File No. 832.61333/139.

The American Ambassador to the Secretary of State.

[Telegram—Paraphrase—Extracts.]

An aide mémoire handed me to-day by the Minister for Foreign Affairs stating that he is informed by the Government of São Paulo that the entire stock of valorized coffee which was stored in New York has been sold and that all the sales were made in the legitimate market. The Federal Government of Brazil is of the opinion that this statement of the Government of São Paulo, notwithstanding the fact that a detailed account of the sales has not yet been rendered, should suffice to remove the doubt which has arisen in the mind of the Secretary of State as to whether this sale of the stock of valorized coffee was carried out in accordance with the understanding arrived at between the Governments of the United States and Brazil.

Morgan.