Foreign Relations of the United States: Diplomatic Papers, 1944, General: Economic and Social Matters, Volume II

800.85/11–2944

The Brazilian Embassy to the Department of State

Memorandum

The Brazilian Government mindful of the necessity of a coordinated control of world’s trade in the transition period wishes to express its concurrence to the Agreement on Principles having reference to the Continuation of a Coordinated Control of Merchant Shipping, drawn up in London on August 5, 1944.

2. In expressing its willingness to subscribe to the aforementioned agreement, the Brazilian Government wishes to make it clear that it understands clause VIII of the Agreement as meaning a recognition by the other shipping nations of the right of the Brazilian Government to exercise exclusive control on coastwise shipping which by law is restricted to Brazilian ships and on such short trade lines as are now or may be established between Brazilian ports and ports of nearby countries such as: Uruguay and Argentina to the South, Paraguay in the Paraná River, and the Guianas, Venezuela and Colombia to the North.

3. The Brazilian Government begs to invite the attention of the United States Government to the fact that in September 1942, when the shipbuilding program of the United States had not reached its prodigious production records which have enabled the armed forces to wage total war in both the Atlantic and Pacific fronts, the Brazilian Government, well aware of the urgent need of the United States for merchant ships for the prosecution of the war, leased, under symbolic charter, 12 ships of its merchant fleet, in spite of complete disruption of its maritime transportation system. It might also be recalled that in the common effort for the prosecution of war, thirty six units of the Brazilian Jflerchant Marine were lost at sea through enemy action.

4. The present destitute situation of the Brazilian Merchant Marine made it impossible for Brazil even to maintain shipping contact between the Brazilian expeditionary forces now fighting with the Fifth Army in Italy and their homes—a contact of importance under the material point of view, but more so yet under the point of view of the morale of the troops.

3 [5]. Anxious to render the fullest possible cooperation to the United Nations cause and to share the responsibilities assumed by the Merchant fleets of the countries participating in the London Agreement of August 1944 and desirous of eventually being assured of the operation of the transatlantic lines considered indispensable to its post-war trade, the Brazilian Government wishes to request from the United States Government, the transfer to Brazil under Lend-Lease arrangement or under symbolic charter of 43 units of the emergency “Liberty” type ships.

6. In view of the restrictions imposed by Clauses III and VII (a) of the Agreement on Principles signed in London in August 1944, the Brazilian Government expects that the proposed transfer of tonnage be made now—before the termination of hostilities in Europe.

Washington , November 29, 1944.