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Document Creation Date: 
December 15, 2016
Document Release Date: 
April 13, 2004
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Publication Date: 
August 9, 1967
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1A31153~0T?', Pcv~~ ApAroved e or Release 2004/05/05 : CIA-RDP69B00369R000100240017-1 Vote Is Sit on Arms Loans By Robert C. Albright after a lively debate over Washington Post Staff Writer Whether the Adminstration A fight to deny the Export vi ithheld details of the arms .import Bank authority to financing from Congress. nake loans for arms purchases Sen. Allen J. Ellender (D. )y underdeveloped countries Lathered momentum in the >enate yesterday. A showdown vote on an amendment to bar further ex- :eni,ion of such credit was scheduled for 2:15 p.m. today Although the Pentagon has made $604 million in such loans over the last two fiscal years, from lines of credit ad- vanced by the Export-Import Bank, Ellender said he was to the Export-Import Bank ex-jadvised of it only last year tension bill, called it "back door financing" and Sen. Frank C h u r c h (D-Idaho) charged that a "blindfold" had been clapped over Congress. by Harold F. Linder, presi- dent of the Bank, while on a tripe to Chile. Sen. Edmund S. Muskie (D-Maine), manager of the E x p o r t-Import Bank bill, maintained, however, that the information has been avail- able for nearly three years to those who read committee' re- ports. Muskie? said Export-Im- port Bank participation in the arms financing was first dis- closed in a House Foreign Af- fairs Committee report in 1965, and further details have been disclosed since. Muskie acknowledged to newsmen, however, that Ad- ministration spokesmen in ef- fect had "apologized" to his own Senate Banking Commit- tee for not keeping it better informed. : The Banking Committee voted last Wednescia to leave unimpaired tF e? auThorlty of he Bank to rpa`ke the loans, except for this limitation: At no time could the Bank have credits outstanding for arms sales to underdeveloped coun- tries in excess of 7Y per cent of the bank's $13.5 billion total lending authority. There is now no limit. Such loans to underdevel- oped nations are known as "country-x" loans. No restric- tions would be on further di- rect loans by the bank for arms purchases to so-called credit~wor'thy countries. Ellender said his amend- ment would bar loans only of the "counVy-x" type, although he would like to 'bar all arms- financing credit. Administration forces face still another hurdle in their efforts to keep the authority of the Export-Import Bank intact. Sen. Everett ' M. Dirk- sen (R-Ill.) and 14 Republican cosponsors introduced an amendment designed to block the ,Bank's plan to help fi- nance the purchase of machine tools for the billion-dollar Fiat Approved For Release 2004/05/05 : CIA-RDP69B00369R000100240017-1