State College - 5/l/ -4- or whether their ability to earn dollars is such that we can expect the continuation of sufficient dollar availability to rely on the political rules. In some countries such as Venezuela a dollar surplus exists and there is no problem. In other countries the foreign exchange policies and the country and fiscal policies of the government are sound enough that we are willing to take our chances. However, in certain cases we reached the conclusion that we are unwilling to invest our funds even temporarily in the currency of the country, although we would be willing to perform work in the country. In these cases we seek means to accomplish these objectives by some device that will meet the problem. This can be done in several ways. In Australia, for example, we are faced with the problem that we encountered no difficulty in repatriating our profits but are not allowed to bring back our investment capital. We meet this problem by minimizing our investment capital and borrowing abroad the funds necessary to conduct our work, borrowing from the local banks under a guarantee by the parent company. In other cases, we insist that the government provide us with the dollar funds necessary for us to carry on our work and we use this revolving fund as the source of our capital. In many countries of the world arrangesment of this type have been worked out in order to obtain for those countries the particular skills and know how of the American contrator.