Foreign Relations of the United States, 1964–1968, Volume IX, International Development and Economic Defense Policy; Commodities

11. Memorandum From the Administrator of the Agency for International Development (Bell) to President Johnson¹

Washington, July 7, 1964.

SUBJECT

• Use of Foreign Aid Funds

This reports on the results in committing funds available in fiscal year 1964.

We committed 99.6 per cent of the available funds for both military and economic aid. Commitments through June 30 are as follows:

	Funds Available	Commitments through June 30	Percent
Military Aid	1231.8	1230.8	99.9
Economic Aid	2175.6	2162.2	99.4
Contingency Fund	108.3	107.5	99.3

The results are the best of any year since the inception of the program. Excluding $6.8 million of loan receipts which could not be used, the unobligated balance carried forward is $15.2 million. This compares to $398.7 million last year, and is less than a fourth of the amount in the best previous year.

The attached table shows the unobligated funds by program category. The bulk of the unobligated economic aid funds consists of unused remnants from our overseas missions. We are tightening our procedures still further in an effort to reduce these residual balances in future years.

David E. Bell ²

MUTUAL DEFENSE AND DEVELOPMENT PROGRAMS UNOBLIGATED/UNRESERVED BALANCES^a

[June 30, 1964]

Fiscal Year-End Balances Compared—FY 1964^b and FY 1963 (in millions of dollars) as of June 30, 1964

	6/30/64 Preliminary			6/30/63 Actual
	Available	Not Available for Obligationc	Total	Available	Not Available for Obligationc	Total
Economic Assistance:
Development Loans	*	4.6	4.6	96.2	24.0	120.2
Alliance for Progress Loans	*	2.2	2.2	92.0		92.0
Technical Cooperation/Development Grants	6.0		6.0	47.3		47.3
Alliance TC/Grants	.1		.1	2.7		2.7
Inter-American Social & Economic Program	.2		.2	1.6		1.6
Supporting Assistance	4.0		4.0	6.0		6.0
International Organizations	—		—	.3		.3
Contingency Fund	.8		.8	127.1		127.1
Administrative Expenses-AID	1.3		1.3	2.0		2.0
Administrative Expenses-State	—		—	*		*
Surveys of Investment Opportunities	.5		.5	1.1		1.1
American Schools & Hospitals Abroad:
Regular Program	1.2		1.2	—		—
Foreign Currency Program	.1		.1	.1		.1
Total Economic	14.2	6.8	21.0	376.4	24.0	400.4
Military Assistance:	1.0		1.0	22.3		22.3
Total Military & Economic	15.2	6.8	22.0	398.7	24.0	422.7

1. Source: Washington National Records Center, RG 286, AID Administrator Files: FRC 68 A 2148, ADM 7–4 (White House) July–Nov., FY 1965. No classification marking.
2. Printed from a copy that indicates Bell signed the original.
3. Excludes non-budgetary accounts—investment guarantees, excess property revolving fund, and MAP credit sales account.
4. Preliminary data based on preclosing trial balance.
5. Represents funds not legally available for obligation during the fiscal year.
6. Represents funds not legally available for obligation during the fiscal year.
7. Less than $50 thousand.
8. Less than $50 thousand.
9. Less than $50 thousand.
10. Less than $50 thousand.