foreign donations programs - PDF, 101 mb - usaid

the Act (country uses) are available without charge to
appropriations under the terms of the law. Economic
development grants under section 104(e) may be subject
to appropriation; however, the President is authorized
to waive this requirement. In Executive Order No.
11036, the President has further delegated this authority
to the Secretary of State. Title I agreements rcache2 in
1965 set aside no currencies for foreign development
grants.
In all cases agencies must await the crediting of currencies
to their accounts by the Treasury Department
before incurring actual obligations.
Table VI shows agencies responsible for each foreign
currency use program.
currncy se rogrrn.wise
Exchange Rates Applicable to
Title I Transactions
Title 1, Public Law 480 agreements provide for the
collection of local currencies at the rate for dollar exchange
generally applicable to commercial import transactions.
No special difficulty isencountered in applying
the provision if a unitary rate is maintained by the
recipient government. If more than one legal rate for
foreign exchange transactions exists, mutual agreement
as to the appropriate rate of exchange mnst be reached.
Throughout the period covered by this report, the
standard for determining deposit rates was section 101(f)
of Public Law 480, which requires that the U.S. obtain
rates of exchange applicable to the sale of commodities
under such agreements which are not less favorable than
the highest of exchange rates legally obtainable in the
respective countries, and which are not less favorable
than the highest of exchange rates obtainable by any
other nation.
Balance of Payments Benefit
'Whenever the United States is able to use foreign
currency holdings for disbursements that would otherbe
dollar transactions, a benefit to the national
balance c payments position is realized.
Most of the overseas activities of U.S. Government
agencies listed in table VI fall into this category.
Millions of dollars in direct benefits, and many longrange
indirect ones, accrue in the operation of military
and economic aid, support of market development
mpojects, in U.S. overseas construction programs, in the
wide variety of U.S.-sponsored scientific, cultural and
educational projects, and in sales of foreign currencies
to U.S. organizations and citizens.
Table VII shows the total of such benefits for each
year during the preceding decade.
TABLE Vl.-Balance of payments benefit derived from the use of foreign currency acquired without purchase for dollars, fiscal
years 1956-1965 (inmillions of dollar equivalents)
1956 1957 1958 1959 1960 1961 1962 1963 1964 1965
Foreign currency used under appropriations
for U.S. programs I --------------------- 240.9 258.6 270.5 24.0.6 208.3 240.1 242.1 287.0 321.8 341.3
Foreign currency used not requiring appropriations
for U.S. programs --------------- .6 21.5 25.6 33.5 37.2 20.0 15.5 3.9 11.7 11.9
Total foreign currency used for U.S.
programs ------------------------ 241.5 280.1 296.1 274.1 245.5 260,1 257.6 290.9 333.5 353.1
Less currency used under special foreign currency
appropriations--------------------------------------------------. 5 21.4 3 5 36.5 34.8 41.4
Balance of payments benefit derived
from foreign currency usage 2...... 241.5 280.1 296.1 274.1 245.0 238.7 220.0 254.4 3 298.0 1 311.7
1Includes sales of foreign currency to U.S. personnel.
- This assumes that programs other than those authorized by special foreign currency appropriations would have been carried on at
the same level had there been no U.S. foreign currency holdings.
3 Includes S73.3 million resulting from the unfunding of certain accounts pursuant to sec. 508 of Public Law 88-257.
1 Includes S97.4 million resulting from the unfunding of certain accounts pursuant to sec. 508 of Public Law 119-299.
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