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

Department of State Atomic Energy Files

Memorandum by the Under Secretary of State (Lovett) to the Secretary of State

top secret

[Washington,] August 11, 1947.

Subject: Negotiations with Brazil for Procurement of Monazite Sands Containing Thorium

After India, Brazil is the second most important supplier of monazite sands from which thorium is produced. Thorium, in conjunction with uranium, will support a chain reaction and recent advances in atomic science indicate increasing importance for thorium.

The United States has a secret agreement with the Brazilian Government, dated July 16 [10], 1945, which unless renewed will expire on the same day in 1948, which provides for the purchase of 3,000 tons per year, if available, of monazite sands (a copy is in the files of our Embassy at Rio). Hitherto, purchases in Brazil have been accomplished by US private industrial firms interested in components of sands other than monazite. The thorium content is then turned over to the AEC in this country. The execution of the agreement has been very unsatisfactory in that deliveries, about 1,000 tons annually, have been made only after numerous delays. The Department and the Atomic Energy Commission are “now of the opinion that best results can only be secured by a government-to-government negotiation, although operations in Brazil might be carried on by commercial agents as heretofore. The Brazilians have notified our Ambassador, informally, that they wish to negotiate a new agreement.

If during your stay in Rio de Janeiro¹ the Brazilians should make any inquiries to you, it is recommended that you:

a) Indicate that although Brazil is not the only source of monazite, the United States considers agreement between United States and Brazil as to its procurement as one of the most important points in United States-Brazil relations;

b) Although you are not in a position to discuss details, you believe this government would shortly be prepared to negotiate for procurement of monazite. You understand that the existing agreement is unsatisfactory in a number of respects and that not much monazite has been forthcoming.

c) The United States is, of course, prepared to consider some adjustments in price and in other concessions but hopes that the subject can be looked upon as one bound up with the common security of Brazil and the United States and that petty commercial considerations will have relatively little place in it.

d) It is your belief that the interests of both Brazil and the United States would be best served by increased deliveries to this country. So far as thorium goes, you understand that it could only be used, for atomic energy purposes, in conjunction with considerable quantities of uranium and by countries disposing of a vast industrial plant and financial facilities.

If the Brazilians wish to make formal proposal for negotiations, it is suggested that you refer them to the United States Ambassador, who is informed.

Robert Lovett

1. Secretary Marshall served as Chairman of the United States Delegation to the Inter-American Conference for the Maintenance of Continental Peace and Security, August 15–September 2; for documentation on United States participation in that conference, see vol. viii, pp. 1 ff.