Memorandum by the Chief of the Division of North and West Coast Affairs (Flack)61


The contents of telegram 33 of January 11, noon, from Caracas was discussed in conference with Mr. Braden62 and Ambassador Corrigan who is now here on consultation, and it was decided that no further [Page 1335] observations would be made to the Venezuelans, either informally or formally at this time. Dr. Corrigan will discuss this matter with Sr. Betancourt when he returns to Venezuela.

In talking this matter over with Mr. Loftus of PED,63 we agreed that perhaps it would not be well at this time to state specifically that the petroleum companies per se would probably be disposed to make only the necessary capital investments in Venezuela since this might partake of a threat or appear to isolate the opinion of the petroleum industry from the general adverse affect of the decree on all foreign capital in Venezuela.

  1. Addressed to ARA: Mr. Butler and Mr. Briggs.
  2. Spruille Braden, Assistant Secretary of State for American Republic Affairs.
  3. John A. Loftus, Chief of the Petroleum Division.