561.321D1 Advisory Committee/70: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received October 2—3:30 a.m.]
1416. Embassy’s telegram No. 1359, September 26, noon. The Embassy has this afternoon received a note from the Ministry of Foreign Affairs dated September 29 stating that the Brazilian Government agrees in principle with the proposal of the United States [Page 141] Government submitted September 17 that the Brazilian Government send to Washington a representative to study jointly the bases of an agreement for the equitable distribution in the Canadian market of Brazilian and American cotton. The note states also that José Garibaldi Dantas has been selected to represent the Brazilian Government for the above purpose and that he will proceed to Washington by plane where he should arrive about the middle of October.
As anticipated in the Embassy’s telegram No. 1359 of September 26 the Ministry of Foreign Affairs requests at the same time that until the agreement is reached the export subsidy program which it understood would be put into effect on October 1 be withheld. The Embassy believes that the Ministry of Foreign Affairs transmitted a similar request to the Brazilian Embassy in Washington on or about September 25 after the Embassy informed the Ministry that the export payment program had been approved and would be announced but not later than October 1st.
It is believed not unlikely that if the export payment program which the Embassy understands was put into effect on September 29 were suspended the Brazilian Government would take advantage of the occasion to raise its minimum export prices on cotton. (See the Embassy’s telegram No. 601, June 6, 9 p.m.)21
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