than the fact that dealers exist abroad. The little guy doesn't have the opportunity to get sales abroad that the big manufacturer does.

The CHAIRMAN. That is what we know and that is what we would like to correct. Won't you proceed to put these charts in? I prefer to get into what we are discussing when we get into the bill.

Mr. STAMBAUGH. I think the next chart, No. 10, will throw some light on the problem we have been discussing. This chart shows the distribution of disbursements for typical power and industrial development projects as one segment of our business. (See chart 10, p. 999.) You will see what it is intended to show in a graphic manner, where the goods came from in the credits to Brazil and Mexico, the various portions of the United States that supplied the machinery. the equipment, and the other articles that went into the credits in those two countries.

The next chart, No. 11, is a similar chart showing the source of exports that went into mining and agricultural projects in Afghanistan and Liberia. (See chart 11, p. 1000.)

Mr. CASS. I might mention that the items that are set out are the ones we can trace. A lot of raw materials that went into making the particular product we couldn't possibly trace. That is the reason for the shaded arrows.

Mr. STAMBAUGH. In other words, that shows only the finished product. If you could break that down into the raw materials that went into it, it would cover a much wider spread area.

The CHAIRMAN. That is clear.

Mr. STAMBAUGH. The next chart, No. 12, is a map of the United States showing the composite of this same information. This relates to the bank's total business, again. It shows how $4,135 million was spent throughout the United States. (See chart 12, p. 1001.) Senator FREAR. How much did Maryland get out of that? The CHAIRMAN. How much did Indiana get out of that? Mr. CASS. $28 million. That is finished products.

The CHAIRMAN. $28 million out of $4 billion. That isn't right. Senator BUSH. What did Connecticut get?

Mr. CASS. $33 million.

Senator PAYNE. What about Maine?

Mr. CASS. $3%1⁄2 million.

Senator BENNETT. What about Utah?

Mr. WALKER. $3 million. May I clear up one point on that? That doesn't represent the total disbursements because there is a very large sum that could not be allocated to individual States. Undoubtedly there was considerable money spent in those States for the projects we financed. For example, the allocated amount by States which we could definitely account for in dollars and cents amounted to around $2,300 million. The rest of the $4,135 million was unaccounted for down to the States.

So in view of the fact that we could not trace them directly, we lumped those into individual groups such as technical services to the various States, nontraceable items of expenditures, freight, insurance, shipping, and then various commodity and exchange credits. Those were very difficult for us to account for and support. The CHAIRMAN. That is a very interesting chart.

Mr. WALKER. The 5 New England States together is something over $100 million.

Senator BUSH. What are the big States in there? Take the threelargest and give us the amounts.

Mr. WALKER. Ohio is $294 million.

Senator BUSH. What is Illinois?

Mr. WALKER. Illinois is $293 million. New York is $364 million. Michigan is $122 million. Pennsylvania is $550 million. A lot of these would be purchasing agents. You couldn't always trace it back to the factory. So we had to use the offices where it cleared the country. In general, these things follow pretty much the industrial pattern in the United States.

Mr. STAMBAUGH. The next chart, No. 13, is designed to demonstrate that bank-financed projects will supply one-half of the iron-ore imports into the United States in the year 1955. (See chart 13, p. 1002.) Those dark lines are the shipping routes. You see the Bomi Hills mine in Liberia, the Itabira mines in Brazil, the Romeral in Chile, the Marcona in Peru and Steep Rock in Canada. Those are iron-ore projects that have been developed with Export-Import Bank financing. Both the Steep Rock Iron Mine and the Bomi Hills mine in Liberia have repaid fully the credit in advance of the due date, and they are now being financed entirely by private capital after having been established and proven up as a result of the bank's financing. Senator BUSH. What is the name of the Steep Rock Co.? Mr. STAMBAUGH. I don't remember the corporate name.

private enterprise.

Senator BUSH. They are the obligor on the loan?

Mr. STAMBAUGH. They have paid it off.

Senator BUSH. What did they do with that money?

It is a

Mr. STAMBAUGH. They bought machinery and equipment in the United States that was needed for the development of their mine. One large item was a dredge, as I recall.

Senator BUSH. How was that any different than lending money to an oil-development proposition in Turkey?

Mr. STAMBAUGH. The distinction that we draw with regard to the financing of oil development is the fact that private capital is available for that type of financing, plus the fact that it is a very high risk sort of thing and is more suitable for equity financing.

Senator BUSH. I was trying to see if there was any difference between the export loan and an import loan that I don't understand. This sounds to me just like the regular loan. You are lending to an institution organization in a foreign country to make improvements, and in this case, one of the advantages to us is that we get an import that we need, is that right?

Mr. STAMBAUGH. Correct.

Senator BUSH. Whereas in some of those other loans we don't get that advantage directly although we might get some indirectly. This is why you call it an import loan?

Mr. STAMBAUGH. We don't call it an import loan.

Senator BUSH. It says "United States iron ore imports."

Mr. STAMBAUGH. We are simply demonstrating that the projects will provide 50 percent of our iron-ore requirements in 1955.

Senator BUSH. That is one of the reasons for making a loan, to create a source of that stuff which we need, is that right?

Mr. STAMBAUGH. That is right. That is even more compelling in the case of more vital materials than iron ore.

Senator BUSH. A lot of your loans are made for development purposes within a country where you can see the money coming back, but they don't necessarily lead to the origin of materials which we import?

Mr. STAMBAUGH. That is right.

Senator BUSH. Our advantage there is the export of the materials which they need for the development in that area?

Mr. STAMBAUGH. And the improvement of them as a customer for more exports to their country. Of course, this type of loan is most attractive because it does have that double feature.

Senator BUSH. This type of loan represents a relatively small percentage, does it, of the total over a period of 20 years, or can you comment on that?

Mr. STAMBAUGH. I imagine it is quite large. We can get that information. Mr. Anderson, will you make a note of that, to give the committee the total amount that has been loaned for the purpose of assisting in the production of raw materials for import into the the United States, all types of loans?

Senator BUSH. That would be an interesting thing to have in the record.

The CHAIRMAN. We will get that.

(The information referred to follows:)

Development loans authorized by Export-Import Bank for purchase of United States equipment and services since Feb. 20, 1934, to May 31, 1954, producing imports as listed for United States consumption

Mr. STAMBAUGH. The next chart, No. 14, is one that shows on the lefthand side that during the past 10 years the bank has had $62 million working in Mexico, and the chart on the right is significant in that it shows that during the period from 1936 to 1952 our trade with Mexico has increased in the manner shown there; in other words, our imports have increased from $135 million to $292 million, and our exports to Mexico have increased from $171 million to $671 million. (See chart 14, p. 1003.)

Senator BUSH. You just said a little while ago they have free convertibility. How do they maintain it with that imbalance?

Mr. STAMBAUGH. The difference is mainly earnings from tourist trade in Mexico. This is in terms of commodities.

Senator BUSH. That is what brings about the balance?

Mr. STAMBAUGH. Yes. The next chart, No. 15, is a similar chart with regard to Brazil. (See chart 15, p. 1004.) The amount involved

is $77 million over the 10-year period. You will see that the increase in imports is from $247 million to $680 million. The increase in exports is $149 million to $615 million. I might say that we don't claim credit for all that increase in trade.

Senator BUSH. What is the convertibility situation in Brazil today? Mr. STAMBAUGH. That is rather complicated.

Senator BUSH. It looks like it ought to be good.

Mr. STAMBAUGH. They have a system which they refer to as the auction system. They have five categories, I believe, of imports for which they allocate dollars.

They divide their dollar supply up among these categories, the lower categories getting very few dollars, I would say. They take what they have left over and put it on auction, and anyone who wants to import something so badly that he is willing to outbid the rest of the importers at the auction gets his dollars at a terrific price.

Senator BUSH. It just looks, since we are importing from them more than we export, as though they ought to be in good shape.

The CHAIRMAN. Let me tell you another item that doesn't show up there for which they must use dollars for. They are required to have about $400 million for oil, which they get primarily from Venezuela, and Venezuela forces them to pay for it in dollars, and many other items like that that I could tell you about.

Mr. STAMBAUGH. They buy a good deal of wheat for dollars.

The CHAIRMAN. Venezuela sells all its oil for dollars. Brazil is a big buyer of Venezuelan oil. They import about $400 million oil a year and they pay in dollars for it.

Senator BUSH. I don't suppose they can export very much to Venezuela.

The CHAIRMAN. Not much. Another reason that they are in bad shape is that they are in debt so heavily. We had to loan them $300 million to help them pay for past purchases.

Mr. STAMBAUGH. In answer to your question of a moment ago, you said they should be in good shape with that sort of trade balance. They would be in good shape if they managed their foreign exchange properly. They wouldn't have any trouble at all.

About 4 years ago, maybe longer ago than that, they got all excited about not being able to get things from the United States and they overstocked with almost everything and they incurred obligations far beyond their annual means. That is what gave rise to some $450 million in commercial arrears, which we helped to take care of by that $300 million loan.

I think it is of significance that when we were negotiating with them to refund that $300 million loan just recently that they were perfectly able to repay it within the next 2 years by continuing the rather strict controls that they have had in effect

The CHAIRMAN. Brazil would be in beautiful condition and continue to be if she produced all her own oil. She would be a great country financially.

Senator BUSH. Has Brazil that in mind? Are they going in for oil development there?

The CHAIRMAN. That is a big question that we'd better not get into for diplomatic reasons. That is one of the sore spots.

Mr. STAMBAUGH. Here we have a chart, No. 16, that shows what benefit the engineering and construction fraternity in the United