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

810.74/372

Memorandum of Conversation, by the Adviser on Political Relations (Duggan)

[Washington,] June 29, 1942.

Participants:	Colonel David Sarnoff, President of the Radio Corporation of America;
	Mr. Breckinridge Long, Assistant Secretary of State;
	Mr. Laurence Duggan, Adviser on Political Relations.

Mr. Long told Colonel Sarnoff that he was getting more perturbed every day by the continued operation of the consortium circuits between Argentina and Chile and Berlin and Tokyo. These circuits were being used for the transmission of vital information regarding ship movements, cargoes, and general intelligence. The closing of these circuits required the cooperation of the British interests. Despite conversations between Mr. Hopkins and Lord Beaverbrook, at the time of Mr. Churchill’s first visit³⁹ as a result of which Lord Beaverbrook promised a cooperative attitude by the British interests, these interests have so far been reluctant to take any affirmative action other than to close the station at Rio. As a result of developments elsewhere, the possibilities of British cooperation seem better. Sir Campbell Stuart, in a recent meeting, expressed ignorance of the discussions last winter regarding the closure of the circuits with Argentina and Chile but stated that he would be glad to go into the matter fully after his return from a trip to Canada. A meeting has been arranged for Monday, July 6 at 3:00 p.m. Mr. Long expressed the hope that Colonel Sarnoff would be able to attend that meeting. General Davis and Mr. Winterbottom⁴⁰ of the RCA have also been invited to attend the meeting.

Colonel Sarnoff said that he was prepared to do whatever was necessary. Speaking without having given any previous thought to the matter, he believed that there were various alternatives. The first was for the Argentine and Chilean Governments to take over the stations themselves. The RCA had no objection to this. On the contrary, it had favored such action by the Argentine Government about two years ago. The I. T. & T. blocked the deal.

The second alternative was for the United States and British interests to place in the stations reliable personnel experts in cryptography, et cetera, who could detect whether the circuits were being used for the transmission of intelligence to the enemy. He would be glad to send General Davis on a trip to Argentina to look into the situation if that was desirable. Colonel Sarnoff stated that he, of course, would be glad to attend the meeting on Monday afternoon provided that he could return in time from a detail on which he was being sent to Florida. In his wide experience, Sir Campbell Stuart was the only man whom he had never been able satisfactorily to size up. He was the acme of courtesy but always turned up as the man behind the scenes blocking the extension of the RCA service.

Mr. Long permitted Colonel Sarnoff to look over the list of unsatisfactory personnel as obtained from the Embassy at Buenos Aires. … Colonel Sarnoff thought that there was no reason for delaying any further in getting rid of any undesirable employees. He thought that this was a first step which should be taken regardless of action with regard to severance of communications. In fact, he thought that with code experts in the stations it would be possible to ascertain what the Axis was sending back and forth.

Mr. Duggan stated that he had always been informed by the competent authorities of this Government that what was desired was the complete severance of these circuits since it was always possible to arrange the most innocent code for the sending of highly important messages.

Colonel Sarnoff said that, of course, the Axis could always continue to transmit information via neutral countries. This would be more difficult but nevertheless entirely feasible.

39. Prime Minister Churchill came to Washington for conferences with President Roosevelt, December 22, 1941–January 14, 1942, interrupted by trips to Ottawa and Palm Beach. Correspondence on these conferences is scheduled for publication in a subsequent volume of Foreign Relations.
40. W. A. Winterbottom, vice president and general manager of R. C. A.