811.51/5110: Airgram

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

A–262. Your despatches nos. 8294, August 27, and 7373, May 20.63 The Department had assumed from a reading of the instruction of the Bank of Brazil dated May 20, 1942, enclosed with your despatch no. 7373, that the further circulation of dollar currency in Brazil by private persons, banks or exchange houses was prohibited and that the holding of dollar currency by any person or institution other than the Bank of Brazil was also prohibited. It would appear, however, from your despatch no. 8294 that the holding of dollar currency by private persons is not prohibited under existing Brazilian regulations since the Bank of Brazil has made provision for the forwarding of such currency to the United States.

Please clarify the present status of the Brazilian restrictions both with respect to the prohibition against circulation and the prohibition against holding.

  1. Neither printed.