800.8830/1639

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

No. 7751

Sir: I have the honor to report, as of possible interest to the Department, that the Canadian Trade Commissioner, Mr. Glass, told me on June 23 that he had received a confidential telegram from his government in Ottawa stating that six Lloyd Brasileiro ships are now in southern United States ports and are refusing to accept newsprint that is available for loading there because the freight rates on newsprint are lower than on other cargo. Mr. Glass also said that these ships are supposed to lift 600 tons of newsprint on each voyage.

He is now trying to check this information with local sources.

Respectfully yours,

For the Ambassador:
John F. Simmons

Counselor of Embassy