632.6231/147: Telegram
The Chargé in Brazil (Scotten) to the Secretary of State
[Received 3:42 p.m.]
31. For Assistant Secretary Welles. In conversation yesterday with the Acting Minister for Foreign Affairs12 the latter informed me that he is urging very strongly upon the President of the Republic the desirability of Brazil not renewing the Brazilian-German compensation arrangement which expires on July 31st next.
As the Department is doubtless aware the Acting Minister for Foreign Affairs was consistently opposed to the consummation by Brazil of the compensation arrangement with Germany and I believe that he will sincerely do what he can to prevent the renewal of the arrangement. However since he is lacking in political influence I am not sure that his views will have much weight with the President unless we can do something to strengthen his hand. For this reason I venture to suggest that the Department send him in whatever way seems most [Page 321] practicable a carefully prepared message recalling Mr. Welles’ conversations with the President and the Ministry of Finance during his visit to Rio de Janeiro and again setting forth in general terms our objections to the Brazilian-German arrangement; stating that we are convinced that the operation of this arrangement which has been in effect now for nearly one year has in fact been harmful to our trade and has practically nullified any benefits which we might have received from the Brazilian-American trade agreement and expressing the hope that Brazil will see fit to allow the arrangement to lapse upon its expiration. I do not think such a message should carry any reference to my conversation yesterday with the Acting Minister of Foreign Affairs. I feel that if the Acting Minister of Foreign Affairs could receive such a private advice at this time signed by the Secretary of State or Mr. Welles which he could show to the President it would lend great weight to his arguments and might prove the deciding factor in persuading the President to allow the agreement to lapse.
- Mario de Pimentel Brandão.↩