561.333D3/7–744: Telegram

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

2430. Guedes now attempting to form group of nine large Santos exporters to carry the understanding mentioned in Department’s 2048, July 3, 10 p.m. He states that several of the firms have already promised to cooperate and pool resources, but he does not expect to be able to give definite assurances until some time next week.

Meanwhile DNC moving average of 20,000 bags a day from its stocks at São Paulo to Santos from which it can loan coffee to firms prepared to ship.

Embassy will immediately report all further developments.