632.6231/63: Telegram

The Ambassador in Brazil (Gibson) to the Secretary of State

143. My 141, June 2, 3 p.m. Minister of Finance was engaged until late last night discussing the compensation question with the President and Macedo Soares but I saw him this morning at his house.

He was fully conversant with the aide-mémoire quoted in your 80 June 1, 7 p.m. and stated that it so fully represented his own views that he might have drafted it. He read me the letter referred to in the last paragraph of the above telegram and concluded by saying that as a result of a thorough canvassing of the whole question the German Agreement could be considered as abandoned in its present form. He said that Macedo Soares had come completely round to his point of view and was now in favor of abandoning the German Agreement [Page 264] and seeking some other method of meeting the situation which would not be open to the same objections.

I expect to see Soares this afternoon.