811.51632 National City Bank/15: Telegram

The Acting Secretary of State to the Ambassador in Brazil ( Morgan )

14. Your 10, March 12, 3 p.m. Please say to the Minister for Foreign Affairs that the Department very much appreciates the interest he has taken in the National City Bank matter and the efforts he is making to bring this matter to a satisfactory conclusion. Department feels, as evidently His Excellency the Minister for Foreign Affairs of Brazil does, that this is a matter of very great importance in the relations between the United States and Brazil, which have been increasing rapidly and which this Government desires to strengthen in every proper way. In this connection it is interesting to note that in 1913 Brazilian imports were $324,000,000, $50,900,000 of which came from the United States, or 15.7 per cent. The Brazilian exports in that year were $315,700,000, of which $101,800,000, or 32.2 per cent went to the United States. The National City Bank entered Brazil in 1915 and since that time has been helpful in promoting trade relations between the United States and Brazil. Although not claiming of course that all the increase since that date is due to any one institution it is interesting to see not only how trade has increased but also the increased proportion of Brazil’s trade that is done with the United States. In 1928 Brazilian imports were $442,290,000, of which $117,510,000, or 26.6 per cent came from the United States. Brazilian exports were $475,242,000, of which $215,992,000, or 45.4 per cent went to the United States. Also in 1913 Brazil had outstanding loans to the value of $504,335,000, all from European sources. In 1928 Brazil had outstanding loans of £106,970,000 Sterling, 333,577,000 Francs, and $152,800,000. The United States share is thus somewhat over 20 per cent of the whole.

Banking, of course, plays the most important part in trade and economic relations between two countries and it is therefore very important to guard against anything which might disturb that relationship. The interest and action which the Minister for Foreign Affairs has taken in this very important matter is another instance of his friendly disposition and desire to cooperate with the United States which is very highly appreciated and reciprocated by this Government.