Office of the Historian

837.51 Cooperation Program/109: Telegram

The Acting Secretary of State to the Ambassador in Cuba (Messersmith)

Washington, July 1, 1941—8 p.m.

168. Your despatch no. 2266 of June 27, 1941 and personal letters to the Under Secretary, Bonsal and Pierson. The Department and the Export-Import Bank do not believe that any confidential notes regarding the period of amortization are desirable. The Department has consequently recommended that the Export-Import Bank fix a definite period, and the Executive Committee of the Export-Import Bank today approved the acceptance of notes payable 15 years from the date of each advance, to be amortized 5 percent annually for 10 years and 10 percent annually for the succeeding 5 years. The Bank will endeavor to work out a formula to provide for an average maturity date which will result in giving Cuba a total of some 17 to 18 years from the inception of the credit to liquidate it. The Export-Import Bank finds it impracticable to extend a straight 20–year credit.

Please inform the appropriate Cuban authorities.

Welles