The Secretary of State to the Ambassador in Brazil (Caffery)
80. Your 150, May 9, 1 p.m. The Export-Import Bank yesterday telegraphed the Banco do Brasil that the Guaranty Trust Company has decided not to participate, and requested that its quota be distributed to the other banks suggesting the addition of a Cleveland bank to the group.
The Department notes the difference between the revised estimate of American arrears of $26,000,000 and the total of $13,944,000 furnished by Dr. Souza Dantas in his letter of March 8, 193961 to Mr. Warren Lee Pierson. It is possible that a portion of this difference represents new arrears resulting from the increased lag in closing exchange for maturities and daily quotas. Please inform the Department to what extent, if any, this is the case, what other explanations there may be for the difference, and whether the foreign dollar and sterling balances of the bank have increased correspondingly over the last 2 months or so.
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