832.51/812: Telegram

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

111. My 109, November 8, 9 p.m. Minister for Foreign Affairs has just telephoned me that he has reached agreement with Minister of Finance and that they request the Department to furnish copy of the plan to Bondholders’ Commission. He expresses the hope that it can be dealt with expeditiously. Foreign Minister asks me to say that Brazilian Government is determined to work in good understanding with the United States.

This would seem to dispose of the danger of action in the course of the next few days—but it must be borne in mind that we are not dealing in this matter with a highly organized Treasury Department … It is therefore important to get active negotiation started in some form as soon as possible. It would be helpful if Department would furnish me with an indication of the procedure contemplated.