to the defense of the hemisphere against armed aggression and to the maintenance of the economy of Brazil and of other American republics. One of the concrete projects with respect to the development of the resources of Brazil which has been discussed between Your Excellency's Government and the Brazilian Economic Mission, which I have the honor to head, is the one relating to the increase of the production of rubber in the Amazon Valley and adjacent regions. Our discussions on this subject have now reached the stage where I believe it is possible to suggest the following points for the said project: 1. The Rubber Reserve Company, in order to cooperate with the Brazilian Government in the development of rubber in the Amazon Valley and adjacent regions, will establish a fund of five million dollars to be used to increase the production of rubber in the said valley and regions. It is to be hoped that the expenditure of this sum will result in the increase of exportation of Brazilian rubber to the United States of America, in an annual volume of not less than 25,000 tons. 2. The Bank of Brazil or other department or agency of the Brazilian Government will become the sole and final purchaser of rubber, both for exportation and for domestic consumption, with the exception of the Rubber Reserve Company which, in accord with the Bank of Brazil, will be able to purchase rubber for its own account. The Brazilian Government after reserving quantities adequate for its domestic needs will establish export quotas with a view to furnishing to the United States of America the greatest quantity of rubber. 3. The Rubber Reserve Company will make a five-year agreement with the Bank of Brazil or other department or agency of the Brazilian Government for the acquisition of rubber produced in Brazil. 4. The Rubber Reserve Company will cooperate with the Instituto Agronômico do Norte in the solution of the scientific problems of the development of rubber production in the Amazon Valley and adjacent regions. 5. The Brazilian Government will cooperate fully with the Government of the United States of America to increase the production of crude and manufactured rubber in Brazil. 6. In compliance with resolution XXX approved in the Consultative Meeting of Ministers of Foreign Affairs of the American Republics held at Rio de Janeiro, the Government of the United States of America will furnish the services of the Division of Health and Sanitation established by the Office of the Coordinator of InterAmerican Affairs for the development works of the Amazon Valley and adjacent regions, with the objective of carrying out there a program of improvement of sanitary conditions in collaboration with official agencies of other American republics. In the name of the Brazilian Government and in accordance with the understandings which the Brazilian Economic Mission reached with representatives of the Government of the United States of America, I have the honor to request Your Excellency to be good enough to give consideration to the above-mentioned proposals. I avail myself of the opportunity to present to Your Excellency the assurances of my highest consideration. A. DE SZA COSTA His Excellency SUMNER WELLES, Acting Secretary of State of the United States of America. The Acting Secretary of State to the Brazilian Minister of Finance DEPARTMENT OF STATE WASHINGTON EXCELLENCY: I acknowledge the receipt of your note of March 3, 1942 outlining a program for the development of the rubber of the Amazon Valley and adjacent regions as a project for further economic cooperation between the United States and Brazil in furtherance of Resolution II of the Third Meeting of the Ministers of Foreign Affairs of the American Republics at Rio de Janeiro. I am pleased to inform you that the appropriate agencies of the Government of the United States have considered this proposal and are prepared to undertake this development in accordance with the specific proposals with respect thereto mentioned in your note. I believe that this program will be a substantial step forward in developing mutually advantageous economic relations between our two countries as contemplated by the Resolution adopted at the conference at Rio de Janeiro. Accept, Excellency, the assurances of my most distinguished consideration. His Excellency SUMNER WELLES Acting Secretary of State of the United States of America. Dr. ARTHUR DE SOUZA COSTA, March 14, 1942 [E. A. S. 372] Ante, p. 1318. Agreement between the United States of America and Brazil respecting a The Acting Secretary of State to the Brazilian Minister for Finance MY DEAR MR. MINISTER: WASHINGTON I refer to the notes which we exchanged on March 3, 1942 on rubber development in the Amazon Valley, and specifically to Point 6 of your note concerning the readiness of this Government to lend its good offices through the Health and Sanitation Division of the Office of the Coordinator of Inter-American Affairs in matters pertaining to health and sanitation conditions in the Amazon Valley. I refer also to the agreements reached on that day with respect to other economic projects. The Coordinator of Inter-American Affairs is prepared to send at once to Brazil, on your request, to cooperate with corresponding officials of the Brazilian Government and its health services, such experts as your Government desires in order to collaborate in developing a specific health and sanitation program. The program would be initially designed for the Amazon Basin area for the special purpose of aiding in the stimulation of rubber production, but at the desire of the Government of Brazil could be extended to other areas. For these purposes this Government, through the agency of the Coordinator of Inter-American Affairs, will provide an amount not to exceed $5,000,000 to be expended toward the development of this health and sanitation program. The expenditure of these funds may be applied not only to health and sanitation projects but also, in the discretion of the Government of Brazil, for such medical or sanitation engineering training as the Government of Brazil may wish undertaken by Brazilian specialists. It is understood that the Government of Brazil will furnish such expert personnel, materials, services and funds for local expenditures as it may consider necessary for the efficient development of the program. The group of United States medical and sanitation specialists which the Brazilian Government indicates should be sent by the Office of the Coordinator of Inter-American Affairs shall be under the direction of the chief medical officer of that Office who in turn will be under the supervision of the appropriate officials of the Brazilian Government. Detailed arrangements for the execution of each project shall be discussed and agreed to between the chief medical officer and the officer of the Brazilian Government in the area of the proposed project. The technical advice and expert assistance of United States medical and sanitation specialists will be made available to the appropriate Brazilian authorities at any time that the need for consultation arises. I understand that the Government of Brazil would be particularly interested in including in the program projects aimed at continuing and expanding the measures and services which the health and sanitation agencies of the Government of Brazil have been carrying out with efficiency and success in the areas in question. These measures and services may be included under the following general headings: 1. Malaria control. 2. Yellow fever control. 3. General disease control by hospitals, clinics and public education. 4. Water supply systems. 5. Sewage systems. 6. Garbage and rubbish disposal. All projects completed in accordance with the present arrangement would of course be the property of the Government of Brazil. I am, my dear Dr. Souza Costa, Sincerely yours, His Excellency Dr. ARTHUR DE SOUZA COSTA, Minister for Finance of Brazil. SUMNER WELLES The Brazilian Minister for Finance to the Acting Secretary of State MY DEAR MR. SECRETARY: MARCH 14, 1942 I refer to your letter of today's date in which you propose, on behalf of the Government of the United States, cooperation with the Government of Brazil to carry out the measures of health and sanitation considered desirable in connection with the program for rubber development agreed to in our exchange of notes of March 3, 1942, and in connection with the other economic projects agreed upon on that day. I am happy to confirm that my Government has for many years. been actively pursuing a health and sanitation program as outlined in your letter and that it is pleased to accept this offer of collaboration in order to stimulate the progress of the program which has so important a bearing on the economic possibilities of the areas in question. My Government will be ready to furnish expert personnel, materials, 4X4 services and funds for local expenditures as it may consider necessary for the efficient carrying out of the projects to be agreed upon. You may be assured, furthermore, that when the projects undertaken on a joint cooperative basis have been completed they will, as the sole property of Brazil, be considered and maintained as a permanent part of the national program for health and sanitation. I avail myself of the opportunity to present to Your Excellency the assurance of my highest consideration. The Honorable SUMNER WELLES, Acting Secretary of State of the United States of America. A. DE SZA COSTA |