811.516 Export-Import Bank/7–945

Memorandum by the Director of the Office of Financial and Development Policy ( Collado ) to the Under Secretary of State ( Acheson )

Subject: Proposed Use of Export-Import Bank Funds.

1. In connection with the scheduled hearings on the expansion of the Export-Import Bank, there follows a summary statement of the type of operations which may be anticipated in the next twelve months:9

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millions of dollars
U.S.S.R.—(1st credit) 1000
Transfer from 3–C agreement10
France, Belgium, Netherlands 300 – 400 (or more)
Latin America 150 – 250
European reconstruction 1250 – 1500
Of which: Poland urgent
Italy—100 – 150
Greece—50 –100
Other—Saudi Arabia, Turkey, China, etc. 100 – 150
Total 2800 – 3300

2. The bill would give the Bank about $3 billion of new lending authority.

3. The 10-year program contemplates:

billions of dollars
Private Investment 10 – 11
Bretton Woods Bank 9
Export-Import Bank 6 – 10
Total 25 – 30

4. More Export-Import Bank funds will be needed to fill out 1946 and thereafter—and especially before the Bretton Woods Bank is operating. Probably a further billion or even two will be needed for U.S.S.R., and any British credits will require additional legislation. Further funds will be needed for European and Chinese reconstruction and development in Latin America and elsewhere.

5. A summary of the longer-term program is included in the tables I have given you. Messrs. Phelps and Young can furnish any further details.

  1. Regarding the histories of the individual credits proposed for the countries herein named, reference should be made as appropriate to other Foreign Relations volumes where the more strictly bilateral aspects are documented; the frame of reference here is limited to general policy.
  2. The so-called 3(c) agreements (name taken from the relevant section of the Lend-Lease Act of 1941 as amended) provided for a continued flow of industrial equipment and supplies to certain European countries after the end of the war in Europe although use of such materials was no longer related to the defense of the United States. Funds were still to be provided out of monies appropriated for Lend-Lease purposes. Repayment would be over a 30-year period at an interest rate of 2⅜ percent per annum. As of this date 3(c) agreements had been concluded with France, Belgium, and the Netherlands.