811.516 Export-Import Bank/7–147: Telegram
The Secretary of State to the Ambassador in China (Stuart)
818. Following statement released to press June 27 by Eximbank:
“William McChesney Martin, Jr., Chairman of the Board of Directors of the Export-Import Bank of Washington, stated today that the Bank is prepared to consider the extension of credits for specific projects in China notwithstanding the expiration on June 30 of the earmarking of $500 million of the Bank’s funds in April 1946 for possible further credits to Chinese Government agencies and private enterprises.
“The Bank has heretofore taken action to bring to an end its program of large emergency reconstruction credits and is reverting to its primary objective of financing and facilitating specific Amer. exports and imports, including the financing of Amer. equipment and technical services for productive enterprises abroad which will contribute generally to foreign trade expansion.
“In its consideration of any application, the Bank will observe the basic principles which guide its lending activities in all areas of the world. In pursuance of the policy laid down by Congress, the Bank will make only loans which serve to promote the export and import trade of the United States, which do not compete with private capital but rather supplement and encourage it, which are for specific purposes, and which, in the judgment of the Board of Directors, offer reasonable assurance of repayment. As a general rule, the Bank extends credit only to finance purchases of materials and equipment produced or manufactured in the United States and technical services of American firms and individuals, as distinguished from outlays for materials and labor in the borrowing country.”
Sent to Nanking, rptd to Shanghai as no. 1092 and to Tientsin as no. 110.