832.1561/9–3047
The Chief of the Division of Brazilian Affairs ( Dawson ) to the Counselor of Embassy for Economic Affairs in Brazil ( Brooks )
Dear Clarence: I have just talked over the telephone with the Ambassador in Miami. Although most of the conversation was about other matters, which I have more or less covered in the postscript of a letter to David Key,4 we touched on the shipping discrimination question.
I told the Ambassador of some of the developments mentioned in my letter of September 25 to you on the subject. He reacted by telling [Page 439] me that, in his last conversation with Dutra, the latter had definitely stated, as reported by the Embassy telegraphically, that the discrimination would be brought to an end. Mr. Pawley went on to say that he thought you should push the matter vigorously, by a note to the Foreign Office if there was no progress, and commented that there was plenty of material in the Embassy’s files from Moore-McCormack on which to base a strong case.
Lalley of Moore-McCormack has been in to see me twice more since I last wrote you on the subject. He says that he has been doing more talking not only with the Maritime Commission but with the Export-Import Bank people on the anomaly of our financing Lloyd Brasileiro expansion when Brazil is discriminating against American shipping. According to Lalley, his bosses are ready to “bust the situation wide open” by newspaper publicity or passing word along to an appropriate Congressional committee. I counseled him to insist with his principals that they hold off until we could see what the results were of the Ambassador’s talk with Dutra. As you will gather, the pressure is getting stronger here all the time to do something.
Let us know promptly of developments, will you, so that we can try to calm down angered spirits.
Wayne Clark5 rolled in on Saturday and is already ensconced at his desk next door. With his able assistance, perhaps I can shortly become more of a man of leisure (if not distinction) than has heretofore been practicable.
With cordial personal regards,
Yours, as ever,