832.5151/1051: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 1:40 p.m.]
69. My 62, March 19, noon. The Director of Exchange informs me that no contracts will be issued this week for maturities subsequent to March 5. The Bank of Brazil will issue additional exchange credits to oil companies but definite date has not been fixed as yet. The Bank of Brazil will distribute exchange contracts this week through February 15 for the daily quotas of firms operating on open account.
The Director of Exchange states that on account of heavy obligations in connection with the purchase of armaments he will recommend to the Minister of Finance that the Government make further shipment of $500,000 in gold to New York or London for the purpose of obtaining credits with which to meet these obligations.
Please inform Department of Commerce.