DEBT SERVICES

Dominion, Volume 28, Issue 85, 4 January 1935, Page 9

DEBT SERVICES

Reported Brazilian Step

(Received January 3, 5.5 p.m.)

Rio de Janeiro, January 2.

It is stated in quarters close to the Government that Brazil has decided to suspend services on its foreign debts, though it was officially denied earlier that suspension had been discussed.

LION’S SHARE TO AMERICA

Brazil’s Foreign Exchange

Rio de Janeiro, December 5.

The lion’s share of official exchange will go to imports from the United States, according to a new allotment system which was announced yesterday by the Banc do Brasil.

Under a regulation allotting exchange in proportion to purchases of Brazilian coffee, daily quotas of official exchange for payment of imports from the United States will be 46 per cent. France as the second largest coffee buyer was allotted 11 per cent., with 11 other countries, inclutTing Holland, Italy, Switzerland. Belgium, Argentina, Finland, Denmark, and Portugal scheduled to receive allotments ranging from Ito 5 per cent. A balance of 15 per cent, was reserved for countries not specifically mentioned. The arrangement does not mention Great Britain, which buys no coffee, nor Germany or Czechoslovakia, both of which are paying /or their purchases in blocked funds.

Previously exporting nations have shared equally in the funds daily made available for foreign exchange at Rio lie Janeiro. American business men here are much pleased over the new scheme,'which was characterised by an official of the Banco do Brasil as “perfectly fair,” inasmuch as Brazil should help those who helped her.