832.796/823: Telegram

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

652. Your 829, March 12, 7 p.m., 832, March 12, 11 p.m., and 837, March 13, noon. I am requesting the proper persons interested in this matter to meet on Monday to canvass it anew with a view to sending you a detailed statement of the Department’s views. In this connection it would be helpful to have in addition to your report of your conversation yesterday with Aranha your recommendations as to the best way to proceed in this difficult situation.

You, of course, are thoroughly aware that the War Department looks with great concern upon the continued and unrestricted use by Condor of its radio facilities. Reports received from absolutely reliable sources indicate that the Axis is kept fully posted on the movement of all United States military aircraft through Brazil.

From what I know of the situation, it seems that the status of Hardin now becomes almost the crux of the situation because if Condor really follows his advice in effecting the complete reorganization of the company, we would fully attain our objective.

I agree that under the circumstances you took the right course in authorizing the delivery to Condor of the gasoline ordered by the Brazilian Government. I hope, however, that it will be possible to avoid future requests until you are satisfied that the company no longer is a threat.