Office of the Historian

811.20 Defense (M) Brazil/2919: Telegram

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

Rio de Janeiro, March 20, 1943—7 p.m.
[Received 10:29 p.m.]

1400. For Allen, Rubber Development Corporation32 from Russell.33 At a meeting yesterday we discussed the control of all crude rubber stocks for Brazilian industry in the following matter: [Page 667]

1.
Banco de Credito da Borracha to maintain and operate warehouses in Rio and São Paulo.
2.
Rubber Development Corporation Rio Division would sell all of its rubber to Banco de Credito da Borracha at these points where this rubber would be used by the industry.
3.
Only that amount of rubber necessary for industry would be shipped from Amazon to these warehouses in Rio and São Paulo.
4.
Industry would buy from these warehouses only and each purchase would be approved by the CCAW34 in accordance with allocation prepared and decided upon by Coordinator of Industrial Mobilization Committee working in close touch with CCAW.
5.
Korkegi, CCAW and Coordinator of Industrial Mobilization Committee, would have close check on disposition of rubber and would check the purchase contracts with allocations of crude to industry.
6.
We would, through Banco de Credito da Borracha, be able to check and control shipments of Amazon rubber industry south Brazil.
7.
We believe we can arrange this definitely by a Presidential decree setting up this system and prohibiting the exportation of any rubber manufactured goods except by allocation and approval of the CCAW if you approve. On your approval of this general plan we will proceed to work out details, price structure, et cetera, advising you fully as we progress. This replies in part to your airgram 1047.35 Have advised Long and Chambers. [Russell.]

Caffery
  1. Douglas Allen, president of the Rubber Development Corporation, a United States governmental agency, established February 20, 1943, as a subsidiary of the Reconstruction Finance Corporation. The Rubber Development Corporation took over all activities of the Rubber Reserve Company concerned with foreign rubber sources.↩
  2. Official of the Rubber Development Corporation.↩
  3. Presumably the Brazilian Commission for the Control of the Washington Agreements.↩
  4. Dated March 11, 1943, not printed.↩