811.20 Defense (M) Brazil/134: Telegram

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

1423. Your 1928, December 6 and 1897, December 3. Department and Metals Reserve approve all suggestions in your 1897, but an exhibit should be attached to the notes containing the maximum quantities and perhaps also the prices as set forth in Department’s 1141 of November 14 and 1260 of December 4.11

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A question has been raised concerning last paragraph in your 1928. Department and Metals Reserve agree that the form of commitment which you propose is too broad. In this connection Department refers to discussion in its 1260 of requirement that there be a definite maximum limit to any obligation of Metals Reserve. In this case Metals Reserve would prefer a simple option to acquire any available quantities of cobalt, tungsten or nickel in excess of the maximum figures. If Brazilian authorities will not accept this, will you then suggest a possible increase in the maximum figures for cobalt and tungsten sufficient to cover the anticipated excess production. Metals Reserve, however, does not wish to increase its commitment as to nickel.

Please telegraph any further suggestions.12

  1. Latter not printed.
  2. On January 12, 1942, the Embassy submitted drafts of a note, exhibit, and memorandum to the Department embodying the plan for purchasing cobalt, tungsten, and nickel. The Department agreed to this with two alterations on February 2. The approval of the Brazilian Government was reported by the Embassy on March 7, 1942.