Office of the Historian

800.8830 Coal/191a: Airgram

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

Washington, September 25, 1942—7:20 p.m.

A–288. Reference is made to Department’s airgram A–241 of September 17 in which reference was made to the fact that the Lloyd Brasileiro was really not cooperating fully in the transportation of goods between the United States and Brazil. The War Shipping Administration has recently detailed for the Department some of its difficulties. These are:

  • “1. There is an urgent need for better cooperation between the War Shipping Administration and Lloyd Brasileiro, with particular reference [Page 743] to the character of cargo lifted by the Brazilian and the American controlled vessels in this trade. There is a tendency on the part of the agents to await the assignment of American controlled vessels before disclosing information with respect to their own prospective sailings. The agents claim that they are unable to get the information from Brazil.
  • 2. There is a rather well-founded suspicion on our part that the Brazilians are interested in higher paying freight and that some of their apparent operating difficulties may spring from a desire to avoid handling undesirable cargo such as newsprint and coal.
  • 3. There is a definite need for the reaching of some understanding, with the Brazilians with respect to the number of vessels earmarked for trade between Brazil and the United States and some undertaking to continue to operate a minimum number of vessels in this trade.”

Of course, item 3 would be cleared up in part if the proposed ship deal with the Brazilians is made. Even in this case, however, there is no firm undertaking to put any more ships into the United States trade to replace any which may be sunk. There continues a belief in Washington that there are additional Brazilian vessels in non-essential trades or not regularly operating which could be added to the Brazilian-United States service.

The Department would appreciate your comments and requests that in your discussions with the Brazilians on shipping matters that occasion be taken to bring home these points.

Hull