832.516/282: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 4:25 p.m.]
211. The President of the Export-Import Bank has arrived at a purely unofficial understanding with the Bank of Brazil under which the Bank has agreed to guarantee payment of credits for the sale of American products to the Brazilian Government. This represents an entirely new practice of the Bank of Brazil which has consistently in the past denied extending such facilities. This plan covers only purchases made in the United States and is restricted to those which are in part at least financed by the Export-Import Bank.
The Bank of Brazil informs me that in view of the European situation it is planning to dispose of British bonds to the nominal value of 1,000,000 pounds and to buy a corresponding amount of United States Government bonds.
The Bank informs me further that it is seriously considering severing relations with the British banking firm of Rothschild with which it has been doing business for 30 years. The Bank says it resents what it terms the highhanded attitude of Rothschilds toward Brazil and desires to establish closer connections with American banks.
Please inform Department of Commerce.