1 No breakdown of the actual budget result in 1950 is available other than that shown. The figures shown are provisional estimates of actual revenues and expenditures.

Thai budgets customarily overestimate the expenditures and underestimate reserves; consequently, the actual results in 1951 will probably show a smaller deficit, as in 1950.

Budget figures on defense exclude cost-of-living allowance for troops, which is hidden in a large over-all cost-of-living item under civil government.

Covered by an increase in short-term debt almost completely held by the banking system. NOTES.-These statistics are summaries of the official data of the government, and differ from those published in the Far East Data Book because (a) government enterprise finances are included on a gross basis in the present data, and on a net basis in the Far East Data Book where the relevant statistics are available; and (b) the net profits of government monopolies (as distinct from nonmonopolistic government enterprises) are treated as excise taxes in the data book.

Source: Bank of Thailand Current Statistics March 1951, and other official data.

O. PRICE, MONEY, AND PRODUCTION DATA OF SOUTHEAST ASIAN COUNTRIES

SUMMARY

The following tables showing certain key economic indicators for which data are available afford an indication of the standards of living and real income in the various southeast Asian countries, and the extent to which inflation has occurred in the region. Certain generalizations based on the tables may be summarized as follows:

(1) The internal cost of living in the urban areas of the southeast Asian countries, as shown in table 1, has risen far above prewar. This rise ranges from about 400 percent in the case of Burma to 4,000 percent in the case of Indochina. Money wages and urban income generally have risen far less than prices, with a resultant decline in living standards. Except for certain seasonal price declines in Indonesia in the last few months associated with the 1951 rice harvest, no indication of a reversal in this inflationary trend is apparent.

(2) As shown in table 2, prices of the major export products of the southeast Asian countries declined somewhat in the second quarter of 1951 from the high mark set at the beginning of the first quarter. Sugar and rice prices, however, remained at approximately the first-quarter level.

(3) Production data set forth in table 3, in comparison with prewar figures, indicate wide variations among the southeast Asian countries. Indochina and Burma are still considerably short of prewar production levels, with Formosa's major export product (sugar) also far below prewar. Thailand, by contrast, has experienced a substantial increase in production over prewar for all major products except tin. In the Philippines, production of major commodities is at or above

prewar levels except in the case of abacá which is substantially below prewar. In Indonesia, the two major export products, rubber and tin, are above prewar; rubber production is more than twice as great as prewar. Except for rice, which is about at the prewar level, other production continues to lag.

Taken in conjunction with an estimated 10-20 percent increase in population over prewar, the production data for 1950 reflect the postwar deterioration which has occurred in the standard of living in most of southeast Asia.

(4) Table 4 shows that the quantity of money (currency plus demand deposits) in circulation has increased significantly in all southeast Asian countries.

Source: Far East Data Book, U. N. Monthly Bulletin of Statistics, August 1951 and IMF International Financial Statistics, August 1951.

TABLE 2.-Prices of selected commodities (in United States dollars)

Source: Far East Data Book, IMF International Financial Statistics, and Journal of Commerce.

TABLE 3.-Selected production data for southeast Asian countries (prewar,

1949, 1950)

1 Average annual production 1935-39, except soybeans (1939 production).
Based on first quarter reported actual.
Includes coconut oil dessicated coconuts.
Source: Official data.

TABLE 3.-Selected production data for southeast Asian countries (prewar, 1949, 1950)-Continued

18 Includes coconut oil, dessicated coconuts and domestic consumed coconuts in terms of copra. Sources: Far East Data Book and official statistics.

FEDERAL SUPPLY MANAGEMENT

(Overseas Surplus)

MONDAY, NOVEMBER 12, 1951

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE OF INTERGOVERNMENTAL RELATIONS

OF THE COMMITTEE ON EXPENDITURES

IN THE EXECUTIVE DEPARTMENTS,

Ankara, Turkey.

The subcommittee met Monday, November 12, 1951, at the American Embassy, Ankara, Turkey, Hon. Herbert C. Bonner, chairman of the subcommittee, presiding.

Members of Congress present: Herbert C. Bonner, Harold Donohue, Bill Lantaff, Cecil M. Harden, Charles B. Brownson, and George

Meader.

Staff representatives present: Christine Ray Davis, chief clerk; Thomas A. Kennedy, general counsel; Herbert Roback, staff member; Annabell Zue, minority clerk; Ray Ward, Bureau of the Budget, John Elliott, State Department escort officer; and Brig. Gen. Clarence C. Fenn, Department of the Army escort.

Military personnel present: Maj. Gen. William H. Arnold, Chief of the Joint Military Mission for Aid to Turkey; Maj. William C. Brannon, military production officer, JAMMAT; Rear Adm. William L. Rees, chief, naval group, Joint Military Mission for Aid to Turkey; Col. Delk Oden, special assistant to Chief, JAMMAT; Brig. Gen. Edward H. Alexander, chief, Air Force group, JAMMAT; Col. Alexander J. Stuart, Jr., Chief of Ordnance Section, Army group, JAMMAT; Brig. Gen. Robert M. Cannon, Chief, Army group, JAMMAT; and Hon. George Wadsworth, American Ambassador to Turkey.

Mr. BONNER. On behalf of the Expenditures Committee, I want to thank you for the many courtesies you have shown us since our arrival in Turkey. Last night, at the Ambassador's conference, you heard an explanation of the mission of this subcommittee, so that it will not be necessary to go into that again. This subcommittee is interested in what you are doing, and in the return value of the dollars that the American people are expending here. So, with that understanding, we would appreciate a statement from you and your staff as to your accomplishment here. After you and your staff have finished your statement, the membership of the subcommittee, as is their privilege, will interrogate you and your staff on any point that needs clarification. As chairman, however, I desire that the person asking NOTE.-Asterisks denote classified material deleted for security reasons.