Memorandum by the Assistant Chief of the Division of the American Republics (Briggs)

Discussions with Senhor Aranha have resolved the matter of economic cooperation between the United States and Brazil into three principal categories:

The provision of credits to enable Brazil to clear up exchange arrears due American exporters.
The extension of a line of credit to assist the Banco do Brasil, or a central bank if one is established, in regularizing seasonal fluctuations in the milreis exchange. Belated to this is the whole question of the creation of a central bank.
Cooperation in a broad plan for the development of Brazilian production.

The first and the financial aspects of the third are questions which seem to fall naturally within the province of the Export-Import Bank and considerable preliminary discussion has already taken place with Mr. Jesse Jones.10 Little additional progress can be made, however, pending the resolution by Congress of the matter of the extension of the charter of the Bank.

The second topic, on the other hand, falls clearly within the scope of the Treasury, and in this field discussions could profitably be resumed at once. I believe that it might be appropriate to suggest this course of action to the Secretary of the Treasury.

Ellis O. Briggs
  1. Chairman of the Board of Directors, Reconstruction Finance Corporation.