WASHINGTON (Mar. 21)
The U.S. Export-Import Bank and the Soviet Ministry of Foreign Trade today signed two credit agreements entailing-U.S. sales of $199,013,138 to the Soviet Union and also an accord by which the Soviet government guarantees the bank the repayment of credits extended or guaranteed by the U.S. agency to the Soviet Bank for foreign trade (Vneshtorgbank) in Moscow.
A third credit arrangement for sales totaling $25,937,000 is to be signed Friday, bringing the total for the three agreements to $225 million. The Export-Import Bank and private American banks will each provide 45 percent of the credits Vneshtorgbank will put up ten percent in cash.
The Export-Import Bank and Chase Manhattan of New York evenly divided the credits of 90 percent of the $192,111,000 estimated for the American equipment required for the construction of a plant to produce trucks and engines on the Kama River in the town of Naverenjnaya Chelny, 550 miles east of Moscow. This is a 12-year loan to be repaid in 24 semi-annual installments beginning in 1977.
In the second agreement, Export-Import Bank and Wells Fargo Bank of New York and Wells Fargo Bank of San Francisco will each provide 45 percent of the total of $6,893,138 to be used by the USSR to construct a plant which will produce tableware and dishware for consumer use. This is to be repaid in 20 semi-annual installments beginning in 1976. The location of the plant was not announced.
The third agreement, due to be signed in 1973, will have the Export-Import Bank extending 45 percent of the $25,237,000 in U.S. sales of 500 submersible electric pumping units to Machino-import, a Soviet importing firm. Seven American private banks will extend an equal amount of credit. Repayment is to be in 14 semi-annual installments beginning in 1974.
The signings at the Export-Import Bank offices here were conducted as strength developed on the Hill in favor of the pending legislation in both houses of Congress that would forbid such agreements by the U.S. agency unless the Soviet government adheres to free emigration. Support for the Jackson amendment grew to 76 Senators today when Sen. Peter Domenici, freshman Republican from New Mexico, became a sponsor. He was the second Republican in two days to join the list. Sen. Hiram L. Fong of Hawaii announced his sponsorship yesterday.