The Secretary of State to the Ambassador in Brazil (Caffery)
A–409. From Treasury.
“Reference your despatch 8571, September 24, 1942.76
1. In order to facilitate the negotiation of checks drawn on the Treasurer of the United States the following procedure is suggested.77
2. All United States dollar checks drawn on the Treasurer of the United States negotiated by the Banco do Brasil, Rio de Janeiro, are to be delivered to the American Embassy, Rio de Janeiro, accompanied by a list in triplicate with complete description of each check as follows: name of drawer; symbol number; check number; amount; payee’s name; date of check.
Consular officer will carefully verify checks against list and advise Treasury by telegram through State Department aggregate amount of checks delivered by bank. Upon receipt of this advice Treasury will effect payment in corresponding amount to the New York correspondent of the Banco do Brasil. Please indicate in first telegram name of correspondent.
Consular officer should instruct bank to use all possible diligence in identification of payee and determining validity of endorsements. Banco do Brasil should endorse checks as follows: ‘Pay to the order of the Treasurer of the United States for credit of our account with (name of bank), New York. Signed Banco do Brasil, Rio de Janeiro.’ Treasury will look to Banco do Brasil only for usual guarantee under laws applicable in Brazil.
Consular officer should forward checks accompanied by one copy of list to Treasurer of United States, Washington, as promptly as possible by safest means available. Second copy of list should follow by separate carrier at earliest possible date. Third copy should be retained by consular officer.[Page 813]
3. Consular officer should make no arrangements for insurance as shipments of checks will be covered by Government Losses in Shipment Act.78
4. The designation of the Banco do Brasil as a depositary of public moneys of the United States is hereby extended to carry out the procedure outlined in this airgram.
5. With reference to the attachment to your despatch No. 8571 please bring to the attention of the Banco do Brasil that this arrangement only covers checks drawn on the Treasurer of the United States negotiated by it.
6. To minimize number of checks drawn on the Treasurer of the United States, suggest you advise disbursing officers that they should cable through their respective departments their local currency requirements. Arrangements will then be made to advance dollar credits to Banco do Brasil, Rio de Janeiro.
7. Please advise Banco do Brasil, Rio de Janeiro, and other United States Government officials of appropriate parts hereof.”
The Department approves the foregoing. Any expense incurred in carrying out the instructions contained in this airgram should be included in regular accounts as separate item for billing Treasury in accordance with Sec, V–45, Foreign Service Regulations.