611.3231/580: Telegram

The Ambassador in Brazil (Gibson) to the Acting Secretary of State

3. Department’s 2, January 3, 1 p.m. Foreign Office states that in spite of Cabinet and other difficulties an effort is being made to deal with questions submitted by Department, that by today’s air mail provisional instructions are being sent to Washington Embassy outlining Brazilian point of view. These will be supplemented and superseded by a definite counterproposal as soon as inter-departmental conferences can be carried out and approved by Ministers still to be appointed.

Brazilian view outlined in instructions as follows:

Brazil prepared to readjust its customs and port formalities as suggested by us;
Cannot reduce customs charges to extent suggested as this would (a) deprive it of important revenues and (b) provoke resentment on the part of Brazilian industry;
Prepared to stabilize certain existing duties more or less in accordance with our suggestions.

Government obviously desires to maintain unimpaired its bargaining position with respect to other countries, notably France.

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We have fully impressed on the Foreign Office desirability of making secure through treaty agreement continued free entry of Brazil’s major exports into American market, and are assured that the importance of this is fully grasped by those handling the matter.