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By Hans Lundberg

N OT so long ago, the discovery of an orebody took place only by accident. At the present time mineral deposits, even though concealed, may be revealed by their physical or geophysical characteristics, considered in connection with geological studies. Geophysical methods are based on sound, scientific principles and in no sense partake of the mysteries of "divining-rod " methods. Geophysical methods are divided into two main groups: Group I: Methods where fields of force surrounding mineral deposits are investigated (magnetic, gravitometric, electric) ; Group I1 : Methods where fields of force are applied (produced) and anomalies caused in these fields by mineral deposits are recorded (electric, seismic). By methods belonging to Group I, the investigation of the fields of force may be brought to an astonishing degree of accuracy by means of highly sensitive and delicate apparatus (torsion and magnetic balances) ; at least, in simple cases these methods have proved to be of great value.

Jan 1, 1925

Membership at the end of the year 1951 was 19,711 including 2228 Student Associates. The data in the third column include these Student Associates. 1. This includes all the cash dues income received from new and old members of all grades. 2. All cash initiation fees received. 3. Net income received from advertising in the three journals. The figure was $72,273, for MINING ENGINEERING; $39,844 for the JOURNAL OF METALS; and $31,564 for the JOURNAL OF PETROLEUM TECHNOLOGY. Income in 1950 was $54,572, $30,390, and $18,443 from these sources, respectively. 4. Receipts from individual sales, nonmember subscriptions, and multiple subscriptions of members. 5. Includes Transactions volumes and the Petroleum Statistics volume. 6. Sales of all other printed matter except special volumes sponsored by certain Funds. Includes a considerable sale of preprints and reprints of technical papers. 7. Does not include dividends and interest from certain Funds whose income reverts to those Funds. 8. Miscellaneous income not included in any of the above categories. 9. The total income compares with $493,197 -in 1950, an increase of $29000.

Jan 1, 1952

By George Rice

THE A.I.M.E. Ground Movement and Subsidence Committee, pro-posed in 1920, held its first technical meeting in February 1923, under the able chairmanship of Mr. H. G. Moulton. The following list of papers and discussions, indicating the scope of the problems and relation to various conditions and method of mining, were given at that meeting by the distinguished mining engineers: J. Parke Channing, on Subsidence at Miami, Arizona; Howard N. Eavenson, on Mining an Upper Bitu-minous Seam after a Lower Seam Has Been Extracted; J. J. Rutledge, on Subsidence in Two Oklahoma Coal Mines; Benjamin F. Tillson, on Caving Cracks at the Franklin Mine, New Jersey; Dr. F. W. McNair, on the Dome Theory; William Kelly, on disadvantageous effects in Mining and Back-filling Working Upward a Steep-Pitching Iron-ore Bed; Eli T. Conner, on the good results of Back-Filling by Hydraulic Means in Preventing Destructive Subsidence in the Anthracite District; Thomas H. Claggett, on the merit of Systematic Pillar Drawing in Preventing Cracks in an Upper Seam; Henry H. Otto, successful results in the anthracite district in Mining Lower Seams before Upper Seams; Douglas Bunting, on Leading Factors Incident to Successful Mining of an Overlying Seam; Edwin Ludlow, on there being "less damage to buildings when there was complete removal of coal with complete packing than when room and pillar is used without extracting the pillars"; Edward O'Toole on "bumps" in eastern Kentucky mines, which he thought were the result of geologic stresses: H. A. Buehler, on Upheaval of Surface in an Illinois Case in Advance of the Face; and R. Dawson Hall, on The Mechanics of Subsidence from Mining. The author of this paper discussed various kinds of problems of ground movement and subsidence in both metal mining and coal mining; the production of great landslides by workings near an outcrop, as at Turtle Mountain, Alberta, Canada; and general

Jan 1, 1939

By F. B. Plummer

GEOLOGICAL engineering as applied to oil fields, or production geology as some prefer to designate the profession, is designed to fill in the border line between pure geology and pure petroleum engineering. Therefore the production geologist may, and frequently does, reach out to grasp much in both professions. Where once the oil geologist was content to pick samples out of a mud ditch and try to identify oil formations from the color or appearance of flakes of rock bailed out of a well, now he has to deal with graphic electrical logs obtained by intricate and highly technical electrical apparatus and to make exact determinations to the fraction of an inch of the depth and thickness of an oil sand 2 miles below the surface.

Jan 1, 1944

By J. B. Dilworth

OUTCROPS of coal have bees discovered is many localities is the Philippine archipelago, and practically all of the larger islands contain deposits of this mineral. Very little prospecting has been done to determine the value of the various coal-bearing areas, but so far as known, the largest and most promising fields are found : (1) is northern Cebu; (2) is the small island of Batan, a part of the province of Albay is southeasten Luzon; (3) is the somewhat larger island of Polillo, off the east coast of Luzon, and (4) is southern Mindoro, sear the small coast tows of Bulalacao. Northern Panay, south-central Cebu, and various localities is southern Luzon, Masbate, Negros, and Mindanao also afford evidences of the existence of coal-beds, the extent and value of which have not yet bees proved. The general position of these islands and districts is shows on the map of a portion of the Philippine Islands, Fig. 1. Some of these coal-fields have been known for many years (coal was discovered is Cebu 1827 and is Batas is 1842),1 and several futile attempts were made by the Spaniards to operate mines is these districts. But owing to many circumstances, chief among which were indifferent management, the political unrest of the islands, natural difficulties of transportation, and those inherent in the mining of steeply-inclined and somewhat irregular seams, no considerable output was ever obtained from any of these mines, and the fuel required is the many departments of industrial and political life has continued to be drawn largely from Australia and Japan. These conditions exist to a great degree at present, and though much interest is the coal-deposits of the Philippines

Jan 1, 1909

By Ralph Sweetser

THE Round Table. on Qualities of Pig Iron, under the auspices of the Joint Committee on Qualities of Pig Iron, which is made up of members of the American Institute of Mining and Metallurgical Engineers, the American Foundrymen's Association, the American Society for Testing Materials, the Gray Iron Institute, and the. Malleable Iron Institute, was held at the Palmer House, Chicago, Ill., on Oct. 1, 1935. PROCEEDINGS R. H. SWEETSER,* New York, N. Y.-Seven years ago last June we had a round table on qualities of pig iron1, and at that time the foundrymen were out with their battle-axes for the blast-furnace men, and the open-hearth men were doing the same thing. After that meeting there was really a determined effort to find out about the qualities of pig iron, and great progress has been made all along the line. This afternoon we want to have a frank discussion of the qualities of pig iron, whether it is the molten pig iron going into the steel plant, or cold pigs going to the different foundries. We ought to hear something from Dr. J. T. MacKenzie, who is chairman of the Joint Committee, and from Mr. R. E. Kennedy, the tech-nical secretary. J. T. MACKENZIE, t Birmingham, Ala.-As a result of that meeting in Chicago, there was considerable agitation in the Foundrymen's Association to develop a set of tests for pig iron. One of the difficulties was that nobody talked the same language on shrinkage, draws, live iron, dead iron, and so forth, which were the main com-plaints against pig iron. By request of a committee of the Foundrymen's Association, the Bureau of Standards ran a comprehensive set of tests that did develop the prin-ciples governing the optical pyrometer as applied to cast iron and pig iron. Then the Bureau went on further with the fluidity test, and developed a method for the absolute changes of volume at the freezing point.

Jan 1, 1936

Jan 1, 1920

By Walter R. Hibbard

THE increased strength of a polycrystal-line metallic aggregate compared with that of its individual crystals generally has been associated with complex stress distributions at the grain boundaries resulting from atomic irregularity between grains. This disregistry, together with the necessity for adjacent crystals to deform 'compatibly regardless of the single crystal crystallographic strain mechanism, complicates this mechanism so as to increase the metal's resistance to deformation. Although Taylor1 has shown from purely mechanical considerations the requirement for at least five active slip systems to absorb the complexities during the homogeneous deformation of polycrystalline face-centered cubic metals, experimental studies by Barrett and Levenson2 indicate that this is feasible only in a qualitative sense because of deviations from homogeneous deformation. Seitz and Read in their review3 state: "Unfortunately . . . present knowledge of the grain boundary influence is not sufficient to complement the work in single crystals and provide us with a good foundation for treating polycrystals." The purpose of this investigation was to attempt to clarify the gap between single crystals and crystalline aggregates by an analysis of the effects of deformational stresses. Some of the results were described by C. H. Mathewson in his 1943 Campbell Memorial Lecture.21 PREVIOUS INVESTIGATIONS Since the performance of single crystals deformed under pure stresses has been relatively thoroughly investigated, the most significant researches are concerned primarily with deviations from single crystal behavior of large grained specimens. Qualitative grain boundary effects involving the observed amount of slip were reported by Carpenter and Elam5 in 1921. Individual crystals in a two or three grained aluminum specimen deformed by tension acted in the normal manner described by Taylor and Elam4 except for marked modifications at the grain boundaries. There the power to withstand deformation was considerably increased, leaving a ridge on the specimen where decreased slip occurred, often noticeable 34 in: from the boundary. Adcock,6 Yamaguchi,7 Seumel,8 Hirst9 and others have also reported this phenomenon as a qualitative trend. Yet attempts by O'Neill10 and Ljunggren11 to measure a difference in hardness at grain boundaries in undeformed specimens were unsuccessful. Miller12 measured quantitatively the reduction in slip near the boundary between the single crystal and polycrystalline areas of zinc specimens. These effects consisted of two parts: I. Next to the polycrystalline interface the distribution of stresses was so altered

Jan 1, 1948

By Clinton M. Young

(Pittsburg Meeting, March, 1910.) I. INTRODUCTION. THE experiments herein. described were carried on in 1908-9 . by the State Geological Survey of Kansas. Some months before taking up work on black powder the Survey had resumed work on an interrupted investigation of explosions in coal-mines, a subject which is engaging the attention. of numerous investigators. An unusual number of serious disasters has directed to. the subject a study which discloses the disquieting fact that, in the. United States, the ratio of lives lost per ton of coal mined has been on the increase. Methods of coal-mining have changed to some extent with the great increase of output, attained in, comparatively recent years. These changes involve the working of very extensive mines, with increased difficulty of ventilation, increased accumulation of coal-dust, and. a very great increase in the amount of explosive used.. . This last point assumes truly startling proportions when it is carefully observed. In the fields of the Middle. West it is not now uncommon for a miner to use six ,kegs (150 lb.) of black powder in a "pay" of two weeks, while within the memory. of men still active, one keg (25 .lb.) would last two men for a " pay." So. great has . the use of explosives become in some fields that the skilled coal-miner is hard to find, and the coal is not mined, but blasted. A preliminary study of the subject. of explosions in coal-mines has. led to the belief . that the use of, large -quantities of explosives, in some cases by slightly-trained men, had not been * Associate Professor- of Mining Engineering, University of Kansas, Lawrence, Ran.

Aug 1, 1910

By Yu A. Chernegov

Building up the USSR's economic strength was the result of all the achievements and successes of our economy. The Soviet Union was the first to begin planned guidance of the economy. The mining industry of the USSR, which holds the first place in the world output of mining production, has always been considered as the main raw materials basis of the country's economy. High and stable development rates are a feature of planned economic management, based on the social ownership of the means of production. During the past ten years from 1965 to 1875 the national income used for consumption and accumulation increased practically by 1.9 times. There has been no inflation, no unemployment in the Soviet Union for about forty years already. High and stable growth rates of the production of mining industries and that of the branches, which are their direct consumers are characterized by the data in table I. The achievements and successes of the economy's development are to a great extent determined by the three planning components, which are as follows:

Jan 1, 1977

By Howard Martens, Pol Duwez

XPERIMENTS were performed on a Cr-Fc alloy Econtaining 44.7 pet Cr in order to determine the heat evolved during the transformation of the a solid solution into the s phase, and the change in volume accompanying the transformation. Since previous measurements on the rate of formation of a from s indicated that the reaction was quite fast as soon as the equilibrium temperature of 820°C was exceeded by some 50°, standard thermal analysis experiments were performed on heating specimens of s at the rate of approximately 40°C per sec. A definite thermal arrest was observed at 870"C, Fig. 1. This result indicates that the reverse seaction of into a is exothermic. From the heating curve of Fig. 1, taking 15°C per sec as the heating rate in the neighborhood of the transformation, 2.4 sec as the time for transformation, and assuming that the specific heat of the alloy at 850°C is an average between iron and chromium, namely 9.5 cal per mol per "C, the latent heat of transformation is approximately 342 cal per mol. The order of magnitude of this latent heat was also obtained by comparing the heating curve of Fig. 1 with a similar curve obtained with pure iron under identical experimental conditions. It was found that the length of the thermal arrest for s was about 1.8 times as long as that for iron. Since the latent heat of the a to 7 iron transformation is 203 cal per mol1, 2 the latent heat of it to a would be 365 cal per mol, which is in relatively good agreement with the value determined from the heating curve. For the determination of volume change, thermal expansion curves were recorded using a specimen containing 44.7 pet Cr and completely transformed to cr by previous treatment. The curves were recorded at a rate of heating of about 4°C per min and at approximately 840°C a sharr, increase in length of about 0.08 pet took place. Fig. 2. It is therefore established that the specific volume of a near the transformation temperature is about 0.24 pet smaller than that of a, and consequently, when the s phase forms in an a matrix, it would tend to shrink away from the matrix. Since the s phase is known to be extremely brittle, these results offer an explanation for the microscopic cracks often observed in the a phase under the microscope. The results of this study are in qualitative agreement with previously published data on stainless steel 19-9DLa and on a Cr-Fe alloy containing 45 pet Cr.' The increase in density due to the transformation from n to s given in ref. 4 is 0.90 pet. These measurements, however, were made at room temperature. whereas the presently reported 0.24 pet is the change at the temperature at which the transformation takes place during heating. In the graph of Fig. 2, the percentage change in length that would be observed at room temperature is given by the length X, which is about 0.27 pet. This would correspond to 0.81 pet in volume change. Acknowledgment This work was done at the Jet Propulsion Laboratory, California Institute of Technology, under Contract No. DA-04-495-ORD-18 with the Army Ordnance Corps, Washington, D. C. The authors wish to thank this agency for permission to publish the results of this investigation. References I H. Klinkhardt: Measurements of True Specific Heats at High Temperatures. Annalen der Physik (1927) 84, pp. 167-200. - H. Esser and W. Runghardt: Influence of the Method, of Dctcrmination on the Measured Heat Content of Iron. Archtvo ffur Dct Eisenhiittenwesen 11934) 8, pp. 37-38. J. J. Gilman, P. K. Koh, and 0. Zmeskal. Delta Ferrite Formation and its influence on the Formation of Sigma in a Wrought Heat Resisting Steel. Trans. ASM 1 1949) 11, pp. 1371-1388. 1 J. M. Thomas: Discussion of ref. 3. Trans. ASM (1949) 41, pp. 3 390-1392.

Jan 1, 1957

By Paul T. Allsman, E. W. Newman

Trenching, sampling, and core drilling in Stillwater and Sweetgrass Counties, Mont., by the Bureau of Mines have delimited over 5,000,000 tons of chromite ore containing more than 20 per cent chromic oxide. The Benbow and Mouat-Sampson mines have been developed and are fully equipped for mining and milling 500 tons and 2000 tons a day, respectively. Introduction The Montana chromite deposits were the first to be explored under the Strategic Minerals Act of 1939. In June of that year, the Bureau of Mines started exploration by trenching, test pitting, sampling and diamond drilling, and completed the project in March 1943. The U. S. Geological Survey cooperated by mapping the geology and logging the cores. The project was to determine the extent and grade of the chromite ore and to indicate sufficient reserves to justify development and exploitation of the deposits for the national emergency. Exploration has indicated that the district contains the largest and most important reserve of chromite ore in the United States. The Benbow and Mouat-Sampson mines have been developed and a 500-ton concentrating mill has been constructed on the Benhow property and a 2000-ton mill on the Mouat-Sampson property. Concentrates were produced from the Benbow mill three months after the attack on Pearl Harbor, when the nation's major chromite supplies from foreign sources were cut off. History It has been known for 50 to 60 years that some chromite deposits existed in an east-west belt along the north escarpment of the Beartooth Mountains about 25 miles north of Yellowstone Park, but nothing was known of their size and extent until the war demand of 1917 and 1918 stimulated the search. In those years two properties in the Stillwater region were actively developed, but no shipments were made. The Benbow property was located in 1918 by a local group. The property comprised seven claims along the strike at the east end of the belt. An adit was driven several hundred feet on the Eclipse claim. The seven claims were sold to the Chromium Products Corporation of Livingston, Mont., and were subsequently patented. In 1929, an eastern group obtained an option, installed some equipment, and erected several log cabins. The "crash" in the market in 1929 caused the operators to drop their lease, and the property remained inactive until 1939, when the Bureau of Mines began its exploration. Fourteen claims were located on the Boulder River in 1918 and subsequently patented by the U. S. Chrome Corporation.

Jan 1, 1949

By Paul T. Allsman, E. W. Newman

Trenching, sampling, and core drilling in Stillwater and Sweetgrass Counties, Mont., by the Bureau of Mines have delimited over 5,000,000 tons of chromite ore containing more than 20 per cent chromic oxide. The Benbow and Mouat-Sampson mines have been developed and are fully equipped for mining and milling 500 tons and 2000 tons a day, respectively. Introduction The Montana chromite deposits were the first to be explored under the Strategic Minerals Act of 1939. In June of that year, the Bureau of Mines started exploration by trenching, test pitting, sampling and diamond drilling, and completed the project in March 1943. The U. S. Geological Survey cooperated by mapping the geology and logging the cores. The project was to determine the extent and grade of the chromite ore and to indicate sufficient reserves to justify development and exploitation of the deposits for the national emergency. Exploration has indicated that the district contains the largest and most important reserve of chromite ore in the United States. The Benbow and Mouat-Sampson mines have been developed and a 500-ton concentrating mill has been constructed on the Benhow property and a 2000-ton mill on the Mouat-Sampson property. Concentrates were produced from the Benbow mill three months after the attack on Pearl Harbor, when the nation's major chromite supplies from foreign sources were cut off. History It has been known for 50 to 60 years that some chromite deposits existed in an east-west belt along the north escarpment of the Beartooth Mountains about 25 miles north of Yellowstone Park, but nothing was known of their size and extent until the war demand of 1917 and 1918 stimulated the search. In those years two properties in the Stillwater region were actively developed, but no shipments were made. The Benbow property was located in 1918 by a local group. The property comprised seven claims along the strike at the east end of the belt. An adit was driven several hundred feet on the Eclipse claim. The seven claims were sold to the Chromium Products Corporation of Livingston, Mont., and were subsequently patented. In 1929, an eastern group obtained an option, installed some equipment, and erected several log cabins. The "crash" in the market in 1929 caused the operators to drop their lease, and the property remained inactive until 1939, when the Bureau of Mines began its exploration. Fourteen claims were located on the Boulder River in 1918 and subsequently patented by the U. S. Chrome Corporation.

Jan 1, 1949

By Robert A. Laurence

Ore deposits in the Southern Appalachians are ( 1) sedimentary or syngenetic, ( 2) epigenetic, and ( 3) residual. In general, deposits characteristic of high temperature and pressure are found in the Blue Ridge and Piedmont provinces and those of low and intermediate temperature and pressure, including the sedimentary ores, are found in the Valley and Ridge and Appalachian Plateaus provinces. Residual deposits are present throughout the area. Recognition of several periods of intrusion and metamorphism in the Appalachians has changed former concepts which held that most mineralization was of late Paleozoic age in a zonal pattern including all four provinces. Many deposits probably are of early or midPaleozoic age. Similarly, recent studies in geomorphology indicate that the formation of residual deposits is a continuous process and not related to specific cycles of peneplanation.

Jan 1, 1968

By Robert B. Coleman

The recent surge in demand for uranium in the US, accompanied by a significant increase in price, has stimulated the search for and development of lower grade ore bodies. At the mill, this translates into much larger throughputs and-compounded by many recently enacted environmental considerations-has made the cost of milling a critical factor in today's uranium production economics. The three conventional milling methods employed in the extraction of uranium ores are reviewed in the following sections.

Jan 10, 1978

By B. N. Whittaker, C. J. Bonsall

The paper gives an account of the factors influencing the stability of coal mining tunnels and goes on to examine various bases of support and lining design of such tunnels in relation to geological and mining conditions. The different types of coal mining tunnels are compared and comments made regarding the factors influencing their choice and basic design features. Foremost amongst design considerations is the design method and special thought has been given to the validity of different formulae as related particularly to UK Carboniferous geological conditions. Emphasis is placed on the role of the stress field in relation to tunnel stability. Shape of mining tunnel has been investigated and conclusions drawn regarding the merits of different commonly excavated geometries from a stability point of view. Detailed design aspects pertaining to determination of tunnel lining strength and resulting stability are critically examined and current design methods are compared. Data from UK mining tunnels are included as the basis for comparison of these design methods.

Jan 1, 1983

By George C. Gibbons

ALMOST everyone in any of the five counties embracing the great East Texas field depends heavily upon oil for his living whether or not he actually owns a well or piece of royalty himself. Oil is a natural resource that, when utilized, spreads its benefits over a vast area and into many channels. Depending then almost entirely upon agriculture: what is now known as the East Texas oil field a decade ago had a scattered farming population. For many of its people, tomatoes and other vegetable crops coupled with the old southern stand-by of cotton, furnished an adequate living and a small cash surplus. Some farm families on the red hills, however, were not far re- moved from the sowbelly and black- eyed peas, or cornpone and potlikker, standard of living. Kilgore of that day, was a village of less than 850 per- sons. Longview, with just over 5000, apparently had reached the limit of its growth. Tyler was an overgrown farming town of around 17,000 persons, de- pending largely upon the agricultural income of Smith County and surrounding territory for which it was a trading center.

Jan 1, 1941

By Leon Borgman, Michael P. Lipkewich

Orebodies at or near the surface are generally amenable to open pit mining. The development of a mining program involves designing an ultimate pit and a production schedule. This pit maximizes total profit while the production schedule maximize6 the present value of the property. Optimum pit limits can be approximated by two-and three-dimensional numerical techniques. These techniques presuppose that the mineralized area has been sufficiently sampled to allow a reasonably accurate prediction of grade at any spatial location.

Jan 1, 1969

J. R. Lane (Metals Research Laboratory, Washington)—A new type of deformation called "kinking" has recently been described. Is there any relation between the "rumpling" described in this paper and "kinking?" D. C. Jillson (author's reply)—Both are manifestations of bending about [210] axis. The difference is one of degree. W. C. Ellis (Bell Telephone Laboratories, New York) —Some observations of deformation in zinc recorded in this paper may be applicable generally to flow in metals. One of these, deformation in torsion without evidence of slip or twinning in the early stages and with startling ease, when the twist is about the hexagonal axis, adds another method of flow to the presently increasing list of mechanisms. This illustrates again that a crystal will utilize any realizable process to flow and relieve stress. The process is not necessarily classical directional slip—& this case, it is rotational slip. The question naturally occurs: Will face-centered cubic metas stressed by twisting about an octahedral axis flow in a similar manner by rotation on an octahedral plane? I would like to ask Dr. Jillson if he has made any experiments or knows of any experiments of this type on face-centered cubic metals? Face-centered cubic metals possibly would behave differently from zinc, since, for one thing, the stacking sequence is different for the two structures. The results of such experiments, however, would be instructive in providing more information about deformation processes. D. C. Jillson—Dr. Roy E. Swift, working in the Hammond Laboratory at Yale, performed a twist test on a single crystal of brass. The work has not been published, and I do not know the crystallographic direction of the axis of the specimen used. Lo-ching Chang (Columbia University, New York)— Observations similar to Figs. 1 and 2 of the paper were obtained by us during the bending and unbending of an orthorhombic Au-Cd alloy.'l This orthorhombic alloy is the product of diffusionless transformation from a single crystal of p Au-Cd alloy (CsC1 structure) containing 47.5 atomic pct Cd on cooling to about 60 "C.62 Referring to the effects of annealing, has the author tried any loilg time high temperature anneal, such as 150 to 200 hr at 40O°C? D. C. Jillson—No. C. Crussard (Ecole des Mines, Paris: France)—I

Jan 1, 1952

By Peter Allen, John R. Stuermer

COUNTRY RISK ANALYSIS A company operating in a foreign country assumes all the risks that it would at home. However, beyond these, it assumes risks that arise from the unique political economic, financial conditions of the foreign country which it operates. These risks are known as "country risks". The importance of these risks has grown appreciably in the recent past (particularly in the aftermath of Iran's revolution in the late 1970s and Mexico's debt rescheduling of 1982-83), and as a result, country risk analysis has become an increasingly useful management tool. Country risk analysis seeks to assess the probability that countries will service their aggregate foreign liabilities on time, as well as the probability that country conditions could inhibit the debt service capability of private sector debtors. This involves assessment of both the ability and the willingness of countries to meet their external liabilities in a timely fashion. "Ability" is linked economic and financial variables: principally, a country's economic structure, foreign exchange generating capacity and debt service burden. On the other hand, "willingness" is tied to political factors: mainly the economic/financial orientation of government policy and the stability of economic decision making. Ability: Economic, Financial Conditions and Prospects Judgement of a country's ability to meet foreign financial obligations begins with a detailed study of a country's external balance sheet which compares the country's foreign liabilities and assets. Table 1 below presents country balance sheets for Mexico, Korea and Indonesia. [TABLE 1 The External Balance 3-,-et 1983 (billions of dollars; Indonesia Mexico Korea Foreign Liabilities 31.1 67.6 40.5 By Source: Bank 13.1 75.5 26.3 Non-bank 18.0 12.114.2 Foreign Reserves 9.3 4.7 7.0] The large magnitude of Mexico's external debt (nearly $90 billion), compared to foreign assets of approximately $5 billion, illustrates the weakness of this country's external payments position, and the main reason that it has been unable to meet interest and principal payments and been forced to reschedule its foreign debt. On the other hand, the relationship between Korea's external liabilities and assets ($50.5 billion and $7 billion, respectively), is more favorable and helps explain why Korea has been able to meet debt service payments and maintain its access to the international capital markets. Indonesia has even a more favorable relationship between its foreign assets and liabilities, $31 billion and $9 billion, respectively, and its debt is mostly lower interest rate, non-bank debt, making for a less onerous debt service burden. After the balance sheet, the analysis turns to a comparison of the country's foreign exchange earning capacity and its prospective financing requirements, that is, the country's future earnings stream

Jan 1, 1985