LOANS MADE BY THE AGENCY FOR INTERNATIONAL DEVELOPMENT TO FOREIGN COUNTRIES DURING CALENDER YEAR 1963 AT 3/4 OF 1 PERCENT FOR 40 YEARS ( REPAYABLE IN DOLLARS)

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CIA-RDP66B00403R000200190011-6
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RIFPUB
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K
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2
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December 16, 2016
Document Release Date: 
January 4, 2005
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11
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Publication Date: 
January 1, 1964
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OPEN
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196 Approved For R GRESSgNFil5ff8~WBO% RA 100190011-6 17143 it is obvious that with a little austerity in its imports Turkey could have man- aged to discover the additional $11,375 needed to pay the U.S. interest at the rate of 4 percent rather than to expect the United States to make a combined loan-grant to it. In my report, I stated with respect to these three-fourths of 1 percent loans: It is time to stop fooling the American people. These are not loans-they are com- bination loans and grants-with the grant portion coming close to equaling the amount of the loan. , There is great opposition to this amendment-or, for that matter, to any amendment increasing interest rates on loans under our foreign aid program. In the recent disaster which befell the State of Alaska, I tried most unsuccess- fully to persuade the Administrator of the Small Business Administration to re- duce disaster loans from 3 percent to the lesser interest rate we charge under our foreign aid program for loans to aid the private sector of foreign countries- three-fourths of 1 percent. As I said, I did not succeed. My proposal was met with a variety of objections. First, I was told that these loans did not go to the private sector of the foreign countries-they only ended up there after the foreign government had tacked on a tax in the form of an additional in- terest rate. That our money was being used to strengthen the private sector of foreign economies was conveniently for- gotton. Then, I was told that I did not have a full appreciation of the thinking of busi- ness. I was told that to a businessman, the interest rate was of secondary impor- tance when compared to the other terms offered, that is, the repayment period and any moratoriums on. repayment. But when we seek to increase the interest rate-as I shall do through this amendment-to a rate equal to that paid by the United States on its own borrow- ings, interest rate becomes a vital mat- ter and we are told that if the amend- ment succeeds then the foreign nations will be unable to borrow. This I cannot understand. Low interest rates are not necessary and are unimportant when they concern Alaska businessmen, stricken by one of the greatest natural disasters to befall any State. But when they concern for- eign borrowers, low interest rates be- come the be-all and end-all of the entire program and we are warned that the program will fall unless the interest rate is kept at three-fourths of 1 percent per year. This is called having one's cake and eating it, too. This argument I cannot understand and will not support. If interest rates are unimportant to Alaska businessmen seeking to borrow money from the United States in time of disaster, then they are unimportant to foreign govern- ments seeking. to borrow money from the United States to aid the private sectors of their economies. If the AID administrators are trying to tell the Congress that Tanganyika would turn down the loan of $250,000 from the United States merely because of an annual interest rate increase of $8,105 then they are asking the Congress to believe something that is well-nigh unbelievable. If there is to be equality of treatment both here at home and abroad then my interest rate amendment should be en- acted. The ACTING PRESIDENT pro te:m- pore. The amendment will be received and appropriately referred; and, without objection, the amendment and list of loans will be printed in the RECORD. The amendment (No. 1175) submitted by Mr. GRUENING, was received, and or- dered to lie on the table, as follows: On page 1, between lines 6 and 7, insert the following: "TITLE 1-DEVELOPMENT LOAN FUND "SEC. 101. Section 201(d) of the Foreign Assistance Act.of 1961, as amended, which relates to the Development Loan Fund, is amended to read as follows: "'(d) Funds made available for this title shall not be loaned or reloaned at rates of interest excessive or unreasonable for the borrower and in no event shall such funds (except funds loaned under section 205 and funds which prior to the date of enactment of the Foreign Assistance Act of 1964 were authorized or committed to be loaned upon terms which do not meet the minimum terms set forth herein) be loaned at a rate of interest of less than the rate arrived at by adding one-quarter of 1 per centum per annum to the rate which the Secretary of the Treasury determines to be equal to the average annual interest rate on all interest- bearing obligations of the United States then forming a part of the public debt, as com- puted at the end of the fiscal year next pre- ceding the date the application for the loan is approved and by adjusting the result so obtained to the nearest one-eighth of 1 per centum.'" Redesignate the succeeding sections under part I, accordingly. The list of loans presented by Mr. GRUENING is as follows: Loans made by the Agency for International Development" to foreign countries during calendar year 1963 at 3/4 of 1 percent for 40 years' (repayable in dollars) Country, borrower, and purpose Date of loan agreement Num- ber of years re- pa- ment Inter- est rate Amount of loan Country, borrower, and purpose Date of loan agreement Num- ber of years re- n me t Inter- est rate Amount of loan AMERICA LATIN LATIN AMERICA-eon. Argentina: Costa Rica: Argentina: Government of Banco Nacional do Costa Rica: Agri- Central Housing Bank ----------- 3 June , 1903 40 % $12,500,000 cultural development-. ------------- July 23,1963 40 % $5,000,000 Route 12 road project------------- Jan. 21,1963 40 0 ~ 6,700, 000 30 00 000 Republic of Costa Rica: t h i Sl l do 40 % 2 000 000 program loan_______________ Road Mar. 18, 1963 4 / ,5 , ng-------- acemen ous um rep ----- -------- , , - Feasibilities studies _ _____________ June 3,1963 40 % 3000,000 Cachihydroelectric project ------- ----- do-------- 40 % 1,500,000 Grain storage facilities____________ Oct. 10,1963 40 % 21:700,000 Metro emergency water supply--- ----- do-------- 40 % 1,400,000 : Bolivia: highway program-_-_ ----- do -------- 40 % 2,100,000 : Government of Bolivia: Financing subloans_------- Dec. 23,1963 40 % 5, 000,000 Access roads _____________ _ ________ Aug. 1,1963 40 % 7,200,000 Dominican Republic: National Housing La Paz-El Alto Highway--_-_-___ Aug. 17,1963 40 % 3,400,000 Bank: Savings & Loan Association-____ Jan. 2,1963 40 % 2,100,000 El Alto Customs Center__________ _____do_______ 40 % 2,200,000 Ecuador: Banco Industrial, S.A.: Assist in Government of Ecuador: financing subloans__________________ _____ do ________ 40 % 2,400,000 Quito-Quevedcroad -------------- Sept. 1,1983 40 % 2,700,000 of Bolivia: Argricutural Government Economic and engineering studies- Sept. 4,1963 40 N 2,000,000 Bank------------------------------ ----do------- 40 % 3,700,000 Administrative and fiscal reform-- Sept. 2,1963 40 % 1,600,000 Brazil: El Salvador: S.A.: De- Credito & Financiamonto Republic of El Salvador: velopment bank-------------------- Mar. 6,1963 40 % 4,000,000 Primary school construction.-____ Sept. 18, 1963 40 2,400,000 Cia. de Carbons Coloidois: Carbon Agricultural loan program________ Agricultural _____do________ 40 8,900,000 black plant Mar. 11,1063 40 % 2,000,000 INSAFI-------------------------- ----- do-------- 40 4, 500, 000 Government of Brazil: Emergency Honduras: Government of Honduras: stopgap assistance__________________ Apr. 24,1903 40 % 25,500,000 Small water system-------------------- Aug. 22,1963 40 1,050,000 Super Desenvolvimento, N.E.: Jamaica: Government of Jamaica: Project Emergency electric power ----------- Oct. 29,1983 40 % 2,400,000 assistance_______________________________ Nov. 29,1963 40 1, 500, 000 Chile: Nicaragua: Government of Nicaragua: of Chile: Development Government Las Mercedes Airport____________ _ ___ July 25,1963 40 1,000,000 program -- - ---- - - - - -------- --- - ----- Jan. 31,1063 40 % 35, 000,000 Panama: Instuto do Acuedletos: Water Colombia: supply and sewerage system ------------ Feb. 6,1963 40 6,000000 , Government of Colombia: Feasibility Peru: studies--- _ _--------- - - -------- - - - - June 26,1983 40 Y4 4 , 000 4,000,000 , Government of Peru: Institute of Colom- National Housing Lima water, sewerage ------------- Mar. 15, 1963 40 % 8,600,000 -------------- bia: Self-help housing -----___ _____ do 40 Y4 7 , 500 000 , Feasibility studies________________ ----- do-------- 40 % 3,000,00E Colombia Institute of Agrarian Re- Uruguay: Banco Hipotecarle del Uru- form: Supervised agricultural credit_ ----- do -------- 40 X 10,000,000 guay: Home construction______________ Feb. 28,1963 40 % 6,000,001 Government of Colombia: Mineral 1983 Se t 18 2 000 000 resources survey____________________ p . , Approved For Release 2005/01/27 : CIA-RDP66B00403R000200190011-6 17144 A ll~t Approved For Release 2005/01/27 : CIA-RDP66B00403R000200190011-6 CONGRESSIONAL RECORD - SENATE August 3 Loans made by the Agcncji for International Dccclopmcnt to foreign countries during calendar year 1963 at 3/4 of 1 percent for 40 years' (reaayabie in dollars)-Continued Country, borrower, and purpose Date of loan agroement NurD- ber Of year re- Pay- ment Inter- est rate Amount of loan Country, borrower, and piuposo Date of loan agreement Num- her of years re- pay- meat Inter- est rate Amount of loan LATIN AMERICA -Oentlnned ATRICA Venezuela: Cameroon: Government of (ameroon: C,A. Bask for Economic Integration: Extension of railway system ------------ Aug. 77,1963 40 34 $9,200,000 Feasibiitystudies ---------------- rt l n d h t Nov. 29,I99 d 40 4 31 $2,600,000 0 000 000 Ethiopia: Government of Etilopla: 3d hi h ome oa epa men ----------- ----- o------- D , , 1 g way prograin______-__________ i r C r t G t d I - Dec. 2, 1903 40 34 4,000,000 FAR EAST vo oas : ove nmen . vory y Coast: Ilighwayequipment ------------ Nov. 29,1963 40 3t 1,700,000 Liberia : Korea: Government or Korea: Char gsong Government of Liberia. National Coal Mine District --------------------- Dec. 7, 190 40 34 '9,600,000 medica]canter------ .---_-_.-------_ Dec. 5, Igo 40 34 5,800,000 Monrovia Power Authoi lty. MT NEAR EAST AND ROUrn ASIA coffee hydroelectric project -------- _ Sept, 26, 190 40 Ya. 24,300,000 Government of Liberia: Monrovia Afghanistan: Junior-SentorHigh SOhaL_________ Oct. 23, 190 40 34 1,700,000 Government of Afghanistan: Mall: Arlana Afghan Airlines ----------- Mar, 23,1963 44 Y. 2.625,000 Government of Mali: Transport equipment ------------ Doe. 3,1963 40 34 2.000.000 Teachers Training Coll )go__------ Dpc. 4,1903 40 y 2,100,000 India: Cwitral Veterinary Latoratory at UovemmentcfIndia: Bamakn____._----- ----------- ---__d0._______ 40 1,100,000 Ramagundam thermal poser_____ May 21,1983 4 8.400,000 Niger: Government of Niger: Develop- DelhtCthermal power --________ Nfnr. 8,1963 16,0110,000 ment hark ----------------------------- Dec 14,1963 40 34 600,000 Satpura thermal power _ _________ _-do -__---_ 40 26.100,000 Nigeria: Central RopewayFproject ------- Oct. 21,1963 7,700,000 Government of Nigeria: NonprojectImports -------------- dr Ch ta i II th l Feb. 23,1983 O t 21 19W 411 40 240.000.000 16 000 000 Ibadanwatersuptp(~ly............ Doc. 4,1903 40 34 12,100,000 an apura s g erma ---- Fifth railway loan________________ . c , ----- do-------- . , 16.850.000 Calabar-IKCIM Aand_.__________ Somalia: Gorer-nalent of Soma is: Cidst- _____do________ 40 34 8,600,000 Cucga coal washery plant -------- Nov. 2D, 1063 6,100,000 Mato port -------- ----------------------- ----- do-------- 40 54 3,800,000 Tarapur nuclear power ----------- N l N Dec- 1.1963 40 80.[100,000 Sudan: Nepal: Government of epa : el al In- dustrlal Development Corp. Dec. 8,1963 40 1, 000, 000 Government of Sudan: Industrial development bank-.--- July 14,1963 40 34 2,000,000 Pakistan: Kbartounlsewerage-------------- Dec. 7,1903 40 34 8,800,000 Government of Pakistan: Sawmill and timber estrac ;ton Oct 23 1983 40 200 2 Tanganyika: f T tk t s I+ialIris, eradication program- _.__ , . Feb. 28,1963 40 . , 000 8.800,000 angany Governmen o I: Cares Salaam watersup)lysystrm May 20,1963 40 s 2,200,000 Airport and airways equip sent Mar 22, 1963 40 2.100,000 Urban water supplies ............ Dec. 4,1963 40 1, 300, 000 Satin content and reclamation University college________________ Oct. 9,1963 40 800,000 projectNo,2__ _-___-__ ._do-____ _ 40 10.800.000 Teacher training colleg........... _ Dec. 4,1963 40 800000 General commodities, 2d -------- . Ch l h t; Mar 27.1983 22 1963 M 40 80.000,000 Commodity dovelopm)nt train- ----- -------- 250,000 a na anc orage projec ---------- Feasibility studies ar Mar 27 1963 3.800.000 2 000000 I1nngg center. ricultural colle e A do 40 34 1 250 000 ___ --- ----_ CPS and Malni-Rechna DCAB , , _______________ g g Progi-amloan------ ------------- -------- ----- Dec. 6,1963 40 , , 1,000,000 Project --- - - - _ Coa tal embankment r je t Aug. 15,1963 d 760,000 Electrical equipment------------ T si .---do -------- 40 300,000 s p o c .-_ General consultants -------------- - o.___.._ ----- ----- d------- 6.500.000 4.400.000 un a; Government of Tunisia: 3d commodity loan - G l i i bli r 'Sept. 28. 1963 D 70.500. 000 Water and Irrigation pi ojects_ Feb. 15,1063 40 34 2, 400 000 , enera serv ces npu ealth._ c ec. 9,1963 1.500,000 Commodity assistance----.__--_- Juno 20,1963 40 34 16,000 090 Investigative services ____ _ _ ___ _ ___ Nov. 20,1063 6.600,000 Construction of univer..ity-------- Oct- 31,1963 40 s 1,800,000 5th railway loan --- __ -__ _.____ T l i ti 4 _do._...__- O 3 I4.501 000 Agriculturalequipmen.--------- _ -__.do_.----- 40 6,500,000 e ecommun ca on expam on --- ct. 23, 196 4.700.000 Uganda: Machinery pool Organ;cation WAPCA Doe. 9, 1963 6,000,000 Government of Uganda: . Mechanical e i t N 20 1983 34 Development bank-------------- l Oct. 4,1963 40 4 2,000,000 qu pmen .. --------- Turkey: ov. , 40 1,600,000 s --_____________ Secondary schoo Oct. 11,1963 40 2,400,000 Government of Turkey: K b d Ci - 3d Grand total for allccintrlcs --- _ --------------- ----- ______ 1,057,925,000 e an an ceroa feasibility studies. July 15, 1963 40 380 000 Feasibility studies................ G l d i Oct. 15, 1963 40 t4 8. on 0000 enera ,,,,, ______ commo it es , - United Arab Republic-Egypt: Sept;. 11, 1963 40 !4 3x.000.000 Government of United Arab Re- P Cai.roWest power project --------- rdb ard r C j t Feb. 20, 1963 N 063 ~j4f 80,600,000 a o p o ec ________________ ov. 1% 1 34 5,700,000 Total amount Total amount Argentina----------------?-- ?74, 400, 000 Etadopia- ---------------- $4,000,000 Bolivia ---------------------- 18,900.000 Ivory Coast. ______________.__ 1,700.000 Brazil ----------------------- 33, 900, 000 Liberia ------------------- __ 31.300.000 Chile ----------------------- 35, 000. 000 Mali-------------------- --- 8,200, GOO Colombia ---------------_____ 23, 500.000 Niger_______________________ 500.000 Costa Rico ------------------ 17, 000, 000 Nigeria ---------------------- 20.700.000 Dominican Republic--------- 2, 100.000 3cenalla--------------------- 3.600.000 Ecuador --------------------- 6, 300, 000 6vldan______________________ 5,800.000 El Salvador _______________.__ 15, 800. 000 Tanganyika ----------------- 7,900,000 Honduras------------------- 11050,000 Tunisia_____________________ 26.700.000 Jamaica__________________._- Nicara ua 1,500,000 - 1 00 000 Uganda_____________________ 4.400,000 g ___________________ Panama --------------------- ,0 , 6,000,000 Peru - ------?-- 11, 600, 000 Uruguay -------------------- 6,000,000 Venezuela ------------------_ 12 500 000 Korea ---------------- -- , , 9.500.000 INTEREST EQUALIZATION TAX Afghanistan-------------- .__ 4,625,000 -ACT-AMENDMENTS (AMEND- India ----------------------- 414, 150, 000 MENT NO. 1176) Nepal 1 000 000 ---------------- -- Pakistan _ ______ __ ________ . , 169 450 000 Mr. ?3OF;E submitted amendments, in- _ _ _ Turkey ---------------------- , , as, 350, 000 tended to he proposed by him, to the bill United Arab Republic (HR. 80001 to amend the Internal Reve- (Egypt) ----------------- 36.300.000 nue Code cf 1954 to impose a tax on ac- Cameroon________________.__ 9, 200, 000 quisitions of certain foreign securities in order to equalize costs of longer term financing in the United States and in markets abroad, and for other purposes, which were ordered to lie on the table and to be printed. 1' OTICE OF HEARINGS ON SENATE RESOLUTION 204, RELATING TO PERSECUTION BY THE SOME'' UNION OF PERSONS BECAUSE OF THEIR RELIGION Mr. FULBRIGHT. Mr. President, as ciairman of the Committee on Foreign B.elations, I desire to announce that the c)mmittee will hold a public hearing on t e resolution (S. Res. 204), condemning persecution by the Soviet Union of per- sons because of their religion, beginning at 10:30 a.m. In room 4221, New Senate C'fflce Building, on Monday, August 10. Approved For Release 2005/01/27 : CIA-RDP66B00403R000200190011-6