Evening star., 1946-03-01
Foreign Loan Policy
Revision Revealed 10
Congress by Truman
President OKs Advisory
Council Statement That
Britain Is Unique Case
By Joseph H. Boird

A sharply revised American
foreign loan policy was an
nounced to Congress today in a
message from President Truman
transmitting report from the
National Advisory Council on In
ternational Monetary and Finan-
cial Problems, which bore his ap-
proval. =.
The council said the proposed
$3.50 ,000, 900 loan to Great Britain
now awaiting congressional ap-
proval, was unique" case and
will not be precedent for loan
to any other country" Instead, the
council suggested-and the Presi-
dent concurred-that Congress in
crease the lending authority of the
Export Import Bank to $3,250, ,000,-
600, requiring an appropriation OF
81, $50 ,000, ,000 to provide the maxi
mum fund which this Government
expects to lend foreign nations
through June, l947.
Sets Ceiling" on Loans.
| Effect of this policy is to put a
definite ceiling over the Nations
| foreign loan program. 1t also makes
possible the granting of foreign
credits through the bank purely by
executive agreement and thus re-
moves them from the arena of po-
litical conflict, which always arises
when they must be submitted to
Congress for approval in each in
stance
The Presidents approval of the
councils report is expected to, an
swer the demand of some members
of Congress for concrete blueprint
of the administrators foreign lend
ing plans. 1t also is designed to still
the apprehension of those who had
feared that the executive depart
ment was planning a fabulous lend
/ ing program which might run to
SIC, 0,000, 100000 or $4,000, ,000, 900.
Program recommended.
The council, which consists of Sec
retary of the Treasury Vinson, Sec
retary of State Byrnes, Secretary of
Commerce Wallace, Chairman Mar
riner S. Eccles of the Federal Re-
serve Board and Chairman William
McC. Martin, jr., of the Export
Import Bank, summarized its rec
commended lending program in these
terms:
"It is the view of the council that,
pending the establishment and op-
Grafton of the international bank,
this Government can meet only a
small proportion of the undoubtedly
large needs of foreign countries for
credits for reconstruction and de-
velopment.
After careful consideration of all
factors, the council has concluded
that the most urgent foreign needs
will involve negotiations for loan
commitments by the Export Import
Bank of pproximately $3,250, 600, 900
in the period from January, 1916,
through June, 1947. This is exclusive
of the proposed credit to Britain"
To Discuss Legislation.
After stating his approval of the
councils report in a covering mes
sage to Congress, the President said
THE statement of the National
Advisory Council concerning foreign
loans reaches the conclusion that the
Export rt-Import Bank will require
during the next fiscal year additional
lending authority of 81, $50 ,000, 900
I indorse this conclusion and at a
later date I will discuss further with
the Congress the need of appropriate
Legislation"
According to the councils report
the American loan program is
merely to tide over wartorn ma
tions until the international bank
set up at the Breton Woods Con-
ference, is functioning fully. With
its present membership, in which
Russia has not joined, the bank will
have lending power of $500 ,000,-
0Q0 The council said the bank
would begin lending operations dur
ing the latter half of this year anc
by next year will assume the pri.
mary responsibility for meeting the
worlds international capital re.
quirefnents s'
Representatives of the countrie.
who are members of the bank are
to meet in Savannah, Ga, at thu
end of next week to set up it.
machinery.