800.8830 Coal/350: Airgram
The Secretary of State to the Chargé in Brazil (Simmons)
A–86. The Embassy’s report of a conversation with Aranha34 concerning Brazilian coal shipments to Argentina as reported in your [Page 645] telegram No. 64 of January 6, 7 p.m.35 has caused the Department some concern. The Embassy is already in receipt of airmail instruction No. A–45 of January 12, 1944 (from FEA for Rich)36 requesting a resurvey of the coal and coke requirements of Brazil.
Coal presents the United States not only with a shipping problem at this time but with a serious supply problem. The coal mining situation is such that coal shortages have developed in various sections in the United States and every ton licensed for export must have the prior approval of the Secretary of the Interior Office of Solid Fuel Administrator which most carefully examines from what mines near seaboard the supply can be drawn without causing an even greater dislocation than now exists. The war agencies are well aware that at the insistent request of the Brazilian Government coal mining machinery and equipment were sent to Brazil in order to increase coal production for national consumption. Presumably it is now contemplated that this equipment shall be used for the production of coal to be exported to Argentina. This contemplated move on the part of Brazil will most certainly be looked upon very unfavorably by the coal export control authorities here when at the same time sacrifices are being made both in supply and shipping to provide coal to Brazil from the United States and from South Africa. Furthermore, the Department feels, in view of the Argentine situation, that it would strike a most discordant note in Allied unity if Brazil should facilitate the export of coal to Argentina at this time.
Aranha’s contention that there is no foreign or Brazilian coastwise shipping available for the transportation of coal from the Santa Catarina coastal district to the areas of industrial consumption is being investigated at this end. At the same time it would be appreciated if the Embassy could investigate the shipping situation from the Brazilian side and inform the Department whether this contention is well based.