S/AE Files

The Ambassador in Brazil ( Berle ) to the Secretary of State

Sir: I have the honor to enclose herewith an original note dated at Rio de Janeiro on July 10, 1945,40 which is identical in tenor to a [Page 20] note of the same date delivered to the Brazilian Minister of Foreign Affairs and signed by me. The only difference between the notes is that that of the Brazilian Minister of Foreign Affairs is written in Portuguese whereas the Embassy’s note is written in English.

To each note there is attached duplicate original of the agreement referred to in the note, being a memorandum of agreement between the United States of Brazil and the United States of America, dated July 6, 1945 and signed for the Government of Brazil by Valentim Bouças and for the Government of the United States by Mr. S. M. McAshan, Jr.

In view of the special request for security, this despatch and its enclosure is being entrusted to John Lansdale, Jr., Colonel, United States Army, General Staff, who will act as special courier for its transmission. Because of the security arrangements, this Embassy is not retaining a copy of the memorandum, though it has retained a copy of the note.

Respectfully yours,

A. A. Berle, Jr.
[Enclosure]

The American Ambassador ( Berle ) to the Brazilian Minister for Foreign Affairs ( Velloso )

Excellency: I have the honor to inform Your Excellency that my Government agrees to the provisions of your note of this date to which is attached a duplicate original of a memorandum of agreement between our two Governments, dated July 6, 1945, signed on behalf of the United States by S. M. McAshan, Jr., and on behalf of Brazil by Valentim Bouças. The other duplicate original is attached hereto and made a part hereof.

This note and that of Your Excellency of today’s date and in similar language constitute an agreement between our two Governments, and that they, having regard for their mutual security, will hold the existence of this agreement in the strictest confidence.

I avail myself [etc.]

Adolf A. Berle, Jr.
[Subenclosure—Translation]41

Memorandum of Agreement Between the United States of Brazil and the United States of America

1.
This agreement between the Governments of the United States of Brazil and the United States of America shall be effective from 16th [Page 21] July 1945 and, following upon the initial period provided for in paragraph three, hereof, shall continue in effect for so long as the successive options provided for in paragraph five, hereof, shall be exercised and carried out by the Government of the United States.
2.
The Government of Brazil agrees to establish and maintain, during the whole time this agreement is in effect, restrictions on the export from Brazil of all grades of monazite sands or other carriers or compounds of thorium or of thorium, limiting the export of such materials to consignees in the United States or to other consignees designated or approved by the Government of the United States. All exports shall be from deep-water ports specified by the Government of Brazil.
3.
For an initial period of three years beginning 16th July 1945, the Government of the United States agrees to purchase, directly or through an agent, from the Government of Brazil or sellers in Brazil, not less than 3000 metric tons, dry weight, per year, if available, of monazite sands averaging not less than 6% thoria or the equivalent weight of thoria in other compounds; however, not more than 20% by weight of the shipments under this agreement each year shall contain less than 6% thoria, based on separate analysis for each shipment. It is intended that every effort shall be made to deliver the highest possible grade of monazite sands and that in no event will monazite sands of a grade of 6% thoria content or higher be mixed with lower grades. Purchases made by official and private buyers in the United States or by any others designated or approved by the Government of the United States shall be deducted from the total annual contractual obligations undertaken by the Government of the United States under this agreement, the Government of Brazil agreeing to keep a record of such purchases and to make such record available to the Government of the United States as requested.
4.
The price to be paid by the Government of the United States for monazite sands during the initial three year period shall be U.S. $22 per metric ton for monazite sands containing between 4% and 4.99% thoria; U.S. $31 per metric ton for monazite sands containing between 5% and 5.99% thoria; U.S. $40 per metric ton for monazite sands containing between 6% and 6.99% thoria; for monazite sands containing 7% or more thoria the price shall be U.S. $6.66 per 1% of thoria content per metric ton, all dry weight.
5.
The prices to be paid under this agreement represent delivery of the material f.o.b. carrier at Brazilian deep-water ports of export specified by the Government of Brazil. All export duties and all other taxes, if any, as well as warehouse charges and all other charges connected with placing the material on board carrier, including packaging in suitable containers, are to be for the account of the exporter [Page 22] and are included in the prices stipulated in this agreement. During the time this agreement is in effect the Government of Brazil will take steps to prevent the creation of new taxes, fees or other charges on the materials or the exportation thereof, or increases in taxes, fees or charges already in existence on the materials or the exportation thereof. It is further agreed that all contracts between the Government of the United States and the Government of Brazil or agencies thereof designated under the terms of this agreement shall follow the customary trade practices for a. provisional payments against ocean bills of lading in advance of final results of analysis and landed weights; and b. provisional payments against approved warehouse receipts for materials remaining unshipped thirty days after being made available for shipment at deep-water ports specified by the Government of Brazil, including the payment of storage charges after such thirty day period. The final payment of all invoices covering material purchased by the Government of the United States or its agents shall be based on landed net dry weights and independent analyses of the thoria content upon arrival at destination ports.
6.
The Government of Brazil agrees that the Government of the United States shall have ten successive options to extend this agreement for periods of three years each, provided that notice of the exercise of such option be given to the Government of Brazil six months prior to the expiration of each such period of three years. During the time this agreement is in effect the Government of the United States shall have the right to purchase all or any part of the monazite sands or other carriers or compounds of thorium or of thorium produced in Brazil subject to the right of the Government of Brazil to reserve such reasonable quantities of these materials as may be required for normal industrial applications within Brazil. The prices to be paid during each such three year period shall be mutually agreed upon at the beginning of each such period on a fair and equitable basis; provided, however, that the quantities to be purchased in each such three year period shall be not less than the amount provided for in paragraph three hereof; and, provided further, that the prices per 1% of thoria content per metric ton so to be agreed upon shall be not less than those then being paid by the Government of the United States to any other seller in any other producing country.
7.
In the event that the needs of the Government of the United States for monazite sands or other carriers or compounds of thorium become at any time such as to warrant a substantial increase in the production within Brazil of such materials, the Government of the United States agrees to furnish qualified geologists or other appropriate technical experts to collaborate with the appropriate authorities of the Government of Brazil in the survey, discovery and development of the production of these materials in Brazil. In order [Page 23] to assist the Government of the United States in determining the availability of these materials in Brazil, the Government of Brazil agrees from the date of this agreement to make freely available to duly accredited representatives of the Government of the United States all information concerning the existence and working of deposits of monazite sands or other carriers or compounds of thorium.
8.
In the event that after the initial period of three years provided for in paragraph three hereof, there is a continuing demand on the part of the Government of the United States for monazite sands or other carriers or compounds of thorium, the Government of the United States undertakes that in the meeting of that demand due regard will be given to the desirability of maintaining imports from Brazil of such materials on a basis which will be fair and non-discriminatory in relation to imports from other producing countries into the United States, taking into account all deliveries made under this agreement.
9.
The Government of the United States agrees to make available from time to time, if requested by the Government of Brazil, technical experts to facilitate and to advise on all measures of inspection and control which may be necessary to accomplish the purposes of this agreement.
10.
The Governments of the United States and Brazil reiterate their intention to use their best efforts to accomplish the purposes of this agreement and to that end shall adopt whatever measures may be desirable or necessary.

For the Government of the United States of Brazil
Valentim Bouças
C. Ext. C.C.A.W. 42

For the Government of the United States of America
S. M. McAshan, Jr.

[For documentation relating to discussions at the Conference of Berlin, July 16–August 2, 1945, concerning the projected use of the atomic bomb against Japan, see Conference of Berlin (Potsdam), volume II, index; entries under Japan, page 1623. For text of a statement by President Truman announcing the use of the bomb at Hiroshima, August 6, 1945, see Foreign Relations, 1945, volume VI, section under Japan entitled “Surrender of Japan …”, part I. For a narrative account of related events during July and August, see The New World, 1939/1946, pages 371–417.]

  1. Note from the Brazilian Minister for Foreign Affairs, not printed.
  2. Translation supplied by the editors.
  3. Portuguese abbreviation for: Executive Secretary of the Commission for the Control of the Washington Agreements.