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Document Creation Date: 
December 15, 2016
Document Release Date: 
April 13, 2004
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July 24, 1967
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lit W YORK 31W%S 9,14JUL1967 Approved For Release 2004/05/05 : CIA-RDP69B00369R000100240057-7 The five l,atin.Amrri,-nn Anonymous Loans by Pentagon countries reportedly obtained about $100-million. Brazil is un- Financing A rms to 14 Countries $ 43-mod to have received about 43-million---Atgrnlina about $21-million and Venezuela Ap- proximately $29-million, with the remaining $7-million di. ? Fprclet toThe~llew York Ttm-' vided between Peru and Chile. WASiIiNGTf)N, July 23-The held up action on legislation to '"_pproximately $24-miltion,l Defense Department has been extend the life of the Govern- about 4 per cent, was lent to using anonymous loans from meat-owned Institution for five India and Pakistan, and the re. the Export-Import Dank to ff. more years and expand its lend- inainder of the $591-million Ing authority, went to Malaysia and Taiwan, Hance arms sales in Latin Amer- Iran apparently obtained its lea, the Middle Cast, North In closed hearings before the loan as at least partial credit) Africa and Southeast Asia. Ylnuse Ranking and Currency towar (In $?00 million purchatir. oC mmit re ast Monday, Harold in I9rt; r,f F-4 Phantom jets, Informants have disclosed .Linde r , the hank president, as- .ilte io'i f Orlvanced of Ameri? that the $591-million the Pen- screed that until that day he ran r+t,rralinnal fighler?bomhi tagon obtained from the bank had not known nor wanted to "il """tad rqulpr? eat, I he between mid-1985 and last June In; t in fitful) Arabia wn9 no know the names or the coon-I parently financed toward :r p'rr- 30 through so-called "country-X tries that had received the chase of $120-million in llnvvk accounts" was lent to 14 coup- loans. tries for purchases of American ~ antiaircraft missiles anti as- Five of the countries are ill sorted other hardware. armaments. Latin America-brazil, Argen. Israel is believed to hove, ob. Under the country-X device,' t.ina, Peru, Chile and Venezuela, taineci its loan for Hawk anti- the hank opens a line of credit; Your Are Middle Eastern joun- aircraft missiles and tanks that to the Defense De artmentI tries-Iran, Saudi Arahige Jor- Mr Koss sold the Israelis in p dan and Israel. Three! are In 1965 and 1966. Jordan was a arms salesman, Henry J. K"ss' South and Southeast Asia--Ipnrently lent the money for Jr.. which Mr. Kuss lends to the Pakistan, India and Malaysia, the tank-, and it armored hi.a nrd person- country lnt involved for the arms 'The North African country Is's e Purchase. I p Taiwan is the 14ll,,yenr from the United States, reelptetttnt. Argrnflnti htirrhased 25 A-4 rt Th l e oans are guaranteed by In Addition in the eounlry-X Skyliawlc' fir;hter-bombers from the Defense Department through loans since mid-1965, the De. the. United Slates In 1965 and Veneurrln has reportedly been Its $383-million revolving arms tense Department. is believed In gates credit fund under a law have outstanding about $Bp? gold hilt niters for use against million In loans to underdevel- lire pin' omnuntist guerrillas that requires that only 25 per., o there, d ile countries that the Penta? cent of the loan must be cov. ' M" gon made directly from the ' f'f p"p" has been sold a f+ "et'''ch in of i.'-r) Freedom fight- eyed by the fund. .' revolving credit account or o The extent of the bank's In. tamed from commercial banks, lr'r and Pltnlnysia reportedly oh? Ive$15-ntil- The Export-Import Dank has 1"lned a Moan of About ment in the arms traffic iirni for ir l trainers and other . , ; also directly lent at Defense brought vigorous' p~,tests fn;.' Department. requr,st since the '' 1"ipm~~r t. .~4'.. 55.- fiscal year 196.3, $1.1-billion "it" I~~;in to India Is solil - I more to a number of developed "hot m, `trfymr because until fist Mav the Administration of? countries, including Austria, ficlally ilterposed an embargo on 1 Italy, Britain and Australia, for the slrimr nt of so-called lethal arms purchases from Mr, Kus,q, miltiarv , equipment. to India Over the last two fiscal years, arms loans have consti- and Pi ltigtan. Shipments of i tuted more than 39 per cent of what the! Adminislratlon calls I, the bank's lending business, nonlelhirl equilmu nt. such as 1:, and senior administration nffi? radar and Bucks, had been ab 1 dials have testified that the lowed. ~ t bank has made further cons- Sonic military spt'cialists con- mitments to lend $1?billion skier the distinction specious an for weapons during the, sltecause n turned force needs current and future fiscal years. upport equipment as well as The exact amounts of the guns and, Icnks to be effective. country-x loans to each of 14 A sizable number of Demo. aforementioned nations are tin- crats and Republicans on the, known It to atso h 1 1 h House and Senate Bankingi e ov t mite some of tile loans Aq of I ", June 30 were increments of't'se of the bank to finance arms large arms purchases that will business, I but they are even require future loans to co:tr,mure di.;t'trbcd by the fact that plete financing of the sales, its funds have been employed The informants, however,,to sell ams to countries In- 4upplied some regional and lo, .volvecl In' disputes with their cal breakdown. neighbors, About 75 per cent of the They point out that the majof country-x loans, they said, ail- portion the loans within the proximately 5450-million event ast?' two fiscal years, about r er ta . _.- - -s are angry about the; to the four Middle Catitern $450-million, went to the. Cowitrles and Morocco, Middle l'r,Kt and No th Africa,? therntnst jxplosive area, } Approved For Release 2004/05/05 : CIA-RDP69B00369R000100240057-7