File No. 195.1/51a

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

[Telegram]

Matter of detention of steamer Robert Dollar considered of serious consequence. Validity of transfer of ship from British to American registry and flag is to be determined by the competent authorities of Great Britain and the United States and such of the other belligerents as may, in a manner recognized as regular and proper, question the right of transfer. United States authorities have recognized transfer and given ship registry, and Department understands British authorities have closed the ship’s British register. Action of Brazilian authorities, if as reported, sets aside the action of competent American authorities and assumes in effect, though unintentionally of course, the position of a belligerent captor toward the steamer Robert Dollar .

Precise principle involved has been decided by this Government since outbreak of war in case of transfer of a ship at San Francisco from flag of one belligerent to that of another belligerent, the competent authorities holding that if the transfer papers were regular this Government would leave the interested countries to settle question of the right of the parties to make transfer and that recognition of transfer papers could not possibly affect neutrality of the United States.

Owner of Robert Dollar has already sustained considerable loss from detention of ship and unless attitude of Brazilian Government is modified so as to permit the vessel to sail, Brazilian Government must be regarded in attitude of intervening in behalf of other countries to seize and hold an American registered ship.

If position of Brazilian Government is at this time unfavorable to clearance or release of vessel, bring to the attention of the Brazilian Government in the sense of the foregoing. Report promptly.

Bryan