811.20 Defense (M) Brazil/5126b: Telegram

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

3283. There is being despatched today an airgram for Winans13 from OEW instructing him to request you to initiate negotiations with the Brazilian Government concerning rice, beans, castor seed, peanuts, etc. and you are requested to press the negotiations vigorously with a view to their prompt conclusion.

These instructions have been delayed because of discussions here as to future conduct of foreign food procurement. This question has not yet been settled, Mr. Crowley14 having stated that he has not yet made up his mind and that in any event he will have to discuss the matter with the President. It has been agreed by the Department, OEW, Commodity Credit and Department of Agriculture that until this decision is made these agencies will try to work together to deal with pressing problems in this field. During the past week there has been an argument primarily between Agriculture and OEW as to whether airgram in question should be addressed to OEW representative or solely to the Embassy. Mr. Crowley feels matter is unimportant but prefers not to make an issue over it with OEW subordinates and Department has concurred, in view of its general belief that Mr. Crowley is working out satisfactory overall arrangements respecting future OEW operations.

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Foregoing is confidential for you and the Economic Counselor15 as Mr. Crowley is particularly desirous that intimations on this subject should not be given to OEW representatives in Brazil. It is assumed that Economic Counselor can be made available to conduct these negotiations, and Department of Agriculture wishes new Agricultural Attaché16 to be consulted in connection with them and to participate to extent you deem desirable.

Also for your confidential information Mr. Crowley is trying to obtain suitable head OEW representative for Brazil and both Department and he are urging Paul McKee17 to accept job. Only question is whether McKee can be spared from his business.

  1. Supra.
  2. Leo T. Crowley, designated to be the Administrator of the Foreign Economic Administration, an agency established by Executive Order 9380, September 25, 1943, to consolidate the Office of Lend-Lease Administration, the Office of Economic Warfare, and the Office of Foreign Relief and Rehabilitation Operations, together with their subsidiary corporations and agencies.
  3. Walter J. Donnelly.
  4. Guy Louis Bush.
  5. Formerly an official of the Rubber Reserve Corporation.