818.51/884: Telegram

The Secretary of State to the Minister in Costa Rica ( Hornibrook )

97. Your 118, September 25, 10 a.m.1 Following press release was given out last night by Federal Loan Agency.

“Jesse Jones, Federal Loan Administrator, announced today the Export-Import Bank has authorized a loan to the Government of Costa Rica of 4,600,000 dollars for the construction of a section of the Pan American highway extending from San José to the Panama border, where it will connect with the Panamanian road south to the Canal.

“The loan will be at 4 per cent interest, maturing over a period of 10 years and will be guaranteed by the National Bank of Costa Rica and repaid from the proceeds of the gasoline tax. Approximately 60 per cent of the proceeds of the loan will be used for the purchase of equipment in the United States.

“It will require approximately 4 years to complete the road, and its construction will be especially helpful to Costa Rica in meeting its unemployment situation due to drastic curtailment of its coffee export market. The United States Public Roads Administration will lend the Costa Rican Government engineers to supervise and assist in the construction of the road.

“The loan was negotiated by Dr. Luis Anderson of Costa Rica, assisted by Señor Pena, President of the National Bank of Costa Rica, and Señor Matamoros, technical adviser.”

Please forward by air mail any press comment on this loan.

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