The Ambassador in Brazil (Johnson) to the Secretary of State
786. During call on Foreign Minister yesterday evening he mentioned that Embassy’s note of July 121 incorporating substance of Deptel 511 July 92 had been brought to his personal attention and that after studying it and the Foreign Office file it was evident that a misunderstanding had arisen owing to failure of his assistants accurately to incorporate his directives in the draft of proposed new agreement. He stated, for example, that there was no intention to permit exportation monazite sands to other foreign powers. Consequently our apprehensions in this respect, though they might be justified on basis [Page 733] of new proposed agreement, were in fact without basis. Fernandes indicated accordingly it would be necessary to revise draft agreement and resubmit it to us together with reply to our note above mentioned which he hoped might be accomplished within next few days. He added that during interim period pending conclusion of a new agreement the present agreement, although lapsing July 16, would be considered still in effect.