95. Memorandum From the Director of the International Cooperation Administration (Hollister) to the Under Secretary of State (Hoover)1
SUBJECT
- “Smathers’ Amendment” Fund
I believe some early decision should be made with respect to so-called “Smathers’ Amendment” funds. There are two matters at issue:
- 1.
-
The question of administration. I know it is your preference that the Export-Import Bank handle these funds, probably applying somewhat different criteria to that part of the funds disbursed on a loan basis, than those criteria which the Export-Import Bank usually follows in making its loans. I now understand that Sam Waugh objects to taking over these funds and he tells me he has George Humphrey’s backing, although I have not talked to George about it.
While I am inclined to think that the Congressional history indicates that the administration of these funds should be a responsibility of ICA, I have no objection to turning it over to the Export-Import Bank if that is your wish and they will take it. The question ought to be settled however.
- 2.
- The expenditure estimates for fiscal years 1957, 1958, and 1959 which have been filed with the NSC in connection with the statement of United States policy toward Latin America make no allowance for these Smathers’ funds. If they are to be obligated this year they will, to the extent so obligated, be spent in 1958 and 1959, and will therefore increase the expenditure figures in the appropriate year unless reductions are made in the currently planned country programs for Guatemala and Bolivia.
- Source: Washington National Records Center, ICA Director’s Files, FRC 61 A 32, Box 309, Latin America.↩