832.24/2628
The American Ambassador in Brazil
(Caffery) to the Brazilian
Minister for Foreign Affairs (Aranha)78
No. 1942
Rio de
Janeiro, November 9, 1943.
Excellency: I have the honor to refer to
the note of Your Excellency of October 8, 1943, number DEC/373/832.1
(42) (22)76
attaching a Memorandum79 proposing the partial
modification of the existing procedure now being followed by the
Carteira de Exportação
[Page 157]
e
Importação of the Bank of Brazil, with the collaboration of my
Embassy, in handling Preference Requests for the importation of
materials from or via the United States.
The Memorandum described above was referred to my Government which
has offered certain suggestions in view of existing conditions. I,
therefore, now have the honor to transmit for Your Excellency’s kind
consideration a new Memorandum on the subject, on which
representatives of the Carteira, my Embassy and the Commercial
Counselor of Your Excellency’s Embassy in Washington are in
agreement.
I submit this having in mind the provisions of Your Excellency’s note
of October 8, referred to previously.
[Enclosure]
Memorandum of Agreement on Supplementary
Decentralization Plan
It is recognized that under the present changing wartime
conditions the exportation of commodities from the United States
covered by the Decentralization Plan must be assisted in so far
as possible by flexible controls which themselves are contingent
upon the availability of supply. With this in mind and
recognizing the importance of utilizing to the fullest extent
possible every ship sailing for Brazil, the following principles
chosen on the basis of the prevailing supply conditions will
govern the exportation of products from the United States to
Brazil.
- 1.
- The importation of products subject to estimates of supply
or allocations made to Brazil (short supply) will continue
to require Preference Request Recommendations.
- 2.
- The importation of products which are considered to be in
free supply will not require Preference Request
Recommendations or Export Licenses.
- 3.
- The importation of products which while not considered in
short supply, are subject to manufacturer’s export quotas or
similar restrictions of the War Production Board or other
Agency of the United States Government, will not require
Preference Request Recommendations. The representative in
the United States of the Carteira de Exportação e Importação
do Banco do Brazil, the Commercial Counselor of the
Brazilian Embassy, will, however, be notified of the
granting of every quota assigned to Brazil.
- 4.
- In case any materials in short supply may temporarily
become available in such quantities as to make possible the
satisfaction of export demands, the Foreign Economic
Administration will have the authority, while this
exceptional supply contion [condition] lasts, to
[Page 158]
grant Export Licenses even if the
corresponding applications are not covered by Preference
Request Recommendations. It is nevertheless understood that
applications accompanied by Recommendations or to which
Recommendations have been issued are to have preference over
all others. Distressed materials and used machinery and
equipment not subject to allocations may be exported without
an accompanying Recommendation provided the exportation is
in the interest of the war effort and the economy of Brazil.
Applications for Export Licenses or Statements of Cargo
Available for materials of this category will receive
preferential treatment if accompanied by
Recommendations.
- 5.
- Preference Request Recommendations will not be required
where the goods have a value of dollars twenty-five or
less.
- 6.
- Shipment of all commodities to Brazil will be made,
insofar as possible, within the quotas established by the
monthly shipping programs and in accordance with the
following procedure: (a) materials
for special projects or under the Lend Lease program will
continue to be shipped within the quotas established by the
monthly shipping programs; (b)
materials considered by the Carteira as essential to the
Brazilian economy, whether requiring Preference Request
Recommendations or not will have preference within available
shipping and available cargoes, and (c) materials not considered by the Carteira as
essential to the Brazilian economy will be shipped only
when, either for lack of cargo or for technical reasons, the
ships will not be able to take any more essential materials.
The representative of the Carteira will, as heretofore,
participate in the preparation of the monthly shipping
programs.
- 7.
- While the impossibility of controlling individual
shipments is recognized, the representative of the Carteira
in the U. S., the Brazilian Commercial Counselor, in order
to assist in the execution of paragraph 6 above, will
furnish a list of all those commodities the shipment of
which the Brazilian authorities consider essential to the
maintenance of their basic economy.
- 8.
- In order that the representative of the Carteira in the
United States, the Brazilian Commercial Counselor, may keep
himself currently informed of the execution of the above
plan, the War Shipping Administration will currently furnish
the office of the Brazilian Commercial Counselor with a copy
of each “eligible cargo list” as soon as it has been
prepared for distribution.
- 9.
- In order to insure the complete employment of space on
vessels voyaging between Brazil and the United States the
appropriate authorities of the United States Government will
give consideration to
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any proposal received from the
Brazilian Government for the shipment of products to the
United States observing for such purposes however the
provisions of General Import Order M–63.
