Evening star., 1940-10-18
Additional Credits
Being Negotiated
10 Aid China
Amount Not Announced
By Jones; Latin American
Loans Being Considered
By OLIVER MCKEE.

As war supplies again began to
move over the Burma road, Jesse
Jones. Federal loan administrator
and Secretary of Commerce, an
nounced yesterday that negotiations
ars under way for additional credits
to China, through the Export I'm
BORT Bank. Loan authorization to
China In the amount of approXi-
nately $85 .0O0, 900 already have been
made. Declaring that I'VE are anXi
Gus to help China Mr.. Jones ex-
pressed confidence that shipments
from the United States will reach
their destination in China.
T. v. Soong, chairman Of the
board Of the Bank of China. who is
carrying on the loan negotiations in
behalf OF the Chinese Nationalist
government, sat at Mr.. Jones side
st yesterdays press conference.
Commercial traffic, he said. has
continued over the Burma Road
during the period in which it has
been closed to war materials and
he predicted that his government
would have no trouble in keeping
the highway open.
Like their predecessors. the new
: credits for China. if approved. will
not be used for the purchase of mu-
= nttions. I'VE are not lending money
TO buy munitions" Mr.. Jones said
Gasoline and trucks. he indicated,
probably would "qualify.'
May Repay in Metals.
The amount of the projected loan
vas not revealed. If made. it will
lArgely be paid by China through
she shipment to the United States
s0f metals, such as tungsten and
other commodities. Consideration
3 also being given to the shipment
of commodities which we 10 not
now buy from China in appreciable
quantities.
: To help China meet her present
Foreign exchange needs. the Export
import Bank last month agreed to
lend China $25, 900 900. which will be
Gquidated through the sale of tung-
stem. In March the bank authorized
. $4,000 900 loan to China, which
will be repaid through the importa-
6on OF tin. In December. 1888. The
bank approved a credit of s25 500O,-
900 to the Universal Trading Corp.
Of New York, ChineSe-oWned
American corporation, which is be-
ing repaid through the shipment OF
wood oil. The Reconstruction
Finance Corp. also authorized some
credits to China
Sales to the United States have
helped China maintain her foreign
exchange position and are therefore
an important element in sustaining
her war effort.
Pierson to Return Soon.
Administrator Jones also revealed
yesterday that more credits to Latin
American countries are under con-
alteration. Warren Lee Pierscn,
president OF the Export Import Bank.
who has been making a tour of
Latin America, is expected back in
washington In about 10 days and
will make a full report to Admin
istrator Jones on possible loans to
Latin American countries.
Mr.. Jones revealed that credits to
Chile. Argentina, Brazil and sew
eral other countries have been under
discussion. I'VE can certainly in
crease our trade with Latin Amer
ican countries but We do no. want
to sell them goods for which they
can not pay" Administrator Jones
said. Easier and more liberal credit
terms. he indicated. will probably be
necessary If our sales are to be in
creased.
Plans for financing the construc-
ton of a tin smelter in Bolivia, Mr.
Jones disclosed, are nearing COM
pletion. The United States. he said.
probably will take most of the out
put Of the projected smeltec not
going to England. Our share, he
Indicated probably would be be-
tween $4,000 and 10000 tons an
nually.
The selection OF Nelson Rockefeller