832.5151/520: Telegram

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

34. My 33, February 8, 2 p.m. Minister for Foreign Affairs fully complied with his promise mentioned in penultimate sentence of telegram [Page 346] under reference. He telephoned to the President yesterday evening informing him of the repeated representations I have made and of the Department’s inquiry as to whether official exchange allotments had been resumed. However, Bank of Brazil officials returned from Petropolis without instructions to take necessary action. This morning Foreign Minister took the unusual step of going himself to see the Exchange Director in an effort to explain to him the necessity of taking such action.

Foreign Minister has now requested President to come to Bio de Janeiro Monday to preside over weekly meeting of the Federal Foreign Trade Council at which Foreign Minister intends to go into the question fully, making clear how embarrassed he has been by the failure of Brazilian Government to take requisite action and to insist upon a show-down. The President has agreed to come.