832.7962/77
The Secretary of State to the Ambassador in Brazil (Caffery)
Sir: Reference is made to the Department’s telegram no. 3180 of August 24, 1943, 6 p.m., concerning the possible extension and modification of Brazilian Decree Law No. 3462 of July 25, 1941, which has now expired, and suggesting that certain collateral problems relating to United States aviation interests in Brazil might also be protected by appropriate agreement. Whereas the Department’s telegram was intended to deal primarily with the extension of this decree from a military standpoint, the following comments refer mainly to the civil or commercial aspects of the problem.
It is noted from your telegram 3623 of July 28, 1943, 2 p.m.,50 that the commercial benefits extended to Pan American Airways and Panair do Brasil by Decree 3462 are strongly opposed by Brigadeiro Gomes. General Walsh also feels that Brigadeiro Gomes may be inclined to hold up certain arrangements needed for military purposes because of their projection to future unilateral and special rights for Pan American Airways interests. Therefore, it has been suggested that, rather than jeopardize the objectives sought by the War Department, [Page 637] the non-military aspects arising out of this decree should be dealt with separately.…
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In an endeavor to analyze this problem, the Department is summarizing below what it understands to be the present status of the principal rights and privileges in Brazil accruing to United States commercial aviation interests.
Pan American Airways: The Department is not fully acquainted with the terms of all of the Brazilian authorizations applying to this United States air carrier, although its commercial services appear to be operated under a series of executive decrees, decree laws, and departmental orders. Occasionally these have been supplemented by informal arrangements such as the verbal permission (later overruled) for increasing the number of international services via the cut-off route.
Airport Development Program: If decree 3462 may be considered as a guide, the principal direct benefits accruing to United States commercial aviation interests are (1) the provision for exemptions from (or amortizations of) any future taxes or fees if and when imposed at the specific airports constructed or improved under the A. D. P. program, and (2) the use of A. D. P. airport “accessory facilities”, the definition of which is now subject to controversy. Incidentally, whereas decree 3462 extended these benefits to Pan American Airways and Panair do Brasil, the Department’s telegram 3180, August 24, 1943, 6 p.m., pointed out the desirability of generalizing these privileges to include any United States air carrier certificated to operate in Brazil.
Rubber Development Corporation: The air-rubber agreement entered into with Brazil by the Rubber Development Corporation51 provides for the construction of an airport at Manáos, as well as at other appropriate places to be determined. At the present time it appears that, apart from small “landing areas” already provided for, Manáos will be the only airport to be constructed under this agreement. Upon termination of the air-rubber agreement (the date of which depends on various factors), the airport at Manáos and any other places covered by the agreement, together with the accessory airport and landing area facilities, will revert to the Brazilian Government, without provision for exemption from any future airport taxes, as provided for in the A. D. P. arrangement.
Servicos Aereos Cruzeiro do Sul, Limitada: Under an agreement signed on March 25, 1943, the Defense Supplies Corporation agreed to sell American airplanes and parts to Cruzeiro. There is also provision for American technical assistance for a period of at least eighteen months.
The protection or reinforcement of whatever rights and privileges now accrue under the aforementioned points, as well as the extension or amplification of any such rights and privileges to include additional [Page 638] benefits which may be desirable for United States commercial aviation in the future, may be dealt with either by means of piecemeal negotiations or by some form of a general agreement. Your early comments as to which of these methods would be the more practicable, as well as any other suggestions pertinent to this subject, would be greatly appreciated.
Very truly yours,
- Not printed.↩
- For information on this agreement, see Foreign Relations, 1942, vol. v, p. 719, footnote 87.↩