811.20 Defense (M) Brazil/355

The Ambassador in Brazil (Caffery) to the Secretary of State

No. 6764

Sir: I have the honor to refer to the Department’s telegram No. 623, of March 12, 8 p.m.,32 transmitting a note from the Reconstruction [Page 696] Finance Corporation for the Bank of Brazil relative to the $10,000,000 credit for the purchase of Brazilian rubber. The note was delivered to the Bank of Brazil on March 13, 1942.

I enclose copies of the letter of acknowledgment of the Bank of Brazil, and copies of the notice of registration of the credit.33 The only difference between the note of the Reconstruction Finance Corporation and the credit registered by the Bank of Brazil is that the bank provides for three negotiable copies of the bill of lading, whereas the Reconstruction Finance Corporation calls for only two copies. Mr. McAshan34 perceives no objection to the procedure, provided the Bank of Brazil will forward the third negotiable bill of lading to the Federal Reserve Bank, when one of the first two negotiable bills of lading has been received in the United States.

Please request the Rubber Reserve Company to confirm acceptance of the letter and enclosures of the Bank of Brazil.

The Bank of Brazil has suggested that original draft and documents referred to in the Department’s telegram mentioned above be forwarded by air, second draft and documents by boat mail and third negotiable bill of lading to remain with the bank to be forwarded to the Federal Reserve Bank when one of the above originals has been received in the States. This suggestion is made to provide for the contingency of both remittances going astray.

Respectfully yours,

For the Ambassador:
John F. Simmons

Counselor of Embassy
  1. Not printed.
  2. Neither printed.
  3. S. Maurice McAshan, representative of the Defense Supplies Corporation, a purchasing agency of the Department of Commerce.