832.5151/114: Telegram
The Secretary of State to the Ambassador in Brazil (Morgan)
15. Complaints reaching the Department directly, as well as through the Consul General at Rio de Janeiro especially in his 230 of December 29, 193217 and its enclosures, indicate that there is reason to believe that equitable portions of the exchange cover available in Brazil have not been allocated to nationals of this country to make payments due on capital investments, meet current commercial requirements, and transfer to this country accumulated milreis credits.
Please comment by cable on the foregoing and submit by air mail a report containing all available pertinent information, adding a careful expression of your opinion regarding the procedure that should be followed. Include all available information regarding (a) the special exchange deals with certain countries referred to in Enclosures 4 and 5 of the Consul General’s report cited, especially that with Czechoslovakia and the others said to be in negotiation; (b) the amount, purpose, amortization provisions and present status of the so-called Rothschild Credit.
The procedure suggested in the Consul General’s telegram of January 917 is considered undesirable.