Memorandum by Mr. Richard F. O’Toole of the Division of Brazilian Affairs to the Chief of That Division (Dawson)


Subject: RDC Investment of $3 Million in Banco de Credito da Borracha.

A few days ago I told Mr. Consley, General Counsel of RDC, that Ambassador Pawley was not disposed to negotiate for a settlement of this matter, on a political basis, unless and until RDC had exhausted its remedies,—and then only with the understanding that the Embassy would be given a free hand in negotiating any settlement.

In another conversation with Mr. Consley, this morning, he told me that RDC considers that it has exhausted all its remedies in this matter and would like the Ambassador to take it up with the Brazilian authorities. He added that RDC would not want to settle on too low a basis say, for example, $10,000. I answered that while I had no knowledge of Ambassador Pawley’s ideas along these lines I felt that his thinking would undoubtedly run along substantial lines. I also said [Page 485] that I would arrange to have his (Mr. Consley’s) wishes brought to the Ambassador’s attention and that no doubt the latter would see that there was a prior exchange of viewpoints in the event that he should decide to take up the case. He asked me to keep him informed of developments.