832.24/1223: Telegram
The Secretary of State to the Ambassador in Brazil (Caffery)
4136. Your no. 5444, December 22, 5 p.m.2 Investigation discloses that neither the Brazilian Military Attaché3 nor the Brazilian Commercial Counselor4 made any request for assistance to the Department upon the denial by the Board of Economic Warfare of the export licenses under reference. In fact, Colonel M. L. Brett, the United States War Department Liaison Officer with the Brazilian Military Commission, to whom the Department was referred on this matter by Lieutenant Colonel Stenio Lima, stated that he was quite familiar with the case and at his request the Brazilians here had refused to support appeal applications. This action was taken because of the understanding between the Brazilian Military authorities and the Office of Lend Lease Administration which is now supplying the Brazilian Arsenals’ requirements for zinc and aluminum.5 Mr. Paul Sturm of the Office of Lend Lease Administration confirmed this statement.
Colonel M. L. Brett also supplied the following figures on the assistance already rendered and to be given to the Brazilian Arsenals:
1) The 1942 Brazilian Arsenals’ requirements were approved, allocations for these were received, Lend Lease requisitions were sent to the Treasury Department, and Treasury Department contracts have been made with suppliers.
The Treasury Department contracts for zinc to fill the balance of 1942 needs were made in September for 440,000 lbs. or 200 metric tons. Of this amount 110,000 lbs. (50 metric tons) have already been shipped, 220,000 lbs. (100 metric tons) are now in New York ready [Page 617] for shipment, and the balance is covered by American Smelting and Refining contracts and it is expected to be ready for shipment very soon.
The Treasury Department contracts for aluminum to fill the balance of 1942 needs was placed with Alcoa6 on October 8, 1942 and called for delivery of 476,000 lbs. (approximately 2163 metric tons) by December 31, 1942. Of this amount 122,000 lbs. (about 55½ metric tons) have already been shipped, 256,000 lbs. (about 116⅓ metric tons) are ready for shipment, and the balance should be delivered according to contract;
2) The 1943 Brazilian Arsenals’ requirements presented by Colonel Stenio Lima as Chief of the Brazilian Military Commission have been submitted by the War Department to the Office of Lend Lease Administration and this office has presented them for the consideration of the American Requirements Committee.
Lend Lease and War Department officials have very strong feelings on this matter. They claim to have received General Portella’s7 full 1942 and 1943 requirements for the Arsenals and, therefore, feel that General Portella, by placing orders on the side through ordinary commercial channels, has not played the game with them. Not only have they offered him the services of the War Department for procuring certain scarce items and the services of the Office of Lend Lease Administration for procuring other type materials but they also can and have obtained these materials for him at considerable savings. If the Brazilian Arsenals’ requirements for 1943 are now greater than those originally submitted, they feel that General Portella should advise them in the premises in order that their requests to the American Requirements Committee may be amended.
The American Requirements Committee estimates total available supply of scarce material in the United States and then allocates its use to the claimant agencies by specific amounts. The American Requirements Committee has been told that the Office of Lend Lease Administration will present through the Board of Economic Warfare and be responsible for the requirements of the Brazilian Arsenals. Inasmuch as some requirements purporting to be for these Arsenals are being presented by commercial firms direct to the Board of Economic Warfare, the Board feels that this is an unjustified duplication. As it is not policy to furnish more than minimum essential requirements, the Board of Economic Warfare has been denying these commercial requests. Also, any commercial applications which the Board of Economic Warfare has approved or may approve will [Page 618] be charged to the allocation set up to cover the needs of the Brazilian Arsenals thus reducing the amounts to be obtained through Lend Lease.
General Amaro Soares Bittencourt8 is said to be conversant with this United States supply picture.
- Not printed; this telegram reported that the Brazilians claimed that export licenses had been denied by the United States for 100 tons of zinc and 200 tons of aluminum needed by Brazilian arsenals for shell caps and cases.↩
- Lt. Col. Stenio Lima.↩
- Walder Sarmanho.↩
- For correspondence concerning the negotiation of a Lend-Lease Agreement, see Foreign Relations, 1941, vol. vi, pp. 528 ff.↩
- Aluminum Company of America.↩
- Director of the War Materials Division of the Brazilian War Department.↩
- Brazilian Military Attaché in Washington until October 1942.↩