238. Editorial Note
In a memorandum to Under Secretary Hoover dated October 4, Acting Assistant Secretary Rubottom wrote: “In our last discussion regarding US loan policy toward Mexico, you agreed that we would not attempt to exact the Pacific Railway loan conditions, as imposed by the World Bank on Mexico, as the sine qua non of the Export Import Bank loan to the National Railways.” Rubottom noted further: “At a meeting this morning with Mr. Waugh attended by Jack Corbett and myself, we discussed this problem again and the Bank officials explained clearly that Minister Carrillo Flores had stated to them that it would be impossible for the Pacific Railway conditions [Page 742] to be applied to the National Railways. Nevertheless, they expect to be able to negotiate reasonably satisfactory conditions with the National Railways which will be acceptable to Mexico.” (Department of State, Central Files, 912.712/10–456) Telegram 678 to Mexico City, October 4, reads in part: “At Departmental-Eximbank meeting today Eximbank indicated would give Tello notice of intention to approve National Railways loan. Before doing so however wished to let Department know that conditions recommended by Embassy could not in Bank’s judgment be applied to this loan.” (Ibid.)
Telegram 738 to Mexico City, October 12, informed the Embassy that the Export-Import Bank had approved the loan to the National Railways on October 11. (Ibid., 912.712/10–1256) In telegram 825 to Mexico City, October 22, 1956, the Department transmitted the text of a press release which stated that the Export-Import Bank had authorized credit of $23,260,000 to Mexico for rehabilitation of the National Railways. (Ibid., 912.712/10–2256) For text of this press release, see Department of State Bulletin, November 26, 1956, page 846.