832.51 Sa 6/127
Speyer & Co. to the Assistant Secretary of State (White)
[Received July 11.]
Sir: Referring to our letters of June 19th and June 22nd8 regarding the negotiation for the above loan, we now beg to advise you that the plan of refunding the American and Dutch portions of the 8% External Loan of 1921 has been abandoned, and that the total authorized amount of the loan has been reduced to an American portion of $15,000,000 (instead of $25,000,000, as stated in the above letters) and an English portion of £3,500,000 Sterling Bonds.
The proceeds of the loan will be used for additions, betterments and extensions to the water supply and sewerage systems of the City of San Paulo, and for extension of the Sorocabana Railway.
In reply to the last paragraph of your letter of June 21st, we are informed that the railroad earthwork contracts have all been granted to private parties and that the rails will be laid by the State. With regard to the waterworks construction, the proceeds of the loan will be used only to complete construction already under contract.
We are [etc.]
- Latter not printed.↩