832.24/2833
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received March 21.]
Sir: With reference to my despatch No. 13817 of December 1170 concerning the Brazilian Government’s desire to acquire surplus United States Army engineering and construction equipment in Brazil, I have the honor to report that Brigadier General John S. Bragdon, accompanied by Colonel Malcolm K. Moore and Lieutenant Colonel Norman W. Haner, arrived in Rio de Janeiro on March 7, for [Page 575] the purpose of discussing this matter with the Brazilian authorities. The Embassy immediately notified President Vargas and Dr. Aranha,71 and word was subsequently received from the Presidential secretariat that General Bragdon should conduct his negotiations with General Mendonça Lima, the Minister of Transportation and Public Works.
On March 8, General Bragdon and Colonels Moore and Haner, accompanied by Theodore A. Xanthaky of the Embassy staff, called on General Mendona Lima. At that meeting Dr. Yeddo Fiuzza, Director of the National Department of Highways and Dr. Castilhos, Director of the National Department of Eailroads, were also present. A memorandum (enclosure No. 1)72 which had been prepared was read to General Mendonça Lima who made it clear that the Brazilian Government desired only to acquire the equipment (see attached memoranda of conversations prepared by General Bragdon and Mr. Xanthaky—enclosures 2 and 3), and was not interested in obtaining technical assistance. It was agreed verbally therefore that as equipment became available it would be shipped to Rio de Janeiro and rehabilitated there by American technicians who would be hired in the United States by the U.S.E.D.73 The expense involved, as well as transportation charges, etc., etc., would be outlaid by U.S.E.D., which in turn would be reimbursed by the Brazilian Government as part of the overall price of the equipment.
I am enclosing draft of a self-explanatory letter (enclosure 4) to General Mendonça Lima which was prepared in conjunction with General Bragdon for the Ambassador’s signature. On March 14th, Colonel Moore and Mr. Xanthaky met with General Mendonça Lima, who stated that he was in entire agreement with the terms of this letter and would reply in writing to that effect as soon as he received it. He added that he had already obtained clearance on this subject from President Vargas based upon the conference of March 8th (see enclosures 2 and 3). It was explained to General Mendonça Lima that there would be a delay of a few days before the letter reached him as the Ambassador was out of town and would only return to Rio on March 17th. General Mendonça Lima then verbally authorized Colonel Moore to go about employing his American technicians and sending them to Rio de Janeiro as soon as possible. During the course of the day, Colonel Moore and Mr. Xanthaky also met with Dr. Yeddo Fiuzza, who has been designated by the Ministerio to handle this matter. Dr. Fiuzza arranged for Colonel Moore to see [Page 576] the existing repair shops and arrangements were made for their expansion, etc., in accordance with Colonel Moore’s recommendations.
Respectfully yours,
Counselor of Embassy
- Foreign Relations, 1943, vol. v, p. 650.↩
- Oswaldo Aranha, Minister for Foreign Affairs.↩
- Enclosures mentioned in this despatch not printed.↩
- United States Engineering Department.↩