S/AE Files
The Ambassador in Brazil (Berle) to the Secretary of State
Rio de Janeiro, July 10,
1945.
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,
[Enclosure]
The American Ambassador (Berle) to
the Brazilian Minister for Foreign Affairs (Velloso)
Rio de Janeiro, July 10,
1945.
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.]
[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
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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
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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
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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.
Rio de Janeiro,
6th July
1945
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.]
