Secretary’s Letters, lot 56 D 459, “Humphrey, G.”

The Secretary of the Treasury (Humphrey) to the Secretary of State

Dear Foster: Since writing you with respect to the activities of the Export-Import Bank and the International Bank, I have had a number of conferences concerning the most effective way of using the facilities of the Export-Import Bank. On the basis of these conversations we have revised the memorandum of suggested action for consideration of the NAC, and I enclose herewith a revised draft of it.

I think on this basis of using guaranties, along with a fair equity participation by the borrower, that the Bank can go a good deal further than the first memorandum1 would seem to suggest, and I think we can use the facilities of the Bank without the need for any legislation.

Sincerely yours,

George M. Humphrey


Action for Consideration of the National Advisory Council on International Monetary and Financial Problems

The Black–Edgerton statement relative to coordination of activities of the Export-Import Bank and the International Bank is approved in principle. (Statement attached2)
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.

Therefore, the Export-Import Bank should use its own funds, which come from taxpayers, as a lever to put to use other money. That means using them for short-term turnover use and for the insurance and guaranty of longer term financing which may qualify under the Black–Edgerton statement.

[Page 358]

To do this safely requires that applicants for Export-Import Bank guaranties shall have fair amounts of their own money at risk and pay fees adequate for reserve and insurance for losses.3

  1. Reference is to the memorandum dated Jan. 7, 1954, printed as attachment 1 to Secretary Humphrey’s letter of same date, supra .
  2. No attachment was found with the source text; the reference statement is printed as attachment 2 to Secretary Humphrey’s letter of Jan. 7, 1954, supra .
  3. In a letter to Secretary Humphrey, dated Jan. 15, 1954, Secretary Dulles stated that he could not fully concur in this revised draft memorandum, and that since he was soon to depart for Berlin to attend the Foreign Ministers meeting, he had asked Under Secretary Smith to represent the Department of State in a meeting of the interested parties to reach a consensus before the matter was referred to the NAC for final determination. (Secretary’s Letters, lot 56 D 459, “Humphrey, G.”) No record of such a meeting was found, however, in Department of State files.