BID FOR TRADE IN SOUTH AMERICA

Press, Volume LXXV, Issue 22657, 11 March 1939, Page 15

BID FOR TRADE IN SOUTH AMERICA

Announcement Made In Washington

U.S. AGREEMENT WITH BRAZIL Credit Advances

To Be Made

CtTNITND PRIII ASSOCIATION— COPmsn.)

(Received March 10, 10 p.m.)

WASHINGTON, March 9,

What is considered to be a major bid by the United States to stem totalitarian trade infiltration in South America is seen in the announcement of the signature of a treaty with Brazil under which the United States will make advances of 120,000,000 dollars to end the necessity for barter.

Mr Roosevelt will ask Congress to approve an advance of 50,000,000 dollars in gold for 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 the remaining 20,000,000 dollars is to enable Brazil to discontinue the unofficial control over her foreign exchange arrangements.

Brazil will recommence the interest payments on its dollar bonds. The agreement is believed to be the forerunner to a similar treaty with other Latin-American countries.

EXPANSION AIMS OF U.S.

ALLEGATION BY GERMAN AMBASSADOR (IXDXPEKOEKT CABLE SERVICE.) (Received March 10, 10.30 p.m.) BERLIN, March 10. Major-General Faupel, the first German Ambassador to General Franco, in a speech at the German Academy, said that the agitation in the United States against the totalitarian States was designed to camouflage American expansion aiifls in Spanish-America and to secure the domination of the dollar in South America, where the United States claims were unfounded, either geographically, culturally, or economically. Major-General Faupel added that Germany should send teachers, doctors, and scientists to South America, and also use the radio, films, and newspapers there to counteract the United States propaganda. ,