The Ambassador in Brazil (Caffery) to the Secretary of State
[Received May 27—11:30 a.m.]
179. A list of American arrears is proceeding satisfactorily and the Director of Exchange informs me that all American arrears not covered by exchange contracts will be paid in full before the middle of June.[Page 397]
The Bank of Brazil has instructed its agency in Bahia to suspend the purchase of German compensation marks in payment for cocoa for exportation to Germany. This decision was made after the bank received notice that German firms had contracted for 240,000 bags of Bahia cocoa. (Director of Exchange suspects that the German firms intend to dispose of most of this cocoa in other countries.)
Please inform Department of Commerce.