632.6231/239: Telegram
The Ambassador in Brazil ( Caffery ) to the Secretary of State
[Received 8:55 p.m.]
116. I saw the Minister of Finance at noon today and discussed with him the German situation along the lines of the Department’s telegrams 51 and 53. He stated that I would be shown this afternoon a copy of the proposed note to the German Chargé d’Affaires. He added that in compliance with a conversation he had in Washington with the Under Secretary of State, he would take steps to have 35% of the official exchange involved removed from the free market and [Page 342] set aside by the Banco do Brazil to be used for purchases by the Federal Government of articles not competing with our exports. He emphasized that this was highly confidential. He remarked also that in his opinion the success or failure of this whole undertaking would depend upon the manner in which the joint committees which are to be appointed carry out their functions. He believes that these committees should be appointed without further delay.
This afternoon I discussed also the whole matter with the Minister for Foreign Affairs. He handed me (in confidence of course) a copy of the proposed note to the German Embassy. He asked me to let him have my comments thereon on Monday. I explained to him why that was impossible. He then said that he would notify the Germans that their agreement had been extended for a few days and hoped I would let him have my comments as soon as possible. I am transmitting a translation of the note in a separate telegram33 and would appreciate your comments thereon.
- No. 117, September 5, not printed.↩