611.3231/427: Telegram

The Ambassador in Brazil ( Morgan ) to the Secretary of State

4. Referring to the Department’s number 2, January 6, 3 p.m., Brazilian Government will willingly discuss new tariff regulations. Negotiations to be conducted through Sebastian Sampaio, commercial expert, Foreign Office, recently commercial attaché, Washington.

Brazilian Government desires to know whether, if it announces formally that it will accord to the commerce of the United States most-favored-nation treatment, the American Government will understand thereby that whatever preferentials are granted Belgium or other countries will also automatically become American preferentials.

Regarding our customary preferentials as stated in Embassy’s 136, December 26, 4 p.m., legislative authorization was granted but Executive decree has not been issued.

Brazilian Government is opposed to commercial treaty and prefers to conclude a less formal agreement on basis of mutual concessions. They desire to secure maximum reduction in American duty on manganese, mica, and Brazilian nuts. Would also be glad to obtain reduction Brazilian sugar. Sampaio wishes to see tentative memorandum of our proposals immediately.

Several European countries have requested preferentials. They will be granted Great Britain if she reduces duty on Brazilian coffee.

This telegram has been seen by Commercial Attaché Schurz, who has informed his Department of its dispatch.