Press Release No. 48 Issued by the Federal Loan Agency on September 25, 1940

Jesse Jones, Federal Loan Administrator, announced today that as a part of the National Defense program the Metals Reserve Company has agreed to buy from the National Resources Commission of China tungsten to the value of $30,000,000. The tungsten will be delivered over a period of years at prices to be agreed upon from time to time, in accordance with market conditions, as the tungsten is delivered.

To assist China to meet her present foreign exchange needs the Export-Import Bank has agreed to lend China $25,000,000 that will be liquidated through the sale of the tungsten. The loan will be made to the Government of China with the guarantee of the Central Bank of China.

December 15, 1938, the Bank authorized $25,000,000 credits to the Universal Trading Corporation of New York, a Chinese-owned American corporation, which is being repaid through the importation from China of wood oil, used in the manufacture of paints and varnishes. $20,840,000 of this authorization has been drawn, and $2,993,444 repaid.

March 7, 1940, the Bank authorized additional loans to China of $20,000,000 which is to be repaid through the importation from China of tin. Some tin is already being shipped.

Of all loans heretofore authorized to China, both by the RFC and the Export-Import Bank, $43,824,528 has been disbursed and $13,160,253 repaid, with nothing past due.