832.51/4–2246: Telegram

The Chargé in Brazil (Daniels) to the Secretary of State

restricted

737. For Martin Export Import Bank, from Gaston.5 Rio Doce6 funds for reasons that seem apparent in terms of contract. Therefore, I strongly suggest that in conversations with Macedo Soares plain intimations be given that we should like to see more action on Rio Doce before we commit ourselves further in any amount and I think we should stick to this position even though Soares rejoins, as is true, that he personally has nothing to do with Rio Doce. [Gaston.]

Daniels
  1. William McChesney Martin and Herbert E. Gaston, President and Vice President, respectively, of the Board, Export-Import Bank.
  2. The Companhia Vale do Rio Doce was organized to handle the reconstruction of the Victoria–Minas Railway and to develop the Itabira Iron Mine. For documentation on the participation of agencies of the United States in the project, see Foreign Relations, 1942, vol. v, pp. 678 691.