832.6176/43: Telegram

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

6. Embassy’s telegram 4, January 20, 1 p.m. [3, January 18, 3 p.m.] Brazilian Minister of Agriculture has communicated the Portuguese text of telegrams from Governors of Para and Amazonas stating that the Governor of Para will welcome any reputable economic organization which may come to the State for agriculture purposes especially for planting rubber. Exportation taxes in Para have already been reduced to minimum and the fixed purpose of the Government is not to increase them. The Federal Government has alone authority to enter into an agreement with foreign countries to restrict production and the State authorities have nothing to do therewith.

The Governor of Amazonas who has recently taken office states that not only will his Government guarantee no increase in the present export tax on rubber but that this tax will be reduced in accordance with the increase in production. When the State Legislature next meets the Governor undertakes that the necessary laws in the above sense shall be enacted.