File No. No. 763.72112/10146

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

[Telegram]

First sentence of your September 17, 2 p.m., ambiguous. Department presumes, however, that you do not mean that your British and French colleagues have taken independent action by submitting to the Brazilian Government a joint note purporting to set forth what you have been authorized by your Government to do. If Department is mistaken in this view, please cable immediately.

With a view to including, in any arrangement effected, the question of withdrawing black list, liquidation of enemy property and [Page 351] partial lifting of embargo and settlement of important financial questions, including whatever measures may be decided upon to relieve hardship facing coffee exporters, Department instructs you to withhold note and to take no action until further instructions. Advise your Allied colleagues, however, that Department approves in principle procedure set forth in Department’s August 10, 5 p.m., but insists upon postponing action pending result of conference here with Ambassador da Gama. Views of Department in this respect have been fully expressed to British and French representatives in Washington. French concur with our view. British would prefer to proceed at once with liquidation plan, but Department feels confident they will respond to our wishes in this matter.

Lansing