832.2546/1–550

The United States Embassy to the Brazilian Foreign Office 1

secret

Memorandum

To provide for use by United States industries which have been established for many years and which have no other adequate source of raw material supply, and to assure the production in the United States of the rare earth elements contained in monazite, required for military usages as well as to complete stockpile objectives, the United States desires to continue to avail itself of the privilege of acquiring, on prices, terms, and for periods to be mutually agreed on, Brazil’s entire exportable surplus, but not less than 3,000 metric tons a year of raw monazite.

Should thorium, or compounds of thorium become available by reason of the industralization of monazite in Brazil, the United States also desires to be accorded the privilege of acquiring, on prices, terms, and for periods that would be the subject of mutual agreement, all such thorium and compounds thereof not required for industrial application within Brazil, or for stockpiles to be established and controlled directly by the Government of Brazil.

The Government of the United States is prompted to express these desires in view of considerations involving the highest long range mutual objectives of both countries and the security of the Western Hemisphere. It is with these same objectives in mind that the Government of the United States would like to be formally assured that the Government of Brazil will only authorize the export of monazite, or other carriers or compounds of thorium, or of thorium produced in Brazil, to consignees in the United States, or to other consignees mutually satisfactory to Brazil and the United States.

Recurring reports to the effect that Brazil may place an embargo on the exportation of monazite has created a feeling of uncertainty on the part of the United States consumers as well as the authorities of the United States. These uncertainties would be dispelled by a formal statement on the part of the Brazilian authorities that the status quo with respect to monazite will be continued until a new undertaking in the matter is concerted between the two governments.

  1. Copy transmitted to the Department of State in despatch No. 18 from Rio de Janeiro, January 5, 1950.