The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 6:04 p.m.]
157. As the Department is aware the Bank of Brazil has not granted exchange for a number of shipments of merchandise imported into Brazil before September, 1937, by firms operating on open accounts and daily quotas. The Embassy has constantly reminded the Bank of Brazil of the importance of allocating this exchange. Today the Bank authorized purchases in the free market of exchange covering importations cleared through Brazilian customhouses before September, 1937, and for which exchange has not yet been granted. Inasmuch as these transactions are limited to firms operating on daily quotas and open accounts, the Bank has decided to increase their daily quotas by 1000 pounds each until the firms’ arrears are liquidated. Firms must present proof of actual importation and sale of merchandise in Brazil.
Please inform Department of Commerce.