102.7/3481: Airgram
The Secretary of State to the Ambassador in Brazil (Caffery)
A–2181. For Crump and Prochet from Commodity Credit Corporation. Refer your 4120, August 27.95 It has been agreed by the Office of Price Administration and Commodity Credit Corporation that the present would be an appropriate time to eliminate the subsidy paid on coffee imports, except to the extent necessary to carry out already existing commitments under the Commodity Credit Corporation agreements. Following a meeting with the General Coffee Industry Trade Advisory Committee, at which all aspects of the program and contemplated termination were discussed, the interested Government agencies met and decided to terminate the subsidy as of the close of business on August 25, 1943.
The procedure was to withdraw all unused authorizations which had been issued under the terms of the Purchasing Agency Agreement. Henceforth, all new authorizations to import coffee will be issued under the provisions of General Imports Order M–63.96
The off-shore portion of this subsidy on shipments of coffee from Brazil varied from 11½ cents to 16½ cents per hundred pounds, depending upon the voyage. Inland transportation varied according to the port of entry and the ultimate interior destination.
[Page 700]Price Schedule No. 5097 will be amended to reinstate the flexible clause permitting increases over pre-Pearl Harbor basis to be passed on to roasters, but it is not anticipated that either green or roast coffee prices will be advanced.
The inland transportation allowance will not be granted on shipments covered by bills of lading dated on or after October 1, 1943.
Refer your 4109, August 27. Two months’ inventory limitation related only to payment of domestic transportation allowance. Requirement that bills of lading must be dated prior to October 1 in order to qualify under Purchasing Agency Agreement should induce accelerated shipping in September. There are outstanding sufficient Commodity Credit Corporation authorizations to more than fill all shipping space allotted to coffee during September.
It is rumored here that Lloyd Brasileiro is considering placing direct coffee steamer to Pacific Coast. Can you confirm this? Suggest effort be made to encourage the shipment of coffees to contract ports of entry on both east and west coasts. [Commodity Credit Corporation.]