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)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP66B00403R000200190011-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 16, 2016
• Document Release Date: January 4, 2005
• Sequence Number: 11
• Publication Date: January 1, 1964
• Content Type: OPEN

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
.
,
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 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.
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