Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-06-26

rs providing reasonable ga sft
tees that investors me<@s1 sse Asss
To lake os4s shs4y earnings As
other would eliminate ae>Eess~ taa
alton on United States invest
u,enix N Tie southern t<ssSsaiiS
Other sub lsxlx 10 be taken tfs as~
pvxex assafas scg increasing taEs az
commerce and supplying hasA3r
LAT industry and agriculture sath
technical ASSISTANCE
Protests Delay Signing
Significantly enough Lie iaaks
got under way Just about the ttssar
Great Britain was tfsitas la ~w
I'D Argentine trade IN ai4atefa n!
barter treaty for ave YEAR, faa~
pact. the actual signing Of sttaea
has bern DELAYED because u HEAT
ed protests IN the United Stal~s
cougrwss and the stFoneest KIND
Of representations ns The SLATE
Department would asrniirly elm g.
mate the Argentine market feF
numbers OF our products, such a.
oil and agricultural machinery
Now come rtlnars from RIO DE
JAneiro indicating tina. The Brit
ish have been planning 10 discuss
q similar treaty with Braxll In
fact, some of our exporters and In
vestorx rs well As high osretais
are already concerned With The
possibility that. II the agreement
with Argentina goes through. even
with considerable notifications
Brazil and other Latin American
countries may Join the procession
10 what Ii already being called
the barter counter
The Brazilian United States ne
aotiations also coincide with plans
for the presentation 10 Congress
Of President Humans Bold. New
Program. or Point Four. q pro
gram definitely designed 10 pro-
vide such = country rs Brazil with
technical and industrial know
how and for the encouragement
Of private United States capital In
assisting the Brazilian nation 10
expand It's industrial and asrlcul-
tufal production.
Some fiandieaps
Unfortunately, from the Bra
ALLAN standpoint. the conserss s.
tons are taking place on the eve
OF q general election and ut .
time when the political pot In
the Southern Republic Is already
boiling furiously. There Ia q seri-
Gus fight on the Dutfa admins
tration and on all plans of his
government for social and eco
nomic progress, No holds are
barred by the opposition, Such q
serious campaign has been made
against the policies OF the Minis
ter of Finance. Pedro correa .
Castro. Just As he was about Ia
leave for the United States "a
head the group OF Brazilian rep
resentatives In the Washington
talks. that he was forced 10
resign.
The United States Brazilian
neg citations will also b handi-
capped BY the somewhat casual
progress OF the Truman Point
Four" program In Congress
The Brazilian nations most
immediate and desperate need Ia
dollar exchange. More than $3.50. y
900 900 is owed TO United States
exporters for goods which have
already been delivered IN Brazil
In addition, United States inyes-
tors have several hundred mil
lions more In earnings which they
are unable 10 take out because Of
lack OF dollars. In fact. creditors
are howling % loudly Ut the
present time that Washington
officials are kept busy listening
TO complaints and demands for q
showdown. Some of these credi~
tors are insisting that any loans
or financial assistance 10 Brazil
should provide for payments due
for United States exports and. nj
least. token returns on invest
ments
No Sikn oil Loan
But, at the moment. there Ia no
prospect for any outright loan Of
money to the Brazilian govern
ment. The only offieial agency in
this country that could make one
is the Export Import Bank. Al
this time the bank has no IA
cilities for putting out A. much
money 10 any one country ~
Brazil needs 10 take care of ia
immediate financial obligations
Even II its assets or lending
powers we're extended. the Export
| Import Bank makes loans or offers
credits only for productive puF-
poses and almost invariably the
money goes for the purchase In
/ this country OF machinery. equip
msnt and materials for the build.
| Ing. renovating or expanding os
the enterprise concerned.
One loan OF rs million dollars
has recently been made by tssr
World Bank to the Brazilian
Lsght 6 power Co. q Canadian
corporation. which supplies elec-
tricai current TO RIO DR. Jsneiro
and Sac Paulo. Discussions have
also been going on looking TO the
possibility OF . similar Loan Tot
the Sac Franeisco hydro Electric
project In the north. This Ia ofse
Of the enterprises set forth In the
|Dutra government ffye-yeaf plan
for the development Of Brazil .
natural resources. But. here again
such loans are really only credits
for the purchase Of equipment
abroad and provide no dollars
which can be us~d 10 pay other
debts.
Can Help Themselves
A financial experts and even
some governmental osnesals in
Washington see II. The present
dollar shortage In Hrnxas ear oesf
~ vcxne6ssd ny ff1R 1xnxatsxrs