Full text of Marriner S. Eccles Papers : $100 Million Loan to China, Box 6, Folder 8, Item 2

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A £100 million loan to China
Tim tism ±9 rip© %o propose to Congrasr* tha sxtas&on of a $100
Billion ten-srfc&r credit to be ^sis^d by China for tha purehana of
Anariean products sh# wlahaa*
On economic and on political ground a s loan of ;100 million to
China a t thi» time is opportune* #s a political wove I t would b# daei
Kill in th* ^ar ^©istarn situation and hasten "ha dtefteftt o**
ai^ht w@ll brin" ho»til!ti«« to en
A loan of $100 s&llion at thi* tin* would gtm to the vsnit#d states
& favored position in Vm d«i?«lops®nt artd rtc^nftruction in China which
will inevitably take plac« within MMI MKl f«w ^®ars. ChiJia haa
400,000,000 paopla and th« pivcvnt hostiliti#® are rapidly rmnvlng, the
which hav# prevented tlie lataMrlaS rovol^tion fr<^ making
throu^hont nhina9 particularly in tha "art. The loan it not a
bad ri^k, pa^ticvlarly if isada at low rat^a of intareft f and tha eloaa
t i e b«t*e«m tfe« Qeita4 ^^at«8 mil %tm niTitali«od Cantral iiovarnmwat of
China eadl tba mmkaned p@opl# of China ia inf initaly more valuable than
tlaa riek Sn^olv»d in Vhm loan.
China aaaJM aaaily spand 1100 million in Ifaa nnited v.atas in a
Y®i*r» Tha #3tp®rianc# of tha !25 miHior. loan indicates tliat such ©xpaaditurae ©an fea distributed throughout tha country in such way aa to jsaiea
tha loan ^ery popular, Tha $25 million loan prsviou®!^ sada was very
pormlaj% Tha conditions now ar# aore oonduciva to a favor&bla raacticn
^ian fcfeaj' nar« at tfcat tiaa» Tha propar program of ^diacation as to tha
aconosdo a^f#ct?», both short tarm aasd long tarsif of such a loan &tn& of
i t a political fi5fnifi«an©a# wowld ^o far toward insuring tha suocaee of
tha I t i l in
•m Head MM additional buslnai?* nowj China mod® the goods and tha
assistanea wora than**ar« Tha loan wmld V* a ^rost e-ntribition to the dm fame of d«mocracy m\6 to MM President 1 ? foraign policy.
I t «CTjldf in a r«*al «eono^ic eenc«# coet \IP naMdm e^mn thon^hwa navar
w#r# r@peid a eant of tha