Data regarding the status of American investments in foreign countries are contained in chapter III. Senate Resolution 103 in item 7 called for the legal and actual status of American direct investments in foreign countries. Chapter III includes a short analysis of United States treaties with foreign countries which affect the rights of our citizens to do business abroad and a brief survey of the default status of foreign bonds sold in the United States. In the chapter on national debts, taxes and incomes-chapter IVthere are shown as complete data as could be obtained relating to the per capita debt and tax burdens of each country and their relation to the national incomes of those countries. Supplementary data are given about the external debts of each country together with some information concerning the interest rates applicable to government borrowing. The balance of international transactions of the United States is shown in chapter V in standardized form for the period 1914-18 and by years from 1919 to 1947 together with a detailed tabulation of the foreign trade of the United States for 1914, 1932, 1939, and 1946 by major economic groups. Additional to this are data regarding the principal postwar foreign loans made by countries other than the United States and a list of the principal foreign loans made by private. institutions in this country. Chapter VI is devoted to a brief statement, in response to item 17, relating to the problem of servicing the foreign debt to the United States. CHAPTER I. FOREIGN CREDITS AND OTHER FINANCIAL AID BY THE UNITED STATES GOVERNMENT This chapter brings together replies to items 2, 3, and 8 in the proposed Senate Resolution 103. It is divided into three main sections: A. Foreign credits, including capital contributions to the International Monetary Fund and International Bank for Reconstruction and Development; B. other financial assistance in the form of lend-lease, civilian supplies, relief and rehabilitation, and financial aid; and C. assets held abroad in the form of installations and surplus property. Items 2, 3, and 8 read as follows: Item 2. The total loans made by the United States Government to foreign governments and agencies thereof from 1914 to 1933, inclusive, and from 1933 to the date hereof; itemized for each country, with the repayment history of each. Item 3. Existing commitments of the United States Government or representatives thereof, including alleged moral commitments, to extend American financial and economic aid to foreign countries and international organizations. Item 8. The value, classification, and location of United States Governmentowned property in foreign countries to December 31, 1946, including installations and surplus property. A. FOREIGN CREDITS This section contains data regarding the loans to foreign countries that have been made by the United States Government between 1914 and June 30, 1947, commitments that have been made to extend further loans to foreign countries and the outstanding indebtedness of those countries to this country. World War I intergovernmental debts, as well as loans and credits extended during and since World War II, are included. Part 1 of this section presents data relative to the World War I loans. This part has been brought up to July 1, 1947. Part 2 contains a series of tables relating to loans and credits to foreign countries by the Government of the United States since 1933. These tables relate to the total commitments, utilizations or disbursements, amounts still available for disbursement as of June 30, 1947, repayments and outstanding indebtedness, also as of the latter date. Tables 1 and 2 summarize all types of loans, credits, and grants to foreign countries by the United States Government. Further details by countries and by types are given in subsequent tables. Loans to foreign countries by the United States Government during and just after World War I amounted to $10,350,000,000. Of this amount, $7,077,000,000 was cash advanced before the armistice, $2,533,000,000 was cash advanced after the armistice and $740,000,000 represents credits extended for surplus property and relief supplies provided foreign countries. On these amounts, $282,000,000 was paid on principal and $671,000,000 as interest, prior to the date of funding. The debts after funding, including amounts not funded by Armenia and Russia, amounted to $11,909,000,000. This included $1,716,000,000 of unpaid interest accumulated to the dates of the agreements. On the funded debts, $476,000,000 has been paid on account of principal and $1,323,000,000 on account of interest. The serious financial condition of Germany in 1931 led to the proposal for a moratorium by the President of the United States. The condition of Germany affected the ability of other countries to make their payments to the United States because each of our principal debtors had payments due to it directly or indirectly from Germany in amounts somewhat greater than the payments due from it to the United States. Intergovernmental debts servicing was completely suspended for the fiscal year 1932. At the end of that year, however, most of the debts went into default, and for the most part, payments have never been resumed. Altogether, interest accrued and unpaid amounting to $3,892,000,000 has accumulated and has been added to the total indebtedness (see table 4). Only one debtor country, Finland, has made payments in recent years. TABLE 1.-Credits to foreign countries by the U. S. Government, through June 30, 1947 [In millions of dollars] 1 The principal of these debts as funded amounted to $11,577,000,000 and an additional $127,000,000 of interest was funded under the debt agreements. Unpaid interest accumulated since 1932 accounts for the increase in outstanding indebtedness notwithstanding repayments of principal totaling $758,000,000. 2 The following additional loan authorizations were announced by the Export-Import Bank between June 30 and Dec. 1, 1947: U. S. Scientific Export Association, $2,500,000; Austria, $13,505,000; Ecuador, $2,720,000; Egypt, $5,600,000; Canada, $300,000,000; Turkey, $8,000,000, and Belgium, $50,000,000. The allocation of European cotton credit to Finland of $7,500,000 and to Germany of $19,000,000 were also announced but were not additions to the total. 3 As of Nov. 25, 1947, utilization and outstanding were $3,350,000,000 and unutilized balance $400,000,000. On Sept. 30, 1947, the total amount outstanding was $7,862,000,000 and the unutilized balance on Oct. 1, 1947, was $1,807,000,000. On Sept. 30, 1947, the total of outstanding advances was $143,000,000, while the unutilized balance remained at $15,000,000. Source: World War I data, Treasury Department; data from Jan. 1, 1934, to Nov. 25, 1947, Clearing Office for Foreign Transactions, Department of Commerce. Of the $10,300,000,000 of loans and other credits extended since 1933, $9,300,000,000 has been granted and used since 1945. The principal exceptions were loans made by the Export-Import Bank, which was established in February 1934, and loans by the Reconstruction Finance Corporation, of which the largest was the loan to the United Kingdom in 1942. Since the end of World War II, the loan of $3,750,000,000 to the United Kingdom has been the largest. Export-Import Bank loans to many countries, lend-lease credits partly for postwar shipments and partly in payment of inventories of lend-lease goods suitable for postwar use, and sales of surplus property have accounted for the bulk of credits utilized and indebtedness outstanding (see table 1). The $10,300,000,000 of credits include $7,200,000,000 actually disbursed or utilized by the borrowers prior to June 30, 1947, and $3,100,000,000 not yet utilized on that date. Much of this $3,100,000,000 was utilized during the 5 months following June 30. Other financial assistance to foreign countries by the United States Government was dominated by lend-lease assistance to our Allies during the war, amounting to $47,806,000,000 (see table 2). The United States contribution to the United Nations Relief and Rehabilitation Administration and the provision of civilian supplies for the prevention of disease and unrest by the War and Navy Departments in occupied areas are also important. Some of the amounts shown in table 2 represent outright grants, while others are items as to which terms of repayment were to be negotiated but have not yet been settled. Postwar utilization of these forms of aid amounted, up to June 30, 1947, to $5,364,000,000. The unutilized balance as of the same date, amounting to $2,236,000,000 is comprised principally of civilian supply commitments for occupied areas, aid to the Philippine Republic, the aid to Greece and Turkey, and the post-UNRRA aid. TABLE 2.—Other financial assistance 1 to foreign countries by the U. S. Government, through June 30, 1947 1 Some of these items were outright grants, while others were subject to negotiations as to terms of repayment. The amount of credits extended or cash received as a result of negotiations have been deducted from these amounts. 2 Committed but not all appropriated (see explanatory notes, table 18). Utilizations in the quarter ending Sept. 30, 1947, are estimated to reduce the unutilized balance on Oct. 1, 1947, to about $1,700,000,000. 3 Excluding cash lend-lease. 4 Utilizations here reported reflect lag in fiscal records; authorizations are understated to extent of the same lag, estimated at about $150,000,000 as of June 30, 1947, which would bring the total authorization to $2,700,000,000. Source: Clearing Office for Foreign Transactions, Department of Commerce. funded debts, $476,000,000 has been paid on account of principal and $1,323,000,000 on account of interest. The serious financial condition of Germany in 1931 led to the proposal for a moratorium by the President of the United States. The condition of Germany affected the ability of other countries to make their payments to the United States because each of our principal debtors had payments due to it directly or indirectly from Germany in amounts somewhat greater than the payments due from it to the United States. Intergovernmental debts servicing was completely suspended for the fiscal year 1932. At the end of that year, however, most of the debts went into default, and for the most part, payments have never been resumed. Altogether, interest accrued and unpaid amounting to $3,892,000,000 has accumulated and has been added to the total indebtedness (see table 4). Only one debtor country, Finland, has made payments in recent years. TABLE 1.-Credits to foreign countries by the U. S. Government, through June 30, 1947 1 The principal of these debts as funded amounted to $11,577,000,000 and an additional $127,000,000 of interest was funded under the debt agreements. Unpaid interest accumulated since 1932 accounts for the increase in outstanding indebtedness notwithstanding repayments of principal totaling $758,000,000. 2 The following additional loan authorizations were announced by the Export-Import Bank between June 30 and Dec. 1, 1947: U. S. Scientific Export Association, $2,500,000; Austria, $13,505,000; Ecuador, $2,720,000; Egypt, $5,600,000; Canada, $300,000,000; Turkey, $8,000,000, and Belgium, $50,000,000. The allocation of European cotton credit to Finland of $7,500,000 and to Germany of $19,000,000 were also announced but were not additions to the total. 3 As of Nov. 25, 1947, utilization and outstanding were $3,350,000,000 and unutilized balance $400,000,000. 4 On Sept. 30, 1947, the total amount outstanding was $7,862,000,000 and the unutilized balance on Oct. 1, 1947, was $1,807,000,000. On Sept. 30, 1947, the total of outstanding advances was $143,000,000, while the unutilized balance remained at $15,000,000. Source: World War I data, Office for Foreign Transaction Jan. 1, 1934, to Nov. 25, 1947, Clearing |