The Acting Secretary of State to the President of the National Foreign Trade Council (E. P. Thomas)

Dear Mr. Thomas: I have seen with interest the agreement between the Banco do Brasil and certain American organizations and firms transmitted with your letter of June 15. The Department has received certain informal inquiries regarding in particular the provision in Section 3 of the agreement for a preference in the supply of dollar exchange sufficient for the current needs of signatories to the agreement.

The Department is taking the position that it cannot undertake to express any opinion with respect to the advisability or propriety of a contract of this kind and that individuals and corporations engaging therein do so upon their own responsibility and at their own risk.

We have also had in mind the statement made by the Brazilian Mission recently in Washington that “the Brazilian Government assures and will always assure all American interests completely fair treatment in connection with the service of loans and the disposition of exchange under the Exchange Control”.

Sincerely yours,

William Phillips