561.333 D 3/6–2744: Telegram

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

2332. According to National Coffee Department, 797,188 bags were sold and registered at Santos for export to United States between June 25 and July 31 and the coffee is now available at Santos. Of this quantity, 357,791 bags are for shipment to New York for which space has been allocated for only 100,000 bag’s. The balance of 439,397 bags is for shipment to New Orleans and the Pacific Coast; however, no space has yet been allocated for this tonnage. In addition sales to United States Army for shipment from Santos through July total 316,000 of which space closed for 221,000 bags.

Sales registered during the same period for export to the United States from Rio de Janeiro, Angra dos Reis and Paranaguá are reported at 238,903, 31,000 and 40,000 bags respectively. Coffee Department has knowledge of confirmed space for Paranaguá but none for Rio and Angra.

Shipments from Santos to United States from June 1 to June 24 totalled 564,582 bags; from Rio de Janeiro 4,600 bags and from Angra dos Reis 37,250 bags.

Shipments from Brazil to United States through May 31 and chargeable to fourth coffee quota year totalled 7,269,717 bags.

Stocks at Santos on June 24 were 3,741,835 bags and all Brazil approximately 4,500,000 bags.

Hard and Rand5 are now negotiating with Coffee Department for purchase 500,000 bags for the army. In order to meet army requirements, Coffee Department will if necessary, release coffee from its stocks.

It is hoped Department can postpone quota increase in view of general favorable acceptance here of recently announced policy of Brazilian Government to bring prices within the range of OPA ceilings (Embassy’s 2244 of June 20, 2 p.m.6) despite opposition of strong coffee group in São Paulo. Furthermore, the Minister of Finance,7 who is responsible for the new policy, left yesterday for the United States to attend Monetary Conference8 and an increase in quotas shortly after his arrival there would proye most embarrassing to him.

  1. Hard and Rand, Inc., coffee dealers of New York City.
  2. Not printed.
  3. Arthur de Souza Costa.
  4. United Nations Monetary and Financial Conference held at Bretton Woods, New Hampshire, July 1–22; for correspondence on the Conference, see vol. ii, pp. 106 ff.