832.24/8–846: Telegram

The Acting Secretary of State to the Ambassador in Brazil (Pawley)

secret

1065. Re B.A.’s tel 1959, Aug. 3.41 Dept interprets tripartite agreement as not requiring consultation with Braz on each tire shipment to Arg. Clearing each request with Braz delays necessary shipments and hampers US normal commercial relationship with Arg. Dept and OIT getting irresistible pressure from private trade and Congress on tire restrictions affecting only Arg.

Tripartite agreement was never intended to withhold rubber and tires from Arg. Originated to supply Arg. essential rubber needs thereby preventing smuggling.

US repeatedly has requested Braz’s concurrence in cancelling tripartite agreement. Emb Rio requested to continue pressing Brazil for (1) immediate approval for licensing tires to Arg. on same basis as other American Republics (2) concurrence in cancelling tripartite agreement soonest with waiver 90-day termination clause.

If such arrangements cannot be finalized within fortnight Dept would consider as matter expediency (subject US supply position and approval OIT) requesting Braz’s approval for tires mentioned B.A.’s tel 1959. If requested by Braz., US willing permit Braz supply part these tires.

Dept not opposed Arg Govt independent approach to Braz for cancellation tripartite agreement and shipment tires requested tel 1959. Sent to Rio de Janeiro; repeated to Buenos Aires.

Acheson
  1. Not printed.