611.3231/780: Telegram

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

33. Department’s 17, February 7, 5 p.m. Throughout this week I have been pressing upon the Foreign Office and the Exchange Director of the Bank of Brazil the consideration that in spite of the promises of the Finance Minister given as far back as January 28 (Department’s 13, January 31, 6 p.m.) and the fact that the exchange of notes was effected last Saturday neither a resumption of official exchange allotments nor assurances with respect thereto have been forthcoming.

The matter, however, seems to have passed into the hands of the President now in Petropolis who yesterday and today has been conferring with the President of the Bank of Brazil and the Exchange Director who in turn has been telephoning New York; the requisite action on the part of Brazil may therefore perhaps be imminent.

In any event I again saw the Minister for Foreign Affairs this morning and urged upon him the prejudicial effects which must necessarily be caused by the failure of the Brazilian authorities to carry out the simple and precise terms of a newly signed international agreement. The Minister agreed with this view and promised to inject himself again into the matter immediately; he hopes to give me a further answer this evening or tomorrow morning.

The matter is another illustration of the situation set forth in the first two paragraphs of my 25, January 25, 7 p.m.50

  1. Not printed.