832.61333/10–144: Airgram

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

A–1582. ReEmbs 3535, October 1. Souza Costa’s press statement on October 1 seemed to indicate that it was his understanding that the Brazilian commitment for civilian coffee amounted to a million bags a month September through December. As the Embassy knows, the Memorandum of Understanding also stipulated 500,000 bags of civilian coffee for August shipment from Santos.

The Embassy is requested to transmit to the Department as soon as practicable the quantity of Army and civilian coffee made available for shipment by months under the terms of the Memorandum of Understanding August 1 to November 30. It is not clear here how much civilian coffee shipped from Santos during August was counted against the Memorandum of Understanding commitment of 500,000 bags.

The Department presumes that the Brazilian Government interprets the Memorandum of Understanding as meaning that all coffees made available for shipment to the United States civilian market at any Brazilian port during September through December may be counted in fulfillment of the commitment.