Mr. STAMBAUGH. We appeared before the Senate Foreign Relations Committee just about a week ago in a hearing on Senator Humphrey's bill, a counterpart of which has been introduced here in the House by several Members of the House which is known as the food for peace bill. That contains a provision that the administration of the Cooley amendment funds be transferred from the Export-Import Bank to the Development Loan Fund. And at the conclusion of that hearing Senator Humphrey stated to us that he was convinced that the responsibility should remain in the Export-Import Bank. The CHAIRMAN. I am glad to hear that, because I was under the impression that Senator Humphrey had a provision in his bill otherwise. Mr. STAMBAUGH. It was in his bill. The CHAIRMAN. He thinks now that it would be wise not to do that? Mr. STAMBAUGH. So he stated the other day. The CHAIRMAN. That is all right. Mr. STAMBAUGH. I would hope that would mean that it would be reported out of the committee in the Senate without that provision in it. The CHAIRMAN. As to Pakistan and India, the rupees there, what have you done about those? Mr. STAMBAUGH. We have done everything that we could. I think that we are making progress, Mr. Chairman. As a matter of fact, one of our purposes in sending a representative to New Delhi, to establish him there for a protracted period, was to try to stimulate interest in Cooley loans in India. And in Pakistan we are doing everything we can there. Maybe Mr. Blowers would care to enlarge upon that. Mr. BLOWERS. Mr. Chairman, I and another director have called on nearly all of the bankers in New York and Boston and Chicago to tell them that we have these funds available, and the conditions under ability to negotiate these sales contracts. In other words, a country might object to its being placed on a revolving basis. The CHAIRMAN. I do not see why a country would object, because, actually, it is aiding and building up the economy of the host country. Mr. STAMBAUGH. From our point of view that would be beneficial to our operation. The CHAIRMAN. I wish you would consider it and, perhaps, propose an amendment. Mr. STAMBAUGH. Mr. Chairman, before the Foreign Relations Committee of the Senate the other day we were asked to prepare a memorandum on that point. We will be very happy to provide this committee with the same memorandum. The CHAIRMAN. Thank you very much. (The memorandum appears on p. 317.) The CHAIRMAN. Mr. Heimburger has a question to ask you. Mr. HEIMBURGER. I just told Mr. Poage that I think that I can answer the question he asked the gentleman of what happens to the fund after it gets back into the Treasury. My understanding is that the money we obtain in foreign currency becomes a part of the funds available to the Bureau of the Budget under the agreement which has been entered into and that it can then be used for any purposes stipulated in the agreement. There is usually a clause providing that it can be used for any of the purposes specified in section 104 of the act. The CHAIRMAN. By the Export-Import Bank for the purposes for which it was organized? Mr. HEIMBURGER. I do not know the answer to that. The CHAIRMAN. That is what we are talking about. Mr. STAMBAUGH. I am afraid not, because the only law under which funds are apportioned to the Export-Import Bank are for the purpose of making what we formally call Cooley loans, that is, under the Cooley amendment. And the collections on those loans, if they get back into the Treasury, would have to have some additional legal authority to transfer them back to the Bank. The CHAIRMAN. In this memorandum you might suggest an amendment to the law, for the fund to be reused for the purposes for which it was originally set aside. Mr. STAMBAUGH. We will be very happy to do that, subject, of course, to the control that we are under of the Bureau of the Budget. It will have to be approved by the Bureau of the Budget if we suggest legislation. The CHAIRMAN. Where did this idea of transferring the administration of this program from the Export-Import Bank to some other agency of the Government originate? Mr. STAMBAUGH. Are you referring to the food for peace program? The CHAIRMAN. I am referring to the suggestion that your agency be deprived of the right to administer the program and to turn it over to the Development Loan Fund. Mr. STAMBAUGH. You say when did it originate? 44273-59-20 Mr. STAMBAUGH. We appeared before the Senate Foreign Relations Committee just about a week ago in a hearing on Senator Humphrey's bill, a counterpart of which has been introduced here in the House by several Members of the House which is known as the food for peace bill. That contains a provision that the administration of the Cooley amendment funds be transferred from the Export-Import Bank to the Development Loan Fund. And at the conclusion of that hearing Senator Humphrey stated to us that he was convinced that the responsibility should remain in the Export-Import Bank. The CHAIRMAN. I am glad to hear that, because I was under the impression that Senator Humphrey had a provision in his bill other wise. Mr. STAMBAUGH. It was in his bill. The CHAIRMAN. He thinks now that it would be wise not to do that? Mr. STAMBAUGH. So he stated the other day. The CHAIRMAN. That is all right. Mr. STAMBAUGH. I would hope that would mean that it would be reported out of the committee in the Senate without that provision in it. The CHAIRMAN. As to Pakistan and India, the rupees there, what have you done about those? Mr. STAMBAUGH. We have done everything that we could. I think that we are making progress, Mr. Chairman. As a matter of fact, one of our purposes in sending a representative to New Delhi, to establish him there for a protracted period, was to try to stimulate interest in Cooley loans in India. And in Pakistan we are doing everything we can there. Maybe Mr. Blowers would care to enlarge upon that. Mr. BLOWERS. Mr. Chairman, I and another director have called on nearly all of the bankers in New York and Boston and Chicago to tell them that we have these funds available, and the conditions under which we are willing to lend them and have asked them to bring this to the attention of any of their clients who have businesses in these countries. We are getting some response from that. The applications are coming in now. As a matter of fact, we have one application from India which would take about 10 percent of our present available rupees, that is, this one application would. The CHAIRMAN. What does that application contemplate in the way of rupees? Mr. BLOWERS. It is for the building of a fully integrated aluminum plant in India. The CHAIRMAN. Is this money available for housing, or could it be made available for housing in those countries? Mr. BLOWERS. We have made a loan in Peru to help housing, that is, we have proposed it to Peru. We have not got their agreement yet. It is available for housing. As a matter of fact, there is a large company in the Middle West that has sent a representative to Pakistan and to India to look into the possibility of using some of these funds in India for housing. The CHAIRMAN. You have consummated about 82 loans? The CHAIRMAN. Could you give us, for the record, information indicating what is to be accomplished by the loans, whether it is for the building of housing or for other internal improvements? Mr. BLOWERS. They run the whole gamut of industrial enterprise. We have a list of all of the loans that we have made under this program to date and the purposes for which they were made, Mr. Chair man. The CHAIRMAN. I would like to have that in the record. Mr. BLOWERS. We will supply this for the record. The CHAIRMAN. Give it to the reporter and we will include it in the record at this point. (The tabulation follows:) |