bank's rate was set at
2% percent for 30-year loans of this type
In the summer of 1946, detailed consideration was given by the
Council to the Export-Import Bank rate on loans other than those for
reconstruction purposes. Among the factors affecting the Council's
decision was the desirability of establishing a rate which would attract
private capital participation in the Bank's loan program without
unduly burdening foreign borrowers and which would be likely to
conform with the future pattern of International Bank charges on
development loans of comparable maturities. The Council also considered the cost to the United States Government of public funds used
by the Export-Import Bank and the rate at which the Bank should
accumulate reserves against possible losses. The Council finally determined that the average or effective rate on Export-Import Bank
10
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
development loans to foreign governments, government agencies and
private borrowers should be 3% percent on 15-year maturities; and
that this rate should be adjusted upward or downward by the Bank
according to the structure of rates for different maturities in the private
capital market and, in the case of loans to private borrowers without
Government guarantee, according to differences in risks.
In the spring of 1946, the Council considered the problem of credit
terms on the net obligation due this Government from the Provisional
Government of France as a result of an over-all settlement of war
accounts with that country and a bulk purchase by France of United
States surplus property located abroad. The Council determined
t h a t the interest rate on credits extended in the over-all settlement of
war accounts with the French Government should be 2 percent and
t h a t the period of repayment should be 35 years with an initial 5-year
period of grace on repayment of principal. While the rate of interest
is thus the same as under the financial agreement with the United
Kingdom, the French agreement differs in that it does not provide for
any waiver of interest. The Council, however, approved the inclusion
of a provision whereby, if both countries agreed that because of extraordinary and adverse economic conditions arising during the course
of payment any periodic payment would not be to the common advantage of both governments, such payment might be postponed
upon such terms and conditions as might be agreed. The Council
also made the above terms applicable to over-all settlements of war
accounts with other foreign governments.
Since it appeared that credits would be required in order to maximize
the ultimate proceeds from the disposal to foreign countries of United
States surplus property located abroad, the Council at an early stage in
its activities considered the subject of credit terms to be extended by
the Office of the Foreign Liquidation Commissioner. After due consideration the Council determined that terms should not be more
favorable to foreign countries than 2% percent interest and 30-year
final maturity. An exception was later made for bulk purchases of
surplus property in connection with over-all settlement of war accounts, as noted above in the French case. The Council also coordinated the payment terms on which surplus property might be made
available to Japanese agencies with the War Department's arrangements for securing payments for imports into Japan for the prevention
of disease and unrest and for the accomplishment of the objectives of
the mission.
In accordance with the provisions of the Merchant Ship Sales Act of
1946, the minimum rate of interest chargeable by the United States
Maritime Commission on ship purchase credits to foreign purchasers
is 3lA percent and the maximum amount of credit is limited to 75
percent of the sales price. I t was administratively determined by the
Maritime Commission that the credit period should not exceed the
remaining economic life of the vessel. In the light of this background,
the Council determined that the statutory minimum rate should be
charged.
RELIEF
The imminent termination of the U N R R A program led the United
Nations General Assembly in its fall session of 1946 to consider means
of providing for the post-UN R R A relief needs of countries devastated
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
H
by the war and not yet sufficiently recovered to provide their own
minimum requirements for basic essentials such as food, medical
supplies, and working capital for agriculture. The United Nations
Special Technical Committee on Relief Needs After Termination of
U N R R A estimated a total 1947 need of $583,000,000 for Austria,
Greece, Hungary, Italy, Poland, and Yugoslavia.
The State Department in an independent analysis estimated a 1947
relief deficit of $576,000,000 for Austria, Greece, Hungary, Italy,
Poland, and Trieste. The State Department's estimate was arrived
at in conformity with the United Nations General Assembly's resolution of December 11, 1946, which defined 1947 foreign relief needs
as the value of a country's net minimum import needs to prevent
suffering and economic retrogression. The State Department carefully considered what part of the total relief needs might properly
be met by a United States contribution.
In view of the studies prepared by the United Nations and by the
State Department, the Council considered the share recommended by
the State Department as an appropriate United States contribution
to post-UNRRA relief during the calendar year 1947. I n recognizing
the responsibility of the State Department for the proposed amount
and administration of the United States contribution, the Council
expressed its opinion that the program would be consistent with the
foreign financial policy of the United States Government. In order
to coordinate the administration of United States post-UNRRA relief
with other phases of this Government's foreign financial policy the
Council requested the State Department to report periodically on the
allocation of relief funds and on the agreements reached with the
recipient countries. The President subsequently submitted to the
Congress an appropriation request of $350,000,000.
OTHER COUNCIL ACTIVITIES
Early in 1946 the Council determined that until further notice,
foreign requests for short-term loans on gold from Federal Reserve
banks need not be submitted to the Council for consideration. The
Chairman of the Board of Governors of the Federal Reserve System
was requested, however, to inform the Council whenever a new loan
of this type was granted. Loans on gold do not create a net addition
to foreign countries' dollar resources; dollars obtained through the
pledge of gold might alternatively have been obtained through sale
of the gold to the United States. The volume of such loans outstanding as of March 31, 1947, amounted to $131,800,000.
The Council formulated this Government's position with regard to
the assumption by the Economic and Social Council of the United
Nations of certain technical functions of the League of Nations in
connection with a series of international loans made during the interwar period. The Council agreed that these residual technical functions were no longer of sufficient importance to warrant their assumption by the Economic and Social Council. These views were transmitted by the State Department to the United States representative
to the Economic and Social Council for his guidance and instruction.
During March of this year, the Council studied the problem of
export credit insurance and transfer guarantees for United States exporters and concluded that there did not appear at this time any
63532—47
3
12
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
convincing need for a Government system of such insurance and
guarantees. The Council agreed, however, that if sufficient need
could be demonstrated a properly administered system of Government
export credit and transfer risk insurance would seem feasible.
The Council made Available to the United States delegation to the
U N R R A conference-in August 1946, specialized studies of the capacities to pay of certain U N R R A recipient countries.
The Council, through the Securities and Exchange Commission, has
kept itself informed of registrations and public offerings of foreign
government bonds in the United States market.
PRESIDENT'S COMMITTEE FOR FINANCING FOREIGN TRADE
On June 26, 1946, the President appointed a committee of bankers
and industrialists to work in conjunction with the National Advisory
Council on the problem of financing foreign trade. The President
pointed out that United States foreign trade, export and import, must
in the long run be privately handled and privately financed if it is to
serve well this country and the world economy.
The committee is composed of the following members:
Mr. Winthrop W. Aldrich, chairman, The Chase National Bank of
the City of New York.
. Mr. Champ Carry, president, Pullman-Standard Car Manufacturing Corp.
Mr. Walter J. Cummings, chairman, Continental-Illinois National
Bank and Trust Co.
Mr. L. M. Giannini, president, Bank of America.
Mr. Paul G. Hoffman, president, Studebaker Corp.
Mr. Edward Hopkinson, Jr., partner, Drexel & Co.
Mr. Fowler McCormick, chairman, International Harvester Co.
Mr. Irving S. Olds, chairman, United States Steel Corp.
Mr. Herbert H . Pease, president, New Britain Machine Co.
Mr. Gordon S. Rentschler, chairman, National City Bank of
New York.
Mr. A. W. Robertson, chairman, Westinghouse Electric Corp.
Mr. Tom K. Smith, president, The Boatmen's National Bank of
St. Louis.
At the first joint meeting of the President's Committee for Financing
Foreign Trade and the National Advisory Council in September 1946,
the Committee recommended to the National Advisory Council that
they confer informally on designated topics concerning which the
Council desired information and advice, so that the Committee might
make available to the Council the points of view of its members in the
varying fields represented by them. Accordingly, meetings have been
held at approximately monthly intervals to consider subjects of mutual
interest.
I I I . ACTIVITIES OF THE COUNCIL F R O M OCTOBER 31, 1946, TO
M A R C H 31, 1947, RELATING TO THE INTERNATIONAL MONETARY
F U N D AND THE INTERNATIONAL B A N K FOR RECONSTRUCTION AND
DEVELOPMENT
Effective operation of the International Monetary Fund and the
International Bank leading toward full achievement of the purposes
stated in th^ir articles of agreement is a major consideration of this
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
13
Government, not only because of its interest as a member in the adoption of sound and constructive international economic policies b u t
also because of the necessity of coordinating United States Government foreign financial operations with the currency transactions and
loans of these organizations. The National Advisory Council under
the statutory authority of the Bretton Woods Agreements Act has,
therefore, engaged in regular discussions with the United States
Executive Directors of the Fund and Bank for the purpose of giving
them assistance in their joint efforts with the representatives of other
member countries to carry forward the operations of the F u n d and
Bank. While the Fund and Bank can evolve many of their policies
only in the light of specific developments, these institutions have
already investigated in detail and resolved many of the policy and
administrative problems which confronted them.
PAR VALUES
The first major problem facing the F u n d during the recent period
was the establishment of initial par values of members' currencies for
purposes of the Fund. I n discussing this matter with the United
States Executive Director, the Council recognized the complexity of
the problem involved and expressed views substantially in accord
with those contained in the statement issued by the F u n d in connection with the announcement on December 18, 1946, of the schedule
of initial par values. Certain excerpts from the F u n d ' s statement
follow:
This is the first time that a large number of nations have submitted their
exchange rates to consideration by an international organization and thus a new
phase of international monetary cooperation has begun. The major significance
of the present step is not in the particular rates of exchange which are announced,
but in the fact that the participating nations have now fully established a regime
wherein they are pledged to promote exchange stability, to make no changes in
the par values of their currencies except in accordance with the Fund Agreement,
and to assist each other in attaining the general objectives of the Fund.
The initial par values are, in all cases, those which have been proposed by
members, and they are based on existing rates of exchange. The acceptance of
these rates is not, however, to be interpreted as a guarantee by the Fund that
all the rates will remain unchanged. As the Executive Directors of the Fund
stated in their First Annual Report, issued in September: "We recognize that in
some cases the initial par values that are established may later be found incompatible with the maintenance of a balanced international payments position at
a high level of domestic economic activity. * * * When this occurs, the
Fund will be faced with new problems of adjustment and will have to recognize
the unusual circumstances under which the initial par values were determined.
It is just at such times that the Fund can be most useful in seeing that necessary
exchange adjustments are made in an orderly manner and competitive exchange
depreciation is avoided."
The Fund realizes that at the present exchange rates there are substantial
disparities in price and wage levels among a number of countries. In present
circumstances, however, such disparities do not have the same significance as in
normal times. For practically all countries, exports are being limited mainly
by difficulties of production or transport, and the wide gaps which exist in some
countries between the cost of needed imports and the proceeds of exports would
not be appreciably narrowed by changes in their currency parities. In addition,
many countries have just begun to recover from the disruption of war, and efforts
to restore the productivity of their economies may be expected gradually to
bring their cost structures into line with those of other countries. Furthermore,
for many countries now concerned with combating inflation there is a danger that
a change in the exchange rate would aggravate the internal tendencies toward
inflation.
14
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
In view of all these considerations, the Fund has reached the conclusion that
the proper course of action is to accept as initial par values the existing rates of
exchange.
The par values announced were the existing rates of exchange as
certified by member countries. In the cases of Brazil, China, Dominican Republic, Greece, Poland, Yugoslavia, France in respect of Indochina, and the Netherlands in respect of the Netherlands Indies, an
extension of time for the determination of their initial par values was
granted by the Fund. The Fund stated that the initial par value of
the currency of Uruguay would not be definitely established until the
completion of certain legislative proceedings in Uruguay.
March 1, 1947, was the date established by the Fund for the beginning of exchange transactions. As of March 31, 1947, no applications for the purchase of foreign exchange had been received by the
Fund.
FUND'S SERVICE CHARGE
During this period the United States Executive Director of the
Fund requested the advice of the Council concerning the size of the
service charge to be levied by the Fund on exchange transactions.
The articles of agreement specify t h a t "Any member buying the
currency of another member from the Fund in exchange for its own
currency shall pay a service charge uniform for all members of threefourths percent in addition to the parity price. The Fund in its
discretion may increase this service charge to not more than one percent or reduce it to not less than one-half percent/'
In considering this matter the Council recalled that this Government had taken the position at the time the Bretton Woods legislation was passed that the Fund should interfere as little as possible
with the operations of private foreign exchange markets and should
supplement rather than displace the use by member countries of their
own exchange resources. The Council also considered the possible
effects of different rates on the earnings of the Fund. After careful
study, the Council advised the United States Executive Director
that it saw no adequate reason at this time to change the service
charge of three-fourths percent.
OTHER COUNCIL ACTIONS ON FUND MATTERS
I n December 1946, the Council on behalf of the United States
Government notified the Managing Director of the Fund that this
Government was prepared to accept the obligations of article VIII,
sections 2, 3, and 4 of the Fund agreement with respect to avoidance
of restrictions on current international payments, avoidance of discriminatory currency practices, and convertibility of balances of its
currency held by other members of the Fund.
At the request of the Managing Director of the Fund that this
Government designate the depository at which it would prefer to pay
its gold subscription, the Council notified the Fund of this Government's preference to pay its gold subscription at the Federal Reserve
Bank of New York, the depository of the Fund in the United States.
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
15
CHANGES IN RULES AND REGULATIONS OF THE FUND
Among several amendments and additions to the rules and regulations of the Fund in the recent period, the most important pertain
to the procedure for handling by the Fund of requests from itsjmembers for the purchase of currencies.
The relevant sections of the rules and regulations are as follows:
G - 3 . When a duly a u t h e n t i c a t e d request for t h e purchase of foreign exchange
in accordance with Article V, Section 3 is received, t h e F u n d shall, on t h e t h i r d
business day following t h e day of receipt of t h e request i n s t r u c t t h e a p p r o p r i a t e
depository t o m a k e t h e transfer, except in cases which t h e Executive Board m a y
indicate. T h e first business day after receipt of t h e request shall be regarded
as t h e first of t h e three days.
G - 5 . When t h e request of a member, if c o n s u m m a t e d , would increase t o m o r e
t h a n 5 percent of its q u o t a t h e aggregate purchases b y t h e m e m b e r p u r s u a n t t o
Article V, Section 3, during t h e t h i r t y - d a y period preceding t h e d a t e of action specified in G - 3 , t h e Managing Director shall notify each Executive Director (or his
Alternate if t h e Executive Director is n o t available) on t h e first business d a y after
receipt of the request. If neither t h e Executive Director nor t h e Alternate is in
Washington or its environs, t h e notification will be assumed t o h a v e been duly
delivered if a p p r o p r i a t e notice is delivered t o his office.
At t h e request of a n y Executive Director or on t h e initiative of t h e M a n a g i n g
Director, a special meeting shall be called by t h e M a n a g i n g Director t o discuss
t h e request as soon as feasible, b u t not later t h a n t h e morning of t h e second
business day.
ORGANIZATIONAL CHANGE IN THE FUND
On March 31, 1947, Mr. Harry D . White tendered his resignation
as the United States Executive Director of the Fund to become
effective after the return from Europe of the Managing Director of
the Fund in May. In recognition of his outstanding services the
Executive Board of the Fund named Mr. White as Honorary Adviser
to the International Monetary Fund.
INTERNATIONAL BANK LOAN APPLICATIONS
Loan applications totalling $2,345,000,000 had been presented to
the International Bank as of March 31, 1947. The countries and
amounts involved are: Chile, $40,000,000; Czechoslovakia, $350,000,000; Denmark, $50,000,000; France, $500,000,000; Iran, $250,000,000;
Luxemburg, $20,000,000; Netherlands, $535,000,000; and Poland,
$600,000,000. The Government of Greece has also indicated its intention to submit an application to the Bank upon completion of its
plans for reconstruction projects. Although negotiations with several
of the applicants were well advanced, no loans had been approved by
the Bank as of March 31, 1947.
In discussions concerning these applications with the United States
Executive Director, the Council recognized t h a t hi order to deal
with such matters as relative priorities of usefulness and urgency
among loan projects submitted by applicants, it was advisable for the
Bank to give concurrent consideration to various loan applications.
TERMS AND CONDITIONS OF BANK LOANS
The Council has expressed to the United States Executive Director
its views with regard to the Bank's charges on long-term loans. The
Bank is required by its articles of agreement to impose on borrowers a
16
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
commission of 1 to 1 % percent per annum for the creation of a special
reserve, but the size of the interest charge to be made by the Bank is a
matter for determination by the Bank in the light of such factors as
the rate of interest paid on its borrowings and the amount of liquid
funds which the Bank would consider it prudent to keep on hand.
The Council requested the United States Executive Director to
attempt to secure agreement by the International Bank to the incorporation in all its loan contracts of a provision requiring consultation with the Bank by any borrower who, in the judgment of the Bank,
was pursuing policies which might interfere with the success of the
projects financed by the Bank in any member country or jeopardize
fulfillment of the borrower's, or other member countries', obligations
to the Bank.
USE OF UNITED STATES CAPITAL AND FLOTATION OF SECURITIES
The Bank, under its articles of agreement, is required to obtain the
approval of the United States Government if it wishes either to use
this country's 18 percent capital contribution for making loans or to
raise funds by selling securities in this country. Hence, before the
Bank could undertake any substantial program of loan commitments
involving the use of United States dollars, such approval was needed.
On March 26, 1947, following earlier discussions between the
Council and the United States Executive Director, the Bank formally
requested approval to use the full amount of this country's 18 percent
capital contribution for making loans, and this approval was granted
shortly thereafter by the Council on behalf of the United States
Government.
The Council also discussed with the United States Executive Director various problems connected with the flotation of the Bank's
securities in the United States market, including the possible amount
of the Bank's initial issues. The Council advised him that on formal
request by the Bank this Government would assent to the Bank's
selling initial issues of securities on this market within the amounts
d'iscussed.
ORGANIZATIONAL CHANGES IN THE BANK
Mr. John J. McCloy was elected President of the Bank by the Board
of Executive Directors on February 28, 1947, to succeed Mr. Eugene
Meyer whose resignation became effective December 18, 1946. On
February 28, 1947, Mr. McCloy announced the election of Mr.
Robert L. Garner as Vice President of the Bank. Following the
resignation of Mr. Emilio G. Collado as United States Executive
Director of the Bank, the President of the United States nominated
Mr. Eugene R. Black for that position. Mr. Black's nomination
was confirmed by the United States Senate on March 14, 1947.
MEMBERSHIP IN THE FUND AND BANK
The admission of three countries into Fund membership and four
countries into Bank membership between October 31, 1946, and March
31, 1947, raised the number of member countries in each institution
to 42. As of March 31, 1947, the total quotas of members of the
Fund amounted to $7,710,500,000, while the total capital subscrip-
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
17
tions of members of the Bank amounted to $8,013,500,000. Members
that have recently joined these organizations and the amounts of
their subscriptions are indicated below.
Colombia, which was already a member of the Fund, signed the
articles of agreement of the International Bank on December 26,
1946. Its subscription to the capital of the Bank is $35,000,000.
Venezuela became a member of the International Monetary Fund
and of the International Bank on December 30, 1946. Having
participated in the Bretton Woods Monetary and Financial Conference, Venezuela was among the nations entitled to sign the articles
of agreement of the Fund and the Bank before December 31, 1946.
Venezuela's quota in the Fund is $15,000,000 and its subscription to
the Bank is $'10,500,000.
Turkey and Italy signed the articles of agreement of the Fund and
of the Bank on March 11 and March 27, 1947, respectively. Their
applications for membership in the Fund and the Bank had been
approved by the Boards of Governors of the Bank and the Fund at
their first annual meeting in Washington, September 27 to October 3,
1946. Turkey's quota in the Fund and subscription to the Bank are
each $43,000,000; Italy's quota in the Fund and subscription to the
Bank are each $180,000,000.'
Syria and Lebanon, whose applications for membership were also
approved at the first annual meeting of the Boards of Governors of
the Fund and Bank, did not sign the articles of agreement until after
March 31, 1947.
UNITED STATES PAYMENTS TO THE FUND
On February 26, 1947, the United States Government paid the remaining balance of its' subscription to the International Monetary
Fund in accordance with article I I I , section 3 and article X X , section
4 (c) of the Fund agreement, which provide for full payment on or
before the date when the Fund begins exchange transactions.
As of March 31, 1947, therefore, the United States had paid its
entire subscription of $2,750,000,000 to the Fund. Of this amount
$687,500,000.11, representing the 25 percent gold portion of the
subscription stipulated by article I I I , section 3 (b) (i) of the Fund
agreement, was paid in gold; $280,499,999.89, representing approximately 10 percent of £he United States subscription, was paid in United
States dollar funds; and $1,782,000,000 was represented by United
States non-negotiable, non-interest-bearing demand notes. By delivery of these special United States notes in accordance with section
7 (c) of the Bretton Woods Agreements Act, the United States
exercised the option available under article I I I , section 5 of the F u n d
agreement. These notes are payable on demand in dollars when
needed by the Fund in its operations.
UNITED STATES PAYMENTS TO THE BANK
On November 21, 1946, the United States made a payment of the
second 5 percent on its subscription to the capital of the Bank pursuant to the Bank's notice of call for payment. On February 24,
1947, the United States made a further payment of 5 percent on its
capital subscription. The amount of each of these payments was
$158,750,000, totaling $317,500,000.
18
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
As of March 31, 1947, the United States had paid 15 percent
($476,250,000) of its subscription to the capital of the Bank. Of this
amount, $407,035,000 was represented by non-negotiable, non-interestbearing demand notes in accordance with section 7 (c) of the Bretton
Woods Agreements Act and article V, section 12 of the articles of
agreement of the Bank, and $69,215,000 was represented by United
States dollar funds.
The Bank has given notice that it intends to make an additional
call of 5 percent of capital, payable as of M a y 26, 1947. When this
payment of $158,750,000 has been made, the total United States
paid-in capital will amount to $635,000,000, or 20 percent of the
United States subscription. Under the Bank's articles of agreement
there can be no further calls for payment upon the United States subscription unless the Bank should need to call on member countries for
funds to meet its obligations.
IV. SURVEY OF POSTWAR F O R E I G N FINANCIAL ASSISTANCE EXTENDED
BY THE U N I T E D STATES GOVERNMENT
By VJ-day, this Government had already made preparations to
meet many of the difficult foreign financial problems connected with
the postwar period of adjustment and reconstruction. The terms of
the Lend-Lease Act enabled the President to make settlements without imposing upon the recipients of lend-lease aid a dead-weight burden
of debt resulting from the Allied war effort. The Congress had approved this Government's participation in the United Nations Relief
and Rehabilitation Administration. It had increased the lending
authority of the Export-Import Bank from $700,000,000, to $3,500,000,000 for the primary purpose of enabling that agency to meet part
of the foreign postwar reconstruction needs. I t had authorized this
Government's membership in the International Monetary Fund and
the International Bank for Reconstruction and Development.
These measures were shortly thereafter supplemented by an important additional step—the approval of the financial agreement with
the United Kingdom.
SCOPE OF OPERATIONS THROUGH MARCH 31, 1947
United States Government foreign financial assistance since the
war has taken a variety of forms, including (1) •cash loans and advances, (2) transfers of goods and services on deferred payment terms,
and (3) contributions of money and supplies. Such assistance has
been supplemented by the United States subscriptions to the International Monetary Fund and the International Bank.
The dollar magnitude of the foreign financial assistance extended
by the United States Government is presented in the following summary table, A country breakdown of the data covering the period
June 30, 1945, through December 31, 1946, and an explanation of the
nature of the data are presented in appendix B.
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
19
United States Government Postwar Foreign Financial Assistance—Amount
able through Mar. 31, 194.7, and status as of Dec. 31, 1946, by type and
concerned
availagency
[In millions of dollars]
T y p e a n d agency concerned
Loans:
Loan to United Kingdom (Treasury Department)
_
R e c o n s t r u c t i o n , d e v e l o p m e n t , a n d o t h e r loans
(Export Import B a n k ) .
__
L o a n s to U n i t e d K i n g d o m , P h i l i p p i n e R e p u b l i c ,
and others ( R F C )
Amount
available
J u n e 30,
1945-Mar
31, 1947 *
tstandU n u t i - O uing
Amount Amount
inavailable utilized lized bal- d e b t e d J u l y 1.
J u n e 30,
ance as ness as of
1945-Dec. 1945-Dec. of D e c .
D e c . 31,
31, 1946 i 31, 1946
31, 1946
1946 2
3,750
3, 750
600
3,150
600
2,552
2,425
1,086
1,339
31,248
62
62
2
60
236
6,364
6,237
1,688
4,549
2,084
P r o p e r t y credits:
Lend-lease " p i p e l i n e " a n d i n v e n t o r y credits
(State D e p a r t m e n t )
S u r p l u s p r o p e r t y credits 4 ( O F L C )
__
S h i p sales credits ( U . S. M a r i t i m e C o m m i s s i o n ) .
S u r p l u s p r o p e r t y c r e d i t s 6 ( W a r Assets A d m i n i s tration)
Miscellaneous
1,446
1,248
150
1,446
1,140
107
1,242
875
28
204
265
79
1,286
5
875
28
10
20
20
20
Total
Loans a n d p r o p e r t y credits, t o t a l
2,874
9,238
2,713
8,950
2,165
3, 853
548
5,097
2,209
4, 293
ii 1, 202
H726
H977
H726
977
726
120
120
ii 162
ii 137
8
8
2,218
1,968
1,960
8
2,700
2,700
1,884
816
620
27
620
27
100
14
520
13
Total
O t h e r aid:
Civilian supplies, p r i n c i p a l l y t o occupied areas
(War and N a v y Departments) 8
.
P o s t w a r lend-lease supplies (State D e p a r t m e n t ) 8_
9
1942 congressional credit of $500,000,000 to C h i n a
(Treasury D e p a r t m e n t ) - C o t t o n a d v a n c e s for G e r m a n y a n d J a p a n 10 (U. S.
C o m m e r c i a l C o m p a n y a n d C o m m o d i t y Credit Corporation) . _._-__.
_
O t h e r a d v a n c e s for G e r m a n y (U. S. C o m m e r cial C o m p a n y )
.
-_
Total
Grants:
U N R R A supplies ( U n i t e d States G o v e r n m e n t
contribution)_ .. _ .. _
G r a n t s to P h i l i p p i n e R e p u b l i c (State D e p a r t m e n t a n d W a r D a m a g e Commission) _
G r a n t s to L a t i n A m e r i c a (State D e p a r t m e n t )
Total
Grand total
20
7
120
137
.
*8
3,347
3,347
1,998
1,349
14, 803
14, 265
7,811
6,454
i Unutilized balances of previous authorizations as of June 30,1945, plus net authorizations, July 1, 1945Mar. 31, 1947, in the case of the first column and plus net authorizations, July 1, 1945-Dec. 31, 1946, in the
case
of the second column.
2
Excludes indebtedness arising out of World War I.
3
Includes $7,000,000 participation by another agency.
4
Extended for purchase of surplus property located abroad.
s Amount does not reflect small repayments received through Dec. 31, 1946, for which detailed data are
not yet available in Washington, D. C.
67 Extended for purchase of surplus property located in the United States.
Consists of outstanding indebtedness as of June 30, 1945 ($573,000,000) plus amount utilized July 1,
1945-Dec. 31, 1946 ($3,853,000,000), minus amount of repayments July 1, 1945-Dec. 31, 1946 ($131,000,000)
and a charge-off of approximately $1,000,000. Calculation cf outstanding indebtedness by this formula
will differ slightly from indebtedness shown in the table due to rounding. The $573,000,000 of outstanding
indebtedness as of June 30,1945, consisted of: Export-Import Bank, $221,000,000; Lend-Lease, $55,000,000;
Reconstruction Finance Corporation, $297,000,000. The repayments between July 1, 1945, and Dec. 31,
1946, consisted of: Export-Import Bank, $59,000,000; Lend-Lease, $10,000,000; Reconstruction Finance
Corporation,
$62,000,000.
8
Terms still subject to settlement as of Mar. 31,1947.
A Terms on entire $500,000,000 still subject to settlement as of Mar. 31, 1947.
io Reimbursement based on the requirement that approximately 60 percent (subject to adjustment) of
textiles manufactured from Commodity Credit Corporation cotton during each 3 months' period will
be11delivered to United States Commercial Company for sale.
Amount utilized. Estimated for "Civilian supplies, principally to occupied areas" and "Postwar
lend-lease supplies" for period June 30,1945-Mar. 31,1947.
20
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
U. S. GOVERNMENT FOREIGN FINANCIAL ASSISTANCE
Amount Available* by Geographical Areat
JUNE 30, 1945 * DECEMBER 31, 1946
DOLLARS '
Billions
DOLLARS
Billions
7.0 I—
6.5
6.0
5.5
5.0
Europe
4.5
4.0
Asia
3.5
3.0
2.5
2.0
1.5
Other
1.0
s<**
.5
Z 0 9 11
L^M
•"» tote
Jpffi
Latin
119
0-
Northern Southern
a Western
Eastern
Central
Far
East
Near
East
i
America
Miscellaneous
*Ineludes unutilized balances as of June 30,1945, plus authorizations, July 1,1945-December 31,1946. Excludes the following items not assignable by geographical area: (1) United States UNRRA contribution—
$816,000,000 not yet utilized as of December 31, 1946; $214,900,000 for operating expenses; $81,400,000 to
unspecified areas or to areas other than final destination; (2) Civilian supplies—$180,600,000 to unspecified
areas; (3) Export-Import Bank—$50,000,000 of European unused cotton credit authorizations.
fCountries included in various geographical areas are: Northern and Western Europe—Norway, Denmark, Finland, United Kingdom, France, Netherlands and Belgium; Southern Europe—Italy, Greece,
Yugoslavia, Albania, and Dodecanese Islands; Eastern Europe—Russia and Poland; Central E u r o p e Germany, Austria, Hungary and Czechoslovakia; Asia (Far East)—China, Japan and Japanese Islands,
Korea, Siam, Netherlands Indies and the Philippines; Asia (Near East)—Turkey, Iran, Lebanon and
Saudi Arabia; Latin America—all; Miscellaneous—mainly Africa, Oceania and Canada.
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
21
The foreign financial assistance extended by the United States
Government is characterized by a broad geographical distribution
covering more than 50 countries. The preceding chart shows the
shares received by various geographical areas. Of the $14,300,000,000
total available between June 30, 1945, and December 31, 1946, almost
one-half ($7,100,0007000) is definitely assignable to the United Kingdom and .other northern and western European countries. This share
consists almost entirely of loans and credits for reconstruction purposes.
The bulk of other aid and grants was extended to central, southern,
and eastern European countries and far eastern areas where provision
of human necessities was urgently required before any appreciable
reconstruction and development work could be undertaken. The
aid for Germany and Japan, aside from the basic civilian supply
program designed to prevent disease and unrest, is intended to restore
economic activity, especially in export industries, and to relieve the
occupying powers of the burden of supporting these countries.
PRESENT STATUS
An appraisal of the financial assistance extended to foreign countries
by the United States Government is particularly appropriate at this
time. The International Monetary Fund and the International Bank
for Reconstruction and Development, upon which the United States
Government places reliance as the principal instruments to achieve
the long-range international financial objectives of the member countries of these two organizations, have recently come into operation.
The Export-Import Bank has committed or earmarked practically
all of the $2,800,000,000 increase in lending authority granted by
the Congress in July 1945, mainly for the extension of reconstruction
loans to war-devastated areas. Private United States capital has
reentered the field of foreign financing but only on a very limited
scale. U N R R A has virtually terminated its activities but urgen
relief needs still remain in certain areas. Finally, the decision is being
made by many countries as to whether the world will move towards a
freer and higher level of international trade through such an instrumentality as the International Trade Organization or towards a system
of closed trading areas.
Two immediate postwar financial objectives of this Government
which have already been largely achieved are the settlement of war
accounts and the disposal of surplus property located abroad.
All major war settlements have either been completed or are in
process of negotiation. In accord with the Lend-Lease Act, terms
have been designed to avoid imposition of a burden on trade between
the United States and allied countries in the form of repayments
which would unduly aggravate the postwar balance of payments
difficulties faced by most of these countries.
Over 80 percent of all United States salable surplus located abroad
(including estimated future declarations) has been disposed of, and
largely delivered, during the period when such property was likely to
contribute most to the restoration of war-devastated areas and under
22
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
terms conducive to maximization of eventual proceeds for this Government. Substantial amounts of domestic surplus property and of surplus ships may also be disposed of by the War Assets Administration
and the Maritime Commission through sales abroad on deferred
payment terms.
Other postwar foreign financial objectives of the United States
Government include alleviation of the suffering of the peoples of wardevastated areas, restoration of the productive capacities of these
areas, and development of economically undeveloped countries. These
objectives have only been partially attained to date. At the same
time the purchasing power represented by unutilized lending authority,
unutilized loan balances, unutilized relief grants and the gold and
foreign exchange assets of foreign countries has been cut by the
increase in prices here and abroad.
Relief and other forms of aid have carried a number of countries
through the worst period of postwar readjustment. In central and
southern Europe, and in parts of the Far East, however, the task of
providing even a minimum of subsistence goods largely remains.
I t has proved necessary to propose to the Congress a special postU N R R A appropriation of $350,000,000 for the calendar year 1947
while, in the case of Greece, further direct assistance in economic
rehabilitation is included in the $400,000,000 appropriation request
for Greece and Turkey. The purposes to be served by this latter
program have been fully developed in hearings before congressional
committees and in debates in the Congress. Assistance for military
supplies, as well as the aid designed to restore political and economic
stability in Greece, do not fall within the purposes of the ExportImport Bank or the International Bank for Reconstruction and
Development.
In the case of the combined British and American zones of Germany,
the net import requirements for minimum consumers' needs and basic
working capital requirements are being shared between the two occupying powers. The outlay for this purpose on the part of the United
States for the period 1947 through 1949 has been estimated by the
occupation authorities at $500,000,000. Additional United States
financing may prove necessary to support the economies of Japan and
the occupied area of Korea.
Reconstruction of the productive facilities of some war-devastated
countries and development of certain economically undeveloped areas
have already been accelerated by the extension of United States
Government loans. In northern and western Europe, for example,
United States reconstruction loans have made available the financial
means of achieving a considerable degree of recovery from the effects
of the war. Even in countries in these areas, however, shortages of
industrial working capital such as coal have kept the rate of reconstruction below that previously anticipated.
The Export-Import Bank will continue not only to disburse substantial amounts on outstanding commitments but also to undertake
new operations complementing those of other institutions. Coordination of the activities of the Export-Import Bank and the United
States representatives on the International Bank will be undertaken
by the National Advisory Council and will be guided by the particular
circumstances in each case. In general, it may be expected that projects deemed appropriate for consideration by the Export-Import
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
23
Bank would be those in which there is a special and important United
States interest. Such interest may exist because the project is designed to open up an additional supply of essential imports into the
United States, or because it requires United States equipment and
services of kinds which this country especially desires to export. Such
interest may also exist because the project is being sponsored and
financed in part by private United States interests, or because it is in
a field in which the Export-Import Bank already has participated
financially, or because the applicant country is not yet a member of
the International Bank. The Bank will also continue, of course, to
receive applications from United States exporters and importers who
do not have direct access to the International Bank. In general, too,
it may be expected that the Export-Import Bank will limit itself to
projects that can be amortized in a relatively short period of years.
The Export-Import Bank had unutilized funds at its disposal as of
March 31, 1947, of approximately $320,000,000, after deduction of
earmarked amounts for China and Italy. Applications were pending
before the Bank at that time in an aggregate amount in excess of this
remaining lending authority. On the other hand, the Bank has the
prospect of recouping lending authority from time to time as outstanding loans fall due and are repaid, as present commitments to make
loans are canceled or expire, and as private capital may be induced to
participate at its own risk in the outstanding loans of the Bank.
In order to meet reconstruction and development requirements, the
International Bank must also rely heavily upon dollar funds. For the
present a large part of the needed goods can be obtained only in the
United States, and there are few countries outside the United States
whose balance of payments position permits them to engage in any substantial export of capital. Through the payment of 20 percent of its
subscription to the capital of the Bank, the United States Government
is providing $635,000,000 for the Bank's use, and similar dollar capital
contributions by other members raise the total of the Bank's available
United States dollar funds to about $725,000,000. For the rest of its
dollar needs, the Bank must rely upon its ability to draw funds from
the private capital market in the United States. The timing and
extent of private capital investment abroad, either directly or through
the International Bank, will determine to a considerable extent the
ability of this Government to withdraw from the field of large-scale
direct foreign lending without sacrificing the basic objectives of its
foreign policy.
Temporary balance of payments deficits that develop in the current
international transactions of member countries may require financing
through the International Monetary Fund. As in the case of foreign
loan requirements and the International Bank, however, monetary
stabilization requirements of a type or in an amount t h a t cannot be
met by the International Monetary Fund may develop. Such cases,
particularly when they involve special interests of this Government,
may be handled by the United States Stabilization Fund in harmony
with the achievement of the objectives of the International Monetary
Fund.
The subject of repayment of United States foreign loans was treated
in some detail in pages 5 to 7 of the "Statement of the Foreign Loan
Policy of the United States Government by the National Advisory
24
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
Council on International Monetary and Financial Problems" transmitted by the President to the Congress on March 1, 1946. At this
time, the Council wishes to emphasize again that—
* * * the ability of foreign countries to transfer interest and amortization on
foreign loans to the United States depends upon the extent to which we make
dollars available to the world through imports of goods and services, including
personal remittances and tourist expenditures, and through new investment
abroad.
The extension of foreign financial assistance by this Government,
in conjunction with its pursuit of a commercial policy designed to
reduce restrictions on the free flow of international trade, will help
the United States to maintain a volume of exports appropriate for a
country with its tremendous productive capacity, and a volume of
imports t h a t will permit repayment of its loans to foreign countries,
increase the standard of living, and provide needed basic resources.
This Government's policies are therefore designed to make an important contribution not only to world stability but also to the welfare
of the American people.
I n 1946, total transfers of goods and services to foreign countries
amounted to $15,300,000,000, while United States imports of goods
and services amounted to only $7,100,000,000. Utilization by
foreign countries of United States Government loans and other aid,
including private donations and remittances, served to finance approximately $6,000,000,000 of the net balance. About $2,000,000,000
was financed through the use by foreign countries of their own dollar
assets and gold.
Foreign requirements of goods and services from the United States
to continue relief and reconstruction programs, to meet deferred demands from the war period and to continue development projects
remain large in 1947. The Department of Commerce reports that
in the first quarter of 1947, total United States transfers of goods and
services to foreign countries amounted to almost $4,900,000,000
while United States imports of goods and services amounted to slightly
more than $1,900,000,000. The first quarter amounts are equivalent
to an annual rate of $19,500,000,000 of transfers of goods and services
to foreign countries and only about $7,700,000,000 of imports. During
the first quarter of 1947, foreign countries financed the difference
between United States transfers of goods and services and United
States imports of goods and services by net utilization of about
$1,900,000,000 of United States Government loans and other aid,
including private donations and remittances, and by a reduction of
about $1,100,000,000 in their own dollar assets and gold.
Unutilized amounts of United States foreign loans and aid declined
from $6,500,000,000 as of December 31, 1946, to about $5,400,000,000
on March 31, 1947. Foreign gold and dollar assets in the form of
short-term balances and marketable securities declined from approximately $25,000,000,000 as of December 31, 1946, to about $24,000,000,000 on March 31, 1947. A sizable portion of these gold
and dollar assets and of new foreign gold production, currently at the
rate of about $700,000,000 per annum exclusive of production of the
Union of Soviet Socialist Republics, must be maintained as working
balances for trade purposes and currency reserves.
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
25
As of March 31, 1947, almost all United States governmental
resources authorized for foreign financial assistance, excluding United
States participation in the International Monetary Fund and the
International Bank, had been committed to foreign countries. I t
has during the period under review become increasingly clear that
such resources as remain available will not, by reason either of their
amount or of the nature of developing needs abroad, prove adequate
for the accomplishment of the purposes for which foreign financial
assistance has been provided. The question of the extent to which
this country will need to provide additional assistance to foreign
countries cannot be readily answered. The agencies represented on
the National Advisory Council are giving continuing consideration to
this matter.
J O H N W.
SNYDER,
Secretary of the Treasury,
Chairman of the National Advisory Council on International
Monetary and Financial Problems.
G.
C.
MARSHALL,
W.
A.
HARRIMAN,
M.
S.
ECCLES,
Secretary of State.
Secretary of Commerce.
Chairman of the Board of Governors of the Federal Reserve System.
W M . McC.
MARTIN,
Chairman of the Board of Directors of the
Bank of Washington.
Jr.,
Export-Import
APPENDIXES
APPENDIX A
SECTIONS OF THE BRETTON WOODS AGREEMENTS ACT RELATING TO THE
NATIONAL ADVISORY COUNCIL
(59 Stat. 512; 22 U. S. C. 286b)
NATIONAL ADVISORY
COUNCIL ON INTERNATIONAL
PROBLEMS
MONETARY AND
FINANCIAL
SEC. 4. (a) In order to coordinate the policies and operations of the representatives of the United States on the Fund and the Bank and of all agencies of the
Government which make or participate in making foreign loans or which engage
in foreign financial, exchange or monetary transactions, there is hereby established
the National Advisory Council on International Monetary and Financial Problems
(hereinafter referred to as the "Council"), consisting of the Secretary of the
Treasury, as Chairman, the Secretary of State, the Secretary of Commerce, the
Chairman of the Board of Governors of the Federal Reserve System, and the
Chairman of the Board of Directors of the Export-Import Bank of Washington.
(b) (1) The Council, after consultation with the representatives of the United
States on the Fund and the Bank, shall recommend to the President general
policy directives for the guidance of the representatives of the United States on
the Fund and the Bank.
(2) The Council shall advise and consult with the President and the representatives of the United States on the Fund and the Bank on major problems arising
in the administration of the Fund arid the Bank.
(3) The Council shall coordinate, by consultation or otherwise, so far as is
practicable, the policies and operations of the representatives of the United States
on the Fund and the Bank, the Export-Import Bank of Washington and all
other agencies of the Government to the extent that they make or participate in
the making of foreign loans or engage in foreign financial, exchange or monetary
transactions.
(4) Whenever, under the Articles of Agreement of the Fund or the Articles of
Agreement of the Bank, the approval, consent or agreement of the United States
is required before an act may be done by the respective institutions, the decision
as to whether such approval, consent, or agreement shall be given or refused
shall (to the extent such decision is not prohibited by section 5 of this Act) be
made by the Council, under the general direction of the President. No governor,
executive director, or alternate representing the United States shall vote in favor
of any waiver of condition under article V, section 4, or in favor of any declaration
of the United States dollar as a scarce currency under article VII, section 3, of the
Articles of Agreement of the Fund, without prior approval of the Council.
(5) The Council from time to time, but not less frequently than every six
months, shall transmit to the President and to the Congress a report with respect
to the participation of the United States in the Fund and the Bank.
(6) The Council shall also transmit to the President and to the Congress special
reports on the operations and policies of the Fund and the Bank, as provided in
this paragraph. The first report shall be made not later than two years after the
establishment of the Fund and the Bank, and a report shall be made every two
years after the making of the first report. Each such report shall cover and
include: The extent to which the Fund and the Bank have achieved the purposes
for which they were established; the extent to which the operations and policies
of the Fund and the Bank have adhered to, or departed from, the general policy
directives formulated by the Council, and the Council's recommendations in
connection therewith; the extent to which the operations and policies of the Fund
and the Bank have been coordinated, and the Council's recommendations in
connection therewith; recommendations on whether the resources of the Fund and
the Bank should be increased or decreased; recommendations as to how the Fund
and the Bank may be made more effective; recommendations on any other necessary or desirable changes in the Articles of Agreement of the Fund and of the
Bank or in this Act; and an over-all appraisal of the extent to which the operations
26
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
27
and policies of the Fund and the Bank have served, and in the future may be
expected to serve, the interests of the United States and the world in promoting
sound international economic cooperation and furthering world security.
(7) The Council shall make such reports and recommendations to the President
as he may from time to time request, or as the Council may consider necessary
to more effectively or efficiently accomplish the purposes of this Act or the purposes for which the Council is created.
(c) The representatives of the United States on the Fund and the Bank, and
the Export-Import Bank of Washington (and all other agencies of the Government
to the extent that they make or participate in the making of foreign loans or engage
in foreign financial, exchange, or monetary transactions) shall keep the Council
fully informed of their activities and shall provide the Council with such further
information or data in their possession as the Council may deem necessary to the
appropriate discharge of its responsibilities under this Act.
FURTHER PROMOTION OF INTERNATIONAL ECONOMIC RELATIONS
SEC. 14. In the realization that additional measures of international economic
cooperation are necessary to facilitate the expansion and balanced growth of
international trade and render most effective the operations of the Fund and the
Bank, it is hereby declared to be the policy of the United States to seek to bring
about further agreement and cooperation among nations and international bodies,
as soon as possible, on ways and means which will best reduce obstacles to and
restrictions upon international trade, eliminate unfair trade practices, promote
mutually advantageous commercial relations, and otherwise facilitate the expansion and balanced growth of international trade and promote the stability of
international economic relations. In considering the policies of the United States
in foreign lending and the policies of the Fund and the Bank, particularly in
conducting exchange transactions, the Council and the United States representatives on the Fund and the Bank shall give careful consideration to the progress
which has been made in achieving such agreement and cooperation.
APPENDIX B
STATISTICAL APPENDIX
EXPLANATORY NOTES *
Of the tables that follow, tables 1 through 5 relate in general to credit extensions in the postwar period by the United States Government to foreign countries,
both to governmental and to private entities. Because the data are readily
available only on a quarterly basis, and there were some credits of a postwar
character between June 30, 1945, and VJ-day, June 30, 1945, was adopted as the
beginning of the period covered by the tables. Some of the authorized amounts
presented in table 1 for Office of Foreign Liquidation Commissioner and lend-lease
credits are estimates subject to later adjustment.
Data with respect to the following types of transactions are included in tables
6 through 8: Civilian supply distributions, postwar lend-lease accounts, special
programs of advances for Germany and Japan for procurement of raw materials,
financial aid agreements, and the contributions to the United Nations Relief and
Rehabilitation Administration.
Certain other types of transactions through which foreign countries acquired
dollars, such as the payments on net troop pay account and for supplies provided
to the American forces, are excluded because they are considered as payments for
services received. Advance payments on commodity procurement contracts and
short-term credits (less than 6 months with respect to Office of Foreign Liquidation Commissioner; 90 days or less with respect to all other agencies), such as the
revolving credits of the Export-Import Bank, are also excluded. Loans and
credits to American organizations, even though for the ultimate benefit of foreign countries, were eliminated because the indebtedness is that of the American
organization and the aid rendered foreign countries is private rather than governmental. On the other hand, loans to finance exports by American companies
are included since the foreign country is the recipient of the credit and the foreign importer is the debtor.
1
All figures are to the nearest $100,000; therefore in certain adjustments there will be an apparent inaccuracy of 0.1, with corresponding discrepancies in the totals.
28
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
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
other property has been transferred 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 authorization covers all loans and credits approved by the responsible
officials of the lending agencies from available funds even if they have not been
signed or formalized by credit agreements. Because the lack of formal agreement may become important in some instances, the amounts in this category in
table 1 have been shown in detail in footnotes. Cancellations and expirations up
to December 31, 1946, 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 involved in sales contracts signed, including bulk sales, regardless of
the time of delivery of the property.
(c) Settlements for lend-lease transfers—billings presented to foreign governments. In the case of Australia, France, and the United Kingdom,
however, the amounts stated in the agreements were considered as final,
notwithstanding the fact that some of the formalities of billing might not
have been completed as of December 31, 1946. 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. In at least one case vessels
were delivered against funds put in escrow pending completion of credit
arrangements. In this case no credit was considered as utilized as of December 31, 1946.
Unutilized balances represent the unutilized balances as of June 30, 1945, plus
net authorization from July 1, 1945, to December 31, 1946, inclusive, less amounts
utilized from July 1, 1945, to December 31, 1946.
Repayments are confined to repayments on principal account. They are
exclusive of repayments on debts arising out of World War I and of write-offs
to profit and loss.
Outstanding indebtedness is usually the net of utilization less repayments of
principal. The data in table 5 necessarily include the results of transactions
taking place before July 1, 1945, but exclude indebtedness arising out of World
War I.
UNITED NATIONS RELIEF AND REHABILITATION ADMINISTRATION DATA
Data relating to UNRRA, as presented in table 8, come from two sources.
The first three columns are based on material supplied by UNRRA. In this set
of data, the country and program figures are based on the f. a. s. cost of the
merchandise to be distributed. The cost of shipping and field and administrative
expenses are shown in total only. The share of the United States in the total
program is approximately 72 percent.
The other set of data relating to UNRRA aid, shown in the last column of
table 8, comes from the United States Government and represents the distribution of commodities and services purchased with funds supplied by the Government of the United States. To the f. a. s. value of commodities snipped to each
country is added the estimated shipping cost. The contribution to administrative
and other expenses and to free funds is shown separately.
29
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
TABLE 1.—-U. S. Government loans and credits available to foreign countries, July
1, 1945y to Dec. SI, 1946, by country and by lending agency
[In m i l l i o n s of dollars]
N e t a u t h o r i z a t i o n s b e t w e e n J u l y 1,1945, a n d D e c . 31,1946»
Unutilized
balance L
as of J u n e E x p o r t Import
30, 1945
Bank
Area a n d country-
Africa:
Egypt
_Ethiopia
- Liberia.U n i o n of S o u t h Africa
2
3.0
• 10.7
. _.
T o t a l , Africa
Asia:
China
India
-Iran
Iraq.
Japan. _
Korea (South)
__
L e b a n o n . __ _
Netherlands Indies.
Philippine Republic
Saudi Arabia
Siam
Turkey
..
E c u a d o r 12
E l Salvador «
G u a t e m a l a 12
Haiti"....
Honduras
Mexico 12
N i c a r a g u a 13
Panama
Paraguay13
Peru13
U r u g u a y 12__.
Venezuela13
Miscellaneous
31.9
6 66.8
_
14.8
6.8
24.6
35.3
215.7
247.6
8 2.8
43.1
.9
21.0
25.0
5.0
200.0
30.8
27.0
20.0
40.9
43.1
.9
21.0
25.0
5.0
200.0
30.8
27.0
20.0
40.9
47.8
629.4
661.3
10.0
149.0
72.0
30.0
55.0
1,950.9
93.7
15.0
205.4
375. 3
75.9
90.0
4,400.0
10.0
149.0
72.0
30.0
56.2
1,950.9
93.7
15.0
205.4
375.3
75.9
90.0
4,435.0
241.6
50.0
241.9
50.0
7,813.8
7,850.3
.2
67.6
47.4
4.3
.2
15.5
79.5
60.6
27.8
.1
17.8
12.1
.6
28.1
219.9
294.3
67.4
25.0
»• 280. 3
«50.0
40.0
7 35.6
Socialist
10.0
49.0
«50.0
4 10.0
15.0
300.0
45.0
15.0
160.0
4 30.0
10.0
50.0
60.0
6 20.0
7 25.0
2
8 30.9
8 23. 7
420.0
8 20.4
65.0
8 15.9
590.0
11
3,750.0
241.6
50.0
804.0
1,316.6
3,840.9
36.5
1,852. 3
15.5
"11.9
13.2
23.5
.1
17.8
M4.2
»47.4
3.5
" 10.3
.6
1.8
1.8
7.0
7.0
«.2
...
_
_
__.
.4
.1
« 74,8
1811.4
4 12.0
.8
^
_
.1
.1
_
.8
18.4
7.3
_
_
Total, Latin America
N o r t h America: Canada
See footnotes at end of table, p. I
.1
104.2
3 5.7
15.1
(12)
11.8
4.0
17.5
2.0
.4
.1
81.8
.1
.8
4.6
8.0
1.5
25.0
8 4.1
4.2
.7
1.5
15.5
134.8
380.3
5.7
5.7
.7
4 1.5
"25.0
» 1 4 245. 5
2
6.8
8.5
100.0
22.0
20.0
40.0
1,200.0
25.0
Total
available
11.8
4.0
6.8
2.0
58.9
25.0
1.2
2
2 70.0
«100.0
.
Total
Other
11.8
1.0
< 34.6
.9
* 21.0
25.0
5.0
100.0
5.8
2.0
*20.0
10.0
2
Total, Europe..
Latin America:
Argentina
Bolivia » . . . .
Brazil12
_
Chile 12
Colombia13
C o s t a R i c a 12
Cuba1'
3.0
31.9
LendLease
*2.0
10.7
2
T o t a l , Asia
Europe:
Austria
Belgium
Czechoslovakia
Denmark
Finland.
France
Greece
Hungary
Italy
Netherlands
Norway
Poland
United Kingdom
U n i o n of Soviet
Republics
Miscellaneous
Foreign
Liquidation
Commissioner
30
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
T A B L E 1.— U. S. Government loans and credits available to foreign countries, July
1, 1945, to Dec. 31, 1946, by country and by lending
agency—Continued
[In millions of dollars]
Area and country
Net authorizations between July 1, 1945 and Dec. 31, 1946 i
Unutilized
Foreign
balance *
LiquidaTotal
as of JuDe ExportLendtion
Import
availOther
Total
30, 1945
Lease
Bank
Commisable
sioner
Oceania:
Australia
New Zealand
Total, Oceania
Various countries
6.5
5.5
.5
7.0
5.5
7.0
5.5
12.0
.5
12.5
5.0
12.5
. . 13 u 324.6 5 2,190.1 * 1,140.2
1,391. 3
8,625.8
8,950.4
-_ .
Total, all areas
5.0
3,904. 2
5.0
1
Cancellations and expirations through Dec. 31,1946, are excluded. See Explanatory Notes for definition
of terms. The column ''Unutilized balance as of June 30, 1945" relates to Export-Import Bank balances,
unless indicated otherwise by a footnote.
23 Estimated.
Lend-lease contract.
* Included in these data are credits authorized in principle but not yet signed as of Dec. 31,1946, amounting
in millions of dollars to: Total, 73.7; Brazil, 4.0; Denmark, 10.0; Iran, 30.2; Japan, 6.0; Netherlands, 100;
Siam, 10.0; Union of South Africa, 2.0: and Venezuela, 1.5.
s Included in these data are loans authorized by the Board but which had not been formalized by credit
agreements, as of Dec. 31,1946, amounting in millions of dollars to: Total, 181.4; Argentina, 0.2; Brazil, 6.1;
Chile,
10.4; Ecuador, 1.0; Mexico, 3.8; China, 4.2; Netherlands Indies, 100.0; Canada, 5.7; and Norway, 50.0.
6
Based on a sale of surplus property by the War Department. Amount estimated.
7
Reconstruction Finance Corporation is the lending agency.
8
Maritime Commission is the lending agency.
9
Sales under $40,700,000 unexpended balance of credit suspended Sept. 13, 1946.
10
Of this amount approximately $80,000,000 may be advanced by private participants.
11
Treasury Department is the agency administering the loan.
12
Lend-lease mutual-aid agreements have been signed with these countries. Data with respect to them
are shown in Latin American and all areas totals only. The Latin American lend-lease was authorized
before June 30,1945, and the bulk of it was delivered prior to that date. For that reason it was treated as
utilized before June 30, 1945, to the extent that bills had been presented to foreign governments as of Dec.
31, 1946.
13
Included in these data are loans authorized by the Board of the Export-Import Bank but which had not
been formalized by credit agreements as of June 30, 1945, amounting in millions of dollars to: Total, 66.8;
Brazil,
2.5; Ecuador, 8.0; Mexico, 30.8; Peru, 0.5; miscellaneous Latin America, 25.0.
14
Unutilized portions of Latin American lend-lease as of June 30,1945, included only in the Latin America
and all areas totals, amounted to $43,800,000.
T A B L E 2.—U. S. Government loans and credits utilized1 by foreign countries
July 1, 1945, to Dec. 31, 1946, by country and by lending agency
from
[In millions of dollars]
Area and country
Africa:
Egypt..
Ethiopia.
Liberia. _
ExportImport
Bank
Total, Africa
LendLease
Other
44.1
5.0
Total
11.8
11.8
.4
__
Asia:
China...
_.
Iran
...
Iraq
.
. ,.
Japan
_ .
Korea (south)
__
_
Lebanon
. ._
Netherlands Indies __
.
Philippine Republic
_
Saudi Arabia
See footnotes at end of table, p. 31.
Foreign
Liquidation Commissioner
6.4
.4
6.4
12.2
6.4
18.6
66.0
4.2
.9
1.4
6.1
2.5
68.3
5.8
1.5
35.5
8.5
2
20.0
165.6
12.7
.9
1.4
6.1
2.5
68.3
5.8
6.5
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
31
TABLE 2.— U. S. Government loans and credits utilized1 by foreign countries from
July 1, 1945, to Dec. 31, 1946, by country and by lending agency—Continued
[In millions of dollars]
ExportImport
Bank
Area and country
Asia—Continued
Siam
Turkey...
LendLease
Other
T o t a l , Asia
49.1
Total, Europe
100.0
14.1
15.0
36.9
626.0
3.4
14.6
115.3
6.4
931. 7
Latin America:
Bolivia7
Brazil7
Chile7
Colombia7
.__
Costa R i c a 7
Cuba7
__
Dominican Republic 7.
Ecuador 7
El Salvador7
Guatemala7
Haiti7Honduras 7
Mexico 7
Nicaragua7
Paraguay7
Peru7
Uruguay7
Venezuela7
_
___
__
_
_.
--
.
_
_ _.
Total, Latin America
5.7
20.1
11.1
10.9
.1
10.5
44.0
20.0
277.6
*15.4
*9.3
1.9
149.0
23.4
15.0
51.8
1,361.4
36.5
14.7
178.3
171.8
1.9
36.8
1.9
3 49.0
9.3
14.9
300.0
23.8
14.7
160.0
12.8
1.9
30.4
420.0
*3.7
43.7
60.0
590.0
137.0
« 600.0
1, 250.0
137.0
678.7
1,190. 7
628.4
3,429. 5
8.0
»2.0
5.7
30.1
11.1
10.9
.1
10.5
1.7
.6
1.7
.6
.4
.1
39.5
.4
.1
39.5
.8
.4
3.6
.5
105.5
8.5
5.9
4.7
1
T o t a l , Oceania
T o t a l , all countries
164.5
Total
4.6
3.2
4.6
3.2
Europe:
Austria...
.
Belgium .
Czechoslovakia.
Denmark.._
_
Finland-.
...
France
_
Greece
Hungary..
Italy
Netherlands
_
.
Norway
___
Poland
. .
Spain
..
Sweden
_.
.
United Kingdom
U n i o n of Soviet Socialist R e p u b l i c s . .
Oceania:
Australia
N e w Zealand
Foreign
Liquidation Commissioner
1,086.3
.8
.4
4.1
CO
2.0
6.4
4.7
.5
10.6
.5
874.5
1,241.6
116.0
11.1
650.4
3,852.8
1
See Explanatory Notes for definition of terms.
*8 Based on a sale of surplus property by the War Department. Amount estimated.
A bulk sale which included goods delivered prior to Oct. 1,1946, and the estimated amount expected to
be realized by the United States from the sale of other surplus property (50 percent of net proceeds), less
Belgian
claims against the United States.
4
Maritime Commission is the lending agency.
8
Treasury Department is the agency administering the loan.
•7 Reconstruction Finance Corporation is the lending agency.
Lend-lease mutual aid agreements have been signed with these countries. The aid rendered has been
considered as utilized before June 30,1945, to the extent that bills were rendered to foreign governments as
of Dec. 31,1946. Unbilled portions of the authorized amounts are treated as unutilized.
32
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
TABLE
3.-
-Balances of U. S. Government loans and credits unutilized
1946, by country and by lending agency •
l
as of Dec. 31,
[In millions of dollars]
ExportImport
Bank
Area and country
Africa:
Ethiopia.
Liberia
U n i o n of S o u t h Africa
3.0
Other
Total
11.0
3.6
11.0
2.0
2 2.0
3.0
2.6
u.o
16.6
3 54.6
4.0
2 30.4
• 2 19.6
18.9
2.5
31.7
23.4
5 2.8
82.0
30.4
19.6
18.9
2.5
131.7
25.0
20.5
15.4
37.7
27.8
383. 7
___•
__
3 100.0
<25.0
28.1
.5
2 15.4
6.8
202.7
129.8
20.0
_
T o t a l , Asia
Europe:
Austria
Czechoslovakia
Denmark
__^._
Finland
France
Greece
Hungary
_.
Italy
.
Netherlands
Norway..
_
Poland.
United Kingdom
U n i o n of Soviet Socialist R e p u b l i c s
Miscellaneous
Total, E u r o p e . . .
Latin America:
Argentina
Bolivia s
Brazils
_
Chiles
Colombia8
Costa R i c a 8
C u b a 8 . _. ._
D o m i n i c a8 n R e p u b l i c 8
Ecuador .
E l S a l v a d o r 8_._
Guatemala8
Haiti8—.
Honduras8
Mexico8
N i c a r a g u a 8_Panama
Paraguay8
Peru8
Uruguay
Venezuela 8 —
Miscellaneous
......
Total, N o r t h America
See footnotes at end of table, p. 33.
7.9
5.0
4.3
574.0
21.6
10.4
165.0
3 50.0
33.6
23.4
8.1
«40.7
2 10.0
.1
M5.5
«14.4
21.2
.3
M6.7
2 17.2
8.1
19.6
21.3
«15.9
921.8
125.3
3.2
9.8
3 36.0
3 49.5
16.0
2 4.0
8.1
48.6
15.0
4.4
589.5
57.2
.3
27.1
203.5
74.0
53.2
3,185.0
104.8
50.0
104.5
7 3,185.0
<.3
125.8
3,247.8
4,420. 7
« 9.4
.2
9.8
49.4
49.5
16.8
50.0
.8
(9)
(9)
7.3
3 10.4
7.3
10.4
_
42.3
3 42.3
.1
.1
_
_.
.1
3.7
__.
25.0
Total, Latin America
N o r t h A m e r i c a : Canada—
LendLease
0.6
_ __
T o t a l , Africa
Asia:
China
Iran
Japan,.
_.
Korea (South)
Lebanon
._
Netherlands Indies
Philippine Republic
Saudi Arabia
Siam
Turkey
Foreign
Liquidation C o m missioner
200.3
_-
•4.1
4.2
3.9
1.5
25.0
13.5
264.2
•2
U.5
6.6
1*43.8
3 5.7
5.7
5.7
5.7
33
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
TABLE 3.—Balances of U. S. Government loans and credits unutilized * as of Dec. 31,
1946, by country and by lending agency—Continued
[In millions of dollars]
Oceania:
Australia
New Zealand
Foreign
Liquidation Commissioner
ExportImport
Bank
Area and country
_
Other
Total
0.6
.8
0.6
.8
.__
1.4
1.4
Total Oceania,.Various countries
LendLease
_
5.0
5.0
Total, all areas
s 1,338.5
2 265.7
204.0
3,289.1
5,*097.3
i
1
See Explanatory Notes for definition of terms.
2
Included in these data are credits authorized in principle but not yet signed as of Dec. 31,1946, amounting in millions of dollars to: Total, 73.7; Brazil, 4.0; Denmark, 10.0; Iran, 30.2; Japan, 6.0; Netherlands, 10.0;
Siam,
10.0; Union of South Africa, 2.0; and Venezuela, 1.5.
3
Included in these data are loans authorized by the Board but which had not been formalized by credit
agreements as of Dec. 31,1946, amounting in millions of dollars to: Total, 191.9; Argentina, 0.2; Brazil, 8.6;
Chile,
10.4; Ecuador, 9.0; Mexico, 3.8; China, 4.2; Netherlands Indies, 100.0, Canada, 5.7; and Norway, 50.0.
4
Reconstruction Finance Corporation is the lending agency.
4
Maritime Commission is the lending agency.
«i Sales under this unutilized balance suspended Sept. 13,1946.
' The Reconstruction Finance Corporation and the Treasury Department are the agencies administering
these
loans.
8
Lend-lease mutual-aid agreements have been signed with these countries. Data with respect to them
are shown in the Latin American and all areas totals only. Those portions of the authorized amount
unbilled as of Dec. 31,1946, are treated as unutilized.
«Less than $50,000.
10
Total unbilled portion of authorized amounts for Latin America under the mutual aid agreements.
See Explanatory Notes.
TABLE 4.—Repayments l on U. S. Government loans and credits from July 1, 1945,
to Dec. 31, 1946y by country and by leading agency
[In millions of dollars]
ExportImport
Bank
Area and country
Africa: Ethiopia
. .
Total, Africa
Asia:
Bahrein Islands
China
Iran
Total, Asia
__.
_
.
See footnotes at end of table, p. 34.
.3
_
.
_ ._
23.8
1.3
__ .
5.4
. -_
3.0
23.8
1.4
3.0
28.2
57. 9
1.8
4.8
1.0
2.7
57.9
57.9
68.2
1.4
9.0
6.8
2.4
.1
.7
.7
.3
.1
1.2
.2
5.2
2 3.0
1.4
-
Total, Europe.. ..Latin America:
Bolivia 3
.
Brazil' .
British Honduras _
Chile'
Colombia 3
Costa 3Rica
Cuba
. .-3
Dominican
Republic
Ecuador 3 _ 3
El Salvador
Haiti 3
Honduras 3 _ . .
0.3
1.3
.-.-_
Total
.3
1.8
4.8
1.0
1.4
._
Other
0.3
23.8
Europe:
Belgium
France
...
Italy
Netherlands
.
United Kingdom
Lend-Lease
2
2.2
2 1.0
(4)
.1
(4)
.2
6.4
6.8
2.4
.1
.7
.7
.3
.1
1.2
.2
5.3
34
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
T A B L E 4.—Repayments * on U. S. Government loans and credits from July 1, 1945\
to Dec. SI, 194®, by country and by lending
agency—Continued
[In millions of dollars]
ExportImport
Bank
Area and country
Latin America—Continued
Nicaragua33
. _
Paraguay
Peru3 3
Uruguay
Venezuela 3
4
()
Lend-Lease
.6
.6
.6
.6
()
3
7.3
1.3
North America: Newfoundland
' 58.9
Total, all areas
Total
4
.1
1.4
25.8
Total, Latin America
Other
10.1
.1
1.4
34.4
2.2
2.2
62.4
s131.3
i Payments on principal account only. Payments made between July 1, 1945, and Dec. 31, 1946, were
included
even if they related to loans authorized or utilized at an earlier date.
2
Reconstruction Finance Corporation is the lending agency.
3
Lend-lease mutual aid agreements have been signed with these countries. Data with respect to them
are shown in totals only.
*4 Less than $50,000.
Amount does not include small repayments received by the Office of Foreign Liquidation Commissioner
through Dec. 31,1946, for which detailed data are not yet available in Washington, D. C.
T A B L E 5.—Outstanding indebtedness1 of foreign countries on loans and credits
by the U. S. Government as of June 30, 1945, and Dec. 31, 1946, by country and by
lending agency
[In millions of dollars]
Outstanding June 30,
1945 1
Area and country
Total
Africa:
Egypt
Ethiopia
Liberia
Total Africa_
Asia:
Bahrein Islands
China
__ _
Iran
_._
Iraq.
_
Japan
. . . . .
Korea (south)
.
Lebanon..
Netherlands Indies
Philippine Republic
Saudi Arabia _
Siam
...
Turkev.-
3 16.1
49.1
._
12.2
69.4
- 65.2
74.4
23.9
98.2
14.1
15.0
60.8
621.2
3.4
. _ __.
.
_
_ _ .-
See footnotes at end of table, p. 35.
.4
8.2
20.4
8.2
13.6
113.9
66.0
4.2
.9
1.4
6.1
2.5
68.3
5.8
1.5
4.6
3.2
35.5
7.1
164.5
42.6
13.2
^20.0
13.2
190.9
11.3
.9
1.4
6.1
2.5
68.3
5.8
6.5
4.6
3.2
33.2
314.7
615. 4
6 9.3
147.2
23.4
15.0
75.7
1, 356.6
36.5
14.7
177.3
169.1
1.9
5 49.0
9.3
14.9
300.0
23.8
14.7
160.0
12.8
1.9
Total
11.8
3
5.0
.___
Other
8.2
,_
__ .
._
....
Lendlease
11.8
.4
'___
Total Asia _ .
Foreign
Export- LiquidaImport tion ComBank missioner
0.3
21.8
2.1
.__
Europe:
Austria
Belgium
C zechoslovakia..
Denmark.
.
Finland
France
Greece _
Hungary
Italy
Netherlands
Outstanding Dec. 31, 1946
1.9
420.0
42.4
6 3.7
1.9
35
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
T A B L E 5.—Outstanding indebtedness1 of foreign countries on loans and credits
by the U. S. Government as of June 30, 1945, and Dec. 31, 19^6, by country
and by lending
agency—Continued
[In millions of dollars]
Outstanding J u n e 30,
1945 1
O u t s t a n d i n g D e c . 31, 1946
Area a n d country
Total
E urope—C o n t i n u e d
_
Poland
United Kingdom
U n i o n of Soviet Socialist R e p u b lics
_. __ _
_ _
Total Europe
L a t i n America:
Bolivia8
Brazil8
British Honduras
Chile8
Colombia 8 8
.
Costa Rica __ _ __
Cuba 8—
D o m i n i c a8 n R e p u b l i c 8_
Ecuador
_
E l Salvador 8
G u a t e8m a l a 8_
Haiti
Honduras 8
_ __
Mexico 8
_ _N i c a r a g u a 8_
P a r a g8u a y 8
Peru
. _.
Uruguay 8
8
Venezuela
• _
Total, Latin America.
N o r t h AmericaCanada
Newfoundland
__
Total, North America.
ExportImport
Bank
3.3
3 271.9
9.7
299.1
Lendlease
30.4
60.0
590.0
949.9
678.7
1,189. 4
3 2.1
io 63.5
3.5
13.6
10.4
6.9
2.7
2.6
"5.0
.9
5.7
io 78. 2
8.0
8.5
.8
12 11.0
3.1
4.9
7.7
.7
45.3
2.5
5.1
.4
10.6
1.7
Other
Total
7 814.0
40.1
1, 464.0
842.4
3,660.4
137.0
7.1
3.1
is 199. 6
223.7
137.0
3 9 1.0
3 1.0
3.4
18.0
18.9
6.8
12.6
1.9
6.3
1.3
9 6.7
87.2
.4
18.0
18.9
6.8
12.6
1.9
6.3
1.3
3.1
7.7
.7
45.3
2.5
5.1
.4
11.1
1.7
13.1
(")
.5
8.5
8
45. 5
•2.4
9
280.1
3 5.0
3 1.7
3 5.0
3 1.5
5.0
1.5
6.7
6.5
6.5
Oceania:
Australia
N e w Zealand
5.9
4.7
10.6
Total O c e a n i a . Total all areas.
Foreign
Liquidation Commissioner
" 572.7
1, 248.0
16 874. 5
6.4
4.7
.5
.5
1,286.2
11.1
» 884.5
» w 4,293.2
i See Explanatory Notes for definition of terms. The column "Outstanding, June 30,1945," is included to
show readily the net change in indebtedness that has taken place as a result of postwar lending operations.
The items in this column which are not specifically identified by footnotes relate to Export-Import Bank
credits.
2 Lend-lease credit.
> Reconstruction Finance Corporation is the lending agency.
* Based on a sale of surplus property by the War Department. Amount is estimated.
•The estimated net proceeds of a bulk sale. The exact amount will depend on the amount realized by
Belgium from the sale of the surplus property.
• Maritime Commission is the lending agency.
7 Of the $814,000,000 indebtedness, $600,000,000 was incurred under the loan administered by the Treasury
Department
and $214,000,000 under a loan by Reconstruction Finance Corporation.
8
Lend-lease mutual aid agreements have been signed with these countries. Data with respect to them
are shown in totals only.
9 Does not include $900,000 of a loan to a private borrower in Bolivia written off to profit and loss.
10
Includes $7,000,000 participation by another agency.
n Of the $5,000,000 indebtedness, approximately $100,000 was incurred under a loan by Reconstruction
Finance
Corporation and $4,900,000 under credits by the Export-Import Bank.
i2 Of the $11,000,000 indebtedness, approximately $100,000 was incurred under a loan by the Office of
Inter-American Affairs and $10,900,000 under credits by the Export-Import Bank.
is Office of Inter-American Affairs is the lending agency.
i* Less than $50,000.
is As of June 30,1945, outstanding indebtedness incurred under Latin-American lend-lease accounts and
included in this total was $52,800,000.
« Amount does not reflect small payments received through Dec. 31,1946, for which detailed data are not
yet available in Washington, D . C.
36
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
T A B L E 6.—Other postwar
aid furnished
by the U. S. Government for use in
foreign
countries, as of Dec. 31, 1946, by country and by type
lln millions of dollars]
Civilian
supplies *
Area and country
Lendlease 2
0.1
.1
Total, Africa
Asia:
China
Japan
Japanese Pacific islands
Korea (south)
Netherlands Indies
Philippine R e p u b l i c . . .
Total, Asia
Europe:
Austria
Czechoslovakia
Germany
Greece
Italy
Norway
Poland
Yugoslavia
Unspecified
Other
711.7
188.1
24.9
22.0
4.1
28.3
_
267.4
115.9
115.9
54.6
.
_
2.5
714.2
3
.2
258.4
•28.7
5.9
« 215.6
-
5.7
.1
_
180.6
709.2
97676"
Total, all areas
CO
11.9
72672"
28.7
14476
* Supplies distributed for the prevention of disease and unrest by the War and Navy Departments in
areas occupied by the armed forces. These data cover the period from July 1,1945, through Dec. 31,1946.
Terms were still subject to settlement as of Dec. 31, 1946.
2 Aid rendered during the period from Sept. 2,1945, through Dec. 31,1946, and not included in war settlements during that period. Small additional amounts of lend-lease aid, not as yet recorded, may have been
rendered to some countries. Terms were still subject to settlement as of Dec. 31,1946.
3 Value of raw cotton (including freight and insurance costs) owned by the Commodity Credit Corporation and, through an arrangement with the United States Commercial Company, shipped under the supervision and control of military authorities in Japan for manufacture into cotton textiles. Payments for the
raw cotton and all other expenses in connection with the program are made from proceeds of sale of the
textiles.
* Includes $20,900,000 of raw cotton (including freight and insurance costs) for use in Germany under an
arrangement similar to that described in footnote 3 for Japan; also $7,800,000 approved under an agreement between the United States Commercial Company and the Office of Military Government for Germany
(United States) for financing the procurement of raw materials needed to develop 5 specific export programs in the combined British and American zones of occupation. No part of the $7,800,000 had been
utilized as of Dec. 31,1946; repayment of amounts utilized will be made from 50 percent of the proceeds of
exports under these programs.
^
4
Includes supplies provided out of funds other than those of the War and Navy Departments.
<» Less than $50,000.
T A B L E 7.— U. S. Government
foreign
financial
aid agreements,1
July
1, 1945,
to
Dec. 81, 1946, by country
[In millions of dollars]
Unutilized
balance, June
30,1945
Area a n d country
Asia:
China
Philippine Republic
Total, Asia
Latin America:
N e t authorizations, July 1,
1945-Dec. 31,
1946
Utilization,*
July 1,1945Dec. 31,1946
620.0
620.0
119.6
100.0
219.6
520.0
520.0
.1
.8
1.4
2.3
.6
.6
.2
.6
.4
.7
.1
3.1
.6
2.4
1.7
.4
.5
.3
.5
.9
.7
.2
2.8
119.6
119.6
.1
Bolivia —
a
Brazil
Chile
Colombia
Costa R i c a . .
D o m i n i c a n Republic
Ecuador
Guatemala...
Haiti
Honduras
Mexico
See footnotes at end of table, p . 37.
-_
1.4
3.8
4.0
.8
.9
.5
1.0
1.0
.8
.3
5.6
.2
.2
.1
.3
.6
.3
Unutilized
balance, D e c .
31,1946
ACTIVITIES OF NATIONAL ADVISORY COUNCIL
T A B L E 7.— U. S. Government foreign
financial
Dec. 31, 1946, by
aid agreements,1
37
1, 1945,
July
to
country—Continued
[In millions of dollars]
Unutilized
balance, J u n e
30, 1945
Area a n d c o u n t r y
Latin America—Continued
Nicaragua
Panama-.
_
_._
Paraguay
Peru
E l Salvador
_
Uruguay
Venezuela
Total, Latin America
T o t a l , all a r e a s . .
_ .
._
_.
N e t authorizations, J u l y 1,
1945-Dec. 31,
1946
.2
.1
1.1
1.0
.5
.4
1.2
24.6
144.2
Utilization,*
J u l y 1, 1945D e c . 31, 1946
Unutilized
balance, D e c .
31,1946
.1
.1
.7
.8
.2
.2
.4
13.5
533.5
.1
.2
.4
.6
.6
.3
.4
.8
13.7
233.3
.2
2.6
"622T6"
»Includes (a) the unutilized balance as of June 30, 1945, of the $500,000,000 aid to China under the 1942
agreement—terms of the entire $500,000,000 still subject to settlement as of Mar. 31, 1947; (6) the authorizations in the Philippine Rehabilitation Act of $400,000,000 to settle claims tor war damage, $120,000,000 for
restitution of public property, and $100,000,000 of surplus property to be turned over to the Philippine
Government—no repayment involved; and (c) the grants-in-aid by the Office of Inter-American Affairs to
Latin-American countries—no repayment involved.
2 Equivalent to disbursement of the funds made available.
TABLE 8.—Assistance to foreign countries through the United Nations
Rehabilitation Administration,
by country
Relief and
[In millions of dollars]
T o t a l program *
Item
Countries:
Albania
Austria
Byelorussian S. S. R - - _ _
China-.
_..
__
Czechoslovakia
_ __
. _.
Dodecanese I s l a n d s •
._ .
__ .
Ethiopia
Finland
- ._ _.
Greece
Hungary _
__
__. _
Italy
__
._
Korea
Philippine Republic
Poland
San M a r i n o
..
•_
U k r a i n i a n S. S. R Yugoslavia
.
_
.
Unclassified a r e a s . . _ . . .
T o t a l , c o u n t r i e s . . .__
Shipping, mission a n d a d m i n i s t r a t i v e expenses
T o t a l , all i t e m s . .
1
27.2
136.1
60.7
529.6
264.1
4.1
.7
2.5
350.5
4.5
420.7
1.0
10.3
3481.3
()
188.1
420.6
«39.1
2,941.1
782.2
3,723,3
Shipments
a n d disbursements to
D e c . 31,
1946
18.3
101.5
48.8
294.5
232.3
4.0
.2
2.3
329.1
3.2
318.2
(3)
5.3
401.9
155.3
362.6
33.7
2,311.2
(6)
(6)
Goods, services, a n d
funds proB a l a n c e of
vided
program
UNRRA
as of D e c . b y U . S.
Govern31, 1946
ment 2
through
Dec. 31,1946
8.9
34.6
11.9
235.1
31.8
.1
.5
.2
21.4
1.3
102.5
1.0
5.0
79.4
32.8
58.0
5.4
6629.9
()
(6)
15.8
34.7
3
()
184.2
150.4
1.3
1.2
243.2
1.3
265.4
.1
6.1
287.8
* 139. 2
257.3
81.4
1, 669. 4
^ 214. 9
81,884.3
These data represent the total program of UNRRA, a small part of which was completed before July 1,
1945. The contribution of the Government of the United States comprised about 72 percent of the total
contributed by all.
* Based on data supplied to the Clearing Office for Foreign Transactions and Reports. These country data
include an estimate of the ocean transportation charges. (See also footnote 5.) A small part of this total
had been utilized before July 1, 1945.
3 Less than $50,000.
4
Includes Byelorussian Soviet Socialist Republic.
5 Includes countries in which the UNRRA special projects and displaced-persons camps operated; also,
in the last column, countries of initial destination from which goods may have been transshipped, with or
without processing, or to which goods may have been delivered as repayment for stocks previously received
by6 UNRRA.
Not available.
7
United States contribution to administrative expenses and free funds.
" The total contribution of the U. S. Government amounted to $2,700,000,000, of which $816,000,000 was as
yet unutilized as of Dec. 31, 1946, according to Government fiscal records.
O
@FedFRASER