foreign donations programs - PDF, 101 mb - usaid

imately $170 million, including applicable ocean transportation
costs, with eventual payment in dollars. The
agreements involve approximately 61.0 million bushels
of wheat, 6.4 million bushels of feed grains and 143,600
bales of cotton, plus important amounts of other surplus
agricultural commodities. (Appendix tables 31 and 34.)
From the signing of the first title IV agreement on
August 21, 1961 through December 31, 1965, a total of
65 agreements and amendments have been signed with
the governments of 23 countries. These provided for
financing exports of surplus agricultural commodities
having a market value of approximately $539 million,
including ocean transportation costs 2 and representing
a total CCC commitment of about $698 million,
To protect regular cash export markets during the
supply periods covered by the agreements and amendments
signed, the purchasing countries are required to
maintain normal commercial imports friom the United
States and other free world sources. Under the agreements
and amendments entered into during 1965, these
commitments to make commercial imports totaled more
than 433,000 metric tons of wheat, 8,600 metric tons of
feed grains, 349,000 bales of cotton, 29,500 metric tons
of edible vegetable oils, 43,000 metric tons of rice, and
3,763 metric tons of tobacco,
Shipments under title IV are continuing to increase in
volume, totaling about 1.7 million metric tons in 1965.
This was approximately equal to the cumulative quantity
of all such previous title IV exports. The market value
of the 1965 of shipments th 1965shipents was as aout about $23 $123 nillion, m ln bringreatly ringing to
$315 million the value of all title IV shipments through
December 31, 1965.
Dollar repayments to the United States from governnent-to-govcrnment
agreements began in 1963 and
amounted to approximately $2.3 million in principal and
interest in that year. Repayments in 1964 totaled $5.5
million, and in 1965 were $26.8 million ($21.4 million
principal and $5.4 million interest). As of )ecember
31, 1965, therefore, cumnulative dollar repayments under
title IV govcrnment-to-governmment sales agreements
2 At least 50 percent of the volume of earh commodity procred
under title IV is required to be shipped on U.S.-flag vessels. The
cost of shipping on U.S. vessels is financed under title IV agreements
and dollar repayment is made by the recipient country of
that portion of the costs equivalent to the foreign flag rate.
110
totaled $34.6 million (26.7 million principal and $7.9
million interest).
In addition to pursuing the objective of maximizing
immediate dollar sales of U.S. agricultural commodities,
title IV programs are designed to develop future foreign
markets for U.S. agricultural comnmodities and to assist
in the economic and social development of friendly
nations through extension of credit.
IWith these objectives in mind, and to assure that the
purchasing government's use of the credit is coordinated
with other U.S. development and assistance programs in
the country, the recipient country and the United States
negotiate an understanding regarding the purposes for
which the government of the purchasing country shall use
the local currencics which become available to it from
tlhe local sale of the title IV comnmodities.
The negotiation of title IV agreements may also
include mutual 9nderstandingsthe relating to importing
country's use of the commodities or conditions affecting
their sale and distribution. In negotiating the initial
title IV, Public Law 480, agreement with the Government
of Iran, for example, mutual agreement was
reached concerning reductions of inland rail freight rates
so as to facilitate tile use of imported corn for livestock
feeding. Iran subsequently reduced the freight rate on
corn and other feed grains to
wheat
the same
and
rate
eliminated
applicable
the
to
commercial profit tax on in­
barriers to the use of imported feed grains forlivestock
barriers the us a impotedtowad denfelietock
feeding. This is a first step toward development of'
enlarged donmestic dairy and livestock industry in
Iran and creates a potential commercial market for U.S.
feed grains.
The agreement with the Ryukyu Islands is another
example of the way in which title IV sales proceeds are
used to assist economic development of the country and
develop potential markets for U.S. agricultural conmodities.
Here, also, more livestock output is needed
to meet loca; demnand. Some of the title IV-financed
projects reach the farmu level in the form of loans to
individual livestock producers. Producer loans made
thus far total 82, primrily for hog production. Title IV
sales proceeds are also being used to finance construction
oales or mmareting sgterinand prcin
of facilties for marketing, slaughtering, and processing
livestock and livestock products and for importing, processing,
and distributing grain. These projects will build