File No. 832.85/43

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


Department’s October 18, 10 p.m.1 French Ambassador has informed Department that his Government is unwilling to withdraw its proposal looking to the acquisition of a certain amount of German ships in Brazil, notwithstanding the suggestion made by the United States that negotiations could probably be conducted more satisfactorily by them.

This matter has been the subject of discussion between the Department and Shipping Board and latter has informed Department that it considers that it would be a loss of time to urge American proposal in view of attitude taken by French Government, and that it would be better to stand aside and allow French Government to pursue its program either to success or failure.

You may use this information in the way you consider most advantageous for American interests.

  1. Not printed.