832.51/1207: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 8:08 p.m.]
167. Department’s 80, November 16, 2 p.m. and 81, November 17, 4 p.m. As pointed out in my telegram No. 162, November 13, 11 p.m., the President, after my conversation with him, that day authorized the December payments thereby avoiding an interruption in the debt service. The Government has not (yet) considered appointing a committee to conduct negotiations. The Minister of Foreign Affairs says that the Minister of Finance stands ready to enter into negotiations with the foreign bondholders. In the case of American bondholders he assumes that the negotiations already under way will be continued through Boucas (who has been keeping the Foreign Bondholders Protective Council currently informed). The Minister for Foreign Affairs emphasized that it is not the Government’s intention to take any unilateral action.
On November 15 the Minister for Foreign Affairs in my presence informed the British Ambassador that the President has authorized the December payments (as I reported November 13) and that the Government stood ready to enter into negotiations with interested parties.
[Page 356]The Minister quite obviously did not care to commit himself yet as to a public announcement on the subject and I shall take this matter up with him again later.