The VALUE IS clause defines the values associated with
  condition-names, the initial value of Working-Storage Section data
  items, the value of Report Section printable items, the compile-time
  initialization of variables to the address of data, and to external
  constants.

  Format 4 -

   VALUE IS EXTERNAL external-name

1  –  external-name

  names a COBOL link-time bound constant.  It must define a word or
  longword integer value.