832.24/2877
The Ambassador in Brazil ( Caffery ) to the Secretary of State
[Received April 8.]
Sir: With reference to my despatch No. 14917 of March 13, 1944,54 I have the honor to report that because of the onerous and impractical provisions of portions of the regulations issued for controlling the distribution and consumption of rubber manufactures in Brazil, tire [Page 608] manufacturers and the Commission for the Control of the Washington Agreements, together with the assistance of representatives of the Rubber Development Corporation, have mutually agreed upon certain modifications in the administration and application of those regulations. There is attached hereto a translation of a memorandum of understanding55 with regard to this subject.
It will be noted that this memorandum also establishes the quotas for sales of tires in Brazil during 1944 at 328,104 tires, with tubes in the proportion of two tubes for each three tires.
Upon the assumption that the total production of tires in Brazil during 1944 will be 480,000, it can be expected that purchases of the exportable surplus by the Rubber Development Corporation will amount to not less than 152,000 tires. It is estimated that the requirements of the other South American countries being supplied from Brazil will amount to approximately 138,000 tires, leaving an excess of 14,000 tires for shipment to the United States. If the present plans for increasing the production of tires in Brazil by the use of synthetic rubber materialize, the Rubber Development Corporation’s purchases will be correspondingly increased.
Complete details with regard to this situation are contained in a letter of March 30, 1944 from Mr. H. J. Korkegi56 to Mr. J. W. Bicknell,57 a copy of which was transmitted to the Department.58
Respectfully yours,
First Secretary of Embassy
- Not printed.↩
- Not printed; the memorandum consisted of minutes and decisions of a group of representatives from the Commission for the Control of the Washington Accords, the Rubber Development Corporation, and certain rubber and tire manufacturing companies, March 21 to March 24, 1944. The understanding was concerned largely with domestic matters such as rubber quota problems. (832.24/2877)↩
- Field representative of the Rubber Development Corporation.↩
- Vice president, Rubber Development Corporation.↩
- Not found in Department files.↩