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JGR/OPIC (Overseas Private Investment Corporation) (2 of 2)
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135838786
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JGR/OPIC (Overseas Private Investment Corporation) (2 of 2)
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Records of the Office of Counsel to the President (Reagan Administration)
John Roberts' Subject Files
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Ronald Reagan Presidential Library Digital Library Collections This is a PDF of a folder from our textual collections. Collection: Roberts, John G.: Files Folder Title: JGR/OPIC (Overseas Private Investment Corporation) (2 of 2) Box: 35 To see more digitized collections visit: https://reaganlibrary.gov/archives/digital-library To see all Ronald Reagan Presidential Library inventories visit: https://reaganlibrary.gov/document-collection. Contact a reference archivist at: [email protected] Citation Guidelines: https://reaganlibrary.gov/citing National Archives Catalogue: https://catalog.archives.gov/ OPIC T Craig A. Nalen President We are pleased to send you this Annual Report which. in addition to providing information on OPIC's record results in 1984. also celebrates the Corporation's 15th Anniversary. Overseas Private Investment Corporation Washington D.C. 20527 (202) 653-2920 (No Response Necessary) John - Thanks For your holp with the LETTER. OVERSEAS PRIVATE INVESTMENT CORPORATION ANNUAL REPORT 1984 THE WHITE HOUSE WASHINGTON December 10. 1984 Dear Craig: It is with considerable pleasure that I congratulate the Overseas Private Investment Corporation on the occasion of its 15th Anniversary. I have always believed that the U.S. business community must participate in the development process of Third World countries through investment in these emerging nations. This participation not only helps transfer technology and create new jobs in the developing world, but at the same time it strengthens our own economy through increased exports and new jobs. At the start of my Administration, I stated that government should be run on a businesslike basis. The fact that OPIC's steadily increasing level of earnings allowed your agency to return to the Treasury its original Congressional appropriation of $106 million speaks for itself. Congratulations to OPIC on its success in showing the private sector the benefits of full participation in the development process in the Third World. Sincerely, Ronald Reagan The Honorable Craig A. Nalen President Overseas Private Investment Corporation 1129 20th Street, N.W. Washington, D.C. 20527 OVERSEAS PRIVATE INVESTMENT CORPORATION Washington, D. C. 20527 CRAIG A. NALEN President and Chief Executive Officer December 11, 1984 The President The White House Washington, D.C. 20500 Dear Mr. President: Thank you for your letter on the occasion of our fifteenth anniversary. We appreciate your recognition of the accomplishments of the Overseas Private Investment Corporation. We too are pleased with OPIC's increase in business volume during the past four years, not only in revenues but also in terms of projects handled; new jobs created overseas and here in the United States; programs aimed specifically at small business; and a bottom-line impact enabling us to increase our reserves and "burn the mortgage" by returning our original start-up appropriation of $106 million to the U.S. Treasury. Our accomplishments to date reflect another point worth underscoring: the quality of our people. The fact that an organization of OPIC's relatively small size can make a reasonably important impact on the international marketplace speaks well of the professionalism and enthusiasm of our people. While there has been no appreciable increase in the size of our staff over the past four-year period, our level of business has virtually tripled during that time. We value the support you have given this Corporation. I can assure you that OPIC's momentum will continue for many years to come. Respectfully, S a Nalen 1129 20TH STREET, N.W. WASHINGTON, D.C. 20527 TELEX-440227 OPIC UI. (202) 653-2900 A MESSAGE Insurance volume of $4.3 U.S. job creation equal to billion, a historic high for OPIC, 16,084 man-years of employ- FROM as well as an increase over the ment over the first five years of THE PRESIDENT $3.9-million record level of operations by such projects. 1983. Creation of 17,450 host- OF OPIC Direct loan, loan guaranty country jobs by the fifth year and local-currency loan commit- of project operations. ments of $103.5 million for a A net positive U.S. trade record-setting 24 investment effect of $1.6 billion over the projects. same five-year period. iscal 1984 marked the Net income of $97.2 mil- As you will note, this year's F fourth consecutive year lion, the highest level in OPIC's Annual Report is presented in of steady growth for history. two parts. The first section, the Overseas Private Capital and reserves of entitled "OPIC in the '80s," Investment Corporation, with $883 million, a 12 percent in- attempts to summarize the new highs being set in insur- crease over 1983's previous high increased level of business ac- ance volume, finance projects of $786 million. tivity experienced by the Cor- and net income. Assistance to a total of poration since the end of 1980. Some of the Corporation's 140 investment projects in 40 Special emphasis has been more noteworthy accomplish- developing countries around the placed on the impact many of ments in fiscal 1984 included: world. our new programs and strate- gies have had on small busi- nesses, the all-important Carib- bean region and cooperative efforts between the public and private sector. The second portion of the report, "Fiscal 1984 in Review," addresses the Corporation's 1984 accomplishments in a for- mat that is generally consistent with previous annual reports. During the past several years, OPIC has attempted to establish a new and more aggressive strategy for facilitating private investment in the developing countries of the world. We are encouraged by the positive ini- tial results of these efforts, and feel confident that OPIC is soundly set on a course that OCEAN will enable it to continue to perform well for many years to come. A Sincerely, THE POL WOR a Nalen Craig A. Nalen 2 OPIC he past four years have witnessed IN THE T significant changes in the interna- tional marketplace, the U.S. business '80s community, and in OPIC's role of en- couraging private investment abroad. Many Third World nations, once skeptical about the positive effects of foreign invest- ment, are now viewing private-sector growth as the key to building stronger economies, creating jobs and generating capital for much- needed development programs. At the same time, an increasing number of small and medium-sized U.S. companies are recognizing the potential of Third World investment for their own growth and competitive positions. Realizing that these changing perceptions would create new opportunities for encouraging overseas private investment, OPIC restructured many of its programs, introduced new services, and developed long-range marketing strategies to better support U.S. businesses seeking Third World investment opportunities. The results of these efforts, implemented Communications station. between 1981 and 1984, are highlighted in the Indonesia following section. Maintenance and repair. Saudi Arabia OPIC IN THE '80s FISCAL 1084 IN REVIEW 3 RESULTS: Total Insurance Volume ver the past four (In $ Millions) O years, OPIC has placed emphasis 4000 on improving its overall operating performance as a means of broadening 3800 the U.S. investment base overseas, and improving the Corporation's finan- 3600 cial strength. The agency's success in meeting these challenges 3400 has been demonstrated by record growth in in- 3200 surance volume, finance commitments and net in- come for the 1981-1984 3000 period. 2800 2600 2400 2200 2000 1800 1600 1400 1200 1000 Insurance: OPIC has re- 800 corded consecutive new highs in insurance volume since fiscal 1981. topped 600 by a $4.3 billion issuance in 1984. During the 1981- 84 period, the Corporation 400 issued a total of $12.8 bil- lion worth of coverage for 200 438 investment projects. This four-year total of $12.8 billion compares 0 with an $8.6 billion total for the first 10 years of 71 72 73 74 75 76 77 78 79 80 81 82 83 84 OPIC's operations. Years of Operation 4 Finance: During the 1981-84 period, OPIC made direct OPIC Finance Commitments loan, investment guaranty and local-currency loan com- (In $ Millions) mitments of more than $432 million in support of 83 pro- jects around the world. In fiscal 1984. a record 24 projects received OPIC financing. 100 In spite of recent statutory ceilings that limited direct lending to $10 million per year and loan guaranties to 80 $100 million per year, the average number of projects fi- nanced from 1981 through 1984 reached 21 per year. By 60 comparison, an average of nine projects were financed an- nually during OPIC's first decade. The average annual dol- lar amount of the agency's finance commitments, exclud- 40 ing local currency loans, also increased to $104.7 million during the 1981-84 period. as compared with $37.7 mil- 20 lion during 1971-80. Because the Corporation demonstrated in recent years 0 that a strong demand for OPIC's finance program could be developed, Congress approved for fiscal 1985 a 50 percent 1971-1980 1981-1984 increase in OPIC's direct loan and loan guaranty limits. Annual Average Feasibility Studies: In 1981. OPIC expanded and en- Feasibility Studies Committed hanced its Feasibility Study program to assist smaller businesses wishing to explore investment opportunities in the developing nations. In fiscal 1984, a record 35 feasibil- 25 ity study fundings were committed. Because of continued program improvements and in- creased funding, the average number of feasibility studies 20 approved each year increased to 26 during the 1981-84 period, as compared with four per year during 1971-80. 15 10 5 0 1971-1980 1981-1984 Annual Average Profits: OPIC has consistently reported strong net in- Net Income come results in recent years, topped by a record profit of (In $ Millions) $97.2 million in fiscal 1984. From 1981 through 1984, OPIC's annual profit has averaged $85 million, nearly double the $44 million an- 80 nual average for the 1971-80 period. 60 40 20 0 1971-1980 1981-1984 Annual Average 5 Poultry processing. Dominican Republic Developmental Effects: 1981-1984 Developmental Effects: Faced with increased debt burdens and stagnant levels of concessional aid, many Third World countries are turning to private foreign in- vestment as a means of creating jobs, generating capital Net Foreign Exchange Savings: $2.26 Billion* and providing skills training. Between 1981 and 1984, OPIC supported 508 invest- ment projects in more than 60 developing nations. As shown in the accompanying chart, these projects will gen- Local Employment Generated: 82,873 Jobs erate significant net foreign exchange savings, and local employment for their host countries by the fifth year of *Cumulative total of average annual effects operation. U.S. Benefits: American business investment overseas U.S. Benefits: 1981-1984 also generates economic benefits at home by creating new and continuing demand for U.S. exports. The developing countries are among the world's fast- Total Investment Assisted: $13.1 Billion est-growing markets, and account for nearly 40 percent of all U.S. exports. Given the growing U.S. trade deficit and increasing export potential of the developing world, Ameri- U.S. Exports: $9.0 Billion* can business expansion into these markets is highly desir- able. As shown by the accompanying chart, OPIC-sup- ported investments from 1981 through 1984 made signifi- Man-Years of U.S. Employment: 108,951* cant contributions to the U.S. economy, through increased exports and employment generation. *Estimates of impact during first five years 6 SMALL y their very nature, small-business BUSINESS B firms are likely to undertake relatively modest investment enterprises that are particularly well suited to the smaller-scale economies of most developing countries. To encourage small U.S. businesses to invest in Third World nations, OPIC began a concerted effort in 1981 to inform such com- panies of the market potential for private investment abroad, and to acquaint these firms with the small business-oriented programs and services of OPIC. OPIC's success in this endeavor has intro- duced hundreds of small companies to the services of the Corporation, and helped the Corporation exceed its goals for small-business projects. From 1981 to 1984, 181 projects assisted by OPIC involved small businesses or coopera- tives, accounting for more than $1.2 billion in insurance and finance commitments. High- lights of OPIC activities directed toward the Timber harvesting. U.S. small business community during those Kenya years are discussed on the following pages. Light manufacturing, Barbados FICCI 1084 Offshore oil, Ghana 7 SMALL BUSINESS NEW APPROACHES INVERSEAS n 1981, OPIC discov- PRIVATE OPIC PROGRAMS PROGRAMS Distribution Network: To I FOR FOR THE ered that many U.S. ND EXPORTERS CONTRACTORS ENERGY INVESTMENT establish a direct pipeline FINANCE small business firms INDUSTRY HANDBOOK to the small business com- had little knowledge of LEASING munity. OPIC undertook a the productive potential cooperative effort with an of private investment international accounting abroad, or of OPIC's com- OPIO firm to provide informa- prehensive programs to tion about OPIC services. encourage such invest- You don't have to be The accounting firm. with ment. As a means of OVERSEAS bridging this information III a big company a branch network of more to enjoy the rewards than 300 offices in the gap, OPIC initiated an of investing United States and abroad. aggressive, multi-year in developing nations. thus provided OPIC with marketing program to an informal yet far-reach- increase the number of USA Today ing information network Team set small businesses entering to aid small Just a smart one. and "sales force." the international market- business If you're considering investing in the world you don't the Fortune The 1000 In fact. getting started may be just a phone Our and the you the programs of the Overseas Private Corporat place. business political risk insurance and ness gain the rewards of investing OPIC, Deloitte Deloitte Haskins & Seils. a world Miami Business Journal use are about Plan Program information about these programs in CPA firm's S On Investment We and guide on Third World investing provide consu abroad And in putting business around the wo - and Deloitte & Sells can investment For more to Mary Ann Crawford at (212) 669-500 take of for said : handle the rinks the rewards of in OPIC Utilizing Major Ad Campaign That's THE OPIC To Encourage Investment Abroad of OPPORTUNITY. - 1 the OPK ureverable record year foreign small IN il Large to 5 - your than the the inder - Journal Commerce - fore SOME PEOPLE ONLY SEE AN ISLAND PARADISE. - one WORLD'S FINEST CHOCOLATE SAW AN ISLAND OF OPPORTUNITY. Finest Chocolate Inc. OPIC's political to Advertising: In conjunc- tion with OPIC's news TALE TO OFIC. TALK TO OPIC media efforts, a two-phase advertising campaign was launched in 1982 to de- scribe OPIC and its pro- grams-first in selected business publications with a broad readership, and later in trade publications oriented toward small OVERSEAS CONTRACT businesses in target indus- OPPORTUNITIES tries. MAY ALSO MEAN RISKS THAT ARE FOREIGN TO YOU. WE credit 8 CAN the HELP TRADE THE THIRD WORLD CHALLENGE CAN THE U.S. HELP EMERGING NATIONS WITHOUT INJURING ITSELF LEONE LTD delegates and to the # National Journal New toward TRADE REPORT News-Media Coverage: To In This Era of Federal Retrenchment, build greater awareness of INDUSTRY Here's One Agency with Some Big Plans # overseas investment op- Journal of Commerce The Overseas Private Investment Corp., which promot OPIC Expects to Expand Ties portunities for U.S. small businesses. OPIC has developing now seems to have frien TIME With Developing Countries RICHARD LAWRENCE . worked to generate articles OPIC, Not OPEC - In fiscal 1980, OPIC issued billion of Corp. the Insurance against revolution political risk insurance, risk about these opportunities 3 one USA Today and the agency's programs T he inviting ad shows coral reefs. Protecting COVER STORY blue water and the green-carpeted Caribbean island of St. Lucia. But the USA's investments in the general news media, - I advertiser is not an airline seeking to JTM book Firms buying the entice vacation travelers. It is an ob- to insurance the business media, and spe- and scure federal agency, the Overseas Pri- Its on vate Investment Corp., drumming up business for the political-risk insurance against war cialized trade publications it sells to U.S. firms that operate in the Third World. OPIC is a bright star in Overseas is serving the small-business Washington at a time when many de- I total is partments are in eclipse. Says OPIC risks community. President Craig Nale exposure the Administration succe The New York Times* Nalen, 52, had eleven-year-old age BUSINESS CONDITIONS Baltimore Daily Record* asked to head it in 19 dent of STP Corp., wi A Big Year for OPIC Small Firms Foster live products, Nalen are see what people the found that it was large . that Good Will For U.S. and A launched feverish to tell audiences the be American companie - the ments in developing - net - year = *Reprinted with permission of United Press International, Inc ""Copyright © by The New York Times Company Reprinted by permission. Moderator Telemissions: Saving time Walter Cronkite NEWSWEEK/APRIL 26. 1982 and money while explor- and Frank W. A Sophisticated Sell ing international business Considine, Via Satellite Hookup a sophisticated advertising gim- opportunities is vitally im- president and dose of politics In New York, San Francisco and chief executive American cities last week, hun- portant to small business dreds of U.S. corporate executives massed before giant TV screens plugged into state- officer of Quincy Patriot-Ledger firms with limited man- Halfway around the world in Caro, Egyp- tian Cabinet and did National Can likewise. Then. satellite hookup Selling U.S. firms on Egypt agement resources. Recog- brought the participants together for wo- Corporation hour moderated in New York by American TV Walter nizing this, OPIC created newsman Cronkite as a place for investment and interspersed with taped messages from Ronald Reagan and Egyptian President the concept of a "Telemis- of sion." a two-way video Through magic of satellites, U.S. teleconference allowing investors, Egypt to talk business five 2 U.S. business executives Wayne Beleasert and their foreign counter- the a ask XPX nows two weeks in parts to exchange ideas on Leave food and intereduce and investment opportunities dealer (rade the On without ever leaving and those in home. In 1982, OPIC pro- via for to % duced an Egyptian telemis- the Oakland Tribune contr rice sion; a Caribbean telemis- be FISCAL 1084 IN sion was conducted in risks fiscal 1983. hours 9 SMALL BUSINESS NEW STRATEGY: IF YOU HAVE QUESTIONS TARGETING Caribbean Investment ABOUT DOING BUSINESS A REGION Promotion: In 1982, OPIC IN THE CARIBBEAN, assembled and promoted $25 WILL GET YOU THE ANSWERS. ith the Reagan comprehensive investment W Administration's guide kits on 15 Caribbean focus on the nations. These specialized special needs of the Car- kits were widely promoted ibbean Basin, and the to the U.S. business com- particular investment munity through aggressive advantages these nations marketing and advertising offer small business activities. for firms, the Caribbean re- gion was targeted for spe- files cial emphasis by OPIC be- tween 1981 and 1984. 0 The Corporation's Car- ibbean strategy encom- passed a three-pronged to program. Initially, the focus was on providing basic information about the region to a broad au- Investing in dience of U.S. businesses. This effort was followed St. Lucia by exposing hundreds of selected executives to specific investment op- portunities in the Carib- Times of the Americas bean. Finally, OPIC Caribbean Investment served as a matchmaker gets national attention by introducing small via satellite hook-up and groups of U.S. companies to Caribbean business counterparts wishing to The Miami News undertake investment - The projects. In each case, the from and where de And while World availability of OPIC's in- I Miami were via clare the Omaha feed surance, finance and pre- - for nated that Chare are now lime that the form investment assistance but 5 - served to reinforce the I suced labor much say I I effectiveness of the Carib- - I Kangas, $ Luis b I are and public ! bean effort. First Caribbean 'telemission' focuses on island investment Caribbean Business EXPORT/IMPORT Caribbean Telemission: In Telemission links eight by fiscal 1983, OPIC spon- cities in investment talk York, sored a video teleconfer- Live satellite transmission is first that Washington Report to explore opportunities in Caribbean now. ence linking nearly 1.000 varket OPIC Helping U.S. business executives in soared Firms Invest but eight U.S. cities with Car- In The Miami Herald* Caribbean experts make pitch ibbean executives assem- via sotel the to U.S. businessmen via satellite bled in Miami. The the sin New telemission program was le into coefer vice heart the structured to foster a for passa one. America cities direct exchange of infor- into -and one ness Plas Lold viewers But ac- mation and ideas on in- 1 nd i and .8 transpor- with vestment opportunities in with was the the region. with permission of the 10 Cartbbean Investment Missions: During the past Jamaica four years. OPIC has spon- sored eight investment DAILY NEWS 40c missions to ten nations in the Caribbean Basin. In all. 19 NEW PROJECTS more than 100 U.S. compa- Business America IN THE PIPELINE OPIC MISSION IDENTIFIES 19 NEW nies-some 60 percent of INVESTMENT PROJECTS which were small business carried out the TAKE confects Minister breeding I firms-identified approxi- value has Ileuse farm produce I for nain and I mately 150 investment op- portunities to pursue. As a partial result of these activities, OPIC-sup- Advocate-News JND ported investment in the . Caribbean Basin nations 8. Official: Mission means to do business has expanded dramatically in the past four years. The The Daily Gleaner OPIC looks at Corporation's activities in 50 CENTS this region are summarized OPIC mission identifies joint ventures in the accompanying chart. 19 investment projects I NINETEEN other I received 1 instrum Advocate-News Official: Mission means to do business OPIC looks at joint ventures O.P.I.C. BRINGS IN - 15 NEW PROJECTS I leed joint THE JAMAICA DAILY local : The Daily Gleaner : : - - Journal of Commerce OPIC Plans Missions NEWS US team comes to assess investment opportunities ! my 4 I To Jamaica and Haiti any I 40c platned atp I with Barbada OPIC In The Caribbean* FY 1981-1984 WHITE INVEST HOUSE TO GRENADA TO Insurance: Coverage Written $831.7 million Number of Projects 96 1 Number of Countries 14 Finance: Funds Committed $74.3 million JAMAICAN Number of Projects 44 INVESTMENT MISSION Number of Countries 11 November 1-7, 1981 Feasibility Studies: Number Approved 62 *Official CBI-designated countries FISCAL 1084 IN REVIEW 11 SMALL BUSINESS NEW SERVICES: OPPORT UNITY BANK ne of the most dif- O ficult problems facing U.S. small businesses considering overseas operations is gathering accurate infor- Opportunity Bank: In mation about Third 1983, a data bank was es- World countries and their tablished to match specific specific investment op- overseas investment op- portunities. To assist portunities with potential American companies in U.S. joint-venture partners. this effort, OPIC recently To date. more than 4,000 introduced two new serv- U.S. companies and 1,300 ices and improved several foreign projects have been of its existing programs. registered in the Opportu- nity Bank. Of the U.S. company registrations, ap- proximately 80 percent have been entered by small businesses. New Programs: To offer broader support to small businesses, OPIC intro- duced a Small Contractors' Guaranty Program in 1982. and later refined its leas- OPIC PROGRAMS FOR ing program to meet the CONTRACTORS specific needs of small AND EXPORTERS business firms. In addi- Investor Information tion, various administra- Service: This clearing- tive procedures were house service. initiated in QRSTUVWXYZ streamlined to simplify 1984. provides U.S. compa- insurance and finance nies with easy access to applications. basic information com- ABC XYZ ABC XYZ monly sought when con- ABC ANNOTATED XYZ ABC INVESTOR'S XYZ sidering overseas invest- XYZ RMATION ment. The information. XYZ FILL NTHE BLANKS, AND UIDE XYZ provided through some XYZ WE'LL FILL YOU IN ON AWORLD XYZ 100 country-specific kits. VWXYZ includes literature on in- OPIC PROGRAMS FOR OF INFORE LATION. VWXYZ WXYZ vestment laws. incentives WXYZ INTERNATIONAL NXYZ and other business-related LEASING WXYZ WXYZ data. To date. the vast ma- WXYZ WXYZ jority of requests have NXYZ stemmed from small busi- NXYZ XYZ ness firms. OVERSEAS PRIVATE INVESTMENT CORPORATION INVESTOR INFORMATION SERVICE to OPIC 12 COOPERATIVE hroughout the 1980s, OPIC has EFFORTS T sought new ways to familiarize a greater number of American busi- nesses with the vast investment po- tential of the Third World. Yet the difficulties of meeting such a challenge are exceptional, given the limited size of OPIC and the ex- tremely large number of U.S. firms with the capability of investing overseas. Operation Opportunity To overcome this hurdle, OPIC decided in telephone bank 1981 to enhance its investment-encouragement activities by undertaking joint efforts with other private and public-sector organizations whenever possible. By combining and mobilizing its own re- sources with those of the American business community, other federal agencies and various global organizations, OPIC has successfully increased the impact of its investment encour- agement endeavors. This emphasis on public-private sector teamwork was best exemplified in November of 1983, when the Corporation joined together eight government agencies and 11 private sector organizations to mount "OPERATION OPPORTUNITY," a unique, nationwide, inter- national business forum. Operation Opportunity on stage FISCAL 1084 IN REVIEW 13 COOPERATIVE EFFORTS "OPERATION OPPORTUNITY" C urrently, the United States Government offers more than 150 programs to support U.S. export- ers, service companies and investors seeking to enter overseas markets. The bulk of these programs are administered by eight federal agencies, including OPIC. Until recently, however, U.S. business executives seeking detailed information about these services were often forced to thread a frustrating and time-consuming course through the maze of Washington's bureaucracy to find needed answers. Consequently, the scores of federal programs in support of international business OPIC program unites remained unknown to many U.S. companies. eight Washington agencies In 1983, OPIC moved to inform the American busi- By ROBERT RIVAS Opportunity To CARBBEAN ness community of these programs by organizing and for to the for Int producing "OPERATION OPPORTUNITY"-a nationwide sounded like the Trade videoconference and companion guidebook to the inter- tribes into for The the first for Oppc national business programs and services of the federal Nove the in Each on government. unto confei location This ambitious cooperative effort, involving the Hilton be The P.s.s.t! Some top progre eight agencies and 11 private-sector organizations, was government officials years now, are ready to spill like structured as a step-by-step "road map" to cutting pulling work Men some trade secrets on very specific over lunch. through red tape and obtaining the needed information. number two descriptions The Secrets: The Govern more and bureau ment has Case histories, names, telephone numbers and a wealth have phone one the Washi Caribbean Business of oppor the of related information were provided through the ALL secrets out the OPERATION of key OPPORTUNITY - - guidebook, entitled "Washington's Best Kept Secrets," OPIC duct - helph public k unique will help for and reiterated during the two-hour videoconference. 1 On November 16, 1983, more than 5,000 business executives in 44 U.S. cities attended the OPERATION OPPORTUNITY program. In addition, the program was FORTUNE beamed to more than 40 colleges and universities across the country. The idea of initiating such an unusual "one-stop shopping" guide to Washington's international hand business programs met with enthusiastic response from both the federal agencies and the private sector. Ap- proximately 10,000 copies of the guidebook, which is updated semi-annually, have been sold to date. WINNING TIME OVERSEAS Moderator Edwin Newman OPERATION OPPORTUNIT 14 Ft. Lauderdale Sun-Sentinel* Unwinding rolls of red tape U.S. agencies offer Delphos # studies the average The Birmingham News guide for exporters the of di the U.S. bureaucracy to unveil secrets out N do into the of services it offers exporters or makes of is was = analyst how. the the national hat's and the the all only in and says in tion of fact the WASHINGTONS that can them BEST KEPT and you its Inc. and and about - addresses, costs and SECRETS of at Boston reason by risk A U.S. Government Guide BUREAUCRATS PROMISE TO at of such of to International Business San GUIDE THROUGH RED TAPE Business interest Insider's guide to 'best kept into si secrets' about export business project Manie peanut for the to some vate day Corp / Lightly are and book. the stare conter 1 help CTUBS study ernment Cities asset the ments several Be off the with al the remain could title. tunitles prepara allus Lhe check are intere for only use He St. Paul Pioneer Press & Dispatch know they has that given mated The when have Guide reveals secrets of overseas business of out and FOR there to & the govern tape Books The an venture would have know plat in I foggiest how I I - for Delphos could and the fina and vast costs into 800 of up fund and store about 17 the are business Tulsa Tribune Best Kept such book Agency helps firms tap foreign markets not the to By in a Small business con- the for es tab. need Topics technology de- travel. inability our assets to and are project im. 10 Insure against of of rica = Business by the of resourc America's "Secret" Aid for Exports this rise expl for U.S. agencies want to tell all about their services. pects emer send ment In to has not to be il sec and no are ana Its eral that to came to D&B Reports abroad wan Non he Going global be are marked at to vid. and At it's x by top the easier oconomies - The will the Ad than anty Units are 8 as and the you 2 why Washington Report ye think , True costacles not OPERATION International 2 OPPORTUNITY 2 An Innovative Program very receive 8 Agencies To Untangle Web of Trade Services name By Agency To Help American Firms with Sen Finding on the the Win in Overseas Markets federal was for be like for 10 need and throe = of R. the business firm begin a her 3 the November 16. 1963 that - include the will that are by to contract and her must The U.S. government to were offers more business of incentive programs than greater includes do the Japanese and ink # European governments. that more age St. in to our We win FISCAL 1984 IN REVIEW we - Reprinted with permission of United Press International. Inc 15 OPIC MILESTONES E xceptional net in- come in 1982 and 1983 enabled OPIC to return to the U.S. Treasury its original start- up appropriations of $106 million. In 1982, OPIC President Craig A. Nalen presented President Rea- gan with a check for $50 million in a special White House ceremony. In 1983, a $56-million check was turned over to Treasury Secretary Donald T. Regan. 1982: Return of $50 million Despite this significant transfer of funds, OPIC's pool of funds available for claims payments, in- Overseas cluding its $100-million OPIC Private investment Corporation borrowing authority, SEPTEMBER 20 ID 82 reached record levels of DAY TO THE U.S. TREASURY $809 million and $836 TORDEROF I $ 50,000,000.00 million in 1982 and 1983, FIFTY MILLION AND 00/100 DOLLARS respectively. In fiscal 1984, funds available for Oversees OPIC Private Investment claims payments reached Corporation $933.2 million. DECEMBER 19 19 83 Dar TO THE U.S. TREASURY TORDEROF is 56,000,000.00 FIFTY SIX MILLION AND 00/100 DOLLARS a Nalen PRESIDENT 1983: Return of $56 million Net Income FY 1981-1984 (In $ Millions) 90 80 70 60 50 40 30 20 10 0 81 82 83 84 16 PIC's gross revenues for Claim Tribunal as of the beginning of OPERATIONAL fiscal year 1984 exceeded fiscal year 1984, one claim was settled $113 million. Net income and a tentative settlement was after operating expenses reached in another. The hearing has REVIEW was $97.2 million. After been concluded for one of the remain- payment of expropriation and incon- ing cases, and it is expected that a vertibility reinsurance premiums. net hearing will be held for another soon revenues from insurance premiums after the Tribunal resumes its opera- were $27.3 million. Income from the tions. finance portfolio was $6.6 million, and During fiscal 1984, foreign govern- interest from a record high portfolio ments met scheduled obligations pay- of investments in U.S. Treasury secu- able to, or guaranteed by, OPIC as a rities was $74.3 million. Administra- result of previous claims payments. tive expenses totalled $11.2 million. with one exception. One government As of September 30. 1984, OPIC's is currently in arrears on two quar- cash and portfolio of U.S. Government terly installments totalling $715,619. securities reached a new high of but has not repudiated the debt. $814.9 million, an increase of four percent from the total of $784.3 mil- lion for the previous year. Combined insurance and finance reserves rose to Summary of Funds Available for Claims Payments $825.2 million from $724.1 million; at year end. retained earnings were $8.0 900 million. Funds available for claims pay- ments reached a level of $933 million, including OPIC's $100-million borrow- 800 ing authority for claims settlements. OPIC believes these funds to be ade- quate in relation to its maximum po- tential liability as to claims, which 700 was $3.0 billion at September 30, 1984. Insurance Claims 600 During fiscal year 1984, OPIC set- tled 21 inconvertibility claims with cash payments of $25,137,277 and settled one expropriation claim by 500 providing an indemnity agreement for up to $6 million. Under the new in- demnity agreement and one previ- ously entered into. OPIC paid approxi- 400 mately $625,000 during the fiscal year. As of September 30, 1984. OPIC had already recovered $5,337,855 with respect to the inconvertibility claim 300 payments made during the year; addi- tional recoveries of $18,027.585 were anticipated. Of the five OPIC "salvage" claims 200 pending before the Iran-United States 100 FISCAL 1984 IN REVIEW 0 74 75 76 77 78 79 80 81 82 83 84 Borrowing Authority = 100 Million 17 INSURANCE erage might be obtained for each of insurrection and civil strife, as several large investments subject to compared with fiscal 1983. DEPARTMENT an overall stop-loss limit. This proce- dure allowed OPIC to aggregate coun- Reinsurance and Brokers' try exposure on a prudent risk basis. Program: while holding investors' total insur- Fiscal 1984 was marked by a major ance costs to reasonable levels. advance in OPIC's reinsurance protec- or the fourth consecutive With more countries experiencing tion. The Corporation was able to ne- F year. OPIC's Insurance difficulty in meeting demands for ex- gotiate a more appropriate and greatly Department achieved record change currency to cover investment expanded reinsurance program for its levels of underwriting. remittances. the Insurance Depart- inconvertibility and expropriation ex- Total insurance volume is- ment also modified normal coverage posures at significantly reduced costs. sued during fiscal 1984 reached $4.3 terms wherever possible to permit This action enhances the security of billion. a 10 percent increase over prudent underwriting of convertibility OPIC and strengthens its existing 1983. In all, 124 investment projects risks where such cover otherwise partnership with the private insurance were assisted, exceeding by 16 per- would have been denied. market. cent the number of projects insured OPIC also continued to improve its OPIC's reinsurance of a portion of during the previous year. U.S. small portfolio balance through the spread its risk with private carriers has had businesses were associated with 27 of risk among countries. In fiscal the ancillary benefit of encouraging percent of the projects insured in 1984. 1984. OPIC achieved the best balance new entrants to the market, as well in its country exposure ever. The as increasing participation by active average of the five highest concentra- Underwriting and Risk political risk insurers. The improved tion countries as a percentage of reinsurance arrangements made in Management: worldwide exposure fell to 6.5 percent 1984 involve first-time participation in During 1984. the Insurance Depart- from 7.4 percent for inconvertibility: OPIC reinsurance by six firms. includ- ment introduced a new underwriting to 5.2 percent from 6.0 percent for ing four domestic companies. bringing approach for multiple projects under- expropriation: and to 5.8 percent total participants to 21, of which 14 taken by a single investor so that COV- from 6.4 percent for war. revolution, are U.S. firms. In addition, OPIC's program for paying broker commissions in certain Amount of Insured cases was extended in 1984 to include cases where a broker introduces busi- Investment per Newly-Insured ness that is jointly underwritten by Project in FY 1984 OPIC and a private carrier. New Procedures and Services: $0-$100,000 16 PROJECTS Throughout 1984. emphasis was placed on improving OPIC's insurance $100,000-$500,000 28 products and providing better service to clients. The Corporation's long- $500,000-$1 million 14 standing requirement for registration fees was eliminated to make coverage $1 million-$2 million 24 more accessible to investors, particu- larly smaller firms. and to remove in- $2 million-$10 million 29 ternal administrative burdens. In addition, the formula most fre- Over $10 million 13 quently used to calculate war-loss compensation was modified to ease unnecessarily restrictive limitations. thereby benefiting both existing and prospective insureds. OPIC also of- fered to increase coverage levels for existing insureds on a selective basis. as a means of encouraging earnings retention and reinvestment in devel- oping countries. Finally. improvements were made in the Department's data processing systems and capabilities. and they are expected to yield better service and more efficient operations in the years to come. 18 FINANCE DEPARTMENT uring fiscal 1984. OPIC's D Finance Department as- sisted a record 24 invest- ment projects by issuing direct loan. investment guaranty and local-currency loan com- mitments of $103.5 million. In all, 71 percent of these projects were spon- sored by or significantly involved U.S. small businesses. Sixteen loans for a total of $10 mil- lion were made during 1984 from the Corporation's Direct Investment Fund, which is reserved exclusively for small-business firms. Of these. nine Fishing, Ghana projects involved manufacturing or as- sembling operations. four were in the FINANCE crease its nursery stock of coffee, wood agricultural sector. and three were for and shade trees; and to expand existing fishing enterprises. The smallest di- PROJECTS processing. drying and storage facilities. rect loan was made for $150,000. The project is expected to generate much- while the largest amounted to $1.85 needed economic activity in an undevel- million. Overall, the average dollar Caribbean Sea Investments, Ltd. oped region, as well as create 10 full-time amount of small-business loans com- St. Kitts: A $240,000 direct loan will fund and 20 part-time jobs. mitted in 1984 was $625,000. the establishment of a one-boat commer- In line with the Reagan administra- cial fishing operation involving gill net Excellent Products Corporation, and pot fishing for spiney lobsters and S.A. tion's Caribbean Basin Initiative. 53 local species fish. All of the seafood and Ecuador: This direct loan of $1.5 million percent of total authorized funding un- fish will be sold locally or to neighboring to an existing OPIC client will fund ex- der the Direct Investment Fund went islands. The project will create 12 part- pansion of the Company's shrimp farm to projects in the Caribbean Basin. time jobs. and serve as a model for the operations, creating employment for 50 Six loan guaranties ranging from development of other fishing ventures in people. and providing training opportuni- $2.25 million to $40 million were the Eastern Caribbean. ties in modern shrimp-farming methods. committed during the year, including The project is serving to develop an indus- the Corporation's first for a small con- Choices, Ltd. try that is of high priority to Ecuador. tractor's project in China. In addition. Grenada: An OPIC direct loan of $400,000 two local currency loans totalling $3.0 will help fund a plant in Grenada to pack- Fine Foliage International million were committed for pharma- age whole nutmeg into bottled nutmeg Costa Rica: An OPIC direct loan of $1.2 ceutical manufacturing and packaging kits. This project will create a new mar- million will result in the expansion of this keting outlet for the 7,000 member grow- company's leatherleaf fern operations. and projects in Pakistan. ers of the Grenada Cooperative Nutmeg the creation of an estimated 200 new jobs. As of September 30, 1984. the Fi- Association. and will employ 35 people The cut fern leaves will be marketed nance Department portfolio. including during the initial phases. through the Company's existing whole- authorized commitments not yet dis- salers in Europe. bursed. amounted to $443.7 million. Compania Uruguaya de Cemento OPIC's Direct Investment Fund con- Portland, S.A. Freeze-Flo Corporation, Ltd. tributed $46.6 million to this total. Uruguay: Through a loan guaranty of Jamaica: An OPIC direct loan of $500,000 The total finance portfolio is dis- $2.25 million. OPIC will co-finance. with will equip and launch a fruit processing tributed 49 percent in Africa. 25 per- the World Bank, the modernization and plant using a unique freeze-flow method cent in Latin America and the Carib- quarry expansion of a privately-owned ce- to process papayas and bananas for ex- bean. and 26 percent in the Far East. ment company in Uruguay. Modernization port. The project will create 50 new jobs of the facilities will reduce dust emissions over a five-year period and employ ap- Middle East, South Asia and Europe. and provide significant energy-cost savings proximately 10 small-farm owners. who Since OPIC commenced operations for the company. will grow and harvest the required crops. in 1971, it has financed or agreed to finance $797 million in 144 projects Desarrollo de Rio Pacora, S.A. General Tyre & Rubber Company in 47 developing countries: approxi- Panama: An OPIC loan of $167.000 of Pakistan Ltd. mately 56 percent is included in the to this company will allow it to increase Pakistan: An OPIC loan guaranty of $3.5 current finance portfolio. its acreage planted in coffee trees; to in- million will aid in the construction of a 19 new factory that will triple the company's ple will be employed by the project. This tire manufacturing capacity. The expan- is an initial funding of a multi-year. $1.5- sion will introduce the latest manufactur- million loan. ing techniques. as well as employ 550 new workers. most of whom will be trained for Oryx de Costa Rica, S.A. skilled positions. Costa Rica: OPIC funding of $380,000 will allow this company to expand its existing Grenada Sea Foods International, manufacturing activities by installing a Ltd. unit to refine crude and degummed corn Grenada: A direct loan of $200,000 will and soybean oils into edible oils. Eight fund the start-up of a processing and jobs will be generated directly by the freezing plant in Grenada for spiney lob- project. Bottling and packaging materials ster and conch. The company will supply needed by the project will result in the a local fishing cooperative with modern creation of additional job opportunities in other local industries. fishing gear. provide training for 50 local fishermen and purchase their catch for Searle Pakistan Ltd. processing. Eight people will be employed by the project initially. Pakistan: A $1.3-million local currency loan will assist this company in construct- Helechos de Costa Rica ing a new pharmaceutical manufacturing Costa Rica: An OPIC direct loan of and packaging facility in Karachi. The new $180,000 will fund the expansion of this plant will permit more efficient operations leatherleaf fern farm. creating 12 to 15 and allow the company to expand its new jobs and permitting some current product lines in Pakistan. part-time employees to work full time. Sotave Amazonia Quimica e While the majority of ferns will continue Mineral, S.A. to be marketed through wholesalers in Germany. increased market penetration in Brazil: A $20-million. OPIC loan guaranty Grain storage. Korea the Netherlands will be pursued. will be used to finish construction of a fertilizer manufacturing and distribution Ingle Grenada, Ltd. Marbro Coconut Company plant in Belem. The project will increase Grenada: An OPIC direct loan of $350.000 Malaysia: A $1.85-million loan to fund the the availability of phosphate-based ferti- has assisted in establishing this small fac- start-up of a desiccated coconut factory lizer products in the northern half of Bra- tory to produce handcrafted wooden toys, represents OPIC's first financing in Malay- zil. as well as contribute to increased agri- Christmas ornaments and similar wood sia. The project will introduce modern and cultural development of the Amazon and products. Approximately 300 jobs will be efficient equipment for shredding and pre- other undeveloped regions. created by the project. and 50 workers serving locally-grown coconut through a will be taught new skills. drying process. The project will employ up Systems and Applied Sciences to 600 people. Corporation Johnson & Johnson Pakistan Ltd. China: A $4.7-million loan guaranty will Pakistan: A $1.7-million local currency Nile Village Investment Company help this small U.S. firm complete its con- loan will enable this company to upgrade Egypt: A $20-million guaranteed loan will tract to design and build a Landsat earth its surgical sutures packaging operation. help construct a 425-room hotel and cul- receiving station for the Chinese Academy and establish a pharmaceutical manufac- tural facility in Luxor. In addition to the of Sciences, and to provide training for its turing and packaging facility. The project hotel. to be managed by Hyatt Interna- use. The installation will help China im- will employ 200 people and reduce the tional, areas will be set aside for a per- prove its agricultural land use, and natural country's dependence on imported phar- forming-arts theater, and for craftsmen to resource management. maceutical supplies. make and sell handicrafts. The project will employ 600 people when fully developed. TIA, S.A. Kilwa Ammonia Company Honduras: An OPIC direct loan of Tanzania: Through a loan guaranty of $40 Optiperu $150,000 will provide funds to modernize million. OPIC is participating in the start- Peru: A direct loan of $275,000 will estab- and expand this company's facilities for up of a fertilizer plant that will produce lish a glass lens-grinding factory for pro- manufacturing wooden. juvenile furniture. ammonia and urea to be sold primarily for ducing prescription photosensitive eye- The expansion is expected to more than export in East African and Asian markets. glasses, as well as a laboratory to prepare triple the firm's current level of produc- The project will utilize undeveloped Tan- plastic and glass prescriptions for local tion. as well as provide training and em- zanian natural gas resources and generate opticians. The project will create 40 new ployment for 20 new workers in a rural significant foreign exchange earnings. jobs. section of the country. Maderas Tropicales S. Carlos, S.A. Organized Unit Concentrate Trelawny Vegetables, Ltd. Costa Rica: A $375,000 direct loan will al- Production Jamaica: A $1.4-million OPIC loan will low this company to increase the capacity Yugoslavia: A direct loan commitment of help establish a farm for growing, packing of its existing woodworking operations, $833,000 will help establish a state-of-the- and distributing vegetables for winter ex- and to expand its product line. The proj- art processing facility to produce fruit juice port to the U.S. market. and supplying the ect will create 50 additional jobs in an concentrates from locally grown fruit. local market during the off-export season. area of high unemployment. and provide Sixty-five percent of the project's produc- The project will directly employ 540 indi- training in the operation of modern wood- tion will be for export and the remainder viduals. and another 330 people through working and sawmilling equipment. will be sold locally. Approximately 60 peo- its satellite farms. 20 DEVELOPMENTAL OPIC-Assisted Projects for FY 1984 & U.S. Total Project Investment $2,604,000,000 ECONOMIC U.S. Investment in Projects 1,636,000,000 EFFECTS U.S. Percent of Total 63% U.S. Exports Initial Procurement $1,080,000,000 ith the United States Follow-on Procurement W and other industrial- Production Inputs (5 years) 949,000,000 ized countries re- Total Direct U.S. Project Exports (5 years) 2,029,000,000 covering from the Estimated Man-Years of U.S. global recession, Employment Generated (5 years) 16,084 many developing countries are now emerging from the problems that be- set them earlier. Through export-led growth, some developing countries are beginning to benefit from a resur- nual net income from taxes and years of employment will be gener- gence of trade with. and investment duties paid to host countries will ated in the United States in connec- from. the industrialized countries. amount to $112 million during the tion with the manufacturing. mining. In this context, the results of same period. growing, processing and/or shipping OPIC's fiscal 1984 efforts were strong. It is especially important to note of these additional U.S. exports. Con- The 140 OPIC-assisted projects in- that 59 of the 140 OPIC-supported tinued economic growth of developing volved an aggregate total investment projects for 1984 are located in the countries stimulated by these invest- of approximately $2.6 billion. Of this poorest developing countries (defined ments should eventually create thou- sum, $1.6 billion will be provided by as having a per capita GNP of $680 or sands of additional domestic jobs U.S. investors. $499 million by host less in 1979 dollars). Most OPIC-sup- resulting from exports of U.S. equip- countries. $366 million by third coun- ported investments will take place in ment. materials and services. tries, and $102 million by multilateral Latin America and the Caribbean (62 ° Not all foreign investments. how- lending institutions. These projects projects), followed by East Asia (41 ever, are beneficial to the U.S. econ- will directly contribute to two of the projects). the Near East (13), South omy. Therefore. pursuant to Congres- Third World's most urgent needs: cre- Asia (10), Europe (8), and Africa (6). sional directives, OPIC screens each ation of employment and generation Finally. it should be noted that about proposed investment. and monitors of foreign exchange. a third of the fiscal 1984 projects were them afterward, to ensure they con- During the first five years of opera- sponsored by, or significantly in- tribute positively to the host country's tions, the 1984 OPIC-assisted projects volved. U.S. small businesses or coop- development and that they will not are expected to generate 17,450 jobs, eratives. meeting the 1978 Congres- have a significant adverse effect on of which 2,838 will be at the manage- sional mandate directing OPIC to the U.S. economy or U.S. employment. ment level. Additional employment strive for at least 30 percent. OPIC's economists analyze the prob- will be created because some $913 able impact of every proposed project million of the total $2.6 billion in- U.S. Benefits on the U.S. economy. Such factors as vested will be utilized to obtain goods OPIC-assisted projects also provide U.S. employment. the sensitivity of and services in the host countries and substantial benefits for the United U.S. business to imports. the competi- approximately $77 million in other States by expanding markets. increas- tiveness of U.S. exports in foreign developing countries. ing exports. creating new jobs, open- markets. the imposition of trade- The net effect of these projects on ing access to new resources, and con- related performance requirements by the host country's balance of pay- tributing positively to the U.S. balance the host country and the transfer of ments will be strongly favorable. of payments. high technology abroad are analyzed. While average annual production- The 140 projects supported by Based on this, OPIC refuses assis- related imports will amount to $292 OPIC during fiscal 1984 will generate, tance to "runaway" plant projects and million. and capital outflows will be over a five-year period, total initial any other investment that might have $194 million, the projects will enable and follow-on U.S. exports of $2.0 bil- a significant adverse effect on U.S. the host countries to replace an aver- lion. The net direct trade effect of employment. Eight projects were for- age of $311 million in imports and these projects, after accounting for mally rejected in fiscal 1984; since earn $518 million annually from addi- U.S. imports and the displacement of 1974. OPIC has formally rejected 99 tional exports. Therefore, host govern- exports. will amount to $1.6 billion. projects that might have caused job ments will generate a net foreign ex- U.S. employment benefits resulting loss or produced significantly negative change savings of $343 million per from these projects also will be signif- effects on the U.S. economy. Many year during the first five years of proj- icant. During the first five years of others were discouraged informally in ect operations. Also, the average an- operation. an estimated 16,084 man- the early stages of inquiry. 21 OPIC INSURED INVESTORS IN FISCAL 1984 Total Investment Largest Single Country Insured This Maximum Company or Area Project Investor Coverage A. E. Staley India Soybean processing facility $ 5,000,000 $ 4,500,000 Manufacturing Co. AVX Ceramics El Salvador Manufacture electronic components 6,100,000 3.939.900 Abbott Laboratories Philippines Manufacture pharmaceuticals 437,000 1,179,000 Abbott Laboratories Philippines Manufacture pharmaceuticals 191.000 515.70D Abbott Laboratories Philippines Property lease for pharmaceutical firm 57.000 307,800 Agro Associates. Inc. Pakistan Poultry breeding & hatchery operations 165.394 148.855 Agua Fria Mill Tailings. Ltd. Honduras Processing of gold & silver 600.000 540.000 American Cyanamid Co. Korea Manufacture specialty chemicals & 2,451,000 3,676.500 pharmaceuticals American Cyanamid Co. Korea Sutures assembly facility 3.100.000 1,710.000 American Express Leasing Corp. Brazil Leasing of an oil rig 70,000,000 75,000.000 American Standard. Inc. Guatemala Manufacture vitreous china 645.176 1.161.316 American Standard. Inc. Indonesia Manufacture vitreous china 2,975,000 2,677.500 Applied Magnetics Corp. Korea Manufacture magnetic recording heads 290,000 783.000 Applied Magnetics Corp. Korea Manufacture magnetic recording heads 4,045,000 10.921.500 Baby Togs, Inc. Philippines Manufacture infant-wear 2,500,000 2,250.000 Barnwell-Israel Oil & Gas Limited Israel Oil & gas exploration. development & 111.111.111 100,000,000 Partnership production Bob's Candies. Inc. Jamaica Manufacture of candy 600.000 540.000 Borden. Inc. Costa Rica Manufacture dairy products 1.413,659 1.798.293 Brown & Root. Inc. Sri Lanka Construction of airport runway 510.000 459,000 C. Braxton Moncure Jamaica Business conference center 1,296,746 500.000 Canis. E. H. et al. Haiti Distribution & installation of electronic/ 950.000 675,000 electrical wire Caribe Crown. Inc. Haiti Production of mangoes & hot peppers 195.400 175.860 Carnation Co. Korea Manufacture specialty animal feeds 765,000 2,065.500 Citibank Overseas Investment Corp. Philippines Finance company 41.457 111.934 Citibank. N.A. Korea Branch bank expansion 1,579.000 4.263,300 Citibank. N.A. Haiti Branch bank expansion 100,000 300,000 Citibank. N.A. Korea Branch bank expansion 1,798,228 4,693,216 Citibank. N.A. Jamaica Branch bank expansion 1,380,000 3,726,000 Citibank. N.A. Philippines Bank expansion 4,277,684 11.549.747 Citibank. N.A. Turkey Branch bank expansion 1.320,000 7.128,000 Citibank. N.A. El Salvador Branch bank expansion 1,584,800 152.640 Citibank. N.A. Zaire Commercial bank expansion 2,005,200 5.414.040 Citibank. N.A. Jordan Branch bank expansion 8,202,878 16,406,000 22 Total Investment Largest Single Country Insured This Maximum Company or Area Project Investor Coverage Citibank. N.A. Chile Branch bank expansion $ 6,930,000 $ 18,711.000 Citibank, N.A. Uruguay Branch bank expansion 1,429,000 4,000,000 Citibank. N.A. Kenya Branch bank expansion 1.028.812 2,777,793 Citibank, N.A. Philippines Branch bank expansion 1,349,000 1,214.000 Clayton Dewandre Holdings. Ltd. India Manufacture railway signalling 1.096,000 986,400 equipment Compania Baltima. S.A. & World Haiti Beverage distribution 2,000,080 1,620,072 Management Consultants. Inc. Continental Milling Corp. Zaire Expansion of flour mill operation 1.491.383 4,026,734 Cosecha de Oro Costa Rica Passion fruit & cocoa farm 355.000 750,000 Dana Corp. Indonesia Manufacture & assemble axles & drive 1,560,000 1.404,000 shafts Delmed. Inc. El Salvador Assemble plastic medical products 2,000,000 1.500.000 Dixilyn-Field International Drilling Co., India Oil and gas drilling 3,200,000 3.200.000 S.A. E.P. Supe Gaulding Import & Export Dominican Manufacture printing inks 350.000 270,000 Republic Edward Broch Costa Rica Grow coconuts. pejibayos. oranges & 50,000 45.000 teak/mahogany Ellicott Machine Corporation Egypt Supply dredges 269.500 110.250 International Elliot. Thomas and Winnick, Martin Haiti Mink. rabbit and leather garments 408,206 817.385 Firestone Tire & Rubber Co. Liberia Latex crumb rubber processing facility 2,750,000 2,475,000 First National Bank of Boston Turkey Establishment of branch banks 9.000,000 24,300,000 Foote Mineral Co. Chile Production of lithium carbonate 14,000,000 12.600.000 General Electric Co. Turkey Lamp & glass bulb production 432,020 388,818 General Electric Co. Saudi Arabia Install combustion turbine 2,464,512 2,218,061 General Electric Co. Saudi Arabia Supply & install gas power substation 1,866,711 1,120,027 General Electric Co. Brazil Manufacture electrical conductors 471,108 423.997 General Electric Co. Egypt Supply turbine 2,084,912 1,876.420 General Foods Corp. Korea Manufacture of food products 4,456,239 12.031.845 Gillette Co. Indonesia Manufacture razors, blades & shaving 530.000 648,720 preparations Gillette Co. Philippines Manufacture blades. razors. toiletries & 450.000 1,215.000 writing instruments Gillette Co. Philippines Manufacture blades. razors. toiletries & 800,000 2,160,000 writing instruments Gillette Co. Jamaica Toiletries manufacturing facility 768,000 2.073.600 Gillette Co. Thailand Manufacture razors, writing instruments. 3,803,000 10,268,100 etc. 23 Total Investment Largest Single Country Insured This Maximum Company or Area Project Investor Coverage Gillette Co. Malaysia Manufacture ballpoint pens & refills $ 2,000,000 $ 2,641,500 Gillette Co. Philippines Manufacture razors, blades, toiletries & 2,000,000 5,400,000 writing instruments HARSCO Corp. Indonesia Processing of metallic-bearing materials 841,790 1,331,300 Hanawalt. Jack F. Costa Rica Citrus farm 50,000 45,000 Harbert-Howard Cos. Egypt. Design & install grain silos 79,278,470 4,000,000 Harris Corp. Malayisa Test integrated circuits 18,389,000 17,400,960 Honeywell. Inc. Thailand Assemble integrated circuits 2,500,000 2,700,000 Howard-Harbert-Sadelmi Egypt Rehabilitation of sewage pumping 8.555.555 7,700,000 stations Ingle Industries. Inc. Grenada Manufacture wooden toys & furniture 350,000 1.050,000 Int'l Development Institute Assoc. Nepal Software production facility 300,000 270,000 International Minerals & Chemical Corp. Brazil Production & marketing of fertilizer 13,000,000 35,100,000 International Nabisco Brands, Inc. Turkey Process & distribute peanuts & other nut 1,260,000 3,780,000 products International Paper Co. Korea Manufacture & market liquid packaging 4,000,000 10,800,000 cartons International Paper Co. Taiwan Manufacture & market liquid packaging 1,650,000 4.455.000 cartons J. Rose & Assoc./National Diversified Belize Oil & gas exploration. development & 4,166,667 3,750,000 Properties production Kimberly-Clark International. S.A. Honduras Manufacture disposable hygiene 112,500 304,000 products Kimberly-Clark Corp. Indonesia Manufacture paper 2,550,000 4,590,000 La Barge. Inc. Haiti Manufacture electrical & electronic 4,220,000 3,600,000 components Marsell. J.S., et al. Costa Rica Grow ferns 250,000 153.000 Morgan Guaranty International Finance Portugal Establishment of an investment 1,070,000 963,000 Corp. company Motorola Asia, Ltd. Korea Expansion of semiconductor facility 7.150.450 10,000,000 Nello L. Teer Co. Dominica Road reconstruction 3,000,000 2,000,000 North Central Oil Corp. & Newmont Oil Thailand Oil & gas exploration. development & 27,777,778 25,000,000 Co. production Omega Industries. S.A. Haiti Expansion of leather-tanning facility 100,000 160,000 24 Total Investment Largest Single Country Insured This Maximum Company or Area Project Investor Coverage Owens-Illinois. Inc. Indonesia Manufacture disposable plastic syringes $ 7,272,000 $ 4,528,000 Page, Robert E. Costa Rica Citrus farm 1.500,000 1.035.000 Paul den Haene Belize Construct & operate tourist hotel 1.100,000 1.035.000 Pennzoil Co. & Mr. Rutherford Tunisia Oil & gas exploration. development & 111,111.111 100.000,000 production Pennzoil Co. China Oil & gas exploration. development & 166,666,666 75,000,000 production R. F. Varley International. Inc. India Provide offshore directional drilling 25,000 22.500 services & training Resort Development. Inc. Jamaica Resort facility 233.643 525.697 Roepke, Gordon R. Costa Rica Grow rice. beans & raise cattle 200.000 180.000 Salvador. B. J. St. Kitts-Nevis Commercial fishing 286,000 772,200 Schering Overseas, Ltd. Korea Manufacture & market pharmaceuticals/ 3,155,754 5,680,357 chemicals Searle. G.D. & Co. Pakistan Pharmaceutical expansion 290.000 783.000 Signode International. Ltd. Kenya Manufacture steel strapping systems 57.692 103.846 Slater Electric. Inc. Jamaica Manufacture circuit boards, relays. & 370.000 333.000 electronic subassemblies Smithkline Beckman Corp. Korea Pharmaceuticals manufacturing facility 3,100,000 2,790.000 Spencer Turbine Co. Saudi Arabia Provide dental equipment 10,604 9.544 Squibb International, Inc. Pakistan Establishment of pharmaceutical plant 1.635,000 3.139.221 St. Joe International Corp. Chile Gold/silver exploration. development & 220,000,000 90,000,000 production Standex International Corp. Haiti Assemble & test electronic filters 750,000 675.000 Stapling Machines Co. Turkey Lease equipment to manufacture 121.124 109.912 wirebound boxes Tera Corp. Saudi Arabia Sell & install computerized document 247.356 222.620 storage system Texaco. Inc. China Oil & gas exploration. development & 111.111.111 50,000,000 production Uniroyal. Inc. Turkey Expansion of tire manufacturing facility 922,667 1,660,800 Uniroyal. Inc. Taiwan Manufacture antizonants. antioxidants. 3,982,880 7,169,184 intermediates & accelerators for rubber industry Universal Foods Corp. Jordan Operate yeast manufacturing facility 480.000 324.000 Universal Foods Corp. Chile Manufacture yeast 555.000 500.000 Universal Foods Corp. Chile Manufacture yeast 555.000 500.000 Warner-Lambert Co., A.G. Thailand Manufacture confectionary products 934,783 2.523.914 25 FINANCIAL HIGHLIGHTS t the end of fiscal 1984, Analysis of FY 84 A OPIC's financial results Total Revenue mirrored the Corpora- tion's favorable financial ($113.3 million) status. Total revenue for the year was $113.3 million. an in- crease of $15.8 million or 16 percent Other Interest & Income $ 5.1 over the $97.5 million reported for the previous year. Direct Investment Interest $ 3.0 Polítical risk insurance operations contributed 24 percent of total reve- Investment Guaranty Fees $ 3.6 $74.3 nue. while finance programs contrib- Interest on uted 6 percent; interest income from U.S. Treasury investment in U.S. Treasury securities Securities Net Political Risk contributed 65 percent and other in- terest and income accounted for 5 Insurance Premiums $27.3 percent. Net income was $97.2 mil- lion. 18 percent more than fiscal 1983. Net revenue from operations in- creased to $33.9 million from $31.9 million recorded for fiscal 1983. This increase was due principally to a $1.8 million increase in net insurance reve- nues. Interest income on the portfolio of FY 84 Profit Generated U.S. government securities increased from Total Revenue by 21 percent over fiscal 1983 to ($113.3 million) $74.3 million. reflecting higher yields obtained on investments. At the end of the fiscal year, the par value of the Net Income portfolio amounted to $824.1 million. $97.2 the original cost of which totalled $775.4 million. Total Expenses $16.1 26 Analysis of FY 84 Total Expenses ($16.1 million) Other Administrative Expenses $4.6 Expenses Salaries & Benefits $5.7 Total expenses of $16.1 million for fiscal 1984 were $1.3 million more Investment Encouragement $.9 than the $14.8 million recorded last fiscal year. This increase was due to a Provision for Uncollectible DIF loans $1.0 $2.1 million net increase in insurance and guaranty loan claims and invest- Net Loss on Insurance ment encouragement expenses-offset & Guaranty Payments $3.9 by an $800,000 reduction in adminis- trative expenses. Analysis of FY 84 Assets ($907.2 million) Net DIF Loans Outstanding $28.9 Accounts Receivable $24.3 Assets Acquired in Claims Settlements $35.3 Other Assets $ 3.8 $814.9 Cash & Investments in U.S. Treasury Securities Analysis of FY 84 Liabilities, Financial Condition Capital & Reserves OPIC's total assets at the end of fiscal 1984 amounted to $907.2 million. an ($907.2 million) increase of four percent over $871.2 million at the end of fiscal 1983. These assets are funded by liabilities Total Liabilities $ 24.0 of $24 million. capital of $50 million $673.0 million and reserves of $833.2 million. The Capital $ 50.0 Insurance Reserve increase occurred despite a return of Retained Earnings $ 8.0 $56 million to the U.S. Treasury, rep- resenting the balance of the $106 mil- lion originally appropriated to OPIC. OPIC reserves and retained earnings Guaranty Reserve $152.2 for claims payments and other contin- gencies increased dramatically to reach a level of $833.2 million at the end of fiscal 1984, compared with $735.9 million at the end of fiscal 1983. 27 CURRENT OPIC AUSTIN COMPANY. INC. CHICAGO BRIDGE & IRON CO. AUTOMATIC SWITCH COMPANY CITICORP INSURANCE AVIS RENT-A-CAR SYSTEM INC. CLAYTON DEWANDRE HOLDINGS. LTD. & FINANCE AVX CERAMICS CORP. CLINTON ELECTRONICS CORPORATION BABY TOGS, INC. CLUETT PEABODY & CO., INC. CLIENTS BAIN. JOE D. CM INTERNATIONAL CORP. BANKAMERICA CORPORATION COCA-COLA COMPANY BANKERS TRUST NEW YORK CORP. A.B.A. INDUSTRIES. INC. COILCRAFT INC. BARNWELL-ISRAEL OIL & GAS LTD. ABBEY ETNA MACHINE CO. COLAC BAXTER TRAVENOL LABORATORIES. INC. ABBOTT LABORATORIES COLGATE-PALMOLIVE COMPANY BAYORIENT HOLDING CORP. ABEX CORPORATION COLT INDUSTRIES. INC. BECHTEL GROUP INC. ABRAMOSKA. PAUL COMBUSTION ENGINEERING. INC. BEKER INDUSTRIES CORP. ADDISON-WESLEY PUBLISHING CO. COMPANIA BALTIMA. S.A. et al. BEROL CORPORATION ADELA INVESTMENT COMPANY. S.A. COMPANIA MINERA DEL MADRIGAL BESTFORM FOUNDATIONS. INC. AEL INDUSTRIES. INC. CONCENTRADOS MARINOS BAYOVAR, S.A. BETTFR COIL & TRANSFORMER CORP. AGRICO CHEMICAL COMPANY CONTINENTAL AFRICA INVESTORS. INC. B-G SHRIMP SALES COMPANY AGRO ASSOCIATES. INC. CONTINENTAL GRAIN COMPANY BIENENFELD. MARVIN et al. AGRO-TECH INTERNATIONAL INC. CONTINENTAL GROUPS. INC. BLACK & DECKER MANUFACTURING CO. AGUA FRIA MILL TAILINGS. LTD. CONTINENTAL ILLINOIS CORPORATION BLOUNT. INC. AIR PRODUCTS AND CHEMICALS. INC. CONTINENTAL MUREX COMPANY BLUE BIRD BODY COMPANY ALLIED CORPORATION CONTROL DATA CORPORATION BOB'S CANDIES. INC. ALLIED TUBE & CONDUIT CORP. CORNING GLASS WORKS JUDY BOND. INC. ALLIS-CHALMERS CORPORATION COSECHA DE ORO BORDEN. INCORPORATED ALUMINUM COMPANY OF AMERICA CRESCENT CONSTRUCTION COMPANY BOUDET. JAMES L. et al. AM CABLE TV INDUSTRIES. INC. CW COMMUNICATIONS BRENTESON. ALLEN J. AMERICAN CAN COMPANY CWT FARMS C. BREWER AND COMPANY AMERICAN CYANAMID CO. DANA CORPORATION BROCH. EDWARD AMERICAN EXPRESS COMPANY DANLY MACHINE CORPORATION BROTHERS. WILLIAM C. AMERICAN MOTORS CORPORATION DEKALB-PFIZER GENETICS BROVENTURE CO. AMERICAN PRESIDENT LINES. LTD. DELMED. INC. BROWN. CHARLES I. AMERICAN STANDARD INC. DEL MONTE CORPORATION CABOT CORPORATION AMERICAN UNIFORM CO. DELTA WELL COMPANY CANIS. E.H. et al. AMERICAN WESTERN ENERGY CORP. DEN HAENE. PAUL CARIBE CROWN. INC. AMF INCORPORATED DEVCO INC. CARNATION COMPANY AMPEX CORPORATION DIBRELL CAROLINA FAR EASTERN CORP. CASA COMERCIAL MUNSON ANDRE GREENHOUSES. INC. DILLINGHAM CORPORATION CASTILLO RIO, INC. ANTAKLI. NICOLA M. DISTRIBUIDORA INDUSTRIAL CASTLE & COOKE. INC. APPLIED MAGNETICS CORPORATION DIXILYN-FELD DRILLING CO. CATERPILLAR TRACTOR CO. ARBOR ACRES FARMS. INC. DRESSER INDUSTRIES. INC. C&W TRADING CO., INC. ARDAMAN & ASSOCIATES. INC. DURAMETALLIC CORPORATION CELANESE CORPORATION ARKEL INTERNATIONAL. INC. DYNALECTRON CORP. CENTRAL SOYA COMPANY. INC. ARMCO INC. DYNAMICS TECHNOLOGY. INC. CHAMPION SPARK PLUG COMPANY ARMOUR AND COMPANY EBSCO INDUSTRIES INC. CHANDLER. COOPER & RICH. INC. ARVIN INDUSTRIES INC. ECLIPSE FUEL ENGINEERING COMPANY CHASE MANHATTAN CORPORATION ASHLAND OIL INC. ECOLOGY AND ENVIRONMENT CHEMICAL BANK INTERNATIONAL AT&T INTERNATIONAL INC. CHEMICAL FABRICS CORPORATION EDA INDUSTRIES INTERNATIONAL ATLANTIC RICHFIELD COMPANY CHEMTEX. INC. ELLICOTT MACHINE CORPORATION Note: In cases of multiple investment projects. only the parent company is listed. CHESEBROUGH-POND'S INC. ELLIOT, THOMAS & WINNICK. MARTIN 28 ENVIROTECH CORPORATION GYPSUM CARRIER. INC. INTERNATIONAL TELEPHONE & TELEGRAPH CORP. E.P. SUPE GAULDING IMPORT & EXPORT HALCO (MINING) INC. IRVING TRUST CO. ESI LTD.. N.V. HALF MOON BAY. LTD. JAMAICA PRE-MIX LIMITED ESTECH, INC. HALLIBURTON COMPANY J DEBEER & SON. INC. ETHYL CORPORATION HANAWALT. JACK F. FABRITEK LA ROMANA JOHNSON. DEANE F. HANNA MINING CO. FAFNIR BEARING CO. S.C. JOHNSON & SON. INC. HANOVER BRANDS, INC. FANKHAUSER. KEN et al. JOHNSON PRODUCTS CO. INC. HANS CONSTRUCTION CO. FEDERAL ELECTRIC CORP. JOSTEN'S INC. R.A. HANSON CO., INC. FEFFER AND SIMONS. INC. KAISER ALUMINUM & CHEMICAL CORP. HARBERT-HOWARD COMPANIES FELT PRODUCTS MANUFACTURING CO. KIMBERLY-CLARK CORPORATION HARRIS CORPORATION FERRO CORP. KING RANCH INC. HARTFORD NATIONAL BANK FIRESTONE TIRE & RUBBER CO. LA BARGE. INC. HARSCO CORP. FIRST NATIONAL BANK OF BOSTON LAWRENCE. THOMAS & JAMES et al. HELECHOS DE POAS. S.A. FIRST NATIONAL BANK OF ST. PAUL LEVI STRAUSS & CO. HERCULES INCORPORATED FISH INTER-AMERICA. INC. LIBERIA COMPANY HERSHEY INTERNATIONAL LTD. FLUOR CORPORATION LIBERIAN STEEL PRODUCTS CORP. HEXCO LEASING CO. FORD MOTOR COMPANY LINSON INVESTMENTS. LTD. HIGHMARK/AMERICA INC. FOREMOST-McKESSON. INC. HILTON INTERNATIONAL INC. LIQUID CARBONIC CORP. FOXBORO COMPANY LOMA CORPORATION HOLIDAY INNS. INCORPORATED FRANSEN. HENRY LONE STAR INDUSTRIES JOHN D. HOLLINGSWORTH ON FREEPORT MINERALS CO. WHEELS. INC. JOSEPH M. LONG & CO. F.S.I. FINANCIAL SERVICES HONEYWELL. INC. LSB INDUSTRIES. INC. H.B. FULLER COMPANY HORMEL INTERNATIONAL CORP. LUPERCIO. CLIFFORD S. GALAPAGOS TOURIST CORPORATION. S.A. HOYT & WORTHEN TANNING CORP. MANGOOD CORP. GALLEON BEACH CLUB. LTD. HUGHES EXPLORATION MANCO INTERNATIONAL GENERAL ELECTRIC COMPANY HUNT OIL CO. MANVILLE CORPORATION GENERAL FOODS CORPORATION HUNT'S INVESTMENT CORPORATION MARCO SEATTLE GENERAL INSTRUMENT CO. HURD. OTTO WILLIAM JR. MAREMONT CORPORATION GENERAL IONEX CORPORATION HYATT INTERNATIONAL MARINE SHIPPING CORPORATION GENERAL MILLS. INC. HYTRONICS CORPORATION MARLIN. JAY & DESILETS. ROGER GENERAL MOTORS CORPORATION IMS LYCRETE EGYPT. LTD. MARSELL. JOHN GENERAL REFRACTORIES COMPANY INDUSTRIAL NATIONAL BANK MASTER. JOSEPH J.. et al. GENERAL RESISTANCE INC. INGERSOLL-RAND COMPANY MATHIEU. RALPH GENERAL TIRE & RUBBER CO. INGLE INDUSTRIES McCORMICK & COMPANY. INC. GERBER SCIENTIFIC. INC. INTEL CORPORATION MERCK & CO., INC. GESLING. WILLIAM J. INTERNATIONAL DEVELOPMENT MIDTEX. INC. GIBBS & HILL. INC. INSTITUTE ASSOCIATES MILLER. W.J., et al. GILLETTE COMPANY INTERNATIONAL FINANCE CORP. MINE SAFETY APPLIANCES COMPANY GOLDSMITH SEEDS. INC. INTERNATIONAL FLAVORS & MOBIL CORPORATION FRAGRANCES INC. B.F. GOODRICH COMPANY MOHENCO CORPORATION INTERNATIONAL FOOD STORAGE CORP. GOODYEAR TIRE & RUBBER CO. MONCURE. C. BRAXTON INTERNATIONAL MINERALS & W.R. GRACE & COMPANY A.C. MONK & COMPANY. INC. CHEMICAL CORP. GRANDEY. GERALD W.. et al. INTERNATIONAL MULTIFOODS CORP. J.P. MORGAN & CO. INCORPORATED GREAT NORTHERN NEKOOSA CORP. MORTON-NORWICH PRODUCTS. INC. INTERNATIONAL PAPER COMPANY GREENLAW. INC. ROSCOE MOSS COMPANY INTERNATIONAL PROTEINS CORP. GTE CORPORATION INTERNATIONAL STANDARD ELECTRIC MOTOROLA, INC. GULF & WESTERN INDUSTRIES. INC. CORP. MUELLER CO. GULF OIL CORPORATION INTERNATIONAL TANK TERMINALSINC. NATIONAL CAN CORPORATION 29 BOARD OF DIRECTORS Craig A. Nalen President and Chief Executive Officer of OPIC M. Peter McPherson, Chairman Director. International Development Cooperation Agency Robert E. Lighthizer, Vice Chairman Deputy U.S. Trade Representative Craig A. Nalen M. Peter McPherson Richard T. McCormack Assistant Secretary of State for Economic and Business Affairs David C. Mulford Assistant Secretary of the Treasury for International Affairs Harold P. Goldfield Robert E. Lighthizer Richard T. McCormack David C. Mulford Harold P. Goldfield Assistant Secretary of Commerce for Trade Development Francis X. Lilly Solicitor of Labor. U.S. Department of Labor Thomas A. Bolan Attorney Dr. Allie C. Felder, Jr. Francis X. Lilly Thomas A. Bolan Dr. Allie C. Felder, Jr. Paul J. Manafort. Jr. Senior Vice President and Director, Cooperative League of the USA Paul J. Manafort, Jr. Attorney Carlos Salman Real Estate Executive Henry F. Schickling Carlos Salman Henry F. Schickling William G. Simpson Frances Todd Stewart President. International Union of Tool, Die and Mold Makers and the International Society of Skilled Trades William G. Simpson Investment Banker Frances Todd Stewart President, Kerr-Hays Company 32 City, State Address Company Name Audit Report: Zip Please send me a copy of OPIC's 1984 Development and If you would like to receive OPIC's 1984 Development and Audit Report which includes complete financials, please fill out the card above and mail to OPIC. Photo Credits: D Inside Cover: The White House Pages 1 & 2: Richard A. Bloom Pages 3. 6 & 7: Tomas Sennett Pages 13 & 14: Richard A. Bloom Page 16: The White House (upper photo): Richard A. Bloom Pages 19 & 20: Tomas Sennett Page 31: Richard A. Bloom (upper photo): Ana Ng Page 32: Richard A. Bloom: Ana Ng NO POSTAGE NECESSARY IF MAILED IN THE UNITED STATES BUSINESS REPLY MAIL FIRST CLASS PERMIT NO. 14418 WASHINGTON. D.C. Postage will be paid by addressee Publications Department OVERSEAS PRIVATE INVESTMENT CORPORATION Washington, D.C. 20527 0 Overseas Private Investment Corporation Washington, D.C. 20527 THE WHITE HOUSE WASHINGTON March 26, 1986 MEMORANDUM FOR THE FILES FROM: JOHN G. ROBERTS on SUBJECT: Thomas Bolan Thomas Bolan, a member of the OPIC Board of Directors, telephoned me today to inquire if his registering as a foreign agent on behalf of South Africa would present any problems with respect to his continued service on the OPIC Board. I returned Bolan's call and advised him that 18 U.S.C. § 219 prohibited him from simultaneously serving on the OPIC Board and registering as an agent for a foreign principal. He stated that he would tender his resignation from the OPIC Board to OPIC President and CEO Craig Nalen.