File No. 763.72/10261a
The Secretary of State to the Chargé in Great Britain ( Laughlin )1
7992. A few days ago the Department was approached by the French High Commission with the view of enlisting the assistance [Page 698] of this Government in securing greater coordination between the English, French and United States Governments in negotiations with Brazil. A frank discussion of the problem was had with these gentlemen and later with Sir Richard Crawford of the British Embassy. Two points were made very clear by the Department to both the French and British representatives.
- 1.
- The United States Government is most desirous that Brazil on account of the close friendship evidenced by that country towards the United States should be treated throughout all negotiations as a most valued associate of the countries at war against the Central Powers and that great care should be taken to assist Brazil in bearing the burden of her share in the prosecution of the war.
- 2.
- That the United States Government is strongly of the opinion that all future negotiations between Brazil on the one side and the United States and the Allies on the other should be carried on in Washington and not in Rio de Janeiro.
The reasons which prompted this Government to lay stress on 1 and 2 supra are as follows:
- 1.
- Brazil is more actively participating in the war than almost any other South American country and for this reason if for no other she should receive preferential treatment from this country and the Allies.
- 2.
- The negotiations now pending between the United States and
Brazil involve the following:
- (a)
- A proposal on the part of this Government in order to place more tonnage at the disposal of the War Department and the Allies to declare an embargo on such important commodities coming from Brazil as coffee and Brazilian nuts. If this embargo is put in force a considerable amount of tonnage will become available for the carrying of essential commodities such as manganese from Brazil to the United States and for trans-Atlantic service for the benefit of the Allies. However, the embargo cannot be imposed except on such terms as may be agreed upon between this country and Brazil for the protection of the coffee and nut industry of that country. These terms may involve the expenditure by this Government of a large sum of money in the purchase of these commodities which cannot be transported to market except by using present Brazilian tonnage and certain interned German boats not heretofore acquired by the French.
- (b)
- Certain financial transactions which may result in a loan from this country to Brazil and certain other financial arrangements with reference to the financing of Italian purchases in Brazil.
- (c)
- Purchases by United States Food Administration and by War Industries Board in Brazil.
The above clearly indicates that these negotiations are intricate and important and that inasmuch as they involve many departments of this Government they should be conducted in Washington in close cooperation with the British and French representatives now here.
You are accordingly instructed to present this matter at once to the Foreign Office. If you find there is substantial agreement with the position of this Government you will suggest that no action be taken by the Government to which you are accredited until a further discussion is had in Washington with the British and French representatives as to the best procedure to be adopted in notifying Brazil of our desire to conduct all negotiations in Washington.
This matter is considered urgent and a prompt report is requested.
For your confidential information, Department understands that Lord Reading has urged his Government to accept this proposal. Further the French High Commission is entirely sympathetic to this plan.
- The same, on the same date, to the Ambassador in France, No. 4242; mutatis mutandis, to the Ambassador in Italy, No. 1431, June 12, with added reference to Italian participation in the discussions (File No. 611.326/53a).↩