The Ambassador in Brazil (Johnson) to the Secretary of State
813. For Assistant Secretary Miller. Mytel 811, Dec 26, 6 p. m.1 FonMin told me this afternoon with great apparent satisfaction of action taken Dec 22 by Natl Security Council in authorizing negots with US Govt agreements re supply strategic materials. He said slowness with which action in particular (1) monazite, (2) manganese, and (3) uranium,2 had progressed had been matter of great concern to him. Now he has been authorized by Pres to carry these negots to conclusion, he optimistic they may be entirely cleared up before end Jan. Final agreements will have be approved by Pres, but will not have again go through Security Council and bureaucratic machinery. Monazite he believes is capable particularly early action. He has already set up comite in FonOff to iron out remaining difficulties re urucum managanese contract and expects Gov Matto Grosso in Rio early next week. It probably state Matto Grosso’s desire for larger royalties will be made at expense Chama brothers. Difficulties purely of internal order and FonMin stated no objection had been voiced in any quarter to US obtaining supplies manganese required. Prices all these commodities he indicated wld be matter for negot.
At mtg this afternoon FonMin again reiterated it was desire Pres Vargas himself and admin in gen to “go along” with US in all these questions. He deplored ponderous nature Braz bureaucracy and said he felt SAT’s clearance for action by Security Council wld greatly facilitate progress. At Security Council mtg MinFin Lafer spoke in support his proposal.