811.51632 National City Bank/6: Telegram

The Ambassador in Brazil (Morgan) to the Acting Secretary of State

7. Department’s 7, February 28, 4 p.m.; 8, March 3, 7 p.m. National City Bank has infringed Brazilian banking regulations and cannot escape the penalty of a fine. These regulations provide that inspectors shall receive a portion thereof. Inadequate supervision by the local officers of the bank created the situation.

Even informal diplomatic intervention will not be well received before deposit of the fine has been made subsequent to which it should be possible to obtain a modification of the amount which is excessive. I am presenting informal memorandum however to Foreign Minister after seeing Hart who arrived today.