832.51/799: Telegram

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

84. Your despatch No. 58, September 27, 1933 and letter of October 5.60 Department is sending you air mail instruction criticizing plan, emphasizing necessity of consultation with American bondholders, and stating that this Government cannot in the light of its present information regard the proposal as consistent with the statement of the Brazilian Government, issued by the Brazilian Delegation at Washington May 23, 1933, that “the Brazilian Government assures and will always assure all American interests completely fair treatment in connection with the service of loans and the disposition of exchange under the exchange control.”61

Until this instruction is received, please take measures to insure that the Brazilian Government take no untimely action on the matter, in view of the very unfortunate effect which would attend publicity of the proposal both because of its substance and because of the announcement from the White House October 20 of steps taken to establish a central committee of representative outstanding personalities to deal with this whole matter of external debts owed to the people of this country.62

  1. Letter of October 5 not printed.
  2. See memorandum of May 23 by the Chief of the Division of Latin American Affairs, p. 48.
  3. See Department of State, Press Releases, October 21, 1933, p. 227.