Editorial Note

In 1949 the International Bank for Reconstruction and Development had under consideration a Finnish request for loans to finance imports of equipment and materials required for the reconstruction or modernization of various industries. For earlier expressions of Department of State policy with respect to such loans, see pages 434437. In a memorandum of June 29 to Under Secretary of State James C. Webb, not printed, Llewellyn E. Thompson, Director of the Office of European Affairs, expressed the current attitude of that Office on possible International Bank loans to Finland as follows:

“We would favor modest loans to Finland for sound economic projects. We consider the present Finnish Government to be independent although its position is, of course, precarious. We would oppose large loans since they would undoubtedly alarm the Russians and might be provocative; also because of the uncertainty as to Finland’s future situation” (800.515 BWA/6–2949).

On July 22, the National Advisory Council on International Monetary and Financial Problems (an inter-Departmental body chaired by the Secretary of the Treasury and including in its membership the Secretary of State, which coordinated the policies and operations of the United States representatives to the International Monetary Fund, the International Bank, and the Export-Import Bank) approved consideration by the United States Director of the International Bank of a loan of $12.5 million to Finland for the import of essential raw materials and equipment for electric power development, limestone grinding, and woodworking machinery. The International Bank granted the $12.5 million loan to the Bank of Finland on August 1.