811.20 Defense (M) Brazil/5191: Telegram

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

4374. For Scheuer20 from Winans. Department’s airgram A–2164, August 30, 7:20 p.m. We have discussed the plan with the Minister of Finance and Commission for Control of Washington Agreements, and sending them a memorandum confirming our conversation. The Embassy, the British Commercial Counselor and ourselves recommend that you waive the plan for an overall agreement because based upon past experience, it would require several weeks or more to consummate such an agreement with the Brazilian Government. We suggest that instead we be authorized to negotiate an agreement for each commodity and to incorporate therein the principles suggested for inclusion in the overall agreement. We are confident that this would expedite negotiations here which is very important since plans are now being made for the planting of agricultural food products.

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The Brazilian Government’s reaction to the plan is favorable, particularly the Minister of Finance who has promised his full support. Inasmuch as Bland and our experts are formulating plans for the rice agreement it is important that we receive as soon as possible the instruction from the State Department regarding the arrangements for Bland’s participation. [Winans.]

  1. Sidney H. Scheuer, Chief of the Procurement Branch of the Office of Economic Warfare.