The Secretary of State to the Ambassador in Argentina (Armour)
121. After direct telephonic communication between Irigoyen6 and Mr. Jesse Jones,7 the Export-Import Bank has agreed to extend [Page 467]a credit of $10,000,000 for the purchase by Argentina of merchandise in the United States. The credit will be extended to the Banco de la Nación and is to be guaranteed by the Argentine Government. It will bear 3.6 percent interest and have a term of 3 years, amortization to begin after 1 year. The Export-Import Bank has indicated that it is prepared to extend an additional amount of $10,000,000 of credits if Argentina needs the funds and if the Export-Import Bank has them available. You will recall that under existing legislation the outstanding credits of the Export-Import Bank are limited to $200,000,000, and that new credits extended after the first of 1940 may amount to only $20,000,000 in any one country.
Mr. Jones will also inform Irigoyen, by telephone, that the Export-Import Bank is prepared to extend credits in connection with the Ambursen Dam project, as a part of the additional $10,000,000, if the Argentine Government so requests. The terms on such a credit would probably involve a 4 percent rate of interest and 5-year term.
Please inform the Minister of Foreign Affairs that the United States Government is delighted to be able thus to cooperate with the Argentine Government at this critical point in the economic situation. At the same time indicate that the Department would prefer in the future that such discussions take place through the regular diplomatic channels.