Foreign Relations of the United States: Diplomatic Papers, 1942, The American Republics, Volume V

810.74/239a: Telegram

The Secretary of State to the Ambassador in the United Kingdom (Winant)

Washington, January 21, 1942—2 p.m.

243. In addition to matters discussed in Department’s 160, January 13,¹ Harry Hopkins² took up with Lord Beaverbrook³ the desire of this Government to accomplish the total severance of telecommunications circuits between the other American Republics and Berlin, Tokyo, and Rome.

For your information, the telecommunications systems in the other American Republics are operated mainly by two groups: the first, comprised of affiliates of I. T. & T.,⁴ and the second, which is known as a consortium, consisting of United States, British, French, and German members. Up to the beginning of the present war, the stock was evenly divided, and, under a trust agreement, each country was represented by two trustees over whom a ninth member with the title of Chairman presided. By mutual agreement, the chairmanship permanently fell to a United States citizen, thereby giving the United States a permanent veto power. The chairmanship remained vacant since the retirement of General Dawes⁵ and was not filled until January 19, 1942.

For your information, the consortium stations are located in Argentina, Brazil, and Chile. These stations are organized under local laws, although 60 percent of the stock is owned by the consortium trustees. Department is informed that since Great Britain’s involvement in the war, the control of the German stock of this organization has been taken over by the London Government. However, the consortium stations in South America have continued to take traffic to and from the enemy countries. Solely for your information, R. C. A.⁶ has strongly emphasized the necessity of obtaining the unequivocal concurrence and cooperation of the British consortium interests in order effectively to close the circuits in question.

In this connection, Beaverbrook transmitted to Hopkins on January 2 a copy of a telegram from a London official named Layton,⁷ who stated that at Beaverbrook’s suggestion he had discussed the above question with Wilshaw of Cable and Wireless, who said that he “would be personally delighted to see the traffic stopped and will cooperate in whatever line the Government proposes”. This information has been telegraphed to Rio in order that this Government’s resolution concerning the elimination of Telecommunications facilities to Axis countries may be presented to the Meeting of Foreign Ministers with some assurance of the concurrence of British consortium representatives.

Will you determine as soon as possible if Cable and Wireless Limited has been instructed by the British authorities to notify its consortium representatives in South America to take every necessary step to cooperate fully with this Government’s effort to close communications channels in that area to enemy countries. If this has not been done it may seriously affect outcome of this government’s telecommunications Resolution at Rio meeting.

Hull

1. Not printed; it dealt with direct radiotelegraph circuits between the United States and points in the British Empire (811.7448A/12a).
2. Special Assistant to the President.
3. British Minister of Supply.
4. International Telephone and Telegraph Corporation.
5. Gen. Charles G. Dawes.
6. Radio Corporation of America.
7. Sir Walter Layton of the Advisory Committee on Imperial Communications; copy of telegram not found in Department files.