File No. No. 763.72112/5353
The Secretary of State to the Ambassador in Brazil ( Morgan)
French Ambassador has informed the Department that he has received instructions from his Government to bring to the attention of United States a report that there is an active movement to send German capital to Spain from South America and particularly from Brazil. This transfer of funds is being made by intermediaries at Rio de Janeiro and at Madrid either through Allied, American, [Page 342] Brazilian, or neutral banks. The National City Bank of New York is mentioned.
You are instructed to bring this matter to the attention of the Brazilian Government and express the hope that it will take steps to have Brazilian banks discontinue this practice … You may state that this Government is bringing matter to attention of American banks in order that such transactions may be discontinued by them.
Department desires you to take this matter up with the manager of the branch of the National City Bank.
Department informed French Minister has instructions to make representations to Brazilian Government along these lines; you may take similar but not identic action.