832.5151/1358: Telegram

The Chargé in Brazil (Scotten) to the Secretary of State

109. My 107, April 9, 7 p.m. The Director of the Exchange of the Bank of Brazil informs me that the official rate for the purchase of the 30% of export drafts referred to in article III of decree law Mo. 1201 is 16.500 milreis. Banks may purchase future export drafts but cannot sell future exchange for importations. Commercial banks will grant spot exchange for current importations. Banks may not maintain “bought” exchange position in excess of $5000 for 24 hours.

Commercial banks as yet have not quoted rates for the purchase of the 70% of the export bills nor for the liquidation of import bills but it is believed that the rates will be known late today.

The decree law took effect today.

Please inform Department of Commerce.