Memorandum of Conversation, by the Chief of the American Republics Requirements Division (Knox)
Minister Sarmanho and Mr. Campos asked the writer to luncheon and requested that following the luncheon there be arranged a joint meeting with Mr. Dodson of the FEA.
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We then went on to the meeting with Dodson. Sarmanho reiterated to Dodson the points he had raised with me … He did state, however, that he would recommend to his Government that a rigid import-exchange permit be established under which each importer in Brazil must get an exchange permit document which the exporter would have to present to the Brazilian Consuls in the States before the consular documents could be visaed for the export, and that he, Sarmanho, would instruct the Consuls what documents to honor or reject. Dodson stated that he personally felt that Mr. Sarmanho was unduly exercised over the theoretical problems that might arise and advised that nothing be done to further complicate the picture.
Sarmanho stated that the first thing was to insure that all the outstanding valid Preference Requests be licensed, and he volunteered to prepare and present to FEA a list of such I.R.’s. Dodson said that it would be valuable to have such a list and that he would accept it with pleasure and that it might be possible, after examination, to make some sort of a check to see where we stood and, perhaps, to stimulate the submission of tardy I.R.’s so as to clear the decks.[Page 657]
When Sarmanho and Campos left they were in a most affable mood. They appeared pleased with the four hours which had been devoted to their problems, and went away in good spirits.