832.852/63: Telegram
The Secretary of State to the Ambassador in Brazil (Caffery)
3622. From Cushing,38 for Rose, SD 461. Referring to Embassy’s 4807.39 It is understood that Recife Loide will be delivered in 10 days, and that Golaz Loide has been delivered already. Apa Loide, Pirai Loide, Rio Loide, en route to the United States at present, within 10 days sailing to the United States are Baia Loide and Gavea Loide. The Norte Loide, Pelotas-Loide with temporary certificates, and Su Loide which is temporarily out of class, to proceed under temporary certificates to New York later. Now out of class are the Ceara Loide and Minas Loide. Vitoria Loide, now operating coastwise to shortly proceed to the U. S. It is understood that proposal is for the Ceara Loide and Minas Loide to remain in Rio to complete repairs and class requirements. Delivery to be made at Rio of Recife Loide and Golaz Loide. Nine vessels remaining to be repaired and delivered with U. S. agreed price $350,000 Brazilian account. Repairing, classing, and delivery at Rio of the Minas Loide, Ceara Loide for our account. We do not understand why we should accept these costs which may run into considerable amount as from your statement these vessels require major repairing. It would appear from analysis of proposal that it would be more fair and reasonable as well as more advantageous in our efforts to speed delivery at [if] Brazil’s proposal of $150,000 for estimated repairs be expected [accepted]. This we understand you to feel represents fairly Brazil repair costs on the nine vessels mentioned with delivery in U. S. and in accordance with contract Brazil to complete the Minas Loide and the Ceara Loide will [still] at Rio for their account. [Cushing.]