The Secretary of the Treasury (Humphrey) to the Secretary of
Washington, January 7, 1954.
Dear Foster: In view of the fact that Senator
Capehart1 is starting hearings on the activities of the
Export-Import Bank next week, it seems to me wise for the National Advisory
Council to have an agreed position on the Export-Import Bank along the line
that we have previously discussed.
We ought therefore, I believe, to have an early meeting of the Council, and
for your consideration I submit herewith a draft resolution on which I
should be glad to have your comments.
I recognize that this does not fully cover the question of political loans
which cannot be worked out to meet the test of reasonable assurance of
repayment. That is a matter we can discuss further at the meeting. Our
suggestion here is that for the present we should continue to use the FOA organization and funds for that purpose and
submit to Congress any cases that seem more appropriate, as we did with the
grain loans to Pakistan and India.
[Washington,] January 7, 1954.
Action for Consideration of the
National Advisory Council on International Monetary and Financial
- The Black–Edgerton statement relative to coordination of
activities of the Export-Import Bank and the International Bank is
approved in principle. (Statement attached)
- It is the policy of this Government that the Government has no
right to exact by taxation from one citizen funds for loans to
another citizen for long term development of competitive enterprise.
All loans of the Export-Import Bank should be short or medium term
in duration, except in unusual cases such as referred to in
Paragraph 2 in the attached statement, or in other very exceptional
circumstances, and in these cases should be in harmony with the
[Washington,] September 24, 1953.
Statement of Principles Governing
the United States Position in Respect to Loans by the Export-Import
Bank of Washington and the International Bank for Reconstruction and
(Draft by Messrs. Edgerton and Black)
- The International Bank should be the normal source of loans for
development projects involving direct financial obligations of a
member government or governmental agency or its guarantee of the
obligations of other borrowers.
- The Export-Import Bank should not make loans within the purview of
the International Bank, except in special cases, such as those in
which important interests of the United States warrant departure
from the general principle, or an additional credit is required to
continue the project initially financed by the Export-Import Bank,
or a loan is for the development of strategic material for
importation into the United States.
- Loans to private United States businesses or their affiliates,
without governmental guarantee, may be considered by the
Export-Import Bank on their merits.
- United States exporter credits in member countries, at the
instance of United States suppliers, involving orders for purchase
of United States equipment, may be considered by the Export-Import
Bank on their merits if they are for such transactions as would not
fit into the normal pattern of International Bank project lending.
In view of the revolving nature of Export-Import Bank funds, these
credits normally should be of short-to-medium-term.
- Commodity loans to finance the export of United States
commodities, short-term in nature, may be considered by the
Export-Import Bank on their merits.
- Loans by the Export-Import Bank in countries which are members of
the International Bank should be coordinated with the International
Bank’s lending program by consultation between the two Banks, and
due weight should be given to whether such loans may endanger the
repayment of loans made by the International Bank, unduly limit its
future lending in the member country or run counter to governmental
programs or priorities on which that Bank is planning its lending
- Loans in countries not members of the International Bank, whether
governmental or private, may be considered by the Export-Import Bank
on their merits.