832.51/1694: Telegram

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

29. My conversation with Economic Adviser.6 Aranha says he will endeavor to persuade President and Cabinet to agree to resume payments on basis of one half of payments scheduled for the last year of the Aranha plan but he is doubtful of their agreeing to “last year”; although he believes they would agree to one half of payments scheduled for first effective year of the Aranha plan that is, April 1934 to March 31, 1935.

He says that as contracts for some loans stipulate payments in either dollars or pounds their annual dollar payments will now relatively be increased and dollars are expensive and pounds cheap.

  1. The Adviser on International Economic Affairs, Herbert Feis, telephoned from Washington to the Ambassador in Brazil.