832.852/44: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 11:35 p.m.]
4556. For the Under Secretary. My 4282, October 20, 3 p.m.35 Dr. Andrade Queiroz, secretary to President Vargas called Donnelly36 and Graham of War Shipping Administration to the Palace yesterday to discuss the passenger ship proposal. He said that the President had decided to transfer to us without any restrictions or conditions, and not to be returned to Brazil, four Lloyd passenger ships (the [Page 747] Pedro I, Santos, Bage, Raul Soares) provided we agree to supply rails and accessories not rolling stock for the proposed railway line to connect the Central do Brazil Railway at Montes Claros in the State of Minas Geraes, with the Leste Railway at Contendas (Bom Jesus dos Meiras) in the State of Bahia, a distance of approximately 500 kilometers. He said that President Vargas and the General Staff of the Brazilian Army regard the project as of vital importance as auxiliary land service for the transport of troops, supplies, et cetera, and as a substitute for a water route and that its completion would make possible an all-rail service between central Brazil to a point north of Natal. He said that President Vargas was unwilling to release more passenger ships at this time owing to the need for the ships for the transportation of troops and supplies along the Brazilian coast. He said that President Vargas does not wish to consider the plan as commercial but as the mutual effort of the two Governments to improve and facilitate inland and ocean transportation for the defense of the Americas. We attempted several times to ascertain the terms under which they would expect us to furnish the rails but the reply was always the same, namely, Vargas does not wish to consider it as a commercial proposition. It was evident, however, that they expect us to supply the rails at our expense in exchange for the complete and unrestricted transfer of the passenger ships to us.
He expressed the hope that our Government would make a prompt decision.
Dr. Queiroz has instructed the Director of the Railway Department of the Brazilian Government to furnish us with detailed information regarding the railway project. Preliminary information obtained from Mr. West, the railway expert Attached to the Embassy, indicates that the uncompleted stretch is 600 and not 500 kilometers, that it would involve the furnishing of approximately 50,000 tons of rails and accessories, also that it would take 2 to 3 years to complete the job following the arrival of the equipment in Brazil. Dr. Queiroz did not specify any time element for delivery of the rails and did not make this a condition for immediate release of the ships. The need for importation of the rails is not immediate and will depend upon the construction of the roadbed.
It was agreed that the surveyors of the War Shipping Administration at present in Rio would survey two of the passenger ships now here. This is being commenced today. One of the other passenger ships is scheduled to arrive here shortly from Europe and the fourth is en route to Buenos Aires and will return in about 25 days.
Dr. Queiroz said he would appreciate my conveying President Vargas’ message to President Roosevelt and requesting an early reply. Detailed information regarding the railway project will be telegraphed [Page 748] after our meeting with the Director of the Railway Department.