ARTICLE IV Such convoys and escort arrangements and the routes and ports of call will be decided upon between the United States Navy Department and the Brazilian Air and Navy Ministries. ARTICLE V The Brazilian Government agrees to maintain, as far as possible, the vessels enumerated in Article 3, in trade between the United States of America and Brazil and will endeavour to increase the number of vessels in this trade to the maximum possible. ARTICLE VI In the event of loss of any of the vessels enumerated in both Article 1 and Article 3, the Governments of Brazil and of the United States of America will endeavor to replace such vessel by another of equivalent tonnage on the route between the two countries, in order to preserve the regularity of traffic. ARTICLE VII The Brazilian Government through the Merchant Marine Commission and other State agencies will at all times cooperate in every way in assisting the United States Government or its authorized agent, in supplying masters, officers, and crews, and also in the solution of such crew problems as may arise. ARTICLE VIII The chartered ships will remain under the Brazilian flag. The Brazilian Government will permit, however, the masters, officers, and crews of such vessels to be of any nationality at the discretion of the United States Govern ment. ARTICLE IX If during the life of this agreement any of the vessels enumerated in Article 1 and Article 3 be lost, the United States Government obligates itself, (1) To replace such lost vessel after the war, with a vessel of similar size, tonnage, and characteristics; or (2) If unable to effect such replacement, to pay to the Brazilian Government the amount required by the Brazilian Government in order to purchase a replacement vessel of similar size, tonnage, and characteristics. The sums required to be paid in accordance with this article and the number, tonnage and characteristics of the replacement vessels shall be determined by a Mixed Commission to be established by the two Governments within thirty (30) days after the end of the hostilities in which the United States and Brazil are at present engaged. 2. Letter No. 198, of September 18 of this year, a photostat copy of which is attached, shall be an integral part of this Agreement, Your Excellency having informed me in the said letter, referring to the obligation assumed by the Government of the United States of America in Article 9 regarding the Brazilian ships enumerated in Article 3, that this obligation covers all war risks, including even marine risks but only when the latter risks result in the total loss of a Brazilian vessel. 3. It is understood that this note and that of Your Excellency, of today's date and in similar language, constitutes a formal agreement between the Governments of the United States of Brazil and the United States of America. I avail myself of this opportunity to renew to Your Excellency the assurances of my highest consideration. His Excellency JEFFERSON CAFFERY Ambassador of the United States of America OSWALDO ARANHA CHARTERING OF VESSELS Exchange of notes at Rio de Janeiro December 7, 1942, supplementing I have the honor to refer to Your Excellency's note EC/AC/496 of September 30, 1942,2 and to the charter parties signed on October 20, 1942, and to inform Your Excellency that my Government is pleased to sign the following agreement with Your Excellency's Government with respect to the following vessels: NORTELOIDE, SULOIDE, BAIALOIDE, pelotasloide, VITORIALOIDE, GAVEALOIDE, PIRAILOIDE, APALOIDE, RIOLOIDE, CEARALOIDE, GOIASLOIDE, RECIFELOIDE, MINAS LOIDE: The Brazilian Government will be designated as "the owner" and the Government of the United States of America as "the charterer", in accordance with the following terms: Article 1. In consideration of the payment of $350,000.00 (three hundred and fifty thousand dollars United States Currency) by the owner to the charterer, the charterer agrees to accept and the owner agrees to deliver to the charterer at ports mutually agreed upon in the United States of America, the following vessels: NORTELOIDE, SULOIDE, BAIALOIDE, PELOTASLOIDE, VITORIALOIDE, GAVEALOIDE, PIRAILOIDE, APALOIDE, RIOLOIDE. Article 2. The owner undertakes to make the necessary repairs so that the vessels above referred to may sail from Brazil to the United States in a good operating and seaworthy condition. Article 3. The charterer agrees to make all of the necessary repairs to put the said vessels in a good seaworthy condition, providing them with the classification requirements set forth in articles Nos. 2, 5, and 6 of the charter parties above referred to. Sole Paragraph. It is further agreed that all other terms and conditions of the charter parties will continue in full effect. Article 4. The charterer agrees to insure the NORTELOIDE, SULOIDE, BAIALOIDE, PELOTASLOIDE, VITORIALOIDE, and Gavealoide with the same war risk and total loss insurance protection for the period of the northbound voyage prior to the delivery in the United States of America as these vessels would receive after delivery. Article 5. The owner agrees to comply with all of the requirements of the charter party with respect to the MINASLOIDE and the CEARALOIDE, and to deliver the two vessels to a representative of the War Shipping Administration of the Government of the United States of America at Rio de Janeiro. It is understood that the present note and the one from Your Excellency dated today, on the same subject, will constitute a formal agreement between the Governments of the United States of Brazil and the United States of America. I avail myself of this opportunity to renew to Your Excellency the assur ances of my highest consideration. With further reference to my note EC/AC/496 of September 30, 1942, and the charter parties signed on October 20, 1942, I have the honor to inform Your Excellency that the Brazilian Government is in accord with the conclusion of the following agreement with the Government of the United States of America, with respect to these vessels: NORTELOIDE, SULOIDE, BAIALOIDE, PELOTASLOIDE, VITORIALOIDE, GAVEALOIDE, PIRAILOIDE, APALOIDE, RIOLOIDE, CEARALOIDE, GOIASLOIDE, recifeloide, MINASLOIDE. 2. In this agreement the Brazilian Government will be designated as "the owner" and the Government of the United States of America as "the charterer," in accordance with the following terms: [For terms of agreement, see articles 15 of U.S. note, above.] 3. It is understood that this note and that of Your Excellency of today's date and of the same tenor constitute a formal agreement on the subject |