Foreign Relations of the United States, 1947, General; The United Nations, Volume I

Department of State Atomic Energy Files

Memorandum of Conversation, by Mr. Edmund A. Gullion, Special Assistant to the Under Secretary of State (Lovett)

top secret

[Washington,] July 22, 1947.

Subject: Brazilian Government’s Intention To Negotiate New Agreement with U.S. respecting procurement of Monazite.¹

Ambassador Pawley² asked me to call on him yesterday, just before his departure to Brazil. He informed me that prior to his leaving Brazil he had had a conference with President Dutra and some six members of the Cabinet, in which the disposition of Brazilian Monazite was discussed. The Brazilians indicated that they intended to ask for a new U.S.-Brazilian agreement, to replace the existing accord of July 16 [10], 1945, which has until July 16 [10], 1948 to run. It appeared that they wished especially to come to a new agreement on prices and on technical assistance to be made available to Brazil. The figure of $75 a ton was mentioned. Ambassador Pawley could not recall that any more specific indications were given with respect to this figure; i.e., as to what grade of ore or at what stage of processing it would apply. He said he would check this data.

I gathered that the meeting with the Brazilians was preliminary and that no definite request was made for opening of new negotiations.

The Ambassador stated that it was his firm opinion that our further interests in Brazil would be best served by a straight government to government negotiation. He had formed this conviction while looking the ground over since his conference with members of the Commission and the Department on the occasion of his last visit to Washington. He thought that small scale commercial dealings, such as had taken place over the past year, got nowhere.

I referred to the Ambassador’s statement in one of his telegrams, to the effect that any agreement concluded with the Brazilians would have to be ratified by the Brazilian Senate, and asked if this was the sense of the meeting which he held with members of the Brazilian Cabinet. The Ambassador said that this was the case. He didn’t know what the possibilities were for concluding a secret executive agreement, which I informed him would almost surely be a requirement on our part. The Ambassador said that he could answer this question more definitely when he knew just what kind of an agreement we wanted. He asked for further instructions as soon as possible.

. . . . . . . . . . . . . .

Finally, the Ambassador indicated that some sort of quid pro quo in the way of processing facilities would be required by Brazil. I said that the Department and the Commission had this under consideration. I pointed out that there could surely be a lot of counters on both sides in any negotiation—we might consider withholding aid, credits and assistance of various kinds as a means of pressure or of increasing them as inducement. The Brazilians in the UNAEC had indicated that they wished to reserve their rights, under any international scheme for the control of atomic energy, to say what amount of radioactive material they would make available to an international authority. This might be an indication of their attitude in any negotiations.

E. A. Gullion

1. A memorandum by Gullion to Lovett, July 31, transmitting the present paper, reads in part as follows:

   “Brazil and India are the principal suppliers of Monazite sands from which thorium is extracted. Under the auspices of the Combined Trust we have a procurement agreement with Brazil, in which the British have beneficial rights, and the British have an agreement with India and have undertaken to supply us from time to time with material from that source. As you know, Monazite contains other materials, besides thorium, of paramount interest to a number of domestic industries.

   “In this conversation Ambassador Pawley confirms for the first time our suspicion that Brazil wishes to discontinue the current agreement. For well over a year Brazil has shown little disposition to implement the agreement of July 16 [10], 1945 and the rare earth industries of this country have gotten practically no Monazite from any source, nor, of course, have we obtained thorium from Brazil. I am engaged with the Atomic Energy Commission in preparing the basis for some negotiations with Brazil.” (Department of State Atomic Energy Files)

2. William D. Pawley, United States Ambassador in Brazil.