Unless at least six months before the expiration of the above-mentioned term of two years the Government of either country shall denounce the Agreement, it shall continue in full force until denounced by either Government with six months' previous notice, or unless terminated in accordance with the provisions of Article II. In witness thereof the respective Plenipotentiaries have signed this Agreement in duplicate, each in the English and Portuguese languages, and have affixed their seals hereto. Done at the City of Washington, this second day of February, one thousand nine hundred and thirty-five. [For schedules annexed to agreement, see 49 Stat. 3822 or p. 16 of EAS 82.] Animated with the purpose of making article VI of the trade agreement between Brazil and the United States of America, signed today, perfectly clear, my Government has authorized me to advise Your Excellency that, so long as there may be any need for it to maintain the present control over foreign exchange, it interprets the promise contained in the said article as follows: I. The Bank of Brazil will furnish sufficient exchange for the payments, as they become due, for all future importations of American products into Brazil; moreover, the Bank of Brazil will provide sufficient foreign exchange for the gradual liquidation of the American commercial debts now in arrears, it being understood that the Bank of Brazil will establish a system of payment under which the amount of foreign exchange required for the purposes mentioned shall not be less than a percentage calculated in accordance with the share represented by American goods in total Brazilian imports during the past 10 years, but slightly increased in order that the purposes contemplated by the new trade agreement may be accomplished; II. With respect to transfers of profits and dividends of American companies operating in Brazil, my Government cannot, until the situation becomes normal, do more than promise that such companies will receive treatment never less favorable than that which is enjoyed or which may be enjoyed by any foreign companies established in the country; III. My Government suggests the cooperation of the Bank of Brazil with the Federal Reserve Board of New York (or any other institution which the Government of the United States of America may indicate), in the sense of inaugurating a foreign exchange information service, affording greater knowledge of the situation of each of the two countries with relation to the other and, in this way, intensifying the exchange of products between them; IV. If, as it hopes, the negotiations in progress for obtaining banking credits should come to a happy conclusion, the Brazilian Government will reserve from the foreign exchange at its disposal that necessary to meet the payment, to the holders of bonds of loans negotiated in the United States of America, of the sums fixed by the plan of February 5, 1934, for payment of debts. I wish to add that the Bank of Brazil will continue to meet, as hitherto, the obligations assumed in June 1933 for the refunding of the deferred commercial debts in arrears existing at that time. I avail myself of this opportunity to renew to Your Excellency the assurances of my highest consideration. I have the honor to acknowledge the receipt of Your Excellency's note of this date. My Government welcomes the declaration of the Government of Brazil contained in Your Excellency's note under acknowledgment in connection with the arrangements for the development of trade between the United States and Brazil embodied in the new Commercial Agreement between the two countries and has taken note of the determination of the Government of Brazil to resolve in so satisfactory and orderly a manner matters involving foreign exchange between the two countries. The security in exchange matters these assurances will give to trade between the two countries should greatly assist in the development of that trade. They appear to this Government to be both reasonable and moderate and in no way to obstruct such plans or efforts as the Brazilian Government may wish to carry forward in furthering a liberal exchange policy. Your Excellency will, of course, appreciate that the proffer by Your Excellency's Government of these assurances as contained in Your Excellency's note above referred to is not construed by this Government as modifying or affecting in any way the rights of American holders of Brazilian bonds issued in the United States. I avail myself of this opportunity to renew to Your Excellency the assurances of my highest consideration. His Excellency Mr. OSWALDO ARANHA CORDELL HULL 219-919-70- -56 MILITARY MISSION Exchange of notes at Washington June 20 and October 29, 1935, amending agreement of May 10, 1934 Entered into force February 1, 1936 Extended by agreement of November 9 and December 16 and 19, 19351 49 Stat. 3845; Executive Agreement Series 84 The Secretary of State to the Brazilian Ambassador EXCELLENCY: DEPARTMENT OF STATE WASHINGTON, June 20, 1935 With respect to the desire of the Brazilian Government, made known to me by your memorandum of February 20, 1935, that the Military Mission Agreement between the Governments of the United States of America and the United States of Brazil, signed at Washington on May 10, 1934,3 be further amended so as to permit of the designation of an officer of the Army of the United States of America to serve as a professor in the Technical School of the Brazilian Army in matters related to chemistry and its application to warfare, the undersigned the Secretary of State of the United States of America, duly authorized by his Government, begs to state that it will be entirely satisfactory to the Government of the United States of America to enter into such a supplementary agreement by an exchange of notes on the understanding that the said officer shall possess the same rights and privileges as the officers detailed in the original contract of May 10, 1934; that the agreement shall be considered and be deemed to be an addendum to the said contract, in accordance with Article 7 thereof, and that it shall be regarded as having the same force and effect as if originally embodied in that contract. The Government of the United States of America will be pleased to consider the above-stated understanding to be effective on the day of the receipt of a note from you stating the acceptance of the understanding by the Government of the United States of Brazil. Accept, Excellency, the renewed assurances of my highest consideration. With reference to a proposed addition to the contract between the United States of Brazil and the United States of America for a military mission, signed at Washington on May 10, 1934, for the purpose of permitting the designation of an officer of the Army of the United States of America to serve as professor of chemistry and its military applications in the Technical School of the Brazilian Army, the undersigned, Ambassador of Brazil, has the honor to acknowledge the receipt of note no. 832.223/9, of June 20 of the current year, by which Your Excellency, duly authorized by your Government, has the kindness to announce to the undersigned that the Government of the United States of America is ready to conclude, by exchange of notes, a supplementary agreement with respect to this matter, on the assurance that the said officer will have rights and privileges equal to those granted the officers mentioned in the original contract of May 10, 1934, such addition being considered as made in accordance with article 7 of the contract referred to and as valid as if it were included therein. 2. Being duly authorized by his Government, the Ambassador of Brazil has the honor to declare that the Government of the United States of Brazil accepts the conditions mentioned and, in the terms of the note to which this note is a reply, agrees to consider the said addition to the contract of May 10, 1934, with the Government of the United States of America, as in force on and after February 1, 1936. The undersigned avails himself of the opportunity to repeat to Your Excellency the assurance of his very high consideration. His Excellency MR. CORDELL HULL OSWALDO ARANHA Secretary of State of the United States of America |