825.51/12–1046

Memorandum by Mr. Alexander Schnee of the Division of North and West Coast Affairs 31

secret

In a conversation with a key Export-Import Bank officer at lunch today it was gratifying to learn that there is substantial support in the Eximbank for the positions advocated by ARA with respect to various economic policy questions.

(1) Future Loans to Chile

The previous decision of the NAC notwithstanding, the Eximbank is of the opinion that Chile has absorbed all of the dollar credits that country is capable of financing.

(2) Policy Statement of the Foreign Investment Policy Sub-Committee of the ECEFP (Executive Committee on Economic Foreign Policy)

The activities of this Committee have been terminated, at least temporarily, because of the fact that the Eximbank—and the Department representatives too, I am informed—considered the efforts of this Sub-Committee excessively academic, unrealistic and lacking a proper conception of the need for protecting basic American interests.

(3) Nationalization

The Eximbank follows the policy of combatting nationalization wherever it believes that the United States efforts in this direction have a good chance of being successful. Thus, while the Eximbank exerts very little, if any, effort in this direction, in considering the problems in Eastern Europe, in other areas of the world, and particularly in [Page 620] China, the Bank has repeatedly and consistently withheld loans on the ground that the specific project under consideration is more properly a subject of private enterprise.

The Bank is of the opinion that written policy statements in this regard will prove to be unduly restrictive and will deprive the United States Government of freedom of action to meet problems under circumstances which are not presently foreseeable.

  1. Addressed to NWC: Mr. Wells; ARA: Messrs. Trueblood and Briggs; and A-Br: Messrs. Smith and Braden.