811.516 Export-Import Bank/7–1248: Telegram
The Secretary of State to the Embassy in Brazil
515. Because of beneficial influence of increased US tourist and commercial travel in promoting trade and alleviation of dollar exchange shortages, Dept has been supporting program of Intercont Hotel Corp subsidiary PanAm Airways to build chain of hotels, including Rio and São Paulo with assistance Eximbank financing up to [Page 393] 50 percent total cost acceptable projects. Dept hopes for acceleration of program but understands that great difficulties have been encountered in enlisting participation of local capital. Would appreciate report on any impeding factors plus suggestions as to actions which might overcome them.
While it is not US policy to encourage other govts to penetrate sphere private business, there was no objection to Venezuelan Govt participation in Caracas hotel project which Eximbank recently approved.
Dept support would also be given hotel projects other companies with sound economic and financial basis and with adequate assurance efficient management.
Emb is authorized to convey to appropriate officials strong interest of US in hotel projects and is further authorized to use its good offices to advance meritorious projects.