811.516 Export-Import Bank/6–2844
Memorandum by the Chief of the Division of Financial and Monetary Affairs ( Collado ) to the Assistant Secretary of State ( Acheson )
Mr. Acheson: The proposed reconstruction of the municipal waterworks in Habana has been pending for approximately six years. [Page 981] After considerable discussion a tentative line of credit in the amount of $15,000,000 was earmarked by the Export-Import Bank for this purpose. Arrangements were going forward with engineering and other plans, when the Bank informed Senators Byrd and Tydings that it would step aside in favor of private interests, (the Canadian American Company) which the Senators said were ready to do the job.
For almost a year now a Mr. John Beck of the Canadian American Company (CAC) has been negotiating with the Cubans. No contract has yet been signed. The Bank has not cancelled its line of credit in order to avoid any criticism regarding breach of faith. The Bank’s position is clear, i.e., it is quite willing to stay out if private interests come to an agreement with the Cubans.
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