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This file contains possible amendments to HR 15977 and related Eximbank positions.
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1075787
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Export-Import Bank
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1075787
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Export-Import Bank
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This file contains possible amendments to HR 15977 and related Eximbank positions.
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Vernon C. Loen and Charles Leppert Files
Vernon Loen's and Charles Leppert's General Subject Files
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Export-Import Bank of the United States. 3/13/1968-
Legislation
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1075787
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1974-08-31
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8
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1974
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1974-08-01
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8
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1974
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The original documents are located in Box 9, folder "Export-Import Bank" of the Loen and
Leppert Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 9 of the Loen and Leppert Files at the Gerald R. Ford Presidential Library
August 19, 1974
MEMORANDUM OF ASHLEY MEETING
In attendance: Mr. Ashley
Mr. Jasinski
Mr. Casey
Mr. Minikes
Mr. Corette
Ashley believes that the most important element is to use key
people to help against and for amendments. The following people were
decided in favor of Eximbank's position on each of the following
amendments:
1. Bank Out of the Budget
Ashley will make motion supporting.
Those in favor of motion will include Ullman, Bolling,
Cederberg, Passman and Mills.
2. Eximbank Interest Rate Amendment
Derwinski will introduce Eximbank amendment as substitute
for Blackburn Amendment.
Supporting members will be Waggonner, Rees, Rostenkowski,
Blatnik, McFall and maybe Brademas.
3. The Dent Amendment
Opposition will be headed by Conable.
Supported by Hanna and Frenzel.
4. Ichord Amendment -- Submit all transactions to the U.S.S.R.
sixty days before final approval with Congressional
disapproval by either House.
Opposition will be headed by Zablocki.
Supported by Whalen, Mahon, Hanna, Frenzel, Garry Brown.
5. Rousselot Amendment (Jackson-Vanik)
Koch and Vanik will carry opposition.
- 2 -
6. ATA Amendment
Rees, Frenzel and Adams.
7. Congressional Review Amendment.
Will be handled by same group heading opposition on
Ichord Amendment.
GENERAL DEBATE
Ashley will lead Majority. Be sure Widnall leads Minority, or
gives it to Johnson or Stanton.
Majority Table
Ashley, Rees, Hanna, Mitchell, and A. Young
Minority Table
Stanton, G. Brown, Frenzel, Johnson, McKinney
Additional people in general debate: Guyer, Cederberg, Frelinghuysen,
and possibly Joe Waggonner.
To cover doors: Republicans: Brown (head)., with Frenzel, McKinney,
Anderson. Frenzel will get Republican
whips.
Democrats:
Rees, Young, Hanna, Mitchell, Annunzio,
Waggonner, Passman.
MISCELLANEOUS
John Anderson will briefly state his views on each amendment
supporting Eximbank position.
J. E. Corette III
General Counsel
POSSIBLE AMENDMENTS TO HR 15977
AND RELATED EXIMBANK POSITIONS
A. Amendments affecting business with Communist countries.
1. Amendments that would require Congressional approval of
transactions.
a. An amendment that would require all transactions to the
USSR to be submitted to the Congress for approval 60 days
before final Eximbank approval. The procedures of the
Legislative Reorganization Act would be used, with dis-
approval by resolution of either House sufficient to result
in disapproval of the transaction.
b. An amendment that would require Congressional approval for
any transaction with Communist countries.
EXIMBANK POSITION: Eximbank is opposed to this amendment as
Congressional review of individual transactions is unnecessary
and would seriously hamper the Bank's ability to perform its
statutory functions. Congress already exercises adequate super-
vision over the Bank's activities by framing its mandate and
limiting the Bank's authority to make commitments each year, as
well as through other limitations. Requiring submission of trans-
actions to Congress for approval will cause delays and otherwise
place U.S. suppliers at a severe disadvantage since no credit
agency in Europe or Japan is required to submit specific trans-
actions to its legislature for concurrence. Many foreign buyers
will stay away from the United States to avoid debate of their
particular project on the floor of the U.S. Congress.
2. An amendment that would prevent Eximbank from doing business
with any country denying freedom of emigration.
EXIMBANK POSITION: Eximbank is opposed to this amendment.
HR 15977 currently contains a provision that prevents Eximbank
from doing business with the USSR until such time as the Senate
takes action on the Trade Reform Act. While Eximbank does not
object to. the inclusion of this provision in the House bill,
it is inappropriate to link Eximbank financing to the resolution
of the issue of freedom of emigration. We should not prevent
U.S. sellers from participating in this large new market. If
U.S. products are not available on acceptable terms, then
purchasers will simply look to Japanese or European sources.
3. An amendment that would make Eximbank financing to the USSR
contingent upon a successful outcome to Salt II.
EXIMBANK POSITION: Eximbank is opposed to this amendment. The
conduct of Salt II falls within the province of the Departments
of State and Defense and not within that of Eximbank.
- 2 -
4. An amendment that would prevent Eximbank from doing business
with the USSR until it joins the International Monetary Fund.
EXIMBANK POSITION: Eximbank is opposed to this amendment which
is based upon two misconceptions. First, while the ruble would
become a convertible currency as a result of Soviet membership
in the IMF, Eximbank makes disbursements and is repaid in dollars
under credits extended to the USSR as well as to any other bor-
rower. Second, although the USSR would be required to provide
more financial information as a condition to joining the IMF,
the Bank has been able to obtain adequate information to enable
it to draw conclusions as to the creditworthiness of the USSR.
5. An amendment that would prevent Eximbank from financing trans-
actions involving the sale of equipment with military potential
to Communist countries.
EXIMBANK POSITION: Eximbank is opposed to this amendment as a
similar provision is contained within pending export control
legislation. That Act is the proper place for disucssion of
this proposal.
6. An amendment that would prevent Eximbank from doing business
with any Communist country unless such country allows sale of
consumer goods produced by U.S. concerns to private citizens of
such country.
EXIMBANK POSITION: While the purpose of this amendment is un-
clear, it would seem to constitute interference in the domestic
affairs of another country, and Eximbank is opposed to it.
7. An amendment that would prohibit any U.S. government agency
from financing the export of goods or services to be used for
energy research, development or exploration in the USSR.
EXIMBANK POSITION: Eximbank is opposed to such a blanket pro-
hibition. With regard to energy-related transactions, as
well as for all other Eximbank financed transactions, each
case should be examined on its facts to ascertain the
potential risks and benefits to the United States.
8. An amendment that would require Eximbank to provide financing
to Communist countries at a rate not less than comparable
Treasury rates.
EXIMBANK POSITION: See B(1) below. In addition, Eximbank sees
no reason to discriminate against Communist countries.
- 3 -
B. Other Amendments
1. An amendment that would require Eximbank to provide financing at
a rate no less than one precent below average prime rates of five
largest U.S. commercial banks.
EXIMBANK POSITION: Eximbank is opposed to this amendment, as the
rate at which it lends money should be geared to the average cost
of money to the Bank and the necessity of maintaining its earning
power and reserves as well as the Bank's mandate to support U.S.
exports at rates and on terms and conditions which are competitive
with exports of other countries. Thus, the Eximbank rate has not
remained constant but within the past year along has risen from
6% to 7% and now to a flexible band between 7% and 8-1/2%. In
addition, imposing a rate on Eximbank over which it has little or
no control will prevent it from playing an effective role in
negotiations with other countries to reduce competition.
2. An amendment that would prohibit financing for the export of
nuclear reactors without Congressional approval.
EXIMBANK POSITION: Eximbank is opposed to this amendment as adequate
opportunity for oversight of the export of nuclear technology is pro-
vided in the Atomic Energy Act of 1954 (for which the Senate and House
have passed amendments to increase Congress' role). If Congress wishes
to further enlarge its role, it should do so within the context of the
Atomic Energy Act or export control legislation.
3. An amendment that would direct Eximbank not to provide financing
which may have serious adverse effects on the competitive position
of U.S. industries, the availability of materials which are in
short supply in the United States, or employment in the United
States.
EXIMBANK POSITION: While Eximbank does not object to the inclusion
of such a provision, it is unnecessary as the mandate of the Bank
already directs it to take such factors into account before approving
financing.
4. An amendment that would allow Eximbank to extend financing to
U.S. air carriers in support of purchases of aircraft to be used
STAGGOTS
solely in competition with foreign air carriers.
EXIMBANK POSITION: Before deciding that Eximbank financing should
be available to U.S. air carriers, Congress should carry out a
careful and thorough analysis in coordination with the Civil Aero-
nautics Board. In the event that Congress concludes that such
financing is appropriate, it should appropriate adequate funds
which should be earmarked and made available only for this purpose.