811.20 Defense (M) Brazil/4573: Telegram

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

2992. Souza Costa told me today that he has been urging Aranha to sign the quartz and mica agreements and he cannot understand his attitude in delaying action on these important agreements. He promised to discuss the matter with Aranha tomorrow. He said that he had instructed the Banco do Brasil today not to permit the exportation of crystal, mica, or rotenone to countries other than the United States and Great Britain, pending the signing of the agreements. He has taken similar action with respect to the exportation of miscellaneous rubber.

Caffery