Foreign Relations of the United States, 1946, Eastern Europe, The Soviet Union, Volume VI

894.515/5–1446

Memorandum of Conversation, by the Acting Secretary of State¹⁷

[Extract]

[Washington,] May 14, 1946.

. . . . . . . . . . . . . .

Mr. Novikov then brought up the question of news reports to the effect that the United States Government was no longer earmarking a billion dollars for the possible credit to the Soviet Government. He asked me whether this was correct. I explained that at the time the capital of the Export-Import Bank was increased last year¹⁸ Mr. Crowley had indicated that it was possible that a billion dollars of the $3,500,000,000 capital of the Bank might be used for a credit to the Soviet Government but that this sum was not specifically set aside for this purpose since the Bank did not set aside sums until after the completion of concrete negotiations regarding credits.

I then explained that during the past few months several credit negotiations have been completed which depleted the capital available in the bank so that at the present time there was not actually a billion dollars available for further credits. I added, however, that the President had asked the Congress for $1,250,000,000 additional capital for the bank, which it is anticipated would be approved by the Congress before its adjournment this year and that there would then be a billion dollars available in the event that the projected negotiations with the Soviet Government should bring about an agreement regarding the granting of a billion dollar credit.¹⁹

Dean Acheson

[At intervals during 1946, discussions arose about intentions to increase the lending authority of the Export-Import Bank, and whether any part of this might be used for a loan to the Soviet Union. In his special message to Congress on March 1 transmitting a Report of February 21 on foreign loan policy prepared by the National Advisory Council on International Monetary and Financial Problems, wherein it had been stated that the Export-Import Bank would require additional lending authority of $1,250,000,000 during the next fiscal year, President Truman declared: “I endorse this conclusion and at a later date I will discuss further with the Congress the need of appropriate legislation.”²⁰

During the President’s news conference of June 14, he was reminded of this statement and was asked whether he still planned to recommend this increase in the lending authority of the Bank to the present session of Congress. President Truman replied: “I have not yet got to the point where I can consider that.”²¹

This subject was raised again in greater detail in the President’s news conference on July 18. The President was asked whether he had any plans for asking Congress for more funds for foreign loans, and he answered that “I have no such intention.” Then the following exchange took place:

“Q. Mr. President, in saying you have no such intention for asking for more money for loans, does that mean you do not intend to ask for the one and a quarter billion more capital for that Export-Import Bank, that has been mentioned in the past?

The President. No. I think that will come up in the next Congress automatically.

Q. Specifically there is no plan at all for an early request for a loan to Russia?

The President. Not that I know of. I haven’t heard about it.”²²

Once more at the news conference on the review of the 1947 budget held on August 2, President Truman was asked whether the figure of $1,250,000,000 was included that he said he would ask Congress for at a later date. The President replied that this figure was “not included, because it was not asked for.” Shortly afterwards the question was asked whether the President expected “to ask the next Congress for the billion and a quarter for the Export-Import Bank?” To this President Truman answered: “We’ll see what the situation—how the situation develops, and if it’s necessary, I will ask for it, and if it isn’t, I won’t.”²³

There were no further developments during 1946.]

17. Elbridge Durbrow, Chief of the Division of Eastern European Affairs, was present at the conversation and drafted the memorandum.
18. The Export-Import Bank Act, approved July 31, 1945, 59 Stat. 526, provided for increasing the lending authority of the Bank. Section 4 stated that it “shaft have a capital stock of $1,000,000,000 subscribed by the United States.” Section 7 placed a limitation on outstanding loans and guarantees by specifying that the Bank “shall not have outstanding at any one time loans and guaranties in an aggregate amount in excess of three and one-half times the authorized capital stock of the Bank.”
19. See bracketed note, infra.
20. Public Papers of the Presidents: Harry S. Truman, 1946 (Washington, Government Printing Office, 1962), p. 138.
21. Ibid., p. 301.
22. Public Papers of the Presidents: Harry S. Truman, 1946 (Washington, Government Printing Office, 1962), p. 351.
23. Ibid., pp. 381, 382–383.