740.32112 RP/5–2545: Telegram

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

1339. Agreement with Brit enclosed in our 7152, May 15 contemplates reduction to hard core in all countries in about 4 months, including Europe. Reduction of Brazilian list to hard core would have to be made then at very latest.

Within scope of this agreement it will be possible to delay reduction to hard core in Brazil for approximately 4 months which will place Brazil in same category as Argentina. It will also be possible to reduce to hard core in Brazil some time between June supplement and expiration 4 months period. Not more than two reductions can be taken to reach hard core however.

Failure reduce to a hard core in Brazil in June supplement would raise question whether Brazilian FonOff will resent preferred treatment given other Republics, particularly since Dept proposes to issue [Page 667] public statement that List is being reduced in cooperative countries which have instituted adequate controls and eliminated spearheads. It is possible but not yet certain that reductions to hard core will be made in Chile and Mexico forthcoming supplement. Please report whether discussions with FonOff referred to in 7152 have taken place.

Names to be deleted must be approved in Washington and forwarded to London not later than June 2 even if next supplement appears on 16th instead of 8th of June as is now being contemplated.

Dept appreciates importance of considerations mentioned in your 1651, May 25, but was unable to obtain agreement extending life of List beyond that described in agreement with Brit. The Rio, Washington and Mexican Resolutions12 concerning replacement are still operative and Brazilians could be informed that reduction is made in accordance with policy announced in Sep 1944 and does not imply a lack of interest in nationalization program. Furthermore, a substantial list of hard core offenders will remain for all countries.

Separate telegram will go forward Mon concerning consultation with Wagner.13

  1. For text of conclusions of the Rio de Janeiro Conference, see “Final Act of the Third Meeting of Ministers of Foreign Affairs of the American Republics, held at Rio de Janeiro, January 15–28, 1942,” printed in Department of State Bulletin, February 7, 1942, pp. 118–140; for text of Washington Resolutions, see Pan American Union, Congress and Conference Series No. 39: Final Act of the Inter-American Conference on Systems of Economic and Financial Control, Washington, D.C., June 30–July 10, 1942 (Washington, 1942), pp. 7–158; for text of Mexico City Resolutions, see Pan American Union, Final Act of the Inter-American Conference on Problems of War and Peace, Mexico City, February–March, 1945 (Washington, 1945), pp. 35–108.
  2. Telegram 1352, May 28, 8 p.m., not printed.