Salt Lake Telegram | 1939-02-16 | Page 3 | U. S., Brazil Study Trade Improvement, Sale of American Gold, Currency Aids

Lawmakers Greet South American Diplomat V,- .--a VICE PRESIDENT ENTERTAINS FOH VISITING STATESMAN John N. Garner, left, and Oswald Aranha, right Between them li Senator Theodora Green (D., R. L) and standing is Senator Albaa Barkley U. S., Brazil Study Trade Improvement, Sale of American Gold, Currency Aids WASHINGTON, Feb. It UTS A four-fold program of trade Improvement Im-provement waa said by usually well Informed persona today to ba Involved In the current conferences confer-ences between Foreign Minister Oswaldo Aranha of Braxil and United States officials: 1. Credits from ths export-Import bank to United States firms selling merchandise or construct ing public works in Brazil, and to Unltsd States Importers buying B rati lien products which do nob compete with domestio articles. I A sale of gold by ths United States treasury to Brail L a. An arrangement to put certain cer-tain facllltiea of tha treasury's 12,000.000,000 stabilisation fund at the disposal of Braxil In stabilising stabilis-ing Its currency. 4. Technical assistance from Unltsd Statu experts to Braxil la setting up a central banking system sys-tem similar' to ths American federal fed-eral reserve system. Aranha, who first became acquainted ac-quainted with Washington aa Brazilian ambassador, la conferring confer-ring dairy with Secretary Hull, Secretary Morgenthau and other officials, and yeeterday visited President Roossvstt. Fiscal officials of this government govern-ment view tha United Statea-Brasil Statea-Brasil problems largely aa technical tech-nical ones, since Brazil haa supported sup-ported Secretary Hull In his efforts ef-forts to bind the American republics re-publics together In a defensive and acopomio unit Brazil was said to be glad to trade with this country aa much as possible. Lack of sufficient foreign monies to pay for foreign goods waa described aa the reason Brazil entered a barter agreement with Germany a few years ago. Officials of tha stabilization fund wara represented aa favorable favor-able to acting as agent for Brazil, as ths fund does for England and Franca, In foreign exchange market mar-ket operations to stabilize the Brazilian mllreis. This would Involve, for Instance, tha fund's purchase of mllreis In the New York market whenever asked to do ao by Brazil at Its own expense. Secretary Morgenthau Morgen-thau haa aald it la tha policy of tha fund 'not to risk its own money on foreign currencies. . On tha Brazilian and of tha currency cur-rency problem, the experts envision en-vision a central bank of Brazil created with sufficient gold to ba purchased from the United States to stabilize the mllreis and free It from tha restrictions which now hamper Its conversion Into forslgn currencies when needed by merchants. Tha central bank and gold "sale Ideas were formally approved when another Brazilian financial mission waa hsrs in 1837, but wars temporarily abandoned later in tha same year when President Vargaa of Brazil reorganized his government