FOREIGN FINANCIAL PROGRAM



in France in which a proposed constitution had been rejected by the
French electorate.]
  Political Considerations.-Mr. Eccles said he believed that this loan
should be considered on economic grounds. This Government is in-
terested in political outcomes in other countries but he would dislike
to have the Government accused of undertaking to buy a foreign
election. He did not want a record which was susceptible of this in-
terpretation. He pointed out that we are very critical of the Russians
for influencing elections.
  The Chairman emphasized that there are political considerations
in every loan and referred to the Russian loan. Mr. Eccles thought
that in making loans we are concerned with getting the countries back
on their feet rather than as to whether the government is socialist,
communistic or a capitalistic democracy. We made a loan to Poland
because we wanted to help Poland distribute coal.49 The Chairman
referred to the condition attached to the latter loan that Poland have
an election and pointed out that it is not a question of exerting pres-
sure to change ideologies.
  Secretary Wallace said it would be unfortunate if word got out
that we had in mind major political considerations in making loans.
  The Chairman said the political question came up in connection
with the time we would conclude the loan in relation to the June 2
elections. If the loan is negotiated in the very near future there is no
doubt the conclusion will be drawn that it was made for that purpose.
Secretary Wallace said we had sufficient economic reasons for con-
cluding this loan. If the Export-Import Bank does not think so we
should go slowly.
  The Chairman pointed out that the Chinese loan of $500 million
was a political loan and had been made on the basis of General Mar-
shall's plea. Secretary Wallace said that if he had been present he
would have voted against the loan.
  Mr. Eccles added that there were many strings attached to the
Chinese loan. In France conditions are orderly but the question is
whether the Constitution and Assembly to be chosen would be right,
left or middle. It would be unfortunate to make a loan to influence an
election in a particular direction. Also we can have no assurance that
a loan made before an election will have the effect we want. The French
people might resent the fact that we were trying to influence the elec-
tion. AVe have found that to be true in Latin America.
  The Chairman pointed out that the State Department had raised
the political matter the previous week. Mr. Clayton agreed but said
'9 This refers to a $40 million credit to Poland which the National Advisory
Council approved for consideration by the Export-Import Bank in a meeting
on
January 29, 1946, diplomatic consummation of which was still pending.



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