This report is being transmitted pursuant to Section 7(a)(2) of the Export-Import Bank Act of 1945, as amended. I have determined that the authority available to the Bank for fiscal year 1985 is more than sufficient to meet the current estimate of the needs of the Bank. This estimate was based upon the transactions already approved, applications received by the Bank, and projections of the level of business likely for the remainder of the fiscal year.

I am not seeking legislation to rescind any authority of the Bank. Estimates of demand for Export-Import Bank financing could change with continued growth in the U.S. economy and global recovery. In addition, the ability to respond to greater than anticipated demand could be a means to ease the transition from the direct loan to the interest rate subsidy program which I have proposed as an alternative. Therefore, I have concluded that the statutory fiscal year 1985 limit for Eximbank authority should be retained unchanged.

Sincerely,

Ronald Reagan

Note: Identical letters were sent to Thomas P. O'Neill, Jr., Speaker of the House of Representatives, and George Bush, President of the Senate.