832.5017/10–2245: Telegram

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

2490. For Daniels from Sellon. Hope you get favorable reply Souza Costa by Wednesday. However, Dept and OPA agree that, if no agreement in principle can be reached by close of business Thursday October 25 or if no reasonable counter proposal is made by that time, our proposal should be withdrawn at that time. Daniels is instructed to make best possible bargaining use of this fact in talking with Souza Costa.

If it is necessary to withdraw our proposal at close Thursday, our present plan is to write letter immediately to Coffee Board indicating steps Dept has taken to try to arrange price stabilization plan and indicating we believe it was equitable proposal. This would be read to Board but not be made available for publication in any way. [Sellon.]