832.5151/527: Telegram

The Chargé in Brazil (Gordon) to the Secretary of State

39. Department’s 20, February 9, 4 p.m. Exchange Director informed Embassy this afternoon that payments against American backlog were actually resumed yesterday though in very small amount (approximately $20,000) due to a debt plan payment of $878,000 due today. He stated that approximately $30,000 will be allocated tomorrow and that payments will be accelerated as much as possible next week. In this connection, he repeated his statement of last Monday that the spirit of the exchange of notes of February 2, would be strictly adhered to. He added that the backlog would be liquidated on a 60 percent official and 40 percent open market basis as heretofore.

Expect to cable further tomorrow.