163. Editorial Note
In a letter to C. Dillon Glendinning, Secretary of the National Advisory Council on International Monetary and Financial Problems (NAC), dated March 19, Sidney Sherwood, Secretary of the Export-Import Bank, noted that the Bank was considering an application of August Thyssen-Huette, A.G., of Duisburg-Hamborn, Germany, for a credit of $10 million to finance the purchase in the United States of a steel mill and electrical equipment. “The Bank” he wrote, “would appreciate being advised by the National Advisory Council as to whether it perceives any objection to consideration of this proposed credit by the Bank.” (NAC Document No. 1917; Department of State, NAC Files: Lot 60 D 137, Documents)
[Page 420]A draft memorandum from Corbett to Prochnow of April 13, cleared with ITR, GER, and RA, offered the following recommendation:
“The Department should state the position that because of the problems raised by Thyssen’s participation in the steel export cartel the granting of the loan would be contrary to general U.S. policy and that there appear to be no overriding considerations requiring that the loan be made. Attention might be called to the Dodge Council interest in and concern about the CSC steel export cartel. Further, the granting of the loan would embarrass and prejudice further approaches by the U.S. to the High Authority with respect to the steel export cartel. Finally, this loan cannot be considered in isolation for there may be requests for loans from other CSC steel producers, all of whom are participating in the steel export cartel.
“The Department would be prepared to reconsider the loan if Thyssen withdraws from the steel export cartel.” (Ibid., Central Files, 850.33/4–1356)
Corbett did not forward this memorandum to Prochnow, however; instead he forwarded a brief memorandum on April 19 which summarized the case for and against a loan to August Thyssen-Huette. The memorandum recommended as follows: “OFD believes all facts concerning cartel aspects should be laid on table at NAC and decision reached after hearing full discussion. It may also be desirable to consider referring to Dodge Council if strong sentiment develops favoring loan.” (Ibid., 850.33/4–1956)
The NAC considered the loan request at a meeting of April 20; the minutes of the meeting are printed as Document 167.