Thus it is fair to say that as of December 1, substantially all of the postwar loans and grants by the United States Government have been used, directly or indirectly, to purchase American goods and services. The amounts of such loans and aid by quarters from July 1, 1945, to June 30, 1947, are shown in table 43.

TABLE 43.-Outflow of United States long-term capital and unilateral transfers, July 1, 1945 to June 30, 1947

Source: International Economics Division, Office of Business Economics, Department of Commerce.

POSTWAR FOREIGN LENDING BY PRIVATE UNITED STATES SOURCES

A list of foreign loans by private lenders in the United States is attached as table 44. It is believed to be relatively complete. Except for the stock issues and a few short-term loans, the issues were predominantly for refunding purposes and did not supply foreign countries new capital. The figures for each issue represent the principal amount of bond and debentures and the amount at offering price for stock issues. Approximately 85 percent of these amounts were subscribed in the United States. The other 15 percent were subscribed abroad and do not represent foreign lending by this country.

1

TABLE 44.-Foreign credits 1 by private United States lenders from June 30, 1945, to

July 1, 1947

Description of credit

Country

Date

Argentina..
Australia.

February 1947.
August 1946...

· Bolivia. Canada.

Swift International Co., Ltd., certificates for capital shares.
Commonwealth of Australia bonds, 10 years-34 percent
due 1956; to redeem State of N. S. W. external 5 percent
of 1958.

December 1946. Commonwealth of Australia bonds, 31⁄2 percent-20 years
due 1966; to redeem State of N. S. W., 5 percent of 1959
and State of Queensland, 6 percent of 1947.

February 1947.

January 1947... Sydney County Council, N. S. W., external sinking fund,
311⁄2 percent 10 years due 1957; to redeem city of Sydney
external sinking fund, 51⁄2 percent due 1955.
Commonwealth of Australia, 336 percent-15 years due
1962; to redeem 41⁄2 percent bonds due 1946.
Commonwealth of Australia, external sinking fund bonds,
34 percent-10 years due 1957; to redeem external 5 per-
cent due 1957.

June 1947.

Amount

Mil.ofdol.

3.9

20.0

25.0

8.5

45.0

19.0

19.0

5.0

26. 1

4.5

20.0

December 1945.
January 1946..

do.

Province of Alberta, serial debentures.

Northwestern Utilities, Ltd., first mortgage 4 percent
sinking fund bonds A Jan. 1, 1966.

2.0

1.0

do..

March 1946.

do..

Newcor Mining & Refining, Ltd., common shares (no par
value).

February 1946... Canadian Utilities Co.:

First mortgage 334 percent B Feb. 1, 1971 _
Canadian Pacific Ry, series F, equipment trust certificates.
1.6 percent due August 1946 to February 1953.
British Columbia Telephone Co. (1971) first mortgage 25-
year bonds, 334 percent, series A.

Dominion Steel & Coal Corp., Ltd., first mortgage 15-year
31⁄2 percent bonds, series A, 1961.

.2

2.5

12.6

3.5

1.8

do

do.
do.

Saguenay Power Co., Ltd., first mortgage 3 percent sink-
ing fund bonds, series A, Mar. 1, 1971.
Gaspe Oil Ventures, class A common stock.

23.2

7

Shawinigan Water & Power Co. (Mar. 15, 1971) first mort-
gage coll. tr. bonds, series M, 3 percent.

23.3

Gold City Porcupine Mines, Ltd., common stock (P. V.
$1 Canadian).

Cardiff Fluorite Mines, Ltd., common stock P. V. $1.
McCall-Frontenac Oil Co., Ltd. (Oct. 1, 1971) 3 percent
first mortgage and coll. tr. bonds 1946 series.

November 1946. Northwestern Utilities, Ltd., 25-year 321⁄2 percent bonds.
do..
Buffonta Mines, Ltd., common capital stock (P. V. $1
Canadian).

...do..

Giant Yellowknife Gold Mines, Ltd., common shares
(P. V. $1).

December 1946. Housing Enterprises of Canada, Ltd., 21⁄2 percent fixed
do.

Great Lakes Paper Co., Ltd., first mortgage sinking fund
bonds, 32 percent, 1966.

4.8

Gatineau Power Co., 3 percent first mortgage bonds,
series C, June 15, 1970.

45.0

9.5

1

.2

.4

TABLE 44.-Foreign credits 1 by private United States lenders from June 30, 1945, to

July 1, 1947-Continued

3.7

Taxes on copper sales for 1946 totaled $13,300,000 thereby
leaving a balance of $3,700,000.
To finance shipments of raw cotton.

Expreso Aereo Inter-Americano S. A., 4 percent con-
vertible notes, due November 1951.
Orange-Crust de Cuba, S. A. (Cuba), common stock, P.
V. $1.

Bowater's Newfoundland Pulp & Paper Mill 32 percent
bonds due June 1, 1968: to retire other bonds and to
finance improvements and additions.
Export-Import Bank and 50 commercial banks each to
participate in about half of $200,000,000 loan-1 and 2
years at 24 percent.
10-year informal agreement between KLM Airlines,
Netherlands, and Kidder Peabody, New York, for pur-
chase of new equipment in the United States.
10-year external sinking fund, 334 percent; to finance post-
war reconstruction.

40.0 .3

.1

7.5

93.3

8.0

20.0

Panama

June 1947.
May 1946.
January 1947.
do...

Kingdom of Norway External 10-year, 32 percent due
April 1957, to increase dollar exchange reserves.
Loan to National Bank of Nicaragua to rehabilitate agri-
culture, 3 percent for 8 years. Based on gold.
TACA Airways, S. A., capital stock P. V. $5.
(Peruvian International Airways, 50-cent convertible pre-
_ferred stock, and common stock.

10.0

4.5

6.8

2.1

.1

1.0

TACA Airways, S. A. 4 percent convertible notes July 15,
1959.

4 years at 211⁄2 percent over current American discount rates;
to finance grain shipment. Based on gold.

To Spanish Exchange Institute to finance cotton purchases
in United States.

November 1946. American-Anglo Transvaal Investment Corp., Ltd.,
capital stock.

1Excludes the $250,000,000 International Bank debentures sold to the American public in July, 1947. C. POSTWAR FOREIGN LENDING BY FOREIGN COUNTRIES Several countries have made foreign loans since VJ-day and have made advances to other countries connected with the financing of current trade balances. Principal among these lending countries is Canada as a result of loans to eight countries amounting to $594,000,000 plus the $1,250,000,000 credit to the United Kingdom. The total amount advanced by Canada under these loans was, as of June 18, 1947, $1,059,000,000 (see table 45). Sweden also has made financial aid available to foreign countries in substantial amount. The largest credits were to the U. S. S. R., Norway and the United Kingdom. Total utilization of all Swedish loans as of December 31, 1946, amounted to $204,000,000. The amounts authorized totaled $765,000,000. Loans by the Argentine Government (as listed in table 46) totaled about $970,000,000 but no data are available relative to the amount utilized.

Many of these credits have been the result of payments agreements which provide for the accumulation of balances by either country depending on the relative volume of imports and exports. In most

cases a maximum amount to be accumulated was specified, any excess to be paid in gold or some transferable currency. The usual period is 1 year with the possibility of renegotiation after that time.

Others among the listed loans are still in the course of negotiation, or have not been ratified by one or by either of the countries involved. This is particularly true of the Argentine loans. Even among the loans or credits that have been made effective there is a scarcity of current data regarding the extent of utilization.

Lists of the available data regarding foreign loans made by countries other than the United States are given in tables 46 to 49. They are not complete but are given primarily for purposes of illustration.

TABLE 45.—Postwar Canadian loans and advances to foreign governments 1 [In millions of Canadian dollars]

1 The terms of the export credits were 24 to 3 percent interest, 54 years maturity, and payments of principal beginning 1 to 6 years from date of loan. The loan to Britain bears 2 percent interest, and is repayable in 50 annual installments beginning in December 1951.

2 Excluding the wheat loan to U. S. S. R. of $10,000,000 which was granted in 1943 and 1944 and thus was not a postwar loan.

TABLE 46.-Postwar foreign loans by Latin-American countries

TABLE 46.-Postwar foreign loans by Latin-American countries-Continued

Remarks

Finance exchange of goods. Interest, 3 percent. Repayment, end of each year.

Finance purchase of Argentine prod

ucts.

Finance balance of payments deficit.
Utilized Dec. 31, 1946: 150,000,000
pesos. Interest, none.
ment after 3 years.

Repay

Finance balance of payments deficit. Provides 600,000,000 peso credit which incorporates previous 150,000,000 peso credit. Repayment after 3 years (or 5 years by mutual consent). Utilized Dec. 31, 194694,000,000 pesos (in advance of formal signature).

To finance purchases of cereals, raw
materials, etc. Agreement runs
through 1951. Terms apparently
similar to other recent Argentine
agreements.1

For purchase Argentine products.
Credit available only against gold
collateral. Interest: 312 percent.
Repayment not specified. Agree-
ment expires July 31, 1950.
Finance purchases of foodstuffs.
Interest, 2.75 percent. Repay-
ment, 3 years.

Revolving credit to finance pur-
chases of Argentine products. In-
terest, 2.75 percent. Repayment,
subject to negotiation after 3 to 5
years.

Bonds purchased at 96 percent to
repay outstanding debts. Interest,
3.75 percent. Repayment in 25
years.

Cover all trade and payments; bal-
ances also used for debt repatria-
tion. Argentina's blocked sterling
rose from equivalent of 1.4 billion
pesos in August 1945 to 1.75 billion
at the end of 1946, representing a
credit extension of 350 million pesos
or about 100 million dollars.
The Sept. 17, 1946, agreement pro-
vided convertibility of current
sterling and some blocked sterling;
the blocked balance in August or
September 1947 was reported as
1.58 billion pesos-a decline of about
50 million dollars since Dec. 31,
1946. The balance now blocked,
plus about 180 million dollars more,
is to be used for purchase of British-
owned utilities under present
plans.

Finance current payments. Repay-
ment within 3 years after expiration
of agreement. Agreement duration
2 years and thereafter until termi-
nated on 3 months' notice.
Finance current payments. Inter-
est, 2 percent. Repayment in 5
years beginning in 1952. $10,000,000
available in 1947.
Finance purchase of Brazilian prod-
ucts. Interest, 4 percent. Repay-
ment by 1960 beginning in 1951.
Finance balance of payments deficits.
Utilized Dec. 31, 1946, $3,700,000.
Utilized June 30, 1947, $25,000,000.
Interest and repayment terms not
known.

A confidential agreement apparently provides either that the credit may reach 1,000,000,000 Belgian francs or perhaps that the equivalent of 500,000,000 cruzeiros shall be the maximum.