561.333D3/1615a: Telegram

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

4562. With further reference to the coffee price situation, Department’s telegram 4553, December 13, there has been absolutely no change in the position of the Office of Price Administration as indicated in its statement of December 2 to the effect that no increase in the ceiling prices of coffee either green or roasted is contemplated. Furthermore, no price increase has as yet even been suggested to the Department or to the Office of Price Administration by any representative of the producing countries.

For the Embassy’s strictly confidential information, the Department is informed that:

1.
The meeting in Washington at which coffee prices were discussed was attended by representatives of Pan American Coffee Bureau and some of the members of the Coffee Board who represent countries which are not members of the Bureau.
2.
The meeting was called by Penteado.
3.
Some of those attending the meeting were opposed to raising the question of an increase in ceilings at this time.
4.
Notwithstanding the fact that those attending the meeting had been assured that no publicity would be given to it, information regarding it was made available to the press by Penteado. Some of the Board’s members who attended the meeting expressed indignation concerning the publicity given to it.

Hull