File No. 611.326/11a
The Secretary of State to the Ambassador in Brazil ( Morgan)
With the object of diverting as much tonnage as possible immediately to the North Atlantic for the purpose of carrying troops and munitions of war to France, the Shipping Board has put in force, effective April 15, an import embargo on the articles already telegraphed you, Department’s telegraphic circular March 21,2 and proposes at an early date to embargo and restrict import of other articles which this country can go without. In the list telegraphed you the only article of serious importance to Brazil is Brazil nuts. [Page 684] The Brazilian Ambassador has pointed out to the Department the serious consequences of an embargo on Brazil nuts on the economic, labor and probably the local political situation in Amazonas.
The Shipping Board offers as a compensating arrangement to take the oil from the Brazil nuts which would employ about one-half the tonnage used for the nuts, and for this purpose Shipping Board suggests that a crushing and extracting plant be installed in Brazil.
The major articles affected by embargoes now effective or proposed are: Brazil nuts, tobacco leaf, meat products, bees wax, art works, brass and woods (not cedar or mahogany).
While it is not intended to embargo any of the principal articles of Brazil’s exports to the United States, it is expected that the imports of these will be limited to the amounts necessary to meet essential needs in order that shipping space may not be devoted to carrying unnecessary amounts of those commodities. It is proposed fey the Shipping Board that imports of coffee be restricted to 376,000 bags per month, saving 65,400 tons shipping or if put into North Atlantic trade equivalent to 100,000 tons. Cocoa will probably be restricted somewhat, exact restrictions not yet determined, possibly 50 per cent. Manganese ore probably will be reduced to two-thirds amount imported last year.
To offset reduction in value imports manganese and cocoa, proposed importation of chromite ore which was not imported by United States from Brazil in 1917. Similarly proposed increase imports rubber from Brazil at least to 30,000 tons, or 20 per cent over last year. This increase in importation of chromite and rubber means an addition of $6,500,000 in imports over last year.
To-day the winning of the war depends absolutely upon the supply of ships. In this tremendous battle for the freedom of mankind we cannot be justified in using ships for any purpose not directly helpful in winning the war. While thus limiting imports from our close friends, like Brazil, we propose to withdraw American ships and neutral ships chartered to us and put them in the danger zone, and will look to Brazil, if she can, to carry the South American trade. If, with the help of the ex-German boats, Brazil can carry the imports which we must have and still have tonnage to spare, we hope that Brazil will offer as part of her war contribution all surplus ships for the great cause and thereby assist us in rushing America’s blood and money across the Atlantic to check the menace to the peace of the world.
These facts, figures and arguments have been presented to Brazilian Ambassador but are sent to you for your information and use if you find them necessary.
- Not printed.↩