811.20 Defense (M) Brazil/134: Telegram

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

1928. Department’s number 1260, December 4, noon.10 I have informed the Brazilian authorities of the decision to interpret agreement as including carbonados and requested them to prohibit exportation elsewhere giving them assurances that we were prepared to make purchases.

I am giving Aranha a strictly confidential memorandum on castor beans and castor oil inquiring whether his Government agrees in principle. I have included the statements in the Department’s telegram under reference and also requested that pending negotiations the registration of sales contracts be suspended for shipments to unapproved destinations. The Brazilian reaction to the proposal that direct shipments to the United Kingdom be permitted is unpredictable. It will be recalled that Brazil [made] protests to our basic agreement by stating that it was a quid pro quo arrangement and not unneutral.

The proposals on cobalt, tungsten and nickel ore appear satisfactory and I am prepared to negotiate this matter upon receipt of Department’s approval of the proposed note outlined in my 1897, December 3, 6 p.m.

In accordance with Department’s suggestion I plan to qualify the statements regarding quantitative limitations with the following: “Should it appear that Brazil’s exportable surplus exceeds the quantities under reference, the purchasing agencies of the United States Government will make every effort to acquire the additional amounts available.”

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