740.32112 RP/5–2545: Telegram

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

1651. Believe immediate drastic reduction Proclaimed List as proposed your 7152, May 15, would seriously prejudice possibility successful [Page 666] conclusion remaining replacement program in Brazil. Relaxation war-time controls here is now in full tide, and our eliminating vast majority names remaining on Proclaimed List would be taken by Brazilians as lack of real interest our part in replacement program, despite any statements to contrary, and would also render exceedingly difficult elimination undesirable personnel and other corrective measures in any spearhead firms thereafter nationalized. Notwithstanding Brazil’s past record as cooperating country, would consider it doubtful, in view virtual stalemate replacement program in recent months and present relaxation of controls, that reliance could be placed upon any assurances of Brazilian authorities as to completion nationalization program. Unless interested agencies Washington are prepared to proceed with program your 7152 with full realization foregoing considerations, feel it preferable tactically to defer reduction to hard core in order to retain leverage on situation and fortify representatives for completion of program, and that only deletions recommended in my 1280, May 9, and A–704, May 1210 should appear in June 8 supplement. British concur (see their 64 to MEW, repeated to Washington as 152).

Still believe desirable Wagner11 proceed Washington immediately to discuss fully existing situation in Brazil and possible alternative courses of procedure. If deletion program proposed your 7152 carried out, consultation after June 8 would seem of very little value.

Berle
  1. Neither printed.
  2. Frederick T. Wagner, Special Assistant at the Embassy in Brazil.