The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 5:19 p.m.]
27. My 16, January 13, noon. Aranha tells me he discussed the debt situation yesterday with President Vargas who agreed to a provisional arrangement for the assumption of payments under the Aranha plan on the basis of 50% of all dollar payments due under the first year of the Aranha plan with increases in subsequent years on the basis set out in the Aranha plan. I reminded him that the other day he had spoken only of “50% of all dollar payments due in the last year of the Aranha plan”….
Aranha said that a Cabinet meeting has been called for tomorrow, Thursday, afternoon to consider this debt matter.
He leaves for Buenos Aires by air early Friday morning.
I would appreciate an indication of the Department’s attitude.