561.333D3/1615b: Telegram
The Secretary of State to the Ambassador in Brazil (Caffery)
4615. With reference to previous publicity given to alleged imminence of an increase in coffee ceilings, Department’s telegrams 4553, December 13, and 4562, December 14, Penteado denies responsibility…
At the meeting of the Inter-American Coffee Board on December 16 Penteado proposed and the Board approved issuance of the following press release:
“The Inter-American Coffee Board in its meeting held this morning gave very serious consideration to rumors circulating in the coffee trade of a possible revision of the ceiling prices for coffee as established [Page 706] by the Office of Price Administration. In view of the very disturbing effect that such rumors are having in the coffee business, the Inter-American Coffee Board wishes to remind the trade both in the United States and in the producing countries of the following statement on the subject issued by the Office of Price Administration December 2, 1943: ‘No upward revision in coffee ceiling prices either on green or roasted coffee is contemplated, the Office of Price Administration said today.’”
However, the Board continues to be interested in the question of whether or not an increase in coffee ceiling prices is justified, but plans to study the matter in such a manner as not to give rise to further rumors or publicity. It also plans not to take the matter up with the Office of Price Administration unless and until the Board can present a factual and statistical justification of a proposed increase.
The Embassy is requested to forward to the Department as soon as possible any information it may have or be able to collect without giving rise to further rumors indicating whether or not the present ceiling prices on Brazilian coffee are adequate. In this connection information concerning the following subjects would be helpful:
- 1.
- Extent to which coffee prices covered costs of production in November 1940, December 1941, and at present.
- 2.
- Probable effect on the production of Brazilian coffee of maintaining present ceilings.
- 3.
- Changes, if any, in Brazilian taxes on coffee since November 1940.
- 4.
- Extent to which coffee growers have benefited by price increases since November 1940.
- 5.
- Prices at which Brazilian coffee is now selling in markets outside the United States.
- 6.
- Any other information considered by the Embassy to be pertinent.