811.51632 National City Bank/32: Telegram

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

33. Department’s 39, June 3, 1 p.m. Minister of Foreign Affairs has been ill for 6 weeks but yesterday discussed with President Washington Luis the advantage of settling promptly the amount of the fine levied on National City Bank, whom he informed that the bank was contemplating increasing its branches in Brazil and had rendered considerable service to São Paulo in subscribing $5,000,000 toward the recent coffee loan. He stated also that the solution of the matter was of interest to the American Government.

The President subsequently received me in audience during which I emphasized the necessity of a rapid solution. The Minister of [Page 473] Finance who has been out of town on account of ill health, also, will return in a few days when the President will confer with him relative to action.

The President recognizes the exaggerated nature of the fine and the services which the bank has performed in the development of this country. If the Secretary should talk over the matter with Dr. Freitas Valle30 and suggest that the latter should send a telegram to the Brazilian Foreign Office emphasizing the desirability of a rapid despatch of this matter, impetus would be given thereto.

  1. Member of the Brazilian Foreign Office, then attached to the suite of President-elect Prestes, who visited the United States in June 1930 in order officially to return the visit which Mr. Hoover made to Brazil in December 1928. For an account of Senhor Prestes’ visit, see Department of State, Press Releases, June 14, 1930, pp. 292–297.