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

No. 355

Sir: Referring to previous reports concerning compensation mark trade and especially to my despatch No. 350 of February 23, and referring [Page 393] further to my despatch No. 236 of December 31, 1937,81 I have the honor respectfully to repeat that the members of the Brazilian Mission who were in Washington last summer were particularly anxious to ascertain whether retaliatory measures could be expected from the United States in case Brazil continued her compensation mark trade with Germany. As the members of the Mission received the distinct impression that retaliatory measures were not to be expected, they have been since that time impervious to blandishment or argument and have, thus far at any rate, demonstrated only faint interest in the point of view set out in the Department’s various telegrams on the subject. All this is particularly true of Sr. Barbosa Carneiro, who, the Department may recall, was a member of the Brazilian Mission in Washington last summer.

Notwithstanding this situation, I am continuing, and shall continue almost daily, to endeavor to bring about a pertinent change of attitude on the part of the Brazilian authorities.

Respectfully yours,

Jefferson Caffery
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