611.3231/702
Memorandum by the Chief of the Trade Agreements Section (Grady)
Mr. João Carlos Muniz and Mr. Arno Konder35 called at my request to go over the list of suggestions handed by the Brazilian Ambassador to Mr. Welles.36 The Brazilian Committee has been studying this list and has certain questions in its mind regarding it which it would like to clear up. It is for this purpose I asked Mr. Muniz to come and sit down with Mr. Daniels, Chairman of the Brazilian Committee. He brought Mr. Konder with him.
In the course of the conversation Mr. Muniz indicated a somewhat different point of view than that he expressed in my last conversations with him. He urged an early statement from our Government as to whether the proposed cotton arrangement with Germany is going through or not. He said that as soon as we can officially assure the Brazilian Ambassador as to this matter, the details of the Brazilian agreement can be quickly worked out. He distinctly gave me the impression, which I did not gather in my last conversation with him, that the Brazilian Government would not press the matter of its own clearing agreements with Great Britain and Germany if we do not go forward with our cotton deal with Germany. I assured him that we would advise him as soon as we had definite word on the cotton agreement.