811.20 (D) Regulations/1326: Telegram

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

253. Department’s no. 149, March 28, 6:00 p.m., and your no. 242, April 1, 4:00 p.m., and no. 344, April 23, 11 a.m.5 The Department has, since dispatching its above-mentioned telegram, discussed the question of general licenses with the representatives of a number of other American republics. As a result of these discussions the Department has determined that it would be justified in issuing a general license for the export of a given commodity to a given country only if that country will totally prohibit the export of the commodity, whether imported from the United States or elsewhere or domestically produced, except to the United States and other American republics having similar export control systems. Otherwise it is clear that the commodity might be imported from the United States in such [Page 154] quantities as to release for export to unsatisfactory destinations other quantities of the same commodity produced domestically or imported from elsewhere.

In view, however, of the fact that this modification of the Department’s policy had not occurred when the question was taken up with the Brazilian Government last month and that that Government has corrected its export control law in the sense which the Department requested at that time, the Department does not wish further to delay the issuance of general licenses to Brazil and is recommending to the appropriate American authorities that such licenses be authorized as soon as possible. Since, however, all the other American Republics are being asked to prohibit the export of the commodities for which general licenses are issued in the United States, the Department feels it necessary to make the same request of the Brazilian Government and will proceed with the issuance of general licenses in the expectation that Brazil will promptly prohibit the export, except to the destinations indicated in the preceding paragraph, of those commodities for which such licenses are issued.

In bringing this matter to the attention of the Brazilian authorities, please emphasize that general licenses cannot in any case be issued for the export of certain commodities of which the United States has only a meagre exportable surplus or no surplus whatsoever.

  1. None printed.