File No. 832.85/16

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

[Telegram]

Referring to the Embassy’s telegram of August 23, 8 p.m.1 Brazilian Minister for Foreign Affairs stated to me this morning that the Brazilian steamship company, Commercio e Navegação, is prepared, with the permission of the Brazilian Government, to charter to the French Government eight or ten of their vessels averaging 3,000 tons each. The purchase by France of 2,000,000 sacks of coffee, and a promise that the Allies will protect Brazil from loss on the coffee belonging to the state of São Paulo which has been seized in Germany, are the compensations which the Brazilian Government will receive. That Government has decided to retain the former German ships and none of them is involved in the transaction.

The acquisition of France would only include a portion of the fleet of the Commercio e Navegação. Through direct negotiations with that company and with cooperation of the French Government it might be able to secure some at least, of the six steamers in which the Navy Department is interested.

Morgan
  1. Not printed.