with Iran and China, they may be increased also by additional interest accruing and becoming past due. (1) "Settlement agreements-surplus property" represents: (a) the United States dollar amount of that portion of the balance of principal indebtedness outstanding on June 30, 1953, under mutual aid settlement and surplus property credit agreements whch may be liquidated under the terms of the agreement by paying foreign exchange, transferring property, or furnishing services; and (b) past due interest on surplus property indebtedness of Ecuador, Iran, Peru, and China. (2) "Settlement agreements-lend-lease" represents the United States dollar amount of that portion of the balance of principal indebtedness outstanding on June 30, 1953, under purely lend-lease settlement agreements which may be liquidated under the terms of the agreement by paying foreign exchange, transferring property, or furnishing services. (3) "Settlement agreements-war assets" includes the United States dollar amount of the balance outstanding on June 30, 1953, under war assets agreements as reported to the Department of State by the administering agency, the General Services Administration. (b) "Reparations allocations" represents the estimated value of anticipated allocations to the United States by IARA. (c) "Cash foreign exchange" is valued at the United States dollar equivalent set forth in reports by the United States Treasury, which generally reflect the value as of the date on which the foreign exchange was transferred to United States Treasury account. Excluded are cash disbursing accounts of Foreign Service disbursing officers abroad. (1) "Cash foreign exchange-Treasurer, United States" represents foreign exchange held in banks abroad in accounts of the Treasurer, United States. (2) "Cash foreign exchange-Department of State" represents (a) foreign exchange held by Foreign Service disbursing officers abroad subject to the order of the United States Treasury (1) because of discriminatory taxes on foreign-owned bank accounts, or (2) because of political situations which indicate the desirability of local control of withdrawals; (b) foreign exchange advanced to Foreign Service disbursing officers for which United States dollar payment has not been received and functioned by the United States Treasury; and (c) in the case of Liberia a special account with the Bank of Monrovia to hold funds specifically reserved for the foreign building program. 5. Analysis of outstanding balances in foreign exchange as of June 30, 1953 This statement analyzes the amounts set forth in the "Balance as of June 30, 1953" column of the statement of "Availability and utilization of foreign credits and currencies, cumulative through June 30, 1953" (par. 1 (d) above) by setting forth (a) the amounts reserved for specific purposes; (b) the amounts unreserved which are held as cash or are available for drawing in foreign exchange during the current and next fiscal year under the terms of the applicable credit agreements; and (c) amounts which are not anticipated to be available before June 30, 1955. (a) "Balances under educational exchange agreements" represents the difference between the maximum programs contemplated under the bilateral agreements executed under the authority of Public Law 584 and the amounts paid to educational foundations through June 30, 1953. (b) "Reserved for foreign building operations" represents (a) cash balance administratively earmarked for the exclusive use of the foreign building program; (b) amounts limited in the settlement agreements to acquisition and maintenance of property; and (c) amounts mentioned in the settlement agreements as intended by the United States for acquisition and maintenance of property. In the case of France and the United Kingdom, the balances shown are available also for extension of educational exchange agreements. (c) "Available balances not reserved" represents cash balances and outstanding balances under surplus property, mutual aid, and lend-lease settlement agreements which (a) are not required to finance educational exchange agreements concluded under the authority of Public Law 584; (b) are not reserved as described in paragraph 5 (b) above; and (c) are not unavailable at this time as described in paragraph 5 (e) below. Balances under war assets agreements, not administered by the Department of State, are excluded. The distribution by time period reflects the effect of payment schdules in the case of Mexico and Nicaragua, and in other cases the effect of maximum limitations on the amount which may be drawn in any 12 month period. In the case of Indonesia $7 million of the amount shown may be used for an educational exchange program, and in the case of Israel the entire amount, derived from information media guarantees, may be used only for scientific, educational and cultural activities. S (d) "Balances under war asset agreements" are set forth separately because drawings are under the administrative control of the General Services Administra[tion, and to date no local currency drawings have been made. (e) "Inactive and unavailable accounts" are those not available at this time 17 for financing foreign exchange requirements. Czechoslovakia has ceased honoring requests for accelerated payments. The small balance under France represents information media guarantee funds not for current use, and the small balance under Germany is a blocked account. In the case of Yugoslavia, exchange rate problems have not been resolved. In the case of Iran and China, economic and political considerations impel classification of these balances as inactive. 6. Financial plan for the utilization of foreign credits and currencies owed to or owned by the United States Treasury These statements recognize the consular fees and other miscellaneous receipts expected to be collected in foreign exchange, and apply these plus amounts available through United States Treasury accounts on June 30, 1953, to the foreign exchange requirements of the Department of State. These availabilities are applied first to that part of the foreign building program which is restricted by law to the United States Treasury and other United States agency sources for its required foreign exchange, and the educational exchange program, which is restricted similarly. Amounts not needed for these restricted programs are applied to the requirements of the current appropriation for salaries and expenses of the Department of State, and any residual excess is applied to other disbursing requirements, including payments on behalf of other agencies. The effect of the planned utilization on availabilities is set forth in section 7, below. (a) "For the fiscal year ending June 30, 1954" (1) "Estimated availability-foreign credits and currencies owed to or owned by United States Treasury July 1, 1953," is the amount set forth in the "Balance as of June 30, 1953," column of the statement of availability and utilization of foreign credits and currencies, cumulative through June 30, 1953, paragraph 1 (d) above, and sections 4 and 5, above. It should be noted that only 48 of the 70 areas listed have availabilities shown. (2) "Estimated availability-consular fee receipts in foreign currency" represents the Department's estimate of consular fees and other miscellaneous collections which will be received in foreign exchange. Collections are taken up in the Foreign Service advance account of the disbursing officers concerned with and equivalent increase in his dollar accountability for funds. Collections in foreign exchange are not formally processed through Treasury foreign exchange accounts and, therefore, are not included in the statement of availability and utilization of foreign credits and currencies and related statements described in sections 1 through 5, above. (3) "Total estimated availability" is the computed sum of the two preceding columns. It does not include collections of other agencies or other additional foreign exchange which may become available through the United States Treasury. (4) "Foreign building program" includes unliquidated foreign exchange obligations from prior fiscal years equivalent to United States $8,067,799, and $9,544,048 in 1954 obligations set forth in the budget presentation for the appropriation for "Acquisition of buildings abroad; less $941,626 in obligations which cannot be funded currently due to shortage in the specific kinds of exchange required. (5) "Educational exchange program" includes $7,893,667 set forth in the budget presentation for the appropriation for "International educational exchange activities," $1,162,500 budgeted under the appropriation for "Government in occupied areas," and $167,500 which is required to liquidate prior year obligations without charge to appropriated funds. (6) "Appropriation for salaries and expenses, 1954" sets forth the estimated extent to which the foreign exchange requirements of this appropriation may be funded from the availabilities described in paragraphs 6 (a) (1)(3) above. Requirements for foreign exchange are estimated on a gross basis including reimbursements, and availabilities in excess of those required for the foreign building and educational exchange programs have been applied next to the requirements of the appropriation for salaries and expenses. Less than half the exchange required is available from this source. (7) "All other appropriations" represents the residual availabilities which can be utilized to fund the foreign exchange required to liquidate prior year obligations, to liquidate obligations of the current appropriation for "Govern45431-54-pt. 2-14 ment in occupied areas" and all other current appropriations to the Department of State except salaries and expenses, FBO, and IES, and to make payments chargeable to accounts of other agencies, including USIA and FOA. Availabilities represent 100 percent of GOA requirements, and 26 percent of the requirements for other appropriations. (8) "Total estimated utilization" is the computed sum of the four columns immediately preceding. The amounts shown may be increased by additional foreign exchange of kinds in relatively short supply becoming available for acquisition from United States Treasury accounts. Total requirements will approximate $100 million, against about $64 million shown in this column. (9) "Estimated availability after June 30, 1954" is the computed difference between "Total estimated availability," paragraph 6 (a) (3) above, and "Total estimated utilization," paragraph 6 (a) (8), above. These amounts may be altered by liquidation of indebtedness by payment in United States dollars; utilization by other agencies; revision of credit agreements; additional sources of foreign currency to the United States Treasury and the Department of State; and economic or political factors which may affect the ability of the United States to draw local currency as accelerated payment of indebtedness. (b) For the fiscal year ending June 30, 1955 (1) "Estimated availability-foreign credits and currencies owed to or owned by the United States Treasury July 1, 1954" is the amount set forth in the "Estimated availability after June 30, 1954" column of the financial plan for the fiscal year ending June 30, 1954 (paragraph 6 (a) (9), above). (2) "Estimated availability-consular fee receipts in foreign currency" represents the Department's estimate of consular fees and other miscellaneous collections which will be received in foreign exchange, as described in paragraph 6 (a) (2), above. (3) "Total estimated availability" is the computed sum of the two preceding columns as described in paragraph 6 (a) (3), above. (4) "Foreign building program" includes deferred unliquidated foreign exchange obligations equivalent to United States $941,626 (see paragraph 6 (a) (4) above) and $5,128,000 in 1955 foreign exchange obligations set forth in the budget presentation for the appropriation for "Acquisition of buildings abroad"; less $966,831 in obligations which cannot be funded in 1955 due to shortage in the specific kinds of exchange required. (5) "Educational exchange program" includes $7,560,166 set forth in the budget presentation for the appropriation for "International educational exchange activities" and $1,250,000 budgeted under the appropriation for "Government in occupied areas.' " (6) "Appropriation for salaries and expenses, 1955" sets forth the estimated extent to which the foreign exchange requirements of this appropriation may be funded from the availabilities described in paragraph 6 (b) (1)-(3) above. Requirements are estimated on a gross basis, including reimbursements, as described in paragraph 6 (a) (6) above. Due to utilization of availabilities during the preceding year, it is estimated only 35 percent of the exchange requrements of this appropriation will be funded from residual balances. (7) "All other appropriations": See paragraph 6 (a) (7). Due to prior utilization, it is estimated that only 42 percent of the disbursing requirements of appropriations will be met from this source, including 100 percent of GOA requirements and 22 percent of the requirements for other appropriations. (8) "Total estimated utilization" is the computed sum of the four columns immediately preceding. The amounts shown may be increased by additional foreign exchange of kinds in relatively short supply becoming available for acquisition from United States Treasury accounts. Total requirements will approximate $86 million against about $23 million shown in this column. (9) "Estimated availability after June 30, 1955" represents the computed difference between "Total estimated availability," paragraph 6 (b) (3) above, and "Total estimated utilization," paragraph 6 (b) (8) above. These balances are analyzed in the statement described in section 7, below. 7. Analysis of foreign credits owed to the United States-balances estimated as of June 30, 1955 On June 30, 1953, there were availabilities in 48 of the countries listed. By June 30, 1955, it is expected that availabilities will remain in only 34 countries, of which only 19 countries will have availabilities which are not entirely restricted to specific purposes but may be used in whole or part for any United States expenses. Of the 19, however, 3 are dormant because of unsettled negotiations on rates of exchange, 3 are inactive because economic or political factors preclude drawings, 7 have maximum limits on the amount of local currency which may be drawn in any year, and only 6 represent surplus immediately available for any United States expense. (a) "Estimated balance, June 30, 1955" is the amount set forth in the "Estimated availability after June 30, 1955" column of the financial plan for the fiscal year ending June 30, 1955 (paragraph 6(b) (9) above). These amounts may be altered by liquidation of indebtedness under credit agreements by payment in United States dollars; utilization by other agencies; any difference between the exchange rate at which drawings are made and the exchange rate at which the United States Treasury disposes of the proceeds; revision of credit agreements; additional sources of foreign exchange to the United States Treasury and the Department of State; and economic or political factors which may affect the ability of the United States to draw local currency as accelerated payment of indebtedness. (b) "Educational exchange" represents the balance under bilateral educational exchange agreements which are now in force, and does not provide for proposed extensions or new agreements. The amount for each country has been computed by decreasing the maximum amount contemplated under the agreement for the entire period it covers by the cumulative amounts which will have been paid to the binational foundation through June 30, 1955, under present budgetary plans. (c) "Foreign buildings" represents the estimated balances earmarked for the foreign building operation in credit agreements, or which such agreements indicate the United States intends to use for this purpose, which will remain unobligated on June 30, 1955. In addition to credits there remains $216,000 in Egyptian pounds in a Treasury cash balance. Since FBO requirements have been covered on the basis of estimated obligations, there will remain undisbursed on June 30, 1955, the equivalent of outstanding unliquidated obligations payable in foreign exchange, estimated to approximate $8 million, in addition to the amounts set forth on the statement. (d) "Various": In the case of France and the United Kingdom, the amounts shown are restricted to educational exchange or foreign building operations. In the case of Israel, use is limited to scientific, educational, and cultural purposes. (e) "Available for any expenses" represents estimated balances which are not restricted as to the purpose for which they may be used, but which are limited in accordance with the notations which may appear on the statement. (f) "War asset agreements": Except for Haiti, no utilization of these balances has been planned as the agreements are administered by the General Services Administration, which agency is attempting to collect in United States dollars. In the case of Haiti, the GSA has enlisted the aid of the Department of State in collecting the debt by accepting property required by the United States for its operations in Haiti. (g) "Not available for utilization": The amount shown for France represents information media guaranty funds not available for use. The amount shown for Switzerland probably will be liquidated by sale for United States dollars by the United States Treasury. The amount shown for Germany is in a blocked account. |