632.003/196: Telegram

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

123. For Welles.55 I hope you will be able to examine my telegram No. 122 of May 10, 4 p.m. in regard to the 2 per cent tax.

I have no personal feeling whatever on this subject and any possible embarrassment to the Embassy is of distinctly secondary importance. I am troubled, however, by the knowledge that the Department will be subjected to severe criticism by American business interests here if I act on its 69, May 8, 7 p.m.; for that reason I feel that I owe it to you to restate the case in order that action may be taken in full understanding of the problems involved.

I have been unable to make the Department’s communication to Macedo Soares over the week end which has afforded me this opportunity for further consultation. I should be glad if you would let me know for my guidance whether the Department’s views have been communicated to Aranha as this would mean that they are known to the Brazilian Government before I have an opportunity to communicate them. If the matter has not been discussed with him, I trust you will withhold any communication to him until after final decision has been taken.

  1. Sumner Welles, Assistant Secretary of State.