852.51/5–1749: Telegram

The Secretary of State to the Embassy in Spain

secret

264. Urtel 269, May 17.1 Moreno’s2 discussions ExImBank frank and cordial. Moreno’s exposition Span requirements and capacity repay exceedingly confused and spotty, his statistics latter subj admittedly unofficial. Moreno presented Bank with requirements up to billion and quarter dollars, of which 600 million for expendables and 675 million for capital investment. He stressed prime importance cotton, soy bean oil and wheat requirements aggregating 200 million dollars. Moreno’s documentation Span capacity repay even such commodity credits depended completely on long-range investment program. Bank unconvinced even this possible without major efforts of self-help by Spain.

Bank unable see how limited credits could be arranged that wld comply with requirement reasonable assurance repayment, in view absence any visible Span dollar earnings which cld be applied to repayment credits.

Moreno informed complexity Span economy requires thorough examination by Bank in conjunction NAC and that such examination takes considerable time.

Moreno promised Dept to discuss with Span Govt observations made here with respect to desirable economic measures in Spain, but for ur info only he was of course unable make any commitments as to Span Govt actions and was inclined join in criticism of rather than defend current practices.

Moreno informed future contact will be Embassy Madrid. Will inform you any NAC views or requests for info. In line Deptel 199, Apr 13,3 Dept continues view loan only in terms strict economic justification and demonstrated capacity repay.

Acheson
  1. Not printed; in it Culbertson asked for information concerning a United Press report from Washington that Spanish discussions with the Export-Import Bank had been broken off. (852.51/5–1749)
  2. Andreas Moreno, Chairman of Banco Hispano-Americano.
  3. Ante, p. 735.