810.34 Leasing/169

The Secretary of State to Senator Gerald P. Nye26

My Dear Senator Nye: I have received your letter of December 427 referring to the United Press despatch dated October 20 alleging that a contract leasing six United States destroyers to Brazil had been signed in Washington by the Brazilian Ambassador and by Mr. Sumner Welles, the Under Secretary of State. You say that absence of any word beyond this since that time has caused you to wonder as to the authenticity of this information and you ask that I advise you concerning the status of the matter at this time.

The United Press report to which you refer was based upon an article fabricated out of whole cloth by the Brazilian newspaper O Jornal.

As soon as the report was brought to Mr. Welles’ attention, which was only a few hours after it had been published in the Brazilian paper above referred to, he issued a categorical denial to the press correspondents approximately in the following words:

“Not only has no contract for the leasing of over-age United States destroyers to Brazil been signed by the Brazilian Ambassador to the United States and by myself, or by any other official of this Government, but the possibility has not even been discussed. It would be [Page 174] utterly impossible for any such contract to be signed until the necessary legislation authorizing such contract has been passed by the Congress of the United States.”

This official denial of the report to which you refer was given considerable publicity in the press, but has evidently not come to your attention.

Believe me,

Yours very sincerely,

Cordell Hull
  1. Chairman, Special Committee Investigating the Munitions Industry.
  2. Not printed.