The Secretary of State to the Brazilian Minister for Foreign Affairs (Aranha)
Excellency: I have received with genuine appreciation Your Excellency’s very friendly note of March 8, 1939, with reference to [Page 355] the matters which I have had the privilege of discussing with you during your visit to Washington. I need not assure you of the personal satisfaction which it has been for me to cooperate with you in a comprehensive survey of all phases of the questions interesting our two countries, and I am convinced that that the traditionally close and cordial relations which have always existed between the people of Brazil and those of the United States will be materially strengthened as a result of the decisions taken during your visit.
I have noted with especial satisfaction that in your communication under acknowledgement you have enumerated policies and actions which the Government of Brazil, after due deliberation and the considered discussion of its authorized representatives with the authorized representatives of the Government of the United States, is undertaking or intends to undertake in the near future in order to foster continued mutually beneficial economic relations between the United States and Brazil and to develop the national economy and national resources of Brazil. As you well know, my Government is keenly desirous of taking any steps possible in order to continue and expand the economic cooperation between Brazil and the United States.
My Government is pleased to note that it is the intention of the Government of Brazil to establish and maintain a free exchange market for commercial transactions and to facilitate the transfer of an equitable return upon investments made in Brazil by United States citizens under normal conditions in the Brazilian balance of international payments. I am informed that the Export-Import Bank of Washington has found it possible to assist in the facilitation of exchange transactions by extending appropriate acceptance credits in order to provide dollar exchange to meet amounts due American exporters for imports from the United States.
I am also informed that the Treasury Department finds itself heartily in sympathy with the objectives stated in your communication to it regarding the establishment of a Central Reserve Bank, and will be glad to assist your Government in the establishment of such a bank and in its operations, by placing at your disposal its advisory facilities and by the extension of a line of credit. In the latter connection, I understand that the Secretary of the Treasury, with the approval of the President, is informing you that the President is prepared to make a recommendation to the Congress for suitable authorization.
I am further informed that the Export-Import Bank, with a view to cooperating in the facilitation of trade between the United States and Brazil and in the development of Brazilian natural resources, has agreed to consider the arrangement of suitable longer term credits [Page 356] to finance Brazilian purchases of economic equipment in the United States.
Copies of communications in regard to these matters addressed to you by the Secretary of the Treasury and by the President of the Export-Import Bank are enclosed as Appendices A and B.15
The Government of the United States is interested in cooperating with the Government of Brazil in every practicable way in the study and development of agricultural products and production which will complement production in the United States. In this regard, as you are aware, legislation16 has already been enacted which authorizes the loan of experts of the Government of the United States to assist the Government of Brazil in specialized agricultural studies and developments. Plans have also been formulated for surveys of agricultural possibilities, including the development of tropical hardwoods, rubber, and other products, which surveys could readily include the coincidental study of many additional native products of Brazil. Draft legislation which would provide authorization for these surveys is now before the Congress.
In relation to this general program of economic cooperation between the United States and Brazil, I welcome the information that your Government plans to resume payment on July 1, 1939, on account of interest and amortization of the external dollar debt of the Government of Brazil and of the Brazilian States and Municipalities, in accordance with a transitional arrangement, and that it is the hope and expectation of your Government that with the improvement in its foreign commerce which it now foresees a permanent settlement which will be equitable and satisfactory to all interests involved will follow upon the expiration of this temporary arrangement.
I likewise welcome with sincere gratification the assurance that it is the intention of the Government of Brazil to observe a general policy which will encourage the participation of citizens of the United States in the economic life of Brazil.
In reiterating to Your Excellency the assurances of my most distinguished consideration, allow me to add my sincere thanks to you and to the officials of the Brazilian Government accompanying you for the close and valuable cooperation invariably accorded throughout the period of our important negotiations, and to wish you all a safe and pleasant journey in returning to Brazil.