Foreign Relations of the United States: Diplomatic Papers, 1942, The American Republics, Volume V

800.85/725b: Telegram

The Secretary of State to the Ambassador in Brazil (Caffery)

Washington, July 31, 1942—1 p.m.

2096. As the Embassy is no doubt aware, the vessel Esmeralda²² is presently immobilized in the port of Pernambuco. This was the former Roumanian vessel Oltul, the name of which is contained in the list of immobilized vessels which was a part of the plan agreed to by the Inter-American Economic and Financial Advisory Committee on August 28, 1941.²³ In addition to the Esmeralda, the Tropicus, presently in the United States, and the Omega, now in Lisbon, are owned by the same person. The United States is requisitioning the Tropicus and is asking Panamá to requisition the Omega. You are instructed to bring the question of the vessel Esmeralda to the attention of the Minister of Foreign Affairs, to inform him of the action which this Government has taken with reference to the other vessels mentioned, and suggest that it would be advisable in the interests of all concerned for the Government of Brazil to take over the Esmeralda as an immobilized vessel under the plan referred to above.

The three vessels referred to above belong to one Vlasov, formerly a Roumanian citizen and now an Argentine. For somewhat over a year now, this Government and the British Government have been negotiating with Vlasov and the Argentine Government with a view to placing these ships in service. It appears that the British began negotiations with the agents of Vlasov in the spring of 1941 for the use of the three ships. An informal agreement was arrived at and Vlasov was permitted to transfer his vessels from Roumanian to Panamanian registry. Thereafter Vlasov acquired Argentine citizenship and registered the Tropicus and Esmeralda in Argentina. On February 2, 1942 an arrangement was worked out whereby the British would charter the Omega and Moore-McCormack’s Argentine subsidiary would charter the other two vessels. This arrangement was satisfactory to the British, to this Government, to the Argentine Embassy here, and apparently to the owner of the vessels. The Argentine Government, however, refused to allow the agreement to be carried out.

As you know, Vlasov is on the Proclaimed List and the Statutory List. Information this Department has received from Lisbon indicates strongly that Vlasov’s representative there is working for the Axis.

It should be pointed out also that the Department has been informed that the British will consider the three ships mentioned as having reverted to their former status as enemy ships unless the agreement referred to is carried out. This Government will take no steps to alter this position. Corbett has full information.

Hull

22. See telegram No. 1563, October 17, to the Ambassador in Argentina, p. 417.
23. For correspondence concerning the resolution and plan of this committee, see Foreign Relations, 1941, vol. vi, section entitled “Resolution and plan of the Inter-American Financial and Economic Committee …”