832.51/861: Telegram

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

11. For Reuben Clark.

“7. First. We defer to your judgment regarding realization loan.

Second. Aside from special circumstances indicated our 6, our suggestion therein was based on consideration of security back of this loan and fact that it was recently issued to meet critical conditions in Brazilian coffee and exchange situation. These factors led us to conclusion expressed in our 6, paragraph first.

Third. We fully appreciate difficulties you have had to face in working out adjustment outlined in your No. 4 and we assume from your cable that suggestion of further changes at this time would be futile and possibly harmful to results already achieved. Ex[ecutive] Com[mittee].”