File No. 832.85/933

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


Department’s September 30, 4 p.m. Have obtained assurance from President’s office, Foreign Office and Finance Minister that French authorities have not made propositions regarding remaining German ships and that if they do they will not be entertained. Brazilian Government realizes the importance of negotiations in Washington for which it hopes a satisfactory conclusion.

Minister of Finance states that there is much discontent with French ship convention. French Government has only purchased half of the coffee included in the agreement and is very backward in its payments. When the renewal of the contract comes up nothing will be decided before consulting the Department.