800.8830 Coal/233b: Telegram

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

476. After taking into consideration stocks on hand, average monthly consumption and recent average monthly receipts of coal, what would be the effect on Brazilian economy if monthly coal shipments from U. S. were limited to 40,000 tons? This reduction in coal shipments may be necessary in view of the great demand on shipping and the necessity for providing space for other essential civilian requirements, Lend-Lease, the Rubber Reserve program, Itabira, National Steel Mill35 and other projects.

Please cable reply urgently.

Hull
  1. See sections concerning defense, metals procurement, and rubber procurement by the United States from Brazil, pp. 616 ff., 659 ff., and 664 ff., respectively.