811.20 Defense (M) Brazil/4844
Memorandum of Proposal Regarding Brazilian Exports of Rubber Manufactures Except Tires and Tubes53
Brazil has announced its preparedness to export in addition to tires and tubes approximately 75,000 kilograms of rubber content quarterly in the form of camelback, belting, hose, packing, and other rubber manufactures. This procedure was envisaged at the time of concluding the October 3 agreement.54 Therefore, beginning with the [Page 675] fourth quarter of 1943, the allocations announced for the South American Republics for rubber manufactures other than tires and tubes will specifically cover exports from Brazil as well as exports from the United States.
To insure that shipments from Brazil will not be destined to firms on the Proclaimed List and to insure that planned imports of any country will not exceed in any quarter the announced quarterly allocations, the country agency in the importing country will issue Import Recommendations to importers desiring to import from Brazil or from the United States, and the total of these Import Recommendations will not exceed the amount of the announced allocations. Brazil should specifically request when it announces fourth quarter allocations that Import Recommendations be issued for orders in Brazil.
With the exception of the original which will be sent by the approving Embassy to the Embassy in Rio de Janeiro instead of to the Office of Economic Warfare for Brazilian orders, all copies of the Import Recommendations will be distributed in the same manner regardless of the source of supply.
No attempt will be made to make specific allocations by countries or by commodities of the rubber manufactures supplied by Brazil, and distribution of the overall allocation between the United States and Brazil will be left to the country agencies in the countries of destination.
Should orders placed with Brazil from all countries greatly exceed the indicated approximate 75,000 kilograms in any quarter, the applicants will be advised and given the choice of placing their order with the United States where a supply is still available or of awaiting the following quarter’s supply from Brazil. However, since, in general, Import Recommendations are not issued until the commercial importer-exporter agreement has been completed, and since Brazilian exporters will know their own exportable volume, it is not contemplated that this condition will develop.
Under this plan, Brazil will be given an opportunity to export in accordance with the spirit of the October 3 agreement but with greater freedom of action than there envisaged. At the same time, the allocation system with its consignee control will be maintained in its broader aspects.
The Rubber Development Corporation will not purchase the goods as it does in the case of tires, and it will not appear in the role of comptroller. However, the CCWA55 will submit monthly reports of exports to the Embassy at Rio de Janeiro for casual check against the files of original copies of the Import Recommendations.
Clearance of individual cases with Washington will not be necessary.
- Transmitted to the Embassy in Brazil as enclosure to Department’s instruction No. 4876, August 12, 1943.↩
- For summary of this agreement, see Foreign Relations, 1942, vol. v, p. 719, footnote 87.↩
- The Brazilian Commission for the Control of the Washington Agreements.↩