811.20 Defense (M) Brazil/220: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received February 3—12:30 a.m.]
327. For the Under Secretary. Department’s 242, January 31. I have discussed these projects with Aranha91 who expressed real interest. He and Souza-Costa told Pierson on Sunday that the Brazilian Government would cooperate.
We have all agreed that Costa will discuss details familiarizing Pierson (who is accompanying him to the United States) and other officials of our Government in Washington this week.
The plan of action as agreed upon in principle provides (1) Brazilian Government to acquire Victoria E. A. Railway; (2) our Government to arrange for priorities and finance purchase of railway equipment; (3) dollar loan to be amortized by shipment of ore [apparent omission] freight rebates; (4) Brazilian Government to finance milreis expenditures; (5) American engineers to cooperate in reconstruction and administration of railway; (6) Itabira mines to be operated by a company composed of Brazilians, Americans, British.
We need Costa’s cooperation to settle the railway problem and his assistance will depend upon the success of his mission to the United States especially in connection with the procurement of armaments and Lend-Lease assistance.92
Pierson also reached an understanding with the British Embassy here which he will explain upon arrival.
- Oswaldo Aranha, Brazilian Minister for Foreign Affairs.↩
- Under the Lend-Lease Act of March 11, 1941; 55 Stat. 31. For correspondence on the negotiation of the Lend-Lease Agreement between the United States and Brazil, signed October 1, 1941, see Foreign Relations, 1941, vol. vi; for text of further agreement, signed March 3, 1942, see post, p. 815.↩