The Ambassador in Brazil (Berle) to the Secretary of State
[Received 9:08 p.m.]
3321. Embassy has submitted to Foreign Office formal draft of its proposed notes regarding cancellation of tire and synthetic rubber agreements. Although substance of these notes had been accepted by Commission for Control of Washington Agreements,92 Minister of Finance and President Vargas, Foreign Office now anticipates a delay in exchange of notes owing to change in the Government. As a precautionary measure Foreign Office wishes to refer entire matter to the newly designated Minister of Finance93 and to President Linhares94 for their approval. New administration apparently regards with suspicion the acts of the Vargas administration during its last days. Unfortunately, our understanding on rubber and decree pursuant thereto were approved during closing hours of Vargas’ regime. Notwithstanding that no substantive objection to text of proposed notes is anticipated, a delay which may last several days or several weeks must be expected, owing to the confusion and the heavy agenda confronting the new Government. We are pressing for early action and have proposed that the notes be dated November 1 even though exchange cannot take place until later date. Text of draft notes being forwarded by despatch. Please inform RDC.