Office of the Historian

133. Telegram 111035 From the Department of State to the Embassy in Brazil1

Washington, May 8, 1976, 0028Z.

111035. Subject: Letter From the Secretary to Brazilian Foreign Minister Silveira.

1. Please deliver following letter to Foreign Minister Silveira from the Secretary.

2. Begin text: Dear Antonio: I am delighted that we need not be further preoccupied by the concerns you expressed in your last two letters regarding the outcome of the escape clause action on shoes. Since I was unable to give you the good news of the President’s decision myself, I asked Bill Rogers to call you on my behalf. He has told me that you are happy with the outcome which, by the way, reflected my own strong recommendations.

3. Our governments are now in a position to discuss in concrete terms the relationship between adjustment assistance and a waiver of the countervailing duty on footwear. I defer to Bill Simon and his experts on this subject, but in light of the adjustment assistance route, I doubt that a waiver can be legally granted unless your government modifies current export incentives for footwear.

4. On another subject, it was gratifying to learn from Ambassador Crimmins of your personal support for the establishment of a U.S. Trade Center in Sâo Paulo. I share your view that your government’s decision should rest on its merits, not on unrelated trade issues. I have no doubt that the center would serve the interests of both our economies. It would stimulate the flow of capital equipment Brazil will need to support its development priorities; it would also encourage direct investment by U.S. firms previously unfamiliar with your country’s burgeoning markets. To operate effectively, the center will need import facilities similar to those enjoyed by Brazilian firms participating [Page 372] in numerous trade fairs held each year in the United States. I hope that your government can see its way clear to approve this proposal.

5. Antonio, I think the way is now clear for real progress in addressing our outstanding trade problems. The next major step in that direction is Bill Simon’s visit to Brazil. I know you share my hope that his consultations there will lead to the kind of tangible results we both had in mind when signing the Memorandum of Understanding two months ago. Warm regards, Henry A. Kissinger. End text.

Sisco

  1. Summary: In a letter to Silveira, Kissinger discussed the possibility of a waiver of a countervailing duty on Brazilian footwear and other trade issues.

    Source: National Archives, RG 59, Central Foreign Policy File, D760177–0409. Confidential; Immediate; Exdis. Drafted by Shugart, cleared by Zimmermann and Rogers, approved by Kissinger. Repeated Immediate to São Paulo. In telegrams 79100 and 91811 to Brasília, April 2 and April 16, the Embassy transmitted messages from Silveira to Kissinger that informed Kissinger that increased tariffs on Brazilian footwear would damage bilateral relations. (Ibid., D760124–0101 and ibid., D760144–0506) On April 12, Seidman laid out the options for Ford with regard to import relief for the domestic footwear industry. (Ford Library, Papers of L. William Seidman, Box 1, Briefing Papers, April 1976, Duplicates, Classified) On April 16, Ford, in Economic Policy Decision Memorandum 8, decided not to provide import relief for the domestic footwear industry. (Ibid., Box 57, Executive Policy Board Subject Files, Policy Board Decision Memoranda)

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