File No. 832.85/34

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

[Telegram]

Prospects are favorable for acquisition by us of considerable number of ex-German vessels. On account of insistence of French and British Ministers that their Governments be allowed the use of some of these ships, the Minister for Foreign Affairs appears likely, however, to propose that all the ex-German ships which Brazil can spare [Page 332] shall be chartered to the United States, France, and England for such employment as the three powers shall consider advantageous to their common interests. What reply shall I make to such a proposal?

Morgan