Foreign Relations of the United States Diplomatic Papers, 1940, The American Republics, Volume V

832.6511/121: Telegram

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

Rio de Janeiro, July 8, 1940—3 p.m.
[Received 4:26 p.m.]

339. Last paragraph of my 308, June 27, 4 p.m.³⁸ Krupp’s agents here have been working hard and with some success in army circles to persuade them to bring pressure on President Vargas to give Krupp the contract for the steel plant;³⁹ the agents emphasize that Krupp is offering extremely advantageous terms. President Vargas has given no indication that he will yield to their suggestions. The Steel Commission has tickets to sail on July 24 to New York.

There has been delay on the part of McKee⁴⁰ in delivering his report. He now promises to deliver it tomorrow and Guinle⁴¹ expects to see President Vargas about it on Friday.

Caffery

38. Not printed.
39. The interest of Krupp in this project had been reported by the Ambassador in Brazil in telegram No. 161, May 17, 1930, 4 p.m. (832.51/1463). See also Documents on German Foreign Policy, 1918–1945, series D, vol. x (Washington, Government Printing Office, 1957), pp. 177–178.
40. The Arthur J. McKee & Company of Cleveland, Ohio, who were making a study of the proposed steel plant.
41. Dr. Guilherme Guinle, Chairman of the Executive Committee of the Brazilian Metallurgic Project (Comissão Executiva do Piano Siderurgical Brasileiro).