811.20 Defense (M) Brazil/3204
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received April 22.]
Sir: I have the honor to refer to my telegram No. 1745 of April 9, 194314 stating that agreement had been reached with the appropriate Brazilian authorities regarding the provisions of notes to be exchanged regarding purchases of quartz crystal and mica. There are enclosed copies in English of the provisions of the proposed agreements.14 These were approved by President Vargas on April 13, and with the Department’s approval they will be incorporated in notes addressed to the Ministry of Foreign Affairs.
With few exceptions the contents of the enclosed drafts are identical with the provisions of enclosures to despatch No. 10727 of April 7, 1943.14 In paragraph 5 of each draft there has been incorporated, at the request of the Brazilians, provision for the payment of taxes on direct exports, without prejudice to the exemption from taxation now accorded to or which hereafter may be granted to the United States Purchasing Commission and its agencies. A note granting exemption from certain taxation now has been received from the Foreign Office and will be made the subject of a separate despatch.
In each draft of agreement the provisions of paragraph 8 were inserted at the request of the Embassy in order to preclude possible difficulties that might arise from contingencies not clearly foreseen at this time, and in order to obviate a repetition of delays that have occurred in the past in obtaining the free entry of essential equipment.
Respectfully yours,
First Secretary of Embassy