832.5151/516: Telegram

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

32. Department’s instruction No. 263 of January 28.48 Two weeks ago local American Chamber of Commerce sent out questionnaire addressed to its members and to members of São Paulo Chamber seeking to establish the amount of what might be termed new frozen American credits resulting from Bank of Brazil’s recent exchange measures. As usual, members were loath to disclose their position and replies were so slow in coming in that figures were not worth telegraphing prior to departure of Brazilian Mission from Washington. However, more answers have now filed in and in view of the suggestion set forth in first full paragraph of page 3 of the Department’s instruction under reference may still be of interest.

The round figure totals resulting from the answers given are as follows:

“Milreis on deposit against collections awaiting exchange to be closed” 105,000 contos or 9.25 million dollars.

“Milreis on deposit against collections on which exchange has been closed” 66.6 thousand contos or 5.66 million dollars.

“Back-log of quotas corresponding to open accounts awaiting official exchange” 60.8 thousand contos or 5.17 million dollars.

I do not feel certain that the amounts in this last mentioned category can all be classed as “new” frozen credits though undoubtedly a large part of them can.

In addition, though having nothing to do with new credits, the questionnaire contained a fourth category entitled “balance of notes held under unfreezing arrangement of June 1933 the total figures therein being 112.6 thousand contos or 9.59 million dollars.[”]

The above figures were compiled from 64 answers which were all that were received from upwards of 100 members who were addressed; [Page 343] however, these answers include the most important American interests here and it may perhaps roughly be estimated that the figures in the first three categories represent some 80% of the real totals.

Gordon
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