632.006/12–3044: Telegram
The Secretary of State to the Chargé in Brazil (Donnelly)
3819. Reurtel 4520 December 23, 3 p.m. and reurdes 19230, December 19.79 The Department approves the Embassy’s note of December 15 but the penultimate paragraph, relating to an apparently much more comprehensive and potentially more dangerous proposal than the Carteira exchange approval measure, could have been strengthened by specific reference to paragraph 1 of Article II of the trade agreement and other pertinent paragraphs of that Article with regard to obligations as to quota administration.
Regarding points raised by Velloso:
- 1.
- The question of “reasonable protection for new industries” will be the subject of an airmail instruction shortly.
- 2.
- The “dumping” of foreign merchandise in any country can be offset by the imposition of anti-dumping duties equivalent to the difference between the usual selling price of the goods in the country of origin and the lower price at which similar goods are offered for export. A recent tendency in several countries, however, is to regard as “dumping” any sales of foreign goods at prices below those at which the goods can be produced within the importing country. You should clarify the views of Velloso on this point.
- 3.
- We will be glad to review the trade agreement whenever the Brazilian Government has specific proposals.
- 4.
- There is nothing in the trade agreement to prevent the making of export payments on any products (United States cotton), whether or not it is included in either of the schedules, which relate to concessions on the importation, not exportation, of the products listed.