611.3231/1003

Memorandum by the Chief of the Division of Latin American Affairs (Wilson)

When Mr. Freitas Valle, Counselor-Minister of the Brazilian Embassy called this morning to discuss with Dr. Feis12 and me the exchange problem in Brazil, I took occasion of his visit to express to him the Secretary’s serious concern over a cable just received from Cabot to the effect that Sampaio had stated that there would probably be further delay in ratification of the trade agreement. I said that this continued delay was of course playing into the hands of people in this country who, as the Brazilian Government knew, were attacking our trade program and urging us to demand concessions of Brazil on the basis of the preponderance of trade between the two countries in Brazil’s favor. I said that a dangerous situation in this country might very well develop from further delay in ratification of the trade agreement, and that there might be an inevitable change of policy up here which would have an unfortunate effect on our trade relations between the two countries.

Mr. Freitas Valle said that he had had no word for some time regarding the situation of the trade agreement in the Brazilian Congress, but that he would cable at once regarding the Secretary’s concern and would ask for information.

Edwin C. Wilson
  1. Herbert Feis, Economic Adviser of the Department of State.