Office of the Historian

AF files, lot 58 D 459, “Memoranda 1953”

Memorandum by Douglas B. Smith of the Investment and Economic Development Staff to the Officer in Charge of West, Central, and East Africa Affairs (Feld)

restricted
[Washington,] May 27, 1953.

Subject:

  • Status of Eximbank Loan in Africa South of the Sahara

The status of loans as of April 30, 1953, were [was] as follows:

Regular Eximbank Loans: $4 million loan to Liberia Mining Company for iron ore production authorized 4/27/49. The entire amount has been disbursed. Principal repaid $600,000. Interest paid thus far $418,205.

$5 million loan to the Republic of Liberia for highway construction authorized 1/11/51. Amount disbursed $400,000. Nothing has been repaid on the principal but $3,049 in interest has been collected. $1,350,000 to the Republic of Liberia for water supply and sewerage system authorized 6/14/51. Amount disbursed $817,000. No repayment of principal thus far although $11,356 has been repaid in interest to the bank.1

$17 million loan to Republic of Portugal for the construction of the Pafuri railway link2 authorized 8/28/52. As yet no funds have been disbursed. $867,000 loan to the Republic of Portugal for port handling facilities at Lobito authorized 8/28/52. As yet no funds have been disbursed under this loan.

$300,000 loan to Charles B. McDaniel for port facilities at Cabinda3 authorized 3/6/42. $65,000 of this loan has been disbursed while $235,000 was cancelled. $33,495 of the principal has been repaid leaving $31,505 outstanding. Interest collected thus far is $12,704.

DMPA Certified Loans: $7,500,000 loan to the Kilembe Mines Ltd. for the production of copper and cobalt authorized 8/21/52. As yet no loan agreement has been signed and it appears likely that this credit will be cancelled. $21 million loan to the Baluba Mines Ltd. for the production of copper and cobalt authorized 9/18/52. This credit was cancelled 4/24/53 at the request of the mining company. $22,400,000 loan to Northern Rhodesia Power Ltd. for the expansion of facilities authorized 1/8/53. As yet no funds have been disbursed.

  1. For documentation regarding the conclusion of the loans cited in this paragraph, see Foreign Relations, 1951, vol. v, pp. 1274 ff.↩
  2. In Portuguese East Africa—Mozambique.↩
  3. In Portuguese West Africa—Angola.↩