832.24/368: Telegram

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

294. Reference is made to your no. 460 of May 13. The Department authorizes the signature of the notes in the form set forth in your no. 460 with the following understandings:

There should be added to paragraph 2 of the note quoted in your telegram the following: “provided that such shipments shall be consistent with the carrying out of the defense program of the United States and its policy of assisting governments and peoples engaged in resisting aggression.” The Department will not insist on having this clause in the note if your supplemental letter will cover this point satisfactorily.
It is suggested that either your supplemental letter or the notes themselves include a clause which will provide for the addition from time to time of materials other than those listed in Exhibit A when agreed to by the Brazilian Government and the Federal Loan Agency.
It is understood that Exhibit A will include all of the commodities listed in the Department’s 263 of May l.1
The Federal Loan Agency will maintain a permanent representative in Brazil to supervise the execution of the agreements contained in the notes. This intention need not be expressed in the notes but should be communicated to the Brazilian Government.
The Federal Loan Agency will come into the market promptly if a serious drop in prices appears likely. It is understood that this will not appear in the exchange of notes.
It is suggested that the notes as finally executed and delivered be somewhat paraphrased from the form set forth in your no. 460.

  1. Not printed.