The Executive Committee of the Foreign Bondholders Protective Council, Inc., to the Ambassador in Brazil (Gibson)
5. For Reuben Clark: See point 4(c) our cable 1, January 2nd. American issue houses for coffee realization loan have made representations to us against suggested further reduction sinking fund and we feel facts they presented regarding special situation this loan deserve careful consideration. Would appreciate your views this point before final position taken.
See our cable 2.76 Our calculations indicate service dollar loans computed under plan basis less than four dollars to pound. At present rate Government could purchase additional dollars without making available more exchange than proposed under plan which might be applied to improve position loans grades V and VI. Hence if exchange saving we originally proposed connection service coffee realization loan cannot be achieved possibly this could be made up by taking [Page 612]account dollar depreciation. Would appreciate brief report progress your negotiations.
- Telegram No. 2, January 6, 1:15 p.m., not printed.↩