Office of the Historian

98. Memorandum of a Conversation, Washington, October 30, 19561

Washington, October 30, 1956

SUBJECT

  • Administration of Smathers’ Amendment Fund

PARTICIPANTS

  • Mr. Waugh, President, Export-Import Bank
  • Mr. Blowers, Director, Export-Import Bank
  • Mr. Overby, Treasury Department
  • Mr. Willis, Treasury Department
  • Mr. Atwood, International Cooperation Adm.
  • Mr. Rubottom, Dept. of State (ARA)
  • Mr. Prochnow, Dept. of State (E)
  • Mr. Kalijarvi, Dept. of State (E)
  • Mr. Corbett, Dept. of State (E)

Mr. Rubottom reviewed the history of Executive Branch discussions on the administration of the Smathers’ Fund. Other members of the group also added relevant pieces of the history of the subject. Mr. Rubottom then stated that the Department’s position was that this Fund should be administered by the Export-Import Bank in the same manner and under the same criteria as it handles its own funds.

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Mr. Waugh then expressed the view of the Export-Import Bank to the effect that the Bank did not wish to be responsible for the management and administration of this Fund. He cited a number of reasons in support of this view.

Mr. Prochnow and Mr. Rubottom summarized the discussion by saying if the Bank was unwilling to take on this responsibility or some variation of it (as suggested by Mr. Holland to Mr. Hollister in September) then it was quite evident that the Fund would have to be administered by the International Cooperation Administration with the Export-Import Bank acting as agent for ICA as it does in the case of other loans made by the latter agency. This decision was taken by the group as it was agreed that all interested agencies would be notified by a copy of the memorandum of the meeting.

It was also agreed that the group would not now decide upon the terms, conditions and projects to be financed by loans from this Fund. These subjects would be dealt with by the agencies concerned, namely State and ICA and by the NAC with respect to the financial aspects.

Mr. Waugh offered the cooperation and assistance of the Bank to the ICA in the carrying out of its responsibilities under this amendment.

  1. Source: Department of State, Central Files, 700.5–MSP/10–3056. Official Use Only. Drafted by Corbett.↩