821.51/6–446
Memorandum by Mr. Albert H. Gerberich of the Division of North and West Coast Affairs to the Assistant Secretary of State for American Republic Affairs (Braden)
secret
[Washington,] June 4, 1946.
ED is not favorable to extending additional credits to Colombia for four reasons:
- 1.
- There is considerable objection to doing so in certain quarters because of the defaulted municipal and departmental bonds.
- 2.
- The Eximbank finances are now at their lowest ebb. Including outstanding loans, commitments, and possible commitments, the Exim-bank’s available funds on May 15 were down to $32,000,000. It has pending requests for credits totaling $223,000,000, almost all from Latin America, and cannot consider these for lack of funds. Brazil alone is after loans totaling $400,000,000.
- 3.
- Colombia has gold holdings totaling $127,000,000 and foreign exchange amounting to about $50,000,000. She could use some of this gold and foreign exchange instead of asking for loans from us. Colombia has, in addition, $47,000,000 in gold in the United States and a $48,000,000 dollar-balance in this country.
- 4.
- Colombia has not yet signed up with the World Bank. If she would do so, she could obtain assistance there.
While ED is not averse to helping Colombia to a reasonable extent and considers Colombia a pretty good credit risk, it feels, in view of the above, that no big credits should be given and no commitments made at this time.
There is attached a statement of Loans and Commitments66 of the Export-Import Bank, showing the situation as of May 15, 1946.
- Not printed.↩