832.5151/604: Telegram
The Secretary of State to the Chargé in Brazil (Gordon)
78. Your 116, May 3, 2 p.m. Department awaits with interest reply of Minister for Finance to your Aide-Mémoire, which it is assumed will constitute a definite proposal covering the liquidation of all classes of American deferred credits.
As regards the statement attributed to Aranha, the proposition of non-payment of interest was discussed on the basis of Aranha’s belief that American deferred credits could be cleared up very rapidly, in which case it might be advantageous for American creditors to sacrifice interest to obtain more rapid payment. Obviously if Class “C” creditors are to be asked to accept obligations of approximately the same terms as those offered the British, such obligations should likewise bear interest or should contain some feature of compensatory advantage.