811.516 Export-Import Bank/5–1448: Telegram
The Secretary of State to the Embassy in Brazil
371. For Conf info Emb. Board Directors Eximbank May 12 approved application Baldwin Locomotive Co for commitment to finance sale 130 locomotives for Departamento Nacional de Estrada de Ferro. Value order about $14 million of which Eximbank will agree finance $8,330,000. Obligor to be National Dept Railways and obligations to be guaranteed by Banco do Brasil. Credit to be amortized over 5 year period starting six months from date delivery with interest 4 percent. Application approved with provisions that this commitment also available any other US bidders for same business; that it be automatically cancelled at end three months if not accepted by a US manufacturer subject however to another three months extension upon request interested bidder; and that financing be available until Dec 31 1949. It must be clearly understood that is merely commitment to Baldwin to permit them present offer of sale to Railways. No order has yet been placed and Brazil authorities not aware this proposal. Bank strongly recommends and Dept concurs that this info not be repeated outside Emb.