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

8. Your No. 3, January 4, 1 p.m., and No. 4, January 4, 2 p.m. In connection with the discussion regarding frozen credits, Department is puzzled by statement of Brazilian Finance Minister that he estimates the American frozen credits at $16,000,000. The Council declares that it has registered blocked funds to the amount of $37,000,000; however, in this figure were included inventories of unsold merchandise amounting to around $7,000,000, and Thomas stated that he thought the final amount to be admitted as eligible for funding by the Brazilian Government would be around $30,000,000. Can you explain the discrepancy?