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

No. 491

Sir: The Department has read with interest your despatch No. 1347 of August 13 last, regarding the agreement between the Brazilian Government and the Western Telegraph Co., whereby a special uniform rate of three francs per word was authorized on all telegrams to the United States “via Galveston” or “via Colon” in payment of transmission from any station in Brazil, regardless of zones, to Buenos Aires and regarding the efforts of the Embassy to modify [Page 74] this agreement which amounts practically to a discrimination against telegrams exchanged between the United States and Brazil.

The Department has discussed this matter informally with Ambassador da Gama, who, as you know, will return shortly to Rio to assume the position of Minister for Foreign Affairs. The Ambassador appears to agree with the Department that the rate in question is a discriminatory one but he is inclined to believe that the question is one which can be more appropriately handled by the courts than by the Foreign Office. He says, nevertheless, that he will investigate the situation upon his return to Brazil and see if there is not something that he can do toward accomplishing the establishment of a more equitable rate.

The Department suggests, therefore, that after Mr. da Gama becomes Minister for Foreign Affairs of Brazil you reopen the question with him.

The various difficulties encountered in dealing with the Western Telegraph Co. make the importance of an American cable connecting Rio with the United States all the more evident. The Department, therefore, reiterates its instructions to you to do everything proper to facilitate attempts of American cable companies to construct such a line.

I am [etc.]

Robert Lansing