832.5151/605: Telegram
The Secretary of State to the Chargé in Brazil (Gordon)
77. With reference to paragraphs 2 and 6 of your 117, May 3, 6 p.m., the Department’s position is that while it is willing to give consideration to Aranha’s plan of issuing acknowledgments of indebtedness to Class “C” creditors, it is essential that the idea be discussed with American interests or organizations representing them, to insure that it would meet the requirements of the creditors.
While the Department sees possible advantages in Aranha’s plan of issuing acknowledgments of indebtedness, it is possible, as you feel, that the most feasible solution for Class “C” creditors would be an emission of Bank of Brazil notes. You will accordingly endeavor to obtain the agreement of the Finance Minister that Bank of Brazil notes will be issued in case other forms of obligations are unsatisfactory to American creditors.