840.51 Frozen Credits/8118: Airgram
The Secretary of State to the Ambassador in Brazil (Caffery)
A–438. Your despatch no. 8801, October 19.80 It is assumed that you intend the suggested procedure to be applicable to applications by residents of Brazil whose funds are blocked in the United States (which would include Spaniards, Portuguese, Swiss, et cetera) and not to be limited to applications by residents of Brazil whose funds are blocked under Brazilian law (which presumably would only include Germans, Italians and Japanese). It is not clear, however, from the enclosures to the above despatch whether the Director of Exchange understands that the procedure would be applicable to the broader class of applicants.
Please inform the Department whether you believe the Director of Exchange clearly understands the scope of your proposal. The Department will then attempt to work out the mechanics of the suggested procedure with the Treasury.
- Not printed; it enclosed correspondence between the Commercial Attaché in Brazil and the Director of Exchange, Bank of Brazil, in which the Embassy recommended that residents of Brazil who had invested capital in meritorious enterprises and whose funds were blocked be granted licenses to transfer the capital from the United States to Brazil provided that an appropriate Brazilian agency would ensure that the funds were used only for purposes mentioned in the application (840.51 Frozen Credits/8118).↩