800.8830 Brazil/38a: Telegram

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

1464. The following is our tentative southbound shipping program to Brazil:

Coal

The War Shipping Administration will attempt to provide space for 50,000 tons of coal a month to Brazil. It will be incumbent upon Brazilian shipping to move an additional 25,000 tons a month. The Department estimates that this amount of coal from the United States will be adequate for Brazilian requirements if ore movement over Central do Brasil is reduced and if other economies are made in the use of coal. Your comments on this estimate would be appreciated. We shall also make efforts to have the British divert some coal shipments to Brazil. Deadweight tonnage available for coal from the United States for the present month is approximately 76,000.

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Other Dry Cargo

Shipping available for other dry cargo to Brazil is approximately 39,800 deadweight tons. Assuming that 75 percent of this figure represents cargo carrying capacity, the Department has suggested to the Maritime Commission that the resulting 30,000 tons be apportioned in the following manner: iron and steel, 25.8 percent; tinplate, 10.0; newsprint, 13.3; wood pulp, 10.0; machinery, 4.1; copper and brass, 1.6; naval stores, 4.1; sulphur, 2.0; caustic soda and soda ash, 4.1; fertilizers, 3.7; other essentials, 21.3.

Your comments on the above would be appreciated and should be in the Department not later than June 10. Should you differ substantially with the Department’s estimates, corrective measures can be applied by the W.S.A. during the remainder of the month. At the same time, please indicate applicability of tonnage allocation and percentage distribution to July shipments.

Our understanding is that five Brazilian ships will leave for United States ports in June. Thirteen United States or United States-controlled vessels are allocated to this trade.

Hull