832.6511/78

The Secretary of the Treasury (Morgenthau) to the Secretary of State

My Dear Mr. Secretary: I have considered carefully the suggestion in your letter to me of February 24, that the possibilities relative to the development of a local steel industry in Brazil should be explored by the so-called Committee of Three.

In my view, the Committee of Three was dissolved upon the conclusion of the temporary settlement of the Colombian debt last month. Accordingly, I do not feel able to participate in the Brazilian steel [Page 605]matter. Further, in so far as purely technical cooperation might be desired, I feel that, due to the press of business, the Treasury should not assume a new additional burden of this nature. If the Department of State desires the help of other departments or agencies of this Government in the consideration of this matter, I venture to suggest that the Export-Import Bank and the Department of Commerce are the more appropriate agencies.

I am sending copies of this letter to Mr. Jones and Mr. Noble.

Sincerely,

H. Morgenthau, Jr.