File No. No. 763.72113/664½

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

[Telegram]

Department’s August 10, 5 p.m. Colleagues and myself are preparing joint note to Brazilian Government stating that if action against most important German concerns in addition to banks is actually made effective, Allied Governments will be ready to take into favorable consideration a proposal to withdraw their black lists from operation in Brazil, under the following conditions: [Page 348]

(1)
That the Brazilian-Allied Governments shall agree upon a list of German concerns operating in Brazil which should be liquidated;
(2)
That the action to be taken against the German concerns, which shall be agreed upon, shall form part of a general policy in pursuance of which the Brazilian Government will extend the process of liquidation to other German businesses of importance in the country;
(3)
That it is clearly understood that the Allied Governments reserve to themselves the right German persons and firms by the refusal of export licenses and by taking customs action against German persons or concerns whose business is not liquidated whenever they consider it necessary to do so; the method adopted for this purpose will be the inclusion of such persons and firms in a list which prevents the exportation of goods to them from the Allied countries or the importation into the Allied countries of the products or goods which they wish to export.

Has the Department any instructions?

Morgan