740.00112A European War, 1939/7599: Telegram

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

547. Reference your despatch 6518, February 14, 1942.

1.
It is necessary to maintain control over Proclaimed List actions in Inter-Departmental Committee here. We fully agree on necessity and desirability of consultation and full exchange of information with Brazilian authorities on cases and while as practical matter we must and will give great weight to their views the collaboration should be on basis of consultation rather than necessity for securing agreement before inclusion of cases on Proclaimed List or confidential list. Full reports should be furnished on cases proposed for addition and deletion and also on cases postponed, giving reasons and precise statement of corrective or control measures actually applied by Brazilian authorities on specific cases.
2.
We are concerned about tendency to consider confidential list as permanent alternative control for many cases outside categories stated Department’s air mail circular instruction of November 25, 1942 [1941].62 Confidential list control not adequate or desirable as substitute for Proclaimed List. Personal air mail letter from Acheson to Ambassador63 will explain fully factors involved here.
3.
Dr. Souza Costa65 received telegram from President Vargas March 2 as follows “Newspapers are publishing a new list of Brazilian firms included in the American Black List. This matter, of great concern to our industries and commerce, must be examined carefully. We do not know the sources of information used by American authorities in compiling the Black List. Unknowingly they may be acting on biased information arising from rivalry and intrigue. Under the existing regime of full cooperation with the United States of North America, it is desirable that we understand each other in everything, including this matter, of utmost importance to our development and expansion.” Does this mean that President was not informed by Brazilian authorities about consultative procedure? In your discretion please bring operation of consultations to President’s attention and reassure him concerning recent additions to list. Dr. Souza Costa is absent from Washington now but we are endeavoring to arrange for thorough discussion of situation with him March 10. Please report fully your interpretation and evaluation of this development and current situation regarding maintenance of strong Proclaimed List policy which in last analysis is necessary if we are to be able to justify and be reasonably successful here in our unending efforts to meet the essential requirements of Brazil and the other American republics.
Welles
  1. Not printed.
  2. Infra.
  3. Arthur de Souza Costa, Brazilian Minister of Finance.