Foreign Relations of the United States: Diplomatic Papers, 1943, The American Republics, Volume V

832.51/2191: Telegram

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

Rio de Janeiro, September 17, 1943—noon.
[Received 3:20 p.m.]

4417. Council¹⁵ and Embassy representatives met twice yesterday with Souza Costa, British representative¹⁶ being present at second meeting.

American representatives presented counter-suggestion to Finance Minister’s basic proposal which covered only “alternative A” and was based on two principles of (a) regrouping and (b) establishment of total annual interest payments in an approximate amount which would be required by application of last year of Aranha plan to bonds outstanding with amortization at 50% of such annual interest charges.

Souza, Costa indicated informally that (a) both amounts suggested were too high and that (b) regrouping was principally [primarily] a question between British and Americans. He will comment more specifically at meeting to be held tomorrow (Saturday) morning.

Please inform Foreign Bondholders Council immediately.

Caffery

15. Foreign Bondholders Protective Council.
16. John Phillimore.