832.5151/191
The Ambassador in Brazil (Gibson) to the Secretary of State
[Received November 4.]
Sir: I have the honor to refer to the Embassy’s despatches numbered 4161, of July 20, 1933, and 3, of August 15, 1933, concerning the coercive measures being undertaken by France in its effort to exact from Brazil the exchange cover to which it felt itself entitled, and to furnish the Department herewith a copy and translation of Decree No. 23, 264, issued on October 23, 1933, by the Brazilian Government47 in response to those measures after negotiations to adjust the difficulty had failed. As was reported in the Embassy’s telegram number 103, dated October 25, 3 P.M.,47 the Brazilian Government has applied double tariff rates to French products, and has subjected the importation of French products to the regime of special license, and has established a similar license situation with respect to all exchange transactions with France.
The Rio de Janeiro newspapers have been unanimous in their approval of the action taken by the Brazilian Government, although several of them express regret that such a course should have become necessary.
Respectfully yours,