Table C-1. Summary of major U.S. Government net foreign assist- ance, July 1, 1945, to December 31, 1960, gross and returned, by Table C-2. Summary of major U.S. Government foreign assistance, military and other, by area and country, postwar period, July 1, Table C-3. Summary of major U.S. Government net foreign assist- ance, July 1, 1945, to December 31, 1960, by area, type, and country- Table C-4. Summary of U.S. Government net foreign grants, July 1, 1945, to December 31, 1960, by area, type, and country- Table C-5. Summary of U.S. Government net foreign credits, July 1, 1945, to December 31, 1960, by area and country. Table C-6. Summary of U.S. Government foreign assistance through net accumulation of foreign currency claims, July 1, 1945, to December 31, 1960, by area and country- Table C-7. Summary of U.S. Government foreign credits, July 1, 1945, to December 31, 1960; and principal and interest due and unpaid for 90 days or more, as of December 31, 1960, by program, Table C-8. Outstanding indebtedness of foreign countries on U.S. Government credits, as of December 31, 1960, by area, country, and Table C-9. Unutilized balances of U.S. Government foreign credits, as of December 31, 1960, by area, country, and major program Table C-10. Summary of U.S. Government other assistance (through net accumulation of foreign currency claims), July 1, 1953, to December 31, 1960, and July 1 to December 31, 1960, by program, Table C-11. Summary of U.S. Government net foreign grants utilized, Table C-12. Summary of U.S. Government foreign credits, July 1 to Table D-1. Membership and quotas in the International Monetary Fund, 77 REPORT OF ACTIVITIES OF THE NATIONAL ADVISORY COUNCIL ON INTERNATIONAL MONETARY AND FINANCIAL PROBLEMS JANUARY 1-JUNE 30, 1961 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., secs. 286, 286b), approved July 31, 1945.1 MEMBERSHIP The members of the Council, according to law, at the end of the period under review, were the following: The Secretary of the Treasury, Douglas Dillon,2 Chairman. The Secretary of Commerce, Luther H. Hodges. The Chairman of the Board of Governors of the Federal Reserve The President and Chairman of the Board of Directors of the By agreement, the following served as Alternates: John M. Leddy, Assistant Secretary of the Treasury. George W. Ball, Under Secretary of State for Economic Affairs." Rowland Burnstan, Assistant Secretary of Commerce for International Affairs.8 C. Canby Balderston, Vice Chairman of the Board of Governors Tom Killefer, First Vice President and Vice Chairman of the George H. Willis is the Secretary of the Council. The U.S. representatives on the international financial institutions. regularly participated in the work of the Council: U.S. Executive Director of the International Monetary Fund, 1 The relevant portions of the statute, as amended, setting forth the functions and composition of the Council, are presented in appendix A of this Report. 2 Mr. Douglas Dillon assumed office on Jan. 20, 1961, succeeding Mr. Robert B. Anderson, who resigned effective the same date. Mr. Dean Rusk assumed office on Jan. 20, 1961, succeeding Mr. Christian A. Herter, who resigned effective the same date. Mr. Luther H. Hodges assumed office on Jan. 21, 1961, succeeding Mr. Frederick H. Mueller, who resigned effective Jan. 20, 1961. Mr. Harold F. Linder assumed office on Mar. 2, 1961, succeeding Mr. Samuel C. Waugh, who resigned effective Jan. 20, 1961. Mr. John M. Leddy assumed office on Apr. 5, 1961, succeeding Mr. John P. Weitzel, who resigned effective Jan. 20, 1961. Mr. George W. Ball assumed office on Feb. 1, 1961, succeeding Mr. Douglas Dillon, who resigned effective Jan. 4, 1961. Mr. Rowland Burnstan assumed office on Feb. 13, 1961, succeeding Mr. Bradley Fisk, who resigned effective Feb. 9, 1961. Mr. C. Canby Balderston succeeded Mr. M. S. Szymczak, who resigned effective June 1, 1961. U.S. Executive Director of the International Bank for Reconstruction and Development and of the International Development Association, and U.S. Director of the International Finance Corporation, John M. Leddy (Erle Cocke, Jr., Alternate 10) U.S. Executive Director of the Inter-American Development Bank, Robert Cutler (Alexander M. Rosenson, Alternate) Representatives of the Department of Agriculture, the Bureau of the Budget, and the Development Loan Fund participated in the work of the Council on a regular basis, and representatives of other interested agencies took part on issues of interest to them. This participation by representatives of interested nonmember agencies continues a practice which has been followed during the entire period of the Council's existence. II. INTERNATIONAL MONETARY FUND In the period under review, 11 member countries relinquished the transitional arrangements under Article XIV of the Fund Agreement and accepted the formal obligations of Article VIII, which prohibits the imposition of restrictions on current payments, discriminatory currency arrangements, and multiple currency practices without the prior approval of the Fund. Twenty-one member countries have now accepted these obligations. Two member countries-Germany and the Netherlands-adjusted the par value of their currencies, and an initial par value was established for the Greek drachma. Over 70 percent of currency sales (members' drawings) during the period were made in currencies other than U.S. dollars. During recent periods, attention was directed to the problem of balance-of-payments deficits arising in whole or in part from capital movements. With convertibility of the major currencies used in international payments and well-developed exchange markets, international capital flows have become of substantial magnitude and importance in the balances of payments of a number of countries. The meaning of the Fund Articles of Agreement was clarified with regard to capital movements by the Executive Directors who agreed that, pursuant to Article VI and the other provisions of the Articles of Agreement, the Fund's resources may be made available to mitigate the unfavorable effects of capital transfers. The Fund also began to study proposals under which substantial amounts of currencies might be borrowed by the Fund from the main industrial countries under general arrangements pursuant to the provisions of Article VII. MEMBERSHIP AND QUOTAS In March 1961, Portugal and Nigeria became members of the Fund with quotas of $60 million and $50 million, respectively, and during the Fund fiscal period, applications for membership were received from the Republic of the Congo (Léopoldville), Liberia, Senegal, Sierra Leone, and Togo. During the half-year period under review, increases in quotas totaling $17.6 million became effective for the following countries: Costa Rica ($500,000), Tunisia ($2.1 million), and Uruguay ($15 million). As of June 30, 1961, the membership of the Fund in 10 Mr. Erle Cocke, Jr., assumed office effective June 19, 1961. cluded 70 countries, with quotas totaling $14,868.3 million. appendix table D-1.) Fund consultations EXCHANGE PRACTICES (See Member countries maintaining exchange restrictions under Article XIV of the Fund Agreement continued their annual consultations with the Fund concerning the further retention of such restrictions. As indicated in the Fund's Annual Report, during the fiscal year ended April 30, 1961, Fund staff members visited 38 member countries not only for the purpose of reviewing restrictive exchange systems but also to provide technical facilities and advice on a variety of related economic and financial problems. In some cases, the consultations have been associated with use of the Fund's resources in support of stabilization programs or other efforts to protect the currency. More recently, a number of consultations were concerned with an examination of the conditions under which member countries could move from Article XIV status to an acceptance of all of the obligations of Article VIII. For those countries which have accepted the obligations of Article VIII, annual consultations are mandatory only when these members maintain or introduce restrictions requiring Fund approval under this Article. However, in its Executive Board decision of June 1, 1960, it was the opinion of the Fund that "there is great merit in periodic discussions between the Fund and its members even though no questions arise involving action under Article VIII." As a result of this decision, regular consultations, on a voluntary basis, with members having accepted the obligations of Article VIII began in May 1961. Convertibility In its Twelfth Annual Report on Exchange Restrictions, issued in May, the Fund noted the substantial progress achieved when 11 additional countries-Belgium, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Peru, Saudi Arabia, Sweden, and the United Kingdom-relinquished the transitional period arrangements under Article XIV and accepted all of the obligations of convertibility for their currencies under Article VIII. The currencies of these countries had in fact been externally convertible for some time. The total number of countries under Article VIII is now 21, since 10 countries had previously accepted the obligations of that Article." Under Article VIII of the Fund Agreement, these countries are required to avoid restrictions on current international payments, multiple exchange rates, and discriminatory currency practices. Resort to such measures would require consultation with and prior approval of the Fund. Almost every currency used in financing international trade and payments is presently convertible in terms of the Fund Agreement, and most of the trade of the other Fund members is conducted in these convertible currencies. Payments restrictions In general, the decline in trade and payments restrictions continued during the period. Notwithstanding some progress toward the ultimate unification of multiple exchange rates, 11 member countries 11 Canada, Cuba, the Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Mexico, Panama, and the United States. |