811.20 Defense (M) Brazil/1045: Telegram
The Chargé in Brazil (Simmons) to the Secretary of State
[Received 10:05 p.m.]
3069. For Cooke, Rubber Reserve, from McAshan. Refer today’s telephone conversation. As result of numerous conferences Brazilian authorities, Souza Costa’s Commission proposes to confirm in writing their full agreement to the terms and methods set out in our letter to them of August 10 (copy airmailed you August 1073), provided that we agree to an exchange of notes between Brazilian Foreign Office and American Embassy, Rio, setting out following conditions:
- (1)
- Rubber Reserve will indicate monthly to the Commission for the Control of the Washington Agreements74 the quantities of tires available that may be exported to the American Republics.
- (2)
- By mutual agreement, the Commission for the Control of the Washington Agreements and Rubber Reserve will determine the countries to which these exportations shall be made, with the establishment also of the respective quantities.
- (3)
- The exportations shall be made directly from exporter to importer, that is, through the normal channels of trade.
- (4)
- The Government of Brazil shall have the exclusive responsibility of making the communications to those interested governments with respect of the quotas granted to each of them.
- (5)
- For other manufactured rubber products which are or come to be manufactured in Brazil the Governments of Brazil and the United States agree to establish a plan to supply the other countries of this hemisphere under the same conditions established for tires and tubes.
They further read us their proposed announcement approximate translation being as follows:
“In accordance with the rubber agreement between Brazil and the United States dated March 3 which gives the United States the right to purchase the entire exportable surplus of Brazilian crude and manufactured rubber, the Government of Brazil in cooperating with the United States has arranged to assume a part of the responsibility of supplying the essential requirements of other American countries for those rubber manufactured articles which can best be made in Brazil and best shipped from Brazil. Quantities of such articles are to be made now in advance on a quarterly basis to the countries of destination. The commitment for . . . . . quarter . . . . . year for shipment from Brazil to country will be . . . . . passenger tires and tubes and . . . . . truck tires and tubes.”
Regarding condition number 2 above the Brazilian Commission has agreed verbally to a full clearance with Washington in advance in order to follow Washington’s global allotment for each country less the quantity which can best be supplied from the United States instead of from Brazil. Although the Brazilian authorities have so far declined to put this specifically in the exchange of notes it may be possible to obtain such a commitment from them in a separate letter to our Embassy.
Regarding number 3 above the Brazilian Commission has agreed on the Certificates of Necessity procedure in Department’s telegram 2251, August 12, provided certificates can be cleared through Rubber Reserve, Rio de Janeiro.
Micou has requested that above conditions particularly number 2 be cleared with Colonel Lord75 and Peurifoy76 for possible effect on Board of Economic Warfare program for allocating essential requirements to other American countries.
We would appreciate your clearing the above counterproposal with interested Agencies and Departments in Washington and telegraphing or telephoning your instructions. [McAshan.]
- Not found in Department files.↩
- Organization established by the Brazilian Government to supervise the production and dispatch of strategic commodities to the United States.↩
- Col. Royal B. Lord, Assistant Director of the Board of Economic Warfare.↩
- John E. Peurifoy of the American Hemisphere Exports Office, Department of State.↩