811.20 Defense (M) Brazil/606: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received May 20—1:03 a.m.]
1696. Department’s 1245, May 16, 2 p.m.53 The Minister of Finance on April 28 (see my 1442, April 28, 9 p.m.53) instructed the Director of the Export-Import Department of Bank of Brazil to prohibit the exportation of crude rubber in any form and tires and tubes except to the United States. The Minister of Finance confirmed the instruction in writing last week and he again instructed the Bank of Brazil to cancel all applications for the exportation of these products.
With regard to the letter from the American Embassy in Buenos Aires the shipments referred to were made under licenses obtained prior to the agreement of March 3 between Brazil and the United States.
The other cases referred to in the Department’s telegram are covered by the prohibition cited in the first paragraph.