832.5151/534: Telegram
The Acting Secretary of State to the Chargé in Brazil (Gordon)
31. The Brazilian Ambassador in the conversation related to you in our No. 29 of February 25 stated that he would cable his Government at once and ask them (a) whether they had commenced the census of deferred indebtedness that was deemed necessary to the inauguration of payments, and (b) whether they could set a specific date on which the first payment would be made. You will remember that he viewed some such plan as an alternative to a funding arrangement.
The Brazilian Embassy has just informed us that they have twice cabled in the above sense to their Government but have received no reply.
Will you kindly see the Foreign Minister and inform him that American interests are becoming increasingly disturbed by the prolongation of the complete cessation of payments on the deferred debt (virtually no payments having been made since December) and are expressing continually increasing disappointment at this outcome of the trade negotiations, and that consequently the Department is being subjected to an increasing amount of criticism. Will you ask him whether in the light of these facts he can indicate what policy the Brazilian Government intends to pursue vis-à-vis the deferred indebtedness, and in the event that it is intended to pay off gradually as provided in the exchange of notes (up to 60 percent in official exchange) whether they can designate a precise date when such payments will begin.
I understand a 4-day Brazilian holiday is to begin on Saturday and would very much like to receive a definite reply before then. You may let the Brazilian Government see that the Department is becoming disturbed at the protracted delay during which American interests are being kept in the dark.