832.654/12–2644
The Chargé in Brazil (Donnelly) to the
Secretary of State
No. 19294
Rio de Janeiro, December 26,
1944.
[Received January 5, 1945.]
Sir: I have the honor to refer to previous
correspondence concerning the agreement for the use of synthetic rubber
by the Brazilian rubber industries and now to transmit copies of an
exchange of notes between this Embassy and the Ministry of Foreign
Affairs of Brazil formally recognizing the provisions of the agreement
reached between the Rubber Development Corporation and the Commission
for the Control of the Washington Agreements.
Although the Decree-Law implementing this agreement has not yet been
signed it is understood to be now in the office of the President and it
is likely that it will be promulgated within the week.
Respectfully yours,
For the Chargé d’Affaires a.i.:
Harold S. Tewell
First Secretary of Embassy
[Enclosure]
The American Chargé in Brazil (Donnelly) to the Brazilian Acting Minister for Foreign
Affairs (Leão
Velloso)
No. 2352
Rio de Janeiro, December 22,
1944.
Excellency: I have the honor to inform
Your Excellency that my Government agrees to the provisions of your
note of this date73 and
considers the agreement completed by the exchange of these notes in
accordance with the following terms:
The Government of the United States of America, having in mind the
agreements signed between our two Governments on March 3 and October
3, 1942, referring respectively to natural rubber and manufactured
rubber, and considering that in the present emergency natural rubber
continues to be of great necessity to the war and civilian industry
of the United Nations, and desiring, on the other hand, to emphasize
the mutual spirit of cooperation and assistance which has prevailed
in the solution of problems related to such strategic material as
rubber, agrees to the following modifications in the above mentioned
agreement of October 3, 1942, in accordance with the decision
reached between the Commissão de Controle dos Acordos de Washington
and the Rubber Development Corporation, successor to the Rubber
Reserve Company.
- I
- –The Government of Brazil undertakes to permit the importation
from the United States of America of synthetic rubber, and other
plastics having similar properties and utilization, free of any
customs duties and additions thereto, social security taxes, and
of any other clearance fees or charges, and to allow the use
thereof in the national industry, in the proportion necessary to
carry out the terms of the present agreement without altering
the fiscal regime which grants to the rubber products factories
exemption of duties for the importation of other raw materials
utilized by them.
- II
- –The Government of Brazil undertakes to bring about, as soon
as possible, the maximum practicable reduction in the
consumption of natural crude rubber in the country below the
present annual quota of 8,500 tons, and to promote to the
maximum the use of reclaimed rubber as well as of synthetic
rubber, and other plastics of a similar nature.
- III
- –For the purpose of carrying out such understanding, the
Government of Brazil undertakes to establish as soon as possible
the adoption by the manufacturers of tires and tubes of the
manufacturing methods employed in the United States, known as
the S–5 or S–7, in each of which there are used about 35% of
synthetic rubber, or other plastics of a similar nature in
substitution of natural crude rubber. The technical data
necessary for the adoption of the above mentioned processes
shall be furnished free of charge by the Rubber Development
Corporation to the Brazilian rubber goods industry through the
Commissão de Controle dos Acordos de Washington.
- IV
- –The Government of Brazil undertakes to prevent the
reexportation of any quantity of synthetic rubber and of any
other plastics of a similar nature supplied to Brazil by the
United States of America, through the intermediation of the
Rubber Development Corporation, by virtue of the present
agreement, unless such plastics shall have been transformed into
manufactured goods, in conformity with the provisions of the
October 3, 1942 agreement between Brazil and the United States
of America.
- V
- –Rubber Development Corporation undertakes to supply to Brazil
such quantity of synthetic rubber, or other plastics of a
similar nature, as may be necessary to carry out the terms of
the present agreement, which quantity may not be less than 2,500
tons per year, at the following export prices F.O.B. factory in
the United States of America:
GR–S (Buna S)—US$0.36 (thirty-six cents) per lb.
GR–S Special—US$0.36 (thirty-six cents) per lb.
GR–M Neoprene—US$0.45 (forty-five cents) per lb.
- The basic prices above set forth may be reduced, in which case
the Rubber Development Corporation shall enter into agreement
with the Commissão de Controle dos Acordos de Washington in
order to set up a new price schedule.
- VI
- –Rubber Development Corporation, in addition to the tires and
tubes that it is obligated to purchase, in accordance with the
provisions of the October 3, 1942 agreement, agrees to buy,
during the period established by the present agreement and in
conformity with the terms and provisions of the October 3, 1942
agreement, such additional quantities of tires and tubes as may
become available for exportation and which may have been
produced by virtue of the use of synthetic rubber, or of other
plastics of a similar nature, in the industry of the said
products.
- VII
- –Rubber Development Corporation agrees with the increase of
the total consumption quota of 10,000 tons per year, established
by the October 3, 1942 agreement, which may result from:
-
a)
- —unlimited use of reclaimed rubber; and
-
b)
- —use of synthetic rubber, or of other plastics of a
similar nature, in conformity with the plan and
arrangement hereby established, it being estimated that
by carrying out the above measures the production
capacity of the Brazilian rubber product industry will
be increased to the maximum; it being also understood
that all of the tires and tubes manufactured in Brazil,
during the period specified in the present agreement, in
excess of the essential necessities of the country,
figured in accordance with the terms of the October 3,
1942 agreement as not being more than 7,500 tons, shall
be sold to the United States of America, in accordance
with the provisions of the above mentioned agreement of
October 3, 1942.
- VIII
- –In order to render the most efficient and practicable
technical assistance in connection with the use of synthetic
rubber, the Rubber Development Corporation undertakes, upon
understanding with the Commissão de Controle dos Acordos de
Washington, to send a technical commission to the United States
of America, where the United States
[Page 617]
Government will make available to the said
commission all of the necessary technical data and information
relative to the best and most modern methods of using synthetic
rubber, or other plastics of a similar nature, in the
manufacturing of tires and tubes, and other articles of
manufactured rubber, and if during the life of this agreement
there should be perfected any new method, such shall be placed
at the disposal of the Commissão de Controle dos Acordos de
Washington, it being understood that the Government of Brazil
will take the necessary steps to the end:
- 1)
- that the technical information to be given by the
Government of the United States of America, or through
the intermediation thereof, shall only be used for the
purposes covered by the present agreement; and
- 2)
- that the said information, which is considered
confidential, shall only be made available to persons
directly engaged in the production of rubber
manufactured products, in order to avoid any abuse, or
wrong application, of synthetic rubber, or of other
plastics of a similar nature, as might bring about the
failure of the objectives contemplated by the present
agreement.
- IX
- –It is understood that the plan and arrangement established by
the present agreement shall remain in full force and effect
during the same period fixed for the duration of the October 3,
1942 agreement, unless the parties hereto, after consultation
with each other, should come to the conclusion that natural
rubber is no longer necessary either for the war effort, or for
the essential civilian requirements of the United Nations; in
which case the present agreement shall terminate 90 (ninety)
days after the written recognition of such fact is signed
between the Rubber Development Corporation and the Commissão de
Controle dos Acordos de Washington, it being hereby understood,
however, that all the agreements altered by the present one,
including that of October 3, 1942, shall continue in effect on
the same bases and conditions as before.
I avail myself [etc.]
