550.S1 Wash./579

Memorandum by Mr. W. R. Manning of the Division of Latin American Affairs

Yesterday at 10 a.m. there occurred in the conference room of the Secretary of State the conversation previously arranged with the special Brazilian delegation sent to discuss with representatives of this Government the measures that are to come before the Monetary and Economic Conference at London. The following representatives of Brazil were present: Dr. Joaquim Francisco de Assis Brasil, Chairman of the delegation; Dr. Joaquim Eulalio do Nascimento Silva, delegate; Dr. Numa de Oliveira, delegate; Dr. Heitor Freire de Carvalho, delegate; Dr. José Nabuco, Legal Adviser; Dr. Valentim F. Bouças, Technical Adviser; and Dr. Acyr do Nascimento Paes, Secretary. (Dr. Oscar Weinschenck, delegate, and Sr. Augusto Amaral, Technical Assistant, had not yet arrived.) Representing this Department were the Secretary of State, present for five or ten minutes at the beginning; Mr. Bullitt, Assistant to the Secretary; Dr. Feis, Economic Adviser, Mr. Sussdorff, of EA;31a Mr. E. C. Wilson, Chief of the Latin American Division, and Messrs. Merrill and Manning of that Division. Mr. Tugwell of the Department of Agriculture and Senator Pittman, of Nevada, were also present. After the brief preliminary statement by the Secretary of State, Dr. Feis, the Economic Adviser, explained (after giving opportunity to the Brazilian delegates to make any preliminary statement they might desire, and after Dr. Assis Brasil, the Chairman, had said they preferred, at least at first, to listen rather than speak), as had been done, he stated, in previous similar conversations, the matters which it is anticipated will be considered at the London Conference, emphasizing especially those bearing upon monetary and other financial considerations.

Allusion having been made to the persistent report that the Congress of the United States has been urged to consider placing an import duty or possibly some internal tax on coffee, which it is the desire of this Department to obviate if possible, and reference being made to persistent reports that American interests in Brazil are not [Page 46] receiving entirely equitable treatment in the distribution of exchange to transfer credits from that country to this, Dr. Feis observed that if the Brazilian delegation could give to the Secretary of State a brief written assurance that completely fair and equitable treatment would be accorded by Brazil to all American interests concerned in Brazilian trade and commerce as regards the service of loans and the distribution of foreign exchange cover under the exchange control, the Secretary might thereby be enabled to use his good offices more effectively, in his efforts, should the occasion for their exertion arise, to obviate the possible levy of a tax on coffee. Responding to this suggestion on behalf of the delegation, Dr. Eulalio spoke for ten or fifteen minutes, exhibiting no little emotion in emphasizing the undesirable effects which he believed the levy of a tax on coffee would have on trade relations with Brazil and on the attitude of Brazil and other Latin American coffee producing countries toward this Government. Arrangements were made for the delegation to return at 3 p.m. on the same day to give further consideration to the matters just mentioned.

W. R. Manning
  1. Office of the Economic Adviser.