832.5151/744: Telegram
The Chargé in Brazil (Frost) to the Secretary of State
[Received 1:50 p.m.]
286. Department’s 181, November 5, 10 p.m. The Enabling Act, in connection with the British Frozen Credits Agreement, was approved on October 31. The agreement proper which is awaiting ratification by the Senate in precisely the same form as signed on March 27 (see Embassy’s despatch No. 616 of March 28, 193571) provides for cash payment of £1,000,000 to the smaller creditors’ immediately upon its being placed in effect which I am informed will not be until the American agreement has been completed.
The Minister of Finance informed me that Rothschilds have already agreed to lend the Brazilian Government the £1,000,000 for the British small creditors and that he is now in the course of further negotiations with them for an additional £1,000,000 to take care of the American small creditors. He stated that he believed that there would be no unforeseen difficulty in arranging the latter sum inasmuch as the Rothschilds had more or less promised to undertake this business last March. Details concerning authorization voted by Finance Committee, Brazilian Chamber of Deputies, with respect to American frozen [Page 383] credits, are as yet unavailable due to the fact that the project has been returned to the committee for additional minor information. The Minister of Finance stated that full information will be available during the course of the ensuing week. He also stated that Aranha is about to renew his conversations with Thomas72 and added that he is going to discuss the whole question of the American Congelados with Aranha by international telephone this afternoon.