File No. 832.61333/121.

The Secretary of State to the Ambassador of Brazil.

Excellency: I have the honor to inform your excellency that a complete understanding has been reached between the Government of [Page 62] Brazil, on behalf of the State of São Paulo, and the American Embassy at Rio de Janeiro, on behalf of this Department, to the effect that the hearing of the demurrer would be held in abeyance and the stock of coffee now in New York sold without restriction in the open market before April 1, 1913. Your excellency will readily understand, however, that unless Mr. Sielcken withdraws his motion that a date be set for hearing the demurrer, the Government of the United States can not be held responsible if the suit should proceed. The Department is further informed that the Brazilian Government is taking steps to check the initiative of Mr. Sielcken, and it is hoped that these steps will result in his withdrawing his motion before the 20th instant, the date now set by the court for hearing the same.

Accept [etc.]

P. C. Knox.