Foreign Relations of the United States: Diplomatic Papers, 1945, European Advisory Commission, Austria, Germany, Volume III

462.00R/8–2845

The Secretary of State to the Ambassador in Brazil (Berle)

Washington, August 28, 1945—9 a.m.

2089. The US, France and UK today presented identic notes⁹⁴ to the Missions of Belgium, Netherlands, Luxemburg, Denmark, Greece, Yugoslavia, Czechoslovakia, Canada, Australia, New Zealand, Union of South Africa, India and Egypt⁹⁵ inviting them to submit by October 1 certain information relative to their claims for reparation against Germany and to include a statement regarding the value of German assets subject to their control. None of the American republics were included in this invitation because it is felt that the problem of disposing of German external assets in the Western Hemisphere should under the terms of Resolutions 18 and 19 of the Mexico City Conference⁹⁶ be the subject of consultation among the American republics. Moreover, it was considered that the problems of the war devastated nations whose claims will undoubtedly exceed German assets already under their control are distinguishable from those of the other American republics. The war devastated nations will require assets from Germany itself to achieve even very partial satisfaction. The claims of the American republics, on the other hand, can in most instances be satisfied in their entirety out of assets already subject to their control.

You should explain to the Brazilian Government that despite its participation in the war no invitation was extended for the foregoing reasons. You should explain confidentially that the procedure herein suggested is the most satisfactory for the situation of the American republics.

You should add that US will shortly propose inter-American discussions for the purpose of establishing principles regarding legitimate claims against German assets and for the disposition of German assets in excess of local claims in accordance with post-war reconstruction and rehabilitation needs in war devastated countries.

You should explain to the FonMin⁹⁷ that the case of Brazil was given particular study and that this Govt wishes the Brazilian Govt to know that the Brazilian Govt’s special position as an active belligerent was not overlooked. However, the amount of German external assets located in Brazil is sufficient when taken in relation to the war damage suffered by Brazil so that it is extremely unlikely that Brazil would receive any compensation by way of reparation deliveries from Germany or in any way other than use of the German assets located within Brazil.

It is hoped that the Brazilian Govt will appreciate the fact that the US Govt has considered its interests in this regard and will agree that the solution suggested is the one most favorable to Brazil’s interests.⁹⁸

Byrnes

94. Infra.
95. An identic note was also sent to the Norwegian Ambassador.
96. See Final Act of the Inter-American Conference on Problems of War and Peace, p. 55.
97. Pedro Leão Velloso.
98. The Brazilian reaction is summarized in telegram 2983, September 27, 3 p.m., from Rio de Janeiro, printed in vol. ix , section under Brazil entitled “Concern of the United States regarding the elimination of Axis interests in Brazil.” Foreign Minister Velloso’s position was that no arrangement governing Brazil’s reparation share was binding without her consent, but that the question was academic since there was no effective method for Brazil to collect reparations anyway (462.00R/9–2745).