The Santos and Rio offices of the Commodity Credit Corporation are
actually buying coffee and purchases in Vitória will take place
shortly.
[Enclosure]
Memorandum of the Meeting Held at the Embassy
on April 27, 1943—From 5:30 p.m. to 1:15 a.m.,
April 28, 1943
|
Present: Messrs. Valentim Bouças, Hungria Machado, João
Mellão, José de Oliveira Castro, Jayme Guedes, Walter J.
Donnelly, Harry Prochet, Stephen A. Crump, and E.
Livaudais.85 |
At this conference the following was agreed upon by all present and
the Brazilians obtained the concurrence of the Minister of Finance
by telephone:
By mutual agreement the CCC will not buy in Paranaguá. The amount of
139,415 bags corresponding to the quota allotted by the DNC86 to
that port, will be purchased in Santos through established
commercial channels to be designated by the DNC.
2. Brazil recognizes and accepts the standards of qualities of
strictly soft and soft as established by the CCC at Santos on April
18, 1943, and accepted by the group of exporters selected by João
Mellão, who was acting on behalf of the Brazilian committee
appointed by the Minister of Finance. Memorandum of the acceptance
of these qualities was signed by representatives of the CCC, Sr.
João Mellão and the exporters on that date.
3. Upon request of the Brazilian Government the CCC will not purchase
free from Rio flavor coffees for the present.
4. The following net FOB maximum prices to the Brazilian exporters were accepted:
|
Santos |
Rio |
Vitória |
| 4’s strictly soft |
11.20 |
10.95 |
— |
| ¾ strictly soft |
11.45 |
11.20 |
— |
| 4’s soft |
10.85 |
10.60 |
— |
| ¾ soft |
11.10 |
10.85 |
— |
| Rio 7’s |
— |
7.60 |
— |
| Vitória ⅞’s |
— |
— |
7.40 |
5. It is agreed that the foregoing prices are not fixed prices, the
basis for prices being governed by Clause 5 of the Coffee Agreement
which reads as follows:
[Page 695]
“5. Coffee purchases or underwritings by the Commodity Credit
Corporation will be made f. o. b. Santos or other accredited
Brazilian ports approved by Commodity Credit Corporation,
the distribution between the respective ports being
indicated by the National Coffee Department, on the basis of
the maximum prices for green coffee established by ‘Revised
Price Schedule Number 50—Green Coffee’—of the Office of
Price Administration, as amended; or at the then prevailing
United States market price, whichever is lower, less, in
either event, 2% for handling and administrative
expense.”
6. The Brazilian committee may propose to the CCC a readjustment of
the charges to be held back incident to the FOB clause of the sale.
If the CCC’s representatives consider that the above mentioned
proposal offers adequate protection to the CCC’s interests they will
recommend the same to Washington.
7. The Embassy and the CCC refuse further to discuss or consider any
changes on export taxes on coffee.
8. It was agreed that the Brazilian Authorities will take the
necessary steps to assure that the General Warehouses are informed
of the exemption which has been granted by the Brazilian Government
to the CCC exempting it from insurance required by law, and that
such General Warehouses will act accordingly when issuing
warrants.
9. It was agreed that the Committee would take the necessary steps to
assure that the General Warehouses which desire to store coffee for
the CCC at a reduced rate, will be allowed to do so free from
coercion from any source.
10. To avoid a recurrence of ships arriving at Brazilian ports and
not being able immediately to load coffee for shipment, the DNC
undertakes to provide facilities to have bagged and ready for
export, duly cleared from all governmental requirements, 100,000
bags of coffee in Rio and 50,000 bags in Santos, representing coffee
already licensed for importation into the United States.
11. The committee consisting of Messrs. A. H. Machado, J. Oliveira
Castro, and João Mellão, will continue to act as a liaison between
the coffee trade, the DNC and the CCC, to assist in the smooth
operation of the Coffee Agreement.
12. It was agreed that close collaboration will be maintained between
the DNC, the committee mentioned in the foregoing paragraph, and the
CCC. All the parties agreed that they would do everything in their
power, particularly during the initial period, to assure the smooth
operation of the Agreement.
13. It was agreed that the publicity to date has been most
unfortunate and that the Brazilian Authorities, the DNC, and the
Brazilian committee will do all within their power to obtain the
full support of the Press for the Agreement and for the CCC as the
purchasing agency.
