740.32112A/11–546: Airgram
The Acting Secretary of State to the Chargé in Brazil (Daniels)
A–841. Reference is made to your airgram no. 807 of August 5, 1946, and airgram no. 1161 of November 5, 1946,67 requesting an indication of the Department’s position with regard to undertakings.68
After repeated attempts on the part of the Department to obtain the comments of the British Embassy here on the report that the British Embassy in Rio had received instructions that all undertakings were terminated, the British Embassy has now informed the Department that it has received no instructions on this subject. An Embassy official stated, however, that the instructions which the British Embassy in Rio has received would appear to be in line with what he believed to be London’s viewpoint in this matter. It is assumed that no general instructions were circulated by the British, since their Embassy here has received none.
The Department feels that any wholesale release of firms from undertakings might create the impression that the United States is no longer interested in the activities of such firms. The Embassy should, [Page 464] therefore, make no public statement with regard to undertakings and should not take the initiative in releasing firms.
The Embassy should, however, release individual firms or persons from standard undertakings when such release is requested by the signatory firm or person, unless a review of the case reveals any circumstances which would make it desirable to retain the undertaking in effect for the period specified therein. The Embassy may also, in its discretion and upon request by the signatory, release firms or persons from undertakings containing special clauses, but careful consideration should be given to the special provisions and to the effects of release therefrom. When a person or firm requests to be released from an undertaking which the Embassy believes should remain in force, the case should be referred to the Department.
Cases of firms which are known to have signed undertakings in several countries, such as the Bata firms, should also be referred to the Department, so that they may be handled on an overall basis.