832.5151/541: Telegram
The Chargé in Brazil (Gordon) to the Secretary of State
[Received 8:40 p.m.]
52. Department’s 31, February 28, 7 p.m. In preparation for the 4 days’ complete suspension of business referred to in last paragraph of your telegram the Foreign Minister already left here 2 days ago and will not return until March 7 at the earliest. In his absence [Page 353] the officials conversant with this matter at Foreign Office today make it perfectly clear that while they personally appreciate the Department’s legitimate disturbance and disapprove of the procrastinating policy promulgated through the Provisional Exchange Director it is none the less certain that there is no intention whatsoever on the part of the responsible Brazilian authorities (i. e. the President) either to resume generally uninterrupted supply official exchange or to give any assurances concerning its resumption until at least after the financial mission has returned here (see my 49, February 22, 6 p.m.). In the absence of the Foreign Minister there is no one in that Ministry who can even attempt to argue the matter with the President.
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I have also seen the Exchange Director today and his whole attitude, which is thoroughly negative, clearly confirms the foregoing. In fact he states definitely that he is unable either to give assurance as to resumption of supply of official exchange or to indicate when he may be able to, and his assistant stated equally clearly that nothing whatsoever had as yet been done to carry out Aranha’s suggestions for obtaining accurate information concerning existing backlog. The only detail of interest he vouchsafed was that the Bank of Brazil is clearing up a few of its own exchange contracts; in addition to the $50,000 mentioned in my 39, February 14, 6 p.m., an additional $70,000 of American backlog has been cleared up in the past fortnight. As soon as the Foreign Minister returns I shall immediately impress upon him the seriousness with which the Department views the situation. Frankly, however, I am not sanguine as to his ability to force an immediate cessation of this policy of procrastination. This is borne out by the scant attention so far paid to Aranha’s recommendations in the premises. Accordingly I venture to suggest that during the forthcoming week the Department make still further representations to Aranha in order that he may increase the urgency of his recommendations to his Government; it would seem to me that if quick action is desired the only way to get it just now is for Aranha to communicate direct with the President.