File No. No. 763.72113/757A
Memorandum Presented October 23, 1918, by the Representatives of Great Britain, France, Italy, and the United States1 to the Brazilian Chargé ( De Ipanema Moreira)
With reference to the desire which the Government of Brazil has expressed to the effect that she wished to cooperate more closely with the Allied Powers and the United States of America in the prosecution of the war against the Central Powers, and with further reference to the proposal which was made to that Government by the Governments of Great Britain, Italy, France and the United States, in order to meet Brazil’s above-mentioned desires, namely: that a conference would be called in Washington of their representatives to discuss with the Brazilian Ambassador the adoption of a plan so that Brazil might utilize her resources in the most effective manner in the prosecution of the war, it is now desired to inform the Government of Brazil that conferences have been held with the above-mentioned purposes in view and that the following is the consensus of opinion of the Governments of Great Britain, Italy, France and the United States:
- 1.
- That the above-mentioned Governments pending further consideration of the financial assistance which they may be able to afford Brazil either by direct loans, or by advances in respect of possible purchases of Brazilian commodities consider it desirable to impress upon the Government of Brazil the importance of taking immediate steps for the liquidation of enemy banks and other enemy concerns in Brazil.
- 2.
- For this reason it is the opinion of the Governments of Great Britain, France, Italy and the United States that the Brazilian Government should at once announce publicly its position with regard to the three German banks and all other import in Brazil, and should give formal assurances that these enemy interests shall be promptly and effectively liquidated, in which case the Allied Governments and that of the United States are prepared to associate themselves with Brazil in the taking over of these enemy interest and for their replacement by Brazilian and Allied organizations which will continue to afford the same support to the economic life of Brazil as that hitherto furnished by such enemy institutions. Furthermore, the Allied Governments and the Government of the United States will be prepared to give formal assurance to the Government of Brazil that at such a time as it shall be able to complete the liquidation of the above-mentioned enemy interests, or their taking over, they will be prepared to withdraw published enemy trading lists for Brazil, it being understood that [Page 354] as a war measure it is to the interest of the Governments concerned that during the period of liquidation and taking over the trading lists should continue to remain in force as a notice to the public.
- 3.
- The Associated Governments feel that they may properly ask Brazil to take such action without delay as part of the policy which Brazil might be expected to pursue as an Allied co-belligerent. They feel furthermore that unless such action is effectively taken there is no assurance that such assistance as may be afforded by them by the purchase of commodities or otherwise will not indirectly benefit the enemy interests. As soon, therefore, as the Government of Brazil has definitely assured the Allied Governments and publicly announced such policy and procedure with regard to the liquidation of enemy interests in Brazil, and the taking over of the three German banks as hereinbefore outlined, the Allied Governments are prepared to submit to the Brazilian Government further proposals.
- A note attached to the memorandum of Nov. 2, post, p. 355, shows that these representatives were the following: representatives of the United States—L. S. Rowe, of the Treasury Department, Paul Fuller, Jr., of the War Trade Board, J. H. Stabler, of the Department of State; representative of Great Britain—Sir Richard Crawford; representative of France—Major Grimprel; representative of Italy—G. B. Ceccato.↩