832.796/436: Telegram

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

823. My telegram No. 768, July 1, 2 p.m.,62 Burden and Russell63 are very cooperative and very well disposed. However, when they arrived here they were not interested in demortallizing [degermanzing?] Vasp but wanted to try without delay to set up a “national” company under the guiding hand of Panair. I explained to them about the Vasp negotiations and the delay over the new Interventor64 [Page 522] and told them we could not disregard Vasp; although I too want to set up a “national” company with them, et cetera.

I repeat that Messrs. Burden and Russell are most cooperative and sensible but there were many things they did not understand. We are getting their troubles ironed out.

All of this however has meant delay too.

  1. Not printed.
  2. William Burden and Frank Russell, representatives of the Reconstruction Finance Corporation.
  3. This appears to refer to the appointment of a new representative of the central government, Fernando Costa, to the state of São Paulo; he assumed the duties of this position in June.