832.24/12–944

Memorandum of Conversation, by Mr. Philip O. Chalmers of the Division of Brazilian Affairs

Mr. Gardner25 called to inquire concerning the willingness pi this Division to compromise with the War Production Board and other agencies on the number of truck and bus units to be supplied to Brazil. Mr. Gardner stated that it appeared that the War Production Board would propose that Brazil be allocated 10,000 trucks during 1945, 9,200 mediums and 800 light-heavies. He stated, however, that there was little possibility of securing the 1,500 diesel-powered buses for which a request had originally been made. He stated that there was shortly to be a meeting of the Requirements Committee of the War Production Board and he wants to know what this Division’s attitude is in order that he may be in a position to declare this Department’s attitude.

I told Mr. Gardner, in substance, that this Division was very anxious to cooperate with other agencies and individuals concerning this problem and that we fully appreciated the difficulties involved. I told him, however, that we were faced with a, specific problem which experts had carefully studied and for which they had outlined a minimum program by way of solution; and that any compromise with that was considered by those who know to be the minimum might easily result in a failure to solve the primary problem.

I told him that this Division was quite prepared to accept a bona fide offer of 10,000 trucks for the year 1945 but stressed that the following conditions should be a part of any such agreement:

1.
The bulk of the trucks in question should be delivered during the first six months of 1945 since time is as important a factor as quantity itself.
2.
The most urgent part of the program is the 1,500 buses and we cannot afford to compromise on this point. Precautions have been taken to verify that Ford and Chevrolet, if given AA–1 priority, can supply diesel-powered buses, commencing 90 days after the order is confirmed, without any interference whatever with military requirements, Army or Navy. In the face of these assurances, this Division could not accept the War Production Board’s statement that delivery of diesel-powered buses was out of the question. We have no alternative but to insist on the allocation of these units.
3.
We reserve the right, after June 30, 1945, again to raise the question of the remaining 3,500 trucks and agree to submit the question of such an additional allocation to a discussion on the merits.

Mr. Gardner stated that he was glad to have this Division’s views and that he would be guided, as far as possible, by them at the Requirements [Page 600] Committee meeting. He agreed to keep me informed of developments.

  1. Fred W. Gardner, of the War Supply and Resources Division.