832.6511/218

Press Release Issued at Rio de Janeiro, March 18, 194311

Brazil’s Foreign Minister Oswaldo Aranha and American Ambassador Jefferson Caffery witnessed today the signing of two economic agreements12 of outstanding importance in Brazil’s industrial development and the joint war effort.

The agreements, reached after several weeks of negotiations, conducted in the most cordial atmosphere, between Brazil’s Finance Minister Arthur Souza Costa and his colleagues on the one hand, and Mr. Warren Lee Pierson, President of the Export-Import Bank of Washington, and the American Embassy, on the other, were executed at the Finance Ministry shortly before noon today.

The first agreement signed provided for a new twenty million dollar credit of the Export-Import Bank for the equipment and construction of Brazil’s national steel plant at Volta Redonda. This credit is in addition to the previous $25,000,000 line of credit, deriving from the basic Brazilian steel agreement reached in September, 1940, between Mr. Jesse Jones, Federal Loan Administrator and Secretary of Commerce of the United States, and Dr. Guilherme Guinle, President of the Companhia Siderúrgica Nacional.

At a time when the needs of the fighting fronts are demanding the maximum of production and energy, this new credit stands as clear evidence of the recognition by the United States Government of the fundamental importance of President Vargas’ steel program to Brazil’s industrialization and its share in the great war effort.

The second agreement formalized in a contract the accord for the development of the Itabira and Vale do Rio Doce enterprises, reached at Washington last year between Finance Minister Souza Costa, the United States Government and representatives of the British Government.

The carrying out of the program for the exportation of Itabira Iron ore will become not only a highly important contribution to the war effort of the United Nations, but also a very great step in the peacetime development of the rich resources of the state of Minas Gerais.

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Mr. Pierson, during the course of his visit to Brazil to discuss the foregoing arrangements, had occasion to visit both Itabira and the works at Volta Redonda. He expressed, on each occasion, his enthusiasm at the progress which, in spite of great difficulties, has been achieved by the steel company and the Companhia do Vale do Rio Doce in the development of their respective programs. The dynamic activity and talent of Colonel Edmundo de Macedo Soares, Technical Director of the Cia. Siderúrgica Nacional, and Dr. Israel Pinheiro, President of the Companhia Vale do Rio Doce, and their colleagues, Mr. Pierson stated, have carried the projects forward with efficiency and speed.

  1. Copy transmitted to the Department by the Ambassador in Brazil in his despatch No. 10462, March 19; received March 29.
  2. Not printed.