632.6531/31: Telegram

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

175. For Assistant Secretary Welles. Your 106 July 24, 2 p.m., outlined the situation very much as we had anticipated.

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It seems important to me that we should clear the air and let them know exactly where we do stand…

You may feel that this purpose can be achieved by directing me to take an early occasion to convey to Macedo Soares the substance of what you have told Aranha, stressing the seriousness and importance we attach to the whole compensation question and stating that you consider it important that he be kept fully and accurately informed step by step as to our views on the subject. It would be my idea to do this without any reference to Aranha’s telegram. This would be possible as Macedo has not himself mentioned to me the subject of that telegram.

The general conclusions drawn in your conversation with Aranha are a definite and logical development of the position we have kept clearly before Macedo hitherto and their presentation to the latter would ensure that the matter is kept in its proper light.