A memorandum from Wilfred Malenbaum, Investment and Economic Development Staff, to John E. O’Gara, Office of the Assistant Secretary of State for Economic Affairs, dated April 25, not printed, reported the Export-Import Bank would review its policy on the extension of credits to Saudi Arabia on April 26. He recommended that the Department press the Bank to approve as many of the proposed projects as practicable, since it was the opinion of the Bureau of Near Eastern, South Asian, and African Affairs that disapproval of all or a large part of the Saudi Arabian application would have a deleterious effect on United States relations with Saudi Arabia. (103–XMB/4–2550)
The Saudi Arabian application was considered by the Board of Directors of the Export-Import Bank on April 26, June 22, June 29, July 6, and July 13, but a decision was deferred, pending action by the National Advisory Council. A memorandum by Jerome J. Stenger, Office of Financial and Development Policy, Investment and Economic Development Staff, to Leroy Stinebower, dated July 18, not printed, reported that the National Advisory Council staff committee had approved Export-Import Bank consideration of the Saudi Arabian application. The National Advisory Council advised the [Page 1182] Export-Import Bank on July 21 that, through a telephone poll completed that day, it unanimously approved consideration by the Bank of applications by Saudi Arabia for credits up to $15 million to finance specific projects which the Bank found economically sound. On July 20 the Export-Import Bank approved a credit of $15 million for the Saudi Arabian Government. Information on the loan is in Department of State files 103–XMB and NAC Files, Lot 60D137, a master file of the documents of the National Advisory Council on International Monetary and Financial Problems for the years 1945–1958, as maintained by the Bureau of Economic Affairs of the Department of State.