Foreign Relations of the United States Diplomatic Papers, 1938, The American Republics, Volume V

632.6231/291: Telegram

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

Rio de Janeiro , February 2, 1938—6 p.m.
[Received 7:03 p.m.]

28. My 27, February 2, 4 p.m. I explained to Aranha that if instead of the measures he was advocating the Bank of Brazil increased the value of the compensation mark until it reached the level of the reichsmark, in my opinion satisfactory results would be achieved.

Aranha today, acting as the President’s representative in this case, instructed the Exchange Director of the Bank of Brazil⁷³ gradually to increase the value of the compensation mark until it reached the level of the reichsmark. The Exchange Director has notified the managers of the two local German banks that beginning tomorrow the compensation mark will be quoted at 15 to the pound as contrasted with today’s quotation of 15.50.

Please bring the last sentence to the attention of the Department of Commerce.

Caffery

73. Ribas Carneiro.