811.516 Export-Import Bank/12–1147
The Chief of the Division of Brazilian Affairs ( Dawson ) to the Counselor of Embassy for Economic Affairs in Brazil ( Brooks )
Dear Clarence: With reference to my letter to you of yesterday concerning the Souza Costa negotiations, I now have a little more dope concerning the Eximbank’s attitude. At a meeting of the Eximbank Board yesterday, Martin talked about Souza Costa’s visit to him without saying anything very concrete and indicated that Souza Costa’s approach was itself very vague, as was undoubtedly the case, judging by what he had to say to Thorp. Martin said that a memorandum of his conversation with Souza Costa would be sent to the Department in due course.
Apparently, however, Martin has no sympathy toward any loan to Brazil since he said in the Board meeting that the Eximbank was disposed not to consider any Brazilian loan applications, governmental or private, until the Vale do Rio Doce matter had been cleared up. Thorp took exception to the scope of this practical embargo and the matter was left to be discussed at the next Board meeting.
Best to you,
Sincerely,