File No. No. 763.72112/7161
The British Ambassador (
Spring Rice) to the Counselor for the Department of State (
Polk)
No. 503
Washington,
November 14, 1917.
[Received November 15.]
My Dear Mr. Counsellor: I beg to enclose
herewith, under instructions from my Government, summary of
telegraphic instructions
[Page 344]
which have been sent to the British Minister at Rio, regarding
financial measures to be adopted by the Brazilian Government.1 I have the honour to
enquire whether you will be prepared to send instructions to the
American Minister at Rio to support Sir A.
Peel’s representations.
Believe me [etc.]
[Enclosure]
Summary of Telegraphic Instructions Sent by
the British Government to the
British Minister in Brazil (
Peel)
Memorandum
When you consider that a favorable moment has come, you should
inform the Brazilian authorities of the desirability of adopting
the following measures connected with the financial blockade of
the enemy:
- 1.
- A controller should be appointed for all German banks
in Brazil, which should only be allowed to carry on
business subject to license, pending their being wound
up.
- 2.
- Returns should be made by all banks in Brazil of all
funds and securities held by them for enemies.
- 3.
- Embargoes should be placed on all German and Austrian
balances and securities held by banks in Brazil, and
their transference should be prohibited, not only to
Central Powers, but to neutrals.
- 4.
- All banks in Brazil should require of any customer in
Brazil purchasing neutral currency of them, or ordering
remittances to neutral countries, to sign a declaration
that such transaction (a) is in
no way connected directly or indirectly with an enemy,
and (b) is not for investment or
speculation purposes.
- 5.
- All banks in Brazil should be required to obtain from
all banking correspondents in other South and Central
American countries which are neutral undertakings
similar to that required by London banks of their
banking correspondents in Central America and South
America. It would be better, but not necessary, that
this undertaking should be also obtained of banking
correspondents in neutral European countries.
- 6.
- All banks in Brazil should make a daily or weekly
return of all transactions involving sale or purchase of
foreign currencies or remittances abroad. Return might
be divided into two, one showing neutral currencies and
remittances, and the other Allied currencies and
remittances.
In addition you should point out that it is highly desirable that
a strict censorship of all financial cables and letters should
be conducted in collaboration with the Allies. In this
connection you should inform the Brazilian Government that
financial traffic between banks in Brazil and neutral Europe,
especially Spain, has
[Page 345]
been large and continuous, and of great assistance to the enemy.
This refers not only to direct traffic but to traffic through
Brazil from other Central and South American countries.
Washington,
November 14,
1917.
