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

No. 6841

Sir: I enclose for your confidential information and files a copy of a note of even date sent to the Brazilian Embassy in Washington, together with a copy of Statement LL–362 prepared by the Foreign Economic Administration, showing charges made against the Government of Brazil for the period from July 1 through November 30, 1944 covering defense articles transferred in accordance with the terms of the Lend-Lease Agreement signed on March 3, 194263 by representatives of this Government and the Government of the United States of Brazil.

In this connection, reference is made to the Department’s note to the Brazilian Embassy dated December 16, 1942 (a copy of which was enclosed with the Department’s confidential instruction no. 5987 dated May 31, 1944)64 in which the suggestion was made that any payments on account by the Government of Brazil await the presentation of schedules of articles transferred by this Government under the Lend-Lease Agreement of March 3, 1942.

Accordingly, the Department’s note of May 31, 1944 to the Brazilian Embassy in Washington65 transmitted Statement LL–1 and requested the payment on account of $23,333,333.33 which became due and payable on January 1, 1944 (Department’s confidential instruction no. 5987, May 31, 1944). This same request was repeated in the Department’s note to the Brazilian Embassy which transmitted Statement LL–2 and supporting schedules (Department’s confidential airmail instruction no. 6436 dated October 4, 194466). Reference is also made to the Embassy’s confidential despatch no. 18317 October 13, 1944, the Department’s secret airgram no. A–1440 November 1, 1944, [Page 639] and the Embassy’s reply, restricted airgram no. A–2122 November 13, 1944.67

To date, no payment on account has been received from the Government of Brazil, nor has any indication been received concerning when a reimbursement may be expected.

There is also enclosed a copy of the Department’s confidential note of January 17, 1945 to the Brazilian Ambassador in Washington.68 You will notice that this Government proposes an additional Lend-Lease Agreement with Brazil, entirely separate from the Agreement of March 3, 1942. The purpose of this proposed Agreement is (1) to insure that no limitations of a financial or other nature may restrict the furnishing of defense articles, defense services and defense information by this Government to the Brazilian Expeditionary Forces or impede its effective operations, and (2) to facilitate the transfer of defense aid to the Brazilian Expeditionary Forces on location in the theatres of war. This proposal has been referred to the Brazilian Government, according to a recent communication received from the Embassy in Washington.

In view of the situation described above, as well as the contents of the enclosed note of even date concerning Statement LL–3, you are requested to discreetly approach the appropriate Brazilian authorities at your earliest opportunity regarding the payment on account of the sum of $35,000,000 which became due as of January 1, 1945 in accordance with the terms stipulated in Article III of the Lend-Lease Agreement. You should make it clear that irrespective of the response which may be made to the Department’s note of January 17, 1945, the sum of $35,000,000 is now due since no reimbursement payments have been made to date by Brazil.

For your information in connection with the desire of this Government that Brazil effect the payment requested, you are informed that several of the other American republics with which this Government has Lend-Lease Agreements have already made payments on their respective accounts, of which some are current. Moreover, you are requested to inform the appropriate officials that the Government of the United States will continue to maintain the policy of requiring reimbursement payments for matériel transferred under the terms of the respective Lend-Lease Agreements which it has signed with the various other American republics.

The payment on account of the sum of $35,000,000 should be effected by the Government of Brazil in the form of a check made payable to the order of the “Treasurer of the United States, For the Account of [Page 640] the Foreign Economic Administration” which should be sent to the Department for appropriate disposition.

Very truly yours,

For the Secretary of State:
William L. Clayton
  1. Neither printed.
  2. For draft text of basic agreement on lend-lease, applicable generally to Latin America, see Foreign Relations, 1941, vol. vi, p. 138. For text of Agreement with Brazil, signed on March 3, 1942, see ibid., 1942, vol. v, p. 815.
  3. Neither printed.
  4. Foreign Relations, 1944, vol. vii, p. 581.
  5. Not printed.
  6. None printed.
  7. Not printed.