Foreign Relations of the United States, 1958–1960, Foreign Economic Policy, Volume IV

202. Minutes of Meeting 60–5 of the National Advisory Council on International Monetary and Financial Problems⁰

July 1, 1960.

[Here follows a list of participants.]

The Council discussed the report of the NAC Deputies Committee (NAC Document 60–188, June 29, 1960).¹

Coordination between Export-Import Bank and Development Loan Fund (Appendix A)² (Numbers below refer to paragraphs of Appendix A, as discussed.)

1. The Council agreed in principle to dividing borrowing countries into three groups. Since, however, not all countries were included in the list, Mr. Dillon suggested that all countries not otherwise listed should be in List C, i.e., countries of joint interest. It was agreed to refer this problem to the Export-Import Bank-Development Loan Fund Joint Committee for further study and report to the NAC Deputies Committee.

2. Mr. Waugh indicated that he would wish to study further the matter of handling of applications and would give his views to the Council at a later date.

3. It was pointed out that this paragraph described what was already taking place. There was agreement on this paragraph.

4. With regard to the monthly reports from the Eximbank and DLF proposed, it was agreed that the Eximbank-DLF Joint Committee would consider and report to the NAC Deputies on an appropriate form adequate to meet the needs of coordination and safeguarding particular interests of the agencies. It was agreed that the NAC Deputies Committee would try to have ICA prepare a similar report on its loans and try to secure from the IFC a more informative monthly report. It was also agreed that reports from DLF and Eximbank when made would have a distribution limited only to the NAC members, the Managing Director of DLF, and the Treasury staff.

5. Mr. Waugh indicated that because of the legislative history of Eximbank and DLF, it was not appropriate to have a staff member of DLF attend Eximbank meetings, particularly since several other Agencies or Departments were interested in attending the Eximbank Board meetings, or being represented on the Eximbank Board. Mr. Brand observed that DLF needed better information of Eximbank’s activities in countries of joint interest so as to prevent any unnecessary interference by DLF in matters of Eximbank interest.

6. It was agreed that in selected cases it would be desirable that joint field trips in countries of common interest be made by Eximbank and DLF, but that the decision should be made on a case-by-case basis.

7. With regard to partial or total dollar repayment on certain DLF loans, there was general agreement that the matter had to be approached on a case-by-case basis. Mr. Waugh pointed out, however, that he wished to study the whole matter further before reaching a conclusion.

8. Flexibility of Guidelines (Eximbank-DLF Joint Committee) There was agreement on this paragraph.

Role of DLF in Latin America (Appendix B)³

There was general agreement on the paper as a whole, but Mr. Waugh felt he could accept it only if it applied to other areas as well as Latin America. Mr. Upton noted that the paper was designed for Latin America, though much of it would be applicable in certain other areas. Secretary Anderson suggested that the paper should be accepted as it stands with regard to DLF operations in Latin America and that to the extent it is found applicable to the rest of the world it would be so applied. This was agreed.

NAC Deputies Committee

It was agreed that the NAC Deputies Committee would continue to meet, as appropriate, to work further on the papers presented to the Council and to receive reports from the Eximbank-DLF Joint Committee on their recommendations.

0. Source: National Archives and Records Administration, RG 56, Records of the Department of the Treasury, NAC Minutes. For National Advisory Council Use Only.
1. Document 201.
2. To Document 201.
3. To Document 201; not printed.