July 25, 1949
MEMORANDUM OF TELEPHONE CONVERSATION BETWEEN Senator Connally and the Secretary
Senator Connally called this morning to speak to the Secretary and expressed his concern over the Spanish situation. Although the Senator did not specifically refer to which aspect, I gathered that it was the amendment to the ECA legislation.
The Senator said that he hoped the Export-Import Bank would loosen up and grant a loan to Spain which would eliminate embarrassment to him and Senator George and others. He mentioned specifically that the loan would make possible purchases of cotton, etc. The Senator said that he had talked to an "important Spaniard" recently and he had gained the impression that a loan to Spain might be a good risk. The Senator indicated concern lest the Export-Import Bank was operating under policy decision from the Department which was in opposition to such a loan to Spain. The Secretary said there was no political objection to a loan to Spain but that the question was how great a credit risk Spain is. He said that Spain could repay a loan in pounds but was not in good shape in dollars. The Secretary promised the Senator that he would look into this matter right away and call him back.
Senator George has also called the Secretary although the call has not yet been put through. I feel sure, from the reference to Senator George in Senator Connally's call, that Senator George wishes to discuss the same matter.
Will you please have someone look into this urgently?
LDB
S:LDBattle:mlm