832.852/76: Telegram
The Acting Secretary of State to the Ambassador in Brazil (Caffery)
3986. Your 4867, October 15, 3 p.m. The Department is informed by WSA that a letter from Brazilian Merchant Marine representative attached to the Brazilian Embassy has been received requesting return of chartered vessels. Assurances are given that U.S. Government cargoes in Brazilian coastwise trade will be moved. The question is whether the agreement of September 30 will be maintained with respect to replacement features on ships operated by Brazil. Replacement features on ships returned would be terminated in any event.
The question is whether the entire agreement is to be terminated or whether it would only be modified to extent of returning the chartered vessels. Department derives from your telegram that it would be politically desirable to continue replacement features on Brazilian operated ships and is so informing WSA.