825.51/11–2746
Memorandum of Conversation, by Mr. Phil R. Atterberry of the Division of Investment and Economic Development
This is a summary of conversations yesterday afternoon and this morning had with Mr. Schnee (NWC) at his request.
Chilean Loan Application to International Bank. In reply to his question, I informed Mr. Schnee it was my understanding that the Chilean request for a $40 million International Bank credit has, in preliminary considerations, been reduced to $30 million because the Bank’s lending capacity during the next 12 months is limited by the fund’s available to it. Consequently, the amount of credit requested by each applicant is expected to be somewhat reduced.
Chile’s over-all public debt to U.S. I suggested that Mr. Corliss26 (FN) should be consulted. As for Eximbank commitments as of September 30, 1946, total commitments aggregated $66 million; that another commitment of $10.350 million had been approved by the Bank’s Board of Directors last month. Of this sum, $5 million was for Railways and $5.350 million for the Fomento Corporation as follows: power development $800,000; agricultural machinery $3.2 million; [Page 616] equipment for copper wire plant $800,000; equipment for cement plant $550,000. I also observed that according to an NAC document of September, 1946, Chile had no obligations outstanding to the Maritime Commission, War Assets Administration or Reconstruction Finance Corporation. Mr. Schnee said that he understood Chile now owes the Maritime Commission about $2 million.
Chilean Steel Mill Capacity. Mr. Schnee said he had information that when completed, the steel mill would have a capacity of 300,000 tons. The original loan application, he thought, called for a capacity justified at 180,000 tons. He questioned these capacity figures and observed that the larger figure would permit Chile to export steel. This eventuality, he said, probably would bring about unfavorable reactions in the U.S. I remarked that I had not participated in this steel mill case and thus, did not know the details of the application. I told him that Mr. Stenger had referred to a final capacity figure of 160,000 to 200,000 tons. This he felt was an incorrect figure.
- James C. Corliss, Assistant Chief of the Division of Financial Affairs.↩