224. Editorial Note
The National Advisory Council on International Monetary and Financial Problems met on April 20 to consider a proposed Export-Import Bank credit of $26 million to a privately-owned Mexican steel company, Cía Fundidora de Fierro y Acero de Monterrey. Minutes of this meeting read in part:
“The Chairman informed the Council that the Department of State had expressed reluctance to proceed with this credit at this time because of certain political problems with the Mexican Government, and inquired whether a delay in granting the credit might assist the Department of State in working out these problems. Mr. Prochnow explained that the Department of State favored the credit, but felt that a delay might assist in the solution of some of these problems, particularly in view of the very large amount involved.
“Mr. Waugh expressed the view that the withholding of Eximbank loans to foreign governments to further the political objectives of the U.S. Government was appropriate, but he expressed doubt that loans to private enterprises should be used for the achievement of political objectives.
“The Council discussed the proposed credit and the request of the Department of State for delay. The representative of the Department of Commerce stated that Commerce had no objection to the credit, on the understanding that the granting of the credit would not imply a moral commitment that the United States would supply scrap iron for the Mexican steel mill. No objection was raised to the proposed credit in principle, but since it appeared that delay for a reasonable period might assist the Department of State in the solution of its problems with the Mexican Government, the Council agreed that further consideration of the credit should be deferred for the time being, subject to reconsideration at any time at the request of either the Eximbank or the Department of State.” (Department of State, NAC Files: Lot 60 D 137, Minutes)
The Acting Chairman of this session of the NAC was W. Randolph Burgess of the Department of the Treasury. The representative of the Department of Commerce was Marshall M. Smith.