832.852/63: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received November 18—3:14 a.m.]
4807. Rose requests that following telegram be delivered to Radner, Brierley,37 War Shipping Administration:
At a meeting today between representatives of Lloyd Brasileiro, the Embassy and the War Shipping Administration held for the purpose of speeding up the turnover of the chartered vessels, it was concluded that the most expeditious manner would be for us to take delivery of the vessels in the United States.
The Lloyd Brasileiro raised the point of the cost of repairs in the United States to comply with article 5 of the Charter Party. Of the 13 vessels chartered: 1 has been delivered; 1 is about to be delivered; 2 are in very poor conditions, namely, the Minas Loide and the Ceara Loide. The condition of the last two vessels is such that considerable repairs would be necessary here prior to the vessels’ departure in class; it was tentatively agreed that these two vessels should remain here, the requirements of article 5 of the Charter Party to be completed here prior to delivery to us of these two vessels. Repair costs incidental to article 5 for the three vessels which are en route to the United States would be covered under the lump sum mentioned hereafter.
The remaining six vessels would be placed in safe condition here, including dry docking, cleaning and painting the bottom and drawing the tail shaft, all for the account of Lloyd Brasileiro inasmuch as these vessels would be in the employ and under the direction of Lloyd Brasileiro until delivered to us in United States.
It was suggested that the Brazilian Government would agree to lump-sum payment of $150,000 for repairs to the nine vessels. From conditions seen on the vessels available here, it is felt that this is a fair estimate of costs in Brazil. The excess cost, which would be offset by the much faster turnover. Lloyd Brasileiro would agree to dry dock, clean bottom, draw tail shaft and place all vessels here and not yet delivered in seaworthy condition for the voyage to the United States as expeditiously as possible.
[Page 749]The Ceara Loide and the Minas Loide, two vessels which are not out of class and require major repairs of boilers, decks, et cetera, and which from observations will not be delivered to us for approximately 3 to 4 months, are to remain here until this work is completed by Lloyd Brasileiro for their account. The time and cost to prepare these vessels for a safe voyage would be practically the same as required for a turnover to us, and these repairs in the United States would be excessive.
The following is a breakdown of the 13 vessels: 1 has been delivered and 1 will be delivered shortly; 2 are being repaired in Rio; and there are 9 which it is felt can be delivered to us in a reasonable time, of which 3 are now en route to the United States.
The Golaz Loide has been delivered to us, and the Recife Loide is expected to be delivered within the next 10 days.
The Gavea Loide and Bahia Loide should be ready to proceed within the next 10 days to the United States for delivery there.
The Vitoria Loide is sailing coastwise and should not require much time upon her return here for the voyage to the United States.
The Pelotas Loide and Norte Loide have temporary certificates in British corporation.
The Su Loide will require putting through class; she is now out of class.
In each case the three last-named vessels can be given a temporary certificate to proceed to United States and there undergo and complete class requirements.
The Rio Loide, Apa Loide and Pirai Loide are now en route to the United States.
The Ceara Loide and Minas Loide are to remain here until completion of their repairs.
After carefully analyzing all possibilities, it is suggested, for your consideration, that, if we are to have any despatch, that we agree to accept a maximum lump-sum payment of $350,000 for all expenditures for the nine vessels mentioned and additional expenditures incurred, with the exception of those for the Minas Loide and Ceara Loide, to be for our account.
Please telegraph your views of the proposal, particularly as Lloyd Brasileiro have definitely informed us that due to lack of mechanics, material and equipment, the delivery of the vessels to us here in accordance with article 5 will be considerably delayed. [Rose.]
- Daniel S. Brierley, Ship Surveyor.↩