APPLICABILITY OF THE MUTUAL DEFENSE ASSISTANCE CONTROL ACT TO CERTAIN TRANSACTIONS OF THE EXPORT-IMPORT BANK

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61S00527A000100180088-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: July 15, 1998
• Sequence Number: 88
• Publication Date: February 19, 1958
• Content Type: MEMO

ApprovedUr Release 2001/08/30 : CIA-RDP61S0Q, 7A000100180088-2 1
UNCLASSIFIED
EDAC D--143/1
February 19, 1958
ECONOMIC DEFENSE ADVISORY CTTEE
MEMORANDUM
To: Members, Economic Defense Advisory Committee
From: W. S. DeLany, Chairman
Economic Defense Advisory Committee
Subject! Applicability of the Mutual Defense Assistance
Control Act to Certain Transactions of the Export-Import Bank
In further reference to questions raised by the Export-Import
Bank regarding the applicability of the Battle Act, there is attached
for your information a copy of a letter from the Bank to the OCB
dated November 19 and my reply to this letter dated February 19.
There is also attached a memorandum to me dated February 14 from the
Office of the Legal Adviser of the Department of State which explains
fully the types of loans which would come up for consideration under
section 104(e) (Cooley Amendment) of P. L. 480. Certain described
loans would be considered "assistance" under the Battle Act and others,
for reasons given, would not be considered as furnishing assistance
to other countries ands therefore, would not be covered by the Battle Act.
Distribution.
-ED List Parts I, II, III
UNCLASSIFIED
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 Approve or Release 2001/08/30: CIA-RDP61SO027A000100180088-2
E PORT.IMPORT BANK OF WASHINGTON
Washington 25, D. C.
November 19, 1957
Mr. Elmer B. Staats
Executive Officer
Operations Coordinating Board
Executive Office Building
Washington 25, D. C.
Dear Mr. Staatso
Section 104(e), known as the "Cooley Amendment," of-the Agricultural
Trade Development and Assistance Act of 1954, as amended, provides for
loans by the Export-Import Bank of portions of the foreign currencies which
accrue to the United States under this title. Such loans may be made to
"United States business firms and branches, subsidiaries, or affiliates of
such firms for business development and trade expansion in such countries."
Loans also may be made to "domestic or foreign firms for the establishment
of facilities for aiding in the utilization, distribution, or otherwise
increasing the consumption of, and markets for, United States agricultural
produc ts,"
There is presently under active consideration in the Interagency
Staff Committee. on Agricultural Surplus Disposal a proposed sales contract
for Finland. The Bank, as is customary in these cases, has requested that
25% of the proceeds of any sale to Finland during this fiscal year be set
aside for loans by the Bank pursuant to Section 104(e).
Objection to this request has been raised by another member of that
Committee, however, on the ground that Section 104(e) loans would be barred
because of the provisions of the Mutual Defense Assistance Control Act of
1951. Inasmuch as the Bank previously had understood that the provisions
of the so-called "Battle Act" had been interpreted as permitting dollar
loans by the Bank under the Export-Import Bank Act of 1945 to privately
owned entities in Finland, the Bank now wishes to obtain an authoriative
decision on this point.
It would be appreciated, therefore, if the Board will advise the
Bank whether it perceives objection to consideration by the Bank of loans
to privately owned entities in Finland, either under the provisions of the
Export-Import Bank Act of 1945, as amended, or Section 104(e) (Cooley
Amendment) of the Agricultural Trade Development and Assistance Act of
1954, as amended.
Very truly yours,
Approved For Release 2001/08/W:1A1 DF S% MA000100180088-2
Executive Vice President