Memorandum from Richmond Keech to President Harry S. Truman

THE WHITE HOUSE WASHINGTON August 20, 1946 MEMORANDUM FOR THE PRESIDENT On August thirteenth you referred to me a letter from President Roxas relating to the general financial condition of the Philippines and more particu- larly to two loans, one of $250,000,000 from the Export- Import Bank for the purpose of setting up a Philippine Reconstruction Finance Corporation, and the other in the amount of $400,000,000 to meet the budgetary needs of the Philippine Republic for the next five years. The latter doubtless to be procured from the Congress, al- though the letter is not specific as to the source. You will recall that a previous request for a loan to the Philippines from the Export-Import Bank was disapproved by the National Advisory Council on Inter- national Monetary and Financial Problems. Following such action, authority to make a loan to the Philippines was requested of the Congress, which body authorized a #loan through the Reconstruction Finance Corporation. The President of the Philippines now expresses the hope that you will find it desirable to suggest that the Na- tional Advisory Council reexamine its decision with a view to obtaining endorsement of the two loans desired. In your reference to me, you asked that I discuss the matter with the interested agencies and pre- pare a reply to President Roxas. I talked with Chairman William McChesney Martin, Jr., of the Export-Import Bank, on his return to Washington yesterday, and today I took the matter up with the Under Secretary of State for Eco- nomic Affairs, William L. Clayton. (As you know, the Secretary of the Treasury has been out of town.) I do not believe that you would be warranted in directly or impliedly recommending to the National Advisory Council or the Export-Import Bank reconsideration of the application for loan which was turned down, nor do I believe you are in a position at this time to say that you will recommend that the Congress authorize a further loan to the Philippines. $75,000,000.00 NATIONAL ARCHIVES AND RECORDS SERVICE"