611.3231/1294a: Telegram
The Secretary of State to the Chargé in Brazil (Scotten)
132. The Department has become increasingly concerned over the administration by Brazil of its exchange control system and the failure of American exporters to obtain the treatment to which they are clearly entitled under the terms of existing agreements between this Government and the Brazilian Government. The Department has refrained [Page 362] over a long period of months from taking action in the earnest hope that a solution would be reached, but such solution unfortunately appears no closer now than it did a year ago, and in the meantime our legitimate export trade has continued to suffer. As a result the Dept. finds itself in a position which is becoming increasingly difficult to defend. I feel that the time has now come when we should take up this matter unequivocally with the Brazilian Government. I should appreciate your views as to the substance of the following note and the advisability of presenting it to the Brazilian Minister of Foreign Affairs.
[Here follows text of proposed note identical with enclosure to instruction No. 251, December 10, printed on page 368.]