832.51/1491: Telegram

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

203. My 202, June 28, 4 p.m. The Minister for Foreign Affairs telephones me that the President has ordered the Minister of Finance to instruct the Bank of Brazil to deposit at once $1,000,000 in New York banks as a pledge of good faith to be used for payments (on arrears) on the debt service.

An invitation will be sent to the Foreign Bondholders Protective Council to send representatives here in the near future to discuss:

1.
In what form they desire the $1,000,000 to be paid out;
2.
The final settlement of the whole dollar bond debt business.

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The Minister will discuss the matter further this afternoon with the Minister of Finance and will give me more pertinent information tomorrow at noon.

Caffery