The Chargé in Brazil (Scotten) to the Secretary of State
[Received 3:06 p.m.]
5. For the Acting Secretary. Your 4, January 5, 4  p.m. Aranha informs me that he received a telegram from Mello Franco prior to the departure of the latter from Lima stating he had had a private conversation with President Benavides and was optimistic about finding a solution of the problem. Mello Franco counseled, however, taking no further action for at least one month in order to avoid the impression that pressure had been brought to bear by the [Page 143]Conference itself. Aranha added that upon Mello Franco’s return here in about one week he will send you a full expose of the situation.