The Under Secretary of State ( Welles ) to the President of the Export-Import Bank ( Pierson )

My Dear Mr. Pierson: Reference is made to discussions between officers of the Department and officers of the Export-Import Bank regarding the desire of the Government of Uruguay to obtain a loan of $7,500,000 from the Export-Import Bank.

As you remember, the initial informal request of the Government of Uruguay called for a loan of $30,000,000 for a public works program, requiring large amounts of iron and steel and other materials in short supply in the United States. The Department informed the Government of Uruguay that it would be impossible to supply the necessary materials from the United States due to the exigencies of the war effort. The Government of Uruguay agreed to revise the public works program reducing the amount of the credit requested to $7,500,000 and stating that any requests for iron and steel or other scarce materials would be taken out of the over-all allocations of such products made to Uruguay.

The Department informed the Government of Uruguay that the Export-Import Bank would be pleased to consider such a request if formally submitted by the Government of Uruguay. Word has been received from Ambassador Dawson that the Foreign Minister of Uruguay will arrive in the United States about January 18 and that he has expressed a desire to conclude negotiations for this credit during his visit here, which will be of approximately five days duration.

In view of the leadership which the Uruguayan Government has displayed in connection with hemisphere matters and the great assistance which that country has rendered to the United States, the Department recommends that the Export-Import Bank be prepared to conclude an agreement with the Government of Uruguay for the extension of a credit of $7,500,000 during the Foreign Minister’s visit to this country. The Department feels that this agreement should give the Uruguayan Government sufficient latitude to use the funds for public works or other projects deemed desirable by that Government.

Sincerely yours,

Sumner Welles