832.24/2815

Memorandum by the Secretary of War (Stimson)69

Reference is made to your letters of 3 January and 7 January 194469a in regard to the desire of the Government of Brazil to purchase surplus construction and engineer equipment and to secure the services of the Army Engineers in rendering supervision and technical assistance on various Brazilian Government projects.

While no final reply can be made at this time, due to the factors involved in the disposal of the equipment, the Commanding General, United States Army Forces South Atlantic, has been advised this date that the Department of State has been informed substantially as follows:

a.
That the United States does not intend to remove any construction equipment now in Brazil other than items presently in short supply or those required by urgent operational needs, and that it is believed it will be apparent to the Brazilian Government that the requirements of the war situation prevent making any more definite agreement at this time.
b.
That the United States Government is prepared to sell to Brazil certain equipment now located in that country, which it is considered will not be required later. In addition, the Commanding General, United States Army Forces South Atlantic, has been directed to make a study of our own equipment needs in Brazil and submit a list of items, which in his opinion, may be sold immediately to the Brazilian Government.
c.
That, in addition, the District Engineer will be authorized to rent such equipment as is not presently required by us, and that the matter of sale of additional equipment will be given consideration as the present uncertainties are resolved.
d.
That designation of the District Engineer in Recife as the agency through which technical assistance and supervision may be made available to the Brazilian Government in planning, designing and effecting the construction of public projects directly connected with our supply and operation, is approved in principle.
e.
That if the Brazilians request any further technical assistance and supervision, it is desired that before making any commitments, specific plans and recommendations be submitted, with a statement showing extent of United States participation and of Brazilian responsibilities and their willingness to finance projects.
f.
That, in all of the above, it is desired that Ambassador Caffery be consulted and his recommendations obtained.

This information is furnished to you for transmittal to Ambassador Caffery. General Walsh, the Commanding General, United States [Page 574] Army Forces South Atlantic, will in each case conduct his negotiations with the Brazilian Government through our Ambassador to Brazil and has been so instructed.

For the Secretary of War:
Chas. W. McCarthy

Colonel, G.S.C.
Chief, Liaison Section, O.P.D., W.D.G.S.
  1. Addressed to the Department of State, for the attention of Mr. Laurence Duggan, Director of the Office of American Republic Affairs.
  2. Neither printed.