882.24/432: Telegram

The Secretary of State to the Ambassador in Brazil (Caffery)

682. Your 1015, August 5, noon, and 1078, August 13, 7 p.m.89 The Department is today sending you an air mail instruction transmitting a revised draft of the Lend-Lease Contract89 to be taken up with the Minister of Foreign Affairs. The new draft is completely reciprocal with respect to Articles VI and VII (text of July 11 instruction90), modifies the second paragraph of Article III, and in several other ways brings in the Government of Brazil and the President of Brazil. The question of the word “fiscais” is one of the Portuguese translation, and there would be no difficulty in changing it to “financeiros”.

With respect to the repayment the Department is agreeable to equal annual amounts of $5,833,333.33 over 6 years. It would not be practicable to extend the credit to 7 years. The original proposal was based on the fact that the Export-Import Bank had extended to the Bank of Brazil a credit of $12,000,000 to help in financing such arrangement. The Bank and the Department believe that this credit may continue on the books of the Bank, but that any utilization of this credit should be subject to new discussion with the Export-Import Bank.

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