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  4. Document 135

561.333D3/4–2547

The Acting Secretary of State to the Embassy in Brazil

confidential
No. 656
Washington, April 25, 1947.

The Acting Secretary of State refers to the Minutes of the Interdepartmental Technical Committee on Coffee No. M1/47 dated March 25, 1947, the Minutes of the Inter-American Coffee Board Meeting No. 101 dated April 1, 1947, and a Working Outline, Draft Policy Recommendations of the Inter-American Coffee Board dated March 28, 1947,5 which have been forwarded to the Embassy under cover of transmittal slips from the International Resources Division.

It will be noted from the above referenced documents that discussions are proceeding both within this Government and in the Inter-American Coffee Board concerning the future of the Inter-American Coffee Agreement.

On April 16, 1947, the Inter-American Coffee Board’s Committee of Review, which was formed by the Board to review the Technical Coffee Study and make recommendations to the Board with respect to the future of the Agreement, met with the United States Trade Advisory Committee to the Board. The results of this meeting were: (1) The Committee of Review would not recommend the continuation of the Agreement with any quota provisions therein. (2) The Committee would make a complete study of all the aspects involved in continuing the present Agreement after deleting the quota provisions or formulating a new agreement along the lines suggested in alternative 3 of the Working Outline dated March 28, 1947.

This Government recognizes the importance which the American coffee producing countries attach to the Coffee Agreement but prefers to permit the Agreement to lapse on its expiration date, September 30, 1947. However, this Government is prepared to compromise [Page 157] its position and continue with an arrangement whereby this Government would indicate that it still maintains its interest in the coffee problems of the American coffee producing countries. This compromise, if necessary, must not include quotas. Any agreement reached should contain definite and worthwhile functions and create an effective organization with which to carry out these functions.

The Department requests that the Embassy transmit, if information can be obtained discreetly, any official or reliable information concerning the Brazilian Government’s attitude toward the future of the Inter-American Coffee Agreement. In addition, the Embassy’s comments would be appreciated with respect to the proposed positions of the United States regarding the future of the Agreement.

  1. None printed.↩