Testimony before the House Banking Committee today disclosed that huge secret loans had been given by the United States Export-Import Bank to finance arms purchases by the Arab states.
Witnesses from the Bank and from the State Department were questioned by the committee in an attempt to elicit the details of the so-called “Country X” loans that helped pay for the Arab military buildup. Witnesses said some funds were also made available to Israel for arms purchases.
The purpose of the bank is the granting of loans to facilitate American exports. Yet the testimony today disclosed that almost 36 percent of about $1.5 billion loaned since 1963 had gone to help countries buy munitions. The Bank refused to disclose the identities of the Arab beneficiaries publicly for “security reasons” and such loans were designated “Country X” loans.
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