Office of the Historian

53. Talking Points Prepared in the Department of the Treasury0

January 25, 1960.

POINTS FOR MR. BLACK’S MEETING WITH THE SECRETARY JANUARY 26, 19601

1.
Aside from the effect of International Bank borrowing on the management of the U.S. public debt, it should be remembered that the Treasury has begun to view the Bank’s lending and borrowing in the light of their effect on the U.S. balance of payments. These considerations will become increasingly important as time goes on.
2.
The U.S. is not too happy about dollar loans of the Bank to countries which have adequate gold and dollar reserves. In this connection, we were glad to note that the Bank is not contemplating additional loans to Italy in the near future and hopes that similar consideration will apply to some other European borrowers (France).
3.
The U.S. would like to have more information well in advance of any commitment by the Bank on future loans so that our views may be brought to Mr. Black’s attention without creating embarrassment, either for the Bank or for the U.S. The balance of payments problem makes this particularly important.
4.
The Bank should seek to obtain as much of its financing as it possibly can outside of the U.S. While we recognize the difficulties in floating long-term issues abroad, we feel that it would be better for the Bank to float short-term issues abroad than to rely so heavily on the American market. In connection with the specific $200 million loan, the Treasury will not object if appropriate timing can be arranged. We would hope that the balance of the Bank’s financing during the current year could be obtained abroad. If this is not possible, we would hope to have further prior consultation before the Bank proposes new issues in the U.S. market.
  1. Source: National Archives and Records Administration, RG 56, Records of the Office of the Secretary of the Treasury, Robert B. Anderson, Subject Files, International Bank for Reconstruction and Development. No classification marking. Drafted by H.J. Bittermann and Alfred H. Von Klemperer. Attached is a table showing funds raised by the International Bank for Reconstruction and Development since November 1958.↩
  2. No record of this conversation has been found↩