832.5151/1359: Telegram

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

110. Embassy’s telegram 107, April 9, 7 p.m. Referring to article No. 3 of the exchange decree law Aranha informed me this morning that the Government had found it necessary to increase from 10%, as agreed in Washington, to 30%, the Government’s share of export drafts. He explained this was on account of the international situation and furthermore in order to enable the Government to build up a reserve to be used in making a payment on Brazil’s dollar bonds.