832.5151/1055: Telegram
The Ambassador in Brazil ( Caffery ) to the Secretary of State
[Received April 2—11:50 a.m.]
78. The Director of Exchange informs me that the Bank of Brazil will announce today the allocation of exchange contracts for maturities through March 12. Firms operating on open account have received exchange contracts for their daily quotas through February 17 and the Bank will endeavor to issue additional contracts next week for quotas through February 21. Oil companies have received exchange contracts for their daily quotas through February 23.
The Bank of Brazil continues to liquidate maturing exchange contracts by sight drafts on New York.
The Director of Exchange informs me that Aranha and the Minister of Finance will discuss the exchange situation as relating to the United States over the week-end in order to endeavor to formulate a more favorable policy within a few days.
He added that he is convinced that the Government will have to ship gold in order to meet its heavy obligations (my telegram No. 69, March 28, 1 p.m.) and to continue the allocation of exchange to meet commercial requirements.
Please inform the Department of Commerce.