740.35112A/7–3145: Telegram

The Ambassador in Argentina ( Braden ) to the Secretary of State

1707. Argentine authorities who have intervened Axis drug firms here have requested opinion on ultimate disposition of Axis trademarks in light of occupation of Germany by Allied forces. Bayer, Schering, and Merck Companies will soon be subject to nationalization and Argentina’s disposition of Axis trademarks should be immediately correlated with that carried out in the U.S. and other American Republics. Bayer marks are registered here under I.G. Farben name while Schering marks registered under local Schering Company.

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Embassy concurs with Dept.’s policy of complete elimination of Axis trademarks outlined in Dept.’s 26, Jan. 10, 1945.38 However Argentines are aware that our policy on Axis trademarks in U.S. is different from some of American Republics. Argentina will claim it is a manufacturing and distributing drug center and will no doubt desire its policy on Axis trademarks correlated with policy in other countries. Any of the following proposals, subject to Argentine approval could be applicable here: (1) The Allied Control Commission vest title in all German-owned trademarks that were not nationalized by local law prior to V–E Day; (2) that Argentine Govt, vest title in the right to local German-registered trademarks and cancel same; (3) that either Argentina or Allied Control Commission dedicate all Axis trademarks to public use; (4) that Argentina sell the rights to the trademarks to Argentine firms.

As proposals (2) and (3) were not followed in US, Argentina might object to them. Fourth proposal seems to Embassy least desirable, as purchasers might be cloaks for the former owners. The Embassy will defer advising Argentine authorities on matter pending receipt Dept.’s present views which are urgently needed.39

  1. Not printed.
  2. In telegram 1058, August 9, 7 p.m., the Department recommended that no reply be made pending further consideration of questions regarding German assets in Argentina.