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I should appreciate it if Your Excellency would be so kind as to confirm to me your approval of this general proposal, with the understanding that the details of the program will be the subject of further discussion and agreement as provided for herein.

Accept, Excellency, the renewed assurance of my highest consideration. JEFFERSON CAFFERY

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I have the honor to acknowledge the receipt of note 1947 of the 9th of this month, in which Your Excellency refers to the notes exchanged between the Minister of Finance of Brazil and the Acting Secretary of State of the United States of America dated March 14, 1942, and to our conversations about the cooperative program of health and sanitation in Brazil, which was provided for by resolution XXX of the Third Meeting of the Ministers of Foreign Affairs of the American Republics, which was held in this city in January 1942. Your Excellency makes known that in accordance with the aforesaid notes, the United States of America had already contributed the amount of $5,000,000 in U.S. currency toward the realization of that health and sanitation program, which is at present being carried out in Brazil.

2. Your Excellency communicates to me that, in case the Brazilian Government so desires, the Government of the United States of America, through the intermediary of the Institute of Inter-American Affairs, an agency of the Office of Coordinator of Inter-American Affairs, will contribute an additional amount of $3,000,000 in U.S. currency for the purpose of cooperating with the Brazilian Government in expanding the program of public health and sanitation, thus contributing the funds necessary for the execution of the program within a five-year period beginning January 1, 1944.

3. Next Your Excellency proposes that the Brazilian Government, which has already contributed the amount of CR $9.000.000,00 toward the cooperative program, shall contribute an additional amount of CR $100.000,

000,00 to be expended in the said five-year period together with the funds furnished by the United States of America for the same purpose.

4. Your Excellency adds that the nature of the work and the projects to be carried out, as well as the expenses arising therefrom, could be settled. by common agreement of the competent authority of the Brazilian Government, who would be the Minister of Education and Health, and an authorized member of the Institute of Inter-American Affairs acting for the Government of the United States of America.

5. Your Excellency proposes, further, that the funds furnished by the two Governments shall be spent through the agency created within the Ministry of Education and Health, which agency is known as the Special Service of Public Health, and that the additional arrangements for the continuation of the service and execution of the program shall be effected between the competent Brazilian authority and an authorized member of the Institute of Inter-American Affairs acting for the United States of America.

6. You also state that the Government of the United States of America will continue to furnish the technical personnel necessary for collaborating in the execution of the health and sanitation program.

7. You propose, in conclusion, that all the projects carried out and all property acquired in connection with the health and sanitation program shall be part of the Brazilian national property and that no plan shall be carried out which necessitates supplies or materials the procurement of which would prejudice the war effort at any time.

8. In reply, it is my duty to declare to Your Excellency that the Brazilian Government gives its full approval to that general proposal, the details of which, in accordance with what is provided above, will be considered and agreed upon separately by the Ministry of Education and Health and the Institute of Inter-American Affairs.

I avail myself of the opportunity to repeat the assurances of my highest consideration.

His Excellency

JEFFERSON CAFFERY

Ambassador of the United States of America

OSWALDO ARANHA

RICE

Exchange of notes at Rio de Janeiro December 21, 1943, with schedule and appendixes

Entered into force December 21, 1943

Modified by agreements of July 20, 1945,1 and December 23, 1946 2
Extended by agreement of July 20, 1945 1

Expired April 30, 1947

60 Stat. 1612; Treaties and Other International Acts Series 1517

The American Ambassador to the Minister of Foreign Affairs

No. 1968

EXCELLENCY:

EMBASSY OF THE

UNITED STATES OF AMERICA

RIO DE JANEIRO, December 21, 1943

I have the honor to refer to the recent conversations between representatives of the Government of Brazil, the United Kingdom and the United States of America concerning the exportable surplus of rice produced in Brazil. As a result of these conversations I am happy to confirm the understanding of my Government in this connection to be as follows:

1. The Governments of the United States of America and of the United Kingdom undertake to purchase the exportable surplus of rice produced in Brazil from the 1943-1944 and 1944-1945 crops of the types and qualities and under the terms specified in the attached schedule, and the Government of Brazil undertakes to sell or to cause to be sold such surplus, to be made available for shipment from month to month during the twelve months immediately after harvesting, i. e. until April 30, 1945 and April 30, 1946, respectively. In order to avoid deterioration through long storage the Government of Brazil, by means of full utilization of milling facilities, will make every endeavor to make available for shipment as large a proportion as possible of the surplus during the months of May to September in each of the years 1944 and 1945.

2.

The prices stated in the attached schedule shall be applicable for rice of the 1943-1944 crop; prices for the 1944-1945 crop shall be established not later than July 31, 1944, by agreement between the three governments.

1 TIAS 1517, post, p. 996.

2 TIAS 1627, post, p. 1041.

3. The Government of Brazil undertakes to take such action as shall be necessary to limit exports of rice to those destined to the United States of America, the United Kingdom or their respective nominees.

4. In order, however, that Brazil may maintain its normal channels of trade so far as consistent with the present emergency and to assure equitable supplies to the other American Republics and to the French and Dutch Possessions in the Western Hemisphere, it is understood that there is excepted from the foregoing undertakings rice to an amount sufficient to satisfy the essential needs of these countries normally supplied by Brazil which, under the provisions of this Agreement, are to be represented by the following provisional quota for each of the two crops, which shall not be exceeded without prior consultation and agreement with the Governments of the United States of America and the United Kingdom, namely, a total of 10,000 metric tons for Argentina, French Guiana, Bolivia, Peru, Venezuela, Colombia, Paraguay, Uruguay, and the Dutch and French West Indies.

5. The prices for rice exported to these countries shall not exceed the level of prices fixed for sales to the United States of America and the United Kingdom.

6. It is understood that rice shall be made available for export only after provision is made for meeting Brazilian domestic needs, including seed requirements for the purposes of this agreement.

7. Purchases by the Governments of the United States of America and the United Kingdom shall be made on their behalf by such agency or agencies as shall be designated by them from time to time, it being contemplated that such purchases may be implemented by commercial contracts (containing terms consistent with the understanding set forth herein, including delivery terms) entered into with the interested trade associations or regular exporters, their overseas representatives, or otherwise.

8. The British Ministry of Food has been designated to act as such agency until further notice from the two Governments.

9. In view of the undertaking of the Governments of the United States. of America and the United Kingdom, the Government of Brazil undertakes to prevent the imposition of additional or increased export taxes and other taxes and charges on rice or freight, whether Federal, State or otherwise, during the term of this Agreement.

10. The Brazilian Government undertakes to give wide publicity to such provisions of the Agreement as will provide an incentive to maximum production of the qualities of rice specified in the attached schedule, which is made a part of this Agreement as Appendix No. 1.

11. All doubts and difficulties originating during the life of this Agreement, with respect to the United States of America, will be settled between

the Commission to Control the Washington Agreements, and the Government of the United States of America.

I avail myself of this opportunity to renew to Your Excellency the assurances of my highest consideration.

His Excellency

Dr. OSWALDO ARANHA

Minister for Foreign Affairs

Rio de Janeiro

JEFFERSON CAffery

SCHEDULE

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1. Types and Qualities

The qualities named hereunder as "Japan" and "Blue Rose" and "Agulha” shall be understood to be the dry dressed processed product of these qualities containing maximum ten percent "brokens" and maximum one fourth of one percent yellow grains.

2. Prices

a) The price for purchases by the agency of the Ministry of Food for "Japan" shall be £29/14/9 (twenty-nine pounds, fourteen shillings and nine pence payable in Sterling) per long ton of 2,240 pounds, f.o.b. ocean going vessel at Rio Grande.

The price for purchases of "Agulha" by the agency of the Ministry of Food shall be £29/14/9 (twenty-nine pounds, fourteen shillings, and nine pence payable in Sterling) per long ton of 2,240 pounds, f.o.b. ocean going vessel at Brazilian ports. Shipments of "Agulha” rice at such price shall not be inferior to the type sample which has been approved and deposited with representatives of each Government.

A premium of £1/(one pound Sterling) per long ton of 2,240 pounds over the above price for "Japan" or "Agulha” shall be paid for "Blue Rose". The above prices are on the basis of single packing of 100 pounds net in new, strong, jute bags.

b) The price for purchases by an agency of the United States of America for "Japan" shall be $5.35 (five dollars thirty-five cents payable in U.S.A. currency) per 100 pounds f.o.b. ocean going vessel at Rio Grande.

The price for purchases of "Agulha" by an agency of the United States of America shall be $5.35 (five dollars and thirty-five cents payable in United States currency) per 100 pounds, f.o.b. ocean going vessel at Brazilian ports. Shipments of "Agulha" rice at such price shall not be inferior to the type sample which has been approved and deposited with representatives of each Government.

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