The Chargé in Brazil (Donnelly) to the Secretary of State
[Received 5:55 p.m.]
4520. Department’s instruction No. 6511 of October 26, Embtel No. 4418 of December 12 and despatch No. 19230 of December 19.74 Velloso75 today referred to the Embassy’s note on the proposed import control law and requested my views on how to solve the problems of (1) providing reasonable protection for certain new industries and (2) of preventing the “dumping” of foreign merchandise in Brazil. I reiterated that the proposed import control law would violate the reciprocal trade agreement, and said that with respect to the other points, I would consult the Department.
He suggested that the two Governments undertake to review the trade agreement with a view to reaching an understanding on amendments to the agreement which might be in the best interests of both countries.
Velloso then requested my opinion as to whether or not the United States cotton subsidy program violated the trade agreement. I told him that I thought it did not because cotton is not specifically included in the agreement, but that in any event I would refer his inquiry to the Department.