832.51/1749: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 2:14 p.m.]
93. Referring to the penultimate paragraph of the Department’s telegram No. 56 of March 6, 7 p.m., Aranha is considering attaching the following statement to the debt announcement in order to take care of the exigencies of the Bondholders Council in the premises:
“The Brazilian Government has not worked out plans for now or the near future for the repatriation of bonds in the open market. The Brazilian Government hopes that in due time improving trade and exchange conditions may permit it to avail itself of the provisions of article No. 1 (6) of the Aranha plan decree which permits repurchases in the open market. Under no conditions, however, does the Brazilian Government intend to make more than moderate purchases of this character; and will make no such purchases without consulting the interested government.”