832.5151/1013: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 5:10 p.m.]
34. The Minister of Finance has just handed me a copy of the following instructions which he issued today to the Bank of Brazil in connection with the allocation of exchange for importations from the United States:
“Normal importations represented by drafts will be liquidated by 30-day exchange contracts payable with sight draft of the Bank of Brazil drawn on its New York correspondent for maturities after February 7, 1938.
For the importers operating on open accounts under the regime of daily quotas, the needs will be covered by longer contracts subject to agreements between the interested parties and the Bank of Brazil.”
The Minister of Finance told me that the exchange situation continues to improve and provided there is no serious break in the cotton market he believes it will be possible to grant spot exchange for imports from the United States in March.
Please inform Department of Commerce.