832.852/35: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 9:28 p.m.]
2638. Department’s 1957, July 19, 1942.19 Negotiations are progressing satisfactorily. We have postponed discussion of details of commodities pending definite agreement on ships. Conversations [Page 738] envisage charter of at least 13 ships and operation of not less than 28 additional ships between Brazil and the United States. Aranha and Souza Costa20 at first held out for right of Brazilian Government to load M–63 products on 28 ships regardless of our shipping priority list, but when I refused to yield they agreed to give preference to strategic materials.
Aranha stated again that President Vargas is disposed to make available to President Roosevelt several Brazilian passenger ships as troop transports. He has asked me to write him a letter indicating President Roosevelt’s interest in the matter. Does the Department approve?21
Aranha and Souza Costa are anxious to conclude the negotiations promptly and to give nation-wide publicity to the commodity program and only brief and general reference to the ships. They see in the commodity program a means of strengthening their political positions which are insecure as a result of the recent political developments here. I told Aranha that I would inform Department regarding the publicity program. What are the Department views?