632.6231/284: Telegram
The Ambassador in Brazil (Caffery) to
the Secretary of State
Rio de
Janeiro, January
27, 1938—noon.
[Received 1:34 p.m.]
17. Department’s 8, January 18, 4 p.m., third sentence.64 Following further pertinent conversations
with the Brazilian authorities, Aranha65 handed me a
draft note addressed by the German Ambassador to the Minister for
Foreign Affairs embodying a new Brazilian-German compensation
arrangement which Aranha tells me his Government is prepared to accept.
Points 1 and 2 of this draft are identical with points 1 and 2 in the
Brazilian draft note to the German Chargé d’Affaires dated September
30th, transmitted to the Department with my despatch 108 of October 23,
1937.66 The balance
of the note follows:
- “3. For the importation into Germany of the following
specified Brazilian products against payment in verrechnungs marks there will be
conceded import licenses during the next 12 months up to the
quantities mentioned below as and when the possibilities of
compensation permit: 18,000 tons of tobacco leaf; 10,000
tons of frozen meat; 200,000 boxes of oranges; 4,000 tons of
bananas; 4,000 tons of Brazil nuts.
- 4. The Government of the Reich will give, in accordance
with the compensation possibilities, during the next 12
months, licenses for the importation of the following
Brazilian products: dried and salted hides, skins, wool, oil
bearing seeds, rubber, vegetable oils, woods, minerals and
other raw materials, cocoa, matte, honey, fruits, eggs and
other Brazilian products. The provision in this paragraph,
however, does not prejudice the obligation mentioned in the
third paragraph.
- 5. The distribution of import licenses for Brazilian
products by the competent authorities in Germany will be
made on an equitable basis.
- 6. The concession of import licenses for the importation
of Brazilian products into Germany or for the exportation of
German products destined to Brazil cannot depend on any
stipulation which excludes the vessels of one or the other
contracting party from the transportation of the products
referred to.
- 7. The Government of the Reich, in agreement with the
Brazilian Government that competition in the Brazilian
market for the placing of products of foreign origin should
be on an equitable basis, declares that no article of German
production destined for importation into Brazil shall be the
subject of subsidies of the Government of the Reich.
- 8. In case, within 1 year, counting from the present date,
the German-Brazilian commercial interchange develops in such
a manner that German exports to Brazil exceed Brazilian
exports to Germany, or vice versa, the Government of the
Reich will communicate with the Brazilian Government in
order to examine the question arising from the unilateral
increase of commercial interchange between the two countries
and the consequent difficulties in the liquidation of the
respective payments.
- 9. After 12 months of the present agreement have passed,
the same will continue in effect; however, it may at any
time be denounced by either of the two parties with previous
notice of 3 months.
- 10. If during the life of the present agreement, one of
the contracting parties modifies its system of importations
or of compensation which is in effect between the two
countries on the date of the signature of this agreement,
the two parties will open negotiations with the object of
adapting the above mentioned provisions to the new
situation. If the negotiations do not arrive at a
satisfactory conclusion within 15 days, each one of the
Governments reserve the right to denounce the present
agreement upon previous notice of 15 days.”
The Department’s comments are requested by telegraph.
