Foreign Relations of the United States: Diplomatic Papers, 1942, The American Republics, Volume V

811.20 Defense (M) Brazil/471: Telegram

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

Rio de Janeiro, April 16, 1942—8 p.m.
[Received April 17—1:16 a.m.]

1298. For Clayton³ and Finletter.⁴ I have been told that President Vargas told Souza Costa yesterday that he approved of the negotiations to date relating to the rubber program⁵ and Itabira and Victoria Minas projects. He also authorized Souza Costa to:

(1) Take possession in the name of the Federal Government of the Victoria Minas Railway, and the Itabira Mines.

(2) Organize immediately two corporations, one for the railway and another for the mines, similar to the corporate setup of the national steel plant.

(3) Reach an immediate agreement with the present operators of the railway and mines so as not to further prejudice their interests.

[The remainder of this telegram, here omitted, is concerned with the rubber program.]

Caffery

3. W. L. Clayton, Special Assistant to the Secretary of Commerce.
4. Thomas K. Finletter, Acting Chief, Division of Defense Materials, Department of State.
5. For correspondence concerning the rubber procurement and rubber conservation program, see pp. 691 ff.