832.61333/12–2344: Telegram

The Chargé in Brazil (Donnelly) to the Secretary of State

4521. Department’s 3764 December 22, 1 p.m.22 The time is not opportune, in my opinion, to discuss the matter with Souza Costa because he is very disappointed over the results of the Vinson meeting (Department’s circular telegram December 21, 10 p.m.23). Moreover the new president of the National Coffee Department24 (Embassy’s 4474, December 8 [18], 6 p.m.25)will take office on December 26 and this will be followed by a reorganization of the Department and possibly changes in the coffee policy.

I told Souza Costa yesterday (and Velloso today) that there will be no increase in coffee price ceilings. He remarked that politically [Page 642] the situation is very difficult for him. He said that Penteado continues to send optimistic reports regarding the possibilities for obtaining an increase in prices.

I expect to meet next week with Souza Costa and the new president of the DNC and shall inform the Department of their views on the coffee situation.

Donnelly
  1. Not printed; it suggested the advisability of opening conversations to renew the July Memorandum of Understanding (832.61333/12–2244).
  2. Ante, p. 166.
  3. Ovidio de Abreu.
  4. Not printed.