832.24/2931: Telegram

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

1620. Following is in reply to Department’s 1349, April 27, 8 p.m.

1. The offer contained in the Department’s 1035 March 3187 was thoroughly investigated by the Bank of Brazil but because of the following facts it was unable to conclude the purchase:

The prices were 1942 dealers prices plus storage at the rate of $15 a month and interest at one percent a month; this, combined with the fact that trucks were equipped with bodies which considerably increases the inland (United States) and ocean shipping costs, resulted in an excessive landed cost so as not to permit their sale in Brazil. The truck specifications were not those usually ordered for use in Brazil. It is understood that 20 of the trucks were four-wheel drive types which are not used commercially in Brazil.

2. Mack representative here states only trucks in stock are two very large bus chassis which have not been sold because of inability [Page 581] to obtain suitable bodies locally but that bodies have now been ordered from the United States. He also states that he has already placed an order for 24 truck chassis and could readily sell a total of 40 to 50 large type chassis if they could be obtained.

3. The White representative informed its parent company it would be difficult to sell trucks to private operators having a limited gas ration but that there was a demand for chassis by bus lines, Government Departments, et cetera. This company also has ordinarily sold only large types in the market.

The trucks most urgently needed here are of the medium types the greater part of which have been sold in the past by Ford, General Motors and International and whose representatives here have confirmed to the Embassy and the Brazilian Government the strong demand and urgent need for these types. These three companies handle approximately 90% of the truck business in Brazil.

4. The Joint Military Commission here states that all Lend-Lease trucks intended for local use have been earmarked and are being placed in service as rapidly as the military units for which they are intended are activated. Full information with regard to these trucks has been forwarded by the Commission to the Joint Commission in Washington.

It is hoped that the foregoing information will enable the Department to continue its efforts to obtain these urgently needed trucks for Brazil.

Caffery
  1. Not printed.