811.20 Defense (M) Brazil/1872: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 9:55 p.m.]
4721. For Duggan.94 My telegram No. 4608, November 7, 4 p.m.95 The Venezuelan Ambassador called yesterday to say he had received a telegram from the President of Venezuela instructing him to arrange for the immediate shipment of tires and tubes to Venezuela. The Ambassador was surprised to learn from the Foreign Office that there was no allocation for his country for the fourth quarter and inquired if this was correct. I told him that one of my experts would call on him to explain the situation.
[Page 722]The tire and tube situation here is unsatisfactory. It is evident that unless we can assure the Foreign Office that each American country has agreed to the allocation and that it is not unilateral action on our part, the Foreign Office will be under constant pressure from representatives of American Republics here and will not be in a position to justify the allocations. This may lead to the repudiation of the agreement to the extent that the Brazilian Government will authorize the exportation of tires and tubes to other countries independent of the allocations.
In Department’s telegram 3021, October 10, 2 p.m.96 it was implied that allocations of tires and tubes to a number of countries had either been reached by agreement or in the case of certain countries with whom the United States has rubber agreements, the allocation represented the amount stimulated [stipulated] in such agreement to cover internal consumption. If such is the case it is amply apparent from statements made by the Ambassadors of these countries in Brazil that neither they nor their Governments understand the situation.
Aside from its effects on Brazil, it would seem desirable that the United States endeavor to arrive at allocations by consultation and agreement with each country.
Aranha has instructed the Commission for Control of Washington Agreements to “insist with the American authorities here” that Uruguay and Venezuela receive allocations for the fourth quarter for 4,000 and 5,000 tires and tubes respectively.
I have observed an increasing resentment on the part of my American colleagues here to what they call “arbitrary” action of our Government in dictating the allocations and products they may receive from Brazil.