Office of the Historian

832.50/159

Memorandum by the Chief of the Division of the American Republics (Bonsal)29

[Washington,] January 4, 1944.

The Brazilian Ambassador30 came in this afternoon. He argued forcefully and to some extent convincingly that our export policy toward Brazil could be and therefore should be revised. It is his position that many restrictions and regulations now in force are no longer justified by circumstances. He stated that it was extremely important to avoid the continued making in Brazil of unfavorable comparisons between Brazil’s position in the matter of essential material and that of Argentina. He described conditions in Buenos Aires, which he has just visited, in glowing terms.

I think there is enough in what the Ambassador said to warrant a very careful re-examination of this whole situation with FEA.31

The Ambassador also spoke with considerable heat regarding the shipping situation. He stated that since the war the Argentine merchant marine had practically been created and developed until it is now of considerable importance. On the other hand, the Brazilian merchant marine has lost heavily due to submarine activity (the Ambassador mentioned the figure of 50 ships sunk) and the Brazilians have been unable to expect any additional ships from us. The Ambassador mentioned with further indignation the refusal of WSA32 recently to license the transfer of a 1000 ton vessel. On the other hand, the Brazilians with their desperate need for vessels both for foreign and domestic trade are being regaled with accounts of the tremendous performance of our shipbuilding industry. It seems to me that this, too, would bear looking into since with the present set-up in the other American republics Brazil is more than ever our main support and reliance.33

Philip W. Bonsal
  1. Addressed to the Special Adviser on the Other American Republics (Collado) and the Assistant Secretary of State (Acheson).↩
  2. Carlos Martins Pereira e Sousa.↩
  3. Foreign Economic Administration.↩
  4. War Shipping Administration.↩
  5. For the view of President Roosevelt on ships for Brazil, see his memorandum of January 12, p. 568.↩