740.00112A European War 1939/33485: Airgram
The Secretary of State to the Ambassador in Brazil (Caffery)
A–2131. The problem of subsidies for technicians in connection with the replacement program has been discussed within the Department and by the Interdepartmental Committee on Replacement Problems.
The view of the Department, concurred in by the other interested agencies, is that a definite position cannot be taken until the importance and extent of this aspect of the replacement problem is outlined. In the present state of knowledge, for example, it would be impossible for the agency of this Government which might underwrite subsidies for technicians to estimate the extent and the amount of its commitments or the importance of the project on which it was expending its funds. For this reason, it is desired that the Department be furnished with an estimate of the number of technicians who may be required in connection with the replacement program, the type of work performed by such technicians, the range of salaries for the prior holders of these positions, and such other details as will assist in estimating the nature and scope of the possible undertaking. It is also requested that the Department be furnished with an indication of the importance of the particular firms in which replacement of technicians is to be [Page 763] carried forward, and an over-all estimate of the importance of the project of subsidizing technicians. (It is assumed that in any case, most technicians could and would be furnished on a non-subsidy basis.)
Should some form of subsidy or financial assistance be required in connection with the program for replacement of technicians, it is thought desirable that the Brazilian Government furnish as much of the assistance as is possible. Since the firms which will benefit are Brazilian firms, important to the local economy, it is believed that the Brazilian Government will recognize its interest in promoting the welfare of these companies. On the other hand, assistance in the form of direct subsidies by the United States Government might lead to adverse criticism because American concerns are direct competitors of the Brazilian companies which would thus be subsidized. However, should the Brazilian Government not desire to finance such a program in its entirety, this Government might consider joining with the Brazilian Government to provide a fund from which subsidies could be paid to American technicians in the amount necessary to supplement the salaries received from the Brazilian companies. In the event of such a program, it would be desirable for a training program for Brazilian technicians to be run in connection with the operations of the employing concern.
In connection with this entire program, it might well be desirable to inaugurate a project for training Brazilian nationals in factories and research laboratories of the United States. Such a training program might well have more important long-range effects than would a project for sending a technician to a particular firm for a limited period of time. Such a program would be carried forward, of course, simultaneously with the program for supplying immediate replacements for Axis personnel.