832.51 Bank of Brazil/2: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 12:25 p.m.]
223. Department’s No. 112, September 24, 1 p.m. In my opinion the “possible confusion” mentioned by the Department does not exist in view of the fact that the proposed agreement between the Bank of Brazil and the Federal Reserve Bank is entirely independent of Pierson’s plan and should be settled very [soon?]. On the other hand Pierson’s plan cannot obviously be acted upon until after his return to Washington and thorough discussion with the interested Government departments.
I received a reply dated September 21 from the Bank of Brazil to the Federal Reserve letter contained in the Department’s 10235 and which was transmitted to the Department in my airmail despatch No. 920 of September 23.36 The reply however consists of mere acknowledgment of receipt of the communication from the Federal Reserve Bank and states that the question is being studied by Brazilian authorities.
The Director of Exchange informs me that he has already drafted a tentative plan in accordance with the suggestions of the Federal Reserve Bank and which probably will be passed upon this week by the Minister of Finance.