Foreign Relations of the United States, 1947, The American Republics, Volume VIII

740.00119 EW/2–1147

The Brazilian Ministry for Foreign Affairs to the American Embassy in Brazil ⁷⁸

[Translation]

DPC/DPO/48/949.4 (00)

The Ministry of Foreign Affairs presents its compliments to the Embassy of the United States of America and has the honor to communicate that, by note presented on January 22, 1947 to the Council of Foreign Ministers presently meeting in London, the Brazilian Government had occasion to formulate some opinions on the question of the independence of Austria and on the future statute for Germany.

2. In the case of Germany, in addition to considering in its note certain questions relative to reorganization of that country to exercise its role as a member of the international community, the Brazilian Government brought up the matter of reparations⁷⁹ which it thought it could rightfully demand from its ex-enemy; it recalled that notwithstanding its active belligerency, Brazil was not invited to participate in the Paris Conference of Separations and it ended by strongly urging the Council under reference to review Brazil’s claim and to examine the possibility of recognizing its right to a part of the enemy assets located in German territory and intended for the payment of reparations.

3. Addressing itself today to the Embassy of the United States of America on the subject, the Ministry of Foreign Affairs wishes to call its attention to the fact that the Paris Conference did not make up the chart of reparations to be claimed from Germany solely with data relative to losses and damages of the war. It is known that the countries, participants in the Conference, were invited also to compute in their account of reparations various other factors among which stands out that relative to the war effort expressed in costly expenditures of war, loss of human life and days of labor lost.

4. It is necessary to make clear that, at first, the Brazilian Government proceeded only with the calculation of losses and damages caused by the enemy to Brazil and to the Brazilians. Notwithstanding the modest amount of its claims, it soon became evident that, deprived of the means of reparation conceded to the other Allies and having to indemnify itself only with liquidated German property under its jurisdiction, Brazil would be able to indemnify itself for the losses suffered only in greatly reduced proportions.

5. Taking into consideration today the criterion adopted by the Paris Conference on the matter of reparations and reserving the right to claim in equity the application of the same treatment in its case—the Brazilian Government must review the amount of its losses. This act by itself is justifiable. It is well known that, from the early days, hostilities in Europe began badly and as a result of its various agreements with the Government of the United States of America Brazil mobilized itself to cooperate in the war effort of its sister of the North. The rubber campaign, the minerals campaign, the contribution of its merchant marine and the furnishing without limitation of primary materials of all types in favor of the Allied cause—all this caused a considerable dislocation of manual labor in the country with the consequent disequilibrium of its means of production and distribution, of daily aggravation caused by the constant drain on its transportation system and its industrial equipment, a situation that still continues.

6. But now, being compelled to compute in its calculations, as the Allies are doing, the costly expenditures of war, Brazil sees its reparations account growing in terms out of proportion to the recourses for indemnification that it has.

7. It is necessary to add—and the Brazilian Government made the observation in its note to the Council of Foreign Ministers—that with the dissolution and liquidation of the industrial and commercial enterprises of the Axis which operated in Brazilian territory and contributed thus to national prosperity, Brazil certainly fulfilled its duty as an ally, but was not indemnified for what it lost. In effect, if the State uses such liquidations as a means of covering the losses of its nationals, the Nation will bear a double loss because having received nothing from the outside, it is still depriving itself of future collaboration with such enterprises in the development of its economic life.

8. It is hoped that the question of reparations will be revised when reviewed in London in terms of conciliation with certain territorial readjustments claimed by neighboring countries of Germany. The ex-Secretary of State, Mr. James Byrnes, foresaw this in his speech of last September 6 delivered in Stuttgart.⁸⁰

9. If such should be the case, as everything indicates it will be, the proportional division made at Paris will have to suffer the necessary changes (deducçãos). The Inter-Allied Agency of Brussels will remain, then, with an expendable balance corresponding to territorial compensations that the Council of Foreign Ministers was asked to approve.

10. The Ministry of Foreign Affairs has the honor to submit the present considerations to the Embassy of the United States of America, requesting its courtesy in transmitting them to the Department of State, with anticipated assurance that the Brazilian Government will appreciate the support that the case merits at the hands of the Government of the United States of America, at the time when the question will be discussed at the meetings of the Council of the Four Great Powers.

11. The Ministry of Foreign Affairs extends its thanks to the Embassy of the United States of America for its courtesy in transmitting this note to its destination.

Rio de Janeiro, January 31, 1947.

78. Copy transmitted to the Department by the Ambassador in Brazil in his despatch 1669, February 11, 1947; received February 18.
79. For documentation on this subject, see vol. ii, pp. 391 ff.
80. Department of State Bulletin, September 15, 1946, p. 496.