Memorandum by the Chief of the Division of the American Republics ( Duggan ) to the Under Secretary of State ( Welles )

Mr. Welles: It is daily clearer that the situation in Argentina, Uruguay and Brazil is deteriorating in the sense that a successful revolution backed by the Nazis is becoming a more likely possibility.

In as much as you mentioned to me in confidence the decision of the President to detach two or three cruisers to go down the east coast, I have not mentioned this plan to anyone. May I raise for consideration the desirability, however, of that information now being made public in order to put a little iron in the veins of our friends in those countries.

Since it is not likely that those cruisers will be able to reach the east coast in the near future, may I suggest the desirability of a flight of a half-dozen Army bombers up and down the east coast. I think that this would be very helpful at this particular stage.

Laurence Duggan