Memorandum of Telephone Conversation with Secretary of State Dean Acheson and Senator Tom Connally

CENTIDENTIAL 250 ARCHIVES 'MATIONAL RECORDS AND = 219 August 2, 1950 The Secretary telephoned Senator Connally for two reasons: First, he congratulated the Senator warmly on his speech on the floor opposing the Kem amendment cutting ECA. He said it has been effective, helpful, and a fine job. Second, the Secretary said that Secretary Anderson had called to ask what the Department's attitude was on the amendment to the Omnibus Bill authorizing and directing that a loan not in excess of $100,000,000 be made to the Spanish Government. The Secretary said the Department had always opposed making a loan in this way to the Spanish Government. The Senator said he had been in an embarrassing position. He had voted previously against similar amendments, but in the absence of a loan by the Export-Import Bank, the pressures had gotten so great that he could not do otherwise than vote as the Policy Committee had decided. The Secretary said he realized the Senator's position; that the Department had been trying to get the loan by the Export-Import Bank accomplished and he still hoped that the Bank would make the loan. The Secretary said that he had told Senator Anderson further that for this Government to be required to make the $100,000,000 loan in the manner in which the amendment prescribed took away all bargaining power from this Govern- ment. There are various points which the Department would like to have made clear, as follows: First, he would like to have the amount cut down; for he thought nobody could make an economically sound loan of $ $100,000,000 at this time to Spain. Second, it should not be a loan to the Spanish Government, but to industries. 2 DECLASSIFIED E. O. 11652; Sec. 3(E) and 5(D) or (E) 3.16.76 Dept. of State letter, Aug. 9, 1973 By NLT- HC NARS Date6-14-66 CENTIDENT