832.24/7–846: Telegram
The Ambassador in Brazil (Pawley) to the Secretary of State
[Received 6:50 p.m.]
1225. FLC agent General Miller offered dispose surplus property located on and in vicinity air bases Brazil $8,000,000. General Fiuza De Castro made counter proposal $6,000,000. General Miller explained $8,000,000 lowest price or must be sold publicly.
I discussed matter with President Dutra, who accepted $8,000,000 offer.
General Miller signed contract July 5 for disposal this equipment, omitting real estate clause at request General Fiuza and without prior [Page 452] consultation with me (Department’s telegram 898, July 2, 6 p.m.50). Does Department feel it desirable I call on President Dutra with request real estate clause be reinstated? General Miller states that General Fiuza’s reasons for omitting clause were political and internal.
General Miller informed me 12,000,000 credit granted Brazil for purchase of surplus. He states that Colonel Macedo Soares is requesting permission from President Dutra to utilize $4,000,000 remaining credit for purchase of surplus machinery in Pacific and in Europe. If this $4,000,000 transaction is authorized by US and Brazil, Department might be able to include real estate purchase clause in this portion of contract.
- Not printed.↩