LOAN TO BRAZIL

Wairarapa Times-Age, 11 March 1939, Page 7

LOAN TO BRAZIL

ACTION BY UNITED STATES

STEMMING TOTALITARIAN INFLUENCE. DOING AWAY WITH NEED FOR BARTER. By Telegraph—Press Association Copyright. WASHINGTON, March 10. What is considered to be a major bid by the United States of America to stem totalitarian trade infiltration in South America is seen in the announcement today of the signature of a treaty with Brazil under which the United States will make advances of 120,000,; 000 dollars in order to end Brazil’s need to engage in barter. President Roosevelt will ask for Congressional approval for an advance of 50,000,000 dollars in gold for the purpose of forming a reserve by which Brazil will establish a Central Reserve Bank.' Brazil will repay this from her own gold production. . ■ Credits of another 50,000,000 dollars will be extended to facilitate Brazilian purchases of United States’ products, and 20,000,000 dollars in order to enable Brazil to discontinue her unofficial control over her foreign exchange arrangements. Brazil, in return, will recommence interest payments on her dollar bonds. The agreement is believed to be the forerunner to a similar treaty with other Latin American countries. GERMAN RESENTMENT. AMERICAN GOOD FAITH QUESTIONED. BERLIN, March 10. Major-General Faupel, first German Ambassador to General Franco, in a speech to the German Academy today, said that the agitation in the United States against the totalitarian States was designed to camouflage American expansion aims in Spanish America and to secure the domination of the dollar in South America, where Un:-id States claims were unfounded either geographically, culturally, or economically. General Faupel'added that Germany should send teachers, doctors, and scientists to South America and should also use radio, films, and newspapers there to counteract United States propaganda.