102.8951: Telegram

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

1000. For Rubber Development, McLaughlin, from Truslow. RDC rubber agreement with Brazil terminates December 31, 1946.75 The [Page 705] price premium agreement terminates March 31, 1946.76 The following important collateral agreements terminate December 31, 1946: tire and tube agreement,77 synthetic agreement,78 air agreement.79

In order to obtain maximum production and conservation of natural rubber in Brazil and to insure that all export rubber will be available for emergencies of war during next two rubber seasons, BDC is prepared to extend rubber agreement, premium agreement and named collateral agreements to June 30, 1947.

Such extension will assure producers market on present terms for full production in season commencing June, 1946 and permit increased production plans during coming 1945–46 season.

You are authorized with assistance of Embassy to conclude at once extensions of these agreements to June 30, 1947 without other change in present provisions. An offer to effect such extensions should be made to the Government of Brazil promptly. Such proposals should be made unconditionally, that is to say, no attempt should be made to obtain settlements of any pending or other matters as a condition to such extensions. Likewise you are not authorized to accept extension of rubber agreement unless other agreements are also extended nor to accept changes in these agreements as a condition to Brazil’s acceptance of such extensions.

The sole objective is the prompt extension of present terms of the rubber agreement, premium agreement, and named collateral agreements to June 30, 1947 to insure maximum rubber procurement during the next two seasons.

Please keep Washington office currently advised of progress in securing extensions.

As soon as formal official notes are exchanged accomplishing extensions wide publicity should be given by Brazil in all rubber areas to furnish producers information on which to develop plans for next two seasons.

A similar proposal is being presented to each other American country participating in rubber program. [Truslow.]

  1. For text, see telegram 640, March 13, 1942, 7 p.m., to Rio de Janeiro, Foreign Relations, 1942, vol. v, p. 692.
  2. For text, see airgram A–105, January 28, 1944, 12:40 p.m., to Rio de Janeiro, ibid., 1944, vol. vii, p. 603.
  3. For substance of this agreement, see ibid., 1942, vol. v, p. 719, footnote 87.
  4. For text, see note 2352, December 22, 1944, from the American Chargé in Brazil to the Brazilian Acting Minister for Foreign Affairs, ibid., 1944, vol. vii, p. 615.
  5. Approved November 19, 1943, not printed.