832.51 Sa 6/123: Telegram
The Ambassador in Brazil ( Morgan ) to the Secretary of State
[Received 4:30 p.m.]
26. Department’s 22, June 22, 4 p.m.7 Although I have twice visited Sao Paulo in relation to the Itararé-Fartura Railway matter it is difficult to secure reliable information for the interested firm on account of the antagonism which their peremptory methods have developed among the members of the São Paulo Government described in Consul Cameron’s despatches,7 the accuracy of which I confirm. Further antagonism has been developed by the statement in the bankruptcy proceedings that the bankruptcy has been wholly caused by the failure of the State Government to fulfill its obligations. The illness of President Washington Luis has prevented conferences with him but I should hesitate to hold them until I was persuaded that the action of the State Government is unjustified.