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BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence Chairman Eccles From Walter R. Gardner ^ ( \ s Date Subject: 12, Secretary Snyder reverses his position on the Brazilian loan Andy Kamarck has just called me from the Treasury to give me warning before tomorrow afternoon's meeting that Secretary Snyder will go along with the proposed 50 million dollar loan to Brazil. In the Staff meetings the Treasury boys have worked closely together with the Federal Reserve in opposing the loan, and I understand that they had Secretary Snyderfs assent in so doing. Since three agencies, however, have continued to support the loan and will probably vote for it in the top committee, Secretary Snyder is now anxious to avoid the sort of issue that would be created if there were a split vote. He is also somewhat impressed by the argument that the personal position of Macedo Soares may be endangered if the loan is not granted. Macedo Soares is the Brazilian engineer who was trained in this country and whom the Export-Import Bank people are extremely anxious to keep in charge of the whole developmental project in Brasil. They say that he is outstandingly the best man the Brazilians have. Apparently, Soares has gained the impression from the Export-Import Bank and the State Department people that the 50 million dollar loan is virtually as good as granted; and since he has gone back to Brazil to discuss on the spot the best expenditure of it, it would be highly embarrassing to Soares now to find that he, did not have the money. have with able this The fact that the Export-Import Bank and the State Department gone so far with Macedo Soares has made it difficult to reason their representatives in the Staff meetings. It seems questionwhether negotiations on future loans should proceed as far as before the proposal is referred to NAG.
@FedFRASER