the act of meeting these stipulations we improved our general situation. So I think that they served, one might say, unofficially in something of an advisory capacity, simply prompted by a desire to make it a sound risk or reject it. Bringing the matter briefly up to date, I think their judgment in this case has been well justified. Our loan was a 10-year loan. In 2 years of operation we were able to repay the complete loan. At this time we have no indebtedness with the bank. We do not contemplate, insofar as we can see, any further efforts to raise money. In closing, I think I must say that we concluded the entire matter with a great deal of admiration for the officials of the bank and for the way in which they conduct the affairs of the bank. Senator BENNETT. Thank you very much, Mr. Christie. Do you have any questions, Senator Payne? Senator PAYNE. No. Senator BENNETT. Are your stockholders mainly American citizens? are. Mr. CHRISTIE. Yes, sir; 90 to 95 percent, perhaps even 99 percent Senator BENNETT. Did the bank require a guaranty from the Government of Liberia? Mr. CHRISTIE. No, sir; they did not. It was purely a commercial transaction. Senator BENNETT. This is an example of an operation in which American capital goes abroad to develop a local resource for importation into the United States? Mr. CHRISTIE. Yes, sir. I think I should mention that they were mindful of the fact that this iron ore is much needed in this country, in that it is an extremely high-grade ore. I believe that was one of the considerations which impelled them to entertain the loan. Senator BENNETT. I have no other questions. Thank you very much, Mr. Christie. At this point in the record I will place the letter of October 28, 1953, signed by Mr. Christie, addressed to the committee, in reply to our questionnaire. (The material referred to follows:) Hon. HOMER CAPEHART, LIBERIA MINING CO., LTD., MONROVIA, LIberia, United States Senate, New York 5, N. Y., October 26, 1953. Committee on Banking and Currency, Washington 25, D. C. MY DEAR SENATOR CAPEHART: This is in reply to your letter of September 3d setting forth certain questions on the subject of the Export-Import Bank. For purposes of simplicity I repeat below in the left-hand column, the questions propounded by your committee and in the right-hand column, the answers, according to our best judgment and belief. 1. The nature or purpose of your contact with the bank. Answer. The purpose of our original contact with the Export-Import Bank was to arrange for a loan to assist in the development of an iron mine in Liberia. 2. If you had correspondence with the bank did you receive prompt and satisfactory replies? Answer. We invariably received prompt and appropriate replies to our communications with the bank. 3. Have you ever applied for a loan from the Export-Import Bank? Answer. We did apply for a loan. 4. If so, has your application been granted or denied? Was it handled in a courteous and expeditions manner? Answer. Our application was granted. The loan was processed in a courteous and expeditious manner. 5. If a credit was authorized was it administered by the Export-Import Bank in an efficient manner? Answer. The credit was administered in an efficient manner. 6. Have you any specific complaints about the operations of the ExportImport Bank? Answer. We have no complaints. 7. Has the Export-Import Bank aided or failed in properly financing and facilitating the export-import trade of the United States? Answer. The bank has been very efficacious in financing and facilitating the export-import trade of the United States. 8. Has the bank assisted in developing and expanding the economy of foreign countries? Has it increased their capacity to purchase United States exports? Answer. The bank has assisted in developing and expanding the economy of foreign countries and has thereby increased the capacity of foreign countries to purchase United States goods. 9. Have you any suggestions for alterations in the policy or operations of the Export-Import Bank? Answer. We have no suggestions for changes or alterations. 10. Has the Export-Import Bank facilitated the expansion of international trade in the past, and it so, how can it more adequately expand it in the future? Answer. The present policies of the bank, if continued, should assist in the expansion of international trade. At the time this company approached the bank for a loan, ours was a pioneer venture, intrinsically sound, but like all pioneer ventures, still unproven through the medium of actual operating experience. The various individuals of the bank who gave their time and thought to the matter of our application showed courage and foresight, but in addition, a very commendable caution. The bank made an extremely thorough study of our undertaking. This involved all angles of the business, financial, sales, operation, etc. As a result of this study, they layed down various constructive stipulations, some of which were hard to meet, but it naturally followed that in responding to the terms imposed by the bank we were improving our own position, as well as qualifying for the loan. We emerged from the negotiations with a high degree of respect for the personnel of the bank. They were men of integrity and competence and the type which a citizen and taxpayer is grateful to find filling public office. The writer would conside. it a privilege to appear at any time desired by your committee. Yours very truly, LANSDELL K, CHRISTIE. Senator BENNETT. The next witness is Mr. Manuel Noriega of the Compania Fundidora de Fierro y Acero de Monterrey, S. A., of New York City. STATEMENT OF MANUEL NORIEGA, REPRESENTING THE COMPANIA FUNDIDORA DE FIERRO Y ACERO DE MONTERREY, S. A., NEW YORK, N. Y. Mr. NORIEGA. My name is Manuel Noriega. I represent the oldest Mexican steel company in Mexico, Compania Fundidora de Fierro y Acero de Monterrey, S. A., or as we call it for short, "Monterrey Iron & Steel." Our company over the last 5 years has had 2 loans from the ExportImport Bank aggregating $5 million, approximately. We have used all of that money to purchase equipment in the United States to further develop the capacity of the iron ore resources within Mexico. Our company has also been purchasing supplies regularly in the United States on the average of $12 million yearly. Senator BENNETT. Your company is largely owned in Mexico? Mr. NORIEGA. Yes, about 85 to 90 percent is Mexican-owned. The rest is American capital. About 15 percent is United States capital. Senator BENNETT. This is not a parallel case with that of Mr. Christie? Mr. NORIEGA. No. Senator BENNETT. How long has your company been manufacturing iron and steel? Mr. NORIEGA. Over 50 years. It started in 1900. Senator BENNETT. The Export-Import Bank coming in represents a program of expansion? Mr. NORIEGA. That is correct. Senator BENNETT. And further development? Mr. NORIEGA. That is correct. Let me mention here that in our case, as I believe is true in other countries to the south, loans and capital are essential, otherwise we would not be able to either start an operation, establish it, or sustain it because of the scarcity of development capital in the countries to the south due to the newness of their economic development. Senator BENNETT. I would think that we in America would be interested in seeing those two methods developed side by side, that we would be interested in seeing in a country like yours the ability to expand as they would be interested in seeing American capital come in and start a new company in a new area. Do you have any questions, Senator Payne? Senator PAYNE. No. Senator BENNETT. I have no other questions, Mr. Noriega. At this point we will submit for the record the statement which Mr. Noriega has just presented to us, and a copy of the letter written on October 8 in response to the committee questionnaire, signed by Mr. Noriega. (The material referred to follows:) STATEMENT ON THE DEVELOPMENT OF INTERNATIONAL TRADE WITH THE REST OF THE AMERICAS BY MANUEL NORIEGA The countries in the American Continent to the south of us offer a golden opportunity for the development of our trade, and simultaneously, for the establishment of a secure source of an abundant supply of strategic materials. And last, but not least, in the process of helping them to develop their natural resources and establishing prosperous and healthy economies, to our mutual benefit, we will have helped the consolidation of a powerful bulwark for the free world. The American Continent was blessed by a kind providence with a tremendous wealth of resources of all kinds for the fulfillment of an abundment life. The northernmost part of the continent has been able to reach a very high standard of living for its people through the judicious utilization of its wealth. Similar posibilities are latent in the rest of the American Continent: their natural resources are, if anything, greater than those of the northern portion, and its people are anxious to develop them to their utmost, in order to reach a more abundant life. They have already made some headway in that direction; but because their economic development is so recent, they lack the tools or capital resources, to accomplish their goal in a short time unless they are able to borrow the necessary tools. This situation presents an ideal opportunity for the United States to enter into a partnership with the rest of the peoples of the Americas to provide them with the capital goods necessary to accomplish their goals. This would be in the manner of an investment that would yield manifold returns. It would provide, immediately, a tremendous market for our capital goods to carry out the plans of industrialization that have already been initiated in most of the countries to the south of us. The beneficiation of their resources, both material and human, made possible by this partnership, will accelerate the improvements of the standard of living already initiated in practically all of these countries and thereby create a tremendous market for our consumer goods. Since industrial and economic improvements set off a sort of chain reaction, in which every step forward creates further and further progress, the demand for heavy capital goods and the maintenance and replacement of the existing ones will continue to constitute a potential market for our heavy industry. Coincidentally, for every new level of improvement of the economic well-being of these people, a larger market will be continually developing for our consumer goods. The best proof of how the economic progress of the other countries of this hemisphere tends to make them better customers of ours, is presented by the case of Canada. With an industrialization and economic standard similar to ours, Canada has been buying from us, during the last several years, 3 to 4 times more than Mexico in dollar value, while the population of Canada is only about half as that of Mexico; and likewise, Canada has been buying from 4 to 6 times more than Brazil, with a population only one-quarter as that of this latter country. When we consider that we have living to the south of us about the same number of people as there are in the United States, we can just about start to realize what an opportunity for trade there will be, once these people reach a standard of living anywhere similar to ours. While that consideration is, as it should be, of great importance, there is another consideration that is, to my mind, equally as important and that is, the storehouse of raw materials that will be developed and placed at the common use of all the countries of the Americas, as soon as the countries to the south of us are given the means of beneficiating their natural resources. And finally, but by no means less important, but on the contrary much more so, the cooperation extended to the countries to the south of us to develop themselves will make it possible for them to realize their goals of economic maturity, and would thereby create the most powerful contingent of allies we could wish for in our crusade for freedom. The most effective way of accomplishing this cooperation with the countries to the south of us will be through the making available to them of suitable loans for the purchase in the United States of the capital equipment and the engineering planning necessary for their development. In some particular cases this financial aid should not be limited to the dollar value of the equipment to be procured, but should also cover local expenditure within the countries themselves. This part of the financing made available for use within the country, will act in the manner of pump priming which will accelerate considerably the improvement of the economic well-being of the country concerned. The most immediately available channel to extend this financial assistance to the countries to the south of us is that provided by the Export-Import Bank which has already had considerable experience in this field, as attested to by the record of its successful loans there during the last few years. In order to better accomplish the task ahead of us, it is my belief that the lending powers of the Export-Import Bank should be increased correspondingly. Financial aid provided so far by the Export-Import Bank to the countries of the Americas, has resulted in what would be considered very sound banking ventures. There is every reason to believe that further financial assistance will likewise result in faithful meeting of the obligations contracted. CIA. FUNDIDORA DE FIERRO Y ACERO DE MONTERREY, S. A., Senator HOMer E. Capehart, Chairman of Committee of Banking and Currency, United States Senate, Washington, D. C. MY DEAR SENATOR CAPEHART: I take pleasure in replying to the questionnaire you submitted to me through your letter of September 3, pursuant to the study of the operations of the Export-Import Bank of Washington that your committee is conducting. (1) My contact with the Export-Import Bank dates from the latter part of 1942 when I was accredited as Washington representative of Nacional Financiers S. A. of Mexico, position which I held until the end of 1945, and since then, as representative of Cia. Fundidora de Fierro y Acero de Monterrey, S. A. In the first instance, my mission was to secure project approvals, allocation of materials, priorities, and export licenses for the industrial program which the Mexican Government was sponsoring through Nacional Financiera S. A., part of which was financed by the Export-Import Bank. In the second instance, I have negotiated on behalf of Cia. Fundidora for suitable financing for the expansion program it has been carrying on, at its steel plant, in Monterrey, Mexico. (2) My correspondence with the Export-Import Bank has always met with prompt and satisfactory replies. (3) I have applied for two loans from the Export-Import Bank on behalf of Cía. Fundidora: the first one, in 1948 for $800,000, and the second one, last year for $4,500,000, both of them to cover the purchase of United States manufactured steel-plant equipment. (4) Both applications were granted. The negotiations were conducted in a very satisfactory manner and were completed with the kind and able assistance of the staff of the Export-Import Bank. The staff of the Export-Import Bank made a very conscientious study of the economic, financial, and engineering phases of our program and their findings were corroborated by independent surveys reported by firms of consulting engineers who dealt with the already indicated points, and made, as well, a market analysis. (5) The administration of the credits have been conducted in a satisfactory and efficient manner by the Export-Import Bank. The first credit has been paid back with interest to almost over 80 percent and will be paid in its entirety by December 1954. The second loan has just been placed in operation. (6) I have no complaints about the operation of the Export-Import Bank; but rather, gratefulness for the kind assistance always extended to me by its officials. (7) In my opinion, the Export-Import Bank has done a commendable job in facilitating the export and import trade of the United States within the limitations imposed by the means at its disposal. (8) I can answer categorically that the Export-Import Bank has helped in the development and expansion of the economy in Mexico through the financing of key projects that have materially contributed by the improvement of economic conditions in that country. The Export-Import Bank financing has allowed the beneficiation of some of Mexico's natural resources converting them into very necessary products, and in this process, has fostered the creation of a larger contingent of skilled workers and caused a substantial improvement in the standard of living. (9) and (10) I choose to answer these 2 questions as 1 because they are interdependent and integrate each other. I feel that the Export-Import Bank has served an eminently important purpose and can be counted upon to do an ever-increasingly far-reaching job, particularly with relation to the countries south of the Rio Grande, if its powers to lend are suitably increased. The importance of the rest of the American continent to the well-being of the United States has been recognized for a long time and has contributed to shape the foreign policy of our country. In more recent years, the awareness of the interdependence of all these nations, found expression in the good-neighbor policy. For many years the tenets of this policy have been almost exclusively political, without integrating them economically to make them more effective toward a consolidation of a strong Pan American Union. The lessons learned during the Second World War, when we were cut off from our regular sources of essential and strategic raw materials, which had been capriciously established in the farthest corners of the world, and made us turn to our own continent for desperately needed sources of supplies, should have taught us the imperious necessity of looking to our own backyard and developing its potentialties to forestall dire consequences in the next possible emergency. The incalculable wealth of natural resources which the countries to the south of us possess in enormous abundance, can be and should be developed for the well-being of our neighbors to the south, and our own protection as well. This can be accomplished through financial and technical cooperation, and I feel that the Export-Import Bank, with its intimate knowledge of the countries of the Americas, gained through the years they have been dealing in this field, are ideally prepared to carry out this program. I feel that the only necessary step is to enlarge the lending capacity of the bank to carry out the program. There is an ever-increasing consciousness in the countries to the south of the importance to reach economic maturity through the proper utilization of their resources. They know they need outside cooperation in technical skills and the procurement of capital goods necessary to accomplish their goal. The United States has a golden opportunity to enter into partnership to make such undertaking possible, and thereby create, not only ideal opportunities for the developing of trade with the rest of the countries of this continent, but also a contingent of rapidly developing prosperous and contented people who can be counted upon as our stanchest and most effective allies. None of my answers need to be held in confidence. They represent the considered opinion of a citizen who has been, for many years, interested in the de |