Memorandum by the Economic Adviser (Feis)

On Monday, April 2, Mr. Edwin C. Wilson, Chief of the Latin-American Division, and myself, took Mr. Boucas over to a conference with Mr. Peek52 with regard to the direction of the exchange situation as between ourselves and Brazil. Mr. Boucas outlined very generally and tentatively an idea whereunder if one of the Export-Import Banks would be in a position to extend to the Bank of Brazil a certain revolving credit of about nine months’ duration, then the Bank of Brazil might be willing to arrange as security for this credit—that some or all of the dollar exchange arising out of the sales of coffee in this country should be turned over to the Export-Import Bank which could then use it for the discharge of its credit. This might form a method of securing more advantageous treatment and increased opportunities for American export trade under the exchange control.

The idea seems to contain a genuine possibility deserving further study. Mr. Peek said that the third Export-Import Bank, the one that would engage in general trade operations, had not yet been created but as soon as it was attention would be paid to this possibility.

  1. George Nelson Peek, Special Adviser to the President on Foreign Trade and President of the Export-Import Bank.