Memorandum of Conversation, by Mr. J. K. Havemeyer of the International Resources Division

Participants: Ambassador Carlos Martins, Brazil
Mr. Garcia, Brazilian Embassy
Mr. J. K. Havemeyer, State

On Saturday, September 28, I presented a note signed by Mr. Clayton, dated September 28,55 requesting the Brazilian Government to place 500 thousand bags of coffee on the market during the month of October 1946. After reading the note Mr. Garcia stated that our stocks were quite large on August 31, 1946 and that this should be over a three months’ supply. I stated that in view of the increase in coffee demand in the fall of the year and because the United States is consuming approximately 26% more coffee this calendar year, stocks on August 31 represent a little over two months’ supply and therefore with an expected deterioration in stock as of September 30 there will be two months’ or less stock in the U.S.

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Ambassador Martins said he would transmit the Memorandum to the Brazilian Government immediately.56

  1. Not printed; William L. Clayton was Assistant Secretary of State for Economic Affairs.
  2. Telegram 1698, October 3, 1946, from Rio de Janeiro, reported that the coffee was in Santos warehouses and “readied for offer to exporters on receipt instructions.” (832.61333/10–346)