832.61333/915: Telegram

The Chargé in Brazil (Simmons) to the Secretary of State

153. The Minister of Finance75 is greatly concerned with the possibility of resumption of coffee rationing in the United States. At a meeting today the Minister instructed Guedes76 to take immediate [Page 618] steps to correct the situation and said that if absolutely necessary the DNC77 should ship coffee to the United States. Donnelly78 pointed out to the Minister that this would have a very unfavorable reaction in the United States and should be avoided if at all possible. The Minister told Guedes that in his opinion the first thing to do was to decrease prices.

The Minister has arranged for a meeting on January 18 of a committee composed of coffee exporters to discuss the present problem and decide on the measures that should be adopted to facilitate the shipping of coffee to the United States. The Minister said the results of the meeting would be publicized both in Brazil and the United States.

  1. Arthur de Souza Costa.
  2. Jayme Fernandes Guedes, President, Brazilian National Coffee Department.
  3. National Coffee Department.
  4. Walter J. Donnelly, Counselor of Embassy for Economic Affairs.