710 Consultation 4/8–547: Telegram
The Ambassador in Brazil (Pawley) to the Secretary of State
1046. In view number telephone calls received by Foreign Minister on subject I held luncheon today at Embassy, attended by Chiefs all Latin American Missions and Secretary General FonOff Accioly at which I discussed 1948 Sugar Act and endeavored to impress on them that its provisions with respect to allocation increased quotas would not constitute, in any way, an economic threat to any country. At same time I presented each one present a memorandum embodying substance of Deptel 850, August 1 and Under-Secretary’s press interview, Deptel 849, August 1.58 In discussion that ensued, I gained impression that all present were personally satisfied that the law did not constitute an economic threat but the point was raised by Uruguayan Ambassador Buero, who had some support from Mexican Ambassador,59 that the law was not clearly drawn in that it did not specifically state that the right to withdraw increase in quota could be submitted to international arbitration only after it had been determined that American citizens or enterprises had exhausted all legal recourse in local courts.
I feel reasonably certain as result of today’s meeting that an attempt will be made to bring this point up for discussion at Conference and that it will have some support by Mexican and Uruguayan delegations and possibly those of Colombia and Bolivia.
Cuban Ambassador60 stated that he was uninstructed with respect to Sugar Act but expressed himself as being satisfied with it. He stressed [Page 34] sacrifices made by Americans in achievement of Cuba’s liberation, the traditional friendship that has always existed between Cuba and United States. He remarked that there never had been and he was sure there never would be any questions between the two countries that could not be settled amicably.
Secretary General Accioly, who is outstanding international jurist, expressed opinion, after the discussion, that the law was unobjectionable and should controversy arise at Conference that Brazil would support United States.
Emphasized several times during the luncheon was the fact that the adoption by US of any measure that might constitute a threat to the economy of any American nation would be completely inconsistent with United States economic policy.