File No. No. 763.72112/10101
The Ambassador in Brazil ( Morgan ) to the Secretary of State
[Received September 13, 4.58 p.m.]
Referring to condition mentioned in Embassy’s confidential telegram to Department, August 20, 4 p.m., at the urgent request of French Minister, Italian and British colleagues are willing, in the joint note to the Brazilian Government, after the words “less important German persons and firms,” to add the words “and firms now included in the enemy trading lists.” See British Minister’s telegram of today’s date to British Foreign Office.
This addition will probably jeopardize acceptance of the proposition by Brazilian Government which in return for liquidating principal German houses will expect that Brazilian concerns on enemy trading lists shall cease to be penalized for past offenses. Should prefer that confidential list should contain only those Brazilian concerns which have undoubted enemy connections, and all those should be removed which have been guilty of a few instances of enemy trading, often due to ignorance or carelessness. Old offenders should be forgiven but shall be watched for new offenses in which case they should be placed on confidential list.
Since present Administration will probably not act on joint note before it leaves office on November 15, would it not be better to withhold note until new administration comes in, meantime discussing the matter with Da Gama in his character as future Foreign Minister?