File No. 611.326/49
The Ambassador in Brazil ( Morgan) to the Secretary of State
[Received 10.30 p.m.]
A serious situation is developing here. The President has called me to a conference during which he stated that the recent restrictions of our Government boards on the exportation of coffee and rubber were choking the economic life of Brazil and were creating resentment. Many senators and deputies were complaining that while the United States purported to be Brazil’s best friend, she was disregarding Brazil’s essential interests and preventing her from contributing her quota to the cause of the Allies. Cuban Legation [Page 701] on the other hand, in the person of special missions, were offering Brazil advantages and facilities, and the necessities of the Argentine, which is not an ally, were receiving more consideration than those of Brazil. The Government understood that the shortage of tonnage was the prime cause of these restrictions, but the people did not take that view.
The President asked that the tonnage now in service between the United States and Brazil should be allowed to transport coffee and rubber without special restrictions, Brazil determining the amount of exportation; that the coal supply might be maintained on the basis of the present arrangement and that a tank steamer might be released for a full cargo of gasoline, the supply of which was only sufficient for one month more. Transportation in Brazilian cities is largely made by motor traction and if gasoline gives out communication will stop.
Suggest that the Department make a statement covering above points which either Da Gama or I can give President.
Da Gama has telegraphed that he “can do nothing more.” …