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BDARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence To Chairman Eccles From Mr, Knapp p a te June 3, Subject: National Advisory Council meeting to be held t h i s afternoon With regard to the items on the National Advisory Council agenda this afternoon, number one (the Philippine loan) and number four (the report on N.A.C. activities) are covered in my memorandum to you dated May 27, 1947. I would only add with respect to the first item that a telegram has just been received from Mr. Crossman in Manila indicating that agreement has finally been reached with President Roxas to a recommendation by the Joint Commission against any budgetary loans for the next fiscal year. The following comments cover the new items on today's agenda: (2) War Assets Administration credits. The Staff Committee is recommending approval by the Council of War Assets Administration credits to Hungary, Turkey, and the Netherlands in the amount of 5 million, 15 million, and 25 million dollars respectively, Turkey and the Netherlands are pretty clear cases, but there was considerable debate about the Hungarian credit, and the Staff Committee finally decided to recommend it largely on political grounds as urged by the State Department. The recent turn of events in Hungary,and the cancellation of the outstanding 15 million dollar OFLC credit to Hungary, completely changes the picture and no doubt the State Department will today recommend rejection or tabling of the Hungarian application to War Assets Administration. (3) Senate Resolution No. 103. This Resolution, introduced by Senator Butler and now being considered by the Senate Finance Committee, requests the Bureau of the Budget to report a large amount of detailed data relating directly and indirectly to the U.S. foreign aid program in order to provide Congress with information as to this countryfs ability to meet foreign demands. The State and Treasury Departments have been asked by the Senate Finance Committee to comment on the proposed Resolution. The Staff Committee, with the concurrence of the Bureau of the Budget, recommends that Secretary Snyder, in his capacity as Chairman of the National Advisory Council, write to the Chairman of the Senate Finance Committee suggesting that a formal Resolution of this character is unnecessary, and that "upon the request of your Committee we /±.e.9 the N.A.C^/ are prepared, as we have been in the past, to submit all available information on the matters referred to in the Resolution and any additional available information related thereto, which would be helpful to the Committee or Congress". While the compilation of the information requested would be a very burdensome task in some respects, the Staff Committee believes that we should make every effort to satisfy Congressional requests for background information related to the foreign aid program.
@FedFRASER