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March 18, H£ Governor Ssryacsak Mi*. JCn&pp H&tion*l .avlsory Council • meeting- today. I should Ilk© to give you the follovin.. comments on iteiac 3 ;-i-nd k of today 1 * S&tion&l Advisory Council agenda (Mr* Dembitss is preparing • separate ?6emor ,-ndua on items 1 and 2) • 3* Intension of 16 ml-lion dollars of Int»m%tlonfctl Bank credltfl to Chile Following negotiations which have lasted a year and a half, the International B&ak is now getting ready to approve the financing of certain hydro-electric and agricultural ts&chinery project* in Chile requiring & total of 16 million dollars. The Staff Committee recommends that the Council authorise consideration of th@se projects by the U.S» Executive Director in the Bank, Thin fitter vas considered hy the Council toward the end of 1946, but at that time this projects were not veil enough developed, and there was doubt as to the outcone of certain .Arg«niin»*Chile negotiations Involving credits and in exclusiv© trade arrangement. Tide .'.rgentine-CMle arrange— sent has ne-r^r been ratified, And seems &t the present time to be • pretty $•*& issue. Tha proposed projects teea to be promising, and th©r<3 is every desire on the part of th« Internutioaal Bank &nd on the part of this Government to grant some credits to Latin Asa#rlc& at the present time (gee following item) • Since i,h» annual servle# on the proposed credits would amount to leas than one-half of on# por cent of Chile's present foreign exchange receipts, the ability of Chile to atake rep&yaient on this loan »#eas reasonably assured. Attached i& & preliminary dr«ft of the Staff Cosaitt©«fs ;.,aper on this subject# We have not yet received the finsl version* Um Proposals for nev Int^r-.^aferlcan financivil instltutlpn The kt&ff CoBSBittee recommencif that the national Advisory Council instruct ths thS# Delegation to th@ Bogota Conf^rfenc© to "oppose aijy proposal to set up i nev inter*&**ric&& int«r-gov©rryfa©iitsi ftWMsfdUUl institution 1 *• Tlais subject v&s covered in my recent iaaaoriindua regarding Latin American financing. The Staff Coismittee tw!\§ very strongly that despita the d i s satisfaction of the Latin /usericAa countries vith ths International fund and Bank, zn& despite their desires for some new special later-iifflterican ia&titutions, th© TJnit©<i States could not join in sponsoring such Institutions without seriously impairing the functions and usefulness of the International Fund &nd Bank, Attachments 2
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