Office of the Historian

800.8830 Coal/241: Telegram

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

Rio de Janiero, February 16, 1943—8 p.m.
[Received February 17—3:03 a.m.]

801. Department’s 541, February 12, 10 p.m.41 Any reduction in the volume of 50,000 tons would be politically inexpedient and would [Page 724] adversely affect Brazilian economy at this time. Brazilian Maritime Commission has protested to the Brazilian Government and Embassy against the reduction in the allocation of coal to shipping companies within the 50,000 figure and has requested an increase of 18,450 tons monthly for Brazilian shipping companies. They state that stocks are very low and that failure to allocate more coal to the shipping lines may shortly result in a curtailment of services. Celestino42 of Lloyd who has just arrived from Belém says there is no coal there. President Vargas is supporting the shipping companies. Also, he sent me word Saturday that 50,000 tons is too little.

This case and the problem of augmenting Brazilian production of coal, as well as the possibility of obtaining more coal from Great Britain are now being studied by Vidigal43 and other Government officials. Vidigal has requested the Commercial Counselor of the British Embassy here to ascertain from his Government the possibility of more British coal being shipped to Brazil to satisfy the requirements of British-owned companies and part of the needs of public utilities (Canadian) in Rio and São Paulo. We understand consideration is being given to the possibility of sending coal from South Africa. We hope that this can be done to improve the situation here.

The statistics of coal shipments to Brazil included in the telegram under reference are at variance with the official import statistics of the Brazilian Government which show that average monthly imports into Brazil from the United States from May 1, 1942 through January 1943 amounted to 43,029 tons.

Caffery
  1. Not printed; the Department indicated that it was unaware that a reduced monthly coal shipment of 39,570 tons to Brazil had had a drastic effect upon Brazilian economy (800.8830 Coal/234).↩
  2. Mario Celestino, a director of Lloyd Brasileiro.↩
  3. Gastao Vidigal, Director of the Carteira de Exportação e Importação, Bank of Brazil.↩