896.51/12–2646: Telegram
The Secretary of State to the Ambassador in the Philippines (McNutt)
914. Embtel 1003 Dec 26. Dept not familiar with text of explanatory statement referred to. Only statement here is press release drafted but not released by RFC at time draft loan agreement presented to Gamboa and Baretto Phil Embassy. Text of this statement follows:
“The Reconstruction Finance Corporation today announced that it had approved a $25 million loan to the Republic of the Philippines. The loan is a part of a credit of $75 million which the Reconstruction Finance Corporation was authorized by Congress by the Act of August 7, 1946 to extend to the Philippine Government to aid the new Republic during the current period of adjustment to its new status as an independent nation. As a result of the war the Philippines suffered widespread property damage and great dislocation of their economy so that its current tax revenues have been adversely affected while its financial needs have been greatly increased. The loan will mature June 30, 1950 and there is an interest rate of 2 percent per annum. The amount to be loaned at this time as well as the terms and conditions of the loan were determined in accordance with recommendations of the National Advisory Council on International Monetary and Financial Problems.”
Dept and RFC see no objection release this statement simultaneously here and Manila coincident with signature RFC loan agreement. Advise Dept when signature will take place.