The Secretary of State to the Ambassador in Brazil (Caffery)
Washington, June 26, 1939—7 p.m.
119. Your 197, June 22, 2 p.m.62 The Department would find the following information important in its study of Brazilian exchange developments:
- What use is being made of the 30 percent of exchange acquired by the Bank of Brazil at the official rate? How much exchange has been acquired in this manner, and how has it been utilized? How much of this exchange is left at the disposition of the authorities? Are transfers of earnings and interest being made out of these foreign balances? If so, at what rates are the foreign balances being sold for these purposes?
- Have the American commercial arrears all been cleared up, and are commercial payments to Americans now on a current basis? Please transmit by airmail a statement of the arrears cleared up, indicating whether they represented deposits for collections, open accounts, or daily quotas, for which exchange contracts had not been granted, or the payment before maturity of exchange contracts already allocated; Please indicate the names of the holders of, and amounts of, the major arrears balances liquidated.
- What has been the effect of the São Paulo cotton sales upon the compensation mark balances of the Banco do Brasil?