561.321D1 Advisory Committee/66: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 1:02 p.m.]
1359. Department’s 856, September 24 [25], midnight. The Ministry of Foreign Affairs has been informed. It has decided to send Dantas to Washington at the earliest possible date. He expects to arrive there not later than October 15 and earlier if plane reservations can be obtained. Presidential approval for his trip has not yet been obtained but is regarded as merely a formality.
The Brazilian authorities have evidenced concern with respect to the possible effects of the program. They may ask that, in view of their willingness to discuss division of the Canadian market, the part of the program referred to in Department’s telegram No. 856 of September 24 be deferred pending discussions with Dantas in Washington. The Embassy assumes from the Department’s telegram No. 804, September 15, 11 p.m., and the obvious possibility of hurried Brazilian sales to Canada if this part of the program becomes known to the trade, that such a request would be fruitless, and has so told the Brazilian authorities informally.
Dr. Dantas, who is now in Rio de Janeiro conferring with the Ministry of Foreign Affairs concerning the program, doubts whether it will have much immediate effect on Brazilian cotton sales to Canada as Canadian mills are understood to have heavy stocks of raw cotton and he believes no important sales of Brazilian cotton are currently being made to them although some appreciable quantities remain to be shipped from past sales.
The Brazilian authorities are exceedingly hopeful that as a result of Dantas’ trip a fair arrangement with respect to the Canadian market and possibly with respect to other markets can be worked out. They have taken steps to prevent unfavorable press comment which might arise from the program.
Inform Agriculture.