Foreign Relations of the United States, 1951, The United Nations; The Western Hemisphere, Volume II

832.2546/6–1351

The Ambassador in Brazil (Johnson) to the Brazilian Minister for Foreign Affairs (Neves da Fontoura)¹

confidential
No. 493

Rio de Janeiro, June 11, 1951.

Excellency: I have the honor to inform Your Excellency that my Government has accepted the recommendations set forth in the attached aide-mémoire in reference to the purchase of monazite and products derived from monazite which are produced in Brazil. The text of this aide-mémoire was prepared in Washington and sent to the American Embassy in Bio de Janeiro by the Department of State.

Upon receipt of a note from Your Excellency indicating that the Government of the United States of Brazil also accepts the recommendations to supply the quantities of monazite and products of monazite specified in the accompanying aide-mémoire, the Government of the United States of America will undertake to negotiate a purchase contract for the cited materials.

Please accept [etc.]

Herschel V. Johnson

[Enclosure]

The United States Embassy in Brazil to the Brazilian Ministry of Foreign Affairs

confidential

Aide-mémoire of conversations

held April 2nd, 4th, 5th and 10th, 1951² between representatives of Brazil and the United States regarding procurement by the United States of monazite and monazite products from Brazil for the emergency needs of the defense effort.

The representatives of both countries gave careful consideration in these conversations not only to the urgent needs of the defense effort, but also in particular to Brazil’s future needs and to the importance of developing in Brazil a Brazilian industry for increased processing of crude monazite into its various components as part of the program for the industrialization of Brazil.

As a result of these conversations the representatives agreed to recommend to their respective governments for consideration the following proposals:

a. The Government of the United States and the Government of Brazil would enter into an agreement, for a term of three years from its inception, under which Brazil would sell and the United States would buy monazite and monazite products produced and processed in Brazil in accordance with prices, specifications and schedules of shipment to be set forth in such agreement.

b. In order to further the policy of Brazil of encouraging industrialization, the United States would during the term of this agreement purchase from Brazil all of its output of thorium salts and from Brazilian industry all of its output of rare earth chlorides up to an annual amount of 2,500 tons; it being understood that if Brazilian industry is able to produce additional monazite products the United States will purchase such additional products produced during the period of the agreement to the extent that such products are necessary to the defense effort and meet the specifications of the United States; it being also Understood that if Brazilian industry is able to produce more than 2,500 tons of rare earth chlorides during any year of such agreement the United States will purchase such additional output to the extent that it is necessary for the defense effort.

c. In order to meet the urgent needs of the defense effort Brazil will use its best efforts, and the United States will use its best efforts to assist Brazil, to increase the production of crude monazite so as to make available the raw material required by the processing industry of Brazil and in addition to supply to the United States for the emergency needs of defense during each of the three years of the agreement up to 2,500 tons of crude monazite; it being understood that Brazil will sell to the United States 2,500 tons of crude monazite during each of the three years of the agreement subject only to Brazil’s inability, with the full assistance of the United States, to produce that quantity of crude monazite over and above the requirements of Brazil’s industry for processing under the agreement.

d. The United States and Brazil will promptly explore ways in which production of crude monazite in Brazil and the processing of monazite by Brazilian industry may be increased with the assistance of the United States in order to promote the industrialization of Brazil, aid in the defense effort and carry out the purposes of the agreement.

e. If an agreement setting forth these proposals is acceptable to Brazil, negotiation of its terms in detail and its execution by the respective governments will be concluded without delay.³

April 10, 1951.

1. Enclosure to despatch 1854, from Rio de Janeiro, June 13, 1951, which is not printed (832.2546/6–1351).
2. These conversations took place in Washington.
3. In a memorandum to Ambassador Johnson, dated June 19, 1951, the Chief of the Economic and Consular Department of the Brazilian Foreign Ministry (Bueno do Prado) stated in part that the proposals contained in the aide-mémoire were acceptable in principle to Brazil, and he requested the United States to indicate in detail the type of assistance it was prepared to give to increase production of raw monazite and to develop the industrial processing of this product in Brazil, This memorandum is enclosure No. 1 to despatch 1932, from Rio de Janeiro, June 22, 1951, not printed (832.2546/6–2251).