832.5151/1157: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 2:04 p.m.]
177. My 173, July 18, 4 p.m., 147, June 22, 9 p.m., and despatch No. 772, July 18th.32 The Bank of Brazil has resumed the purchase of German compensation marks for all products except cotton and cocoa. The buying rate is milreis 5.600. This decision is intended to assist coffee, tobacco, lumber and fruit exporters. Germany pays good prices for types of coffee not in demand in the United States. Coffee brokers state that this development will have a firming effect on Brazilian coffee prices here and abroad.
The selling price for the compensation mark has been advanced to milreis 5.950. American products competitive with German products have benefited noticeably from the steady increase in the compensation mark and importers report a continuation of the improvement in the demand for American products.
Please inform Department of Commerce.
- Despatch not printed.↩