832.51/1578: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received August 31—3:55 p.m.]
278. Aranha insisted again this morning that Brazil must obviously make a debt settlement with the United States. Insisted also that settlements with the various interested countries should be made on the basis of respective balances of trade.
I observed that the negotiations were not making much progress. [Here follows explanation that negotiations were slowed up due to uncertainty as to the situation arising from the war menace. A rumor that the debts might be paid in milreis was denied as not worth attention.]
In closing I urged him to press the Minister of Finance for some action. He said that he would do so.