632.6231/276
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received December 30.]
Sir: I have the honor to refer to the Department’s telegram No. 87 of November 24, 2 p.m., suggesting an addition to the formula that the Foreign Office proposed to embody in the arrangement to be consummated with Germany. The Foreign Office now advises me that conversations will shortly ensue with the newly arrived German Ambassador, and it is expected that the arrangement with Germany will be consummated in the near future.
Referring specifically to the Department’s suggestion, the Foreign Office indicates that while it does not believe that it will be possible to secure the consent of the Germans to follow the exact text proposed [Page 350] by the Department, it probably will be possible to obtain the inclusion of a sentence which will meet the Department’s views and which will run somewhat as follows:
“In no event will either country engage in or permit any subsidization of exports in the trade between them which would impair or contravene any international obligation or officially known assurance of the importing country.”
The Foreign Office explained that the words “officially known” were intended to refer to the letter dated July 14th from the Brazilian Ambassador at Washington to the Department. The Foreign Office added that it sees no objection to the publication of this letter, and assumes that the Department will not object to it either.
Respectfully yours,
Counselor of Embassy