832.51/2257: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 1:56 p.m.]
5345. Department’s 4015, October 27; and 4290, November 17; and my 5414 [5314], November 16.40 Finance Minister yesterday agreed to make debt settlement effective January 1 instead of April 1, 1944, provided it is administratively possible. This would mean an extra $900,000 in interest for dollar bondholders, as well as better amortization during first 1944 quarter.
The registration requirements constitute principal impediment. Is SEC41 willing on the basis of information available in Department’s files to authorize fiscal agents to send preliminary notice to bondholders immediately after promulgation of Decree-Law? (This should be done by the end of November.)
[Page 790]Embassy suggests that Department obtain from SEC and forward immediately by air mail pouch complete statement of requirements and set of forms. This would permit immediate compilation of required data which Brazilian representative could take to Washington in early part of December for completion of registration formalities prior to January 1.
Telegraphic reply requested.