832.6176/38: Telegram

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

[Paraphrase]

82. Embassy and commercial attaché are working with Brazilian Secretary of Agriculture on subject of Department’s telegram No. 72 dated December 21 [19].

The answer to the first question is an emphatic “yes.”

The answer to the second question is also “yes,” but assurances must be secured from interested State Governments. The Governor of Para declares that Para will reduce its export duty to a level equal to the duties in force in the Middle East.

The answer to the third question is also “yes.” Since a combination of the character referred to would be wholly injurious to Brazilian interests, such a contingency is not likely to arise.

The increase of production to the figure mentioned for the year designated depends on the mobilization of capital to meet the cost of a largely increased labor supply to be imported from adjacent States.

Morgan