832.24/4–946: Telegram

The Chargé in Brazil ( Daniels ) to the Secretary of State

662. ReEmbstel 628, April 3, 7 p.m.18 This morning Gracie19 informed me of FonMin’s urgent and reiterated desire that Brazil be permitted to ship as soon as possible to Argentina 1,500 to 2,000 tons crude rubber to facilitate immediate shipment urgently needed wheat from Argentina to Brazil. Embassy reiterates recommendation transmitted its telegram 628 and hopes prompt authorization will be telegraphed permitting such shipment rubber without further negotiations or conditions. Effect would be most favorable in Brazil and presumably Argentina.

Gracie reiterated desire of Brazilian Govt to maintain 1942 agreement indicating proposed export rubber to Argentina would be exception and outside terms that agreement. He added that Brazilian Govt accepted proposals contained in Embassy’s memo March 26 embodying substance Dept’s recent telegram on rubber policy. Major point he stressed was simply immediate agreement on part of US that shipment of 1,500–2,000 tons crude rubber be permitted without prejudice to other agreements.

Argentine Minister of Commerce and Industry, Sauri plans to return to Buenos Aires tomorrow Gracie said. No specific agreement has been reached between him and Brazilian Govt other than mutual expression of good will to furnish wheat and rubber respectively. If no such arrangement is consummated and if both Brazil and Argentina publicly express their desire to conclude such transaction or regrets that it was impossible US will be holding the bag in so far as public opinion is concerned.

Repeated to Buenos Aires.

  1. See footnote 15, p. 124.
  2. Samuel de Souza-Leão Gracie, Secretary General of the Brazilian Foreign Office.