893.51/6422
Memorandum by the Adviser on International Economic Affairs (Feis)
I attach a copy of a letter addressed by the Chinese Ambassador to the Export-Import Bank91 in regard to credits for the purchase of goods in this country. The Board of the Bank considered this question at yesterday’s meeting. The President of the Bank proposed to reply in accordance with the attached note,92 which would mean a commitment in general principle which in fact would only be realized as specific transactions were approved by the Export-Import Bank and specific conditions agreed upon. The condition (c) enabling the Bank to suspend or cancel any credit at any time would take care of any questions raised by our neutrality legislation.
The Board favored this reply. However, it was agreed to hold it up until the present crisis situation in the Far East should become more clearly defined or terminated.