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

35. Department’s 14, January 20, 4 p.m. I talked over the situation this afternoon with the Minister of Finance. He instructed his debt expert to draw up a new schedule satisfactory to us of payments reversing the present favorable treatment the European bondholders enjoy under the first year of the Aranha plan. He directed his expert also to postpone the meeting set for tomorrow until Thursday afternoon.

He says, however, that the present state of his budget does not allow him to increase the global figure (the amount required for the first year of the Aranha plan) set aside for the payments of the first year to begin on April 1st next.