811.5017/7–846: Telegram

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

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1229. Minister of Finance Vidigal in talking to John Naumann, representative National Coffee Association, said that in current liquidation of DNC, liquidation of its assets, including coffee stocks, must necessarily take place. Furthermore, in event of possible coffee shortage in United States Minister said it would be in Brazil’s interest to maintain its position in that important market. Avoiding definite commitment to sell DNC stocks he clearly gave impression that such move was contemplated because of foregoing considerations, but he did not give indication when actual sales DNC stocks would commence.

Embassy assumes that termination OPA cancels Brazil’s commitment to sell 3 million bags (reDeptel 888, June 29, 1946). Nevertheless, [Page 520] it appears probable Brazil will under certain conditions sell some or all of these stocks, and accordingly suggest Embassy be promptly informed if stocks of coffee in United States reach dangerously low level so that request to release stocks may be made officially as matter of mutual convenience even in absence of any commitment.51

Pawley
  1. In telegram 920, July 10, 1946, 7 p.m., to Rio de Janeiro, the Acting Secretary of State indicated that in case the Office of Price Administration were revived the interim termination would not cancel Brazil’s commitments. It was not anticipated that the United States would request the release of Government stocks of coffee. The Acting Secretary advised that discussions on coffee commitments be deferred. (811.5017/7–846)