811.20 Defense (M) Brazil/5016
The Ambassador in Brazil (Caffery) to the Under Secretary of State (Welles)
Dear Sumner: With reference to my letter No. 59 of July 21,15 the program for the procurement of mica is far behind schedule and I am told that the reason we are not obtaining more mica is that the small miners have abandoned their mines because they cannot operate them at a profit based upon prices prevailing in the interior. This situation is in contrast with the activities of these properties prior to our entry into the war when the Japanese were purchasing large quantities of mica directly from the mines.
I suggest that we can procure larger quantities of mica provided (1) we pay higher prices to the miners, and (2) we use reliable Brazilians and not Americans to contact the miners. There are too many American technicians travelling in the interior of the country endeavoring to procure mica and quartz crystal, and I am convinced that until we change this program and utilize Brazilians for this purpose that the procurement program will be retarded.
A prominent Brazilian told me yesterday that some American engineers of the USPC16 recently visited some potential tin properties in the State of Minas Gerais and that the first thing they did was to offer a cocktail party for the owners of the mines. It was the first time that some of the miners had ever attended a cocktail party. [Page 662] They gained the impression that we were greatly interested in buying the product and that they could name their own price, which is not the case.
With all good wishes,
Yours very sincerely,