832.51 Sa 6/136
The Ambassador in Brazil (Morgan) to the Secretary of State
[Received August 11.]
Sir: Referring to the Department’s telegraphic instructions Nos. 15, of May 3, 5 P.M., and No. 23, of June 29, 12 N., I have the honor to report that the instruction contained in the last paragraph of the Department’s instruction of May 3 has been complied with [Page 1027] and that the President of the Republic will endeavor to interest the President of Sao Paulo in affording some assistance to the American groups concerned with the Itararé-Fartura Railway.
How successful his representations may prove I cannot prophesy because Dr. Julio Prestes is seriously offended by the character of the telegram which the interested bankers addressed to him on March 1 last, as well as by the statement that
“We request Your Excellency’s immediate reply since we desire to avoid the necessity of bringing the matter to the attention of our State Department at Washington”
a copy of the text of which telegram formed schedule No. 4 of the exposition which Messrs. Curtis, Mallet-Prevost, Colt & Mosle submitted to the Department under date of March 22.10
President Prestes considers the quoted words to be a threat which no group of foreign bankers has the right to address to a self-respecting foreign government, and that after their wide international experience in dealing with foreign governments it is surprising that the bankers interested in the railway should have employed them.
In his recent annual message to the State Legislature, President Prestes has referred to the relations of the State Government with the Itararé-Fartura Railway and the text of these references, both in English and Portuguese, I have the honor to enclose.10 They elucidate the viewpoint of the State Government, and may assist the Department in adjusting its relations to the matter in hand.
I have [etc.]