832.51 Bank of Brazil/1: Telegram
The Secretary of State to the Ambassador in Brazil (Caffery)
112. Your 211, September 6, and 219, September 21. The reports transmitted by Pierson in regard to his discussions of possible credits from the Export-Import Bank to the Bank of Brazil have been submitted to the interested officials of the Government in accordance with his request. The implications of these proposals from the standpoint of broader commercial policy will have to be given careful consideration, in any case. Pending submission by him of concretely defined proposals it is difficult to see how the Bank could make decision.
In the meanwhile, the Treasury is concerned lest confusion arise as between proposals which Pierson has been discussing and those which have been under consideration as between the Bank of Brazil and the Federal Reserve Bank as agents of the United States Treasury, the latest phases of which are contained in your 203 of August 25 and the Department’s 102 of September 3. The Department shares this sense of possible confusion. The Brazilian authorities will no doubt be aware that the transaction discussed between the Bank of Brazil and the Treasury could be executed more simply and expeditiously than any other. Has any reply been received from the Brazilian authorities to the Federal Reserve letter contained in our 102? Please inform the Bank of Brazil that if they wished to send a representative to this country to conclude this arrangement, he would be assured of the immediate attention of both the Federal Reserve and the Treasury.