Editorial Note
On April 12, 1951, the Board of Directors of the Export-Import Bank had authorized a credit of $1,875,000 to the Mexican Gulf Sulphur Company, a Delaware corporation which owned all of the capital stock of the Mexican Sulphur Company, S. A., a Mexican firm holding concessions to properties on the Isthmus of Tehuantepec reported to contain proven sulphur reserves, to finance the purchase of machinery [Page 1478] and equipment in the United States for the construction and operation of a new plant to produce elemental sulphur. (Export-Import Bank of Washington, Twelfth Semiannual Report to Congress, pages 9–11) The approval of the loan request had been preceded by considerable internal discussion, primarily because the extent of the sulphur deposits could not be definitively determined until after the operation had begun, and because sulphur was under Mexican export control. Pertinent documents are in decimal file 103–XMB and Department of State NAC Files, Lot 60 D137.
On May 31, the Board of Directors of the Bank had approved the application of Nacional Financiera on behalf of the Altos Hornos de Mexico, S. A., a steel company located at Monclava, for a credit of $5,000,000 also under the $150,000,000 line of credit, in order to finance plant expansion for the increase of steel production. (Export-Import Bank of Washington, Twelfth Semiannual Report to Congress, pages 16, 18–19)
On August 2, the Board of Directors of the Export-Import Bank approved the application of Nacional Financiera, S. A., on behalf of “the National Railways of Mexico and the Ferrocarril Mexicano, for two credits amounting to $56,000,000 under the $150,000,000 line of credit which had been authorized by the Bank on August 31, 1950, to finance the purchase of material, supplies, and equipment in the United States for the rehabilitation of the two railroad systems. The National Railways was to receive $51,000,000 and the Ferrocarril Mexicano was to receive $5,000,000. (103–XMB/8–851) For a press release issued by the Export-Import Bank pertaining to the loan, see Department of State Bulletin, September 24, 1951, page 499.