File No. No. 763.72112/9770a
The Acting Secretary of State to the Ambassador in Brazil ( Morgan )
Department has received a memorandum from the British Embassy at Washington to the effect that the Brazilian Minister of Foreign Affairs has stated that the President of the Republic is very anxious [Page 347] before the Brazilian Government takes steps to liquidate the principal German commercial houses and banks in Brazil, to receive an assurance that the statutory list would be withdrawn if the German firms are definitely wound up. It is represented to the Department that by securing the withdrawal of the statutory list, considerable popularity would be accrued to the President of the Republic and to the Minister of Foreign Affairs.
British Government state that they are in favor of giving assurances to the Brazilian Government that the published black lists for Brazil will be withdrawn as soon as effective action has actually been taken against the most important German concerns and particularly the German banks. The British Government are prepared to give the necessary assurances to the Brazilian Government, provided (1) that the action contemplated by the Brazilian Government is part of a general policy and will include all German concerns of importance, and (2) that the action of the Brazilian Government will not cause the Associated Governments to refrain from discriminating against the less important German firms in Brazil by including such concerns in a confidential black list.
The Department has conferred with the War Trade Board and has advised the British Government that you would be instructed that in principle the Department favors the procedure above outlined, and in the event that the Government of Brazil takes effective action to eliminate German interests so as to make unnecessary the continuance of the statutory list, this Government, upon being advised of the steps taken and upon being satisfied therewith, will withdraw the published statutory list for Brazil.
You are instructed to confer with your French, British, and Italian colleagues and to unite with them in any action that you may agree upon along the lines indicated in this telegram.