832.61333/992: Telegram

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

2103. Department’s 1739, June 7, 6 p.m. I have informed the appropriate Brazilian authorities.

The Finance Minister told me today that he will call a meeting next week of the delegates of coffee-producing states. He will inform them that he has exhausted every means of obtaining an increase in coffee ceiling prices in the United States; also that unless exporters are willing to sell coffee for shipment to the US within the price ceilings that the Government will do so by drawing on the stocks of the National Coffee Department. He added “I am confident the coffee problem will be settled within 10 days”.4

He requested that we treat as confidential until after the above mentioned meeting the decision of the OPA.

  1. The Coffee Convention recognized the necessity of maintaining normal coffee exports and authorized the National Coffee Department to sell coffee from its stocks to insure compliance.