832.51/792: Telegram

The Secretary of State to the Ambassador in Brazil (Gibson)

73. Your 82, September 16, 5 p.m. Unless you perceive some reason why it would be unwise to do so, please state to the appropriate authorities that it would appear highly desirable that before adopting any comprehensive payment plan which though temporary might tend to crystallize priorities as among different Brazilian obligations, full opportunity be afforded by the Brazilian Government for the expression of the opinions of all the different classes of bondholders whose interests might be affected by the plan. Furthermore any such plan should decidedly not discriminate against American interests.

The Department desires information regarding principles used in determining the grouping of the various loans in the classes given in your telegram and an indication of just what loans will fall in each of classes 5, 6 and 7.

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It is assumed that the Embassy has sent to the Department a copy of the full text of the plan by air mail.