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

[In millions of dollars]

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 by private United States lenders from June 30, 1945, to

July 1, 1947

Description of credit

Country

Date

Argentina.
Australia..

February 1947.
August 1946....

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.

January 1947... Sydney County Council, N. S. W., external sinking fund,
32 percent 10 years due 1957; to redeem city of Sydney'
external sinking fund, 52 percent due 1955.
Commonwealth of Australia, 33% percent-15 years due
1962; to redeem 42 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.

February 1947...
June 1947.

do

Bolivia.
Canada.

April 1947.
June 1945..

26. 1

Based on gold collateral..

Province of Alberta serial bond, 234-34 percent, maturing
1951-60; to provide funds for debt reorganization plan of
1945.

September 1945. New Brunswick debentures, 24 percent, due 1961, to re

deem 4 percent debentures due 1947.

4.5

September 1946.
do.....

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).

.2

.4

1.7

.5

.do.

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

.2

December 1946. Housing Enterprises of Canada, Ltd., 22 percent fixed

TABLE 44.-Foreign credits1 by private United States lenders from June 30, 1945, tơ July 1, 1947-Continued

Description of credit

The City of Montreal refunding debentures Oct. 15, 1967..
Province of New Brunswick 5 year 22 percent debentures
May 1, 1952.

Donnacona Paper Co., Ltd., 15-year 31⁄2 percent bonds
Gurney Foundry Co., Ltd., 3 percent mortgage bonds
Apr. 1, 1948 to 1952.
New Brunswick Oil Fields, Ltd., capital shares (no par
value).

Advances for taxes on copper as follows: Mar. 21, 1947-
$10,000,000; Feb. 1947-$7,000,000.

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.

3-year revolving credit, 2 percent for 2 years and 21⁄2
percent thereafter.

Kingdom of Norway External 10-year, 312 percent due
April 1957, to increase dollar exchange reserves.
Loan to National Bank of Nicaragua to rehabilitate agri-
culture, 32 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.

1

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

4 years at 21 percent over current American discount rates;
to finance grain shipment. Based on gold.

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

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

Amount

Mil.ofdol.

77.8

5.0

5.5

.2

.3

3.7

40.0

.3

.1

7.5

93.3

8.0

20.0

16.0

10.0

4.5

6.8 2. 1

.1

1.0

7.0

2.2

1.0

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

[In millions of Canadian dollars]

Amounts authorized

do.

100.0

60.0

19.0

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

ARGENTINA

Date

May 14, 1946..

242.5

125.0

do..

15.0

30.0

3.0 1,250.0

1,844, 5

1 The terms of the export credits were 214 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.

Signed Mar. 26, 1947,
ratified by Bolivia
May 26, 1947, and
Argentina, Sept. 23,
1947; not yet effec-
tive as of Sept 30,
1947.

do

do

Drawn to
Dec. 31,
1946

Negotiated Dec. 13,
1946 (not yet rati-
fied).

.do.

52.6

16.5

3.9

143.8

64.0

5.4

16.4

2.9

540.0

845.5

Advanced
as of June
18, 1947

56.0

23.3

5.2

169.3

87.1

6.7

18.9

2.9

690.0

1, 059. 4

1

Remarks

Encumbered as of June 18,

1947

10.5 6.2

16.7

Maximum accumulation of balances, no interest. Repayment in goods within 3 years.

Finance balance of trade. Interest, 3.5 percent. Repayment in 10 semiannual installments.

Finance development corporation.
Interest, 4 percent.
Finance public-works program. In-
terest, 3.75 percent. Repayment
in 50 years through semiannual
payments beginning in tenth year.
Finance trade deficit. Revolving
credit. Interest, 3.5 percent. Re-
payment in 5 years beginning at
end of 3 years.
Finance public-works program.
Bonds to be purchased at 96 per-
cent of par. Interest, 3.75 percent.
Repayment in 25 years.
Finance economic development. In-
terest, 4 percent.

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

ARGENTINA-Continued

Remarks

Mar. 8, 1946..

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

Finance purchase of Argentine prod

June 14, 1940 and Sept. Cover all trade and payments; bal17, 1946.

ances also used for debt repatriation. 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 provided 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 Britishowned 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.