File No. 832.61333/116.

The American Ambassador to the Secretary of State.

[Telegram—Paraphrase.]

The Brazilian Minister for Foreign Affairs has assured me in writing as well as orally that the Government of São Paulo promises that by the first of April next the entire stock of valorized coffee now in New York will be liquidated in accordance with the terms set forth in the Embassy’s telegram of Nov. 18, 1912, that none of the coffee in New York will be assigned to a syndicate of insiders or persons associated with the valorization, and again affirms that all sales will be made in the legitimate market.

The Minister for Foreign Affairs further says that the valorization committee at its annual meeting next January will decide upon the manner of liquidation based upon these general principles. He desires, however, that neither the Brazilian nor the American Government should give out any public statement regarding the settlement of the coffee matter either now or after final agreement. He explained that unofficial rumors could probably not be prevented, but they would not so injuriously affect the interests of São Paulo producers and merchants as would a statement issued by either Government.

Morgan.