disbursements or transfers under other agreements which give rise to specific obligations to repay, over a period of years, usually with interest. In some instances assistance has been given with the understanding that a decision as to repayment will be made at a later date; such assistance is included in grants. At such time as an agreement is reached for repayment over a period of years, a credit is established. Such credits cannot, as a rule, be deducted from specific grants recorded in previous periods; an adjustment for grants converted into credits is made at the time of agreement. All known returns to the U.S. Government stemming from grants and credits (reverse grants, returns of grants, and payments of principal) are taken into account in net grants and net credits, but no allowance is made for interest or commissions. Other assistance represents the transfer of U.S. farm products in exchange for foreign currencies, (plus, since enactment of Public Law 87-128, currency claims from principal and interest collected on credits extended under the farm products program), less the Government's disbursements of the currencies as grants, credits, or for purchases. The net acquisition of currencies represents net transfers of resources to foreign countries under the agricultural programs, in addition to those classified as grants or credits. Figures as published in Foreign Grants and Credits by the United States Government are not identical with figures shown for Government unilateral transfers and capital in the balance of payments, mainly because of differences in treatment of particular items by the two sets of accounts. Such items include: Contributions to the multilateral construction program of the North Atlantic Treaty Organization; Government investments in certain productive enterprises abroad; Government receipts on funded claims; and net changes in foreign currency holdings resulting from transactions other than those under the farm products program, such as by collection of principal and interest and by purchase for dollars.

The basic instrument for extending military aid to friendly nations has been the Mutual Defense Assistance Program authorized by the Congress in 1949. Prior to 1952, economic and technical aid was authorized by the Congress in the Foreign Assistance Act of 1948, the 1950 Act for International Development, and other legislation which set up programs for specific countries (e.g., Korea, Nationalist Government of China, etc.). In 1952, these economic, technical, and military aid programs were combined under the Mutual Security Act, which in turn was followed by the Foreign Assistance Act passed in 1961. Figures on activity under the Foreign Assistance Act as reported in Foreign Grants and Credits differ from similar data published by the Agency for International Development or its immediate predecessors, the International Cooperation Administration and the Development Loan Fund (now combined in the AID), due largely to differences in method of reporting, timing, and treatment of particular items.

Foreign trade.-Export data are compiled by the Bureau of the Census from Shippers' Export Declarations which exporters are required to file with customs officials for shipments leaving the United States. Export data include shipments made after World War II under the Department of the Army Civilian Supply Program only for 1948 and subsequent years. In addition, export data include United States exports under the Lend-Lease, United Nations Relief and Rehabilitation Administration, International Cooperation Administration, Mutual Defense Assistance, and other mutual security programs. Shipments to United States Armed Forces for their own use are not included in export statistics for any period.

Export values are based on the selling price (or on the cost, if not sold) of the commodity shipped and include inland freight, insurance, and other charges to place of export. Transportation and other costs beyond the United States port of exportation are excluded. The country of destination is defined as the country of ultimate destination or country where the merchandise is to be consumed, further processed, or manufactured. In the event the exporter does not have definite information as to the country of ultimate destination for a shipment, it is credited (for statistical purposes) to the country to which it is consigned.

Certain export commodity classifications were grouped for security reasons into special categories beginning with May 1949, with periodic amendments to include additional commodities or to remove commodities from the special category list as the result of the relaxation of security restrictions for individual commodities. With the adoption of new security regulations, effective July 1950, the publication of the country of destination and customs district detail for the special category commodities and groups was discontinued. Data for special category commodities are included, however, in all total export statistics.

Shipments individually valued at less than $100 are not classified by commodity, but are included in exports with "other transactions." From July 1953, through December 1959, a 10-percent sample was the basis for data on export shipments individually valued from $100 to $499 (about 4 to 6 percent of total exports) except that, for January through June 1956, the 10 percent applied to shipments valued up to $999. Beginning January 1960, the sample ratio was increased to 50 percent for all countries except Canada. Effective January 1963, the 10-percent sample for Canada was applied to shipments individually valued from $100 to $1,999. In most cases, the sampling error in individual export totals is probably less than 5 percent.

Import data are compiled by the Bureau of the Census from import entries (various) customs forms) which importers are required to file with customs officials for each shipment arriving. Import values are, in general, based on market or selling price excluding import duties and are f.o.b. the exporting country. The country of origin is defined as the country in which the merchandise was grown, mined, or manufactured. If the importer cannot obtain information as to the country of origin, the merchandise is credited (for statistical purposes) to the country of shipment.

Imports are classified either as general imports or imports for consumption. General imports represent total arrivals of imported goods (except for in-transit shipments), that is, merchandise entered for immediate consumption ("duty free" merchandise, merchandise on which duty is paid on arrival, and merchandise entered into bonded customs manufacturing warehouses for processing and subsequent export of the main product) plus merchandise entered into bonded customs storage warehouses and into bonded customs smelting and refining warehouses. Imports for consumption are the total of entries for immediate consumption plus merchandise withdrawn from bonded storage warehouses for consumption, withdrawn from bonded smelting and refining warehouses, and transferred from bonded storage warehouses to bonded manufacturing warehouses for manufacturing and export.

Beginning 1954, estimates of imports valued at $250 or less are based on a 5-percent sample; and beginning 1958, estimates of imports valued under $100 reported on formal consumption entries and imports reported on informal entries (limited to $250) are based on a 1-percent sample. Beginning July 1965, formal entry shipments valued at $250 and under are also estimated from a 1-percent sample. These estimated lowvalue shipments are included in commodity and country exports with "other transactions." The total value of the estimated low-value shipments generally amounts to less than 2 percent of the monthly import total.

A description of the procedures used for compiling the foreign trade statistics appears in Report FT 125, United States Imports of Merchandise for Consumption, and Report FT 410, United States Exports, Commodity by Country.

Data relating to United States airborne and waterborne foreign commerce are presented in section 22, Transportation-Air and Water.

Area coverage.—The geographic area covered by these statistics, except as noted, is the United States customs area, which includes Alaska, Hawaii, and Puerto Rico, and for 1935 through 1939, the Virgin Islands.

Historical statistics.-Tabular headnotes provide cross-references, where applicable, to Historical Statistics of the United States, Colonial Times to 1957. See preface.

2 Includes convertible currencies and International Monetary Fund position.

Source: Dept. of Commerce, Office of Business Economics; Survey of Current Business, June 1966 and March 1967.

No. 1209.

CONDENSED SUMMARY OF THE UNITED STATES BALANCE OF PAYMENTS: 1920 TO 1966

[In millions of dollars. Excludes military transfers under grants]

1 Measured by changes in U.S. monetary reserve assets and in U.S. liquid liabilities to all foreigners. See table 1215.

2 Measured by changes in U.S. monetary reserve assets, in U.S. liquid liabilities to foreign official agencies. and in certain U.S. nonliquid liabilities to foreign official agencies.

Source: Dept. of Commerce, Office of Business Economics; Balance of Payments-Statistical Supplement, 1963; and Survey of Current Business, June 1966 and March 1967.

-3,881

-3,402

-3,690

194

-429

-3, 911

2,168

-589

No. 1210.

INTERNATIONAL INVESTMENT POSITION: 1940 To 1965

[In millions of dollars. Estimates for end of year; subject to considerable error due to nature of basic data. Direct investments at book value; other types at market or stated values. See also Historical Statistics, Colonial Times to 1957, series U 193-206]

Represents zero.

NA Not available.

14,362

6

1,838

1,508

4,209

7,639

8,720

2,405

150

487

1,470 1,636

2,276

2,742

8, 799

2,329 8,356

154 1,403

183

168

1 Beginning 1961, excludes Cuba; 1960 total for U.S. direct investment was $956 million (book value). ? Includes $254 million loaned to Canada in connection with Columbia River power development. 3 Reflects payment of $259 million gold portion of increased U.S. subscription to International Monetary Fund in second quarter of 1965.

Includes nonmarketable bonds issued to the Government of Canada in connection with transactions under the Columbia River Treaty, amounting to $204 million in 1964 and $174 million in 1965.

Includes non-interest-bearing demand notes issued in payment of subscriptions to international and regional organizations (other than IMF), portfolio fund certificates sold abroad by Export-Import Bank, liabilities associated with Government grant and capital transactions (including restricted accounts), and advances for military exports and other Government sales. Effective 1965, includes liabilities of U.S. monetary authorities for gold deposited by and held for IMF.

Source: Dept. of Commerce, Office of Business Economics; Survey of Current Business, August 1962 and 1964 and September 1965 and 1966.

No. 1211.

INTERNATIONAL INVESTMENTS-INCOME RECEIPTS AND PAYMENTS, BY
AREAS: 1950 TO 1966

[In millions of dollars. Figures abstracted from the general pattern of balance of payments. "Direct" invest-
ments represent private enterprises in one country controlled by investors in another country or in the manage-
ment of which foreign investors have an important voice. "Other private" investments represent long-term
miscellaneous holdings such as government or corporate bonds, interests in trusts and estates, or bank loans]
1965
1966

Pay- Re- Pay- Re- Pay- Re- Pay- Re- Payments ceipts ments ceipts ments ceipts ments

1 Beginning 1960, direct investment receipts from shipping companies operating under the flags of the Bahamas, Honduras, and Panama are included with "Other countries."

2 Beginning 1955, includes Finland, Spain, and Yugoslavia.

Includes international institutions and Western European dependencies, not shown separately.

Source: Dept. of Commerce, Office of Business Economics; Survey of Current Business, June 1965 and June 1966, and unpublished data.

Asia.