893.51/6440

Memorandum by Mr. Raymond C. Mackay of the Division of Far Eastern Affairs

Proposed Extension to China by the Export-Import Bank of Commercial Credits

At the suggestion of Mr. Warren Pierson, I this morning attended a meeting of the Executive Committee of the Export-Import Bank which was held for the purpose of reaching a decision in regard to the above-mentioned subject. (See attached memorandum of August 9 addressed to Secretary Hull.)99

Following lengthy discussion, in the course of which I, upon inquiry, said that the Department of State would be favorably disposed to the extension of the credits under reference provided the Export-Import Bank is satisfied that the transactions under contemplation are sound from a business point of view, decision was reached by the Executive Committee that Mr. Pierson should, as opportunity offers, orally inform the Chinese Ambassador to the effect that, although no change has taken place in the attitude and views made known to Minister Kung on the occasion of his recent visit to Washington, it would, in the light of the existing situation in the Far East, seem advisable, in the interests of all concerned, to postpone any definitive action in regard to the extension of the credits under consideration.

R[aymond] C. M[ackay]
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