825.51/1141: Telegram
The Secretary of State to the Ambassador in Chile (Bowers)
121. Your 144, September 9, 1 p.m. The Export-Import Bank has allocated $5,000,000 for the discounting of notes received by American exporters from the Chilean Fomento Corporation in connection with the purchase of American equipment urgently required during the next 6 months by the Chilean development program. Such notes are to bear 4 percent interest and to be amortized in semiannual instalments during a period of 8 years. It is expected that provision would be made for amortizing the notes out of the proceeds of the new copper and other revenues.
The utilization of the $5,000,000 credit is contingent upon the favorable consideration by the Export-Import Bank of individual specific requests, and it will of course be necessary for this Government to have full information as to what materials and equipment would be included, and the relation of these to the whole Chilean development program.
As was indicated in the Department’s 108, August 26, 5 p.m., the Export-Import Bank will reserve the right to work out each individual transaction with the American exporters involved, with or without partial or full recourse to such exporters.