Memorandum by Mr. Harold M. Midkiff, Division of Brazilian Affairs

President Dutra signed a resolution which orders the installation in Brazil of large petroleum refineries utilizing funds which Brazil owns in France amounting to approximately 4 billion francs, representing $22,000,000. He ordered: (1) the acquisition in France of a large refinery of 45,000 barrels daily capacity to be installed at Belem; (2) an increase in the capacity of the National Petroleum Council’s refinery now being constructed at Bahia from 2,500 to 5,000 barrels per day, presumably with funds frozen in France also; (3) the purchase of 50 locomotives in France; (4) the opening of necessary credits for acquisition in Czechoslovakia, where Brazil has $13,000,000 of frozen funds, of a refinery with a capacity of 20,000 barrels per day to be constructed at Sao Paulo; and (5) the opening of direct or indirect credits of $8,000,000 to $10,000,000 for the acquisition of a refinery of 10,000 barrels per day to be installed at Rio de Janeiro.

Source: Brazilian Embassy Radio Bulletin of 10–4–48.