APPENDIXES APPENDIX A TABLE A-1.-Estimated gold and short-term dollar resources of foreign countries, as of June 30, 1952 and 1953 TABLE A-1.-Estimated gold and short-term dollar resources of foreign countries, as of June 30, 1952 and 1953-Continued 1 Official gold holdings. For countries whose current holdings have not been published, available estimates have been used, or the figures previously published or estimated have been carried forward. * Includes reported holdings of U. S. Government securities maturing within 20 months after date of purchase. Excludes holdings of the International Bank and International Monetary Fund, the Bank for International Settlements (including the European Payments Union), and other international organizations. Total gold and short-term dollar holdings of international organizations were $3,866 million on June 30, 1953, and $3,610 million on June 30, 1952. Also excludes gold holdings of the U. S. S. R. Includes gold set aside as collateral for United States bank loans. Includes gold to be distributed by the Tripartite Commission for the Restitution of Monetary Gold to claimant countries, including Western European countries, in accordance with the Paris Reparations Agreement. No estimate made. ? Excludes sterling-area countries and dependencies of European countries. Less than $500,000. Source: Treasury Department and Board of Governors of the Federal Reserve System. TABLE A-2.-Net United States gold transactions with foreign countries, Jan. 1, 1945, to Sept. 30, 1953 [Negative figures indicate net sales by the United States; positive figures, not purchases] NOTE.-Figures will not necessarily add to totals because of rounding. Source: Treasury Department. APPENDIX B STATISTICAL TABLES ON UNITED STATES GOVERNMENT FOREIGN GRANTS, AND LOANS AND OTHER CREDITS EXPLANATORY NOTE The statistical tables presented in this appendix, and this Explanatory Note, were prepared by the Office of Business Economics, Department of Commerce, in consultation with the International Statistics Division, Office of International Finance, Treasury Department, in accordance with specifications of the National Advisory Council. The data in this appendix relate to aid, both gross and net, provided by the United States Government to foreign governments and other foreign entities during the period July 1, 1950, to June 30, 1953. The date June 30, 1950, virtually coincides with the beginning of Korean hostilities and is therefore a valuable reference point for tabulating not only economic but also the very large amount of foreign military aid appropriated for subsequent years. This break is desirable because of the shift in emphasis of foreign aid since June 1950 from purely economic to military and defense support. Summary data for the first 5 postwar years (July 1, 1945, to June 30, 1950) can be found in the Report for the period April 1-September 30, 1950, except for interest collections which are shown in table 11 in the Report for the period April 1-September 30, 1952. In preparing the appendix tables, data collected from reporting agencies have been adjusted in some instances to place in the proper period transactions which supplemental data have shown actually occurred prior to the period in which reported. However, such changes have been made only when the adjustments appeared sufficiently large to be significant. Items which are necessarily based on estimates have been adjusted or qualified on the basis of information received to the date of preparation of these tables, but in some instances are subject to future adjustments. Gross foreign aid is defined to comprise two categories-grants and credits utilized. Grants are largely outright gifts for which no payment is expected, or which at most involve an obligation on the part of the receiver to extend aid to the United States or other countries to achieve a common objective. Credits are loans or other agreements which give rise to specific obligations to repay, over a period of years, usually with interest. Foreign aid in some cases has been extended under indeterminate conditions, subject to future settlement. Indeterminate aid on this basis is included with grants, in the period rendered. When settlement for such indeterminate aid is agreed upon, the terms may call for a cash settlement or may establish a longterm credit. Such cash settlements are included in returned grants. The amount of the newly established credit is deducted from total grants in the period the credit was established and added to credits. The measure of foreign aid generally is in terms of goods delivered or shipped, services rendered, or cash disbursed by the United States Government to or for the account of a foreign government or other foreign entity. No attempt has been made in these appendix tables to allocate to foreign countries the aid rendered through the International Bank for Reconstruction and Development or the International Monetary Fund by use of United States Government investments. During 1946 and 1947 the United States Government invested $635 million in the Bank and $2,750 million in the Fund. The United States Government has a larger equity investment in the paid-in capital of those two institutions (approximately 35 percent) than any other government. (For data on the operations of these two international organizations, see ch. III and IV of the text of this Report.) 1 The United States Government receives some returns on its gross grants and credits. The returns which are deducted from gross grants and credits to arrive at net foreign aid include (1) reverse lend-lease; (2) the dollar value of the portion of grant counterpart funds paid to the United States for its use; (3) returned lend-lease ships; (4) returns of military equipment loaned; (5) cash received in war-account settlements for lend-lease and other aid; and (6) principal repaid on credits. 1 Counterpart fund operations were generally excluded from the data in the appendix of previous NAO Reports. This change to their inclusion in the present Report makes the data comparable to that under current operations under sec. 1313 of Public Law 207, approved August 7, 1953. In addition to the returns which are netted against foreign grants and credits, several types of transactions represent returns to the United States Government but are not included in these data. Reparations can be considered equivalent to a reverse grant but data are not presently available for such receipts. Except for returns of merchant and Navy ships, data on lend-lease returns are not included, because the data are not available. The major classes of these excluded lend-lease returns are small or auxiliary watercraft and all classes of aircraft. Goods, services, and foreign currencies furnished by governments of occupied areas, or taken by the occupation authorities and used to defray costs of military occupation and government in former enemy countries, are not included as reverse grants. Likewise, foreign currencies furnished by Japan under the Administrative Agreement implementing Article III of the Security Treaty of September 8, 1951, are not included as reverse grants. No cognizance of advances to the United States Government has been taken in the derivation of net foreign aid. Liabilities of the United States Government in the postwar period have all been considered short term. Examples of such liabilities are (1) goods and foreign currencies made available by liberated or occupied areas to the Armed Forces of the United States pending future settlement and (2) deposits made by foreign or international entities with the Agriculture Department against procurement orders. Returns exclude interest the United States Government collects on outstanding loans and other credits. In addition to the United States Government grant programs included in this appendix, there are several operations of the Government abroad which are sometimes called grants. Among these excluded transactions are (1) Costs of military occupation and government in former enemy countries, other than supplies for civilian economies generally obtained with United States appropriated funds. (The Berlin airlift is considered to have been a cost of military occupation.) (2) The transfer of certain naval vessels to China under Public Law 512 of the 79th Congress; the waiver to France of vessels intended as reparation to the United States from Germany; and the return of reparation vessels to Italy. (3) Pensions and annuities, dependency allotments, and certain claims abroad paid by the United States Government. (4) Relatively minor amounts of assistance under the programs for cooperation with the American Republics and as part of the international informational and educational activities of the United States Government, including cultural and educational aid rendered under the Fulbright and SmithMundt Acts (but scientific and technical cooperation is included). (5) Goods, services, and funds provided by private persons or organizations, even though furnished through Government-approved organizations such as the United Nations International Children's Emergency Fund or the American Red Cross. (6) Military assistance provided the Philippines under Public Law 454, approved June 26, 1946, and military assistance to Korea, including military surpluses left by withdrawal of American forces from those countries after World War II (naval equipment originally costing $59 million was transferred gratis to the Philippines; under disposal arrangements in Korea, surplus origirally costing $49 million was transferred gratis). (7) Intergovernmental claims which have been settled, sometimes by offset, although these claims may have had the effect of lend-lease or reverse lend-lease and were taken into consideration at the time of war-account settlements, for example, claims against the United Kingdom for supplies and services furnished in January-March 1946 which were waived by the agreement of July 12, 1948. (8) Contributions to the construction of roads in the Latin American Republics, particularly the Inter-American Highway (authorized under Public Law 375, approved December 26, 1941). (9) The contribution of hospitals, facilities, equipment, and care to the Philippines for Philippine veterans and the donation of a hospital to the people of St. Lawrence, Newfoundland. (10) Flood evacuation and other disaster assistance provided by the Armed Forces or the Public Health Service or assistance in the form of operational exercises (for example, the mass transportation of pilgrims to Mecca in August 1952). (11) Price allowances made on exports, such as under the International Wheat Agreement or in the foreign sale of surpluses, even when the "paid" |