832.51/801: Telegram

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

99. Department’s 84, October 21, 11 a.m. Have conveyed Department’s views to Minister for Foreign Affairs and Minister of Finance.

I find that latter has received a letter from Fred Kent in answer to him, reported in my telegram 82, September 16th. This letter gives some idea of the general advice and some specific criticism, chiefly to the effect that plan discriminates in favor of British. Minister of Finance professes to be impressed by Kent’s criticism and has sent Bouças to inform Sir Henry Lynch (Rothschild representative) main features plan will be modified to meet this objection. Lynch exerting himself to persuade Brazilians that British banking interests through their past services are entitled to preferential treatment.

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In any event there would seem to be no intention of taking any steps pending consideration of your instructions and Kent’s further communication.