Foreign Relations of the United States: Diplomatic Papers, 1942, The American Republics, Volume V

832.51/2031b: Telegram

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

Washington, July 3, 1942—midnight.

1775. The Treasury proposes to sign the stabilization agreement with Brazil on July 6 at which time the following press release will be issued:

“The Secretary of the Treasury, Henry Morgenthau, Jr., and Minister Fernando Lobo, Chargé d’Affaires of the United States of Brazil in Washington, today signed an agreement extending to July 15, 1947 the stabilization agreement⁶² entered into 5 years ago.

“Under this agreement, as extended today, the United States will make dollar exchange available to the Government of the United States of Brazil for the purpose of stabilizing the Brazilian milreis–United States dollar rate of exchange up to a total amount of $100,000,000 and will sell gold to the United States of Brazil at such times and in such amounts as the Brazilian Government may request, also to a total amount of $100,000,000. In the agreement as originally drafted these two amounts were $60,000,000.

“The extension of this agreement between the treasuries of the United States of America and the United States of Brazil and the increase in the facilities made available to Brazil under the agreement are a further evidence of the close and friendly relations existing between the two countries and constitute an assurance of continued cooperation between the two treasuries. The friendship and understanding symbolized by this and other agreements with our great sister republic in South America promise much for both a joint attack on the problems of the war and a solution for our common problems in the peace.”

The foregoing is sent to you for your information and not for release to the press in Brazil.

Hull

62. See Treasury Department Press Release No. 10–78, July 15, 1937, Foreign Relations, 1938, vol. v, p. 344.