The Ambassador in Brazil ( Morgan ) to the Secretary of State
[Received 11:55 a.m.]
95. Following a conference between President of Brazil and Minister for Foreign Affairs, I conferred with latter on subject of your circular telegram of December 7, 8 p.m. The Minister has been [Page 518] informed from Lima that your memorandum took Peru by surprise and created a sharp political crisis which must be calmed before favorable reply can be hoped for. No immediate action on part of Peru is foreseen. At present moment representations from the leading South American powers would be used for local political purposes and would not serve to benefit main purpose. Although Brazil desires to further the common good, her Government will await further information from Lima should appropriate moment for representation come.