832.61333/9–1544: Telegram
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received 3:03 p.m.]
3315. Department’s 2811, September 13, 4 p.m.12 Souza Costa and Guedes today assured the Embassy that the Brazilian Government will live up to the Memorandum of Understanding reached in Washington. Guedes said that the 300,000 bags to complete the second lot of 500,000 bags of coffee for the Army will be in Santos about September 15.
To insure the availability for export to the U. S. of one million bags of civilian coffee in each of the months of October, November and December, the DNC has arranged for deliveries to port of Santos of at least 30,000 bags of DNC coffee daily. The coffee will be sold to exporters only upon presentation of documentary proof of sales of an equivalent amount to the United States. To remove any doubts as to his (Guedes) intent, my Economic Counselor drafted in his presence the following memorandum which he read and approved:
“Dr. Guedes of the DNC today assured the Embassy that the remaining 300,000 bags of the second lot of 500,000 bags for the Army will be delivered to the exporters in Santos by September 15. Also, that the DNC will provide coffee to exporters in Santos in order to permit exportation of one million bags of (?)13 coffee to the United States during October, November and December each. Entries at Santos now approximate 30,000 bags daily of DNC coffee. The DNC expects to increase shipments to Santos.”
To encourage American purchases of the one million bags per month, the Department’s representative on the Inter-American Coffee Board may wish to intimate to the coffee trade that the DNC has given assurances that the coffee will be available to exporters here.