832.5151/366: Telegram

The Ambassador in Brazil ( Gibson ) to the Secretary of State

106. Department’s 36, April 9, 4 p.m. Air mail report on exchange control situation embodying joint views of Consul General, Commercial Attaché and myself going forward tomorrow.55

We are agreed that knowledge here that our Government was making inquiry into this subject has had a distinctly helpful influence. While it is too early to pronounce judgment, there are hopeful indications of improved treatment of American interests. Minister of Finance and new Director of Exchange Control have been brought into direct contact with a series of groups chosen by the American Chamber of Commerce and while nothing specific has yet been agreed upon the Minister has recognized need for definite measures.

Mail report consummates a series of possible solutions indicating their advantages and disadvantages but, in view of what we hope may prove to be favorable developments, we are disposed to recommend concentration for the time being on possibilities of improvement through friendly agreement with a view to reducing the lag in furnishing exchange upon matters of drafts which would meet the most pressing complaint of American interests. Other adjustments will probably be possible through discussion here. It will probably take several months to judge the results of this course but in any event this would not prejudice such further action as may later be decided upon by the Department.

  1. Report not printed.