The Chargé in Brazil (Scotten) to the Secretary of State
[Received March 20—5:37 p.m.]
78. For Under Secretary.44 The Director of Exchange of the Bank of Brazil has informed Embassy in strictest confidence that as he is in entire disaccord with the agreement signed by Aranha in Washington relating to exchange,45 he is resigning on Wednesday afternoon.
He explained that his principal objections to the proposed decree law were: (1) that it would be a serious mistake for the Brazilian Government at this time to relinquish in whole or in part the right which it now enjoys of purchasing all of the export bills; (2) that he is convinced the Brazilian Government cannot carry out the provisions of the decree law relating to the compensation trade with Germany.