832.5151/628a: Telegram
The Secretary of State to the Chargé in Brazil (Gordon)
87. Have just discussed deferred credit situation with Aranha to whom the Brazilian Government had sent a copy of the memorandum presented by you. Prospect of working towards final solution seems favorable. The discussion now appears to have reached a point where it can best be carried forward by direct conversations between Aranha and the representatives of the American creditors. Further this seems to the Department the best way of getting satisfactory settlement of details. Therefore, Department concurred in the idea that the next stage of the negotiations should be direct conversations to take place here on the understanding that these conversations would be within the limits of the bases outlined in your memorandum.