832.51/1692: Telegram

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

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.