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Office C o r r e s p o n d e n c e

Chairman Eccles
Mr« Knapp

Date July 22,1946.
Subject: Joint Resolution on Philippine
Loan intinduced by Congressman

On July 16, the day following the last National Advisory Council
meeting, Congressman Bell introduced a Joint Resolution in the House of
Representatives along the lines of the draft approved by the N.A.C. However,
there were two changes:
(1) The amount has been raised from 75 to 100
million dollars. Apparently Congressman Bell insisted
on the latter figure, since he had bfeen assured by
President Eoxas and Mr. McNutt that this was the amount
required, and he pointed out that in any case the
actual disbursement of the funds would be controlled
by this Government. I still think 50 million dollars
should prove enough if the Philippine Government takes
reasonable steps to deal with its own problem.
(2) The funds are to be disbursed "upon such
terms and conditions as the Secretary of the Treasury
after consultation with the National Advisory Council
shall deem to be warranted by the financial position of
the Philippine Government11 (in the previous draft, the
underlined language was "with the approval of11).
This bill has been referred to the Banking and Currency Committee,
which has requested a report from the State and Treasury Departments. Mr.
Glasser informs me that this report will simply take the form of transmission to
the Committee of the N.A.C. action taken last Monday, i.e. the Administration
will support the bill only to the extent of 75 million dollars.