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

No. 14206

Sir: I have the honor to report that the American Chambers of Commerce in Rio de Janeiro and São Paulo have jointly and formally requested the discontinuance of the Decentralization Plan,48 as evidenced by the attached self-explanatory copies of a letter just received by the Embassy.49 The Chambers’ detailed views, as expressed in their letter of December 6, 1943, are attached to the Embassy’s Despatches numbers 13975 of December 24 and 14036 of December 30, 1943.50

In the above connection, Mr. Stephen Danforth, past President of the Chamber and a leading business man in Brazil, is now in the United States. The latter gentleman will receive a copy of the Chambers’ present request and will endeavor to enlist the support of the United States Chamber of Commerce, the National Foreign Trade Council, and other export associations. If in agreement, these groups will then appeal directly to Washington agencies.

With reference to the foregoing, the Embassy has drafted a proposed note to the Ministry of Foreign Affairs suggesting the elimination of the Decentralization Plan and other controls which have become burdensome to the commerce and industry of the United States and Brazil, and copies thereof are attached.49

The Embassy is of the opinion that normal trade relations between Brazilian importers and American suppliers should be resumed at [Page 651] once, the importers simply placing their orders with the suppliers for delivery when possible, with all questions involving quotas, allocations, etc., being handled directly with the American exporters by the Foreign Economic Administration in Washington. The former would handle exports through their customary sales outlets here, and thus resume normal peacetime trade channels. Any other controls thought to be temporarily necessary, such as consignee control, could be handled in conjunction with the Statements of Cargo Availability in Washington.

The Embassy and the Special Representative of the Foreign Economic Administration in Rio de Janeiro,51 are in entire agreement with the recommendations of the American Chambers of Commerce in Brazil, as evidenced by the proposed note to the Ministry of Foreign Affairs, which the Embassy trusts will meet with the approval of the Department.

Respectfully yours,

For the Chargé d’Affaires ad interim:
Walter J. Donnelly

Counselor of Embassy for Economic Affairs
  1. See Foreign Relations, 1943, vol. v, pp. 106 ff.
  2. Not printed.
  3. None printed.
  4. Not printed.
  5. Presumably Hubert C. Winans.