The American Ambassador in Cuba (Norweb) to the Cuban Minister of State (Alvarez)3
Excellency: I have the honor again to refer to Your Excellency’s courteous note no. 335 of March 26, 1946,4 requesting the Embassy to obtain, if possible, the approval of the Export-Import Bank with respect to an increase in the revolving fund, established under the $25,000,000 credit, to $8,000,000, which amount it is estimated will remain unexpended on June 30, 1946, the expiration date fixed by Cuban Law no. 31 of November 22, 1941, for advances to the Cuban Government under the credit.
In this connection I am enclosing a letter dated May 7, 1946,4 addressed to Ingeniero Angel San Martín, President of the Comisión de [Page 767] Fomento Nacional, by Mr. William McC. Martin, Jr., Chairman of the Export-Import Bank, explaining that the Board of Directors of the Bank was unable to approve the utilization of the unexpended funds under the credit on hand on June 30, 1946, in the manner suggested by Your Excellency’s Government as it was felt that their utilization would have to conform to the procedure established in the original loan agreement. This procedure has been followed by the Export-Import Bank in all of its credits of this nature.
Your Excellency will doubtless be gratified to learn, however, that the Bank voluntarily and on its own initiative passed a resolution on April 24, 1946, extending the expiry date of the credit for a period of two years from June 30, 1946, to June 30, 1948, although it will, of course, be necessary for the Cuban Congress to supplement the Bank’s action by passing the appropriate enabling legislation.
The Bank expresses the hope, which I share, that the necessary action in this respect will be taken by the Cuban Congress so that the Comisión de Fomento Nacional may be able to use the remaining unexpended funds of the credit for the completion of the several public works projects for which those funds are intended.5
Please accept [etc.]
- Copy transmitted to the Department in despatch 1598, May 17, 1946; received May 21.↩
- Not printed.↩
- Not printed.↩
- In despatch 1685, June 5, 1946, Ambassador Norweb reported that the day after President Grau received information as to the inability of the Bank to increase the revolving fund and the Bank’s offer to extend for 2 years from June 30, 1946, the terms of the credit, he sent a message to Congress requesting it to ratify the extension. Congress, however, adjourned on May 28, 1946> without having taken action on the President’s message. (837.51/6-546)↩