832.5151/187: Telegram
The Ambassador in Brazil (Gibson) to the Secretary of State
[Received 5:20 p.m.]
106. Department’s 87, October 25, 6 p.m. Have withheld report pending more definite developments which would enable me to accompany report with recommendations. American business interests here are encountering difficulties in securing exchange cover and are getting little encouragement from Figueiredo47a to hope for compliance with bank’s commitments. A letter just received from Kent indicates that he is familiar with this situation and that he has written Figueiredo on the subject. In his letter Kent refers to a meeting of the signatories of the Exchange Agreement to be held “in November”, date unspecified. I venture to express the hope that no definite action be taken or communication made after this meeting without the opportunity for me to express my views in the light of the general situation here.
In Kent’s authority to control exchange we have a very powerful instrument for securing proper treatment for our nationals and if we use it skillfully I am convinced we can secure what we want ([and without?] bringing it into actual operation) not only on the matter of exchange but other questions in which American interests are involved. The recent action of the French Government has shown that unskillful use of such authority is distinctly harmful and not calculated to achieve its purpose with the Brazilian Government. Another thing to be borne in mind is that in this country the legal basis for our desiderata is not sufficient in itself and that personal relations are of equal or greater importance. If, therefore, it is possible to send Kent, whose authority in this matter is recognized, I am convinced that it would be the economical and effective way to deal with these important questions before they become acute.
- Carlos de Figueiredo, Director of Exchange Bank of Brazil.↩