832.5151/610: Telegram
The Secretary of State to the Chargé in Brazil (Gordon)
83. Your 122, May 7, 1935, 1 p.m. The Council has expressed distinct preference for the issue of definite obligations of the type that is expected to emerge from the British agreement, but of course would greatly prefer that these be obligations by the Bank of Brazil guaranteed by the Brazilian Government rather than straight obligations of the Brazilian Government. Please therefore, in framing your Aide-Mémoire, take this position. You may also renew your suggestion that it is highly desirable that before the actual terms and form of the obligations are decided upon, the matter be discussed with American interests or organizations representing the American creditors.
Previous instructions on other features of the program for clearing up this deferred indebtedness remain as outlined in previous instructions, and if you are not completely clear on details, communicate with the Department.