File No. 832.85/16
The Secretary of State to the Ambassador in Brazil ( Morgan)
Your August 14, noon, August 22, 4 p.m., August 23, 8 p.m., and August 24, 2 p.m.1 Utmost importance that vessels be acquired by United States at once from every source for successful prosecution war. A ship now ready for use and able to get into trade worth several vessels of same character later on.
Department understands that Brazil intends to retain for future use in her own trade the 33 interned German vessels which are not now utilized. If, however, owing to urgency present situation, Brazil should consider change in her policy to retain these ships, you are instructed discreetly to inquire of the Brazilian Government and cable Department, whether that Government would enter into agreement with United States Government whereby some or all of these vessels would be turned over to United States for repair and use upon assurance being given that the same number of as good or better bottoms will be laid down now and turned over to Brazil at the end of the war, or if the Government of Brazil prefers the United States will pay the fair market price for these ships upon delivery now and charge the fair market price ruling at time of completion and delivery of those constructed for Brazil and under either arrangement a sufficient number of vessels shall be placed in the United States–Brazilian trade to supply present needs of Brazil. This would insure protection to present and future foreign and domestic trade of Brazil and help to satisfy the urgent and increasing demands on United States Government at present time.
Besides being very much interested in these interned German vessels, the United States desires to acquire ships of the Brazilian merchant marine especially of larger tonnage. You are instructed to cable Department as soon as possible a definite and complete statement of Brazil’s terms and conditions relating to acquisition or use by the United States of the ships of Brazil’s merchant marine which may now be in market in order to furnish Shipping Board with data necessary for decision and formulation of proposition from United States Government.
- Telegrams of August 22 and 23 not printed.↩