Evening star., 1942-03-03
Brazil Gets 100 Million
To Bolster Output Of
Strategic Materials
Credits for Rubber, Iron,
More Leose-Lend Arms
Provided in Pucts
By GARNETT ID. HORNER.


The United States and Brazil
agreed today on the details of a
far-reaching cooperative pro-
gram to stimulate Brazilian pro-
duction of strategic materials
and bolster defenses of the larg-
est country in South America
against possible Axis attack.
A series of formal agreements,
carrying forward to 8 new high the
practical application of long-stand-
ing principles of inter-American SOL
idarity. were signed here by Amer
lean and Brazilian officials. They
provide:
l. A 100000, 900 credit from the
United States Export-Import Bank
to assist in program for the
mobilization of the productive re-
sources of Brazil"
2. Expanded assistance In the
form of American military equip
ment to Brazil under the Lease
Lend Act.
2. Establishment of a IS 900 900
fund by the United States Rubber
Reserve Co. to be used in collab-
grafton with the Brazilian govern
ment in developing rubber produc-
ton in the Amazon Valley and ad-
jacent regions, the rubber to be
purchased by the Rubber Reserve
Co. for at least five years.
Answer to Hitlerism."
I. Assistance from the United
States Metals Reserve Co. in the
development of the Itabira Mining
Properties and the Victoria -Minas
Railroad, with arrangement for the
resulting production of high-grade
iron ores to go to the United States
and Great Britain. A total Of $l4,-
000, 900 was to be earmarked for
completion of the railroad.
Signing of the agreements was de-
scribed by Acting Secretary of State
Welles as lone of the concrete an
sWers of Brazil and of the United
States to Hitlerism and the other
declared enemies of the liberties of
the Americas, of Christian ciyiliza-
ton and of mankind itself"
The first three agreements were
signed at the State Department by
Mr.. Welles, Carlos Martins. Brazil
ian Ambassador, and DR.. Artur de
Souza Costa, Brazilian Minister of
Finance, who has been negotiating
here for several weeks. DR.. de Souza
Costa, officials of the Export
Import Bank and the Metals
Reserve Co., and British Ambas-
sador Lord Halifax signed the
agreement concerning the Brazilian
mining and railroad development.
The British signature was needed,
1t was explained, because that coun-
try will receive much of the iron
ore production.
Second Lease-Lend Fund.
How much money was involved In
the lease-lend agreement was not
disclosed. 1t was signed less than
six months after Brazil and the
United States entered into a $780,
600 600 leaSe-lenQ pact
The Amazon production develop
ment is designed to increase pro-
duction of bauXite, tropical vege-
table oils, drugs and other strategic
products. However, the greatest ef-
tort will be expended in attempting
10 develop the Brazilian rubber sup
ply to offset as far as possible the
loss of rubber from the East Indies
The Victoria -MinaS Railroad will
open up a tremendous district OF
rich mineral deposits. The railroad
is 375 miles long and Brazilian Off
cials said they hoped to be able to
move 100000 tons of iron ore from
the mines to the seaport Of Vic
toria each year.
The railroad will also open up the
Rio Doce Valley, rich in both agrl-
cultural and mine products.
Under the agreement involving
the $1,000 100000 credit, Brazil pro-
poses establishment of a new gov
ernment organization to promote
the development of strategic mate
rials," examining and putting into
effect "all feasible projects"
Brazil to Supply Some of Money.
Brazil would supply some of the
funds required and draw on the
United States credit only as needed
in connection with specific projects.
In announcing conclusion OF the
agreements, Mr. Welles said the ad-
ditional lease-lend assistance to
Brazil would enhance the security
of the entire hemisphere" by
strengthening Brazilian defense.
DR.. de Souza Costa hailed the
agreements as significant not only
because of their concrete objectives
of increasing the capacity for pro-
duction in order to overcome present
difficulties, but principally in the
sense of countervailing the ideolo-
gies of hate and disunity by the
spirit of solidarity which inspires
the governments of America"