825.51/1159: Telegram
The Secretary of State to the Ambassador in Chile (Bowers)
147. Your 187, October 17, 5 p.m. With respect to your paragraph 2, the Brazilian arrangements contemplated a short term acceptance credit to the Banco do Brasil, all of which has been utilized, and a general commitment subject to individual consideration of specific proposals. Unlike the general commitment of $5,000,000 recently undertaken for Chile, the Brazilian general commitment specified no amount and as a consequence the Export-Import Bank has not set aside any specific funds at all for the purpose, whereas in the case of Chile the $5,000,000 has been allocated specifically. As stated in the Department’s 140, October 14, 1 p.m., there will be no further funds to undertake operations either with Brazil or Chile pending congressional action.
With regard to your paragraph 3, authorization for an increase in the lending powers of the Export-Import Bank will be requested of the Congress at the earliest convenient moment. At the present juncture, the Department is unable to forecast whether this request will be made of the Congress at the special or regular session.