Foreign Relations of the United States, 1955–1957, Foreign Economic Policy; Foreign Information Program, Volume IX

111. Minutes of the 446th Meeting of the Staff Committee of the National Advisory Council on International Monetary and Financial Problems¹

Washington , May 10, 1955

• Mr. C. Dillon Glendinning (Chairman), Treasury Department
• Mr. Jack C. Corbett, State Department
  • Mr. Howard L. Parsons
• Mr. Clarence I. Blau, Commerce Department
• Mr. Lewis N. Dembitz, Board of Governors, Federal Reserve System
• Mr. John C. Cady, Export-Import Bank
• Mr. Jack F. Bennett, Foreign Operations Administration
  • Mr. Leland A. Randall
• Mr. George H. Willis, Treasury Department
  • Mr. Henry J. Bittermann
  • Mr. Paul D. Dickens
  • Mr. Allan J. Fisher
  • Mr. Arnold H. Weiss
• Mr. Oscar Zaglits, Department of Agriculture, Visitor
• Mr. E.C. Hutchinson, Bureau of the Budget, Visitor
• Mr. C.L. Callander, Secretary
  • Mr. Reuben Grusky, NAC Secretariat

1. Terms of Loans Under P.L. 480 and P.L. 665

The Staff Committee, pursuant to instructions of the Council, reconsidered the issues presented in NAC Documents No. 1784² and 1783.³ The Chairman said that the several possible compromise solutions of the difficulties which had been suggested in the Council discussion had been examined carefully, and that upon examination none of them had proved feasible. Mr. Willis ⁴ commented that the management of the International Bank had indicated dissatisfaction with the compromise suggestions, because each of them in effect left the expectation of a loan repayable in dollars. In the light of the understanding reached at the Council meeting on the maintenance of the level of interest rates and the interest rate differential, the Treasury was now willing to propose favorable action on the option proposal, by a telephone poll of the Council. Mr. Bennett stated that FOA was still opposed to the option proposal for the reasons previously given, and wished to have its opposition recorded in the minutes of the Staff Committee. After discussion the Committee agreed to recommend favorably to the Council a draft action of general applicability which would authorize the use of the 2-way option clause in loan agreements under both P.L. 480 and P.L. 665. (The action was approved by a telephone poll of the Council on May 11, 1955; see NAC Action No. 783.)⁵

[Here follows discussion of other business.]

1. Source: Department of State, NAC Files: Lot 60 D 137, Staff Minutes. For NAC Use Only.
2. Document 109.
3. Letter from Bennett to Glendinning dated May 3, not printed. (Department of State, NAC Files: Lot 60 D 137, Documents)
4. George H. Willis, Director of the Office of International Finance, Department of the Treasury.
5. See footnote 4, supra .