The Secretary of State to the Ambassador in Brazil (Berle)
1002. Francis A. Truslow, President of RDC, left Washington by air on 17th, expecting to arrive Rio de Janeiro afternoon of 20th, to initiate discussion with Brazilian authorities on procedures for integrating Argentina into the rubber and rubber product quota and supply system of the American Republics.
He plans to seek Brazilian consent to the shipment from Brazil to Argentina of minimum annual quantities of natural rubber, perhaps 250 tons, which would be in addition to the 250 tons Argentina receives annually from Bolivia, and to the shipment from the United States to Argentina of synthetic rubber in the amounts necessary to be used with the total natural rubber available to Argentina. He is prepared, if necessary, to agree to the early shipment of a small quantity of Brazilian tires to Argentina to meet Argentine needs until tire production from the above mentioned raw materials starts.[Page 704]
It is hoped that Truslow will be able to obtain Brazilian consent to shipments from Belem to Buenos Aires by RDC, but it may be necessary to permit the shipments to be made by Brazil. In any event, it is hoped that the selling price to Argentina will accord with the schedule of prices applicable in sales of rubber by Brazil to RDC.
The quantities mentioned are, of course, tentative since final determination of the amounts to be discussed subsequently with Argentina can be made only after the Brazilian reaction to the proposed scheme is assessed. The entire scheme will, of course, be subject to such amendments as may prove in discussions with Brazil and Argentina to be necessary.
Following the conclusion of his discussions in Rio de Janeiro, Truslow will proceed to Buenos Aires to assist American authorities there in connection with discussions with the Argentine authorities.
It will be absolutely essential that the Argentine Government pledge itself to take effective steps in the conservation of rubber and in control of rubber trade and manufacturing, limiting permissible manufacture as nearly as possible to the range of products embodied in Rubber Order R–1 amended. As regards component raw materials other than natural and synthetic rubber, the United States authorities can only assure Argentina that they will use their best efforts to assure minimum essential supplies, since carbon black, tire cord and fabric etc. are in extremely short supply and under the strictest international allocation.
The Embassy is requested, if it perceives no serious objection, to lend Truslow every assistance in reaching a speedy and mutually satisfactory conclusion within the above framework in the discussions with the Brazilian authorities. Any substantial alterations should be referred to Washington for appropriate clearance.
Sent to Rio de Janeiro; repeated to Buenos Aires and La Paz for information.