852.51/10–2048
Memorandum of Conversation, by Mr. William B. Dunham of the Division of Western European Affairs
| Participants: | Mr. Barth, Vice President, Chase National Bank |
| Mr. Schermerhorn, Washington Representative, Chase | |
| National Bank Mr. Achilles, Chief, WE Mr. Dunham, WE |
Mr. Barth, who has just returned from a two months trip to Spain, called to inquire whether the Department had any objection to a loan the Chase National Bank proposes to negotiate with the Spanish Foreign Exchange Institute for a two year revolving credit of from $10 million to $15 million. He said that the loan would be used primarily to finance the export of American cotton to Spain and the construction of an ammonium nitrate plant. The loan will be made against 105% gold collateral, the gold to be held in London.
He was told that we had no objection to any private financial transactions of this type. Mr. Barth said that he would draw up the loan agreement, the principles of which the Spanish officials concerned had already agreed to, and he expected it would be signed shortly in [Page 1058] Madrid. He said that he would send us a copy of it and asked that in the meantime this information be kept strictly confidential.