832.00 Revolutions/361: Telegram
The Consul General at São Paulo (Cameron) to the Secretary of State
[Received September 10—12:50 p.m.]
Mineiros resident in São Paulo attempted peace negotiations through President of Minas Geraes and as Dictator insisted upon preliminary condition of surrender; negotiations broken off on September 3rd and São Paulo’s delegates headed by the Bishop of Santos returned from Bello Horizonte. Decree of September 9th provides for financing of planters through the purchase by the State Government of 2,000,000 sacks coffee 12th series 1931–32 crop paid 20-year 10 percent State Bonds Service guaranteed by 10 percent surcharge on all existing State taxes except those falling directly or indirectly on coffee. These 2,000,000 sacks coffee then to serve as guarantee of currency emission of 100,000 contos. The Government will also finance 4,000,000 additional sacks of current coffee crop on the basis 40 milreis for number 5 repayable in 6 months 6 percent per [Page 416] annum. Government also authorized on the same conditions advance up to 30,000 contos on other merchandise not subject to deterioration. The total issue of currency in accordance with this decree must not exceed 270,000 contos.
Repeated to Embassy at Rio de Janeiro.