832.51/1484: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 3 p.m.]
197. Department’s 114, June 19, 2 p.m. The Minister for Foreign Affairs told me last night that he is still studying the debt matter but has not yet had his conversation with the Minister of Finance as the latter has been ill. He spoke again in discouraging terms of Brazil’s exchange situation and referred to an article he said had appeared a few days ago in the New York Times contending that Brazil is now in no position to resume debt payments.
He agrees that the offer they will make will be a temporary offer and will not be presented as a permanent basis for settlement.