811.5017/10–2545: Telegram

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

2609. Extensive and the most serious consideration at highest levels has been given to Urtel 3225, Oct 25 transmitting the Brazilian counter-proposal to conditional offer made in Deptel 2440, Oct 13 concerning coffee. After extensive deliberation this morning in Judge Collett’s67 office with several Cabinet members participating, it was decided necessary to instruct you to inform appropriate Brazilian authorities we must reject their counter-proposal. The counter-proposal, of course, constituted a rejection of our earlier conditional proposal and it is not possible at this time to repeat that offer.

For your secret information, it is likely that a solution to the coffee price problem will be forthcoming within a few days but this will have to be in the light of all facts on unilateral basis on our part and cannot be as generous as Brazil hopes. However, in your conversations with the Brazilian authorities, it is preferable that you limit yourself to saying the matter is still being considered at the highest levels here and that, while no assurances can be given, you are still hopeful that something can be done.

  1. Judge J. C. Collett, Director, Office of Economic Stabilization.