740.00112A European War, 1939/10321: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 11:25 p.m.]
1306. My telegram No. 1041 [1123], April 1, 10 p.m. Aranha arranged for a meeting on April 16 at the office of the President of the Bank of Brazil71 to discuss Proclaimed List problems. Those present included Aranha, Finance Minister Souza Costa, the President of [Page 766] the Bank of Brazil, the Director of Exchange, the Chief of the Economic and Commercial Section of the Foreign Office, myself and my Commercial Attaché.
Following a long discussion of the Proclaimed List policy as applied to Brazil, the Brazilians decided to (1) waive all objections to continuance of the Proclaimed List policy and administration and to collaborate with us in this work, and (2) name a Consultative Committee consisting of the Director of Exchange, the Chief of the Economic and Commercial Section of the Foreign Office and my Commercial Attaché. The President of the Bank of Brazil at the request of Aranha will keep in close touch with the Committee on behalf of the Brazilian Government. The Committee will (a) examine the present list with a view to determining the types of control that should be adopted over Axis commercial interests in Brazil; (b) make recommendations to nationalize such interests, including banks; (c) confer on choice of personnel to control these Axis interests; and (d) suggest cases for listing and delisting.
Aranha and Souza Costa favor the taking over of important Axis interests in the near future and they may recommend a policy similar to the Alien Property Custodian plan in the United States. They stressed the importance of absolute secrecy in handling these cases.
This collaboration is an important development in our relations with Brazil with respect to the Proclaimed List and more effective foreign funds control in Brazil.72
The first meeting of the Committee will take place today.