File No. No. 763.72113/758

The Acting Secretary of State to the Secretary of the Treasury ( McAdoo)

My Dear Mr. Secretary: I acknowledge the receipt of your letter of the 9th instant concerning the British Government’s plan for the taking over and liquidation of German banks in Brazil.

I have made it very clear to the British Embassy that this Government believes it to be undesirable to arrange this matter other than by negotiations between the Governments interested. Sir Richard Crawford has advised me that he has cabled his Government your views to the effect that the group of British banks, referred to in a telegram handed to a representative of your Department by Sir Richard Crawford, should be told not to proceed further in this matter until a full agreement is reached with this Government.

Faithfully yours,

Frank L. Polk