MEMO TO CABINET COMMITTEE ON BALANCE OF PAYMENTSFROM MERLYN N. TRUED

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R002900140004-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 18
• Document Creation Date: December 21, 2016
• Document Release Date: October 6, 2008
• Sequence Number: 4
• Publication Date: August 30, 1963
• Content Type: MEMO

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DEPUTY ASSISTANT SECRETARY
OF THE
TREASURY
TREA has not
reviewed.
Processed
IAW CIA
TREA
arrangement
letter dtd
4/11/08.
TREASURY DEPARTMENT
WASHINGTON
Merlyn ~1\Trued
DHS Review Completed.
August 30, 1963
MEMORANDUM TO Cabinet Committee on Balance of Payments
Secretary of Defense
Secretary of Commerce
Under Secretary of State
Administrator of AID
Special Representative for Trade Negotiations
Director, Bureau of the Budget
Chairman, Council of Economic Advisers
Mr. McGeorge Bundy, The White House
Attached for your information is the Bureau of the
Budget's third quarterly report on International Trans-
actions of the Federal Government, dated August 26, 1963,
as submitted to the President.
A x n It 111
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EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
WASHINGTON 28. D. C.
AD?aNISTRATIVELY CONFIDENTIAL
(Not to be reproduced)
AUG 26 1963
',1E .iORANDUI FOR THE PRESIDENT
Subject: International transactions of the Federal Government,
fiscal years 1962 to 1965
This report presents the current outlook for Federal receipts and expendi-
tures affecting the balance of payments. It presents for the first time
estimates of fiscal 1965 overseas transactions, summarizes agency gold
budget reports for the last two quarters, and indicates the status of the
issues that have come up during the reviews of these reports.
Summary .
As a result of the first year's operation of the gold budget procedure,
it is now possible to examine the Government's international transactions
over a 4-year time span.
SUI-11.ARY: INTERNATIONAL TRANSACTIONS OF THE FEDERAL GOVERNMENT
(Fiscal years.
In millions)
1962
1963
1964
1965
actual
estimate
estimate
estimate
Payments
Department of Defense............
$2,649
$2,733
$2,662
$2,484
Agency for International
Development .....................
800
669
510
410
Other.... ... eq.* .... 4 ...........
1.369
1 641
1 476
1 44 2
Total ......................
4,__
5,0 -3
4,648
4,346
Receipts
Department of Defense ............
899
1,275
1,000
1,000
Export-Import Bank ...............
655
749
863
942
Treasury Department ..............
347
1,099
810
782
Other... 0.0 . . . . . . .. . . . ... .. . . . . . .
387
744
375
420
Subtotal......... ... ........
2,288
3,867
3,0148
3,14+4
Less: Special transactions 1/...
274
1,805
980
2/750
Total.... ... ........ :.....
2014
2 062
2.067
-on'
Excess of payments (-)
Including special transactions...
-2,530
-1,176
-1,600
-1,201.
Excluding special transactions...
-2,804
-2,981
-2,580
-1,951
1/ Special transactions include Treasury sales of medium-term, nonmarketable
securities, advances on military exports, and loan prepayments.
2/ Since receipts from special transactions are difficult to predict, this
figure should be considered a rough estimate of general magnitude.
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These estimates reflect the reduced levels of AID and Defense expendi-
tures outlined in your special July 18 balance of Payments Message. They
do not include the savings from the Administration's proposal (currently
before Congress) to release reserved, U. S.-owned foreign currencies.l/
If adoptea, this proposal would result in one-time savings totaling $40
million for fiscal years 1964 and 1965 combined.
if the 19b5 estimates are realized, the net balance of payments outflow
from Federal transactions--excluding special receipts--will have been
reduced by almost $1.0 billion from 1963, and $600 million from 1964.
Roughly 70 percent of the reduction between 1963 and 1965 would, according
to current estimates, result from decreased payments, with the remainder
resulting from increased regular receipts. t3etween 1964 and 1965, the
estimates for decreased payments and increased receipts contribute about
equally to the overall decline in net balance of payments outflow.
During the last quarter, the Bureau of the Budget has called the attention
of a number of agency heads to the need for top level consideration of the
Government's receipts and payments entering the balance of payments. The
Budget Bureau also conducted a special review of offices and missions
abroad, and took up with agencies a number. of specific questions arising
from their gold budget submissions. Where it appeared that savings could
be made, the agencies were requested to make appropriate changes in their
estimates.
In general, the latest gold budget submissions show considerable improve-
ment over earlier ones, both with respect to the accuracy and completeness
of the reporting and control systems, and with respect to agency efforts
to reduce balance of payments costs.
Budget bureau review of agency estimates.
Careful review by the Bureau of the Budget of gold budget submissions
resulted in a number of reductions of agency target figures for fiscal
year 1964 and estimates for 1965.
The changes in Defense and AID figures--by far the largest--were largely
necessary to make these agencies' figures consistent with their commit-
ments to the Cabinet Committee on the Balance of Payments and your
July 18 Balance of Payments Message.
Other reductions primarily reflected cutbacks in foreign operations
resulting from the Bureau of the Budget's review of offices and missions
abroad, and the sharp reductions of foreign research grants.
1/ The reserved currency availability has not been included because the
gold budget accounting system is not currently designed to show changes
in foreign currency balances. A possible change in gold budget account-
ing which would reflect changes in foreign currency availabilities is
being considered, however.
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CRAi GES Ii! AGENCY GOLD BUDGET SUBMISSIONS
(In rdllions)
Fiscal year 1964 target Fiscal year 1965 estimate
Agency Agency
submis- Final submis- Final
sions Change target sions Change estimate
Payments
AID and Defense 1/.. X3,278 -$105 $3,173 $3,215 -$321 $2,894
Other changes 2/.... 1,289 -93 1,196 1,279 -61 1,218
Unchanged........... 280 - 280 234 - 234
Cotal..........
4.849 1.97 6 +4, 28 -3822 -73-47
Receipts
Export-Import bank.. 832 +31 863 722 +220 942
Other agencies (not
changed) ........... 2,185 - 2,185 2 202 - .2 .202
Total.......... 3,017 +31 3,048 2 +220 3
Excess of payments (_) -1,829 +229 -1,600 -1,803 +602 -1,201
1/ Changes for AID and Defense were made primarily to reflect their goals
as outlined in the President's July 18 Balance of Payments Message,
which had not been taken into account in their original submissions.
2/ Of which $15 million in 1964 and $17 million in 1965 were the result
of reclassifying the `!'rust Territories of the Pacific as U. S. rather
than foreign areas for gold budget purposes.
Increased receipts for the Export-Import Bank were based on changes in
the Hank's budgetary outlook that took place after the submission of its
June gold budget statement.
Current issues.
The following projects or investigations are either well underway or have
been completed:
1. Offices and missions abroad: civilian agencies.--All civilian
agencies with offices and missions abroad have submitted detailed justi-
fications of these installations to the Bureau of the Budget along with
suggested cutbacks where possible. So far, the Budget Bureau review of
agency materials has resulted in the following:
(1) The Department of State has announced that it will close 13 posts
and reduce strength in three others. It is also making plans to relocate
a number of functions in excess currency countries. Such measures may
reduce payments abroad by $1 million.
(2) USIA has proposed to close or withdraw support from nine.offices
abroad and make other staff reductions with a balance of payments savings
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of ~373 thousand. The Budget Bureau has asked the agency to consider
further measures which would result in additional savings of $570
thousand.
(3) ~~rAwA is studying the feasibility of reducing the number of
tracking stations abroad. Resulting savings could amount to ~l.2 million
in fiscal year 1964 and $2.2 million in 1965. (Approximately one-third
of this amount would show up directly in the gold budget. The balance
would involve payments by U. S. contractors abroad and therefore would
be reflected in the private sector of the balance of payments.)
(4) The National Science Foundation, the Department of Commerce,
the Department of Health, Education, and Welfare, the Atomic Energy Com-
mission, and the Veterans Administration have been asked to consider
cutbacks in, or elimination of current or expected small overseas posts.
The Treasury Department has also been asked to cancel plans to open an
office of the Secret Service in Latin America in 1965.
(5) It is now expected that customs pre-inspection stations in Bermuda
and Nassau (which involve Treasury, Justice, and Agriculture personnel)
will be eliminated.
More specific results are expected as the Budget Bureau and the agencies
pursue questions that have come up during the initial review.
2. Review of military attache and PNiAAG functions abroad.--As part
of its review of overseas offices and missions, the Budget Bureau studied
the current needs for personnel assigned to military attache and military
assistance advisory functions overseas. It appears that the military
attache structure overseas can be modernized to reflect current needs
for this kind of overseas military representation. The Budget Bureau -
has suggested to the Department of Defense numerous specific areas in
which personnel reductions should be considered. The Bureau has also
asked the Defense Department to consider reductions in MAAG personnel,
in addition to those already contemplated by the Department.
Balance of payments savings from the implementation of the Budget Bureau
suggestions on both military attaches and TAAGscould amount to $10 million
annually.
3. Peace Corps local support.--The Peace Corps is investigating
steps to secure host country support of local currency costs of its pro-
grams abroad. In some cases, it may be feasible for such countries to
use their portion of foreign currencies generated under the P. L. 480
surplus agricultural disposal. programs to provide such support.
4. Agriculture programs.--The Department of Agriculture has prepared
a detailed paper exploring a number of ways to achieve balance of payments
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savings through the use of agricultural surplus programs. Since these
programs involve several agencies other than the Department of Agriculture,
the Cabinet Committee on the Balance of Payments is expected to review
the paper and work out with the Department an appropriate specific program.
5. Payment of pensions in excess currencies.--The Treasury is cur-
rentiy establisi-iing a system to use excess foreign currencies for oenefit
payments for veterans life insurance, civil service retirement, and social
security. Such payments will replace those currently made in dollars to
recipients living in six of the eight excess currency countries--Poland
and xugosiavia will be excluded. At present, Poland and Yugoslavia account
for about 4>5 million of the total of ,b million of pension and similar
payments in excess currency countries. However, the State Department has
requested tnat dollar payirients be continued in these two countries because
of the current political difficulties involving the most favored nation
trade treatment of them. The Department anticipates an adverse reaction
from the governments of Poland ana Yugoslavia to the use of foreign cur-
rencies for pensions since tyre balance of payments savings we would achieve
would produce a corresponding balance of payments loss for the countries
involvea. The Department expects to be able to reconsider the question
in a few months.
6. research grants abroad.--Tne bureau nas arranged to have agencies
mating; grants for research abroad cut back such programs as rapidly as
possible and encourage the support of the programs by the countries involved.
The primary agencies making research grants.overseas are the National Science
'r'oundation and the Iational Institutes of health. Small amounts of foreign
research are also supported by the Defense Department and NASA. Savings
of ~8 million are estimated for fiscal year 1961?1 with larger amounts
(4J0 to X14 million) estimated for future years.
.7. Use of reserved foreign currencies.--The Administration's request
to allow freer use of U. S.-owned foreign currencies reserved for specific
programs is currently before Congress. If approved, this proposal will
allow such currencies, which would otherwise be held for periods up to
five years, to be used to meet current needs. As a result, payment of
dollars to purchase an equivalent amount of currencies will be postponed.
If' approved, this measure will produce a one-time balance of payments
savings of approximately $40 million.
8. "Letter of credit" for the Inter-American Development Bank.--The
management of the Inter-American Development Bank will shortly present
for Board approval a proposal to use a "letter of credit" system to insure
that future commitments made by the Social Progress Trust Fund will be
tied to procurement in the United States.
The remaining projects or investigations, listed below, are being given
active consideration, but their outcome is uncertain:
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1. Renegotiation of untied AID loans.--AID has been asked to
scrutinize untied loans made by the Development Loan Fund which still
carry undisbursed balances. AID is investigating the possibility of
renegotiating such loans to tie them to procurement in the United States
in those cases where they would otherwise finance substantial amounts
of offshore procurement.
2. Travel of-U. S.-based Government officials.--The Budget Bureau
is currently exploring the need and techniques for a full scale review
of overseas travel by Federal Government personnel based in the United
States. If preliminary findings warrant, a full scale review of such
travel will be conducted.
3. Foreign buildings.--The Congress has authorized a $13 million
overseas building program for the State Department, and it now appears
that the Department's fiscal year 1964 appropriations may include the
necessary funds. In the event such appropriations are approved by Congress,
the Budget Bureau is requesting the Department to consider measures such
as lease-purchase arrangements to minimize the short-term balance of pay-
ments effects of its building program.
4. Validity of overseas pension claims.--`T'he aiudget Bureau has asked
the ao ropriate agencies to insure that all U. ;. pension and similar
periodic payments.overseas are valid. A spot cneck of OAK recipients in
Greece revealed that a considerable number of unjustified benefit payments
were being made. The Veterans Administration and the Department of Health,
Education, and Welfare have been asked-to coordinate efforts with the State
i:)epartment to strengthen the existing checks against payments of unjustified
c1air.: .
5. Ai]Cprograms.--The Atomic E'nerc^?l Commission has been asked to look
into-the possibilities for expanding its receipts from sales of atomic
products abroad. It has also been asked to rely, to the extent possible,
on outright sales, rather than on long-term lease or other arrangements
which would delay the full balance of payments benefits accruing from
its sales.
The A.EC has also been asked to consider reducing the size of the Atomic
i3orrib Casualty Commission's program in Japan. The Commission directs and
supports research on the aftereffects of the atomic blasts there.
6. Uranium procurement.--Interagency consultation is underway re-
viewing the possibility of renegotiating the existing contract for pro-
curement of uranium concentrates from South Africa. Various alternatives
are being considered--directed toward possible deferral, revision or
cancellation to achieve balance of payments savings.
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Summary by agency.
The following table shows current gold budget estimates for those agencies
which account for the bulk of the Federal Government's international trans-
actions:
i4tAJOR IiNTEEiATIONAL TRANSACTIONS OF THE FEDERAL GOVERNIUVIT--
- BY AGENCY, FISCAL YEARS 1963-1965
(In millions)
Change from
Change from
previous
previous
1963
1964
year
1965
year
Payments
Department of Defense........
$2,733
$2,662
-$71
$2,484
-$178
Agency for International.
Development .................
669
511
-157
410
-101
Treasury Department..........
570
533
-37
584
+51
Department of State..........
455
367
-88
330
-37
Atomic Energy Commission.....
244
140
-104
93
-47
Department of iiealth,
Education, and Welfare......
126
129
+3
142
+13
Veterans Administration......
69
69
-
69
-
Other ........................
178
237
+59
233
-4
'T'otal .................
55 ,0143
57073-
-, 4
-395
-303
Heceipts
Department of Defense........
1,275
1,000
-275
1,000
-
Treasury Department..........
1,099
810
-289
782
-28
Export-Import Bank...........
749
863
+114
942
+79
Agency for International
Development... * .............
535
160
-375
190
+30
Department of Agriculture....
87
81
-6
90
+9
Other ........................
122
134
+12
140
+6
Total ...................
3 7
3,0
X19
31
+96
Special transactions (included
in receipts
Sales of medium-term, non-
marketable securities.......
787
500
-287
Advances on military exports.
364
250
-114
3donscheduled receipts on
loans... ......... eso ... * ....
. 654
-424
Total ...................
1,805
980
750
-230
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All of the agencies listed anticipate declining payments from fiscal year
1963 through 196 except 'T'reasury and HEY (the latter being uncontrollable
social security payments). The Treasury increase in 1965 is accounted
for largely by transactions with the inter-American Development Bank and
the international Development Association. Most of the increase is ex-
pected to take the form of cash contributions to the IDB. Some encash-
#nents of non-interest-bearing notes that have formed part of past
contributions to both the IDB and the IDA are also estimated. (Contri-
butions in the form of notes are not included in the gold budget until
they are cashed.)
The increase in "other" payments in 1964 is primarily due to projected
payments by the Foreign Claims Settlement Commission for settlement of
Philippine war damage claims as recently authorized by the Congress.
The sharp drop in payments in 1964 (over 40 percent) and 1965 of the
Atomic energy Commission is the result of expected reductions in procure-
ment of uranium concentrates abroad under existing procurement schedules.
All of the agencies with substantial receipts, with the exception of the
ii.xport-Imtport bank, expect them to decline in 1964. These changes can be
explained for the most part by special transactions, which decline, in
total, slightly more than total receipts. AID received prepayments from
Italy and Germany on loans totaling ip369 million in 19b3 which will not
occur in later rears. The Export-Import Baru, on the other hand, antici-
y,ates consicoera:bly increasea loan i-)repayments. Treasury anticipates a
sharp arop in receipts from the recently introduced medium-term bor-
roa.i.n,;s which equals the expected drop in total receipts. ;similarly,
1114 million of the drop in Department of Defense receipts is because
of the nonrecurring nature of advances on military exports. These
advances for 1903 include Y230 million resulting; from tne use of a
"blocked account" to finance military exports to Germany. (The total
muount involved in the blocked account was ~46U million, half of which
fell in fiscal year 1962.)
special transactions cannot be estimated with confidence for 1965. The
amount included--~750 million--(undistributed by type of transaction)
should be considered only as an indication of general magnitude.
Geographical distribution.
While payments to western Europe and to the other countries of the world
are expected to decline, the rate of decline is considerably greater for
the non-European countries.
Payments to Western Europe are now estimated to drop by 9 percent between
fiscal years 1963 and 1965. The corresponding figure for the rest of the
world is 20 percent. To put it another way, Federal payments to Western
Europe are expected to be 41 percent of the total in 1963, but 44 percent
of the total in 1965, despite a drop in the absolute amount of such
payments.
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DIS'1'RIBUTIOA OF W;R JAT'IONAL TRANSACTIONS OF THE
FEDERAL GOVERNMENT, BY AREA
(Fiscal years. In millions)
1963 1964 1965
estimate estimate estimate
Raymenta
Western Europe (including inter-
national organizations located
there) ............................... 02,074
02
009
$1
895
Other
countries...... . 0 .... .......... 2,493
,
2,201
,
1,973
Other
and
international organizations
undistributed .................... 470
438
477
Total ............................ 5,o43
4,67
4,312
Receipts
Western Europe (including inter-
national organizations located
there).,, ... 0..** ...... *..* ..........
2,955
1,908
2,065
Excluding special transactions......
(1,150)
(928)
(1,315)
Other countries...... ...... 0 .... 0 ... 0.
885
1
101
1
045
Other international organizations
,
,
and undistributed.... ................. 27
38
35
Total .......................... 3,867
3,
39147
The W1 billion drop in receipts from Western Europe between 1963 and 1964
is largely explained by special transactions, all of which are with Western
Europe. In 1965, the increase in regular receipts from Western Europe is
expected to more than offset the further decline in special transactions.
Validity of estimates.
While a number of problems of a statistical nature remain, annual estimates
are much more reliable than was the case last year. In the past, both
receipts and payments tended to be somewhat underestimated. On the pay-
ments side, the estimates for fiscal year 1963 have increased by 2 percent
with each quarterly report. For 1964, however, the latest estimate shows
a slight decline from the earlier figure. Estimates for receipts have
also increased from one report to the next, with increases rangin . from
a low of 2 percent to a high of 17 percent.
The June ,cold budget submissions included 1965 estimates for the first
time. These estimates will'be sharpened considerably 'for the September
gold budget submissions since by that time agencies will have a clearer
idea of what their regular budgets will contain. The estimates of receipts
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tend to be less reliable than expenditure estimates, since many of the
receipts involve large and discrete amounts, as well as special trans-
actions which are difficult to predict far in advance.
C,iAA+GLS I.' GOLD BUDGET ESTIMATES
Fiscal years 1963 and 1964
(In millions)
Fiscal years1963,
as reported in:
Fiscal year 1964,
Change from
as reported in:
Dec.
I-larch
Change
June
March
March June Change
Pay erts......
04,617
4,941
+$124
$5,043
+$102
$4,680
$4,648
-$32
Receipts 1/...
3,220
3,781
+561
3,867
+86
2,933
3,048
+115
.,xcess of
payments
-1,597
-1,159
+438
-1,176
-17
-1,747
-1,600
+147
l/ Includes special transactions.
The experience to date with agency quarterly (as opposed to fiscal year)
estimates has been less gratifying. Agencies can easily miss their quar-
terly estimates by considerable amounts because of small changes in the
timing of transactions--changes which are not related to their efforts
to reduce balance of payments costs. Since the work involved in producing
'these quarterly estimates is considerable, we are proposing to ask agen-
cies_for only semiannual data. however, we would continue our quarterly
review of issues involving the Federal sector of the balance of payments.
Future gold budget procedure.
We are satisfied that the gold budget has been useful in limiting the
adverse effect of Federal Government activities on the balance of payments.
It has been an effective means of obtaining top management attention to the
balance of payments problem. Moreover, the procedure, while not perfect,
has been improved greatly.
At the same time, as this report indicates, we have now reached the point
where any significant further savings will have to come about through major
changes in agency programs. In view of the foregoing, we feel that more
emphasis should be given to the program aspects of the gold budget and
less to the more mechanical statistical aspects, particularly in light of
the burden the statistical reporting imposes.
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We expect, therefore, to limit the statistical gold budget submissions
to two a year: one in September and one in March. These statistical
submissions will be timed to provide as liuch coordination as possible be-
tween the gold budget and the regular budget submissions in the fall and
preview submissions in the spring.
After the transitional report this September, we further expect to continue
our quarterly reviews, but confine them to specific issues for the two
quarters for which no statistical reports will be made. We also expect
to acquire data only for semiannual time periods, rather than quarterly
time periods as has been our practice. We expect to use the semiannual
data as the basis for setting semiannual agency targets since, as indicated
earlier, quarterly data are subject to short-run fluctuations which make
analysis difficult. However, we will continue to place primary emphasis
on fiscal year targets, using the semiannual targets primarily as a means
of evaluating current progress.
Through these changes in the gold budget system we hope to sustain its
usefulness as a means of encouraging agencies to do their best to help the
balance of payments, while at the same time redirecting staff efforts towards
those areas where tine greatest results may be expected.
Elmer B. Staats
Acting Director
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ANNEX I.
Total by Agency .....................................
S-i
ANNEX II.
Changes from Original Agency Gold Budget Submissions.
S-1+
ANNEX III.
Total by Area .......................................
S-5
NOTE: These tables reflect agency submissions and revisions made
as a result of Bureau action, including reductions from the review
of offices and missions abroad. Because of the different require-
ments for agencies reporting quarterly and agencies reporting an-
nually, the following adjustments were made in Annex I (Agency
estimates) for the purpose of comparability: (1) estimates were
made in all columns for agencies reporting annually for the Oct.-
Dec., Jan.-March, and April-June periods, (2) in the "Last esti-
mate" columns for FY 1963 and FY 1964, the figures for agencies
reporting annually represent a relisting of current estimates, and
(3) in columns titled "Target" and "Last estimate", NASA figures
represent a relisting of current estimates (since this is the
first time NASA has reported on a quarterly basis).
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ANNEX I
INTERNATIONAL TRANSACTIONS OF THE FEDERAL GOVERNMENT
(In millions of dollars)
July-Sept.
FY 1964
Oct.-Dec.
Jan.-Mar. 1963
Apr.-June 1963 1963
FY 1963
Current
1962
Last Prelim.
Current estimate
Last
Current
Last
estimate
FY 1965
final
Target
estimate
actual
Target
estimate
(Target)
estimate
estimate
estimate
(Target
estimate
A.
Payments by Agencies:
1. Reporting Quarterly
State ...............
148.2
111.3
125.6
48.7
89.7
142.2
98.5
477.2
454.7
349.0
366.9
329.8
AID
?
148.5
158.6
152.9
151.2
159.1
193.8
166.3
648.4
668.6
573.5
510.5
410.1
................
USIA
10.0
10.7
10.3
10.3
10.2
9.7
10.2
39.7
39.4
44.8
40.9
46.5
Peace Corps .........
3.3
3.4
3.2
2.9
3.8
3.4
3.7
11.7
11.0
23.8
21.4
21.4
Export-Import Bank
3-5
3.4
Foreign Claims
Settlement Commission
*
7.1
*
*
1.8
.1
.1
1.9
.2
48.3
23.3
20.1
Defense .............
733.8
651.0
644.2
663.2
637.4
667.6
695.4
2,665.6
2,733.0
2,603.9
2,662.4
2,484,0
AEC .................
59.1
65.6
73.6
65.0
46.9
55.0
39.9
243.7
243.8
136.9
139.8
92.9
NASA ................
1.1
1.6
1.6
1.6
2.5
2.5
3.1
6.2
6.2
13.0
12.6
11.0
Agriculture .........
3.3
3.4
3.8
3.4
3.9
3.7
4.0
14.4
13.8
16.4
16.4
20.2
Panama Canal ........
8.0
9.2
9.2
8.5
9.2
9.2
9.7
35.0
34.2
40.2
39.1
42.3
Interior ............
.8
5.8
2.4
1.0
10.7
1.1
1.3
19.9
3.8
22.3
9.5
5.5
HEW .................
30.0
31.9
30.8
30.5
31.7
36.3
30.1
121.4
125.8
132.3
129.0
141.5
VA ..................
17.3
19.4
19.7
17.6
17.1
17.3
17.5
71.2
69.4
69.2
69.2
68.5
Commerce ............
2.7
5.4
2.8
3.4
3.9
3.8-
3.0
12.1
12.8
18.9
16.7
14.3
Post Office .........
3.8
3.8
4.6
4.7
4.4
4.4
4.0
17.4
17.5
18.2
18.0
18.0
Treasury ............
147.8
101.1
121.6
127.3
139.2
182.8
105.8
517.1
570.4
533.3
533.4
584.2
2. Reporting Annually
A EMC ................
.4
1.3
1.3
1.4
1.4
1.4
TVA .................
)
)
)
)
)
)
1.1
3.5
3.5
3.4
3.4
.2
Labor ...............
)
)
)
)
)
)
.4
1.8
1.8
1.6
1
.5
Railroad. Retire. Bd..
9.6)
9.6)
9.6)
9.6)
9.6)
9.6)
2.0
8.2
8.2
8.3
8.3
8.3
Justice .............
)
)
)
)
)
)
.5
2.8
2.8
2.1
2.0
1.5
GSA .................
)
)
)
)
)
)
1.8
9.6
9.6
7.4
7.4
7.4
1.
7.4
7.4
7.5
7.5
7.5
NSF .................
)
)
)
)
)
)
1.1
3.6
3.6
4.6
4.5
5.0
Total payments ....
1,327.2
1,199.0
1,215.9
1,148.9
1,181.1
1,342.6
1.,202.0
4,941.1
5,042.7
4,680.3
4,648.4
4,345.5
* Less than $50,000. S-1
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 Approved For Release 2008/10/06: CIA-RDP80BO1676R002900140004-4
ANNEX I
INZT ATIONAL TRANSACTIONS OF THE FEDERAL GOVERNM IT
(In millions of dollars)
B. Receipts by Agencies:
1. Reporting Quarterly
July-Sept. FY 1964
Oct.-Dec. Jan.-Mar. 1963 Apr.-June 1963 1963 FY 1963 Current
1962 Last Prelim. Current estimate Last Current Last estimate FY 1965
final Target estimate actual Target estimate (Target) estimate estimate estimate (Target) estimate
State ................ 5.1 2.7 2.7 2.9 2.9 3.9 3.3 11.1 14.8 11.5 13.7 17.6
AID ................. 48.2 24.3 24.8 21.6 49.0 51.6 20.4 535.0 535.2 165.1 159.8 190.4
USIA ................. .1 .2 .1 .1 .1 .1 .1 .4 .4 .4 .4 .4
Peace Corps .......... - - - - - - - - - - - -
Export-Import Bank ... 291.8 140.1 88.9 119.4 160.2 162.9 206.6 716.0 749.2 832.4 863.0 942.0
Foreign Claims
Settlement Commission - - - - - - - - - - -
Defense .............. 527.5 219.3 238.1 214.1 234.9 247.0 145.1 1,240.0 1,275.0 985.0 1,000.0 1,000.0
AEC .................. 1.4 2.7 3.2 4.4 2.9 2.6 .9 8.2 9.0 8.3 8.3 13.7
NASA ................. - - - - - - - - - 2.2 2.2 1.3
Agriculture .......... 28.5 23.2 13.0 19.1 13.2 19.5 21.2 74.0 87.2 47.2 81.0 89.5
Panama Canal ......... 14.4 15.4 14.7 14.6 15.5 14.9 15.2 59.6 58.9 63.5 60.9 62.7
Interior ............. * * - - * - * * * * * *
HEFT .................. - - - .5 - - - - .5 - - -
VA ................... .1 .2 .2 .1 .2 .1 .1 .6 .6 .6 .5 .5
Commerce ............. 2.7 3.2 1.3 3.3 3.0 3.3 4.3 8.4 10.7 15.5 20.7 16.9
Post Office .......... 5.5 4.8 5.5 5.6 5.6 5.6 5.3 22.8 23.0 23.5 23.5 24.0
Treasury ............. 408.6 31.2 451.0 455.9 156.2 185.9 219.7 1,101.5 i.099.0 774.0 809.9 781.5
2. Reporting Annually
ABMC .................
TVA ..................
Labor . ..
Railroad Retire. Bd. .
Justice ..............
GSA ..................
CSC ..................
NSF ..................
) ) ) ) ) - - - - - -
.1 .3 .3 .2 .2 -
.9) .9) .9) .9) .9) .9) ?1 .3 .3 .3 .3 .3
.2 .9 .9 1.6 1.6 .9
) ) ) ) ) .2 2.2 2.2 1.8 1.8 2.6
Total, receipts by
agency ............ 1,335.0 468.0 844.4 862.6 644.6 698.3 642.8 3,781.3 3,867.1 2,933.2 3,047.9 3,144.3
Lela special financing transactions (by FY) 1/ ....................................................... -1,805.0 -980.0 -750.0 2/
Net, regular receipts ......................... .................................................. 2,062.1 2,067.9 2,394.3
Less than $50,000.
/Includes sales of medium-term non-marketable securities, advances on military exports, and nox-scheduled receipts on ldiins.
/Since receipts from special transactions are difficult to predict, this figure should be considered a rough estimate of
general magnitude.
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 Approved For Release 2008/10/06: CIA-RDP80BO1676R002900140004-4
AM M I
' ' A'T'ONAL TRANSACTIONS OF THE FEDERAL DOVE NT
(In millions of dollars)
Oct.-Dec.
1962
final
C. Net excess of Receipts
or Payments
1. Reporting Quarterly
State ................ -143.0
AID .................. -100.3
USIA ................. -9.9
Peace Corps .......... -3.3
Export-Import Bank ... 291.8
Foreign Claims
Settlement Commission -*
Defense .............. -206.3
AEC .................. -57.6
NASA ................. -1.1
Agriculture .......... 25.1
Panama, Canal ......... 6.4
Interior ............. -.8
HEW .................. -30.0
VA ................... -17.1
Commerce ............. .1
Post Office .......... 1.8
Treasury ............. 260.8
2. Reporting Annually
A 4C .................
TVA ..................
Labor ................
Railroad Retire. Bd. .
Justice ..............
GSA ..................
CSC ..................
NSF ..................
July-Sept.
Jan.-Mar. 1963 Apr.-June 1963 1963
Last Prelim. Current estimate
Target estimate actual Target estimate (Target)
FY 1964 '
FY 1963 Current
Last Current Last. estimate FY 1965
estimate estimate estimate Target estimate
-io8.6 -122.9 -45.8 -86.8 -138.3 -95.2 -466.0 -439.8 -337.5 -353.2 ' -312.2
-134.4 -128.1 -129.5 -110.1 -142.2 -145.9 -113.4 -133.4 -408.4 -350.7 -219.7
-10.5 -10.1 -10.2 -10.1 -9.5 -10.1 -39.3 -39.0 -44.3 -4o.5 -46.1
-3.4 -3.2 -2.9 -3.8 -3.4 -3.7 -11.7 -11.0 -23.8 -21.4 -21.4
140.1 88.9 119.4 160.2 162.9 206.6 716.0 749.2 832.4 859.5 938.6
-7.1 -*
-431.7 -406.1
-63.0 -70.3
-1.6 -1.6
19.8 9.3
6.2 5.5
-5.8 -2.4
-31.9 -30.8
-19.2 -19.6
-2.3 -1.5
1.0 .9
-70.0 329.3
-* -1.8
-449.1 -402.5
-60.7 -44.1
-1.6 -2.5
15.7 9.3
6.1 6.3
-1.0 -10.7
-30.0 -31.7
-17.5 -16.9
-.1 -1.0
1.0 1.2
328.6 17.0
-.1 -.1 -1.9 -.2 -48.3 -23.3 -20.1
-420.6 -550.3 -1,425.6 -1,458.0 -1,618.9 -1,662.4 -1,484.0
-52.5 -39.0 -235.5 -234.8 -128.6 -131.5 -79.1
-2.5 -3.1 -6.2 -6.2 -10.8 -10.4 -9.7
15.8 17.1 59.6 73.4 30.8 64.6 69.3
5.8 5.5 24.6 24.7 23.3 21.8 20.4
-1.1 -1.3 -19.9 -3.7 -22.2 -9.4 -5.5
-36.3 -30.1 -121.4 -125.3 -132.3 -129.0 -141.5
-17.2 -17.3 -70.5 -68.8 -68.6 -68.6 -67.9
-.5 1.2 -3.7 -2.1 -3.4 4.0 2.6
1.2 1.3 5.4 5.5 5.3 5.4 6.0
3.1 113.9 584.4 528.5 240.7 276.4 197.2
-8.7) -8.7) -8.7)
) )
-.4 -1.3 -1.3 -1.4 -1.4 -1.4
-1.1 -3.2 -3.2 -3.2 -3.2 -.2
-.4 -1.8 -3..8 -1.6 -1.1 .5
-2.0 -8.0 -8.0 -8.0 -8.0 -8.0
-.2 -1.9 -1.9 -.4 -.4 -.6
-1.6 -7.4 -7.4 -5.6 -5.6 -4.8
-1.9 -7.4 -7.4 -7.5 -7.5 -7.5
-1.1 -3.6 -3.6 -4.6 -4.5 -5.0
Total net excess by
agency ............ -7.7 -731.0 -371.4 -286.3 -536.7 -644.3 -559.2 -1,159.7 -1,175.6 -1,747.0 -1,600.5 -1,201.2
Less special financing transactions 1/
_ ............................................................. _1,805.0 -980.0 -750.0 2/
Net excess of payments from regular transactions ................................................. -2,980.6 -2,580.5 -1,951.2
j,ess than 50,000. S-3
1/Includes sales of medium-term non-marketable securities, advances on military exports, and non-scheduled receipts on loans.
2/Since receipts from special transactions are difficult to predict, this figure should be considered a rough estimate of
general magnitude.
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 Approved For Release 2008/10/06: CIA-RDP80BO1676R002900140004-4
CHANGES FROM ORIGINAL AGENCY GOLD BUDGET SUBMISSIONS
(In millions of dollars)
Targets for FY 1964
Agency Nev
estimate Change target
A. Payments by:
State ........................................ 424.5 -57.6 366.9
1 AID .......................................... 600.3 -89.8 510.5
USIA: ......................................... 43.6 -2.7 4o.9
Export-Import Bank - +3.5 3.5
Foreign Claims Settlement Commission ......... 43.5 -20.2 23.3
1/ Defense ...................................... 2,678.0 -15.6 2,662.4
NASA ......................................... 13.0 -.4 12.6
2/ Interior ..................................... 24.1 -14.7 9.5
HEW .......................................... 129.2 -.2 129.0
VA ........................................... 68.9 +.3 69.2
Treasury ..................................... 533.6 -.1 533.4
Labor ........................................ 1.6 -.5 1.1
Justice ...................................... 2.1 -.1 2.0
NSF .......................................... 4.6 -.1 4.5
A11 other agencies ........................... 279.5 - 279.5
Total payments ......................... 4,846.5 -198.1 4,648.4
B. Receipts by:
Export-Import Bank ........................... 8 .4
All other agencies ........................... 2,1~f4.9
Total receipts ......................... 3,017.3
+30.6 863.0
- 2,184.9
+30.6
3,047.9
Estimates for 1965
Agency New
estimate Change estimate
368.2 -38.3 329.8
554.1 -144.0 410.1
48.8 -2.3 46.5
+3.4 3.4
22.3 -2.1 20.1
2,661.0 -177.0 2,484.0
11.7 -.7 11.0
22.6 -17.2 5.5
144.5 -3.0 141.5
68.1 +.3 68.5
584.5 -.3 584.2
1.4 -.9 .5
1.5 -.1 1.5
5.0 5.0
233.9 - 233
4,727.6
-382.2
4,345.5
722.2
2,202.3
2,924.5
+219.8
+219.8
942.0
2,202.3
3,144.3
Net excess of payments (-) or receipts (+)-1,829.2 +228.7 -1,600.5 -1,803.2 +602.0 -1,201.2
_'/ranges for AIT and Defense -sere made primarily to reflect their goals as outlined in the President's July 18th balance
of payments message (which had not been taken into account in their original submissions).
2 ,/Of which 1111.7 million in 10,64 and $17.2 million in 1965 ware the result of reclassification of the Trust Territory of
the Pacific Islands as the United States for purposes of the Gold Budget.
S-4
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 Approved For Release 2008/10/06: CIA-RDP80BO1676R002900140004-4
ANNEX III
111TE1MATTONAL TRANSACTIONS OF THE PE)ERAL GOV N T - BY AREA
(In millions of dollars)
Description
FY
1963
FY
1964
FY
1965
estimate
estimate
estimate
Payments to:
Western Europe ....................................
2,074.5
2,008.9
1,895.3
Japan .............................................
429.6
411.2
351.4
Canada ............................................
393.8
303.7
259,. 5
Other countries ............ ....................
1,674.2
1,486.5
1,362.5
Other international organizations .................
453.1
420.0
458.8
Undistributed I/ ..................................
17.5
18.0
18.0
Total .........................................
5,042.7
4,648.4
4,345.5
Receipts from:
Western Europe ....................................
2,955.2
1,908.3
2,064.7
Less special financing transactions 2/...........
(1,805.0)
(980.0)
(750.0)
Western Europe excluding special financing
transactions ...................................
(1,150.2)
(928.3)
(1,314.7)
Japan .............................................
115.8
114.2
135.7
Cant da ? O . ? . . . O.O. O ? ? . a . . . O . . . O O ? a . . . ? . . . ? . . . . . . . O .
145.9
24.3
24.9
Other countries .......... ? ........................
623.2
962.9
884.0
Other international organizations .................
4.1
14.7
10.9
Undistributed l/ ..................................
23.0
23.5
24.0
Total .........................................
3,867.1
3,047.9
3,144.3
Net excess of receipts or p Mnts (-):
Western Europe ..oa ...............................
880.6
-100.6
169.4
Western Europe excluding special transactions ...
(-924.4)
(..1,080.6)
(-58o.6)
Japan
-313.7
-297.0
-215.7
Canada .... ........................_...............
-247.9
279.4
-234.5
Other countries ....... ..........................
-1,051.0
-523.6
-478.5
Other international organizations .................
-449.0
-405.3
-447.9
Undistributed i/ ..................................
5.5
5.4
6.0
Total .........................................
-1,175.6
-1,6oo.5
-1,201.2
Total net,less special transactions ...........
(-2,980,6)
(-2,580.5)
(-1,951.2)
l /Post Office Department does not distribute its estimates by area.
2/All of which are with Western Europe..
S-5
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