560.AL/7–2847: Telegram

The Consul at Geneva (Troutman) to the Secretary of State

us urgent

781. FrITO 153. Deptel 891, to ITO 152.88a Clayton discussed problem exhaustively with Brazilians today. They were adamant and although agreeing to delay for a week formal presentation of case to full conference until Washington and Rio could be consulted, will submit matter to small subcommission tomorrow. This may allow Embassy Rio approach to Foreign Office to have some effect but we are not hopeful. Brazilians say their instruction specific and positive and [no?] possibility of change and they are already late in complying. We will attempt here to work out some technical device to solve problem and would appreciate suggestions but Brazilians appear unwilling [Page 430] to consider any method by which for example increases might be stated in ad valorem terms.

Until agreement was finally reached for week delay firm Brazilian position as that they could not make any trade agreements here and might withdraw delegate if not allowed to take action desired and Clayton said if pressed for answer today it would have to be no. Comments on political aspects would be helpful.

Sent Department 781, repeated Rio. [ITO.]

  1. Supra.