Evening star., 1961-06-30

available. Thus, the United
States is IN the anachronistic
position of sitting on a noun
tain of unneeded rupees while
having to spend nearly 81 biz
lion of hard cash tc buy marks.
Worldwide, the Treasury has
available for Government use
more than $1.1 billion worth
of foreign currencies. The Cow
ernment plans to spend $2.2
billion worth In fiscal 1862. but
win have to lay out dollars 70
buy almost 81 billion Of this
sum.
S737 Million Surplus
!, OF the $I.f billion in foreign
currencies available for United
States use, $737 million is off
cially classified by the Treas-
ury as excess-far more than
anticipated needs during the
next several years. These "ex-
cess-ctirre1ey" countries are
Burma, India, Israel, Pakistali,
Poland, United Arab Republic
and Yugoslavia, and they are
the crux of the problem.
Suggested spending programs
include educational and cultlls
raj exchanges. distribution ot
magazines and books abroad,
American sponsored schools,
scientific training. research,
health and sanitation, trade
fairs and agricultural market
development.
Before Federal agencies can
do much to expand the activi-
ties, some officials contend, the
attitude of budget-makerS and
Congress must change :
Enthusiasts urge an end to
the requirement that the for
eign currencies be appropriated
before they are spent. They
propose instead relatively free
use of the funds. subject to
objections by Senate and House
Appropriations Committees.
The Eisenhower administers
ton requested $72 million for
special foreign currency pro-
grams-primarily involving ex-
cess currencies-for fiscal 1851
and Congress cut the total
back 70 $40 million. Meanwhile,
$4O0 million was added to the
stock of foreign currencies re-
served for United States use.
Conversion Proposal
Appropriations requirements
and other restrictions diecotlrs
age innovations in use OF for
eign currencies. some officials
contend. The State Depart-
ment, for example, has devel-
oped techniques for what
amounts to limited conversion
Of soft excess currencies, but
administrative impediments are
slowing down progress.
Here's how the conversion
method would work:
Sweden is launching aid pro-
grams in Pakistan. The United
States has $S5 million Of
Pakistan rupees available for
American use and needs only
$12. million in fiscal 1861. At
the same time, the United
States is short Of Swedish
kroner to finance the Fulbright
program and other activities In
Sweden. Ns.2
The United States has pro-
posed informally to supply
Sweden with rupees for its aid
program in PAkistan, receiving
payment in kroners for use IA
Sweden. The Swedes reportedly
are interested.
Tourist Solution Doubted
It. has been suggested that
American tourists could use up
large amounts Of foreign cur
rencies. They could buy what
they needed from the Treasury,
thus converting the soft cur
lrencies into dollars.
But officials doubt that foye
eign countries would agree 70
such use of their currencies
since 1t would cut into the dol
| lar earnings Of the foreign
countries.
Potential Government use 0f
foreign currencies, even II re-
strictions are eased, will not
come close to solving the. prOh-
lem. Some officials, therefore.
are studying methods to stem
the flow of foreign currencies
into United States Golfers.
The United States could, for
example. reduce It's reserved
share OF proceeds from sales Of
farm surpluses. Or 1t could
lnhn,aan,, thn ,,nar.finfinYn that