611.3231 Mixed Commission/5: Telegram

The Secretary of State to the Ambassador in Brazil (Caffery)

95. The Department now desires to move ahead as rapidly as possible toward the establishment of the mixed commissions in New York and Rio de Janeiro which were contemplated in the exchange of notes between this country and Brazil last July83 and which you have taken up in a preliminary way in your letter of December 684 to Mr. Feis.85 In the language of the Brazilian Ambassador’s86 note to the Department of July 14, these commissions are described as “two Brazilian-American mixed commissions composed of representatives of the commercial interests of the two countries, one in Rio de Janeiro, the other in New York, the purpose of which would be the continuous study of the means to increase mercantile transactions between Brazil and the United States, achieving within the mutual obligations assumed by the Government of the United States and by the Government of Brazil in the trade agreement of February 2, 1935,87 the most appropriate solutions to overcome the obstacles which might obstruct the natural development of trade between the two countries. These advisory commissions would from time to time inform the Brazilian and American authorities of their work.” In the joint public statement88 made by the Secretary of State and the Minister of Finance of Brazil,89 it was further stated that the two joint committees would have independent standing and would be guided entirely by the wish to foster trade between the two countries.

From the foregoing it will be clear that these commissions are in no sense authoritative bodies for policing the trade agreement but that they establish an organization representative of commercial interests with the specific purpose of observing trade relations between the two countries, particularly as they are affected by the competition of subsidized and compensation trade, and through these channels, of bringing to the attention of the two Governments facts and suggestions.

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Particularly at this end, it will be necessary to avoid confusion as to the relations between the New York Commission and the Committee for Reciprocity Information, which is the interdepartmental body charged with receiving the views of interested parties upon trade agreements both before and after such agreements are concluded.

The Department has given some thought to the size of these commissions and is inclined to suggest that the commercial interests of each country should be represented on each commission by two private persons, one of whom will be an alternate.

You are requested to inquire of the Foreign Minister whether the Brazilian Government is in agreement with the foregoing as to the functions and size of the commissions, and if so, whether it would be agreeable to the Brazilian Government to exchange with this Government by January 15 the names of the persons who will serve on these commissions.

The Foreign Trade Council has suggested for the American representatives on the Rio committee, Stephen P. Danforth90 of Rio de Janeiro and C. Richard Varty, Manager, National City Bank of New York, of São Paulo. Since both your recommendation and that of the Council coincide with respect to Danforth, the Department will probably be disposed to suggest him for the principal American representative. Please cable any comments which you may have with respect to Varty as alternate member as compared with Ralph H. Greenwood,91 mentioned in your letter of December 6.

The Foreign Trade Council has recommended for membership in the New York committee E. P. Thomas, President of the Council, and Heman Greenwood of the United States Steel Products Company. If there is any possibility of adverse reaction in Brazil to either of these two men, please cable your comments. The Department may consult other organizations in the United States and will keep you informed of any other nominations which it may consider. Is there any family connection between the two Greenwoods mentioned?

Hull
  1. This evidently refers to a note from the Brazilian Ambassador to the Secretary of State of July 14, 1937, and the latter’s reply of July 31, 1937, Foreign Relations, 1937, vol. v, pp. 334 and 335, respectively.
  2. Not printed.
  3. Herbert Feis, Adviser on International Economic Affairs.
  4. Oswaldo Aranha.
  5. Department of State Executive Agreement Series No. 82, or 49 Stat. 3808; see also Foreign Relations, 1935, vol. iv, pp. 300 ff.
  6. Of July 15, 1937, ibid., 1937, vol. v, p. 316, or Department of State, Press Releases, July 17, 1937, p. 39.
  7. Arthur de Souza Costa.
  8. Manager of local firm, “Casa Pratt,” selling office supplies, business machines, etc.
  9. Local manager of the General Electric Company and a former officer of the American Chamber of Commerce.