832.61333/766
The American Ambassador in Brazil (Caffery) to the Brazilian Minister for Foreign Affairs
(Aranha)79
No. 43
Rio de
Janeiro, March 12, 1943.
My Dear Mr. Minister: With reference to our
conversations relative to the coffee agreement and exchange of notes
signed on October 3, 1942,80 between our two Governments, I take pleasure in
informing Your Excellency that my Government, with the concurrence of
your Government, will put the coffee accord into effect immediately.
As Your Excellency will doubtless recall, it has been agreed that after
the quota year 1942/1943, my Government may dispose of any coffee
remaining in its possession in any way it deems advisable, and may ship
it to any destination whatsoever; however, my Government will advise and
discuss with authorities of the Brazilian Government at the appropriate
time with regard to plans for the disposal of this coffee.
If Your Excellency concurs, the operation of the agreement will conform
to the points included in the attached memorandum.
With all good wishes,
Yours very sincerely,
[File copy not signed]
[Enclosure]
Memorandum by the Ambassador in Brazil (Caffery)
[Rio de
Janeiro,] March 12, 1943.
- 1.
- Due to the acuteness of the shipping situation, my Government
would find it convenient to take delivery of the coffee at the
ports of
[Page 688]
Santos and
Rio de Janeiro; however, it will purchase coffee in Vitória and
Paranaguá, also, the quantities to be purchased at the latter
two ports to be determined by mutual understanding.
- 2.
- My Government understands that any coffee which it may ship
from its stocks in Brazil to the United States during the quota
year 1942/1943 shall be replaced simultaneously with purchases
in Brazil, but that this condition shall not apply after Brazil
has shipped its basic quota of 9,300,000 bags.
- 3.
- My Government may utilize at any time during the quota year
1942/1943 any part of its stocks in Brazil for the shipment of
coffee to countries other than the United States, for the armed
forces of the United Nations, lend-lease and relief
purposes.
- 4.
- My Government accepts the figure of 2,659,279 bags as
furnished by the National Coffee Department, as the unshipped
balance of the quota year 1941/1942.
- 5.
- Purchases made in Brazil by any agency of my Government (such
as the Quartermaster of the United States Army) shall be
credited against the commitments of my Government.
- 6.
- It is my understanding that the Brazilian Government agrees
that any balance that my Government may have in Cruzeiros
resulting from the operations of the Coffee Agreement may be
converted into dollars for transfer to the United States at the
average rate of exchange at which dollar drafts were sold in
Brazil and shall be exempt from all banking commissions, taxes
and fees.
- 7.
- I understand that the Brazilian Government agrees that if a
firm declines to sell or deliver coffee in accordance with the
provisions of the agreement, the National Coffee Department
shall invoke the provisions of Resolution No. 480.
