832.5151/529: Telegram

The Acting Secretary of State to the Chargé in Brazil ( Gordon )

25. Your 41, February 15, 6:00 p.m. We are informed that the Brazilian Mission conferred with various banking interests in New York, but left without having obtained promise of a credit to liquidate deferred balances. For your confidential information, the National Foreign Trade Council has been discussing with the Export-Import Bank the possibility of the latter’s discounting notes which might be issued by the Bank of Brazil to Americans for their deferred balances in Brazil. The attitude of this and other Departments of the Government, which would have to be consulted with regard to such an arrangement, can not now be stated. The Department will keep you advised of developments in this situation.

Phillips