Foreign Relations of the United States: Diplomatic Papers, 1943, The American Republics, Volume V

832.5018/49

Draft of an Agreement To Be Signed by Brazil and the United States With Reference to the Production and Purchase of Exportable Surpluses of Foodstuffs and Other Agricultural Products²²

Washington, September 30, 1943

[Translation]

I Taking into due consideration the memorandum in which the Embassy of the United States of North America in Rio de Janeiro suggests the establishment of an overall agreement with reference to the production of foodstuffs and other agricultural products, the Government of the United States of Brazil considers the celebration of this agreement to be a measure of great value and offering great opportunity, under the following general conditions:

1. Internal consumption shall be provided for before offers of any products are made for export.

2. Prices to be paid for exportable surpluses of the products covered by the agreement shall be, at the minimum, for a period of two agricultural years.

3. The Government of the United States shall employ its best efforts to the effect that a special supply of solid and liquid fuels may be granted in order to provide for transportation needed by new agricultural expansion.

4. The Government of the United States shall facilitate the acquisition and exportation of agricultural machinery, and sanitation and fumigating installations, or shall employ its best efforts to install in Brazil manufacturing establishments for essential agricultural implements.

5. The Government of the United States shall facilitate the acquisition and exportation of railway rolling stock, new or in good condition, and of parts and materials indispensable to the reconditioning of those which already exist in Brazil.

6. Deliveries and the proper commercial settlement with regard to the products covered by the agreement shall be made f. o. b. Brazilian ports, by transatlantic steamer, the merchandise to be deposited in approved and reputable warehouses, the insurance and warehouse charges up to 30 days from the date of notification of delivery to be for account of the seller. At the end of the period, if maritime transportation has not been available, the insurance and warehouse charges shall be for account of the purchaser.

II Under these general conditions, which will assure to Brazilian agricultural production not only a guaranteed stability of prices, for suitable periods, but will also insure transportation and preservation under suitable conditions, the Government of the United States of Brazil engages itself to:

1. Not increase present taxes on exports, nor create others which might be burdensome to products covered by the general agreement or those which may be included later in the form of supplements.

2. Reserve export quotas of the products covered by the agreement for the Latin American countries, subtracting them from the exportable surpluses for the United States of North America.

3. Dispose of these products to Latin American countries at prices identical to those established in the agreement with the United States of North America.

4. Hold in reserve from the harvest of each agricultural product the seed necessary for the cultivation of future crops.

5. Employ its best efforts in order that maximum production may be attained in each of the products enumerated in the agreement.

6. Give the greatest possible publicity to the general terms and conditions of the agreement, in order to insure the greatest possible interest on the part of producers and a clear understanding of the advantages of the agreement.

7. Utilize its technical classification, inspection and export control facilities to insure uniformity in the products sold and conformity to standards specific in the agreement.

8. Grant to the United States of North America the exclusive right to purchase the exportable surpluses of the products covered by the agreement, except in duly specified instances.

[Here follows statistical data on the exportable surpluses, prices, quotas, and shipping points of each of several commodities.]

22. Draft prepared by the Brazilian Commission for the Control of the Washington Agreements; translation transmitted to the Department by the Ambassador in Brazil in his despatch No. 12937, September 30, 1943; received October 7.