832.5151/466: Telegram

The Secretary of State to the Chargé in Brazil ( Gordon )

180. Your 331, December 5, 4 p.m. In view of the Department’s consistent stand for equality of treatment Department considers it inadvisable for you to give interviews or any comment on the new Brazilian exchange allocation system. It would, of course, be appropriate [Page 602] in private conversations with Brazilian officials to express gratification for the friendship manifested by this act toward United States trade.

Please keep Department promptly informed by cable of developments in this situation. Is the new system to be regarded as a step in preparation of further relaxation and eventual removal of exchange control? Please endeavor to ascertain from Souza Dantas what are his plans in the above respect.