740.32112 RP/10–545: Airgram
The Secretary of State to the Ambassador in Brazil ( Berle )
A–1028. Reference your despatch no. 3053 of October 5, 1945.
The IDPL25 discussed the proposal made by the Minister of Finance regarding PL firms possessing technical personnel which, if dismissed as a condition to the deletion of the firms now employing such personnel, would in all probability provide a nucleus for the formation of new and perhaps equally undesirable firms.
The Committee felt that the proposal of the Minister of Finance might be a satisfactory solution of this type of case since such a plan would eliminate the majority German interest in the firms and would provide some control over the elements in Brazil concerning which there is some question. The Committee was obviously not in a position to commit itself with respect to any particular case of this kind [Page 676] without having further details, such as the extent of the ownership of the undesirable local persons, the importance of the positions which they hold in the firm, the seriousness of our suspicion concerning them, whether they are now or have ever been on the Proclaimed List, the disposition of the shares formerly owned from Germany, etc. You are authorized, however, to inform the Brazilian authorities that the Committee is receptive to the general plan and is prepared to consider proposed reorganizations of any individual cases on this basis. You may also inform the Brazilian authorities that the Committee can of course not commit itself on any given case before reviewing the proposed conditions of the reorganization. In this connection, the Embassy’s despatch no. 3169 of October 16, 194526 regarding Corneta Ltda., has been received by the Department and will be considered by the Committee within the next few days.
The foregoing decision is being referred to the British Economic Warfare Department at London by the British representative on the Committee.