561.333D3/1614: Telegram
The Secretary of State to the Ambassador in Brazil (Caffery)
4553. With reference to Penteado’s statement referred to in Embassy’s telegram 5660, December 10, information received by Department indicates that Penteado is principally responsible for the publicity which has been given to the price matter.
Department and Foreign Economic Administration now have under consideration for transmittal to the Embassy a proposed note to the Foreign Minister strongly urging in the interest of both countries the termination of the coffee purchase agreement suggested in Department’s telegram 4156, November 9.99 It is hoped therefore that developments regarding the present price problem will not be such as to prejudice termination of the agreement.
The Embassy is requested unless it perceives objection to bring to the attention of the appropriate Brazilian authorities the following observations:
- 1.
- When considered in the light of the high rate of consumption, coffee stocks in this country are relatively small.
- 2.
- Should shipping become available for Brazilian coffee which private exporters are unable to utilize, the Commodity Credit Corporation is prepared to make use of the space to ship coffee to the United States.
- 3.
- Should a shortage of coffee develop in the United States, the Corporation is prepared to make available for consumption coffee which it has stored here.
- 4.
- Should ships calling at Brazilian ports be unable to load coffee, present shipping schedules for coffee may not be maintained, since the shipping can be very usefully employed elsewhere.
As was indicated in Department’s telegram 4417 of November 30,1 Department would prefer to have private exporters use tonnage available for Brazilian coffee. It is, nevertheless, necessary to assure continued movement of Brazilian coffee to avoid reimposition of limitations on consumption in this country.