893.51/8–945: Telegram
The Secretary of State to the Ambassador in China (Hurley)
1336. For the Embassy’s information in connection with Emtel 1313, August 9, 1 p.m., under the 1945 Act27 lending operations of the Export-Import Bank are “for the purpose of aiding in the financing and facilitating of exports and imports and the exchange of commodities between the United States or any of its territories or insular possessions and any foreign country or the agencies or nationals thereof”. The Department understands Eximbank does not make lump sum loans for use as borrower sees fit, although it might grant a line of credit to be availed of from time to time for specific projects approved individually by the Bank. Even with recent increase, funds available to Eximbank are entirely inadequate to meet world financial requirements for reconstruction and development. Therefore the amount that may presently be available for China will in any event probably be less than her needs.
For your information the Department understands that the Eximbank ordinarily requires foreign applicants other than governments to obtain the support of their government before negotiating a credit and that it also usually requires a guarantee of a foreign bank or government as a condition of non-recourse credits extended to United States exporters. This requirement of course facilitates foreign government control even where the foreign government does not exercise domination over private enterprise by virtue of its own laws.
[Page 1136]The Department appreciates such information as your telegram contains and will endeavor to keep you advised of developments if this general question should be discussed with T. V. Soong here.
- Approved July 31, 1945; 59 Stat. 526.↩