740.00112A European War, 1939/7599

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

No. 6518

Sir: I have the honor to refer to the Department’s circular telegram of January 28, 1942, 11:00 p.m.,53 and to the Department’s Instructions No. 2104 of January 29, 1942, and No. 2136 of February 5, 1942,54 both in connection with cases under consideration for inclusion in the Proclaimed List for Certain Blocked Nationals.

Consultations that have been carried on with Brazilian Government officials have resulted in the active functioning of the Committee referred to in Embassy’s telegram No. 335 of February 3, 10:00 p.m.55 It will be recalled that this Committee consists of the Chief of the Economic and Commercial Division of the Ministry of Foreign Affairs,56 the Director of Exchange of the Bank of Brazil57 and the Commercial Attaché of the Embassy.58

The Committee’s first meeting took place in the Embassy several days ago, and although no definite policy was outlined, several important agreements in connection with the Proclaimed List were reached.

(1)
The Embassy agreed that pending review by the Committee, mentioned above, it would request the Department to suspend action on all cases that have been recommended for inclusion in the Proclaimed List, but which have not as yet been included in that list. The Committee will review these cases, and either remedial or preventive steps agreed upon by the Committee will be taken locally, or the cases will be again recommended to the Department for inclusion in the Proclaimed List. This procedure should prevent an unnecessary increase in the size of the Proclaimed List, and at the same time gives promise of a more direct approach to control of cloaking and other objectionable activities.
(2)
The Embassy will continue to submit recommendations to the Department for the inclusion of firms and individuals in the Proclaimed List, but hereafter, each case will be reviewed by the Committee before a recommendation for inclusion is submitted by the Embassy. It is evident that if the Brazilian authorities, represented on the Committee, do not object to our recommending to the Department that such cases should be included in the Proclaimed List, it is a strong indication that these cases should be included, and I urgently request that all cases so submitted be agreed to by the Interdepartmental Committee.59
(3)
Certain cases now included in the Proclaimed List are being referred to the Embassy by the Ministry of Foreign Affairs. Remedial steps that will enable the Embassy to recommend that these cases be delisted are being facilitated by the full cooperation of the Bank of Brazil and of the Foreign Office. These offices are enforcing control and corrective measures, which the Embassy, acting individually, could hardly hope to effect.
(4)
The Bank of Brazil is studying the question of controls to be set up over Japanese agricultural producers so that Brazil’s social and economic structure shall not be interfered with, and at the same time, we shall be enabled to attain the objectives of the Proclaimed List.
(5)
In general, the Committee is opposed to inclusion of individuals in the Proclaimed List, and will, unless such action will not achieve our objectives, recommend that such individuals be included in the Confidential List.60

I am hopeful that the active cooperation of the Brazilian authorities, extended to us through the Committee, will enable us to remove from the Proclaimed List, under conditions fully satisfactory to us, many troublesome cases now included in it. I must urge, however, that the Interdepartmental Committee, take immediate action on such cases that will be submitted by the Embassy with the recommendation that they be delisted.

I also anticipate that through the work of the Committee, the Proclaimed List will become much more effective, and that we will be in a better position to achieve the results we have been striving for.

In accordance with the plan outlined above, a direct reply will not be submitted to the Department’s Instructions Nos. 2104 and 2136.61 Airmail Despatches No. 6509 and No. 651761 are being submitted today. These despatches contain recommendations for inclusion in the Proclaimed List and in the Confidential List. It is recommended that the Department take immediate action on these cases so that those recommended for inclusion in the Proclaimed List shall appear [Page 759] in Supplement No. 1 to Revision No. 1, which will shortly be published.

The Director of Exchange of the Bank of Brazil suggested that [at] this first Committee meeting that a representative of the British Embassy be invited to attend subsequent meetings of the Committee. He approached the British Embassy in the matter, and that office has shown its willingness to cooperate and to work with the Committee, and has informed London accordingly. It is anticipated that hereafter, both Embassies will reach agreement on cases before they are presented to the Committee for consideration, and that henceforth, recommendation for inclusion in the respective lists will be submitted at the same time by each office.

The Department’s circular telegram of February 12, 5:00 p.m.,62 in connection with cooperation with the British Embassy on Proclaimed List matters will be answered in more detail shortly.

Respectfully yours,

For the Ambassador:
John F. Simmons

Counselor of Embassy
  1. Ante, p. 285.
  2. Neither printed.
  3. Not printed; the Committee mentioned was responsible for Proclaimed List matters in Brazil.
  4. Mário Moreira da Silva.
  5. Francisco Alves dos Santos Filho.
  6. Walter J. Donnelly.
  7. The administration of the Proclaimed List was the joint responsibility of the Secretary of State, the Secretary of the Treasury, the Attorney General, the Secretary of Commerce, the Board of Economic Warfare, and the Coordinator of Inter-American Affairs.
  8. For an explanation of the difference between the Confidential List and the Proclaimed List, see letter of March 30 from Assistant Secretary of State Acheson to the Ambassador in Brazil, p. 760.
  9. Neither printed.
  10. Neither printed.
  11. Not printed.