restricted in respect to the length of the loan. We have always taken the view that the length of a loan is related to the purpose for which it is to be made. The directive that you refer to had a statement to emphasize the eminence of the International Bank in the governmental development loans, and it indicated that it would be the primary source of loans of a governmental character for development in the member countries, but with the proviso that even such loans would be made by the Export-Import Bank when they were in the special interest of the United States to have them so made.

Mr. MULTER. How soon will your next report of your bank be ready? General EDGERTON. It should be ready in about 3 weeks. That is, the semiannual report.

Mr. MULTER. Could you in the meantime furnish to this committee a list of your development and reconstruction loans that have been made since January of 1953?

General EDGERTON. Yes, sir.

Mr. MULTER. When that comes in may it be incorporated in the record?

General EDGERTON. We could put it in the record. I couldn't give it to you from the data I have here.

(The information is as follows:)

Date of application

Export-Import Bank of Washington-Statement of develop

1-14-53 Mexico, Mexican Gulf Sulphur Co. and Mexican Sulphur Co., S. A.

4-8-53 Mexico, Cia. Minera Fernandez, S. A.

1-2-53 Brazil, Companhia Brasileira de Estireno.

4-27-53 South Africa, various mining companies, unallotted. 10- 2-52 Peru, Marcona Mining Co.

494 Financing erection of sulfur 5-53
plant.

505 Production of manganese

concentrates.

$1,567, 500. 00

4-23-53

105, 000. 00

544 Styrene (basic plastic 6-3-53 2, 500,000.00
materials) plant.

Mining equipment, ma

6-17-53 30, 000, 000. 00

terials and services.

Development of iron ore
deposits.

7-15-53 2, 500, 000. 00 $1,500, 000

Highway construction...

9-16-53 2, 280, 000. 00

1 This statement is furnished at the request of the committee for "a list of development and reconstruction loans which have been made since January of 1953." No reconstruction loans were made within that period. In addition to "development loans" of $411 million, exporter loans for the same period totaled $858 million.

ment loans authorized Jan. 1, 1953, to June 30, 1955, inclusive1

During this same period, $93 million of individual credits have been allocated under previously authorized credits.

Mr. MULTER. Will you indicate when those loans were initiated, and when negotiation was consummated and agreements made, and when moneys were advanced?

General EDGERTON. When the loans were approved?

Mr. MULTER. The date the application was filed, date of approval, and amount of loan, and how much has been disbursed in accordance with the approval.

General EDGERTON. We will do that.

Mr. MULTER. One other subject, Mr. Chairman, and I will try to be very brief.

Has it been the policy of the Export-Import Bank to require that the funds that it lends to borrowers be used for the purchase of United States goods?

General EDGERTON. Yes, sir.

Mr. MULTER. And you think that is good policy?

General EDGERTON. Yes; it is in accordance with the act.

Mr. MULTER. Should there be some simpler provision put into this new act requiring that some percentage of the loans be made for the purchase of American goods?

General EDGERTON. I wouldn't recommend that, no. I think, falling back on the remark I made a while ago, I think that in a business of this kind the attempt to prescribe too much in advance is crippling and likely to defeat some of the objectives of the business, itself.

Mr. MULTER. Will the National Advisory Council have considerable to say in the making of policy of this new organization?

General EDGERTON. Yes; obviously they don't control the organization; they don't coordinate it like they do, for instance, the activities of the Export-Import Bank, and the Foreign Operations Administration, which are United States agencies, but they advise the American governor what position he should take in respect to any important matters, and, of course, the representative of a 35-percent stockholder is potent.

Mr. MULTER. It was my recollection that the Export-Import Bank Act set forth the powers and duties of the Board that control the Export-Import Bank, and that the National Advisory Council was to be just that, an advisory council. In practice, however, the National Advisory Council's advice is a directive, which the ExportImport Bank follows as to policy; am I not right?

General EDGERTON. That is pretty near right. There was a change in the application of the language of the Bretton Woods Act for a period during which the bank was a corporation, that had no board of directors. There was a slight change in the language describing the relations of the National Advisory Council to the bank. That change was eliminated in the act of last August, which restored the Board of Directors and reestablished the language of the Bretton Woods Act, which establishes the duties of the National Advisory Council. But it has the authority, indeed the duty, to coordinate these lending matters, and it is a little difficult, to be sure, precisely, as I stated a while ago, where the authority to coordinate begins and ends. It is certainly working in the same general interest as the

agencies it coordinates. It is an entirely American institution, and it must have generally about the same objective as the coordinated agencies. So I would assume on principle that the likelihood of their making grave errors, or taking actions highly objectionable and detrimental to one of these governmental agencies, is somewhat remote, although judgments might differ as to what it is wise to do.

Mr. MULTER. Does any Export-Import Bank representative sit in at all in the conferences the policy conferences with reference to the International Bank?

General EDGERTON. Yes; I think so. The President of the ExportImport Bank is a member of the National Advisory Council now. For a time he was not, but he is now.

Mr. MULTER. Thank you, Mr. Chairman.

Mr. WOLCOTT. Do you have an Advisory Council or did you do away with that?

General EDGERTON. For the bank, you mean?

Mr. WOLCOTT. Yes.

General EDGERTON. That is just about to be organized. We haven't got it fully organized yet.

Mr. WOLCOTT. Did we discontinue the Council that was to be set up when the bank was organized?

General EDGERTON. I just can't hear you, sir.

Mr. WOLCOTT. Did we discontinue the Council that was set up on your bank?

General EDGERTON. Yes. The Advisory Council is to be appointed and we will be announcing the appointments within the next 2 or 3 weeks.

Mr. FINK. That is the Public Advisory Committee you are talking about?

General EDGERTON. Yes, sir.

Mr. FINK. He is not talking about that. He was talking about the Advisory Committee Council in the Export-Import Bank under the old law.

General EDGERTON. The old Council was never organized.

Mr. WOLCOTT. It never functioned?

General EDGERTON. No.

Mr. WOLCOTT. As a matter of fact, we thought at one time of giving you a gavel, which would be distinguished from the gavel that the Secretary of the Treasury used when he sat on the National Advisory Council because the same personnel made up the two councils, when they operated as Advisory Council for the Export-Import Bank, the President of the Export-Import Bank was to be Chairman and otherwise the Secretary of State.

General EDGERTON. As far as I know, that Council never met as such. The new Council is a Public Advisory Council with nine members who are broadly representative of industry, finance, agriculture, labor, etc., and that Council is appointed by the Board of the bank. It is in the process of being appointed now.

Mr. MULTER. Does our Secretary of the Treasury or his designee sit on the International Bank Board?