832.24/295: Telegram
The Chargé in Brazil (Burdett) to the Secretary of State
[Received 7:55 p.m.]
667. For the Under Secretary. Reference Embassy’s telegram No. 666, December 14, 3 p.m., and despatch No. 3971, December 11, 1940.83
A Cabinet meeting will be held this afternoon to discuss retaliatory measures against Great Britain. Executives of British corporations in Brazil are greatly worried over the possibility of expropriation (with compensation) of British owned properties here. The Sao Paulo Railway is especially mentioned in this connection and it is understood that decrees authorizing the expropriation of this company and possibly also of the Great Western and Leopoldina Railways have been tentatively drafted in the Ministry of Transportation.
Aranha today minimized this eventuality but said that the heavy pressure being brought by the army and navy might possibly force him to take other drastic action. In this connection he is not excluding the possibility of breaking off diplomatic relations.
Aranha requests me to inform you that he will do his best to restrain the surge of anti-British feeling but that this is most difficult in view [Page 655] of the German inspired agitations toward vigorous retaliatory action against the British.
With the delay in the release of the Siqueira Campos, resentment against the British is becoming increasingly evident. Clandestine circulars have appeared in Rio de Janeiro attacking Aranha and urging the appointment of Goes Monteiro as Minister for Foreign Affairs. These circulars are understood to emanate from German sources and while not taken seriously, are an indication of the situation.
I hope that the Department can impress upon the British Government that it is imperative to release this vessel before the situation in Brazil becomes worse. The British conditions can be considered later in an atmosphere more propitious for a favorable solution.
- Latter not printed.↩