96. Memorandum From the Director of the International Cooperation Administration (Hollister) to the Acting Assistant Secretary of State for Inter-American Affairs (Rubottom)1
SUBJECT
- Smathers Fund
I have read with interest Mr. Holland’s memorandum of September 13 regarding the management of the so-called “Smathers Fund” which was, for some reason, not received in ICA until late on September 25.
I agree with his suggestions that the management of this portion of the appropriation should be the responsibility of ICA. However, I do not see any particular reason to limit the number of projects to “two or three” as he suggests.
Of course I agree that the projects should be in accord with the legislation, but I am afraid I can’t agree that they should be limited to “the kind that the Export-Import Bank is now financing” as this would preclude the consideration of most projects to which the legislation specifically indicates preference should be given.
With regard to paragraph (2) of the memorandum, consultation with the Export-Import Bank has been a regular part of the procedure followed in operating our program in Latin America for the last year and has proved to be extremely valuable.
With regard to paragraph (3) of the memorandum, we shall, of course, use the machinery of the Export-Import Bank for loans of these funds as we do now with respect to all other loans.
- Source: Washington National Records Center, ICA Director’s Files, FRC 61 A 32, Box 309, Latin America. Official Use Only.↩