SOUTH AMERICAN TRADE

Greymouth Evening Star, 11 March 1939, Page 7

SOUTH AMERICAN TRADE

U.S.—BRAZIL AGREEMENT. [BY CABLE PRESS ASSN. COPYRIGHT.] 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 oe the forerunner to a similar treaty with other Latin-American countries.

GERMAN ALLEGATION. 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 aims in Spanish-America and to secure the domination of the dollar in Sout. America. where unfounded, eithei geographically, culturally, or econOn Ttla a jor-General Faupel added that Germanv should send teacheis. (.Oi. tors anil scientists to South Amenc.a, and also use the radio, films, and newspapers there to counteract the United States propaganda.