632.6231/57: Telegram

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

79. Your 137 [139], May 30, 3 p.m. From available statistical data the Department is unable to determine whether the total Brazilian export trade with Germany which would be permitted under compensation under the proposed agreement would be more than that of the last 12 months. Please telegraph for each commodity for which an export quota would be established in the proposed agreement, the volume of exports to Germany during the last 12 month period available. Is Department’s understanding correct that under the proposed [Page 259] agreement Germany would be able to buy in excess of quotas but would have to pay for such additions in currencies of international acceptance? If statistical material above requested is not immediately available cable best estimate you can make.

Hull