632.6231/163: Telegram

The Chargé in Brazil ( Scotten ) to the Secretary of State

56. As a result of conversations between Boucas19 and myself this morning and between the Commercial Attaché20 and the Chief of the Commercial Section of the Foreign Office21 during the weekend, I am very pessimistic as to any action being taken by Brazil along the lines suggested in the aide-mémoire. From these conversations it appears that the tremendous pressure which has been brought to bear upon the Minister of Finance and the members of the committee set up to study this question, both from German sources and from Brazilian importers and exporters themselves has had its effect. Boucas stated that the Minister of Finance with whom he has just talked is extremely unfavorable to the aide-mémoire and that he will have the deciding voice in this question no matter what the attitude of the Foreign Office may be. Furthermore, in Boucas’ opinion the committee, with the exception of the Foreign Office member, is opposed to our views. The Chief of the Commercial Section of the Foreign Office seemed entirely disposed to attempt to evolve a plan which would meet our views but frankly stated that as yet none had occurred to him which he felt he could induce the opposition to accept nor did he think the suggestions in the aide-mémoire practicable.

At the request of the Minister of Finance the American Chamber of Commerce is preparing a memorandum which will embody the views of American businessmen.

Our views set forth in the aide-mémoire are so clearly expressed that it is difficult for me to make any constructive suggestion to the Department with a view to overcoming the apparent opposition which exists here excepting perhaps a direct appeal to the President.

Scotten
  1. Valentim F. Bouças, member of the Brazilian Federal Foreign Trade Council and Special Technical Adviser to the Minister of Finance.
  2. Ralph H. Ackerman.
  3. J. A. Barbosa Carneiro.