Foreign Relations of the United States: Diplomatic Papers, 1943, The American Republics, Volume V

740.00112A European War 1939/34105: Telegram

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

Rio de Janeiro, July 23, 1943—6 p.m.
[Received 9:32 p.m.]

3558. Reference Embassy’s telegram 3557, July 23, 6 p.m. concerning financial assistance by Export-Import Bank in nationalization program. In this connection reference is made to the Department’s circular instruction of June 18, 1943, on the same subject and especially to section IV of the enclosed memorandum⁹⁴ concerning the mechanics of financing.

The Embassy assumes that in view of the negotiations previously conducted with the Bank of Brazil and the assurances formally extended to the Brazilian Government, it will be possible to set up a more simplified procedure than that outlined in the memorandum for the handling of individual cases arising in Brazil. The Embassy believes that it would be excessively complicated and time consuming to refer to Washington for approval the details of each specific case in which financial assistance will be required as suggested in this memorandum and that such procedure would be inconsistent with certain of the provisions in the memorandum already delivered to the Brazilian Government, The Export-Import Bank may wish to designate a representative in Rio de Janeiro to handle the business aspects of each individual case with the Bank of Brazil so as to avoid lengthy correspondence with Washington and it also seems essential for the Department to delegate adequate discretion to the Embassy to pass upon the political suitability of proposed purchasing groups desiring financial assistance.

It is of course understood that the Embassy would continue to submit full recommendations for deletion of individual cases from the Proclaimed List for approval by the Interdepartmental Committee.

Caffery

94. Circular instruction of June 18 and its enclosure not printed. The instruction indicated that local controls to eliminate undesirable personnel were desirable for essential industries and that United States funds would be available to promote this objective. Section IV of the memorandum denned the conditions in detail by which United States aid would become available, such as the price to be paid, the advancement of capital, the nationality of the purchaser, and the blocking of the proceeds of the sale. (740.00112A European War, 1939/32475a)