231. Memorandum From the Under Secretary of State (Hoover) to the Assistant to the President (Adams)1

SUBJECT

  • Export-Import Bank Credits for the Last Six Months of 1956

I understand that the Export-Import Bank has been asked to determine how their activities may affect the business outlook for the remainder of the year. Policy decisions by the Department of State quite naturally affect the Bank’s operations. In general, the Department has supported a more active Export-Import Bank both in the interests of our foreign policy and the American business community.

There is one instance which I believe may be brought to your attention where there is an exception to this general rule, again for foreign policy reasons. We have thought that some delay—a slow down—in credits to the Government of Mexico would have a beneficial effect upon our efforts to obtain an aviation agreement with Mexico. The leverage we can exert in this matter is limited and [Page 731]we want to make the best use of the tools at our disposal. We have asked the Bank to cooperate with us in this endeavor. We have already detected some signs of progress towards the agreement and believe that the Bank’s natural desire to make more loans will not be seriously or long impeded by this exception to general policy. On the other hand, the aviation agreement when obtained will have many beneficial results outweighing considerably, we believe, the temporary disadvantage.

Herbert Hoover, Jr.
  1. Source: Department of State, Central Files, 103–XMB/7–1356. Secret.