811.5017/7–846: Airgram

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

A–478. Reference is made to the Department’s telegram No. 920, July 10, 7 p.m.52 and the Embassy’s telegram No. 1229, July 8, 7 p.m. concerning the understanding between the Brazilian Government and the U.S. Government for coffee commitments. The coffee stock position in the U.S. appears favorable. The unofficial report of imports of coffee into the U.S. during the month of June is 2,289,430 bags. The estimated number of bags roasted during the month of June is 1,600,000 bags. The U.S. Army has declared surplus 700,000 bags of coffee of which 500,000 are Brazilian coffees (reference Department’s telegram No. 503, April 17, 11 a.m.52). Brazilian Embassy requested the U.S. Government to withhold the sale of Brazilian coffees which were surplus in the U.S. Army stocks until after June 30, 1946.

Therefore with the increase of stocks resulting from large imports in the month of June and future sale of Army surplus stock, U.S. supplies can be estimated at approximately 5 million bags. For this reason it is not necessary to request the Brazilian Government at this time to make available government controlled coffee to the U.S. market.

The Department will keep the Embassy advised in regard to any developments concerning control of coffee in the U.S. and will advise the official figures concerning U.S. coffee stocks and roastings when they are available. The Department of Agriculture advises that purchases of coffee from all sources from June 25 through June 30 amount to over 1 million bags. There is still in existence Coffee Inventory Control Order WFO 146 which limits U.S. importers to 1 month’s stock and U. S. roasters to a 4 month’s stock. Copy to AmEmbassy Bogotá.

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