832.51/1781: Telegram
The Secretary of State to the Ambassador in Brazil (Caffery)
76. In its acknowledgment of receipt of Aranha’s letter to you regarding repatriation (your 102, March 9, 3 p.m.) Council inquires [Page 599] “whether the Brazilian Government will advise bondholders in advance of purchases for repatriation of bonds to be made under Section 6 of Article I of the Aranha plan”.
In view of the fact that the Council’s promise as regards the public statement which it said it would issue was placed definitely on the understanding “that the offer will disclose to bondholders the whole picture including any repatriation of bonds” (Dept’s 56, March 6, 7 p.m.) there are obvious troublemaking potentialities in this situation if the Council should choose to stress the importance of this question. Therefore the giving of assurances by the Brazilian Government that full disclosure in suitable detail will be made would seem to be greatly desirable and Department hopes that you may be able to arrange such a reply.