The Secretary of State to the Embassy in Brazil
550. Dept has been giving further study questions raised by exchange notes (Deptels 455 June 21, 497 July 7 and urtel July 101).
Notes provide termination existing bilateral trade agreement at time Brazil becomes Contracting Party GATT. According Protocol Provisional Application GATT Brazil Contracting Party no later than July 31 and Presidential Proclamation issued here July 15 makes US rates negotiated Brazil effective former date. Dept not perturbed [Page 402] over one day time lag caused by Braz project of law specifying Aug 1 as effective date GATT. Dept concerned about ambiguous and confusing situation re Braz tariff rates and possibly greatly increased tariff rates which would confront US exporters in event exchange notes terminating existing agreement July 31 consummated but Braz Congress fails ratify GATT by Aug 1.
If in Embs opinion any danger GATT will not be ratified until several days or longer beyond July 31 Emb is requested discreetly suggest to Braz authorities completion of exchange notes be deferred until ratification GATT by Braz Congress.
Presidential Proclamation terminating Proclamation of 1935 agreement being withheld pending receipt your telegraphic comments on present situation and foregoing.
- Telegrams 497 and 763 not printed.↩