811.24532/2–2746: Telegram

The Chargé in Brazil ( Daniels ) to the Secretary of State

confidential

421. South Atlantic Wing Air Transport Command and Rio office Foreign Liquidation Commissioner have reached following agreement [Page 437] with approval of Embassy and General Gates of Joint Brazilian-US Military Commission:

1.
ATC will not declare surplus (a) any fixed installations (b) plumbing, lighting or other fixtures in fixed installations or (c) any movable property considered essential to operate strategic air bases within meaning air base agreement.
2.
All property which ATC does declare surplus can be freely sold by Foreign Liquidation Commissioner to Brazilian Govt or other purchasers.

Above arrangement based on understanding here that War Dept will agree to direct transfers of fixed installations and strategic movable property by War Dept without participation Foreign Liquidation Commissioner. Please confirm that this understanding is correct. FLC justifiably anxious to avoid last minute surplus declarations (as in case of Salinas) followed by immediate transfer to Brazilian Govt, thus placing responsibility on Commission without affording it adequate opportunity to assemble necessary documentary records and form judgment on advisability of transfer.

Meanwhile naval operating base Rio has declared direction finder station at Belem and is in process of declaring second station at Bahia upon basis instructions received from Chief Naval Operations Washington. FLC has returned this surplus declaration to Navy for [apparent omission]. However all concerned here feel that these naval stations should not be declared surplus but should be handled on same basis as army fixed installations with letter from Secretary State to Navy authorizing Navy to make direct transfer. If Dept agrees we assume necessary action will be taken Washington.20

Daniels
  1. In telegram 297, March 1, 1946, 8 p.m., the Department advised the Chargé that representatives of the War and State Departments and of the Foreign Liquidation Commissioner had reached an agreement substantially along the lines indicated above (811.24532/2–2746).