| Description | Negotiations began in London, Apr 1940. Agreement effective from 20 Jun 1940. Sterling Area's current payments to be made in sterling to special account of Bank of Brazil; Brazil to use the account for her commercial and financial payments to the sterling area. Any excess of £1 million on special account to be guaranteed against any depreciation of sterling in relation to gold. Final text, 2 Aug 1940, folio 190B. Possible realisation of British holdings of Brazilian bonds, including comments by John Maynard Keynes, Baron Keynes. Brazil, however, short of sterling. Cotton purchases by United Kingdom (UK) planned, to alleviate the shortage. |