811.5017/6–546

Memorandum by the Assistant Chief of the Division of Brazilian Affairs ( Braddock ) to the Assistant Secretary of State ( Braden )

Mr. Cale and Mr. Havemeyer of IR saw Mr. Brownlee, Deputy Director of OES, this morning, who told them that Mr. Bowles had said definitely that he would not take any action at this time to increase coffee ceilings by more than three cents unless he were ordered to do so by the President.

Incidentally, IR points out that if a proportional increase were considered rather than a flat increase, 30 percent would give the Brazilians an average increase of only about 3.6 cents per pound. It would take a 40 percent increase to bring Brazilian coffees up to the neighborhood of five cents per pound increase.

Daniel M. Braddock