Office of the Historian

96. Action Memorandum From the Assistant Secretary of State for Inter-American Affairs (Kubisch) to Secretary of State Kissinger1

Washington, March 6, 1974.

Brazil: Possible Countervailing Duties on Shoes

As we discussed last night, an announcement by the Treasury Department of a countervailing duty proceeding on Brazilian shoes is scheduled to be made on Friday of this week. This action, of course, is contrary to your understanding with Brazilian Foreign Minister Gibson Barboza.

You asked that I prepare, on a contingency basis, a letter from you to Gibson Barboza explaining the Treasury decision, but to hold it for 24 hours because you expected to discuss this with Secretary Shultz once again, along with a similar action Treasury is proposing to take on cut fresh flowers from Colombia.

[Page 270]

Recommendation:

That you authorize the attached telegram to Gibson Barboza if Secretary Shultz was unwilling to reconsider or defer the Treasury action.

  1. Summary: Because the Department of the Treasury was scheduled to announce a countervailing duty proceeding on Brazilian shoes, and the duty contradicted an understanding between Kissinger and Foreign Minister Gibson Barboza, Kubisch had a letter drafted to explain the Treasury’s decision.

    Source: National Archives, RG 59, Central Foreign Policy File, P850150–1169. Confidential; Exdis. Drafted by Kubisch. Attached is the draft of a telegram to Gibson Barboza, not published. A handwritten note indicates it was sent on March 7. Telegram 45677 to Brasília, March 7, transmitted a letter from Kissinger to Gibson Barboza informing the Foreign Minister that Shultz would make the announcement March 8. (National Archives, RG 59, Central Foreign Policy File, [no film number]) On March 7, Ambassador Crimmins delivered Kissinger’s letter. Gibson Barboza informed Crimmins of his displeasure regarding the decision and the short notice given Brazil, and he questioned whether the United States and Brazil shared a “special relationship.” Crimmins responded that the U.S. Government had been requesting countervailing duty discussions since September 1973, but the Brazilians had not agreed. (Telegram 1572 from Brasília, March 7; ibid., P740141–0350)

    ↩