File No. No. 763.72112/4086
The Ambassador in Brazil ( Morgan) to the Secretary of State
[Received July 22, 8.20 p.m.]
Referring to the Department’s telegram of June 20 regarding trade with the enemy.1 Under arrangements between Embassy and British Legation, Commercial Attaché Downs and an official of British Consulate have conferred regarding British statutory relative to Rio de Janeiro. Examination of lists relative to other Brazilian ports under way.
[Page 341]There are 326 banks, corporations, firms, and individuals on Brazilian list which can be separated into three general classes:
- (1)
- Those which are undoubtedly German. These number 73 in Rio de Janeiro.
- (2)
- Those which serve as cloaks for German enterprises. These number 21 in Rio de Janeiro. Some of them are bogus firms.
- (3)
- Firms and individuals, many of which are Brazilian, which have or have had dealings with German houses or individuals in Brazil, in certain cases only on a certain occasion. These number 12 in Rio de Janeiro.
The occasional furnishing of supplies to German cruisers and raiders off the coast is the only military service any of these three classes appear to have rendered.
The Brazilian Government will be gratified if the American Government finds it inadvisable for the present to establish a statutory list for this country, believing that the development of trade relations between the United States and Brazil will be embarrassed to the advantage of America’s commercial rivals. Embassy believes that danger to be a real one.