Yilma Deressa Requests Reconstruction Credit in Washington
12 July 1943 to 2 August 1943
British forces entered Addis Ababa in April 1941, and Haile Selassie returned the next month. The Anglo-Ethiopian agreement of January 1942 left British officials with important roles that Ethiopian ministers increasingly resented. Seeking American money and advisers offered a way to rebuild the state while widening its choices beyond dependence on Britain. [2]
Ethiopia's vice minister of finance, Yilma Deressa, asked Washington for $50 million in credit on 12 July 1943. He proposed $40 million for goods and development, with another $10 million in silver under Lend-Lease. He argued that tax revenue could barely meet ordinary government expenses after the war against Italy, leaving little for reconstruction. [1]
Deressa proposed settling displaced farmers, guaranteeing markets for crops, repairing roads and bridges, and employing technical advisers. He also drew attention to currency shortages and unstable exchange rates. [1]
Deressa presented a broader memorandum to President Franklin Roosevelt the next day. By 2 August, Secretary of State Cordell Hull supported financial assistance in principle but doubted that the full sum was practicable. The State Department was taking the request to the Treasury and the Export-Import Bank for consideration, leaving the scale and terms of financing unresolved. [2]
Deressa argued that better transport and agricultural production could supply goods for the Allied war effort as well as restore livelihoods. [1] [2]
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Sources
- Yilma Deressa requests an Ethiopian reconstruction loan
Document 113, letter and enclosure, pp. 101-103; corrected enclosure described in footnote 29
Deressa's letter and enclosure dated July 12, 1943; the request begins the dated episode.
Document heading, request, signature, and enclosure
- Hull assesses Ethiopia's requests for Roosevelt
Document 115, opening paragraph and final financial-assistance paragraph, pp. 106-108
Document 115: 1941 British campaign and imperial return; Anglo-Ethiopian agreement of January 1942; Ethiopian requests to replace British advisers and obtain American help
Hull's memorandum to Roosevelt dated August 2, 1943; the assessment closes the dated episode.
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Cite This Article
Yilma Deressa Requests Reconstruction Credit in Washington. Chanceries Diplopedia. Record 79ce574ffb9d07558142. https://chanceries.org/research/history/ethiopia-reconstruction-credit-1943/