At the beginning of 1942, Brazil permitted the US to set up air bases on their territory in return for the offer by the US to encourage the formation of a steel industry - Companhia Siderúrgica Nacional, in Brazil. The US bases were located in the states of Bahia, Pernambuco and Rio Grande do Norte, where the city of Natal hosted part of the US Navy's VP-52. In addition, US Task Force 3 established itself in Brazil.