811.20 Defense (M) Brazil/516: Telegram
The Secretary of State to the Ambassador in Brazil (Caffery)
1164. Your 1442 of April 2849 and 1486 of May 1. For Donnelly and Allen. All here concur in feeling that you have obtained excellent results in your negotiations with respect to internal consumption and manufactured products.
The agreement outlined in your 1486 of May 1 is in general satisfactory.
Under points 2 and 3 it is understood that Rubber Reserve purchases the exportable surplus of tires and tubes and then uses them in supplying essential Latin American requirements.
The wording of point 5 is not clear as it refers to the advisability that the United States give earliest possible assurance to “these countries” with respect to the supply of essential requirements. It is assumed that you refer to other Latin American essential requirements for miscellaneous rubber goods. In the agreement with Peru, this Government agreed to collaborate with Peru with the view of assuring [Page 702] to Peru an equitable distribution of supplies of rubber products available to United States and Peru on the basis of relative needs and of the present emergency. It is probable that similar assurances will be given to the other countries which have broken with the Axis.
Following is estimated use of miscellaneous rubber products in long tons of crude rubber content during 1940: Argentina 145; Bolivia 30; Chile 195; Colombia 126; Ecuador 21; Panama 36; Paraguay 3; Peru 58; Uruguay 29; Venezuela 147.
Following is estimate of 1942 requirements for essential needs of miscellaneous rubber products in long tons of crude rubber content: Argentina 50; Bolivia 38; Chile 158; Colombia 76; Ecuador 6; Panama 12; Paraguay 6; Peru 59; Uruguay 27; Venezuela 82. No breakdown of products is available at present time.
The estimate of Argentina’s requirements is recognized as low, but it is felt that with strict limitation in Argentina there is sufficient rubber in stock to care for requirements for rest of year, except for a small allocation to cover special types of products.
These figures represent only present intention here and it should not be implied that this country is to be bound to supply such amounts to these other countries.
The answer to the question under point 7 depends on the product for which the reclaim is to be used. Goodyear and Firestone have been asked to furnish additional information on this question and it will be transmitted on receipt.
With respect to points 9 and 10, the United States will agree to do everything possible to facilitate these shipments so far as consistent with the relative emergency needs of the two countries.
- Not printed.↩