The Acting Secretary of State to the Ambassador in Brazil (Gibson)
4. Department assumes you are familiar with cables being interchanged between the Executive Committee of the Foreign Bondholders Protective Council and Reuben Clark.
Department is this afternoon transmitting to Clark the Executive Committee’s reply to his long cable to them and in this interchange reference is made to the Department’s possible attitude towards any plan worked out by the Council; but the Executive Committee in its cable to Clark today makes clear that the Department has not yet been consulted in connection with this reference.
Department has informed the Executive Committee that except in case of urgent necessity it thinks it wiser that hereafter it communicate with Clark directly rather than through the Embassy. This’ does not mean that the Department in any way disapproves what has or is taking place or that it wishes you to lessen the attention with which you have been following the situation. It seems advisable however in order to adhere to the original purpose of maintaining independence between the Council and the Government.