832.51/1726b: Telegram
The Secretary of State to the Ambassador in Brazil (Caffery)
37. Department’s 36, Feb. 21, 7 p.m. The Council has outlined the terms on the basis of which it will make a favorable recommendation to the bondholders as follows: 50 percent of the contractual interest on the Federal bonds; 40 percent of the contractual interest on the State bonds; 30 percent of the contractual interest on the municipal bonds, and they hope to have Ceara included in at least the lower category of the municipal bonds.
The Council also states that it would prefer that the above offer be made for 2 years rather than for 4.