811.51/5303: Telegram

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

4841. Department’s 3303, October 30, 8 p.m. This matter has been discussed with the Director of Exchange who is of the opinion [Page 815] that a law prohibiting the holding of dollar currency might have some symbolical importance but would be unenforceable.

The Embassy taking into consideration the troubles Brazil is having in controlling its own currency tends to agree with this viewpoint.

It appears however that steps can be taken to prosecute persons engaging in dollar transactions under a Decree Law enacted on November 27, 1933. The Bank of Brazil has agreed to support the Embassy in the presentation to the police of evidence which it has accumulated in regard to persons dealing in dollar currency.