840.51 Frozen Credits/9823: Airgram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received March 22—8 p.m.]
A–467. Department’s A–1020, March 6, 6:10 p.m., and Embassy’s A–350, February 24, 1 p.m.
- 1.
- —With reference to the control over the exportation of dollar
currency, the Department’s views are shared by the Embassy, as is
indicated by the following translation from a letter given the Bank
of Brazil on March 2:
“With reference to the coordination of these new regulations with the dollar control program of the United States, the consideration of the Bank of Brazil is invited to the following suggested program, which, if approved by you, will be submitted to the Treasury Department for its consideration:
“As the regulations of the United States permit travelers to import US$50.00 in currency, it is preferable that this amount be acquired [Page 755] from an authorized establishment, rather than from exchange shops which may have been dealing in currency of Axis origin. It is suggested that the Bank of Brazil sell United States currency simultaneously with the issuance of the permit by the Fiscalização Bancaria to a maximum of $50.00 to persons who present documents adequate to prove their imminent departure for the United States. The Bank of Brazil would have available for this purpose United States currency previously acquired on the basis of letters of authorization from American Consulates.”
- 2.
- —With regard to the importation of United States currency, the Embassy agrees that the ideal arrangement would be for the authorities at the port of entry to take up such currency for forwarding on a collection basis. It has hesitated to make this recommendation, however, because of the fear that such action might interfere with the large United Nations military movement in transit through the north of Brazil. If the Department can obtain assurances from the Army and Navy that the automatic impounding of sums in excess of $250.00 will not unduly interfere with their personnel’s financial plans, the Embassy is prepared to recommend to the Bank of Brazil that its regulations be so amended. Reports from our Consular offices in Belém, Recife and Fortaleza indicate that, while some progress has been made, many Army and Navy officers and enlisted men continue to finance their travels with dollar currency.
- 3.
- —A communication is being addressed to the Bank of Brazil inquiring whether the new regulations modify in any way the previous instruction prohibiting banking and exchange houses from engaging in dollar currency transactions. The Department will be informed.