832.61333/915: Telegram

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

157. The following comments are made in reply to Embassy’s telegram number 154 [153], January 14.

Coffee stocks, although decreasing, are relatively well distributed.
Concern here has been that the stagnation in trading since the middle of November might drastically reduce stocks in February or March.
If all shipping made available for coffee is utilized it is felt that it will not be necessary to restrict coffee consumption in any way.
The suggestion of the trade reported in Department’s telegram 97 of January 1079 regarding the sale of coffee by the DNC envisaged sale of the coffee in Brazil rather than shipment by the DNC which it is believed would not be desirable or necessary to effect the purpose in view.
It is considered essential that the public in this country not know that there is any possibility of a return to coffee rationing and that no publicity should be given to this possibility in Brazil because circulation of the report might lead to coffee hoarding in the United States.

Please bring the foregoing to the attention of the appropriate Brazilian authorities in connection with the meeting scheduled for January 18.

  1. Ante, p. 135.