832.61333/7–1744: Telegram

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

2223. Embassy’s telegram 2561, July 17.11 The Office of the Quartermaster General had bought from seven different importers 162,000 bags of strictly soft solid bean Santos coffee grading 2’s to 5’s for August shipment as of Tuesday night, July 18, was negotiating for additional quantities sufficient to bring the total for August shipment to 342,000 bags and was of the view that coffee of the agreed type and grades would be forthcoming soon to complete the purchase of the 500,000 bags for August shipment.

No coffee had been bought for September shipment. For the Embassy’s strictly confidential information the Office of the Quartermaster General has been informed through a trade source that an attempt might be made to have that office agree to purchase the second 500,000 bags for shipment during September or October at sellers option but that the full 500,000 bags could be obtained for September shipment should the office insist. It intends to do this and the Embassy will be informed in the event that any unexpected difficulties should arise in connection with the completion of the purchase of the million bags for shipment by the end of September.

It is hoped that the Brazilian authorities will take the necessary [Page 636] action to assure the sale of the 4,500,000 bags of civilian coffee for shipment by the end of December in accordance with the memorandum of understanding. The Embassy is requested to follow the situation closely with a view to taking such steps as might be necessary to assure such action.

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  1. Not printed.