Evening star., 1940-09-27
$2o,00o,o0o Loan
To Brazil Will HeIp
Cement Hemisphere
q
Export-Import Bank Will
Advance Money for New
Steel Factory
BY BLAIR BOLLES.

Nation has assigned a loan of $780,
100000 to Brazil for construction of
q steei plant near Rio de Janeiro
The lending agency is the Export
Import Bank, and the borrower is
the Brazilian Siderurgical Plan.
The loan was announced last night
by Jesse Jones, Federal loan admin
istrator. after months of negotia-
ton with a group of Brazilians,
headed by Guilherme Guinle, presi-
dent of the executive commission of
the Siderureical Plan. The cost of
the mill will be about s45, 100000, of
which S25 100000 has been advanced
by the Brazilian government.
This example of the United States
economic cooperation with coun-
tries to the south indicates the type
of undertaking the United States
might finance under the special loan
authority granted the EXport-Im-
port Bank in the bill signed by Pres
ident Roosevelt yesterday, making
available s5oo,OOo,oOO for Western
Hemisphere lending. The compile
ton of the Brazilian deal was ac-
complished Wednesday.
Military Men Coming Here.
The United States is interested in
developing the economies of nations
to the South to as great an extent
as is compatible with our own eco
nomic interests. Heavy industries
are rare in South America. The new
plant will be designed to turn out
annually about 100000 tons of steel
rails, boiler plate and other steel
products, many of which Brazil now
imports.
At the same time the United States
took this step for political and eco
nomic solidarity of the Americas, 1t
looked forward to another aspect OF
hemisphere cooperation, more di-
rectly concerned with hemisphere
defenSe-the arrival here Sunday
and Monday Of 20 distinguished
military leaders and observers from
nine South American countries at
the invitation of the United States
Army chief of staff, Gen. George c..
Marshall. They will be in the United
States until october is.
Material for the Brazilian steel
plant will be bought in the United
States. according to the agreement
reached through the exchange of the
Jones-Guinle letters. The factorys
construction is TO be completed in
about two and a half years. The
project calls for the closest CO.
operation between the two countries
primarily interested.
Setup Is Outlined.
DR.. Guinle stated in his letter:
we will establish an Office in
Pittsburgh or other suitable center
with corps of engineers and eXecu-
tives to handle the design of the mill,
purchase OF equipment and con-
struction of the plant.
This organization will be COM
posed of Americans and Brazilians
acceptable to both parties. We will,
If you think it advisable establish
supplemental or consulting Office in
Washington or New York. All of
this, of course. will be at our ex-
pense and become part of the cost
Of the mill"
The mechanics of the loan calls for
an initial commitment from the
Export Import Bank of s10,OOO,OO0,
to be increased to s20,000000 as the
work advances. The loan will be
payable in 20 semiannual INSTALL
ments, the first of which is to become
due three years from the date of the
first advance. Interest, payable
semiannually, at 4 per cent. will
made.
The military visitors coming this
week end are coming from Bolivia
Colombia, Costa Rica, Dominican
Guatemala, Honduras,
Panama, Peru and Uruguay. When
they leave here they will go to the
Panama Canal.
To Inspect Posts.
During their visit they will be-
come acquainted with the national
defense program and inspect mill
tary establishments and some of
the principal posts, such as Lang
ley Field, Fort Benning, Ga, Barks-
dale Field, La, San Antonio, Fort
Sill, Okla. Fort Knox, KY, Detroit
and New York.
Gen. Marshall will give a recep-
ton to the visitors at his quarters
at Fort Myer Tuesday afternoon
and a dinner that night at the
Mayflower Hotel. Boiling Field will
be inspected the following morning
and the group will then fly to Lang
ley Field.
A second group of Latin Ameri-
can officers from II other countries
will begin similar tour from Wash
ington on October Is.
Members of the first group are:
Gen. Felipe Rivera, chief OF staff Bo-
livia: 1t Col. Victor Acosta, Bolivia:
Gen. Luis M. Castaneda chief of staff,
Colombia; 1t. Col Ernesto Buena-
ventura, chief of air corps, Colon
bia; 1t Col. German Ocampo, su-
perintendent of military academy,
Colombia; Maj. fernando Mora,
Colombia Col. Manuel Rodriguez
Torra, deputy chief of staff, Costa
Rica: Col Guillermo Guardia Mora,
military secretary to the President
of Costa Rica; 1t. Col Antonio
Leyba Pou, Dominica n Republic;
Mai. Frank Felix Miranda, Domini-
can Republic; Maj. Gen. Rodolfo A.
Mendoza, chief of staff, Guatemala;
It.. Col Enrique Peralta, Guate-
mala; Gen. Leonidas Pineda, under
secretary of war, Honduras; Gen.
Calixto Carias. Honduras; 1t. Col.
Rogelio Fabrega, deputy chief of
national police, Panama; Capt.
German Lemm, Panama; Col.
Felipe de la Barra. chief of staff,
Peru; 1t. Col Jose M. Tamayo,
Peru; Gen. Marcelino Bergalli,
commander general of army. Uru-
quay. and 1t. Col Oscar D. Gestido,
director Of military aeronautics,
Uruguay.
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