Foreign Relations of the United States, 1947, General; The United Nations, Volume I

Department of State Atomic Energy Files

Memorandum by Mr. Edmund A. Gullion to the Under Secretary of State (Acheson)¹

secret

[Washington,] March 3, 1947.

Subject: Brazilian Offer of Monazite Sand to Canada

The attached memorandum is self-explanatory. I have confirmed that our approval is necessary before the one ton of monazite in question can be assigned to the Canadians.

The Brazilian motives in making this offer are, I think, to establish a basis for scientific cooperation and exchange of information with Canada. The Brazilians are taking a more ambitious and energetic line with respect to exploitation of their monazite than hitherto. You have seen the inspired editorial in El [O] Globo which calls for nationalization of the deposits and the trade with pressure for higher prices and concessions from the United States. Our despatches from Brazil report the interests of many firms, Dutch, Portuguese, French, et cetera, in making offers on Brazilian monazite. There is no indication as yet that the Brazilians have violated the agreement of July 10, 1945,² by releasing any quantity for shipment to nonapproved consignees (except for the one ton for Canada about which they may yet ask us) but there is a suggestion of pressure on us in the numerous rumors of a lively demand for Brazilian monazite by non-CPC countries. As you also know, the Brazilians are trying to get Lindsay³ and others to build monazite refining plants in Brazil. Our attitude toward Brazilian nationalization of the industry is contingent on whether it affects the Agreement, our access to the material, and the price we have to pay. We would also be opposed to any arrangement which caused any appreciable thorium residues to remain in Brazil.

It may be possible that the Brazilians are going to try to modify the Agreement, possibly sometime before we notify them of our desire to continue our option which must be done before January 10, 1948.

If you agree I propose:

(a) To tell the British and Canadian CPC secretaries that we have no objection to Canada as a consignee of the one ton; we assume, however, that there would not be any exchange of scientists and we understand that that is also the attitude of the Canadian Government.

(b) To review for them our latest information on Brazilian measures and actions with regard to monazite.

(c) To get from our Embassy any further information about Brazilian intentions.

[Annex]

Memorandum of Conversation, by Mr. Edmund A. Gullion

[Washington,] March 3, 1947.

Mr. Stone informed me that the Brazilian Government through Cmdr. [Captain] Alberto⁴ had offered to the Canadian Government one ton of monazite sand for experimental purposes. The Brazilians had also indicated an interest in having scientists participate in research in Canada and having Canadian scientists visit Brazil. Mr. Stone said that the Canadians had said they would accept the one ton but they were not going to arrange for any exchange of scientists. I told Mr. Stone I believed, subject to further study and consultation, that the US–Brazilian Agreement of July 10, 1945 to which the UK, had later been made a party, required that all consignees have prior approval from the US and UK authorities.

(A despatch from Rio, number 1668, dated February 12, 1947,⁵ transmits a top secret memorandum from the Legal Attaché stating that Mr. Jean Desy, Canadian Ambassador to Brazil, had requested the ton of monazite from Brazilian suppliers. According to this source General McNaughton, Canadian Representative on the Atomic Energy Commission, had made arrangements to facilitate the shipment with Commander Alberto. It is established, however, that the Brazilians through Alberto took the initiative in making the offer.)

1. At the top of the source text, Acheson wrote “I agree with all three points.”
2. For the text of the agreement between the United States and Brazil providing for the purchase of monazite sands from Brazil, see Foreign Relations, 1945, vol. ii, p. 14.
3. Reference is to the Lindsay Light and Chemical Company, an American processor of monazite sands.
4. Capt. Alvaro Alberto da Motta e Silva, Brazilian Representative on the United Nations Atomic Energy Commission.
5. Not printed.