The Secretary of State to the Embassy in Brazil
455. Reurtel 602 June 1 and Deptel 414 June 4, both concerning procedure for putting GATT into effect between US and Brazil and rendering inoperative existing US–Braz bilateral trade agreement.
On US part, Presidential Proclamation necessary make effective GATT concessions initially negotiated with Brazil which not yet in force. In view considerations Depcirtel May 28,1 Emb should again bring to attention Braz Govt importance of Brazil’s signing Protocol Provisional Application by June 30. Dept hopes Braz Govt can do this and instructions herein based on that assumption.2
Re procedure for rendering inoperative existing trade agreement, Dept after much consideration feels would be preferable accomplish this by exchange notes, as suggested Deptel June 4, and advisable effect exchange in Rio. In view short time before June 30, Chargé d’Affaires requested proceed at once make necessary arrangements.
Dept requests text US note be along following lines:
“Excellency: I have noted with pleasure that Govt of US of Brazil has signed today (or: on June —, 1948) Protocol Provisional Application [Page 401] of General Agreement Tariffs and Trade, dated Oct 30, 1947.
In this connection I have honor refer to conversations between representatives of Braz Govt and Govt of USA to Second Session Preparatory Committee UN Conference on Trade and Employment with respect to effect of entry into force of GATT between USA and US of Brazil upon Trade Agreement between our two Govts concluded 1935.
It is understanding of US Govt that it was then mutually agreed that the Trade Agreement between USA and US of Brazil signed Feb 2, 1935, except for those provisions of Art XIV thereof providing for termination upon six months’ notice, the notes exchanged Feb 2, 1935 to accompany that Agreement, and the Supplementary Agreement with accompanying exchange of notes, signed Apr 17, 1935, shall be inoperative for such time as USA and US of Brazil are both contracting parties to GATT, as defined Art XXXII that Agreement.
I shall be pleased receive Your Excellency’s confirmation of understanding set forth above.
Appropriate Braz authorities should be approached soonest for purpose obtaining their concurrence to procedure and proposed text. Text this Govts note similar that used at Geneva.
Although not essential, considered desirable Brazil sign Protocol same date notes exchanged and therefore requested this procedure be recommended Braz authorities.
If Braz Govt does not make counterproposals or substantive changes in notes, Chargé may proceed to signature without further authorization from Dept.
Upon exchange, Emb should forward Dept (1) signed original of Braz note, (2) certified copy of US note, indicating letterhead and signature. Emb should retain certified copy Braz note in its files.
Pls keep Dept informed all pertinent developments.